Case Summary (G.R. No. 145368)
Factual and Procedural Background
Senators Coseteng and Drilon triggered investigations into alleged anomalies in centennial projects in August 1998. The Senate Blue Ribbon Committee issued its final report in February 1999 recommending prosecution of Laurel for graft and corruption. President Estrada’s Administrative Order No. 35 (February 1999) created a citizens’ committee chaired by former Senator Saguisag, whose November 1999 report likewise urged further investigation of Laurel for violating anti-graft statutes. In January 2000, the Ombudsman’s Fact-finding Bureau recommended a formal complaint and preliminary investigation against Laurel for infractions of R.A. 3019. After Laurel’s motions to dismiss and for reconsideration were denied, he filed a petition for certiorari (October 2000). The Evaluation and Preliminary Investigation Bureau found probable cause to indict Laurel (November 2000), prompting him to secure a temporary restraining order from the Supreme Court (September 2001). Oral arguments were heard in November 2001.
Constitutional and Statutory Framework
Under the 1987 Constitution, the Ombudsman “shall act promptly on complaints … against public officials or employees” and “investigate any act or omission of any public official or employee … when such act … appears to be illegal, unjust, improper, or inefficient.” Republic Act No. 6770 (Ombudsman Act of 1989) mirrors these mandates, granting the Ombudsman plenary power to investigate and prosecute public officers for malfeasance, misfeasance, and non-feasance. Republic Act No. 3019 (Anti-Graft and Corrupt Practices Act) defines corrupt practices of public officers and separately defines “public officer” for purposes of that Act as one “receiving compensation, even nominal, from the government.”
Scope of the Ombudsman’s Jurisdiction
Earlier decisions (Uy v. Sandiganbayan) appeared to limit the Ombudsman’s prosecutorial power to cases cognizable by the Sandiganbayan. This interpretation was clarified and reversed: the Ombudsman’s authority is plenary and unqualified, covering any illegal act or omission of public officers or employees, without distinction as to the forum where charges may be lodged. The Special Prosecutor’s powers remain confined to the Sandiganbayan, but the Ombudsman may designate or deputize personnel to assist in investigating and prosecuting cases beyond that tribunal’s jurisdiction.
Nature of the National Centennial Commission and Exposition Corporation
A “public office” is defined as a delegation by law of sovereign functions—legislative, executive, or judicial—endowed upon an individual to be exercised for public benefit. The NCC was created by executive order under the President’s constitutional and statutory powers to implement state policies for the centennial celebrations, including cultural promotion, coordination of government agencies, refurbishment of historic sites, and economic development initiatives. These are quintessential executive functions, as they involve enforcing and administering governmental policies. Expocorp’s role derived from the NCC’s mandate, but even assuming it was a private corporation, Laurel’s authority in Expocorp flowed directly from his public functions.
Classification of Laurel as a Public Officer
Laurel’s chairmanship of the NCC involved exercise of executive powers for public purposes—planning and coordinating nationwide celebrations and socio
...continue readingCase Syllabus (G.R. No. 145368)
Background and Procedural Posture
- On June 13, 1991, President Corazon C. Aquino issued Administrative Order No. 223 creating an ad hoc Committee for the preparation of the 1998 National Centennial Celebration.
- President Fidel V. Ramos reconstituted this body as the National Centennial Commission (NCC) by Executive Order No. 128, naming Vice-President Salvador H. Laurel as Chair.
- The NCC’s existence was “ad hoc” and set to terminate upon completion of all Centennial activities.
- A private corporation, the Philippine Centennial Expo ’98 Corporation (Expocorp), was later formed; Laurel served as incorporator, director, and Chief Executive Officer.
- Alleged anomalies in Centennial projects led to:
- Senator Coseteng’s August 5, 1998 Senate privilege speech and Blue Ribbon Committee investigation.
- President Estrada’s February 24, 1999 Administrative Order No. 35 creating a citizen committee under former Senator Saguisag.
- Senate Blue Ribbon Final Report No. 30 (February 26, 1999) recommending prosecution of Laurel for graft.
- Saguisag Committee Report (November 5, 1999) calling for Ombudsman investigation and possible indictment under RA 3019, RA 6713, and the RPC.
- The Ombudsman’s Fact‐Finding and Intelligence Bureau and Evaluation and Preliminary Investigation Bureau conducted inquiries, recommending formal complaint and preliminary investigation against Laurel for violation of RA 3019 Sec. 3(e).
- Laurel filed motions to dismiss based on alleged lack of Ombudsman jurisdiction; these were denied (June 13 and October 5, 2000).
- On October 25, 2000, Laurel petitioned the Supreme Court for certiorari; a temporary restraining order issued on September 24, 2001, enjoining the Ombudsman from filing information against him.
- The Supreme Court heard oral arguments on November 14, 2001.
Issues Presented
- Does the Ombudsman have jurisdiction over respondent Laurel?
- Is Laurel a “public officer” subject to investigation and prosecution by the Ombudsman under the Constitution, the Ombudsman Act of 1989 (RA 6770), and RA 3019?
- Do Laurel’s roles as NCC Chair and CEO of Expocorp confer public-office status despite “ad hoc” character and lack of compensation?
Executive Orders and Commission Mandate
- A.O. 223 and E.O. 128 charged the Committee/NCC with:
- Nationwide preparation for centennial of the Declaration of Philippine Independence and the Malolos Congress inauguration.
- Within six months, drafting a comprehensive Centennial plan for Presidential approval.
- Coordination of awareness campaigns, program implementation, and public‐private participation.
- Staff support (Presidential Management Staff, National Commission for Culture and the Arts, National Historical Institute).
- Initial funding from the Department of Tourism and the President’s Contingent Fund; future appropriations via the Office of the President.
- The NCC functioned as a rule-making and coordinating entity executing constitutional policy on cultural heritage and national unity.
Creation and Role of Expocorp
- Expocorp’s Articles of Incorporation outlined:
- Primary purpose: develop and manage the Philippine Centennial International Exposition ’98 at Clark Special Economic Zone.
- Secondary purposes: acquire and dispose of property, raise funds, forge joint ventures, and promote private-sector participation.
- Laurel was among nine incorporators and directors, and was elected CEO, receivin