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Prof. Joselito Guianan Chan's The Labor Code of the Philippines, Annotated Labor Standards & Social Legislation Volume I of a 3-Volume Series 2019 Edition (3rd Revised Edition)
 

 
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UNITED STATES SUPREME COURT JURISPRUDENCE
 

 
PHILIPPINE SUPREME COURT JURISPRUDENCE
 

   
January-2000 Jurisprudence                 

  • G.R. No. 123951 January 10, 2000 - ROMEO RANOLA, ET AL. v. COURT OF APPEALS, ET AL.

  • A.M. No. P-00-1360 January 18, 2000 - ELISEO SOREÑO v. RHODERICK MAXINO, ET AL.

  • G.R. No. 114683 January 18, 2000 - JESUS C. OCAMPO v. OFFICE OF THE OMBUDSMAN, ET AL.

  • G.R. Nos. 118441-42 January 18, 2000 - ARMANDO JOSE, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 119594 January 18, 2000 - PEOPLE OF THE PHIL. v. BENZON ONG

  • G.R. No. 125994 January 18, 2000 - PEOPLE OF THE PHIL. v. BENJAMIN ANDALES

  • G.R. No. 127135 January 18, 2000 - EASTERN ASSURANCE AND SURETY CORP. (EASCO) v. COURT OF APPEALS, ET AL.

  • G.R. No. 129846 January 18, 2000 - REPUBLIC OF THE PHIL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 130944 January 18, 2000 - PEOPLE OF THE PHIL. v. VICENTE ALIB, ET AL.

  • G.R. No. 131675 January 18, 2000 - PEDRO C. LAMEYRA v. GEORGE S. PANGILINAN

  • G.R. No. 132378 January 18, 2000 - ROGELIO JUAN v. PEOPLE OF THE PHIL.

  • G.R. No. 132767 January 18, 2000 - PHIL. VETERANS BANK v. COURT OF APPEALS, ET AL.

  • G.R. No. 134854 January 18, 2000 - FELIZARDO S. OBANDO, ET AL. v. EDUARDO F. FIGUERAS, ET AL.

  • G.R. No. 139465 January 18, 2000 - SECRETARY OF JUSTICE v. RALPH C. LANTION, ET AL.

  • A.M. No. MTJ-00-1245 January 19, 2000 - ANTONIO YU-ASENSI v. FRANCISCO D. VILLANUEVA

  • A.M. No. MTJ-97-1129 January 19, 2000 - FLAVIANO B. CORTES v. FELINO BANGALAN

  • A.M. No. RTJ-99-1513 January 19, 2000 - ALFREDO B. ENOJAS v. EUSTAQUIO Z. GACOTT

  • G.R. No. 107320 January 19, 2000 - A’ PRIME SECURITY SERVICES v. NLRC, ET AL.

  • G.R. Nos. 113666-68 January 19, 2000 - GOLDEN DONUTS, INC. v. NLRC, ET AL.

  • G.R. No. 114761 January 19, 2000 - ALEMAR’S SIBAL & SONS v. NLRC, ET AL.

  • G.R. No. 119217 January 19, 2000 - PEOPLE OF THE PHIL. v. MIGUEL S. LUCBAN

  • G.R. No. 122104 January 19, 2000 - PEOPLE OF THE PHIL. v. PEPITO ORBITA, ET AL.

  • G.R. Nos. 122297-98 January 19, 2000 - CRESCENTE Y. LLORENTE v. SANDIGANBAYAN, ET AL.

  • G.R. No. 122739 January 19, 2000 - PEOPLE OF THE PHIL. v. JOSE M. PANTORILLA, ET AL.

  • G.R. No. 123655 January 19, 2000 - ANGEL BAUTISTA v. COURT OF APPEALS, ET AL.

  • G.R. No. 123183 January 19, 2000 - PEOPLE OF THE PHIL. v. RUBEN SISON

  • G.R. No. 126516 January 19, 2000 - PEOPLE OF THE PHIL. v. SHIRLEY ALAO

  • G.R. No. 127572 January 19, 2000 - PEOPLE OF THE PHIL. v. SALVADOR VILLAR

  • G.R. No. 129072 January 19, 2000 - PEOPLE OF THE PHIL. v. ANTONIO ABUBU

  • G.R. No. 130957 January 19, 2000 - VH MANUFACTURING v. NLRC, ET AL.

