SALVADOR H. LAUREL vs. HON. ANIANO A. DESIERTOG.R. No. 145368, April 12, 2002KAPUNAN, J .

: THE FACTS: President Aquino issued Administrative Order No. 223 "constituting a Committee for the preparation of the National Centennial Celebration in 1998." The Committee was mandated "to take charge of thenationwide preparations for the National Celebration of the Philippine Centennial of the Declaration of Philippine Independence and the Inauguration of the Malolos Congress.President Ramos issued Executive Order No. 128, "reconstituting the Committee for the preparation of the National Centennial Celebrations in 1988." It renamed the Committee as the "National CentennialCommission." Appointed Vice-President Laurel as chair. Its duty is to "take charge of the nationwide preparations for the National Celebration of the Philippine Centennial of the Declaration of PhilippineIndependence and the Inauguration of the Malolos Congress and its existence shall terminate upon thecompletion of all activities related to the Centennial Celebrations.A corporation named the Philippine Centennial Expo 98 Corporation (Expocorp) was created. Laurelwas among the nine (9) Expocorp incorporators and was elected Expocorp Chief Executive Officer.Senator Coseteng delivered a privilege speech denouncing alleged anomalies in the construction andoperation of the Centennial Exposition Project at the Clark Special Economic Zone. The privilegespeech was referred to the Blue Ribbon Committee for investigation.President Estrada issued Administrative Order No. 35, creating an ad hoc and independent citizenscommittee to investigate all the facts and circumstances surrounding the Philippine centennial projects.Senator Saguisag was appointed to chair the Committee.Blue Ribbon Committee filed its report. recommending the prosecution by the Ombudsman/DOJ of Laurel, chair of NCC and of EXPOCORP for violating the rules on public bidding, relative to theaward of centennial contracts to AK (Asia Construction & Development Corp.); for exhibiting manifest bias in the issuance of the NTP (Notice to Proceed) to AK to construct the FR (Freedom Ring) even inthe absence of a valid contract that has caused material injury to government and for participating inthe scheme to preclude audit by COA of the funds infused by the government for the implementation of the said contracts all in violation of the anti-graft law.Th Saguisag Committee issued its own report. It recommended the further investigation by theOmbudsman, and indictment, in proper cases of, Laurel for violations of Section 3(e) of R.A. No. 3019,Section 4(a) in relation to Section 11 of R.A. No. 6713, and Article 217 of the Revised Penal Code.The Bureau of the Office of the Ombudsman. issued its Evaluation Report, recommending:1. that a formal complaint be filed and preliminary investigation be conducted before theEvaluation and Preliminary Investigation Bureau (EPIB), Office of the Ombudsman againstformer NCC and EXPOCORP chair Salvador H. Laurel, former EXPOCORP President TeodoroQ. Pea and AK President Edgardo H. Angeles for violation of Sec. 3(e) and (g) of R.A. No.3019, as amended in relation to PD 1594 and COA Rules and Regulations;2. That the Fact Finding and Intelligence Bureau of this Office, act as the nominal complainant.Apostol, OIC-Director of the EPIB, directed Laurel to submit his counter-affidavit and those of hiswitnesses.Laurel filed with the Office of the Ombudsman a Motion to Dismiss questioning the jurisdiction of said office. Ombudsman denied motion to dismiss. EPIB found probable cause to indictrespondents LAUREL and PEA before the Sandiganbayan for conspiring to violate Section 3(e) of Republic Act No. 3019, in relation to Republic Act No. 1594. Desierto, in his capacity as Ombudsman,approved the resolution with respect to Laurel but dismissed the charge against Pea. Laurel moved for a reconsideration but the motion was denied. Hence this present petition for certiorari.

