[G.R. No. 122156. February 3, 1997.] MANILA PRINCE HOTEL vs.

GOVERNMENT SERVICE INSURANCE SYSTEM Facts: Respondent GSIS, pursuant to the privatization program of the Philippine Government under Proclamation No. 50, sold through public bidding 30% to 51% of the issued and outstanding shares of Manila Hotel Corporation (MHC). Two bidders participated, Manila Prince Hotel Corporation, a Filipino corporation, and Renong Berhad, a Malaysian corporation. Both companies bought 15, 300,000 shares, only that the latter bought them at a higher price (P44.00/share) than the former (P41.58/share). Renong Berhad won the bid and it will be declared the winner after it had executed the necessary contracts with GSIS/MHC and after requisite approvals from the GSIS/MHC and COP (Committee on Privatization)/ OGCC (Office of the Government Corporate Counsel) are obtained by it. Petitioner wrote a letter to GSIS, matching the selling price of Renong Berhad. Petitioner sent a check worth 33 million pesos as bid security to match the bid of the Malaysian company, but GSIS refused to accept it. Petitioner filed a petition, invoking Sec. 10, second par., Art XII, of the 1987 Constitution which provides that in the grant of rights, privileges, and concessions covering the national economy and patrimony, the State shall give preference to qualified Filipinos. Respondent GSIS contended that said provision is not self-executing, that Manila Hotel does not fall under the term national patrimony, that what is sold are the shares and not the hotel, and that the submission of a matching bid is premature. Issue: Whether or not the matching bid of Manila Prince Hotel Corporation to the bid of Renong Berhad should be accepted. Held: The Court held that the matching bid of Manila Prince Hotel Corporation to the bid of Renong Berhad should be accepted. Sec. 10, second, par., Art XII of the 1987 Constitution is a self-executing provision. The rule is that a self-executing provision does not necessarily exhaust legislative power on the subject, but any legislation must be in harmony with the constitution, further the exercise of constitutional right and make it more available. Also, when the Constitution speaks of national patrimony, it refers not only to the natural resources of the Philippines, but also to the cultural heritage of the Filipinos. Manila Hotel falls under national patrimony since it has been a landmark and the venue of various significant events which have shaped Philippine history. In the case, while Renong Berhad offered the higher bid, it is not yet the winning bidder, because it still has to transact business with GSIS/COP, which is clearly showing that it has to transact business with the State. Respondents are not bound to make the award yet, nor are they under obligation to enter into one with the highest bidder, for in choosing the winner, respondents are mandated to abide by the 1987 Constitution the provisions of which are presumed to be known to all the bidders and other interested parties. It is a basic principle in constitutional law that all laws and contracts must conform with the fundamental law of the land. Those which violate the Constitution lose their reason for being. Therefore, the matching bid of Manila Prince Hotel Corporation should be accepted.