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Bengzon Jr vs Senate Blue Ribbon Committee GR No 89914 20 The Senate Minority Floor Leader Enrile delivered a speech before

November 1991 the Senate on the alleged take-over personal privilege before the
Senate on the alleged "takeover of SOLOIL Inc," the FlagShip of the
POSTED BY RACHEL CHAN IN CASE DIGESTS, CONSTITUTIONAL LAW I First Manila Management of Companies or FMMC by Ricardo Lopa
Facts: A petition for prohibition was filed to enjoin Senate Blue and called upon the Senate to look into the possible violation of the
Ribbon Committee from requiring the petitioners to testify and law in the case with regard to RA 3019 (Anti Graft and Corrupt
produce evidence at its inquiry into the alleged sale of the equity of Practices Act).
Benjamin “Kokoy” Romualdez to the Lopa Group in several
corporations. Earlier, Senator Juan Ponce Enrile had delivered a The Senate Blue Ribbon Committee (Committee on Accountability of

speech asking the Senate to look into possible violation of the Anti Public Officers [SBRC]) started its investigation on the matter.

Graft and Corrupt Practices Act because of the said purchase. Petitioners and Ricardo Lopa were subpoenaed by the SBRC to

Issue: Whether or not Senate has authority to conduct inquiry? appear before it and testify on what they know regarding the sale of

Decision: Petition granted. The 1987 Constitution expressly 36 corporations belonging to Benjamin Romualdez. Lopa and

recognizes the power of both houses of Congress to conduct Bengzon refused to testify, invoking their rights to due process,

inquiries in aid of legislation. Thus, the investigation must be “in and that their testimony may unduly prejudice the defendants and

aid of legislation in accordance with its duly published rules of petitioners in case before the Sandiganbayan.

procedure.” SBRC rejected the petitioner's plea to be excused from testifying

BENGZON VS SENATE BLUE RIBBON COMMITTEE EN BANC and the SBRC continued its investigation of the matter.

Posted by kaye lee on 5:46 PM The petitioners filed for prohibition with a prayer for TRO and/or

G.R. No. 89914 November 20, 1991 [Section 21, Article 6: Aids in injunctive relief, claiming that the SBRC in requiring their

Legislation: On Legislative Investigation] attendance and testimony, acted in excess of its jurisdiction and
legislative purpose.
FACTS:
The Supreme Court intervened upon a motion for reconsideration
PCGG filed with the Sandiganbayan against Benjamin Romualdez, et filed by one of the defendants of the civil case.
al for engaging in devices, schemes and stratagems to unjustly
enrich themselves at the expense of plaintiff and the Filipino ISSUES:

people. 1. Whether or not the court has jurisdiction over the case.
2. Whether or not the SBRC's inquiry has valid legislative purpose. Governing Inquiries in Aid of Legislation. Such inquiries may refer
to the implementation or re-examination of any law or in
3. whether or not the civil case of Sandiganbayan is beyond the
connection with any proposed legislation or the formulation of
power of the SBRC to inquire into.
future legislation. They may also extend to any and all matters
4. Whether or not the inquiry violates the petitioners' right to due vested by the Constitution in Congress and/or in the Senate alone.
process.
It appears, therefore, that the contemplated inquiry by respondent
RULING: Committee is not really "in aid of legislation" because it is not
related to a purpose within the jurisdiction of Congress, since the
1. Yes. In Angara vs Electoral Commission, the Constitution
aim of the investigation is to find out whether or not the relatives of
provided for an elaborate system of checks and balances to secure
the President or Mr. Ricardo Lopa had violated Section 5 RA No.
coordination in the workings of the various departments of the
3019, the "Anti-Graft and Corrupt Practices Act", a matter that
government. The Court has provided that the allocation of
appears more within the province of the courts rather than of the
constitutional boundaries is a task which the judiciary must
legislature.
perform under the Constitution. Moreover, as held in a recent
case, "(t)he political question doctrine neither interposes an 3. No. It cannot be said that the contemplated inquiry on the
obstacle to judicial determination of the rival claims. The subject of the privilege speech of Senator Juan Ponce Enrile, i.e., the
jurisdiction to delimit constitutional boundaries has been given to alleged sale of the 36 (or 39) corporations belonging to Benjamin
this Court. It cannot abdicate that obligation mandated by the 1987 "Kokoy" Romualdez to the Lopa Group is to be conducted pursuant
Constitution, although said provision by no means does away with to Senate Resolution No. 212 because, firstly, Senator Enrile did not
the applicability of the principle in appropriate cases." indict the PCGG, and, secondly, neither Mr. Ricardo Lopa nor the
herein petitioners are connected with the government but are
The Court is thus of the considered view that it has jurisdiction over
private citizens.
the present controversy for the purpose of determining the scope
and extent of the power of the Senate Blue Ribbon Committee to 4. Yes. The Constitution expressly provides that "the rights of
conduct inquiries into private affairs in purported aid of legislation. persons appearing in or affected by such inquiries shall be
respected.
2. No.
It should be emphasized that the constitutional restriction does not
The power to conduct formal inquiries or investigations is
call for the banning or prohibition of investigations where a
specifically provided for in Sec. 1 of the Senate Rules of Procedure
violation of a basis rights is claimed. It only requires that in the
course of the proceedings, the right of persons should be Senator Pimentel raised the issue on the need to publish the rules
respected. of the Senate Committee of the Whole.

What the majority opinion mandates is a blanket prohibition against ISSUES:


a witness testifying at all, simply because he is already facing
[1] Is Senator Madrigal, who filed the complaint against Senator
charges before the Sandiganbayan. To my mind, the Constitution
Villar, an indispensable party in this petition?
allows him to interpose objections whenever an incriminating
question is posed or when he is compelled to reveal his court [2] Is the petition premature for failure to observe the doctrine of
defenses, but not to refuse to take the witness stand completely. primary jurisdiction or prior resort?

