PNRC appeals Supreme Court rule on charter

MANILA, Philippines - The Philippine National Red Cross (PNRC) has appealed a Supreme Court ruling declaring its charter null and void and ordering it to register with the Securities and Exchange Commission as a private corporation.

In a 17-page motion for partial reconsideration, the PNRC reiterated that its charter under Presidential Decree 1264, as amended by Presidential Decree 1643, is valid and constitutional and that it as a private and neutral organization performing humanitarian functions as an auxiliary to government.

Through lawyer Lorna Kapunan, the local chapter of the International Red Cross argued that it has a unique structure so it cannot be classified as a government-owned or controlled corporation due to the fact that the government has no control over it.

Neither can the PNRC be strictly categorized as a private corporation because it was not organized under the Corporation Code, added petitioner.

“This peculiar status of being neither here nor there is exclusive only to PNRC, and it prays that this Honorable Court respect that unique status,” the petition stated.

The PNRC also complained that the Court has allegedly failed to hear its side on the issue, which constitutes violation of its right to due process.

“It therefore came as a surprise to the PNRC when, from nowhere, its charter was declared unconstitutional without affording opportunity to defend its legal existence in a fair and impartial proceeding,” it claimed.

The PNRC explained that its charter was created under Presidential Decrees 1264 and 1643 issued by then President Marcos and not under Republic Act 95.

It noted that the entire charter of the PNRC under R.A. 95 was obliterated with the issuance of P.D. 1264, which overhauled all the provisions of R.A. 95.

Although the title of P.D. 1264 states that it is “Amending Republic Act No. 95,” the petitioner said the provisions of P.D. 1264 show that it was an entire revision of the provisions of R.A. 95.

“A strict and narrow interpretation of the nature and character of Presidential Decrees would clearly show that they were simply not created by an independent and separate power of Congress exercising legislative functions under ordinary circumstances, to which the prohibition against the creation of private corporation applies,” the PNRC said.

The PNRC added that under Article XVII, Section 3 of the 1987 Constitution, these presidential decrees, orders or executive issuances would remain valid and operative unless amended or revoked.

“In sum, PNRC respectfully submits that the constitutional proscription against Congress-created private corporations will not apply to it, as it was not created by Congress but by then President Marcos pursuant to Presidential Decree 1264 which repealed Republic Act 95,” the petitioner said.

Lastly, it asked the Court to set the case for oral arguments citing the far-reaching implications of the case on its existence as well as on the treaty obligation of the Philippines to the Geneva Red Cross Conventions.