  • G.R. No. 132152 January 19, 2000 - PEOPLE OF THE PHIL. v. EUGENIO ADRALES, ET AL.

  • G.R. No. 132248 January 19, 2000 - ERLINDA C. PEFIANCO v. MARIA LUISA C. MORAL

  • G.R. No. 132657 January 19, 2000 - WILLIAM DIU, ET AL. v. DOMINADOR IBAJAN, ET AL.

  • G.R. Nos. 132779-82 January 19, 2000 - PEOPLE OF THE PHIL. v. DONATO BERNALDEZ

  • G.R. No. 134003 January 19, 2000 - PEOPLE OF THE PHIL. v. ALBERT NAGUM

  • G.R. No. 134329 January 19, 2000 - VERONA PADA-KILARIO, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 134535 January 19, 2000 - PEOPLE OF THE PHIL. v. ALEJANDRO MAGNO, ET AL.

  • G.R. No. 137560 January 19, 2000 - MARIA G. CRUZ, ET AL. v. COURT OF APPEALS, ET AL.

  • A.C. No. 4749 January 20, 2000 - SOLIMAN M. SANTOS, JR. v. FRANCISCO R. LLAMAS

  • Adm. Matter No. MTJ-00-1241 January 20, 2000 - NAPOLEON S. VALENZUELA v. REYNALDO B. BELLOSILLO

  • A.M. No. MTJ-00-1242 January 20, 2000 - DANIEL DUMO, ET AL. v. ROMEO V. PEREZ

  • A.M. No. RTJ-00-1522 January 20, 2000 - ROMULO SJ TOLENTINO v. POLICARPIO S. CAMANO

  • G.R. No. 76371 January 20, 2000 - MARIANO TURQUESA, ET AL. v. ROSARIO VALERA, ET AL.

  • G.R. No. 87134 January 20, 2000 - PHIL. REGISTERED ELECTRICAL PRACTITIONERS, ET AL. v. JULIO FRANCA, ET AL.

  • G.R. Nos. 100718-19 January 20, 2000 - PEOPLE OF THE PHIL. v. FREDDIE JUAN, ET AL.

  • G.R. No. 106282 January 20, 2000 - PEOPLE OF THE PHIL. v. QUINCIANO RENDOQUE, ET AL.

  • G.R. No. 108067 January 20, 2000 - CYANAMID PHIL., INC. v. COURT OF APPEALS, ET AL.

  • G.R. No. 109376 January 20, 2000 - PANFILO O. DOMINGO v. SANDIGANBAYAN, ET AL.

  • G.R. No. 110807 January 20, 2000 - PEOPLE OF THE PHIL. v. REYNALD T. NARVASA

  • G.R. No. 110929 January 20, 2000 - ABELARDO LOPEZ, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 119652 & A.M. No. P-00-1358 January 20, 2000 - VENTURA O. DUCAT v. COURT OF APPEALS, ET AL.

  • G.R. No. 123860 January 20, 2000 - PEOPLE OF THE PHIL. v. EDWIN NAAG, ET AL.

  • G.R. No. 125451 January 20, 2000 - MARCIANA MUÑOZ v. COURT OF APPEALS, ET AL.

  • G.R. No. 126151 January 20, 2000 - MANILA INTERNATIONAL AIRPORT AUTHORITY, ET AL. v. SERGIO D. MABUNAY, ET AL.

  • G.R. No. 128887 January 20, 2000 - PEOPLE OF THE PHILS. v. EDGARDO AQUINO

  • G.R. No. 130713 January 20, 2000 - PEOPLE OF THE PHIL. v. GABRIEL FLORES

  • G.R. No. 130986 January 20, 2000 - PEOPLE OF THE PHIL. v. VICTOR PAILANCO

  • G.R. No. 131512 January 20, 2000 - LAND TRANSPORTATION OFFICE [LTO] v. CITY OF BUTUAN

  • G.R. No. 132368 January 20, 2000 - PEOPLE OF THE PHIL. v. PACITO GARCES, JR.