CASE DIGEST: AQUILINO Q. PIMENTEL, JR., et al. v. SENATE [3] Is the transfer of the complaint against Senator Villar from the
COMMITTEE OF THE WHOLE Ethics Committee to the Senate Committee of the Whole violative of
Senator Villar's right to equal protection?
FACTS: On 8 October 2008, Senator Madrigal introduced P.S.
Resolution 706, which directed the Senate Ethics Committee to [4] Is the adoption of the Rules of the Ethics Committee as Rules of
investigate the alleged double insertion of P200 million by Senator the Senate Committee of the Whole violative of Senator Villar's right
Manny Villar into the C5 Extension Project. After the election of to due process and of the majority quorum requirement under Art.
Senator Juan Ponce Enrile as Senate President, the Ethics Committee VI, Section 16(2) of the Constitution?
was reorganized, but the Minority failed to name its representatives
[5] Is publication of the Rules of the Senate Committee of the Whole
to the Committee, prompting a delay in the investigation.
required for their effectivity?
Thereafter, the Senate adopted the Rules of the Ethics Committee.
HELD:
In another privilege speech, Senator Villar stated he will answer the
accusations before the Senate, and not with the Ethics Committee. [1] An indispensable party is a party who has an interest in the
Senator Lacson, then chairperson of the Ethics Committee, then controversy or subject matter that a final adjudication cannot be
moved that the responsibility of the Ethics Committee be made, in his absence, without injuring or affecting that interest. In
transferred to the Senate as a Committee of the Whole, which was this case, Senator Madrigal is not an indispensable party to the
approved by the majority. In the hearings of such Committee, petition before the Court. While it may be true that she has an
petitioners objected to the application of the Rules of the Ethics interest in the outcome of this case as the author of P.S. Resolution
Committee to the Senate Committee of the Whole. They also 706, the issues in this case are matters of jurisdiction and
questioned the quorum, and proposed amendments to the Rules.
procedure on the part of the Senate Committee of the Whole which provide for their publication before the rules can take effect. Hence,
can be resolved without affecting Senator Madrigal's interest. in this particular case, the Rules of the Senate Committee of the
Whole itself provide that the Rules must be published before the
[2] The doctrine of primary jurisdiction does not apply to this case.
Rules can take effect. Thus, even if publication is not required
The issues presented here do not require the expertise, specialized
under the Constitution, publication of the Rules of the Senate
skills and knowledge of respondent for their resolution. On the
Committee of the Whole is required because the Rules expressly
contrary, the issues here are purely legal questions which are within
mandate their publication. PARTIALLY GRANTED.
the competence and jurisdiction of the Court.
June 24, 2009
[3] While ordinarily an investigation about one of its members
alleged irregular or unethical conduct is within the jurisdiction of Senate vs. Ermita , GR 169777, April 20, 2006
the Ethics Committee, the Minority effectively prevented it from
FACTS:
pursuing the investigation when they refused to nominate their
members to the Ethics Committee. The referral of the investigation This is a petition for certiorari and prohibition proffer that the
to the Committee of the Whole was an extraordinary remedy President has abused power by issuing E.O. 464 “Ensuring
undertaken by the Ethics Committee and approved by a majority of Observance of the Principles of Separation of Powers, Adherence to
the members of the Senate, and not violative of the right to equal the Rule on Executive Privilege and Respect for the Rights of Public
protection. Officials Appearing in Legislative Inquiries in Aid of Legislation
Under the Constitution, and for Other Purposes”. Petitioners pray
[4] The adoption by the Senate Committee of the Whole of the Rules
for its declaration as null and void for being unconstitutional.
of the Ethics Committee does not violate Senator Villar's right to
due process. The Constitutional right of the Senate to promulgate In the exercise of its legislative power, the Senate of the Philippines,
its own rules of proceedings has been recognized and affirmed by through its various Senate Committees, conducts inquiries or
this Court in Section 16(3), Article VI of the Philippine Constitution, investigations in aid of legislation which call for, inter alia, the
which states: "Each House shall determine the rules of its attendance of officials and employees of the executive department,
proceedings." bureaus, and offices including those employed in Government
Owned and Controlled Corporations, the Armed Forces of the
[5] The Constitution does not require publication of the internal
Philippines (AFP), and the Philippine National Police (PNP).
rules of the House or Senate. Since rules of the House or the Senate
that affect only their members are internal to the House or Senate, The Committee of the Senate issued invitations to various officials
such rules need not be published,unless such rules expressly of the Executive Department for them to appear as resource
speakers in a public hearing on the railway project, others on the is privileged, it must so assert it and state the reason therefor and
issues of massive election fraud in the Philippine elections, wire why it must be respected.
tapping, and the role of military in the so-called “Gloriagate
The infirm provisions of E.O. 464, however, allow the executive
Scandal”.
branch to evade congressional requests for information without
Said officials were not able to attend due to lack of consent from need of clearly asserting a right to do so and/or proffering its
the President as provided by E.O. 464, Section 3 which requires all reasons therefor. By the mere expedient of invoking said
the public officials enumerated in Section 2(b) to secure the provisions, the power of Congress to conduct inquiries in aid of
consent of the President prior to appearing before either house of legislation is frustrated.
Congress.
NERI VS. SENATE COMMITTEE
ISSUE:
MARCH 28, 2013 ~ VBDIAZ
Is Section 3 of E.O. 464, which requires all the public officials,
ROMULO L. NERI, petitioner vs. SENATE COMMITTEE ON
enumerated in Section 2(b) to secure the consent of the President
ACCOUNTABILITY OF PUBLIC OFFICERS AND INVESTIGATIONS,
prior to appearing before either house of Congress, valid and
SENATE COMMITTEE ON TRADE AND COMMERCE, AND SENATE
constitutional?
COMMITTEE ON NATIONAL DEFENSE AND SECURITY
RULING:
G.R. No. 180643, March 25, 2008
No. The enumeration in Section 2 (b) of E.O. 464 is broad and is
FACTS: On April 21, 2007, the Department of Transportation and
covered by the executive privilege. The doctrine of executive
Communication (DOTC) entered into a contract with Zhong Xing
privilege is premised on the fact that certain information must, as a
Telecommunications Equipment (ZTE) for the supply of equipment
matter of necessity, be kept confidential in pursuit of the public
and services for the National Broadband Network (NBN) Project in
interest. The privilege being, by definition, an exemption from the
the amount of U.S. $ 329,481,290 (approximately P16 Billion
obligation to disclose information, in this case to Congress, the
Pesos). The Project was to be financed by the People’s Republic of
necessity must be of such high degree as to outweigh the public
China.
interest in enforcing that obligation in a particular case.
The Senate passed various resolutions relative to the NBN deal. In
Congress undoubtedly has a right to information from the
the September 18, 2007 hearing Jose de Venecia III testified that
executive branch whenever it is sought in aid of legislation. If the
executive branch withholds such information on the ground that it
several high executive officials and power brokers were using their HELD:
influence to push the approval of the NBN Project by the NEDA.
The communications are covered by executive privilege
Neri, the head of NEDA, was then invited to testify before the
The revocation of EO 464 (advised executive officials and
Senate Blue Ribbon. He appeared in one hearing wherein he was
employees to follow and abide by the Constitution, existing laws
interrogated for 11 hrs and during which he admitted that Abalos
and jurisprudence, including, among others, the case of Senate v.
of COMELEC tried to bribe him with P200M in exchange for his
Ermita when they are invited to legislative inquiries in aid of
approval of the NBN project. He further narrated that he informed
legislation.), does not in any way diminish the concept of executive
President Arroyo about the bribery attempt and that she instructed
privilege. This is because this concept has Constitutional
him not to accept the bribe.
underpinnings.
However, when probed further on what they discussed about the
The claim of executive privilege is highly recognized in cases where
NBN Project, petitioner refused to answer, invoking “executive
the subject of inquiry relates to a power textually committed by the
privilege”. In particular, he refused to answer the questions on:
Constitution to the President, such as the area of military and
(a) whether or not President Arroyo followed up the NBN Project, foreign relations. Under our Constitution, the President is the
repository of the commander-in-chief, appointing, pardoning, and
(b) whether or not she directed him to prioritize it, and
diplomatic powers. Consistent with the doctrine of separation of
(c) whether or not she directed him to approve. powers, the information relating to these powers may enjoy greater
confidentiality than others.
He later refused to attend the other hearings and Ermita sent a
letter to the senate averring that the communications between GMA Several jurisprudence cited provide the elements of presidential
and Neri are privileged and that the jurisprudence laid down in communications privilege:
Senate vs Ermita be applied. He was cited in contempt of
1) The protected communication must relate to a “quintessential
respondent committees and an order for his arrest and detention
and non-delegable presidential power.”
until such time that he would appear and give his testimony.
2) The communication must be authored or “solicited and received”
ISSUE:
by a close advisor of the President or the President himself. The
Are the communications elicited by the subject three (3) questions judicial test is that an advisor must be in “operational proximity”
covered by executive privilege? with the President.
3) The presidential communications privilege remains a qualified the privilege and of the unavailability of the information elsewhere
privilege that may be overcome by a showing of adequate need, by an appropriate investigating authority.
such that the information sought “likely contains important
Respondent Committees further contend that the grant of
evidence” and by the unavailability of the information elsewhere by
petitioner’s claim of executive privilege violates the constitutional
an appropriate investigating authority.
provisions on the right of the people to information on matters of
In the case at bar, Executive Secretary Ermita premised his claim of public concern.50 We might have agreed with such contention if
executive privilege on the ground that the communications elicited petitioner did not appear before them at all. But petitioner made
by the three (3) questions “fall under conversation and himself available to them during the September 26 hearing, where
correspondence between the President and public officials” he was questioned for eleven (11) hours. Not only that, he
necessary in “her executive and policy decision-making process” expressly manifested his willingness to answer more questions
and, that “the information sought to be disclosed might impair our from the Senators, with the exception only of those covered by his
diplomatic as well as economic relations with the People’s Republic claim of executive privilege.
of China.” Simply put, the bases are presidential communications
The right to public information, like any other right, is subject to
privilege and executive privilege on matters relating to diplomacy
limitation. Section 7 of Article III provides:
or foreign relations.
The right of the people to information on matters of public concern
Using the above elements, we are convinced that, indeed, the
shall be recognized. Access to official records, and to documents,
communications elicited by the three (3) questions are covered by
and papers pertaining to official acts, transactions, or decisions, as
the presidential communications privilege. First, the
well as to government research data used as basis for policy
communications relate to a “quintessential and non-delegable
development, shall be afforded the citizen, subject to such
power” of the President, i.e. the power to enter into an executive
limitations as may be provided by law.
agreement with other countries. This authority of the President to
enter into executive agreements without the concurrence of the AKBAYAN vs. Aquino G.R. No. 170516, July 16, 2008
Legislature has traditionally been recognized in Philippine
Petitioner: AKBAYAN Citizens Action Party (AKBAYAN), Pambansang
jurisprudence. Second, the communications are “received” by a
Katipunan ng mga Samahan sa Kanayunan (PKSK), Alliance of
close advisor of the President. Under the “operational proximity”
Progressive Labor (APL), Vicente A. Fabe, Angelito R. Mendoza,
test, petitioner can be considered a close advisor, being a member
Manuel P. Quiambao, Rose Beatrix Cruz-Angeles, Cong. Lorenzo R.
of President Arroyo’s cabinet. And third, there is no adequate
Tanada III, Cong. Mario Joyo Aguja, Cong. Loreta Ann P. Rosales,
showing of a compelling need that would justify the limitation of
Cong. Ana Theresia Hontiveros-Baraquel, Cong. Emmanuel Joel J. Whether or not the President can validly exclude Congress,
Villanueva. exercising its power of inquiry and power to concur in treaties,
from the negotiation process.
Respondents: Thomas G. Aquino, in his capacity as Undersecretary
of the Department of Trade and Industry (DTI), et. al. Discussion:

Facts: Standing

Petitioners, non-government organizations, In a petition anchored upon the right of the people to information
Congresspersons, citizens and taxpayers requested, via the petition on matters of public concern, which is a public right by its very
for mandamus and prohibition, to obtain from respondents the full nature, petitioners need not show that they have any legal or
text of the Japan-Philippines Economic Partnership Agreement special interest in the result, it being sufficient to show that they
(JPEPA) including the Philippine and Japanese offers submitted are citizens and, therefore, part of the general public which
during the negotiation process and all pertinent attachments and possesses the right. As the present petition is anchored on the
annexes thereto. The Congress, through the House Committee right to information and petitioners are all suing in their capacity as
called for an inquiry into the JPEPA, but at the same time, the citizens and groups of citizens including petitioners-members of
Executive refused to give them the said copies until the negotiation the House of Representatives who additionally are suing in their
was completed. capacity as such, the standing of petitioners to file the present suit
is grounded in jurisprudence.
JPEPA was the bilateral free trade agreement entered between the
Philippine government with Japan, concerned with trade in goods, From the nature of the JPEPA as an international trade agreement, it
rules of origin, customs procedures, paperless trading, trade in is evident that the Philippine and Japanese offers submitted during
services, investment, intellectual property rights, government the negotiations towards its execution are matters of public
procurement, movement of natural persons, cooperation, concern. This, respondents do not dispute. They only claim that
competition policy, mutual recognition, dispute avoidance and diplomatic negotiations are covered by the doctrine of executive
settlement, improvement of the business environment, and general privilege, thus constituting an exception to the right to information
and final provisions. and the policy of full public disclosure.

