Professional Documents
Culture Documents
Admin Law 1 - Intro - Nbi Investigatory
Admin Law 1 - Intro - Nbi Investigatory
Ex: National Power Corporation, Phil. Ports This field of law is a recent development,
Authority, National Housing Authority. Phil. being a consequence of the ever-increasing
National Oil Company complexities of society and the proliferation
of problems of government that cannot
Non-incorporated agencies: are those readily or effectively be addressed by the
not vested with a juridical personality traditional public agencies or solved by the
distinct from the Republic, endowed other disciplines of public law.
by law with some if not all corporate
powers. The reason for delegation of authority to
administrative agencies is the increasing
Ex: Sugar Regulatory Administration which is complexity of the task of government
not a GOCC but an agency under the OP. requiring expertise as well as the growing
inability of the legislature to cope directly with
* Incorporated and non-incorporated the myriad problems demanding its attention.
agencies or instrumentalities are all agents or The growth of society has ramified its
delegates of the Republic of the Philippines. activities and created peculiar and
sophisticated problems that the legislature
Chartered institution: refers to any cannot be expected to attend to by itself.
agency organized or operating under Specialization even in legislation has become
a specific charter, and vested by law necessary. On many problems involving day-
with functions relating to specific to-day undertakings, the legislature may not
constitutional policies or objectives. have the needed competence to provide the
required direct and efficacious, not to say,
Administration: refers to the specific solutions. These solutions may,
aggregate of those persons in whose however, be expected from its delegates, who
hand the reins of government are for are supposed to be experts in the particular
the time being. fields assigned to them. (Echegaray v.
Secretary)
ADMINISTRATIVE AGENCIES
Creation
o Administrative agencies, boards and
commissions are public offices.
The administrative body or public performing some business for the
office may be created by the public.
Constitution or by statute or by an 4. Agencies created to function in
officer or tribunal to which the power situations wherein government is
to create the office has been seeking to regulate business affected
delegated by the legislature. with public interest.
5. Agencies created to function in
If created by the Constitution itself, situations wherein government is
the administrative body can be seeking under the police power to
altered or abolished only by regulate private business and
constitutional amendment. individuals.
6. Agencies created to function in
But where the body was created only situations wherein government is
by statute, the legislature that seeking to adjust individual
breathed life into it can amend or controversies because of some strong
even repeal its charter, thereby social policy involved.
resulting in its abolition. 7. Agencies created to function in
situations wherein government is
Power to Reorganize seeking to conduct investigations and
gather evidence for information,
Reorganization is the process of restructuring recommendation or prosecution of
the bureaucracy’s organizational and crimes.
functional set-up, to make it more viable in
terms of economy, effectiveness, and make it CASES: Government-Owned and Controlled
more responsive to the needs of its public Corporations v. Government Instrumentality
clientele as authorized by law.
An administrative body created by law may be Manila International Airport Authority v. City
reorganized pursuant to said law providing for of Pasay (April 2, 2009)
its establishment or another law authorizing
said reorganization. HELD: MIAA is a government
"instrumentality" that does not qualify as a
The legislature usually exercises the power to "government-owned or controlled
create or abolish by delegating it to the corporation.
President or to another executive officer or
body. The means by which the legislature A government-owned or controlled
makes the delegation is by authorizing corporation must be "organized as a stock or
reorganization. non-stock corporation." MIAA is not organized
as a stock or non-stock corporation. MIAA is
Types of Administrative Agencies not a stock corporation because it has no
capital stock divided into shares. MIAA has no
1. Agencies created to function in stockholders or voting shares.
situations wherein government is
offering some gratuity, grant, or MIAA is also not a non-stock corporation
special privileges. because it has no members. Section 87 of the
2. Agencies created to function in Corporation Code defines a non-stock
situations wherein government is corporation as "one where no part of its
seeking to carry on certain income is distributable as dividends to its
governmental functions. members, trustees or officers." A non-stock
3. Agencies created to function in corporation must have members.
situations wherein government is
MIAA is a government instrumentality vested corporation; second, the public character of
with corporate powers to perform efficiently its function; and third, government ownership
its governmental functions. MIAA is like any over the same.
other government instrumentality, the only
difference is that MIAA is vested with Possession of all three attributes is necessary
corporate powers. to deem an entity a GOCC.
** A government "instrumentality" may In this case, there is not much dispute that the
include a "government-owned or controlled MECO possesses the first and second
corporation," there may be a government attributes. It is the third attribute, which the
"instrumentality" that will not qualify as a MECO lacks.
"government-owned or controlled
corporation." Organization as a non–stock corporation and
the mere performance of functions with a
Funa v. Manila Economic and Cultural Office public aspect, however, are not by themselves
and COA (Feb. 04, 2014) sufficient to consider the MECO as a GOCC. In
order to qualify as a GOCC, a corporation
HELD: The MECO is not a GOCC or must also, if not more importantly, be owned
government instrumentality. by the government.
