Abbas, Norwaine

Delfin, Jennica Gyrl

1- Estrellado, Legal Writing
August 1, 2016
Manila Prince Hotel vs. GSIS, 267
SCRA 408 (1997)

GSIS decided to sell through public bidding 30 % - 51% of the outstanding shares of
Manila Prince Hotel Corporation (MHC). MHC owns the Manila Prince Hotel. In a
close bidding, only 2 bidders participated. Manila Prince Hotel, a Filipino
corporation, offered to buy 51% of the MHC at P41.51 per share, and Renong Renong
Berhad, a Malaysian firm, with ITT Sheraton as its operator, which bid for the same
number of shares at P44.00 per share. While the declaration of Renong Berhad as the
winning bidder is pending, Manila Prince Hotel sent a letter to GSIS and matched the
bid price of P44.00 per share tendered by Renong Berhad. Manila Prince Hotel
subsequently sent a managers check issued by Philitrust Bank for thirty three million
as a bid security but GSIS refused to accept. Perhaps apprehensive that GSIS has
disregarded the tender of the matching bid and that the sale of 51% of the MHC
maybe hastened by the GSIS, petitioner came to the court on prohibition a mandamus.
Petitioner invokes Section 10, Paragraph 2, Article XII of the 1987 Constitution and
submits that the Manila Prince Hotel which has been identified with a Filipino nation
and which practically becomes a monument which reflects the vibrancy of Philippine
heritage and culture should be preferred after it has matched the bid offer of the
Malaysian firm. Respondents maintain that Section 10, Article XII of the 1987
Constitution is merely a statement of principle and policy since it is not a selfexecuting provision and requires implementing legislations. Thus, for the said
provision to operate, there must be existing laws to lay down under which business
may be done.
Whether or not Section 10, Paragraph 2, Article XII of the 1987 Constitution is selfexecuting
Yes, Section 10, paragraph 2, Article XII of the 1987 Constitution is self-executing.
Reasoning: The Constitution mandates that qualified Filipinos shall be preferred and
when our Constitution declares that a right exists in certain specified circumstances,
an action may be maintained to enforce such right notwithstanding the absence of any
legislation on the subject. Section 10, paragraph 2, Article 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. From
its very words, the provision does not require any legislation to put it in operation
because it is per se judicially enforceable. Hence, Manila Prince Hotel should be
declared as the winning bidder.