Issue: “Showing of Need” Test

Whether or not petitioners have legal standing to request for the In executive privilege controversies, the requirement that parties
full text of JPEPA. present a “sufficient showing of need” only means, in substance,
that they should show a public interest in favor of disclosure As to the power to negotiate treaties, the constitutional basis
sufficient in degree to overcome the claim of privilege. Verily, the thereof is Section 21 of Article VII – the article on the Executive
Court in such cases engages in a balancing of interests. Such a Department.
balancing of interests is certainly not new in constitutional
While the power then to fix tariff rates and other taxes clearly
adjudication involving fundamental rights.
belongs to Congress, and is exercised by the President only be
However, when the Executive has – as in this case – invoked the delegation of that body, it has long been recognized that the power
privilege, and it has been established that the subject information to enter into treaties is vested directly and exclusively in the
is indeed covered by the privilege being claimed, can a party President, subject only to the concurrence of at least two-thirds of
overcome the same by merely asserting that the information being all the Members of the Senate for the validity of the treaty. In this
demanded is a matter of public concern, without any further light, the authority of the President to enter into trade agreements
showing required? Certainly not, for that would render the doctrine with foreign nations provided under P.D. 1464 may be interpreted
of executive privilege of no force and effect whatsoever as a as an acknowledgment of a power already inherent in its office. It
limitation on the right to information, because then the sole test in may not be used as basis to hold the President or its
such controversies would be whether an information is a matter of representatives accountable to Congress for the conduct of treaty
public concern. negotiations.

Treaty-making power of the President This is not to say, of course, that the President’s power to enter
into treaties is unlimited but for the requirement of Senate
concurrence, since the President must still enure that all treaties
Petitioners argue that the President cannot exclude Congress from will substantively conform to all the relevant provisions of the
the JPEPA negotiations since whatever power and authority the Constitution.
President has to negotiate international trade agreements is derived
It follows from the above discussion that Congress, while
only by delegation of Congress, pursuant to Article VI, Section 28(2)
possessing vast legislative powers, may not interfere in the field of
of the Constitution and Sections 401 and 402 of Presidential Decree
treaty negotiations. While Article VII, Section 21 provides for Senate
No. 1464.
concurrence, such pertains only to the validity of the treaty under
The subject of Article VI Section 28(2) of the Constitution is not the consideration, not to the conduct of negotiations attendant to its
power to negotiate treaties and international agreements, but the conclusion. Moreover, it is not even Congress as a while that has
power to fix tariff rates, import and export quotas, and other taxes.
been given the authority to concur as a means of checking the since it cannot be interpreted as a waiver of the privilege on the
treaty-making power of the President, but only the Senate. part of the Executive branch.

Thus, as in the case of petitioners suing in their capacity as private For reasons already explained, this Decision shall not be
citizens, petitioners-members of the House of Representatives fail interpreted as departing from the ruling in Senate v. Ermita that
to present a “sufficient showing of need” that the information executive privilege should be invoked by the President or through
sought is critical to the performance of the functions of Congress, the Executive Secretary by order of the President.
functions that do not include treaty-negotiation.
Pork barrel system is unconstitutional - SC
Held:
Unconstitutionality of the Pork Barrel System. -
The petition was dismissed.
G.R. No. 208566/G.R. No. 208493/G.R. No. 209251. November 11,
Petitioner’s demand to be furnished with a copy of the full text of 2013
the JPEPA has become moot and academic, it having been made
Greco Antonious Beda B. Belgica, et al. Vs. Hon. Executive Secretary
accessible to the public since September 11, 2006. As for their
Paquito N. Ochoa, Jr, et al./Social Justice Society (SJS) President
demand for copies of the Philippine and Japanese offers submitted
Samson S. Alcantara Vs. Hon. Franklin M. Drilon, etc., et al./Pedrito
during the JPEPA negotiations, the same must be denied,
M. Nepomuceno, etc. Vs. President Benigno Simeon C. Aquino III, et
respondents claim of executive privilege being valid.
al.
Diplomatic negotiations have, since the Court promulgated its
Concurring Opinion - C.J. Sereno, J. Carpio, J. Leonen.
Resolution in PMPF v. Manglapus on September 13, 1988, been
recognized as privileged in this jurisdiction and the reasons Concurring and Dissenting Opinion - J. Brion.
proffered by petitioners against the application of the ruling therein
"x x x.
to the present case have not persuaded the Court. Moreover,
petitioners both private citizens and members of the House of The Issues Before the Court -
Representatives have failed to present a sufficient showing of need
Based on the pleadings, and as refined during the Oral Arguments,
to overcome the claim of privilege in this case.
the
That the privilege was asserted for the first time in respondents
following are the main issues for the Court‘s resolution:
Comment to the present petition, and not during the hearings of
the House Special Committee on Globalization, is of no moment, I. Procedural Issues.
Whether or not (a) the issues raised in the consolidated petitions 1993, relating to the Presidential Social Fund, are unconstitutional
involve an actual and justiciable controversy; (b) the issues raised in insofar as they constitute undue delegations of legislative power.
the consolidated petitions are matters of policy not subject to
These main issues shall be resolved in the order that they have
judicial review; (c) petitioners have legal standing to sue; and (d)
been
the Court‘s Decision dated August 19, 1994 in G.R. Nos. 113105,
113174, 113766, and 113888, entitled ―Philippine Constitution stated. In addition, the Court shall also tackle certain ancillary
Association v. Enriquez‖114 (Philconsa) and Decision dated April issues as
24, 2012 in G.R. No. 164987, entitled ―Lawyers Against Monopoly
prompted by the present cases.
and Poverty v. Secretary of Budget and Management‖115 (LAMP)
bar the relitigation of the issue of constitutionality of the ―Pork x x x.
Barrel System‖ under the principles of res judicata and stare
WHEREFORE, the petitions are PARTLY GRANTED. In view of the
decisis.
constitutional violations discussed in this Decision, the Court
II. Substantive Issues on the “Congressional Pork Barrel.” hereby

Whether or not the 2013 PDAF Article and all other Congressional declares as UNCONSTITUTIONAL:
Pork Barrel Laws similar thereto are unconstitutional considering
(a) the entire 2013 PDAF Article;
that they violate the principles of/constitutional provisions on (a)
separation of powers; (b) non-delegability of legislative power; (c)
checks and balances; (d) accountability; (e) political dynasties; and
(b) all legal provisions of past and present Congressional Pork
(f) local autonomy.
Barrel Laws, such as the previous PDAF and CDF Articles and the
III. Substantive Issues on the “Presidential Pork Barrel.” various Congressional Insertions, which authorize/d legislators –
whether individually or collectively organized into committees – to
Whether or not the phrases (a) ―and for such other purposes as
intervene, assume or participate in any of the various post-
may be hereafter directed by the President‖ under Section 8 of PD
enactment stages of the budget execution, such as but not limited
910,116 relating to the Malampaya Funds, and (b) ―to finance the
to the areas of project identification, modification and revision of
priority infrastructure development projects and to finance the
project identification, fund release and/or fund realignment,
restoration of damaged or destroyed facilities due to calamities, as
unrelated to the power of congressional oversight;
may be directed and authorized by the Office of the President of
the Philippines‖ under Section 12 of PD 1869, as amended by PD
(c) all legal provisions of past and present Congressional Pork covered by Notice of Cash Allocations (NCAs) but only by Special
Barrel Laws, such as the previous PDAF and CDF Articles and the Allotment Release Orders (SAROs), whether obligated or not, are
various Congressional Insertions, which conferred personal, lump- hereby ENJOINED. The remaining PDAF funds covered by this
sum allocations to legislators from which they are able to fund permanent injunction shall not be disbursed/released but instead
specific projects which they themselves determine; reverted to the unappropriated surplus of the general fund, while
the funds under the Malampaya Funds and the Presidential Social
(d) all informal practices of similar import and effect, which the
Fund shall remain therein to be utilized for their respective special
Court similarly deems to be acts of grave abuse of discretion
purposes not otherwise declared as unconstitutional.
amounting to lack or excess of jurisdiction; and
On the other hand, due to improper recourse and lack of proper
(e) the phrases (1) ―and for such other purposes as may be
substantiation, the Court hereby DENIES petitioners‘ prayer seeking
hereafter directed by the President‖ under Section 8 of Presidential
that
Decree No. 910 and (2) ―to finance the priority infrastructure
development projects under Section 12 of Presidential Decree No. the Executive Secretary and/or the Department of Budget and
1869, as amended by Presidential Decree No. 1993, for both failing Management be ordered to provide the public and the Commission
the sufficient standard test in violation of the principle of non- on Audit complete lists/schedules or detailed reports related to the
delegability of legislative power. availments and utilization of the funds subject of these cases.

