The Supreme Court ruled that the Philippine National Red Cross (PNRC) is a private organization, not a government-owned or controlled corporation, and therefore, its chairmanship is not a government office. However, the Court also declared that the PNRC charter is void insofar as it creates the PNRC as a private corporation. This means the PNRC should incorporate under the Corporation Code if it wants to operate as a private entity, while a sitting Senator holding position of Chairman does not violate Section 13, Article VI of the 1987 Constitution.

Serving Two Masters: Can a Senator Head the Red Cross?

The case of Dante V. Liban, Reynaldo M. Bernardo, and Salvador M. Viari vs. Richard J. Gordon arose from a petition to declare Senator Richard J. Gordon as having forfeited his seat in the Senate. The petitioners argued that, by accepting the position of Chairman of the Philippine National Red Cross (PNRC) Board of Governors, Senator Gordon violated Section 13, Article VI of the Constitution. This section prohibits Senators from holding any other government office or employment, including positions in government-owned or controlled corporations (GOCCs), during their term.

The petitioners based their claim on the premise that the PNRC is a GOCC. They cited a previous Supreme Court ruling, Camporedondo v. NLRC, which classified the PNRC as such. They also invoked the principle established in Flores v. Drilon, stating that incumbent legislators lose their posts upon appointment to another government office. Senator Gordon countered that the petitioners lacked standing to file the petition, which he characterized as a quo warranto action. He further argued that the PNRC is not a GOCC, and his volunteer service to the organization does not constitute holding an office or employment.

The Court had to consider whether the PNRC Chairman’s position qualified as a government office. The court reviewed the PNRC’s establishment through Republic Act No. 95, its role as a humanitarian organization, and its relationship with the International Red Cross and Red Crescent Movement. The PNRC’s charter defines its purpose to assist the Philippines in obligations set forth in the Geneva Conventions.

Building on this premise, it is critical to understand the dynamics between international obligations and neutrality. In order to be accepted by warring belligerents as neutral workers during international or internal armed conflicts, the PNRC volunteers must not be seen as belonging to any side of the armed conflict. This autonomy is essential to maintain the trust of all parties and effectively fulfill its mission as a National Red Cross Society.

The Court considered Section 2(13) of the Administrative Code of 1987, defining GOCCs as agencies owned by the government. The court found the PNRC primarily funded by private contributions, not government appropriations, and is controlled by a board with only a minority appointed by the President. In resolving this, the court held that the Philippine National Red Cross is not a government owned and/or controlled corporation, but is considered a private organization.

However, the Court noted a constitutional issue regarding the creation of private corporations by special law. The 1935 Constitution prohibited Congress from creating private corporations except by general law, unless government-owned or controlled. Since the PNRC was created by a special charter (RA 95) but is not government-owned or controlled, its creation as a corporate entity was deemed unconstitutional.

Therefore, although the Court held that Senator Gordon’s position was not in violation of Section 13, Article VI of the 1987 Constitution, Sections 1, 2, 3, 4(a), 5, 6, 7, 8, 9, 10, 11, 12, and 13 of the Charter of the Philippine National Red Cross, or Republic Act No. 95, as amended by Presidential Decree Nos. 1264 and 1643, are VOID because they create the PNRC as a private corporation or grant it corporate powers.

FAQs

What was the key issue in this case?	The main issue was whether Senator Richard Gordon forfeited his Senate seat by simultaneously serving as Chairman of the PNRC Board of Governors, due to the constitutional prohibition on holding multiple government offices.
Is the Philippine National Red Cross (PNRC) a government-owned corporation?	The Supreme Court ruled that the PNRC is not a government-owned or controlled corporation (GOCC) because it is primarily funded by private contributions and is not controlled by the government. However, the Court recognized the State’s role in assisting the PNRC with their activities.
What does the Constitution say about Senators holding other offices?	Section 13, Article VI of the Constitution prohibits Senators from holding any other office or employment in the government, including GOCCs, during their term, with the aim of preventing conflicts of interest and divided loyalties.
Why did the petitioners argue that Senator Gordon should lose his Senate seat?	The petitioners argued that Senator Gordon violated the constitutional prohibition by holding the position of Chairman of the PNRC Board of Governors while serving as a Senator, as they believed the PNRC was a GOCC.
What was Senator Gordon’s defense?	Senator Gordon argued that the PNRC is not a GOCC, and his position as Chairman was a form of volunteer service, not an office or employment within the meaning of the constitutional prohibition.
What did the Supreme Court decide about the PNRC charter?	The Court declared that Sections 1, 2, 3, 4(a), 5, 6, 7, 8, 9, 10, 11, 12, and 13 of the PNRC Charter are void. They create the PNRC as a private corporation or grant it corporate powers while there is an explicit constitutional prohbition.
If the PNRC isn’t government-owned, how is it funded?	The PNRC is primarily funded by contributions from private individuals and entities through solicitation campaigns organized by its Board of Governors. The said fund raising is independently from other fund drives by other organizations.
What are the practical implications of this decision?	While Senator Gordon did not violate Section 13, Article VI of the 1987 Constitution, the PNRC would need to incorporate under the Corporation Code to operate legally.

This ruling clarifies the nature of the Philippine National Red Cross as a private organization while recognizing the State’s important role in assisting with its mission. This resolution serves as a reminder of the need to adhere to constitutional principles while fulfilling humanitarian objectives. However, the pronouncement has long-term consequences for the Red Cross, especially when it comes to operation in the government. This balance allows for the independence and neutrality essential to the Red Cross’s global mission.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: Dante V. Liban, et al. vs Richard Gordon, G.R. No. 175352, July 15, 2009