157 Carandang vs Desierto Gr No. 153161 Jan 12, 2011. Cddocx

Jurisdiction of Courts

CARANDANG V. DESIERTO (G. R. NO. 148076, January 12, 2011) Related Topics: Jurisdiction of Courts Facts: RPN-9 is a private corporation duly register ed with the SEC. Benedicto, a stockholder thereof, entered into a compromise agreement with the 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, the President appointed Carandang as a general manager and chief operating officer of RPN. He was 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. Carandang sought the dismissal of the administrative complaint filed against him on the ground that the Ombudsman had no jurisdiction over him because RPN was not a GOCC. Consequently, he insists that he is not a public official, hence he is not subject to the administrative authority of the Ombudsman and the criminal jurisdiction of the Sandiganbayan. Issue:Whether or not RPN is a GOCC, which in turn renders Carandang subject to the administrative authority of the Ombudsman and the criminal jurisdiction of the Sandiganbayan. Ruling:No. RPN is not a GOCC. The law defines what GOCC are. Section 2 of PD 2029 states that a GOCC is a stock or a non-stock corporation, whether performing governmental or proprietary functions, which is directly chartered by a special law, or if organized under the general corporation law is owned or controlled by the government directly or indirectly through a parent corporation or subsidiary corporation, to the extent of at least a majority of its outstanding capital stock or of its outstanding voting capital stock. Section2 (13) of EO 292 also gives a definition of such corporations. Due to the inability to resolve the issue regarding the actual shares owned by the PCGG, the conclusion that the government held majority shares finds no factual or legal basis. Hence, Carandang is not subject to the administrative authority of the Ombudsman and the criminal jurisdiction of the Sandiganbayan.

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