  • G.R. No. 133775 January 20, 2000 - FIDEL DABUCO, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. Nos. 131894-98 January 20, 2000 - PEOPLE OF THE PHILS. v. JESUS DOCENA

  • G.R. No. 134167 January 20, 2000 - NASSER IMMAM v. COMELEC, ET AL.

  • G.R. No. 125965 January 21, 2000 - PEOPLE OF THE PHIL. v. PATRICIO GOZANO

  • G.R. No. 133477 January 21, 2000 - PEOPLE OF THE PHIL. v. BENJAMIN RAFALES

  • G.R. No. 135904 January 21, 2000 - PEOPLE OF THE PHIL. v. ALVIN TAN

  • G.R. Nos. 89591-96 January 24, 2000 - PEOPLE OF THE PHIL. v. BONIFACIO SANZ MACEDA

  • G.R. No. 100518 January 24, 2000 - ASSOCIATION OF TRADE UNIONS (ATU), ET AL. v. OSCAR N. ABELLA, ET AL.

  • G.R. No. 101932 January 24, 2000 - FRANCISCO H. ESCAÑO, JR., ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 111285 January 24, 2000 - PEOPLE OF THE PHIL. v. VICENTE VALLA

  • G.R. No. 116066 January 24, 2000 - NUEVA ECIJA I ELECTRIC COOPERATIVE, ET AL. v. NLRC, ET AL.

  • G.R. No. 124715 January 24, 2000 - RUFINA LUY LIM v. COURT OF APPEALS, ET AL.

  • G.R. No. 125031 January 24, 2000 - PERMEX INC., ET AL. v. NLRC, ET AL.

  • G.R. No. 129693 January 24, 2000 - PEOPLE OF THE PHIL. v. RUDY CORTES

  • A.M. No. RTJ-00-1525 January 25, 2000 - MARTIN D. PANTALEON v. TEOFILO L. GUADIZ, JR.

  • G.R. No. 80129 January 25, 2000 - GERARDO RUPA, SR. v. COURT OF APPEALS, ET AL

  • G.R. No. 102706 January 25, 2000 - PEOPLE OF THE PHIL. v. LEON LUMILAN, ET AL.

  • G.R. No. 107427 January 25, 2000 - JAMES R. BRACEWELL v. COURT OF APPEALS, ET AL.

  • G.R. No. 113518 January 25, 2000 - PEOPLE OF THE PHIL. v. ESTEBAN ARLEE

  • G.R. No. 113684 January 25, 2000 - PEOPLE OF THE PHIL. v. ARMANDO GALLARDO, ET AL.

  • G.R. No. 116332 January 25, 2000 - BAYNE ADJUSTERS AND SURVEYORS v. COURT OF APPEALS, ET AL.

  • G.R. No. 119595 January 25, 2000 - PEOPLE OF THE PHIL. v. JOVITO BARONA, ET AL.

  • G.R. No. 120267 January 25, 2000 - CLARA ESPIRITU BORLONGAN, ET AL. v. CONSUELO MADRIDEO, ET AL.

  • G.R. No. 121439 January 25, 2000 - AKLAN ELECTRIC COOPERATIVE INCORPORATED (AKELCO) v. NLRC, ET AL.

  • G.R. No. 129246 January 25, 2000 - GREENFIELD REALTY CORP., ET AL. v. LORETO CARDAMA, ET AL.

  • G.R. Nos. 131633-34 January 25, 2000 - PEOPLE OF THE PHIL. v. CRESENCIANO ENOLVA

  • G.R. No. 133132 January 25, 2000 - ALEXIS C. CANONIZADO, ET AL. v. ALEXANDER P. AGUIRRE, ET AL.

  • G.R. No. 135874 January 25, 2000 - SECURITY BANK CORPORATION v. COURT OF APPEALS, ET AL.

  • A.M. No. 99-12-192-MTC January 26, 2000 - HOLD DEPARTURE ORDER ISSUED BY ACTING JUDGE ANICETO L. MADRONIO

  • A.M. No. RTJ-00-1524 January 26, 2000 - LUCIA F. LAYOLA v. BASILIO R. GABO, JR.

