GR 147706; (February, 2005) (Digest)
G.R. No. 147706 February 16, 2005
PEOPLE OF THE PHILIPPINES, petitioner, vs. THE HONORABLE SANDIGANBAYAN (Fifth Division) and EFREN L. ALAS, respondents.
FACTS
Two informations for violation of Section 3(e) of R.A. 3019 (Anti-Graft and Corrupt Practices Act) were filed with the Sandiganbayan against respondent Efren L. Alas. The charges stemmed from alleged anomalous advertising contracts he entered into in his capacity as President and Chief Operating Officer of the Philippine Postal Savings Bank (PPSB). PPSB is a subsidiary of the government-owned Philippine Postal Corporation but was incorporated under the Corporation Code. Alas filed a motion to quash, arguing the Sandiganbayan lacked jurisdiction over him. The Sandiganbayan granted the motion, ruling that PPSB was a private corporation because it was not created by a special law but under the general Corporation Code. Consequently, its officers were not considered public officers subject to the Sandiganbayan’s jurisdiction. The prosecution, through the Office of the Special Prosecutor, filed this petition for certiorari.
ISSUE
Does the Sandiganbayan have jurisdiction over presidents, directors, or managers of government-owned or controlled corporations (GOCCs) that are organized under the Corporation Code for violations of R.A. 3019?
RULING
Yes. The Supreme Court granted the petition and reversed the Sandiganbayan’s resolution. The legal logic is anchored on the definition of a GOCC and the jurisdictional provisions of the law. Section 2(13) of the Administrative Code of 1987 defines a GOCC as any agency organized as a stock or non-stock corporation vested with functions relating to public needs and owned by the government directly or indirectly to the extent of at least fifty-one percent of its capital stock. This definition does not distinguish between corporations created by special charter and those incorporated under the general Corporation Code. PPSB, being a subsidiary of a government corporation and meeting the ownership test, is a GOCC under this definition.
The Court applied the principle of statutory construction, ubi lex non distinguit nec nos distinguere debemos (where the law does not distinguish, we should not distinguish). The pertinent laws, R.A. 7975 and R.A. 8249, which define the Sandiganbayan’s jurisdiction, refer to officials of GOCCs without qualification as to their manner of incorporation. This interpretation aligns with the constitutional mandate for the Ombudsman to act against officials of all GOCCs and the state policy to repress graft. Excluding officers of GOCCs incorporated under the Corporation Code would create a loophole, allowing the government to create subsidiaries to evade accountability under the Anti-Graft Law. Therefore, Alas, as President of a GOCC, is a public officer under the jurisdiction of the Sandiganbayan for alleged violations of R.A. 3019.