THE ISSUE: Whether of not Ombudsman has jurisdiction over the case? Whether EXPOCORP is a private corporation and not a gocc? Whether NCC was not a public office? Whether or not Laurel is not a public officer? THE RULING: The Ombudsman has the power to investigate any malfeasance, misfeasance and nonfeasance by a public officer or employee of the government, or of any subdivision, agency or instrumentalitythereof, including government-owned or controlled corporations. Neither the Constitution nor theOmbudsman Act of 1989, however, defines who public officers are. A definition of public officers citedin jurisprudence 13 is that provided by Mechem, a recognized authority on the subject: a public office isthe right, authority and duty, created and conferred by law, by which, for a given period, either fixed bylaw or enduring at the pleasure of the creating power, an individual is invested with some portion of thesovereign functions of the government, to be exercised by him for the benefit of the public. Theindividual so invested is a public officer.The characteristics of a public office, according to Mechem, include the delegation of sovereignfunctions, its creation by law and not by contract, an oath, salary, continuance of the position, scope of duties, and the designation of the position as an office.We hold that the NCC performs executive functions. The executive power "is generally definedas the power to enforce and administer the laws. It is the power of carrying the laws into practicaloperation and enforcing their due observance." The executive function, therefore, concerns theimplementation of the policies as set forth by law. The NCC was precisely created to ensure a more coordinated and synchronized celebration of the Philippine Centennial and wider participation form the government and nongovernment or privateorganizatiuons and to rationalize the relevance of historical links with other countries and to carrythem into effect. E.O. No. 128, reconstituting the Committee for the National Centennial Celebrationsin 1998, cited the "need to strengthen the said Committee to ensure a more co ordinated andsynchronized celebrations of the Philippine Centennial and wider participation from the governmentand non-government or private organizations." It also referred to the "need to rationalize the relevanceof historical links with other countries."There can hardly be any dispute that the promotion of industrialization and full employment is afundamental state policy. Clearly, the NCC performs sovereign functions. It is, therefore, a publicoffice, and petitioner, as its Chair, is a public officer.That petitioner allegedly did not receive any compensation during his tenure is of littleconsequence. A salary is a usual but not a necessary criterion for determining the nature of the position.It is not conclusive. The salary is a mere incident and forms no part of the office. Where a salary or feesis annexed, the office is provided for it is a naked or honorary office, and is supposed to be acceptedmerely for the public good. Hence, the office of petitioner as NCC Chair may be characterized as anhonorary office, as opposed to a lucrative office or an office of profit, i.e., one to which salary,compensation or fees are attached. But it is a public office, nonetheless.The petition is DISMISSED.

Laurel vs. Desierto [GR 145368, April 12, 2002] Posted by Pius Morados on November 7, 2011

(Public Officers, Chair of National Centennial Commission) Facts: Petitioner is the Chair of the National Centennial Commission (NCC), tasked to take charge of the nationwide preparations for the National Celebration of the Philippine Centennial of the Declaration of Philippine Independence and the Inauguration of the Malolos Congress. Subsequently, a corporation named the Philippine Centennial Expo 98 Corporation (Expocorp) was created and Petitioner was elected Expocorp Chief Executive Officer. An investigation of the anomalies in the construction and operation of the centennial projects was effected and the Senate Blue Ribbon Committee filed with the Secretary of the Senate its Committee Final Report recommending for the prosecution by the Ombudsman/DOJ of Dr. Salvador Laurel, chair of NCC and of EXPOCORP for violating the rules on public bidding, in violation of the anti-graft law. The Evaluation and Preliminary Investigation Bureau issued a resolution finding probable cause to indict petitioner before the Sandiganbayan for conspiring to violate Section 3(e) of Republic Act No. 3019, in relation to Republic Act No. 1594. Petitioner assails the jurisdiction of the Ombudsman on the ground that he is not a public officer because he, both as chairman of the NCC and of the EXPOCORP was not a public officer. Issue: WON petitioner, as Chair of the NCC, was not a public officer. Held: No. A public office is the right, authority and duty, created and conferred by law, by which, for a given period, either fixed by law or enduring at the pleasure of the creating power, an individual is invested with some portion of the sovereign functions of the government, to be exercised by him for the benefit of the public. The individual so invested is a public officer (Mechem).

The most important characteristic which distinguishes an office from an employment or contract is that the creation and conferring of an office involves a delegation to the individual of some of the sovereign functions of government, to be exercised by him for the benefit of the public; that some portion of the sovereignty of the country, either legislative, executive or judicial, attaches, for the time being, to be exercised for the public benefit. Unless the powers conferred are of this nature, the individual is not a public officer. Certainly, the law did not delegate upon the NCC functions that can be described as legislative or judicial. We hold that the NCC performs executive functions. The executive power is generally defined as the power to enforce and administer the laws. It is the power of carrying the laws into practical operation and enforcing their due observance. The executive function, therefore, concerns the implementation of the policies as set forth by law. The Constitution provides in Article XIV (Education, Science and Technology, Arts, Culture, and Sports) thereof: Sec. 15. Arts and letters shall enjoy the patronage of the State. The State shall conserve, promote, and popularize the nations historical and cultural heritage and resources, as well as artistic creations. In its preamble, A.O. No. 223 states the purposes for the creation of the Committee for the National Centennial Celebrations in 1998: Whereas, the birth of the Republic of the Philippines is to be celebrated in 1998, and the centennial presents an important vehicle for fostering nationhood and a strong sense of Filipino identity; Whereas, the centennial can effectively showcase Filipino heritage and thereby strengthen Filipino values; Whereas, the success of the Centennial Celebrations may be insured only through long-range planning and continuous developmental programming; Whereas, the active participation of the private sector in all areas of special expertise and capability, particularly in communication and information dissemination, is necessary for long-range planning and continuous developmental programming; Whereas, there is a need to create a body which shall initiate and undertake the primary task of harnessing the multi-sectoral components from the business, cultural, and business sectors to serve as effective instruments from the launching and overseeing of this long-term project; Hence, the NCC performs sovereign functions. It is, therefore, a public office, and petitioner, as its Chair, is a public officer.