MANILA PRINCE HOTEL VS.

GSIS
Facts:
Manila Prince Hotel is a Filipino corporation, who is one of the two
qualified bidders to the sale of the 30% - 51% of the share of the respondent GSIS
to the Manila Hotel Corporation (MHC for brevity).The other qualified bidder is the
Renong Berhad a foreign corporation who owns the ITT-Sheraton Hotel. Renong
Berhad is a Malaysian corporation, invited to bid for the MHC.
On September 18, 1995 is the date of the bidding, were petitioner
offers to buy 51% of the shares at Php 41.58 per share or Php 15,300,000.00 while
Renong Berhad bid for Php 44.00 per share or Php 2.42 more than the bid of the
petitioner. On September 28, 1995 petitioner sent a letter to respondent GSIS to
match the bid of Renong Berhad at Php 44.00 per share and on October 20, 1995
petitioner sent a managers check to respondent for a bid security amounting to Php
33,000,000.00, but respondent GSIS refused to accept it.
On October 17, 1995 petitioner filed a petition for prohibition and
mandamus if fear that GSIS would hastened the execution of the contract and on
October 18, 1995 the Supreme Court issue TRO to respondent from perfecting and
consummating the sale to the Malaysian firm.
Issue: Whether 51% share form part of the national economy and patrimony
covered by the protection mantel of the constitution.
Held:
The Supreme Court held that in Art. XII, Sec. 10 second paragraph of
the national economy and patrimony uphold the Filipino first policy wherein Filipino
corporation are given preference. This article of the constitution is a self executing
provision of the constitution because government agency such as GSIS is so greatly
involved with the private sector, does make the government responsible for his
action and the government thru GSIS has approved or authorized the action.
It must be noted that GSIS carried out the sale of the 51% of the
MHC with the approval of the state acting through the Committee on Privatization.
This Filipino first policy is a product of Philippine nationalism to
preserve historic relic such as the Manila Hotel, who is a mute witness to various
event that change the course of this country. According to the Supreme Court
national patrimony does not only pertain to natural resources but also to the
cultural heritage of the Filipinos. Manila Hotel had become land mark, a living
testimony to Philippine heritage. Many dignitaries around the world who visited the
Philippines stayed in Manila Hotel to experience Philippine heritage. This national
pride will vanish if entrusted to foreign entity.
Wherefore the respondent GSIS, MHC Committee on Privatization
and Office of the Government corporate counsel are directed to cease and desist

from selling 51% of the shares of MHC to Renong Berhad and to accept the
matching bid of petitioner Manila Prince Hotel Corporation by the Supreme Court.