  • G.R. No. 107395 January 26, 2000 - TOURIST DUTY FREE SHOPS v. SANDIGANBAYAN, ET AL.

  • G.R. No. 126115 January 26, 2000 - PEOPLE OF THE PHIL. v. ALFONSO BALGOS

  • G.R. No. 131374 January 26, 2000 - ABBOTT LABORATORIES PHIL. v. ABBOTT LABORATORIES EMPLOYEES UNION, ET AL.

  • G.R. No. 133842 January 26, 2000 - FEDERICO S. SANDOVAL v. COMELEC, ET AL.

  • G.R. No. 133969 January 26, 2000 - NEMESIO GARCIA v. NICOLAS JOMOUAD, ET AL.

  • G.R. Nos. 102961-62, 107625 & 108759 January 27, 2000 - JESUS P. LIAO v. COURT OF APPEALS, ET AL.

  • G.R. No. 117040 January 27, 2000 - RUBEN SERRANO v. NLRC, ET AL.

  • G.R. No. 130843 January 27, 2000 - PEOPLE OF THE PHIL. v. ZOILO BORROMEO

  • Adm. Case No. 1474 January 28, 2000 - CRISTINO G. CALUB v. ABRAHAM SULLER

  • A.M. No. MTJ-00-1246 January 28, 2000 - HEIRS OF JUAN and NATIVIDAD GERMINANDA v. RICARDO SALVANERA

  • A.M. No. MTJ-99-1211 January 28, 2000 - ZENAIDA S. BESO v. JUAN DAGUMAN

  • A.M. No. P-93-985 January 28, 2000 - MARTA BUCATCAT v. EDGAR BUCATCAT, ET AL.

  • G.R. No. 112177 January 28, 2000 - PEOPLE OF THE PHIL. v. TITO ZUELA, ET AL.

  • G.R. No. 112329 January 28, 2000 - VIRGINIA A. PEREZ v. COURT OF APPEALS, ET AL.

  • G.R. No. 115824 January 28, 2000 - RAFAEL M. ALUNAN III, ET AL. v. MAXIMIANO C. ASUNCION, ET AL.

  • G.R. No. 125279 January 28, 2000 - PEOPLE OF THE PHIL. v. JESUS TANAIL

  • G.R. No. 124129 January 28, 2000 - PEOPLE OF THE PHIL. v. DOMINGO BRIGILDO

  • G.R. Nos. 124384-86 January 28, 2000 - PEOPLE OF THE PHIL. v. ROMENCIANO "OMENG" RICAFRANCA, ET AL.

  • G.R. No. 125671 January 28, 2000 - CONDO SUITE CLUB TRAVEL v. NLRC, ET AL.

  • G.R. No. 125865 January 28, 2000 - JEFFREY LIANG (HUEFENG) v. PEOPLE OF THE PHIL.

  • G.R. No. 126802 January 28, 2000 - ROBERTO G. ALARCON v. COURT OF APPEALS, ET AL.

  • G.R. No. 127568 January 28, 2000 - PEOPLE OF THE PHIL. v. ROLANDO BACULE

  • G.R. Nos. 129756-58 January 28, 2000 - PEOPLE OF THE PHIL. v. JULIAN DEEN ESCAÑO, ET AL.

  • G.R. No. 131520 January 28, 2000 - ESTELITA AGUIRRE v. COURT OF APPEALS, ET AL.

  • G.R. No. 131778 January 28, 2000 - HERMAN TIU LAUREL v. PRESIDING JUDGE, ET AL.

  • G.R. No. 132138 January 28, 2000 - PEOPLE OF THE PHILS. v. ROMEO LLAMO

  • G.R. No. 133486 January 28, 2000 - ABS-CBN BROADCASTING CORP. v. COMELEC

  • G.R. No. 133987 January 28, 2000 - PEOPLE OF THE PHIL. v. JOHNNY BARTOLOME

  • G.R. No. 136805 January 28, 2000 - DIESEL CONSTRUCTION COMPANY INC. v. JOLLIBEE FOODS CORP.

  • G.R. No. 137537 January 28, 2000 - SMI DEVT. CORP. v. REPUBLIC OF THE PHIL.

