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BACANI VS. NACOCO 100 Phil. 468 (1956) ISSUE: Whether or not NACOCO is a government entity.

FACTS: Plaintiffs herein are court stenographers assigned in Branch VI of the Court of First Instance of anila. !uring the pendency of Civil Case No. ""#$ of said court% entitled Francisco &ycip vs. National Coconut Corporation% Assistant Corporate Counsel Federico Ali'pala% counsel for !efendant% re(uested said stenographers for copies of the transcript of the stenographic notes ta'en )y them during the hearing. Plaintiffs complied *ith the re(uest )y delivering to Counsel Ali'pala the needed transcript containing +,- pages and thereafter su)mitted to him their )ills for the payment of their fees. .he National Coconut Corporation paid the amount of P/0- to 1eopoldo .. Bacani and P,/2 to ateo A. atoto for said transcript at the rate of P, per page. 3o*ever% the Auditor 4eneral disallo*ed the payment of these fees and ordered that it shall )e reim)ursed for the reason that NACOCO% )eing a pu)lic corporation% is e5empted from the fees. For reim)ursement to ta'e place% it *as further ordered that the amount of P"/ per payday )e deducted from the salary of Bacani and P,2 from the salary of atoto. 3ence% this petition. RULING: NO. .here are functions *hich our government is re(uired to e5ercise to promote its o)6ectives as e5pressed in our Constitution and *hich are e5ercised )y it as an attri)ute of sovereignty 7 !"#$i$%&"$8% and those *hich it may e5ercise to promote merely the *elfare% progress and prosperity of the people 7'i"i#$()"$8. .o this latter class )elongs the organi9ation of those corporations o*ned or controlled )y the government to promote certain aspects of the economic life of our people such as the National Coconut Corporation. .hese are *hat *e call government:o*ned or controlled corporations *hich may ta'e on the form of a private enterprise or one organi9ed *ith po*ers and formal characteristics of private corporations under the Corporation 1a*. .hey do not ac(uire the status of a government entity for the simple reason that they do not come under the classification of municipal or pu)lic corporation. NACOCO is a 4OCC. .hus% not part of the government. President Wilson enumerates the follo*s; !"#$i$%&"$ *%" $i!"# as

0. .he administration of 6ustice in civil cases. +. .he determination of the political duties% privileges% and relations of citi9ens. <. !ealings of the state *ith foreign po*ers; the preservation of the state from e5ternal danger or encroachment and the advancement of its international interests.=> .he most important of the 'i"i#$()"$ *%" $i!"# are; pu)lic *or's% pu)lic education% pu)lic charity% health and safety regulations% and regulations of trade and industry. .he principles deter mining *hether or not a government shall e5ercise certain of these optional functions are; (1) that a government should do for the pu)lic *elfare those things *hich private capital *ould not naturally underta'e and (+) that a government should do these things *hich )y its very nature it is )etter e(uipped to administer for the pu)lic *elfare than is any private individual or group of individuals.

,. .he 'eeping of order and providing for the protection of persons and property from violence and ro))ery. ". .he fi5ing of the legal relations )et*een man and *ife and )et*een parents and children. $. .he regulation of the holding% transmission% and interchange of property% and the determination of its lia)ilities for de)t or for crime. -. .he determination of contract rights )et*een individuals. /. .he definition and punishment of crime.

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