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Friday, April 19, 2013

NAMARCO v. Arca


NAMARCO v. Arca
G.R. No. L-25743 September 30, 1969
Capistrano, J.

Issue:

                whether the President of the Philippines had authority to reverse the decision of the Board of Directors of the NAMARCO and to order the reinstatement of Juan T. Arive

Held:

                The President of the Philippines’ authority to review and reverse the decision of the NAMARCO Board of Directors dismissing Juan T. Arive from his position in the NAMARCO and to order his reinstatement falls within the constitutional power of the President over all executive departments, bureaus and offices. Under our governmental set-up, corporations owned or controlled by the government, such as the NAMARCO, partake of the nature of government bureaus or offices, which are administratively supervised by the Administrator of the Office of Economic Coordination, “whose compensation and rank shall be that of a head of an Executive Department” and who “shall be responsible to the President of the Philippines under whose control his functions ... shall be exercised.” (Executive Order No. 386 of December 22, 1950, section 1, issued under the Reorganization Act of 1950).

The fact that section 13(d) of Republic Act No. 1345 (the NAMARCO Charter and likewise section 11(d) of the Uniform Charter for Government Owned or Controlled Corporations (Ex. Order No. 399 of January 5, 1951) which authorize the general manager of such corporations, with the approval of the Board of Directors, to remove for cause any subordinate employee of the Corporation do not provide for an appeal from the general manager’s decision of removal to any superior officer, body or agency, does not mean that no appeal lies from such decision to the President.

The right to appeal to the President reposes upon the President’s power of control over the executive departments. And control simply means the power of an officer to alter or modify or nullify or set aside what a subordinate officer had done in the performance of his duties and to substitute the judgment of the former for the latter.

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