  • G.R. No. 137718 January 28, 2000 - REYNALDO O. MALONZO, ET AL. v. RONALDO B. ZAMORA, ET AL.

  • G.R. No. 139545 January 28, 2000 - MAIMONA H. N. M. S. DIANGKA v. COMELEC, ET AL.

  • A.M. No. MTJ-99-1226 January 31, 2000 - GLORIA LUCAS v. AMELIA A. FABROS

  • G.R. Nos. 88521-22 & 89366-67 January 31, 2000 - HEIRS OF EULALIO RAGUA v. COURT OF APPEALS, ET AL.

  • G.R. No. 105827 January 31, 2000 - J.L. BERNARDO CONSTRUCTION v. COURT OF APPEALS, ET AL.

  • G.R. No. 112139 January 31, 2000 - LAPANDAY AGRICULTURAL DEVT. CORP. v. COURT OF APPEALS, ET AL.

  • G.R. No. 115045 January 31, 2000 - UNIVERSITY PHYSICIANS SERVICES v. COURT OF APPEALS, ET AL.

  • G.R. No. 116729 January 31, 2000 - PEOPLE OF THE PHIL. v. MARLON LERIO

  • G.R. No. 120706 January 31, 2000 - RODRIGO CONCEPCION v. COURT OF APPEALS, ET AL.

  • G.R. No. 123094 January 31, 2000 - PEOPLE OF THE PHIL. v. LUISITO PAGLINAWAN

  • G.R. No. 125440 January 31, 2000 - GENERAL BANK AND TRUST CO., ET AL. v. OMBUDSMAN, ET AL.

  • G.R. No. 127797 January 31, 2000 - ALEJANDRO MILLENA v. COURT OF APPEALS, ET AL.

  • G.R. No. 128536 January 31, 2000 - ROQUE G. GALANG v. COURT OF APPEALS, ET AL.

  • G.R. No. 128607 January 31, 2000 - ALFREDO MALLARI SR., ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 129071 January 31, 2000 - PEOPLE OF THE PHIL. v. ROBERTO MILLIAM, ET AL.

  • G.R. Nos. 129505 & 133359 January 31, 2000 - OCTAVIO S. MALOLES II v. PACITA DE LOS REYES PHILLIPS

  • G.R. No. 130104 January 31, 2000 - ELIZABETH SUBLAY v. NLRC, ET AL.

  • G.R. No. 130666 January 31, 2000 - PEOPLE OF THE PHIL. v. CASIMIRO JOSE

  • G.R. No. 134437 January 31, 2000 - NATIONAL STEEL CORP. v. COURT OF APPEALS, ET AL.

  • G.R. No. 139758 January 31, 2000 - LUCIEN TRAN VAN NGHIA v. RUFUS B. RODRIGUEZ, ET AL.

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    G.R. No. 126151   January 20, 2000 - MANILA INTERNATIONAL AIRPORT AUTHORITY, ET AL. v. SERGIO D. MABUNAY, ET AL.

     
    PHILIPPINE SUPREME COURT DECISIONS

    THIRD DIVISION

    [G.R. No. 126151. January 20, 2000.]

    MANILA INTERNATIONAL AIRPORT AUTHORITY (MIAA), former SECRETARY JESUS B. GARCIA, in his capacity as the Secretary of the Department of Transportation and Communication (DOTC), and GEN. FRANCISCO E. ATAYDE (RET.), in his capacity as the General Manager of the Ninoy Aquino International Airport, Petitioners, v. HON. SERGIO D. MABUNAY, Presiding Judge, Regional Trial Court of Manila, Branch 24 and LANTING SECURITY AND WATCHMAN AGENCY, Respondents.

    D E C I S I O N


    GONZAGA-REYES, J.:


    In their petition for review on certiorari under Rule 45 of the Rules of Court, the Manila International Airport Authority (MIAA), former Secretary Jesus B. Garcia, in his capacity as the Secretary of the Department of Transportation and Communication (DOTC), and Gen. Francisco E. Atayde (Ret.) in his capacity as the General Manager of the Ninoy Aquino International Airport, assail the decision dated August 30, 1996 of respondent Judge Sergio D. Mabunay, Presiding Judge Regional Trial Court of Manila, Branch 24, insofar as it ruled that under the laws and regulations, it is necessary for the Manila International Airport Authority to contract for security services through public bidding. The petitioners claim that the ruling interferes with "the absolute prerogative" of the petitioners to award security services either through negotiated contract or public bidding.

