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VFP vs.

Reyes Facts: Petitioner Veterans Federation of the Philippines (VFP) is a corporate body organized under Republic Act No. 2640. Sometime in August 2002, petitioner received a letter from Undersecretary of the Department of National Defense (DND) to conduct Management Audit of VFP pursuant to RA 2640, where it stated that VFP is under the supervision and control of the Secretary of National Defense. Petitioner complained about the broadness of audit and requested suspension until issues are threshed out, which was subsequently denied by DND. As a result, petitioner sought relief under Rule 65 assailing that it is a private non-government corporation.

Issue: Whether or not veterans federation created by law is a public office, considering that it does not possess a portion of the sovereign functions of the government and considering further that, it has no budgetary appropriation from DBM and that its funds come from membership dues.

Ruling: Yes, petitioner is a public corporation. In Laurel v. Desierto, public office is defined as the right, authority and duty, created and conferred by law, by which, for a given period, is invested with some portion of the sovereign functions of the government, to be exercised for the benefit of the public. In the instant case, the functions of VFP the protection of the interests of war veterans which promotes social justice and reward patriotism certainly fall within the category of sovereign functions. The fact that VFP has no budgetary appropriation is only a product of erroneous application of the law by public officers in the DBM which will not bar subsequent correct application. Hence, placing it under the control and supervision of DND is proper.