Accordingly, the Court‘s temporary injunction dated September 10, Petitioners‘ access to official documents already available and of
2013 is hereby declared to be PERMANENT. Thus, the public record which are related to these funds must, however, not
disbursement/release of the remaining PDAF funds allocated for be prohibited but merely subjected to the custodian‘s reasonable
the year 2013, as well as for all previous years, and the funds regulations or any valid statutory prohibition on the same. This
sourced from (1) the Malampaya Funds under the phrase ―and for denial is without prejudice to a proper mandamus case which they
such other purposes as may be hereafter directed by the President‖ or the Commission on Audit may choose to pursue through a
pursuant to Section 8 of Presidential Decree No. 910, and (2) the separate petition.
Presidential Social Fund under the phrase ―to finance the priority
The Court also DENIES petitioners' prayer to order the inclusion of
infrastructure development projects‖ pursuant to Section 12 of
the funds subject of these cases in the budgetary deliberations of
Presidential Decree No. 1869, as amended by Presidential Decree
No. 1993, which are, at the time this Decision is promulgated, not
Congress as the same is a matter left to the prerogative of the Since 2011, the allocation of the PDAF has been done in the
political branches of government. following manner:

Finally, the Court hereby DIRECTS all prosecutorial organs of the a. P70 million: for each member of the lower house; broken down
to – P40 million for “hard projects” (infrastructure projects like
government to, within the bounds of reasonable dispatch,
roads, buildings, schools, etc.), and P30 million for “ soft projects”
investigate and accordingly prosecute all government officials
(scholarship grants, medical assistance, livelihood programs, IT
and/or private individuals for possible criminal offenses related to
development, etc.);
the irregular, improper and/or unlawful disbursement/utilization of
all funds under the Pork Barrel System. b. P200 million: for each senator; broken down to – P100 million
for hard projects, P100 million for soft projects;
This Decision is immediately executory but prospective in effect.
c. P200 million: for the Vice-President; broken down to – P100
SO ORDERED.
million for hard projects, P100 million for soft projects.
Belgica et. Al., vs Ochoa et. Al., GR 208566 November 19, 2013
The PDAF articles in the GAA do provide for realignment of
710 SCRA 1 – Political Law – Constitutional Law – Local Government funds whereby certain cabinet members may request for the
– Invalid Delegation realignment of funds into their department provided that the
request for realignment is approved or concurred by the legislator
Legislative Department – Invalid Delegation of Legislative Power
concerned.
This case is consolidated with G.R. No. 208493 and G.R. No.
Presidential Pork Barrel
209251.
The president does have his own source of fund albeit not included
The so-called pork barrel system has been around in the
in the GAA. The so-called presidential pork barrel comes from two
Philippines since about 1922. Pork Barrel is commonly known as
sources: (a) the Malampaya Funds, from the Malampaya Gas Project
the lump-sum, discretionary funds of the members of the
– this has been around since 1976, and (b) the Presidential Social
Congress. It underwent several legal designations from
Fund which is derived from the earnings of PAGCOR – this has been
“Congressional Pork Barrel” to the latest “Priority Development
around since about 1983.
Assistance Fund” or PDAF. The allocation for the pork barrel is
integrated in the annual General Appropriations Act(GAA). Pork Barrel Scam Controversy
Ever since, the pork barrel system has been besieged by allegations under the pork barrel system, what’s happening was that, after
of corruption. In July 2013, six whistle blowers, headed by Benhur the GAA, itself a law, was enacted, the legislators themselves
Luy, exposed that for the last decade, the corruption in the pork dictate as to which projects their PDAF funds should be allocated to
barrel system had been facilitated by Janet Lim Napoles. Napoles – a clear act of implementing the law they enacted – a violation of
had been helping lawmakers in funneling their pork barrel funds the principle of separation of powers. (Note in the older case
into about 20 bogus NGO’s (non-government organizations) of PHILCONSA vs Enriquez, it was ruled that pork barrel, then called
which would make it appear that government funds are being used as CDF or the Countrywide Development Fund, was constitutional
in legit existing projects but are in fact going to “ghost” projects. insofar as the legislators only recommend where their pork barrel
An audit was then conducted by the Commission on Audit and the funds go).
results thereof concurred with the exposes of Luy et al.
This is also highlighted by the fact that in realigning the PDAF, the
Motivated by the foregoing, Greco Belgica and several others, filed executive will still have to get the concurrence of the legislator
various petitions before the Supreme Court questioning the concerned.
constitutionality of the pork barrel system.
b. Non-delegability of Legislative Power
ISSUES:
As a rule, the Constitution vests legislative power in Congress
I. Whether or not the congressional pork barrel system is alone. (The Constitution does grant the people legislative power but
constitutional. only insofar as the processes of referendum and initiative are
concerned). That being, legislative power cannot be delegated by
II. Whether or not presidential pork barrel system is constitutional.
Congress for it cannot delegate further that which was delegated to
HELD: it by the Constitution.

I. No, the congressional pork barrel system is unconstitutional. It is Exceptions to the rule are:
unconstitutional because it violates the following principles:
(i) delegated legislative power to local government units but this
a. Separation of Powers shall involve purely local matters;

As a rule, the budgeting power lies in Congress. It regulates the (ii) authority of the President to, by law, exercise powers necessary
release of funds (power of the purse). The executive, on the other and proper to carry out a declared national policy in times of war or
hand, implements the laws – this includes the GAA to which the other national emergency, or fix within specified limits, and subject
PDAF is a part of. Only the executive may implement the law but to such limitations and restrictions as Congress may impose, tariff
rates, import and export quotas, tonnage and wharfage dues, and localities. But with the PDAF, particularly on the part of the
other duties or imposts within the framework of the national members of the house of representatives, what’s happening is that
development program of the Government. a congressman can either bypass or duplicate a project by the LDC
and later on claim it as his own. This is an instance where the
In this case, the PDAF articles which allow the individual legislator
national government (note, a congressman is a national officer)
to identify the projects to which his PDAF money should go to is a
meddles with the affairs of the local government – and this is
violation of the rule on non-delegability of legislative power. The
contrary to the State policy embodied in the Constitution on local
power to appropriate funds is solely lodged in Congress (in the two
autonomy. It’s good if that’s all that is happening under the pork
houses comprising it) collectively and not lodged in the individual
barrel system but worse, the PDAF becomes more of a personal
members. Further, nowhere in the exceptions does it state that the
fund on the part of legislators.
Congress can delegate the power to the individual member of
Congress. II. Yes, the presidential pork barrel is valid.

c. Principle of Checks and Balances The main issue raised by Belgica et al against the presidential pork
barrel is that it is unconstitutional because it violates Section 29 (1),
One feature in the principle of checks and balances is the power of
Article VI of the Constitution which provides:
the president to veto items in the GAA which he may deem to be
inappropriate. But this power is already being undermined because No money shall be paid out of the Treasury except in pursuance of
of the fact that once the GAA is approved, the legislator can now an appropriation made by law.
identify the project to which he will appropriate his PDAF. Under
Belgica et al emphasized that the presidential pork comes from the
such system, how can the president veto the appropriation made by
earnings of the Malampaya and PAGCOR and not from any
the legislator if the appropriation is made after the approval of the
appropriation from a particular legislation.
GAA – again, “Congress cannot choose a mode of budgeting which
effectively renders the constitutionally-given power of the President The Supreme Court disagrees as it ruled that PD 910, which created
useless.” the Malampaya Fund, as well as PD 1869 (as amended by PD 1993),
which amended PAGCOR’s charter, provided for the appropriation,
d. Local Autonomy
to wit:
As a rule, the local governments have the power to manage their
(i) PD 910: Section 8 thereof provides that all fees, among others,
local affairs. Through their Local Development Councils (LDCs), the
collected from certain energy-related ventures shall form part of a
LGUs can develop their own programs and policies concerning their
special fund (the Malampaya Fund) which shall be used to further
finance energy resource development and for other purposes which appropriation were subject to the approval of a joint
the President may direct; committee elected by the Senate and the House of
Representatives.
(ii) PD 1869, as amended: Section 12 thereof provides that a part of
PAGCOR’s earnings shall be allocated to a General Fund (the • In 1950, members of Congress, by virtue of being
Presidential Social Fund) which shall be used in government representatives of the people, also became involved in
infrastructure projects. project identification.

