Manilaprincehotel Vs Gsisss
Manilaprincehotel Vs Gsisss
Manilaprincehotel Vs Gsisss
*
G.R. No. 122156. February 3, 1997.
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* EN BANC.
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Same; Same; Same; Bids and Bidding; 1 submit that the right
of preference of a Filipino bidder arises only if it tied the bid of the
foreign bidder.—To date, Congress has not enacted a law defining
the degree of the preferential right. Consequently, we must turn
to the rules and regulations of respondents Committee on
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BELLOSILLO, J.:
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12 16 Am Jur. 2d 281.
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13 Id, p. 282.
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14 SeeNote 12.
15 Cruz, Isagani A., Constitutional Law, 1993 ed., pp. 8–10.
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23 24
building, the25
promotion of social justice, and 26the values
of education. Tolentino v. Secretary of Finance refers to
constitutional
27
provisions on social justice and human
rights and on
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civic efficiency and the development of moral character shall receive the
support of the government
23 Sec. 13, Art. II, provides that [t]he State recognizes the vital role of
the youth in nation-building and shall promote and protect their physical,
moral, spiritual, intellectual, and social well-being. It shall inculcate in the
youth patriotism and nationalism, and encourage their involvement in
public and civic affairs.
24 Sec. 1, Art. XIII (Social Justice and Human Rights), provides that
[t]he Congress shall give highest priority to the enactment of measures that
protect and enhance the right of all the people to human dignity, reduce
social, economic and political inequalities, and remove cultural inequities
by equitably diffusing wealth and political power for the common good.
To this end, the State shall regulate the acquisition, ownership, use, and
disposition of property and its increments. Sec. 2, Art. XIII, provides that
[t]he promotion of social justice shall include the commitment to create
economic opportunities based on freedom of initiative and self-reliance.
25 Sec. 2, Art. XIV (Education, Science and Technology, Arts, Culture,
and Sports), provides that [t]he State shall:
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28
education. Lastly, Kilosbayan, Inc. v. Morato29 30 cites
provisions on the promotion
31
of general welfare, the
sanctity 32of family life, the vital role of the youth in nation-
building and33 the promotion of total human liberation and
development. A reading of these provisions indeed clearly
shows that they are not judicially enforceable
constitutional rights but merely guidelines for legislation.
The very terms of the provisions manifest that they are
only principles upon which legislations must be based. Res
ipsa loquitur.
On the other hand, Sec. 10, second par., Art. XII of the
1987 Constitution is a mandatory, positive command which
is complete in itself and which needs no further guidelines
or implementing laws or rules for its enforcement. From its
very words the provision does not require any legislation to
put it in operation. lt is per se judicially enforceable. When
our Constitution mandates that [i]n the grant of rights,
privileges, and concessions covering national economy and
patrimony, the State shall give preference to qualified
Filipinos, it means just that—qualified Filipinos shall be
preferred. And when our Constitution declares that a right
exists in certain specified circumstances an action may be
maintained to enforce such right notwithstanding the
absence of any legislation on the
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28 Sec. 1, Art. XIV, provides that [t]he State shall protect and promote
the right of all citizens to quality education at all levels of education and
shall take appropriate steps to make such education accessible to all.
29 G.R. No. 118910,17 July 1995.
30 See. 5, Art. II (Declaration of Principles and State Policies), provides
that [t]he maintenance of peace and order, the protection of life, liberty,
and property, and the promotion of the general welfare are essential for the
enjoyment by all the people of the blessings of democracy.
31 See Note 23.
32 See Note 24.
33 Sec. 17, Art. II, provides that [t]he State shall give priority to
education, science and technology, arts, culture, and sports to foster
patriotism and nationalism, accelerate social progress, and promote total
human liberation and development.
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The history of the hotel has been chronicled in the book The
Manila Hotel: The Heart and Memory of a City.37 During
World War II the hotel was converted by the Japanese
Military Administration into a military headquarters,
When the American forces returned to recapture Manila
the hotel was selected by the Japanese together with
Intramuros as the two (2) places for their final stand.
