Philippine Society for the Prevention of Cruelty to Animals vs

Commission on Audit
G.R. No. 169752
September 25, 2007
Facts:
PSPCA was incorporated as a juridical entity by virtue of Act No. 1285 by the Philippine
Commission in order to enforce laws relating to the cruelty inflicted upon animals and for the
protection of and to perform all things which may tend to alleviate the suffering of animals
and promote their welfare.
In order to enhance its powers, PSPCA was initially imbued with (1) power to apprehend
violators of animal welfare laws and (2) share 50% of the fines imposed and collected
through its efforts pursuant to the violations of related laws.
However, Commonwealth Act No. 148 recalled the said powers. President Quezon then
issued Executive Order No. 63 directing the Commission of Public Safety, Provost Marshal
General as head of the Constabulary Division of the Philippine Army, Mayors of chartered
cities and every municipal president to detail and organize special officers to watch, capture,
and prosecute offenders of criminal-cruelty laws.
On December 1, 2003, an audit team from the Commission on Audit visited petitioners
office to conduct a survey. PSPCA demurred on the ground that it was a private entity and
not under the CoAs jurisdiction, citing Sec .2(1), Art. IX of the Constitution.

Issues:
WON the PSPCA is subject to CoAs Audit Authority.
Held:
No.

The charter test cannot be applied. It is predicated on the legal regime established by the
1935 Constitution, Sec.7, Art. XIII. Since the underpinnings of the charter test had been
introduced by the 1935 Constitution and not earlier, the test cannot be applied to PSPCA
which was incorporated on January 19, 1905. Laws, generally, have no retroactive
effect unless the contrary is provided. There are a few exceptions: (1) when expressly
provided; (2) remedial statutes; (3) curative statutes; and (4) laws interpreting others.
None of the exceptions apply in the instant case.
The mere fact that a corporation has been created by a special law doesnt necessarily
qualify it as a public corporation. At the time PSPCA was formed, the Philippine Bill of 1902
was the applicable law and no proscription similar to the charter test can be found therein.
There was no restriction on the legislature to create private corporations in 1903. The
amendments introduced by CA 148 made it clear that PSPCA was a private corporation, not
a government agency.
PSPCAs charter shows that it is not subject to control or supervision by any agency of the
State. Like all private corporations, the successors of its members are determined
voluntarily and solely by the petitioner, and may exercise powers generally accorded to
private corporations.
PSPCAs employees are registered and covered by the SSS at the latters initiative and not
through the GSIS.
The fact that a private corporation is impressed with public interest does not
make the entity a public corporation. They may be considered quasi-public
corporations which areprivate corporations that render public service, supply
public wants and pursue other exemplary objectives. The true criterion to
determine whether a corporation is public or private is found in the totality of
the relation of the corporate to the State. It is public if it is created by the latters own
agency or instrumentality, otherwise, it is private.