These are sufficient laws which met the requirement of Section 29, • The pork barrel system was temporarily discontinued when
Article VI of the Constitution. The appropriation contemplated martial law was declared.
therein does not have to be a particular appropriation as it can be a
• It reappeared in 1982 through an item in the General
general appropriation as in the case of PD 910 and PD 1869.
Appropriations Act (“GAA”) called “Support for Local
Belgica vs. Executive Secretary Ochoa (digest) Development Projects” (“SLDP”). SLDP started the giving of
lump-sum allocations to individual legislators. The SLDP
BELGICA, ET AL. VS. EXECUTIVE SECRETARY, ET AL. (G.R. NO.
also began to cover not only public works project or “hard
208566; SOCIAL JUSTICE SOCIETY VS. HON. FRANKLIN DRILON, ET
projects” but also covered “soft projects” such as those
AL. (G.R. NO. 208493); NEPOMUCENO VS. PRES. AQUINO (G.R. NO.
which would fall under education, health and livelihood.
209251) NOVEMBER 19, 2013
• After the EDSA People Power Revolution and the restoration
FACTS
of democracy, the pork barrel was revived through the
HISTORY of CONGRESSIONAL PORK BARREL “Mindanao Development Fund” and the “Visayas
Development Fund”.
• The term “pork barrel”, a political parlance of American-
English origin, refers to an appropriation of government • In 1990, the pork barrel was renamed “Countrywide
spending meant for localized projects and secured solely or Development Fund” (“CDF”). The CDF was meant to cover
primarily to bring money to a representative’s district. small local infrastructure and other priority community
projects.
• The earliest form of the pork barrel system is found in
Section 3 of Act 3044, otherwise known as the Public Works • CDF Funds were, with the approval of the President,
Act of 1922. Under this provision, release of funds and released directly to implementing agencies subject to the
realignment of unexpended portions of an item or submission of the required list of projects and activities.
Senators and congressmen could identify any kind of project Fund, (ii) Lingap Para sa Mahihirap Fund, and (iii)
from “hard projects” such as roads, buildings and bridges to Rural/Urban Development Infrastructure Program Fund. All
“soft projects” such as textbooks, medicines, and three contained a provision requiring prior consultation with
scholarships. members of Congress for the release of funds.

• In 1993, the CDF was further modified such that the release • In 2000, the Priority Development Assistance Fund (“PDAF”)
of funds was to be made upon the submission of the list of appeared in the GAA. PDAF required prior consultation with
projects and activities identified by individual the representative of the district before the release of
legislators. This was also the first time when the Vice- funds. PDAF also allowed realignment of funds to any
President was given an allocation. expense category except personal services and other
personnel benefits.
• The CDF contained the same provisions from 1994-1996
except that the Department of Budget and Management was • In 2005, the PDAF introduced the program menu concept
required to submit reports to the Senate Committee on which is essentially a list of general programs and
Finance and the House Committee on Appropriations implementing agencies from which a particular PDAF project
regarding the releases made from the funds. may be subsequently chosen by the identifying
authority. This was retained in the GAAs from 2006-2010.
• Congressional insertions (“CIs”) were another form of
congressional pork barrel aside from the CDF. Examples of • It was during the Arroyo administration when the formal
the CIs include the DepEd School Building Fund, the participation of non-governmental organizations in the
Congressional Initiative Allocations, and the Public Works implementation of PDAF projects was introduced.
Fund, among others.
• The PDAF articles from 2002-2010 were silent with respect
• The allocations for the School Building Fund were made to specific amounts for individual legislators.
upon prior consultation with the representative of the
• In 2011, the PDAF Article in the GAA contained an express
legislative district concerned and the legislators had the
statement on lump-sum amounts allocated for individual
power to direct how, where and when these appropriations
legislators and the Vice-President. It also contained a
were to be spent.
provision on realignment of funds but with the qualification
• In 1999, the CDF was removed from the GAA and replaced that it may be allowed only once.
by three separate forms of CIs: (i) Food Security Program
• The 2013 PDAF Article allowed LGUs to be identified as • In 2004, several concerned citizens sought the nullification
implementing agencies. Legislators were also allowed of the PDAF but the Supreme Court dismissed the petition
identify programs/projects outside of his legislative for lack of evidentiary basis regarding illegal misuse of PDAF
district. Realignment of funds and release of funds were in the form of kickbacks.
required to be favorably endorsed by the House Committee
• In July 2013, the National Bureau of Investigation probed the
on Appropriations and the Senate Committee on Finance, as
allegation that a syndicate defrauded the government of P10
the case may be.
billion using funds from the pork barrel of lawmakers and
MALAMPAYA FUNDS AND PRESIDENTIAL SOCIAL FUND various government agencies for scores of ghost projects.

• The use of the term pork barrel was expanded to include • In August 2013, the Commission on Audit released the
certain funds of the President such as the Malampaya Fund results of a three-year audit investigation detailing the
and the Presidential Social Fund (“PSF”). irregularities in the release of the PDAF from 2007 to 2009.

• The Malampaya Fund was created as a special fund under • Whistle-blowers also alleged that at least P900 million from
Section 8 of Presidential Decree (“PD”) No. 910 issued by the Malampaya Funds had gone into a dummy NGO.
President Ferdinand Marcos on March 22, 1976.
ISSUE/S
• The PSF was created under Section 12, Title IV of PD No.
PROCEDURAL ISSUES
1869, or the Charter of the Philippine Amusement and
Gaming Corporation (“PAGCOR”), as amended by PD No. • Whether or not (a) the issues raised in the consolidated
1993. The PSF is managed and administered by the petitions involve an actual and justiciable
Presidential Management Staff and is sourced from the controversy, (b) the issues raised are matters of policy not
share of the government in the aggregate gross earnings of subject to judicial review, (c) petitioners have legal standing
PAGCOR. to sue, (d) previous decisions of the Court bar the re-
litigation of the constitutionality of the Pork Barrel system.
PORK BARREL MISUSE
SUBSTANTIVE ISSUES
• In 1996, Marikina City Representative Romeo Candozo
revealed that huge sums of money regularly went into the • Whether or not the 2013 PDAF Article and all other
pockets of legislators in the form of kickbacks. Congressional Pork Barrel laws are unconstitutional for
violating the constitutional provisions on (a)separation of
powers, (b) non-delegability of legislative power, (c) checks definitive ruling on the system’s constitutionality to guide
and balances, (d) accountability, (e) political the bench, the bar and the public, and (d) the preparation
dynasties, (f) local autonomy. and passage of the national budget is an annual occurrence.

RULING (b) Political Question Doctrine is Inapplicable

PROCEDURAL ISSUES • The intrinsic constitutionality of the “Pork Barrel System” is


not an issue dependent upon the wisdom of the political
(a) There is an actual and justiciable controversy
branches of the government but rather a legal one which the
• There exists an actual and justiciable controversy in the Constitution itself has commanded the Court to act upon.
cases. The requirement of contrariety of legal rights is
• The 1987 Constitution expanded the concept of judicial
satisfied by the antagonistic positions of the parties
power such that the Supreme Court has the power to
regarding the constitutionality of the pork barrel system.
determine whether there has been grave abuse of discretion
• The case is ripe for adjudication since the challenged funds amounting to lack or excess of jurisdiction on the part of
and the laws allowing for their utilization are currently any branch or instrumentality on the part of the
existing and operational and thereby posing an immediate government.
or threatened injury to petitioners.
(c) Petitioners have legal standing to Sue
• The case is not moot as the proposed reforms on the PDAF
• Petitioners have legal standing by virtue of being taxpayers
and the abolition thereof does not actually terminate the
and citizens of the Philippines.
controversy on the matter. The President does not have
constitutional authority to nullify or annul the legal • As taxpayers, they are bound to suffer from the
existence of the PDAF. unconstitutional usage of public funds.

• The “moot and academic principle” cannot stop the Court • As citizens, the issues they have raised are matters of
from deciding the case considering that: (a) petitioners transcendental importance, of overreaching significance to
allege grave violation of the constitution, (b) the society, or of paramount public interest.
constitutionality of the pork barrel system presents a
(d) The Petition is not barred by previous cases
situation of exceptional character and is a matter of
paramount public interest, (c) there is a practical need for a
• The present case is not barred by the ruling in Philconsa vs. (a) The separation of powers between the Executive
Enriquez [1] because the Philconsa case was a limited and the Legislative Departments has been violated.
response to a separation of powers problem, specifically on
• The post-enactment measures including project
the propriety of conferring post-enactment identification
identification, fund release, and fund realignment are not
authority to Members of Congress.
related to functions of congressional oversight and, hence,
• On the contrary, the present cases involve a more holistic allow legislators to intervene and/or assume duties that
examination of (a) the inter-relation between the CDF and properly belong to the sphere of budget execution, which
the PDAF Articles with each other, and (b) the inter-relation belongs to the executive department.
of post-enactment measures contained within a particular
• Legislators have been, in one form or another, authorized to
CDF or PDAF article, including not only those related to the
participate in the various operational aspects of budgeting,
area of project identification but also to the areas of fund
including ―the evaluation of work and financial plans for
release and realignment.
individual activities and the ― regulation and release of
• Moreover, the Philconsa case was riddled with inherent funds in violation of the separation of powers principle.
constitutional inconsistencies considering that the authority
• Any provision of law that empowers Congress or any of its
to identify projects is an aspect of appropriation and the
members to play any role in the implementation or
power of appropriation is a form of legislative power
enforcement of the law violates the principle of separation
thereby lodged in Congress. This power cannot be exercised
of powers and is thus unconstitutional.
by individual members of Congress and the authority to
appropriate cannot be exercised after the GAA has already • That the said authority to identify projects is treated as
been passed. merely recommendatory in nature does not alter its
unconstitutional tenor since the prohibition covers any role
• The case of Lawyers Against Monopoly and Poverty vs.
in the implementation or enforcement of the law.
Secretary of Budget and Management[2] does not also bar
judgment on the present case because it was dismissed on a • Respondents also failed to prove that the role of the
procedural technicality and hence no controlling doctrine legislators is only recommendatory in nature. They even
was rendered. admitted that the identification of the legislator constitutes
a mandatory requirement before the PDAF can be tapped as
SUBSTANTIVE ISSUES ON CONGRESSIONAL PORK BARREL
a funding source.
(b)The principle of non-delegability of legislative powers ―budget within a budget which subverts the prescribed
has been violated procedure of presentment and consequently impairs the
President‘s power of item veto.
• The 2013 PDAF Article, insofar as it confers post-enactment
identification authority to individual legislators, violates the • It forces the President to decide between (a) accepting the
principle of non-delegability since said legislators are entire PDAF allocation without knowing the specific projects
effectively allowed to individually exercise the power of of the legislators, which may or may not be consistent with
appropriation, which – as settled in Philconsa – is lodged in his national agenda and (b) rejecting the whole PDAF to the
Congress. detriment of all other legislators with legitimate projects.

