G.R. No. 72553 - Quimpo vs. Tanodbayan

Felicito R. Quimpo, the petitioner, filed a Complaint for Certiorari with the Tanodbayan on July 17, 1984.
The complaint targeted private respondents, Greg Dimaano and Danny F. Remo, alleging violations of Republic Act No. 3091 (the Anti-Graft and Corrupt Practices Act).
The case arose from a dispute involving alleged malpractices in the handling of contracts and payments.

Petitioner asserted that Admiral Adjusters and Surveyors, Inc. (AASI), of which he was president, was engaged by PETROPHIL Corporation to render survey services.
The contract was initially for one year (March 1, 1982 to February 28, 1983) and subsequently renewed for another year (March 1, 1983 to February 2, 1984).
It was alleged that, as of October 1983, private respondents—acting in their capacities as manager and analyst—illegitimately withheld fees due to AASI, amounting to P147,300.00, despite AASI’s explanations regarding losses from leaking valves.
Further, the petition alleged that the private respondents favored a competitor, Greater Marine Cargo Surveyors, purportedly to secure a bidding advantage in January 1984.

Private respondents moved to dismiss the complaint on the basis of lack of jurisdiction, arguing that PETROPHIL’s status excluded it from Tanodbayan oversight.
The original Tanodbayan Decision, issued on March 15, 1985, disowned its jurisdiction, basing its position on the premise that government-owned or controlled corporations, as created under the Corporation Law, were not covered.
This decision relied on Opinion No. 62, Series of 1976, by then Secretary of Justice Vicente Abad Santos, holding that the term “government-owned or controlled corporations” in the 1973 Constitution applied only to those created by special law.

Although PETROPHIL was originally established as a private corporation under the Corporation Law under the name Standard Vacuum Oil Company (STANVAC), its status changed over time.
PETROPHIL was acquired by Esso Philippines and subsequently became part of the Philippine National Oil Corporation (PNOC) after a series of acquisitions.
Following its acquisition by PNOC, PETROPHIL was reoriented to perform functions related to government programs, specifically servicing the nation’s oil distribution and supply objectives.

Section 5, Article XIII of the 1973 Constitution mandates the creation of the Sandiganbayan with jurisdiction over graft and corrupt practices involving public officers and employees, including those in government-owned or controlled corporations.
Section 6, Article XIII similarly provides for the Tanodbayan to investigate complaints against public officers, extending its jurisdiction to employees of government-owned or controlled corporations.
Presidential Decree No. 1630 (Sections 10(a) and (f)) further empowers the Tanodbayan to investigate and prosecute cases involving graft and corrupt practices within government-related agencies.
The Anti-Graft and Corrupt Practices Act defines “Government” to include government-owned and controlled corporations, thereby reinforcing their inclusion under anti-corruption measures.

Whether PETROPHIL, despite its origin as a private corporation, qualifies as a government-owned or controlled corporation under the relevant constitutional, statutory, and jurisprudential provisions.

Whether the Tanodbayan has jurisdiction over a complaint involving employees of PETROPHIL for acts constituting graft and corrupt practices, considering the corporate status of PETROPHIL.

Whether PETROPHIL’s acquisition by the Philippine National Oil Corporation (PNOC) effectively transformed its nature and function to fall within the ambit of government-owned or controlled corporations.

Whether PETROPHIL’s retention of certain private attributes, such as its employment affiliation with the Social Security System (as opposed to the Government Service Insurance System) and coverage under the Labor Code, affects its reclassification and subsequent jurisdiction under the Anti-Graft and Corrupt Practices Act.