Manila Public School Teachers Association, Inc. vs. Hon. Onofre D. Corpuz, et al.

[SEC-SICD * CASE NO. 2245. February 4, 1985.] MANILA PUBLIC SCHOOL TEACHERS ASSOCIATION, INC. , petitioners , vs .HON. ONOFRE D. CORPUZ, ET AL. , respondents . D E C I S I O N This is a petition for declaratory relief on the following questions: 1. Whether LOI 860 is unconstitutional insofar as it authorizes the respondent Minister, Hon. Onofre D. Corpuz of the Ministry of Education and Culture, to take over the management and control of PPSTA; and 2. Assuming LOI 860 to be valid and constitutional, whether it authorized the respondent Minister to amend the PPSTA by-laws. The respondents offered as defense that the Commission (SEC) has no power to pass upon the constitutionality of LOI 860 and that the power of respondent Minister to institute reforms in the PPSTA carries with it the power to amend the organization's by-laws. From the evidence presented, it appears that there is not much controversy as to the facts of the case. They are stated summarily as follows: 1. As to the Parties The Petitioners: A. Manila Public School Teachers Association (MPSTA for short) B. Federico Ricafort, Benedicto Hornilla, Albino Ganiron and Vicente Tungcul. The Respondents: A. Onofre D. Corpuz, public respondent, the then Minister of the Ministry of Education and Culture. B. Philippine Public School Teachers Association (PPSTA for short). C. Onofre D. Corpuz, Juan Manuel, Nassal Allian, Conrado Bacuyag, Modesta Boquiren, Eleuterio Castillo, Servillano dela Cruz, Jr.,Andres Fonacier, Jaime Jamlang, Dominador Lopez, Saturnino Magturo, Antonio Pepito, Makil Pundaodaya, Loreto Rafols, Felix Villarin, Aurelio Salunat, and Santos Pascual, as Directors of PPSTA under the amended by-laws. II. As to the Facts Upon the persistent complaints from the public school teachers in 1978, the Government, through the Office of the Insurance Commissioner, investigated the financial condition and business practices of the respondent Philippine Public School Teachers Association (PPSTA).Thereafter, the Office of the Insurance Commissioner recommended the placing of PPSTA under a conservator who can carry out needed reforms in that organization. On May 16, 1979, the President issued Letter of Instructions No. 860 directing and empowering the respondent Minister of Education to take over the management and control of PPSTA. LOI 860 is hereby quoted in full, as follows: "TO : The Minister of Education and Culture SUBJECT : Directing the Minister of Education and Culture to take over the management, control and operation of the Philippine Public School Teachers Association . WHEREAS, the Philippine Public School Teachers Association performs welfare services vital to the morals of the public school teachers from funds derived from authorized deductions against their salaries which funds now constitute the Mutual Aid System (MAS),the Mutual Financial Assistance System (MFAS),and the Mutual Retirement Benefit System (MRBS),all managed and operated by said Association; WHEREAS, the membership of the Association being mainly public school teachers, the Minister of Education and Culture becomes primarily responsible for safeguarding the interest and welfare of the teacher-members and should likewise be equally concerned with the manner the said association is being managed and operated, more particularly on the matter of utilization and disbursements of funds held in trust by the Association; NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of the Philippines, by virtue of the powers vested in me by the constitution, do hereby direct the Minister of Education and Culture to: 1. Immediately take over the management and control of the Philippine Public School Teachers' Association (PPSTA); 2. Institute reform in the PPSTA and take such other actions as may be necessary to insure the stability and continued operations of the Association and the financial viability of all the existing funds, systems and services, including the weeding out and punishment of undesirable officers and employees thereof on grounds provided by pertinent laws, including dishonesty, incompetence, or misconduct; and 3. Conduct a management audit made into the affairs of the Association and all its funds, systems and services immediately. DONE in the City of Manila, Philippines, this 16th day of May in the year of Our Lord, Nineteen Hundred and Seventy-nine. SGD. FERDINAND E. MARCOS" After the issuance of LOI 860, respondent Minister took over the management and control of the PPSTA and amended the PPSTA's by-laws on December 23, 1979. One amendment in particular, which is now one of the subjects of the controversy, is on Section 1 of the original PPSTA's by-laws. Before its amendment, the original by-laws provided for 15 members of the Board of Directors to consist of the following: "Superintendents and College Presidents 2 General Office and Division Supervisors 1 Secondary and College Principals 1 District Supervisors 1 Elementary School Principals 1 Secondary School Teachers 