Maria Carina S.J.

Villarica
Law on Public Corporations

Elected Government Officials in Bulacan

Governor: Wilhelmino M. Sy-Alvarado

Vice Governor: Daniel R. Fernando

4th District Congresswoman: Linabelle Ruth Villarica

4th District Board Members: Allan Ray Baluyot

Enrique delos Santos, Jr.
Eulogio Sarmiento III

Elected Government Officials in Marilao, Bulacan

Mayor: Juanito H. Santiago
Vice Mayor Andre: Favian D. Santos

Councilors: Jun Bob J. Dela Cruz

Divina Espiritu-Reyes
Allane T. Sayo
Arnold T. Papa
Irma G. Celones
Marlon O. Villamar
Mark Joseph L. Guillermo
Wilfredo D. Diaz

Elected Government Officials in Poblacion 2, Marilao, Bulacan

Barangay Chairman: Aaron G. Pena

Barangay Councilors: Samuel G. San Luis

Carlos A. Yabut
Gizelle E. Reyes
Christopher N. Garcia
Jocelyn P. Santiago
Marvin M. Herrera
Benedicto P. Gamba
Government-owned or controlled corporations (GOCC)

According to the cases decided by the Supreme Court Government- owned or controlled
corporations are created by special charters1 and not under the Corporation Code of the
Philippines.2 A government- owned or controlled corporation must be owned by the government,
and in the case of a stock corporation, at least a majority of its capital stock must be owned by
the government.3 The mere fact that the Government happens to be a majority stockholder does
not make it a public corporation.4 Therefore, it can sue and be sued in the same manner as any
other private corporations, and in this sense it is an entity different from our government. 5

GOCC are created to promote certain aspects of the economic life of our people.6 It was
given a corporate power separate and distinct from our government, for it was made subject to
the provisions of our Corporation Law in so far as its corporate existence and the powers that it
may exercise are concerned (sections 2 and 4, Commonwealth Act No. 518) and it may take on
the form of a private enterprise or one organized with powers and formal characteristics of a
private corporations under the Corporation Law.7

The Administrative Code of 1987 defines GOCC as follows: (Republic of the Philippines
v City of Paranaque, G.R. No. 191109, July 18, 2012)

SEC. 2. General Terms Defined. x x x x

(13) Government-owned or controlled corporation refers to any agency organized as a

stock or non-stock corporation, vested with functions relating to public needs whether
governmental or proprietary in nature, and owned by the Government directly or through
its instrumentalities either wholly, or, where applicable as in the case of stock
corporations, to the extent of at least fifty-one (51) percent of its capital stock: x x x.

According to the 1987 Constitution the Congress shall not, except by general law,
provide for the formation, organization, or regulation of private corporations. Government-
owned or controlled corporations may be created or established by special charters in the interest
of the common good and subject to the test of economic viability.8

The two conditions in creating a GOCC are 1) the GOCC must be established for the
common good; and 2) the GOCC must meet the test of economic viability.9

1 Engr. Feliciano v COA, G.R. No. 147402, January 14, 2004

2 Davao City Water District v CSC G.R. No. 95237-38 September 13, 1991
3
People v Morales, G.R. No. 166355, May 30, 2011; Liban v Gordon, G.R. No. 175352, January 18, 2011
4
National Coal Co. vs. Collector of Internal Revenue, 46 Phil., 586-587
5 Ibid.
6 Bacani v National Coconut Corporation, 100 Phil 468
7 Ibid.
8
Section 16, Art 12, 1987 Constitution
9 Republic of the Philippines v City of Paranaque, G.R. No. 191109, July 18, 2012
 GOCC with special charters, organized essentially for economic or commercial
objectives, must meet the test of economic viability because they compete in the market place.
They derive their income to meet operating expenses solely from commercial transactions in
competition with the private sector.10

10
Manila International Airport Authority v CA, G.R. No. 155650 July 20, 2006
Bangsamoro Basic Law(BBL)

The creation of BBL is in pursuance of the peace process in Mindanao. However, the
BBL is facing criticisms regarding its constitutionality.

One aspect of it being unconstitutional is because the 1987 Philippine Constitution

already created the Autonomous Regions in Muslim Mindanao so in effect the creation of BBL
would be like an amendment of the Constitution. The problem is the Constitution cannot be
amended by a law. The Constitution provides ways on how to amend the Constitution and
enacting of a law by Congress to amend the Constitution is not included.

The purpose of BBL is to establish a political entity, provide for its basic structure of
government in recognition of the justness and legitimacy of the cause of the Bangsamoro people
and their aspiration to chart their political future through a democratic process that will secure
their identity and posterity and allow for meaningful self-governance. (House Bill No. 4994)

The core territory of the Bangsamoro, as provided for by the House Bill No. 4994 or the
Bangsamoro Basic Law, shall be composed of: a. the present geographical area of the
Autonomous Region in Muslim Mindanao; b. the Municipalities of Baloi, Munai, Nunungan,
Pantar, Tagoloan and Tangkal in the province of Lanao del Norte and all other barangays in the
Municipalities of Kabacan, Carmen, Aleosan, Pigkawayan, Pikit and Midsayap that voted for
inclusion in the ARMM during the 2001 plebiscite; c. the cities of Cotabato and Isabela; and d.
all other contiguous areas where there is resolution of the local government unit or a petition of
at least ten percent (10%) of the registered voters in the area asking for their inclusion at least
two months prior to the conduct of the ratification of the Bangsamoro Basic Law and the process
of delimitation of the Bangsamoro. 4 In order to ensure the widest acceptability of the
Bangsamoro Basic Law in the core areas above-mentioned, a popular ratification shall be
conducted among all the Bangsamoro within the areas for their adoption. (House Bill No. 4994
or the Bangsamoro Basic Law)

In effect BBL is an abolition of the ARMM and the creation of a bigger entity. The
intention of the law is to create a sub-state but due to some provisions it seems that what the law
intends is to make Bangsamoro a state that would separate it from the Philippines and would
include other provinces of Mindanao that are not included in the armed conflict in Mindanao.

Therefore, BBL should not yet be passed until it is perfected and until the law achieve its
true intention which is to attain peace with our Muslim brothers.