Thereafter, in the 1950’s and 1960’s, the hotel became the
center of political activities, playing host to almost every
political convention. In 1970 the hotel reopened after a
renovation and reaped numerous in-
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41 Id., p. 616.
42 Id., p. p. 606.
43 Nolledo, J.N., The New Constitution of the Philippines Annotated,
1990 ed., pp. 930–931.
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47 See Note 8.
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CONCURRING OPINION
PADILLA, J.:
“x x x
In the grant of rights, privileges, and concessions covering the
national economy and1 patrimony, the State shall give preference
to qualified Filipinos."
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SEPARATE OPINION
VITUG, J.:
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454
SEPARATE OPINION
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3
price per share” before it is awarded the shares of stocks.
That, to me, is what “preference to qualified Filipinos”
means in the context of this case—by favoring Filipinos
whenever they are at a disadvantage vis-à-vis foreigners. 4
This was the meaning given in Co Chiong v. Cuaderno
to a 1947 statute giving “preference
5
to Filipino citizens in
the lease of public market stalls." This Court upheld the
cancellation of existing leases covering market stalls
occupied by persons who were not Filipinos and the award
thereafter of the stalls to qualified Filipino vendors as
ordered by the Department of 6 Finance. Similarly, in Vda.
de Salgado v. De la Fuente, this Court sustained the
validity of a municipal ordinance passed pursuant to the
statute (R.A. No. 37), terminating existing leases of public
market stalls and granting preference to Filipino citizens
in the issuance of new licenses for the occupancy of the
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3Id.
456
9
ployment, contracting and licensing. Indeed, in vital areas
of our national economy, there are situations in which the
only way to place Filipinos in control of the 10
national
economy as contemplated in the Constitution is to give
them preferential treatment where they can at least stand
on equal footing with aliens.
There need be no fear that thus preferring Filipinos
would either invite foreign retaliation or deprive the
country of the benefit of foreign capital or know-how. We
are dealing here not with common trades or common means
11
of livelihood which are open to aliens in our midst, but
with the sale of government property, which is like the
grant of government largess or benefits. In the words of
Art. XII, §10, we are dealing here with “rights, privileges
and concessions covering the national economy” and
therefore no one should begrudge us if we give preferential
treatment to our citizens. That at any rate is the command
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457
SEPARATE OPINION
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458
xxx
“In the grant of rights, privileges, and concessions covering the
national economy and patrimony, the State shall give preference
to qualified Filipinos.
The State shall regulate and exercise authority over foreign
investments within its national goals and priorities.”
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xxx
“MR. NOLLEDO. The Amendment will read: “IN THE GRANT
OF RIGHTS, PRIVILEGES AND CONCESSIONS COVERING
THE NATIONAL ECONOMY AND PATRIMONY, THE STATE
SHALL GIVE PREFERENCE TO QUALIFIED FILIPINOS." And
the word “Filipinos” here, as intended by the proponents, will
include not only individual Filipinos but also Filipino-Controlled
entities fully controlled by Filipinos (Vol. III, Records of the
Constitutional Commission, p. 608).
MR. MONSOD, We also wanted to add, as Commissioner
Villegas said, this committee and this body already approved
what is known as the Filipino First policy which was suggested by
Commissioner de Castro. So that it is now in our Constitution
(Vol. IV, Records of the Constitutional Commission, p. 225).
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460
DISSENTING OPINION
PUNO, J.:
461
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The party that accomplishes the steps set forth below will be declared the
Winning Bidder/Strategic Partner and will be awarded the Block of
Shares:
First—Pass the prequalification process;
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Second—Submit the highest bid on a price per share basis for the Block of
Shares;
Third—Negotiate and execute the necessary contracts with
GSIS/MHC not later than October 23, 1995.
xxx
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D. PREQUALIFICATION DOCUMENTS
xxx
E. APPLICATION PROCEDURE
463
F. PREQUALIFICATION PROCESS
464
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B. BLOCK OF SHARES
465
D. TRANSFER COSTS
xxx
E. OFFICIAL BID FORM
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F. SUPPORTING DOCUMENTS
2. BID SECURITY
466
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ii. The Bid Security accompanying the bid is for less than the
required amount.
