Title
Baluyot vs. Holganza
Case
G.R. No. 136374
Decision Date
Feb 9, 2000
PNRC administrator accused of malversation; Ombudsman asserts jurisdiction, ruling PNRC as a government-owned corporation under its charter.

Case Summary (G.R. No. L-33101)

Background of the Case

In March 1977, a financial audit conducted by auditors from PNRC headquarters revealed a cash shortage amounting to P154,350.13 within the Bohol chapter's funds, leading to Baluyot being held accountable. Years later, on January 8, 1998, Holganza filed an affidavit-complaint against Baluyot with the Office of the Ombudsman, accusing her of malversation in accordance with Article 217 of the Revised Penal Code. Simultaneously, an administrative complaint for dishonesty was also initiated against her.

Jurisdictional Challenges

On February 6, 1998, the Ombudsman issued an order requiring Baluyot to submit her counter-affidavit within ten days. Baluyot contested the Ombudsman's jurisdiction over the case, asserting that the PNRC is a private voluntary organization rather than a government-owned or controlled corporation. Her arguments included the lack of government funding, the source of salary payments for personnel, and absence of oversight by the Commission on Audit. Baluyot also cited that disciplinary power over PNRC employees rests exclusively with its Secretary General, as outlined in PNRC’s by-laws.

Precedent Case Consideration

The court referenced a previous case, Camporedondo v. National Labor Relations Commission, which dealt with similar jurisdictional issues regarding the PNRC's status. In that decision, it was concluded that the PNRC is a government-owned and controlled corporation as it was created via special charter to perform public functions. The ruling underscored that the mere amendment of its charter to provide for specific privileges did not transmute its nature from a public to a private entity.

Court's Decision and Rationale

After reviewing the arguments, the court dismissed Baluyot’s petition, affirming the Ombudsman's jurisdiction based on Republic Act No. 6770, known as “The Ombudsman Act of 1989.” The law empowers the Ombudsman to address complaints against government officials and employees, including those of government-owned or controlled corporations. The court's decision clarified that

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