    Private respondent Lanting Security and Watchman Agency ("Lanting" for brevity) is a bonded security agency, which entered into an Agreement with the Manila International Airport Authority to render security services on a month-to-month basis to commence on April 31, 1987 renewable at the sole option of the MIAA. The contract was renewed by MIAA from 1988 to 1995. In 1995, upon the recommendation of the MIAA’s former General Manager for the privatization of the Aviation Security Services of MIAA, a subsidiary company, the Philippine Aviation Security Services Corporation (PASSCOR) was formed, and the MIAA Board of Directors approved the award of security services in favor of PASSCOR effective September 1, 1995. Having been informed that PASSCOR would take over the operations and management of the security of the MIAA, and that the security services contract that MIAA entered into with Lanting would be terminated by August 31, 1995, Lanting filed a complaint for injunction, which was docketed as Civil Case No. 95-75048 with the respondent Regional Trial Court of Manila, Branch XXIV, challenging the "highly irregular" awarding by MIAA of the security services contract to PASSCOR without going through public bidding, as being not only contrary to law, but likewise against public policy. The respondent Regional Trial Court issued a writ of preliminary injunction ordering MIAA not to terminate the security services of Lanting and not to award the security contract in favor of PASSCOR.

    On August 30, 1996, the parties formulated and submitted a Compromise Agreement, which was approved by the Regional Trial Court and which contained the following terms and conditions:jgc:chanrobles.com.ph

    "1. MIAA shall not implement the termination of Lanting’s security services by August 31, 1996 and instead shall extend as it hereby extends such services by a period of ten (10) months beginning 01 September 1996 to 30 June 1997. For this purpose, MIAA and Lanting shall execute the necessary Extension Contract.

    2. To effect the above extension, MIAA shall allow Lanting to redeploy a total of 274 guards within the NAIA Complex which shall be inclusive of the currently deployed 114 Lanting guards effective not later than midnight of August 28, 1996.chanrobles virtual lawlibrary

    3. Upon execution hereof, MIAA shall be free to engage immediately the services of other security agencies, including that of Philippine Aviation Security Services Corp. (PASSCOR), to meet the security needs at the NAIA Complex, also for a period of ten (10) months beginning 01 September 1996 up to 30 June 1997.

    4. Subject to paragraph 6 hereof, Lanting shall withdraw as it hereby withdraws its instant complaint.

    5. The parties shall jointly move as they so move and pray for this Honorable Court to lift the writ of preliminary injunction dated September 15, 1995 which it issued in the above-captioned case.

    6. Further, the parties shall jointly move as they respectfully move and pray for the Honorable Court to resolve the following residual issues:chanrob1es virtual 1aw library

    6.1 Whether or not the 160 Lanting security guards whose services phased-out effective July 31, 1996 are entitled to back wages for the period during the month of August 1996 when they were not deployed at the NAIA Complex;

    6.2 Whether or not MIAA has the option, under existing laws, rules and regulations, to contract security services by negotiation of through public bidding.

    7. Finally, MIAA undertakes to effect compliance with the trial court’s order on paragraph 6.1 in the event said issue is resolved in favor of payment of the security guard’s backwages, within seven (7) days from receipt of said order of the trial court. MIAA may however opt to appeal any adverse resolution on paragraph 6.2 hereof." 1

    On the issue defined in 6.2 above, which was left to the Court for resolution, the court ruled as follows:jgc:chanrobles.com.ph

    "With respect to 6.2 in the Compromise Agreement, the court rules that under the laws and regulations, it is necessary for the defendant to contract for security services through public bidding."cralaw virtua1aw library

    The following grounds are invoked to support the instant petition for certiorari:jgc:chanrobles.com.ph

    "PETITIONER MIAA HAS THE OPTION TO RESORT TO NEGOTIATED CONTRACT OR PUBLIC BIDDING.