Indeed, from hindsight, it is clear that the Philippine Fisheries Development Authority
MECO is uniquely situated as compared with v. Court of Appeals (July 31, 2007)
other private corporations. From its over–
reaching corporate objectives, its special duty HELD: Indeed, the Authority is not a GOCC but
and authority to exercise certain consular an instrumentality of the government. The
functions, up to the oversight by the executive Authority has a capital stock but it is not
department over its operations—all the while divided into shares of stocks. Also, it has no
maintaining its legal status as a non– stockholders or voting shares. Hence, it is not
governmental entity—the MECO is, for all a stock corporation. Neither it is a non-stock
intents and purposes, sui generis. corporation because it has no members.
The Constitution authorizes Congress to Under its charter, the PEZA was created a
create government-owned or controlled body corporate endowed with some
corporations through special charters. Since corporate powers. However, it was not
private corporations cannot have special organized as a stock or non-stock corporation.
charters, it follows that Congress can create Nothing in the PEZA’s charter provides that
corporations with special charters only if such the PEZA’s capital is divided into shares. The
corporations are government-owned or PEZA also has no members who shall share in
controlled. the PEZA’s profits.
Obviously, LWDs [referring to local water The PEZA, therefore, need not be
districts] are not private corporations because economically viable. It is not a government-
they are not created under the Corporation owned or controlled corporation liable for
Code. LWDs are not registered with the real property taxes.
Securities and Exchange Commission. Section
14 of the Corporation Code states that [A]ll Republic v. City of Parañaque
corporations organized under this code shall (July 18, 2012)
file with the Securities and Exchange
Commission articles of incorporation x x x. HELD: In the case at bench, the Philippine
Reclamation Authority is not a GOCC because
LWDs have no articles of incorporation, no it is neither a stock nor a non-stock
incorporators and no stockholders or corporation. It cannot be considered as a
members. There are no stockholders or stock corporation because although it has a
capital stock divided into no par value shares purposes, such as the offices of public
as provided in Section 74 of P.D. No. 1084, it is prosecutor and the Ombudsman.
not authorized to distribute dividends, surplus
allotments or profits to stockholders. There is Still others exercise investigatory
no provision whatsoever in P.D. No. 1084 or in powers in aid in the exercise of other
any of the subsequent executive issuances powers granted them, like the SEC in
pertaining to PRA, particularly, E.O. No. 525,5 the regulation of private corporations.
E.O. No. 6546 and EO No. 7987 that
authorizes PRA to distribute dividends, Investigations are useful for all
surplus allotments or profits to its administrative functions including
stockholders. rule-making, adjudication, and
licensing, supervising and directing for
PRA cannot be considered a non-stock determination of public policy, for
corporation either because it does not have recommending legislation.
members. A non-stock corporation must have
members. Moreover, it was not organized for The enabling act defines the extent of
any of the purposes mentioned in Section 88 such investigatory powers.
of the Corporation Code. Specifically, it was
created to manage all government
reclamation projects.
President’s Investigatory Power
It includes the power of an administrative His investigatory power also comes from
body to inspect the records, premises, and powers delegated to him by the legislature. In
investigate the activities of persons or entities the exercise of his investigatory power, the
coming under its jurisdiction, or to secure, or President may do so thru an executive officer,
to require the disclosure of information by or create a body or committee to conduct the
means of accounts, records, reports, investigation, empower said officer, body or
statements, testimony of witnesses, committee to issue subpoena and subpoena
production of documents, or otherwise. duces tecum for the purpose, and to make
recommendations, on the basis of which he
Purposes will make his appropriate action.
Held: Yes. When investigative and accusatory An investigatory body with the sole power of
duties are delegated by statute to an investigation does not exercise judicial
administrative body, it, too may take steps to functions and its power is limited to
inform itself as to whether there is probable investigating the facts and making findings in
violation of the law. In sum, it may be stated respect thereto. The test whether an
that a subpoena meets the requirements for administrative body is exercising judicial
enforcement if the inquiry is (1) within the functions or merely investigatory functions is:
authority of the agency; (2) the demand is not if the only purpose of investigation is to
too indefinite; and (3) the information is evaluate evidence submitted before it based
reasonably relevant. on facts and circumstances presented to it,
and if the agency is not authorized to make a
There is no doubt that the fact-finding final pronouncement affecting the parties,
investigations being conducted by the Agency then there is an absence of judicial discretion
fall within the Agency's sphere of authority and judgment.
and that the information sought to be elicited
from respondent Fernando Manalastas, of There are administrative agencies which are
which he is claimed to be in possession, is granted only investigatory powers. Ex: CHR
reasonably relevant to the investigations. and NBI.