G. SUBMISSION OF BIDS
467
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468
469
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M. GENERAL CONDITIONS
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471
“x x x
In the grant of rights, privileges, and concessions covering the
national economy and patrimony, the State shall give preference to
qualified Filipinos.
xxx
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472
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473
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9 Cooley, supra, at 171; 6 R.C.L. Sec. 53, pp. 57–58; Brice v. McDow,
116 S.C. 324, 108 S.E. 84, 87 [1921]; see also Gonzales, Philippine
Constitutional Law, p. 26 [1969].
10 16 C.J.S., Constitutional Law, Sec. 48, p. 101.
11 Way v. Barney, 116 Minn. 285, 133 N.W. 801, 804 38 L.R.A. (N.S.)
648, Ann. Cas. 1913 A, 719 [1911]; Brice v. McDow, supra, at 87; Morgan
v. Board of Supervisors, 67 Ariz. 133, 192 P. 2d 236, 241 [1948]; Gonzales,
supra.
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476
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477
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31
tavos. As chronicled by Beth Day Romulo, the hotel first
opened on July 4, 1912 as a first-class hotel built by the
American Insular Government for Americans living in, or
passing through, Manila while travelling to the Orient
Indigenous materials and Filipino craftsmanship were
utilized in its construction. For sometime, it was
exclusively used by American and Caucasian travelers and
served as the “official guesthouse” of the American Insular
Government for visiting foreign dignitaries. Filipinos began
coming to the Hotel as guests during the Commonwealth
period. When the Japanese occupied Manila, it served as
military headquarters and lodging for the highest-ranking
officers from Tokyo. It was at the Hotel and the Intramuros
that the Japanese made their last stand during the
Liberation of Manila. After the war, the Hotel again served
foreign guests and Filipinos alike. Presidents and kings,
premiers and potentates, as well as glamorous
international film and sports celebrities were housed in the
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479
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34
which cannot be disposed of indifferently. They are to be
used to finance the retirement, disability and life insurance
benefits of the employees and 35the administrative and
operational expenses of the GSIS. Excess funds, however,
are are allowed to be invested in business 36
and other
ventures for the benefit of the employees. It is thus
contended that the GSIS' investment in the Manila Hotel
Corporation is a simple business venture, hence, an act
beyond the contemplation of Section 10, paragraph 2 of
Article XII of the Constitution.
The submission is unimpressive, The GSIS is not a pure
private corporation. It is essentially a public corporation
created by Congress and granted an original charter to
serve a public purpose. It is subject
37
to the jurisdictions of
the Civil
38
Service Commission and the Commission on
Audit. As a state-owned and controlled corporation, it is
skin-bound to adhere to the policies spelled out in the
Constitution especially those designed to promote the
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481
“x x x
THE PRESIDENT. What is the suggestion of Commissioner
Rodrigo? Is it to remove the word “QUALIFIED?"
MR. RODRIGO. No, no, but say definitely “TO QUALIFIED
FILIPINOS" as against whom? As against aliens over aliens?
MR. NOLLEDO. Madam President, I think that is understood
We use the word “QUALIFIED" because the existing laws or the
prospective laws will always lay down conditions under which
business may be done. For example, qualifications on capital,
qualifications on the setting up of other financial structures, et
cetera.
MR. RODRIGO. It is just a matter of style.
MR. NOLLEDO. Yes.
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483
the need for alien assistance, the greater the degree of the
right of preference can be given to Filipinos and vice versa.
Again, it should be stressed that the right and the duty
to determine the degree of this privilege at any given time
is addressed to the entire State. While under our
constitutional scheme, the right primarily belongs to
Congress as the lawmaking department of our government,
other branches of government, and all their agencies and
instrumentalities, share the power to enforce this state
policy. Within the limits of their authority, they can act or
promulgate rules and regulations defining the degree of
this right of preference in cases where they have to make
grants involving the national economy and judicial duty.
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PANGANIBAN, J.:
——o0o——
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