    SECTION 62, CHAPTER 13, BOOK IV OF THE ADMINISTRATIVE CODE OF 1987 HAS NO APPLICATION TO THE CASE AT BAR." 2

    Petitioners allege that the "only issue to be resolved in this petition refers to the right of MIAA to award security services through negotiated contract or public bidding." Petitioners submit that the option to make such award is addressed to the exclusive and sole discretion of the MIAA, and the awarding of the contract to PASSCOR cannot be branded as highly irregular despite the fact that no public bidding was conducted. The petitioners point out that the Philippines is a signatory to the convention for international civil aviation, and the selection of an airport security agency is of paramount importance involving as it does national security and safety.

    Petitioners contend that the applicable law is Section 68 of R.A. 7845, whereunder the government agency concerned has the option to resort to public bidding or negotiated contract wherever it is impractical or more expensive for the government to directly undertake certain functions and operations.chanrobles virtual lawlibrary

    In its Comment, private respondent Lanting alleges that Section 68 of R.A. 7845 does not give government agencies the unqualified discretion to choose by what manner they may contract out services which they themselves cannot directly undertake. Lanting submits that the applicable legal provision is Section 62, referring to public bidding of contracts and the exceptions thereto, is applicable. Since none of the exceptional circumstances provided under Section 62 is present to justify an award by negotiated contract, the award should go through a public bidding. Respondent Lanting also points to Section 417 of the Government Auditing Rules and Regulations of the COA, which lays down the criteria for evaluating offers for security and janitorial services.

    The only legal question posed herein is whether the court a quo erred in ruling that under existing laws and regulations the contract for security services should be awarded through public bidding.

    We hold that it did not. The petition must perforce be dismissed.

    Section 68 of R.A. 7845 which is the General Appropriations Act for 1995, specifically refers to contracts for services related to the functions and operations of the government and its agencies. It reads:jgc:chanrobles.com.ph

    "SECTION 68. Service Contracts. — Departments, bureaus, offices or agencies of the National Government are hereby authorized to enter into contracts with other government agencies, private firms or individuals and non-governmental organizations for services related or incidental to their respective functions and operations, through public bidding or negotiated contracts whenever it is impractical or more expensive for the government to directly undertake such functions and operations, subject to pertinent accounting and auditing rules and regulations: PROVIDED, That the execution of the service contracts shall not operate to automatically abolish or render vacant any existing occupied position in the contracting office or agency."cralaw virtua1aw library

    Petitioners’ position that the above-quoted section gives the government agency concerned the sole option to resort to public bidding or to negotiated contract whenever it is impractical or more expensive for the government to directly undertake a certain function or operation, is not tenable. There is nothing in said provision which does away with the general requirement of public bidding in the award of government contract. This was the ruling in National Food Authority v. Court of Appeals, 3 involving the award of a contract for security services by the National Food Authority wherein the said government agency relied on Section 31 of Republic Act No. 7645, which is the counterpart provision of Section 78 of Republic Act No. 7845. This Court held:jgc:chanrobles.com.ph

    "Petitioners’ manifest reluctance to hold a public bidding and award a contract to the winning bidder smacks of favoritism and partiality toward the security agencies to whom it awarded the negotiated contracts and cannot be countenanced. A competitive public bidding aims to protect the public interest by giving the public the best possible advantages thru open competition. It is a mechanism that enables the government agency to avoid or preclude anomalies in the execution of public contracts.

    The General Appropriations Act (GAA) of 1993 cannot be used by petitioners to justify their actuations. An appropriations act is primarily a special type of legislation whose content is limited to specified sums of money dedicated to a specific purpose or a separate fiscal unit. Section 31 on the General Provisions of the GAA of 1993 merely authorizes the heads of departments, bureaus, offices or agencies of the national government to hire, through public bidding or negotiated contracts, contractual personnel to perform specific activities or services related or incidental to their functions. This law specifically authorizes expenditures for the hiring of these personnel. It is not the governing law on the award of the service contracts by government agencies nor does it do away with the general requirement of public bidding." chanrobles.com : red

    Indeed, public bidding in government contracts has been observed in this jurisdiction since the time of the Philippine Commission:jgc:chanrobles.com.ph

