G.R. No. L-25743 September 30, 1969
NATIONAL MARKETING CORPORATION, CORNELIO BALMACEDA, JOSE CALDERON, ANTONIO ARAMBULO, PEDRO BALINGIT, CIPRIANO MALONZO and ROSENDO TOMAS, petitioners, vs. HON. FRANCISCO ARCA, Presiding Judge of the Court of First Instance of Manila, Branch I and JUAN T. ARIVE, respondents.

FACTS

Respondent Juan T. Arive was the Manager of the Traffic-Storage Department of the National Marketing Corporation (NAMARCO). After an investigation for violating a management order and causing improper release of shipments, he was found guilty and dismissed by the General Manager and the Board of Directors via Resolution No. 584-60. Arive appealed to the President of the Philippines. On January 26, 1965, the Executive Secretary, acting for the President, set aside the NAMARCO resolution and ordered Arive’s reinstatement, finding the management order he violated had been declared illegal by the Supreme Court and that he lacked control over the private warehouses involved. NAMARCO sought reconsideration, arguing the President had no jurisdiction to review its decisions as its charter ( Republic Act No. 1345 ) did not provide for an appeal. The President, through the Executive Secretary, denied the motions, upheld his jurisdiction under his constitutional power of control, and directed implementation. When NAMARCO failed to comply, Arive filed a complaint in the Court of First Instance of Manila for reinstatement and damages. Respondent Judge Francisco Arca issued an order and a writ of preliminary mandatory injunction directing Arive’s reinstatement. NAMARCO and its Board members then filed this original action for certiorari and prohibition to enjoin the enforcement of the judge’s order and writ.

ISSUE

Whether the President of the Philippines had the authority to reverse the decision of the Board of Directors of NAMARCO dismissing Juan T. Arive and to order his reinstatement.

RULING

Yes. The Supreme Court held that the President’s authority to review and reverse the NAMARCO Board’s decision falls within his constitutional power of control over all executive departments, bureaus, and offices under Section 10(1), Article VII of the Constitution . Government-owned or controlled corporations like NAMARCO partake of the nature of government bureaus or offices. They are administratively supervised by the Administrator of the Office of Economic Coordination, who is responsible to the President. The fact that the NAMARCO Charter vests removal power in the General Manager and Board without providing for an appeal does not preclude an appeal to the President, as the right to appeal to the President is rooted in the President’s power of control, which includes the power to alter, modify, nullify, or set aside a subordinate’s act and substitute his judgment. The President’s decision ordering reinstatement, having become final and binding, established Arive’s clear right to reinstatement. Consequently, the respondent judge did not act without jurisdiction or with grave abuse of discretion in issuing the writ of preliminary mandatory injunction. The petition was dismissed and the preliminary injunction issued by the Supreme Court was dissolved.