• That the power to appropriate must be exercised only • In fact, even without its post-enactment legislative
through legislation is clear from Section 29(1), Article VI of identification feature, the 2013 PDAF Article would remain
the 1987 Constitution which states that: ― No money shall constitutionally flawed since it would then operate as a
be paid out of the Treasury except in pursuance of an prohibited form of lump-sum appropriation. This is because
appropriation made by law. the appropriation law leaves the actual amounts and
purposes of the appropriation for further determination
• The legislators are individually exercising the power of
and, therefore, does not readily indicate a discernible item
appropriation because each of them determines (a) how
which may be subject to the President‘s power of item veto.
much of their PDAF fund would go to and (b) a specific
project or beneficiary that they themselves also determine. (d) The Congressional Pork Barrel partially prevents
accountability as Congress is incapable of checking itself or
(c) Checks and balances
its members.
• Under the 2013 PDAF Article, the amount of P24.79 Billion
• The fact that individual legislators are given post-enactment
only appears as a collective allocation limit since the said
roles in the implementation of the budget makes it difficult
amount would be further divided among individual
for them to become disinterested observers when
legislators who would then receive personal lump-sum
scrutinizing, investigating or monitoring the implementation
allocations and could, after the GAA is passed, effectively
of the appropriation law.
appropriate PDAF funds based on their own discretion.
• The conduct of oversight would be tainted as said
• This kind of lump-sum/post-enactment legislative
legislators, who are vested with post-enactment authority,
identification budgeting system fosters the creation of a
would, in effect, be checking on activities in which they • The Congressional Pork Barrel goes against the
themselves participate. constitutional principles on local autonomy since it allows
district representatives, who are national officers, to
• The concept of post-enactment authorization violates
substitute their judgments in utilizing public funds for local
Section 14, Article VI of the 1987 Constitution, which
development.
prohibits members of Congress to intervene in any matter
before any office of the Government, because it renders • The gauge of PDAF and CDF allocation/division is based
them susceptible to taking undue advantage of their own solely on the fact of office, without taking into account the
office. specific interests and peculiarities of the district the
legislator represents.
• The Court, however, cannot completely agree that the same
post-enactment authority and/or the individual legislator‘s • The allocation/division limits are clearly not based on
control of his PDAF per se would allow him to perpetuate genuine parameters of equality, wherein economic or
himself in office. geographic indicators have been taken into consideration.

• The use of his PDAF for re-election purposes is a matter • This concept of legislator control underlying the CDF and
which must be analyzed based on particular facts and on a PDAF conflicts with the functions of the various Local
case-to-case basis. Development Councils (“LDCs”) which are already legally
mandated to―assist the corresponding sanggunian in
(e) The constitutional provision regarding political dynasties
setting the direction of economic and social development,
is not self-executing.
and coordinating development efforts within its territorial
• Section 26, Article II of the 1987 Constitution, which jurisdiction.
provides that the state shall prohibit political dynasties as
• Considering that LDCs are instrumentalities whose functions
may be defined by law, is not a self-executing provision.
are essentially geared towards managing local affairs, their
• Since there appears to be no standing law which crystallizes programs, policies and resolutions should not be overridden
the policy on political dynasties for enforcement, the Court nor duplicated by individual legislators, who are national
must defer from ruling on this issue. officers that have no law-making authority except only
when acting as a body.
(f) The Congressional Pork Barrel violates constitutional
principles on local autonomy SUBSTANTIVE ISSUES ON PRESIDENTIAL PORK BARREL
(a) Section 8 of PD No. 910 and Section 12 of PD No. 1869 and authorized by the Office of the President of the
are valid appropriation laws. Philippines.