    "Bidding was introduced in the Philippines by the American Laws on Public Bidding until finally Act No. 22 (1900) of the Philippine Commission was enacted which became the first law on public bidding in this jurisdiction. This was followed by several related Acts such as Act Nos. 74 (1901), 82 (1901) and 83 (1901) culminating in the promulgation by President Quezon on February 3, 1936, of Executive Order No. 16 declaring as a general policy that public bidding must be the means adopted in the purchase of supplies, materials and equipment except on very extraordinary cases and with his prior approval. These Acts and Executive Order as well as the rules and regulations promulgated pertinent thereto were later incorporated in the Administrative Code and in subsequent Public Works Acts, although with slight modifications. Up to the present, this policy and medium still hold both in procurement and construction contracts of the government, and the latest enactment relative thereto is Presidential Decree No. 1594 (1978) and its Implementing Rules and Regulations." 4

    As early as 1936, then President Quezon declared as a matter of general policy that Government contracts for public service or for furnishing supplies, materials and equipment to the Government should be subjected to public bidding. 5 There were a number of amendments, 6 the latest of which, Executive Order No. 40 dated June 1, 1963 of President Diosdado Macapagal, reiterated the directive that no government contract for public service or for furnishing supplies, materials and equipments to the government or any of its branches, agencies or instrumentalities, shall be entered into without public bidding except for very extraordinary reasons to be determined by a Committee constituted thereunder. Of more recent date is Executive Order No. 301, S. 1987, issued by President Corazon Aquino, which prescribed the guidelines for decentralization of negotiated contracts. Section 1 of this issuance reiterated the legal requirement of public bidding for the award of contracts for public services and for furnishing supplies, materials and equipment to the government, and expressly specified the exceptions thereto.

    By positive provision of the annual General Appropriations Acts 7 government offices and agencies are authorized to enter into contracts for services related or incidental to their respective functions and operations, either through public bidding or negotiated contract, whenever it is impractical or more expensive for the government to directly undertake such functions and operation, subject to accounting or auditing rules and regulations. As earlier stated, these provisions are not to be construed as doing away with the general requirement of public bidding. Indeed, public bidding is the accepted method for arriving at a fair and reasonable price and it ensures that overpricing and favoritism, and other anomalous practices are eliminated or minimized 8 and we reiterate that Section 68 of the General Appropriations Act has not dispensed with such requirement for contracts for services awarded thereunder. Although the legislature in making appropriations under its exclusive jurisdiction leaves largely to administrative discretion the choice of ways and means to accomplish the object of appropriation, that administrative discretion may not transcend the statutes. 9

    WHEREFORE, the petition is denied for lack of merit.chanrobles.com : red

    SO ORDERED.

    Melo, Vitug, Panganiban and Purisima, concur.

    Endnotes:



    1. Rollo, pp. 32-33.

    2. Rollo, pp. 17-18.

    3. 253 SCRA 470.

    4. Faustino C. Sentelices, Bidding and Award of Government Contracts, Proceedings of the Seminar on Government Contracts, U.P. Law Center.

    5. The same requirement of public bidding is imposed for public works of construction or repair, pursuant to Sections 1917 and 1919, Rev. Adm. Code and more recently Section 62 of the Administrative Code of 1987 and Section 4 of P. D. 1594.

    6. E. O. No. 98, S. 1937; E. O. No. 298, S. 1940; E. O. No. 146, dated December 27, 1938; E.O. No. 212, dated November 6, 1956; E.O. No. 318, dated September 17, 1958, and; E.O. No. 358, dated September 23, 1959.

    7. Sec. 21, R..A.. 6831, GAA for 1990; Section 31, R.A. 7078, GAA for 1991; Section 31, GAA for 1993; Section 78, GAA for 1995.

    8. Tantuico, Jr. State Audit Code of the Philippines, 1982 ed. p. 450.

    9. Tantuico, Jr., supra, at p. 448.

    G.R. No. 126151   January 20, 2000 - MANILA INTERNATIONAL AIRPORT AUTHORITY, ET AL. v. SERGIO D. MABUNAY, ET AL.


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