VFP V Reyes

VFP vs Reyes
G.R. No. 155027/483 SCRA 526 February 28, 2006 Chico-Nazario, J.

Article II – Section 1 Garcia, Raphael Emmanuel M.
Petitioners Respondents
The Veterans Federation of the Philippines Angelo T. Reyes in his capacity as Secretary of
represented by Esmeraldo R. Acorda National Defense; and Hon. Edgardo E. Batenga
in his capacity as Undersecretary for Civil
Relations and Administration of the Department
of National Defense, Respondents
Recit Ready Summary

The Veterans Federation of The Philippines (VFP) was created under the statute, approved on June
18, 1960, which is Republic Act. No. 2640.
Petitioner, the VFP claims that they are a private corporation so that they should not be supervised
by the Department of National Defense, filing a petition for certiorari, asking to declare void the
Department Circular No. 04. Their reasons as to why they are not a public corporation, is that:
(1) they do not possess the elements which would qualify them as a public office;
(2) they have not received any funds from the Department of Budget and Management, which means
that they don’t operate using public funds;
(3) they retain its essential character as a private, civilian federation of veterans voluntarily formed by
the veterans themselves to attain a unity of effort, purpose and objectives;
(4) The Administrative Code of 1987 does not provide that they are an attached agency; and
(5) the DBM declared that the VFP is a non-government organization and issued a certificate that the
VFP has not been a direct recipient of any funds released by the DBM.
Issue is W/N the VFP is a private corporation, independent from the control and supervision of the
DND.
No, the VFP is not. To answer their claims one by one:

(1) the functions of the VFP are executive functions, designed to implement not just the provisions
of Rep. Act No. 2640, but also, and more importantly, the Constitutional mandate for the State to
provide immediate and adequate care, benefits and other forms of assistance to war veterans and
veterans of military campaigns, their surviving spouses and orphans;
(2) the fact that no budgetary appropriations have been released to the VFP does not prove that it is
a private corporation. The DBM indeed did not see it fit to propose budgetary appropriations to the
VFP, having itself believed that the VFP is a private corporation.
(3) the membership of the VFP is not the individual membership of the affiliate organizations, but
merely the aggregation of the heads of such affiliate organizations;
(4) the Administrative Code, by giving definitions of the various entities covered by it, acknowledges
that its enumeration is not exclusive; and
(5) the Administrative Code, by giving definitions of the various entities covered by it, acknowledges
that its enumeration is not exclusive.
This means that the assailed DND Department Circular No. 04 does not supplant nor modify and is,
on the contrary, perfectly in consonance with Rep. Act No. 2640. Petitioner VFP is a public
corporation. As such, it can be placed under the control and supervision of the Secretary of National
Defense, who consequently has the power to conduct an extensive management audit of petitioner
corporation.
Facts of the Case
The Veterans Federation of the Philippines—otherwise known as the VFP—was established under
Republic Act. No. 2640, approved on June 18, 1960.
The VFP received a letter on April 2002 that obliged them to submit audit reports concerning the
transactions of the VFP and the PVB since according to the statute it was established under, it is a
body corporate under the control and supervision of the secretary of National Defense.
Petitioner claims that it is not a public nor a governmental entity but a private organization, and
advances this claim to prove that the issuance of DND Department Circular No. 04 is an invalid
exercise of respondent Secretary's control and supervision.
Issues Ruling
1. W/N the VFP is a private corporation, independent from the control and supervision No
of the DND
Rationale/Analysis/Legal Basis
1. Rep. Act No. 2640 is entitled "An Act to Create a Public Corporation to be Known as the Veterans
Federation of the Philippines, Defining its Powers, and for Other Purposes.”
2. Any action or decision of the Federation or of the Supreme Council shall be subject to the
approval of the Secretary of Defense
3. The VFP is required to submit annual reports of its proceedings for the past year, including a full,
complete and itemized report of receipts and expenditures of whatever kind, to the President of the
Philippines or to the Secretary of National Defense.
4. Under Executive Order No. 37 dated 2 December 1992, the VFP was listed as among the
government-owned and controlled corporations that will not be privatized.
5. In Ang Bagong Bayani - OFW Labor Party v. COMELEC, this Court held in a minute resolution
that the "VFP [Veterans Federation Party] is an adjunct of the government, as it is merely an
incarnation of the Veterans Federation of the Philippines”
Disposition
Petition is denied.
Separate Opinions
N/A.

VFP V Reyes

Uploaded by

Copyright:

Available Formats

VFP V Reyes

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

VFP V Reyes

Uploaded by

Copyright:

Available Formats

VFP vs Reyes

G.R. No. 155027/483 SCRA 526 February 28, 2006 Chico-Nazario, J.

Recit Ready Summary

No, the VFP is not. To answer their claims one by one:

You might also like