Cervantes vs Auditor General Case Digest

Cervantes vs Auditor General Case Digest – G.R. No. L-4043 May 26, 1952

Cervantes vs Auditor General Case Digest


This is a petition to review a decision of the Auditor General denying petitioner’s claim for quarters allowance as manager of the National Abaca and Other Fibers Corporation, otherwise known as the NAFCO.

The NAFCO was created by the Commonwealth Act No. 332, approved on June 18, 1939.

On October 4, 1946, Republic Act No. 51 was approved authorizing the President of the Philippines, among other things, to effect such reforms and changes in government owned and controlled corporations for the purpose of promoting simplicity, economy and efficiency in their operation Pursuant to this authority

Facts

Petitioner was the manager of NAFCO in 1949 with an annual salary of Php 15,000. By a resolution of the Board of Directors, he was granted a quarter allowance of not exceeding Php 400 a month effective on the first of that month.

This allowance was disapproved by the Central Committee. The petitioner questions the validity of RA 51 which created the office that supervises the offices that recommended and decided the disapproval of his allowance.


RELATED


Issue

Whether RA 51 is unconstitutional.

Ruling

No.

RA 51 is constitutional. It is not an illegal delegation of legislative power to the executive as argued by the petitioner. IT is a mandate for the President to streamline Government-Owned and Controlled Corporations.

Hence, the petition for review was dismissed by the Supreme Court.


As to the first ground, the rule is that so long as the Legislature “lays down a policy and a standard is established by the statute” there is no undue delegation.

Republic Act No. 51 in authorizing the President of the Philippines, among others, to make reforms and changes in government-controlled corporations, lays down a standard and policy that the purpose shall be to meet the exigencies attendant upon the establishment of the free and independent government of the Philippines and to promote simplicity, economy and efficiency in their operations.


Cervantes vs Auditor General Case Digest

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