• For an appropriation law to be valid under Section 29 (1), (b) Section 8 of PD No. 910 and Section 12 of PD No. 1869
Article VI of the 1987 Constitution, which provides that “No constitutes undue delegation of legislation powers.
money shall be paid out of the Treasury except in pursuance
• The phrase “and for such other purposes as may be
of an appropriation made by law”, it is enough that (a) the
hereafter directed by the President” under Section 8 of PD
provision of law sets apart a determinate or determinable
910 constitutes an undue delegation of legislative power
amount of money and(b) allocates the same for a particular
insofar as it does not lay down a sufficient standard to
public purpose.
adequately determine the limits of the President‘s authority
• Section 8 of PD 910 is a valid appropriation law because it with respect to the purpose for which the Malampaya Funds
set apart a determinable amount: a Special Fund comprised may be used.
of ― all fees, revenues, and receipts of the [Energy
• This phrase gives the President wide latitude to use the
Development] Board from any and all sources.
Malampaya Funds for any other purpose he may direct and,
• It also specified a public purpose: energy resource in effect, allows him to unilaterally appropriate public funds
development and exploitation programs and projects of the beyond the purview of the law.
government and for such other purposes as may be
• This notwithstanding, it must be underscored that the rest
hereafter directed by the President.
of Section 8, insofar as it allows for the use of the
• Section 12 of PD No. 1869 is also a valid appropriation law Malampaya Funds ―to finance energy resource
because it set apart a determinable amount: [a]fter development and exploitation programs and projects of the
deducting five (5%) percent as Franchise Tax, the Fifty (50%) government, remains legally effective and subsisting.
percent share of the Government in the aggregate gross
• Section 12 of PD No. 1869 constitutes an undue delegation
earnings of [PAGCOR], or 60%[,] if the aggregate gross
of legislative powers because it lies independently
earnings be less thanP150,000,000.00.
unfettered by any sufficient standard of the delegating law.
• It also specified a public purpose: priority infrastructure
• The law does not supply a definition of “priority
development projects and x x x the restoration of damaged
infrastructure development projects” and hence, leaves the
or destroyed facilities due to calamities, as may be directed
President without any guideline to construe the same.
• The delimitation of a project as one of “infrastructure” is too “Sanchez, et. al. vs. Commission on Audit (COA).” The Highest
broad of a classification since the said term could pertain to Court, through Justice Tinga, explains, to wit-
any kind of facility.
“Sec. 25(5), Art. VI of the 1987 Constitution, in turn, provides:
G.R. No. 127545 April 23, 2008
Sec. 25(5) No law shall be passed authorizing any transfer of
ANDRES SANCHEZ, LEONARDO D. REGALA, RAFAEL D. BARATA, appropriations; However, the President, the President of the Senate,
NORMA AGBAYANI, and CESAR N. SARINO, petitioners, The Speaker of the House of Representatives, the Chief Justice of
vs. the Supreme Court, and the heads of Constitutional Commissions
COMMISSION ON AUDIT, respondent. may, by law, be authorized to augment any item in the general
appropriations law for their respective offices from savings in other
Facts:
items of their respective appropriations.
The 1987 Constitution has made the Commission on Audit (COA)
The deliberations of the Constitutional Commission are instructive
the guardian of public funds, vesting it with broad powers over all
as regards the extent of the President’s power to augment:
accounts pertaining to government revenue and expenditures and
the uses of public funds and property, including the exclusive MR. SARMENTO: I have one last question. Section 25, paragraph
authority to define the scope of its audit and examination, establish (5) authorizes the Chief Justice of the Supreme Court, the Speaker
the techniques and methods for such review, and promulgate of the House of Representatives, the President, the President of the
accounting and auditing rules and regulations.1 Its exercise of its Senate to augment any item in the General Appropriations Law. Do
general audit power is among the constitutional mechanisms that we have a limit in terms of percentage as to how much they should
give life to the check and balance system inherent in our form of augment any item in the General Appropriations Law?
government.2
MR. AZCUNA: The limit is not in percentage but “from savings.” So
The exercise of this power by the Department Auditor of the it is only to the extent of their savings.
Department of the Interior and Local Government (DILG) is the
Construing this provision, the Court ruled in the pre-eminent case
subject of the instant Petition for Review 3 dated 10 February 1997.
of Demetria v. Alba:
Prior to the disbursement acceleration program (DAP) cases, the
The prohibition to transfer an appropriation for one item to
essence, breadth and scope of “savings” and “augmentation” as
another was explicit and categorical under the 1973 Constitution.
referred to in the 1987 Philippine Constitution have already been
However, to afford the heads of the different branches of the
discussed by the Supreme Court (en banc) in the 2008 case of
government and those of the constitutional commissions same are to be taken, or whether or not the transfer is for the
considerable flexibility in the use of public funds and resources, the purpose of augmenting the item to which the transfer is to be
constitution allowed the enactment of a law authorizing the transfer made.
of funds for the purpose of augmenting an item from savings in
R.A. 7180 contains a similar provision on the President’s power to
another item in the appropriation concerned. The leeway granted
augment and provides the meaning of “savings” and
was thus limited. The purpose and conditions for which funds may
“augmentation,” thus:
be transferred were specified, i.e. transfer may be allowed for the
purpose of augmenting an item and such transfer may be made Sec. 17. Use of Savings. The President of the Philippines, the
only if there are savings from another item in the appropriation of President of the Senate, the Speaker of the House of
the government branch or constitutional body. [Emphasis supplied] Representatives, the Chief Justice of the Supreme Court, the Heads
of Constitutional Commissions under Article IX of the Constitution,
Issue; Whether or not par. 1, Sec. 44 of Presidential Decree No.
the Ombudsman and the Commission on Human Rights are hereby
1177 is unconstitutional?
authorized to augment any item in this Act for their respective
Thus, we declared unconstitutional par. 1, Sec. 44 of Presidential offices from savings in other items of their respective
Decree No. 1177 which authorized the President “to transfer any appropriations.
fund, appropriated for the different departments, bureaus, offices
xxx
and agencies of the Executive Department, which are included in
the General Appropriations Act, to any program, project or activity Sec. 19. Meaning of Savings and Augmentation. Savings refer to
of any department, bureau or office included in the General portions or balances of any programmed appropriation free of any
Appropriations Act or approved after its enactment” because it obligation or encumbrance still available after the satisfactory
unduly overextends the privilege granted under Sec. 16(5) of the completion or unavoidable discontinuance or abandonment of the
1973 Constitution. work, activity or purpose for which the appropriation is authorized,
or arising from unpaid compensation and related costs pertaining
We ruled that the President cannot indiscriminately transfer funds
to vacant positions and leaves of absence without pay.
from one department, bureau, office or agency of the Executive
Augmentation implies the existence in this Act of an item, project,
Department to any program, project or activity of any department,
activity or purpose with an appropriation which upon
bureau or office included in the General Appropriations Act or
implementation or subsequent evaluation of needed resources is
approved after its enactment, without regard to whether the funds
determined to be deficient. In no case, therefore, shall a non-
to be transferred are actually savings in the item from which the
existent item, project, activity, purpose or object of expenditure be
funded by augmentation from savings or by the use of savings before transferring funds, the Court in Philconsa v.
appropriations authorized otherwise in this act. Enriquez, supra, categorically declared that the Senate President
and the Speaker of the House of Representatives, as the case may
Clearly, there are two essential requisites in order that a transfer
be, shall approve the realignment (of savings). However, “[B]efore
of appropriation with the corresponding funds may legally be
giving their stamp of approval, these two officials will have to see
effected. First, there must be savings in the programmed
to it that: (1)The funds to be realigned or transferred are actually
appropriation of the transferring agency. Second, there must be an
savings in the items of expenditures from which the same are to be
existing item, project or activity with an appropriation in the
taken; and (2) The transfer or realignment is for the purpose of
receiving agency to which the savings will be transferred.
augmenting the items of expenditure to which said transfer or
Actual savings is a sine qua non to a valid transfer of funds from realignment is to be made.”
one government agency to another. The word “actual” denotes that
As it is, the fact that the permissible transfers contemplated by
something is real or substantial, or exists presently in fact as
Section 25(5), Article VI of the 1987 Constitution would occur
opposed to something which is merely theoretical, possible,
entirely within the framework of the executive, legislative, judiciary,
potential or hypothetical.
or the constitutional commissions, already makes wanton and
As a case in point, the Chief Justice himself transfers funds only unmitigated malversation of public funds all too easy, without the
when there are actual savings, e.g., from unfilled positions in the Court abetting it by ruling that transfer of funds ipso facto denotes
Judiciary. the existence of savings.

The thesis that savings may and should be presumed from the Precisely, the restriction on the transfer of funds, and similar
mere transfer of funds is plainly anathema to the doctrine laid constitutional limitations such as the specification of purpose for
down in Demetria v. Alba as it makes the prohibition against special appropriations bill, the restriction on disbursement of
transfer of appropriations the general rule rather than the stringent discretionary funds, the conditions on the release of money from
exception the constitutional framers clearly intended it to be. It the Treasury, among others, “were all safeguards designed to
makes a mockery of Demetria v. Alba as it would have the Court forestall abuses in the expenditure of public funds.” (emphases by
allow the mere expectancy of savings to be transferred. the Court; G.R. No. 127545)

Contrary to another submission in this case, the President, Chief As such settled jurisprudence, would the impending redefinition by
Justice, Senate President, and the heads of constitutional Congress of "savings" and "augmentation" be vulnerable to judicial
commissions need not first prove and declare the existence of review due to apparent grave abuse of discretion amounting to lack
or excess of jurisdiction, and thus, be declared as invalid and if a certain government project is being undertaken slowly by a
unlawful by the Supreme Court? Grave abuse of discretion is certain executive agency, the funds allotted therefor will be
defined as "capricious or whimsical exercise of judgment as is withdrawn by the Executive. Once withdrawn, these funds are
equivalent to lack of jurisdiction. The abuse of discretion must be declared as “savings” by the Executive and said funds will then be
patent and gross as to amount to an evasion of a positive duty or a reallotted to other priority projects. The DAP program did work
virtual refusal to perform a duty enjoined by law, or to act at all in to stimulate the economy as economic growth was in fact reported
contemplation of law, as where the power is exercised in an and portion of such growth was attributed to the DAP (as noted by
arbitrary and despotic manner by reason of passion and hostility." the Supreme Court).
(Ganaden, et. al. vs. The Hon. Court of Appeals, et. al., G.R.
Other sources of the DAP include the unprogrammed funds from
Nos. 170500 & 170510-11 [2011]). Or, on the other hand, would
the General Appropriations Act (GAA). Unprogrammed funds are
the Supreme Court apply the political question doctrine and/or
standby appropriations made by Congress in the GAA.
succumb to the adage, "vox populi, vox Dei?"
Meanwhile, in September 2013, Senator Jinggoy Estrada made an
Araullo vs Aquino GR 209287 July 1, 2014
exposé claiming that he, and other Senators, received Php50M from
Political Law – Constitutional Law – Separation of Powers – Fund the President as an incentive for voting in favor of the impeachment
Realignment – Constitutionality of the Disbursement Acceleration of then Chief Justice Renato Corona. Secretary Abad claimed that
Program the money was taken from the DAP but was disbursed upon the
request of the Senators.
Power of the Purse – Executive Impoundment
This apparently opened a can of worms as it turns out that the DAP
When President Benigno Aquino III took office, his administration
does not only realign funds within the Executive. It turns out that
noticed the sluggish growth of the economy. The World Bank
some non-Executive projects were also funded; to name a few:
advised that the economy needed a stimulus plan. Budget Secretary
Php1.5B for the CPLA (Cordillera People’s Liberation Army), Php1.8B
Florencio “Butch” Abad then came up with a program called the
for the MNLF (Moro National Liberation Front), P700M for the
Disbursement Acceleration Program (DAP).
Quezon Province, P50-P100M for certain Senators each, P10B for
The DAP was seen as a remedy to speed up the funding of Relocation Projects, etc.
government projects. DAP enables the Executive to realign funds
This prompted Maria Carolina Araullo, Chairperson of the Bagong
from slow moving projects to priority projects instead of waiting for
Alyansang Makabayan, and several other concerned citizens to file
next year’s appropriation. So what happens under the DAP was that
various petitions with the Supreme Court questioning the validity of I. No, the DAP did not violate Section 29(1), Art. VI of the
the DAP. Among their contentions was: Constitution. DAP was merely a program by the Executive and is not
a fund nor is it an appropriation. It is a program for prioritizing
DAP is unconstitutional because it violates the constitutional rule
government spending. As such, it did not violate the Constitutional
which provides that “no money shall be paid out of the Treasury
provision cited in Section 29(1), Art. VI of the Constitution. In DAP
except in pursuance of an appropriation made by law .”
no additional funds were withdrawn from the Treasury otherwise,
Secretary Abad argued that the DAP is based on certain laws an appropriation made by law would have been required. Funds,
particularly the GAA (savings and augmentation provisions thereof), which were already appropriated for by the GAA, were merely being
Sec. 25(5), Art. VI of the Constitution (power of the President to realigned via the DAP.
augment), Secs. 38 and 49 of Executive Order 292 (power of the
II. No, there is no executive impoundment in the DAP.
President to suspend expenditures and authority to use savings,
Impoundment of funds refers to the President’s power to refuse to
respectively).
spend appropriations or to retain or deduct appropriations for
Issues: whatever reason. Impoundment is actually prohibited by the GAA
unless there will be an unmanageable national government budget
I. Whether or not the DAP violates the principle “no money shall be
deficit (which did not happen). Nevertheless, there’s no
paid out of the Treasury except in pursuance of an appropriation
impoundment in the case at bar because what’s involved in the DAP
made by law” (Sec. 29(1), Art. VI, Constitution).
was the transfer of funds.
II. Whether or not the DAP realignments can be considered as
III. No, the transfers made through the DAP were unconstitutional.
impoundments by the executive.
It is true that the President (and even the heads of the other
III. Whether or not the DAP realignments/transfers are branches of the government) are allowed by the Constitution to
constitutional. make realignment of funds, however, such transfer or realignment
should only be made “within their respective offices”. Thus, no
IV. Whether or not the sourcing of unprogrammed funds to the DAP
cross-border transfers/augmentations may be allowed. But under
is constitutional.
the DAP, this was violated because funds appropriated by the GAA
V. Whether or not the Doctrine of Operative Fact is applicable. for the Executive were being transferred to the Legislative and other
non-Executive agencies.
HELD:
Further, transfers “within their respective offices” also contemplate revenue targets. In this case, no such certification was secured
realignment of funds to an existing project in the GAA. Under the before unprogrammed funds were used.
DAP, even though some projects were within the Executive, these
V. Yes. The Doctrine of Operative Fact, which recognizes the legal
projects are non-existent insofar as the GAA is concerned because
effects of an act prior to it being declared as unconstitutional by
no funds were appropriated to them in the GAA. Although some of
the Supreme Court, is applicable. The DAP has definitely
these projects may be legitimate, they are still non-existent under
helped stimulate the economy. It has funded numerous projects. If
the GAA because they were not provided for by the GAA. As such,
the Executive is ordered to reverse all actions under the DAP, then
transfer to such projects is unconstitutional and is without legal
it may cause more harm than good. The DAP effects can no longer
basis.
be undone. The beneficiaries of the DAP cannot be asked to return
On the issue of what are “savings” what they received especially so that they relied on the validity of
the DAP. However, the Doctrine of Operative Fact may not be
These DAP transfers are not “savings” contrary to what was being
applicable to the authors, implementers, and proponents of the
declared by the Executive. Under the definition of “savings” in the
DAP if it is so found in the appropriate tribunals (civil, criminal, or
GAA, savings only occur, among other instances, when there is an
administrative) that they have not acted in good faith.
excess in the funding of a certain project once it is completed,
finally discontinued, or finally abandoned. The GAA does not refer Bengzon vs Drilon (G.R. No. 103524)
to “savings” as funds withdrawn from a slow moving project. Thus,
Posted: July 25, 2011 in Case Digests
since the statutory definition of savings was not complied with
under the DAP, there is no basis at all for the transfers. Further, Veto Power of the President
savings should only be declared at the end of the fiscal year. But
FACTS: On 15 Jan 1992, some provisions of the Special Provision
under the DAP, funds are already being withdrawn from certain
for the Supreme Court and the Lower Court’s General
projects in the middle of the year and then being declared as
Appropriations were vetoed by the President because a resolution
“savings” by the Executive particularly by the DBM.
by the Court providing for appropriations for retired justices has
IV. No. Unprogrammed funds from the GAA cannot be used as been enacted. The vetoed bill provided for the increase of the
money source for the DAP because under the law, such funds may pensions of the retired justices of the Supreme Court, and the
only be used if there is a certification from the National Treasurer Court of Appeals as well as members of the Constitutional
to the effect that the revenue collections have exceeded the Commission.
ISSUE: Whether or not the veto of the President on that portion of The veto in such case shall not affect the item or items to which he
the General Appropriations bill is constitutional. does not object.

