G.R. No. 206685 . March 16, 2022
SHENZHOU MINING GROUP CORP., PETITIONER, VS. MAMANWA TRIBES OF BARANGAY TAGANITO AND URBIZTONDO, MUNICIPALITY OF CLAVER, SURIGAO DEL NORTE (AS REPRESENTED BY DATU REYNANTE BUKLAS AND DATU ALICIO PATAC) AND THE NATIONAL COMMISSION ON INDIGENOUS PEOPLES, RESPONDENTS.

FACTS

The Mamanwa Tribes, holders of a Certificate of Ancestral Domain Title, executed a Memorandum of Agreement on February 21, 2010, with Shenzhou Mining Group Corp. and the National Commission on Indigenous Peoples (NCIP) for mineral resource development. During the signing, the tribal leaders were made to believe Shenzhou was the bona fide holder of a Mineral Production Sharing Agreement. Subsequently, NCIP Commissioner Felecito L. Masagnay issued Compliance Certificate Control No. CCRXIII-19-02-13 to Shenzhou, certifying compliance with free and prior informed consent requirements. The Mamanwa Tribes later discovered the true contractor was not Shenzhou and that they were not paid agreed royalty shares. They filed a petition with the NCIP for the cancellation of the Certificate of Precondition. The NCIP En Banc declared the Compliance Certificate void ab initio, ordering Shenzhou to cease operations, return possession of the land, and pay royalties. The NCIP found that Commissioner Masagnay signed the certificate under an invalid delegation of authority from the NCIP Chairperson, Eugenio A. Insigne, invoking the principle potestas delegata non potest delegari (delegated power cannot be further delegated). The Court of Appeals affirmed the NCIP’s resolution. Shenzhou appealed, arguing that Masagnay was a de facto officer whose acts should be considered valid.

ISSUE

Whether the Compliance Certificate Control No. CCRXIII-19-02-13 issued by Commissioner Masagnay is valid despite the alleged invalid delegation of authority.

RULING

No. The Supreme Court denied the petition and affirmed the Court of Appeals’ decision. The Compliance Certificate was declared void ab initio. The power to issue certification precondition is vested by law in the NCIP as a collegial body. This power was delegated to the NCIP Chairperson. However, the subsequent redelegation of this authority by the Chairperson to Commissioner Masagnay was invalid under the principle potestas delegata non potest delegari. The NCIP En Banc, as the delegating authority, correctly reviewed and voided this unauthorized redelegation and the certificate issued pursuant to it. The Court rejected Shenzhou’s argument that Masagnay was a de facto officer, noting that the doctrine of de facto officer applies to defects in the officer’s title or appointment, not to acts performed without any authority at all, as in this case where the officer acted under a void redelegation. Consequently, all agreements premised on the void certificate were also deemed void. Shenzhou was ordered to cease operations, return possession of the ancestral domain to the Mamanwa Tribes, and pay the agreed royalties.