2 Head Teachers and Coordinators 1 Elementary Grade Teachers 1 Clerical and other Services 1" The alleged concept of this aforesaid original provision of the PPSTA by-laws is to give representation to the minority groups in the PPSTA Board, The Elementary Grade Teachers and Secondary School Teachers who compose more than 90% of the total membership of the PPSTA are automatically entitled to six (6) directors. However, this concept was changed by the amended by-laws wherein membership in the Board was made on the basis of regional representation. Each 13 regions of the country was entitled to one member in the Board, thereby having 13 regional Directors. The two other remaining directors were to be nominated by the Minister. This amended by-laws was later on filed with the Commission which in turn acknowledged the filing on August 7, 1980, as follows: "This is to acknowledge receipt of the code of new by-laws of the above corporation together with other attachments thereto, and to inform you that the same has been attached to the records of the corporation on file with this Commission." On November 19, 1981, the representative assembly of PPSTA met in plenary session and elected its new members of the Board of Directors, the respondents herein, pursuant to the amended by-laws. The elected members of the Board for 1981-1983 were, namely: 1 . Dr. Nassal Allian Regional Director 2. Mr. Conrado Bacuyag Prov'l. Superintendent 3. Dr. Modesta Boquiren Asst. Regional Director 4. Mr. Eleuterio Castillo Division Superintendent 5. Atty. Servillano dela Cruz, Jr. Asst. Regional Director 6. Mr. Andres Fonacier Regional Director 7. Mr. Jaime R. Jamlang District Supervisor 8. Atty. Dominador C. Lopez Retired Superintendent 9. Dr. Saturnino Magturo Regional Director 10. Mr. Antonio Pepito District Supervisor 11. Mr. Makil Paundoya Division Superintendent 12. Atty. Loreto Rafolls Division Legal Officer 13. Mr. Felix Villarin Regional Director" Petitioners contend that the LOI 860 is unconstitutional because it is a deprivation of property without due process of law, the PPSTA being a purely private association duly registered and existing under the laws. The government has no financial exposure with the PPSTA since its funds come directly from the contribution of its members. The take over, therefore, by the government thru the Minister of Education and Culture of the management and control of the Association, has no legal or constitutional basis. Further, the Letter of Instruction itself did not specifically direct the respondent Minister to amend the PPSTA constitution and by-laws for the obvious reason that only the PPSTA members can amend their own by-laws because it is a covenant or agreement between the members a document that they have promulgated to govern their relation among themselves. Any purported by-laws imposed by a stranger, who in this instance is the respondent Minister, cannot be but void ab initio. Therefore, the PPSTA amended By-laws promulgated by respondent Minister should be declared null and void. Respondent Minister asserts that the Letter of Instructions 860 is part of the law of the land and remains valid, legal, binding and effective until revoked by the President of the Philippines or modified by the regular National Assembly; that the Commission has no jurisdiction to pass upon the constitutionality of statutes or executive orders, since that power is expressly lodged by the Constitution in the Supreme Court and the Courts under it as provided by law. (Article X, Sec. 5, Constitution of the Philippines). Insofar as this Commission is concerned, the question here presented is one concerning the constitutionality of Letter of Instructions No. 860, and as correctly pointed out by the respondents, it is not within the province and competence of this Commission to pass upon the constitutionality of the letter of instruction in question. Likewise, while it is true as pointed out by the petitioners, that the said LOI 860 did not specifically direct the respondent Minister to amend the PPSTA by-laws still Commission feels that the directives addressed to respondent Minister as embodied in the LOI to "take over the management and control" and "to institute reforms in the PPSTA" are too all encompassing as to include the amendment of the by-laws. However, considering that respondents term as members of the PPSTA Board of Directors had already expired on April 30, 1983, and that no National Convention was ever convened by such Board of Directors as provided in the PPSTA constitution and by-laws, this Commission believes that a calling of the PPSTA Representative Assembly is proper under the given salto ( illegible portion in SEC files ) WHEREFORE, judgment is hereby rendered directing the respondents or their successors in office to immediately convene the Representative Assembly pursuant to Art. VII of the Amended by-laws of December 28, 1979 and for them to elect their successors to the PPSTA Board in accordance with Art. IV. SO ORDERED. (SGD.) JOAQUIN O. GARAYGAY Hearing Officer