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  • Carandang Vs Ombudsman Disierto

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    Elias Ibarra
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    This case involves Antonio M. Carandang, the general manager and chief operating officer of Radio Philippines Network, Inc. (RPN), who was charged with grave misconduct before the Ombudsman. Carandang argued that he was not a public official and the Ombudsman lacked jurisdiction because RPN was a private corporation, not government-owned or controlled. The court examined the definition of a government-owned or controlled corporation and found that RPN did not meet the definition, as the government's share of RPN's capital stock was only 32.4%. Therefore, the court ruled that RPN was a private corporation and Carandang was outside the jurisdiction of the Ombudsman as an employee of

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    This case involves Antonio M. Carandang, the general manager and chief operating officer of Radio Philippines Network, Inc. (RPN), who was charged with grave misconduct before the Ombudsman. Carandang argued that he was not a public official and the Ombudsman lacked jurisdiction because RPN was a private corporation, not government-owned or controlled. The court examined the definition of a government-owned or controlled corporation and found that RPN did not meet the definition, as the government's share of RPN's capital stock was only 32.4%. Therefore, the court ruled that RPN was a private corporation and Carandang was outside the jurisdiction of the Ombudsman as an employee of

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    © All Rights Reserved
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    50 views1 page

    Carandang Vs Ombudsman Disierto

    Uploaded by

    Elias Ibarra
    This case involves Antonio M. Carandang, the general manager and chief operating officer of Radio Philippines Network, Inc. (RPN), who was charged with grave misconduct before the Ombudsman. Carandang argued that he was not a public official and the Ombudsman lacked jurisdiction because RPN was a private corporation, not government-owned or controlled. The court examined the definition of a government-owned or controlled corporation and found that RPN did not meet the definition, as the government's share of RPN's capital stock was only 32.4%. Therefore, the court ruled that RPN was a private corporation and Carandang was outside the jurisdiction of the Ombudsman as an employee of

    Copyright:

    © All Rights Reserved
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    of 1

    ANTONIO M.

    CARANDANG, 
    vs.
    HONORABLE ANIANO A. DESIERTO, OFFICE OF THE OMBUDSMAN,

    FACTS:
    Radio Philippines Network, Inc. (RPN) is a private corporation duly registered with the Securities and Exchange Commission (SEC).
    Roberto S. Benedicto, a stockholder thereof, entered into a compromise agreement with the Presidential Commission on Good
    Governance (PCGG) whereby he ceded to the government his shares of stock in RPN with an outstanding capital of 72.4% (which
    was later discovered to be only 32.4%). Meanwhile, Carandang assumed office as a general manager and chief operating officer of
    RPN by virtue of President Estrada’s appointment. Carandang and the other officials were charged with grave misconduct before the
    Ombudsman on the ground of him, as general manager of RPN, entered into contract with AF Broadcasting, Inc. despite his being an
    incorporator, director and stockholder of this said corporation; that he help financial and material interest in a contract that had
    required the approval of his office; and that the transaction is prohibited under Section 7 (a) and Section 9 of RA No. 6713, thereby
    rendering him administratively liable for grave misconduct.

    Issue

    Carandang insists that he was not a public official considering that RPN was not a government-owned or -controlled corporation; and
    that, consequently, the Ombudsman and the Sandiganbayan had no jurisdiction over him..

    Ruling

    Government owned or controlled corporation contained in Administrative Code of 1987, 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 indirectly 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.

    The definition mentions three (3) requisites, namely, first, any agency organized as a stock or non-stock corporation; second, vested
    with functions relating to public needs whether governmental or proprietary in nature; and, third, 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) of its capital stock.

    In the present case, all three (3) corporations comprising the CIIF companies were organized as stock corporations. The UCPB-CIIF
    owns 44.10% of the shares of LEGASPI OIL, xxx. Obviously, the below 51% shares of stock in LEGASPI OIL removes this
    firm from the definition of a government owned or controlled corporation. x x x The Court thus concludes that the CIIF are, as
    found by public respondent, private corporations not within the scope of its jurisdiction. Consequently, RPN was neither a
    government-owned nor a controlled corporation because of the Government’s total share in RPN’s capital stock being only 32.4%.

    RPN-9 is not a government owned or controlled corporation within the contemplation of the Administrative Code of 1987,
    for admittedly, RPN-9 was organized for private needs and profits, and not for public needs and was not specifically vested
    with functions relating to public needs.

    Neither could RPN-9 be considered a "government-owned or controlled corporation" under Presidential Decree (PD) No.
    2029 dated February 4, 1986,

    The PCGG’s Opinion/Clarification was affirmed by the OP itself. Relative thereto, please be informed that we affirm the PCGG’s
    opinion that RPNI is not a government-owned and/or controlled corporation (GOCC). As government ownership over RPNI
    is only 32.4% of its capital stock, pending the final judicial determination of the true and legal ownership of RPNI, the
    corporation is deemed private.

    The RPN officials, are outside the jurisdiction of this Office (Office of the Ombudsman); they are employed by a private corporation
    registered with the Securities and Exchange Commission, the RPN, which is not a government owned or controlled corporation 

    In fine, Carandang was correct in insisting that being a private individual he was not subject to the administrative authority of the
    Ombudsman and to the criminal jurisdiction of the Sandiganbayan.

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