ALYSSA COLEEN F.

ESTERA SPL G01

11581948

QUESTION: Based on Constitution or Special Penal Laws, did he violate any law? Why or why not?

Yes. Under the Article VII, Section 13 of the 1987 Constitution, mere ownership of stock certificates is
prohibited by the Constitution. This is a special section on “conflict of interest” which covers only the top
members of the Executive Department. As stated:

“Sec. 13. The President, Vice-President, the Member of the Cabinet, and their deputies
or assistants shall not, unless otherwise provided in this Constitution, hold any other
office or employment during their tenure. They shall not, during said tenure, directly
or indirectly, practice any other profession, participate in any business, or be
financially interested in any contract with, or in any franchise, or special privilege
granted by the Government or any subdivision, agency, or instrumentality thereof,
including government-owned or controlled corporations, or their subsidiaries. They
shall strictly avoid conflict of interest in the conduct of their office.

The spouse and relatives by consanguinity or affinity within the fourth civil degree of
the President shall not, during his tenure, be appointed as Members of the
Constitutional Commissions, or the Office of the Ombudsman, or as Secretaries,
Undersecretaries, chairmen or heads of bureaus or offices, including government-
owned or controlled corporations and their subsidiaries.”

Calida opposed this and claimed that “the limits imposed on Cabinet members as stipulated in Article VII,
Section 13 of the1987 Constitution should not be applied to him ‘for the simple reason that he is not a
member of the Cabinet, although he is conferred Cabinet rank’ under the law.”1

Section 3 of the Republic Act No. 9417 or also known as An Act To Strengthen the Office of the Solicitor
General by expanding and streamlining its Bureaucracy, upgrading employee skills and augmenting
benefits, and appropriating funds therefor and for other purposes defines the role of a Solicitor General as:

SEC. 3. Standards. - The Solicitor General shall have cabinet rank and the same
qualifications for appointment, rank, prerogatives, salaries, allowances, benefits and
privileges as the Presiding Justice of the Court of Appeals; an Assistant Solicitor
General, those of an Associate Justice of the Court of Appeals.

SolGen Calida therefore is considered as a cabinet rank which means that a he falls under the
prohibition stated in Sec 13, Art. VII of the 1987 Consitution

The pertinent provision, in the case of SolGen Calida, is the second sentence which states:

They shall not, during said tenure, directly or indirectly…be financially interested in
any contract with, or in any franchise, or special privilege granted by the Government
or any subdivision, agency, or instrumentality thereof, including government-owned or
controlled corporations, or their subsidiaries.

1 Robles, Rasisa, OPINION: Yes, Solicitor General Calida IS violating the Constitution. Here's the proof, June 1, 2018,

https://news.abs-cbn.com/opinions/06/01/18/opinion-yes-solicitor-general-calida-is-violating-the-constitution-heres-the-proof.
Section 13 clearly defines what “conflict of interest” means for the President, the Vice President and the
President’s Cabinet officials down to Cabinet deputies or assistants.

This clause clearly bans Calida’s stock ownership in VISAI. Even if he divests but his wife and children
remain in the company, that still gives him an “indirect” financial interest.

This clause clearly bans VISAI from entering into a contract with any government entity.

However, Calida continued to own 60% of the company as of September 2016, according to Rappler based
on Securities and Exchange Commission records.

This provision was made to prevent the public officials enumerated from cornering such contracts for
themselves and their families.

Under Republic Act 6713 or the Code of Conduct and Ethical Standards for Public Officials and Employees,
non-divestment is punishable by not more than P5,000, not more than five years in jail and “disqualification
to hold public office.”

RA 6173 states that government officials “…shall not, during said tenure, directly or indirectly, practice
any other profession, participate in any business, or be financially interested in any contract with, or in any
franchise, or special privilege granted by the Government or any subdivision, agency, or instrumentality
thereof, including government-owned or controlled corporations or their subsidiaries. They shall strictly
avoid conflict of interest in the conduct of their office.”