Manila Prince Hotel vs. GSIS (Political Law Review)

Manila Prince Hotel vs. GSIS, G.R. No. 122156 | February 3, 1997

FACTS:

Pursuant to the privatization program of the Philippine Government, the GSIS sold in public auction its stake in Manila Hotel Corporation (MHC). Only 2 bidders participated: petitioner Manila Prince Hotel Corporation, a Filipino corporation, which offered to buy 51% of the MHC or 15,300,000 shares at P41.58 per share, and Renong Berhad, a Malaysian firm, with ITT-Sheraton as its hotel operator, which bid for the same number of shares at P44.00 per share, or P2.42 more than the bid of petitioner.

Petitioner filed a petition before the Supreme Court to compel the GSIS to allow it to match the bid of Renong Berhad. It invoked the Filipino First Policy enshrined in §10, paragraph 2, Article XII of the 1987 Constitution, which provides that “in the grant of rights, privileges, and concessions covering the national economy and patrimony, the State shall give preference to qualified Filipinos.”

ISSUES:

Whether or not Article XII, Section 10, par. 2 of the Constitution is self-executing.

Whether or not Manila Hotel is part of national patrimony.

RULING:

Article XII, Section 10, par. 2 of the Constitution is self-executing.

A provision which lays down a general principle, such as those found in Art. II of the 1987 Constitution, is usually not self-executing. But a provision which is complete in itself and becomes operative without the aid of supplementary or enabling legislation, or that which supplies sufficient rule by means of which the right it grants may be enjoyed or protected, is self-executing.

Thus a constitutional provision is self-executing if the nature and extent of the right conferred and the liability imposed are fixed by the constitution itself, so that they can be determined by an examination and construction of its terms, and there is no language indicating that the subject is referred to the legislature for action.

Unless it is expressly provided that a legislative act is necessary to enforce a constitutional mandate, the presumption now is that all provisions of the constitution are self-executing If the constitutional provisions are treated as requiring legislation instead of self-executing, the legislature would have the power to ignore and practically nullify the mandate of the fundamental law.

In self-executing constitutional provisions, the legislature may still enact legislation to facilitate the exercise of powers directly granted by the constitution, further the operation of such a provision, prescribe a practice to be used for its enforcement, provide a convenient remedy for the protection of the rights secured or the determination thereof, or place reasonable safeguards around the exercise of the right.

Manila Hotel is part of national patrimony.

In its plain and ordinary meaning, the term patrimony pertains to heritage.  When the Constitution speaks of national patrimony, it refers not only to the natural resources of the Philippines, as the Constitution could have very well used the term natural resources, but also to the cultural heritage of the Filipinos.

Other matters discussed: Doctrine of constitutional supremacy

Under the doctrine of constitutional supremacy, if a law or contract violates any norm of the constitution that law or contract whether promulgated by the legislative or by the executive branch or entered into by private persons for private purposes is null and void and without any force and effect. Thus, since the Constitution is the fundamental, paramount and supreme law of the nation, it is deemed written in every statute and contract.