Laurel v. Desierto
REITERATIONFacts
The Antecedents: President Corazon C. Aquino created a Committee for the National Centennial Celebration in 1998 via Administrative Order No. 223. President Fidel V. Ramos reconstituted this into the National Centennial Commission (NCC) through Executive Order No. 128, appointing Vice-President Salvador H. Laurel as Chair. The NCC was tasked with nationwide preparations for the Centennial Celebrations and to prepare a Comprehensive Plan. Subsequently, the Philippine Centennial Expo ’98 Corporation (Expocorp) was created, with petitioner Laurel as an incorporator and elected CEO. Senator Ana Dominique Coseteng delivered a privilege speech alleging anomalies in the Centennial Exposition Project, leading to investigations by the Senate Blue Ribbon Committee and a citizens' committee chaired by former Senator Rene A.V. Saguisag. Both committees recommended the prosecution of petitioner Laurel for alleged violations of anti-graft laws. The Fact-finding and Intelligence Bureau of the Office of the Ombudsman issued an Evaluation Report recommending a formal complaint against Laurel and others. Petitioner was directed to submit a counter-affidavit, but instead filed a Motion to Dismiss questioning the Ombudsman's jurisdiction. Procedural History: The Ombudsman denied petitioner's motion to dismiss and subsequent motion for reconsideration. Petitioner then filed a petition for certiorari with the Supreme Court. The Evaluation and Preliminary Investigation Bureau issued a resolution finding probable cause to indict Laurel and Teodoro Q. Peña for violating Section 3(e) of R.A. No. 3019, though the charge against Peña was later dismissed. The Supreme Court issued a temporary restraining order enjoining the filing of an information against petitioner. The Petition: Petitioner assails the Ombudsman's jurisdiction, arguing that he was not a public officer because Expocorp was a private corporation, the NCC was not a public office, and he did not hold a position classified as Grade 27 or higher under the Sandiganbayan's jurisdiction. He also invoked the ruling in Uy v. Sandiganbayan limiting the Ombudsman's jurisdiction to cases cognizable by the Sandiganbayan.
Issue(s)
Whether the Ombudsman has jurisdiction over the petitioner. Whether petitioner Salvador H. Laurel, as Chair of the National Centennial Commission (NCC) and Expocorp, is a public officer. Whether the National Centennial Commission (NCC) constitutes a public office. Whether Expocorp is a private or public corporation. Whether the petitioner's alleged lack of compensation disqualifies him as a public officer under R.A. No. 3019.
Ruling
The petition is DISMISSED. The preliminary injunction issued is LIFTED.
Ratio Decidendi
On the Ombudsman's Jurisdiction: The Court clarified that the Uy v. Sandiganbayan ruling limiting the Ombudsman's jurisdiction was short-lived and subsequently set aside. The power to investigate and prosecute granted to the Ombudsman by R.A. No. 6770 is plenary and unqualified, pertaining to any act or omission of any public officer or employee that appears to be illegal, unjust, improper, or inefficient. The law does not distinguish between cases cognizable by the Sandiganbayan and those cognizable by regular courts. The Ombudsman's mandate is broad, encompassing all kinds of malfeasance, misfeasance, and non-feasance committed by public officers and employees during their tenure. Therefore, the Ombudsman has jurisdiction over the petitioner if he is found to be a public officer. On Petitioner's Status as a Public Officer: The Court held that the National Centennial Commission (NCC) performs executive functions, which involve the implementation of policies set forth by law. The NCC was created by Executive Order No. 128 to execute policies and objectives related to the Centennial Celebrations, including the formulation and implementation of programs and projects, acting as a coordinator, clearing house, and prioritizing refurbishment of historical sites. These functions are considered sovereign functions of government, as they are performed for the benefit of the public and are created by law, not by contract. The NCC's mandate to foster nationhood, showcase heritage, and strengthen Filipino identity, as well as its role in economic development by catalyzing recovery in Central Luzon and generating employment, further solidify its public character. Thus, the NCC is a public office, and petitioner, as its Chair, is a public officer. On the Nature of the NCC: The NCC was established to execute specific state policies and objectives concerning the commemoration of the Philippine Centennial. Its functions, such as implementing programs and projects related to culture, arts, literature, and media as vehicles for history and national unity, coordinating centennial activities, and prioritizing historical site refurbishment, are inherently governmental. The creation of the NCC by Executive Order, which implements constitutional and statutory powers, further indicates its public nature. The Court distinguished the NCC's role from a mere town fiesta, emphasizing that the Centennial Celebrations were a matter of national significance, aimed at fostering nationhood and patriotism, thus involving a governmental policy of the state. On Expocorp's Status: Even assuming Expocorp was a private corporation, the Court stated that petitioner's position as its CEO arose from his Chairmanship of the NCC. Therefore, his acts or omissions as CEO of Expocorp must be viewed in light of his powers and functions as NCC Chair, who was already determined to be a public officer. On Compensation: The Court clarified that the definition of a "public officer" under R.A. No. 3019 is specific to that Act and does not limit the Ombudsman's jurisdiction, which is defined by the Constitution and the Ombudsman Act of 1989. Furthermore, the question of whether petitioner is a public officer under R.A. No. 3019, particularly concerning compensation, involves the appreciation of evidence and interpretation of law, which are matters best resolved at trial. The Court noted that R.A. No. 6713 defines "public officials" to include those who do not receive compensation. The Court also pointed out that the term "compensation" can have various meanings and that the records did not definitively show whether petitioner received any form of compensation, allowance, or honorarium, making this an issue for trial.
Main Doctrine
The National Centennial Commission (NCC) performs executive functions and is therefore a public office, making its Chair, Salvador H. Laurel, a public officer subject to the Ombudsman's jurisdiction, irrespective of whether he received compensation or if the NCC was an ad-hoc body. The definition of 'public officer' under R.A. No. 3019 is specific to that Act and does not limit the Ombudsman's constitutional and statutory jurisdiction.