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PNOC-EDC v. Leogardo

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8 views1 page

PNOC-EDC v. Leogardo

Uploaded by

Dom Balseen
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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2. Philippine National Oil Company-Energy Development Corp. vs.

Leogardo
G.R. No. L-58494, 256 Phil. 475 – 175 SCRA 26, July 5, 1989; MELENCIO-HERRERA, J.:; 2nd Division

Doctrine:
The Civil Service embraces all branches, subdivisions, instrumentalities and agencies of the
Government, including government-owned or controlled corporations with original charters. (Article IX-B,
Section 2 [1])
Under this provision, the test in determining whether a GOCC is subject to the Civil Service Law is
the manner of its creation such that government corporations created by special charter are subject to its
provisions while those incorporated under the general Corporation Law are not within its coverage.

Facts:
In December 1977, a Christmas party was held for the employees of Philippine National Oil
Company – Energy Development Corporation (PNOC-EDC). In said event, one Vicente Ellelina, employee
of PNOC-EDC, tried to grab an armalite rifle from a constabulary officer after he was denied to receive a
raffle prize because he lost his winning ticket. For the commission of said crime, PNOC-EDC sought the
dismissal of Ellelina.
The Ministry of Labor and Employment (MOLE) did not give clearance to Ellelina’s dismissal. This
was affirmed by then Minister of Labor, Vicente Leogardo.
PNOC-EDC assailed the jurisdiction of MOLE as it alleged that PNOC-EDC as a subsidiary of the
Philippine National Oil Company (PNOC), a government owned or controlled corporation, is likewise a
GOCC hence it should be the Civil Service Commission (CSC) that should have jurisdiction.

Issue
Whether PNOC-EDC is under the jurisdiction of the Civil Service Commission and not MOLE

Ruling:
No. It is true that PNOC is a GOCC and that PNOC-EDC, being a subsidiary of PNOC, is likewise a
GOCC. It is also true that under the 1973 Constitution, all GOCCs are under the jurisdiction of the CSC.
However, the 1987 Constitution change all this as it now provides:
The Civil Service embraces all branches, subdivisions, instrumentalities and agencies of the
Government, including government-owned or controlled corporations with original charters. (Article IX-B,
Section 2 [1])
Hence, the above provision sets the rule that the mere fact that a corporation is a GOCC does not
automatically place it under the CSC. Under this provision, the test in determining whether a GOCC is
subject to the Civil Service Law is the manner of its creation such that government corporations created by
special charter are subject to its provisions while those incorporated under the general Corporation Law are
not within its coverage.
In the case at bar, PNOC-EDC, even though it is a GOCC, was incorporated under the general
Corporation Law – it does not have its own charter, hence, it is under the jurisdiction of the MOLE.
WHEREFORE, the Petition is DISMISSED, and the judgment of respondent public official is hereby
AFFIRMED. No costs.

Full text: https://lawphil.net/judjuris/juri1989/jul1989/gr_l58494_1989.html

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