MANILA PRINCE HOTEL, petitioner, vs.

GOVERNMENT SERVICE INSURANCE SYSTEM,

MANILA HOTEL CORPORATION, COMMITTEE ON PRIVATIZATION and OFFICE OF THE
GOVERNMENT CORPORATE COUNSEL, respondents.

[G.R. No. 122156. February 3, 1997]

EN BANC

FACTS:
The Government Service Insurance System sold through public bidding 30% to 51%
of the issued and outstanding shares of the Manila Hotel Corporation. In a close
bidding, Renong Berhad, a foreign corporation gave the higher bid against the
petitioner Manila Prince Hotel Corporation. Pending the declaration of Renong
Berhard as the winning bidder and the execution of the necessary contracts, the
petitioner, following the bidding rules promulgated by the GSIS, matched the bid
price of Renong Berhard and issued a managers check as bid security, which the
GSIS refused to accept. As a result, the petitioner requested and the Court issued a
temporary restraining order enjoining the GSIS from perfecting and consummating
the sale to the foreign firm.
The petitioner invokes Sec. 10, second par., Art. XII, of the 1987 Constitution and
submits that the Manila Hotel is part of national patrimony and thus, should be
preferred by the GSIS, to which the respondent contends.

ISSUES:
Whether Sec 10 second par Art XII of the 1987 Constitution is a self executing
provision and requires implementing legislation for the said provision to operate;
whether the 51% shares form part of the national economy and patrimony covered
by the protective mantle of the Constitution.

RULING:
1. It was held that In case of doubt, the Constitution should be considered
self-executing than non-self executing. The mere fact that legislation may
supplement and add to or prescribe a penalty for the violation of a self-
executing constitutional provision does not render such a provision
ineffective in the absence of such legislation. Hence, Sec. 10, second par.,
Art. XII of the 1987 Constitution is a mandatory, positive command which
is complete in itself and which needs no further guidelines or
implementing laws or rules for its enforcement.
2. The patrimony of the Nation that should be conserved and developed
refers not only to our rich natural resources but also to the cultural
heritage of our race. Verily, Manila Hotel has become part of our national
economy and patrimony. For sure, 51% of the equity of the MHC comes
within the purview of the constitutional shelter for it comprises the
majority and controlling stock, since 51% of the MHC cannot be
disassociated from the hotel and the land on which the hotel edifice
stands. As a result, respondent GSIS is left with no alternative but to
award to petitioner the block of shares of MHC and to execute the
necessary agreements and documents to effect the sale in accordance not
only with the bidding guidelines and procedures but with the Constitution
as well.