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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