HELD: The Justices of the Court have vested rights to the accrued 3 ways how a bill becomes a law.
pension that is due to them in accordance to Republic Act 1797.
1. When the President signs it
The president has no power to set aside and override the decision
of the Supreme Court neither does the president have the power to 2. When the President vetoes it but the veto is overridden by 2/3
enact or amend statutes promulgated by her predecessors much vote of all the members of each House; and
less to the repeal of existing laws. The veto is unconstitutional
3. When the president does not act upon the measure within 30
since the power of the president to disapprove any item or items in
days after it shall have been presented to him.
the appropriations bill does not grant the authority to veto part of
an item and to approve the remaining portion of said item. Philippine Constitution Association vs Salvador Enriquez

NOTES: Pocket Veto Not Allowed November 13, 2011

Under the Constitution, the President does not have the so-called 235 SCRA 506 – Political Law – Veto Power – Part of the Legislative
pocket-veto power, i.e., disapproval of a bill by inaction on his part. Process
The failure of the President to communicate his veto of any bill
Constitutionality of the Pork Barrel “Countrywide Development
represented to him within 30 days after the receipt thereof
Fund”
automatically causes the bill to become a law.
This is a consolidation of cases which sought to question the veto
This rule corrects the Presidential practice under the 1935
authority of the president involving the General Appropriations Bill
Constitution of releasing veto messages long after he should have
of 1994 as well as the constitutionality of the pork barrel. The
acted on the bill. It also avoids uncertainty as to what new laws are
Philippine Constitution Association (PHILCONSA) questions the
in force.
countrywide development fund. PHILCONSA said that Congress can
When is it allowed? only allocate funds but they cannot specify the items as to which
those funds would be applied for since that is already the function
The exception is provided in par (2),Sec 27 of Art 6 of the
of the executive.
Constitution which grants the President power to veto any
particular item or items in an appropriation, revenue or tariff bill. In G.R. No. 113766, after the vetoing by the president of some
provisions of the GAB of 1994, neither house of congress took
steps to override the veto. Instead, Senators Wigberto Tañada and Veto of provisions for revolving funds of SUCs
Alberto Romulo sought the issuance of the writs of prohibition and
The appropriation for State Universities and Colleges (SUC’s), the
mandamus against Executive Secretary Teofisto Guingona et al.
President vetoed special provisions which authorize the use of
Tañada et al contest the constitutionality of: (1) the veto on four
income and the creation, operation and maintenance of revolving
special provisions added to items in the GAB of 1994 for the Armed
funds was likewise vetoed. The reason for the veto is that there
Forces of the Philippines (AFP) and the Department of Public Works
were already funds allotted for the same in the National
and Highways (DPWH); and (2) the conditions imposed by the
expenditure Program. Tañada et al claimed this as unconstitutional.
President in the implementation of certain appropriations for the
The SC ruled that the veto is valid for it is in compliant to the “One
CAFGU’s, the DPWH, and the National Housing Authority (NHA).
Fund Policy” – it avoided double funding and redundancy.
ISSUE: Whether or not the President’s veto is valid.
Veto of provision on 70% (administrative)/30% (contract) ratio for
HELD: In the PHILCONSA petition, the SC ruled that Congress acted road maintenance
within its power and that the CDF is constitutional. In the Tañada
The President vetoed this provision on the basis that it may result
petitions the SC dismissed the other petitions and granted the
to a breach of contractual obligations. The funds if allotted may
others.
result to abandonment of some existing contracts. The SC ruled
Veto on special provisions that this Special Provision in question is not an inappropriate
provision which can be the subject of a veto. It is not alien to the
The president did his veto with certain conditions and compliant to
appropriation for road maintenance, and on the other hand, it
the ruling in Gonzales vs Macaraig. The president particularly
specifies how the said item shall be expended – 70% by
vetoed the debt reduction scheme in the GAA of 1994 commenting
administrative and 30% by contract. The 1987 Constitution allows
that the scheme is already taken cared of by other legislation and
the addition by Congress of special provisions, conditions to items
may be more properly addressed by revising the debt policy. He,
in an expenditure bill, which cannot be vetoed separately from the
however did not delete the P86,323,438,000.00 appropriation
items to which they relate so long as they are “appropriate” in the
therefor. Tañada et al averred that the president cannot validly veto
budgetary sense. The veto herein is then not valid.
that provision w/o vetoing the amount allotted therefor. The veto of
the president herein is sustained for the vetoed provision is Veto of provision on prior approval of Congress for purchase of
considered “inappropriate”; in fact the Sc found that such provision military equipment
if not vetoed would in effect repeal the Foreign Borrowing Act
making the legislation as a log-rolling legislation.
As reason for the veto, the President stated that the said condition Conditions on the appropriation for the Supreme Court, etc
and prohibition violate the Constitutional mandate of non-
In his veto message: “The said condition is consistent with the
impairment of contractual obligations, and if allowed, “shall
Constitutional injunction prescribed under Section 8, Article IX-B of
effectively alter the original intent of the AFP Modernization Fund to
the Constitutional which states that ‘no elective or appointive public
cover all military equipment deemed necessary to modernize the
officer or employee shall receive additional, double, or indirect
AFP”. The SC affirmed the veto. Any provision blocking an
compensation unless specifically authorized by law.’ I am,
administrative action in implementing a law or requiring legislative
therefore, confident that the heads of the said offices shall maintain
approval of executive acts must be incorporated in a separate and
fidelity to the law and faithfully adhere to the well-established
substantive bill. Therefore, being “inappropriate” provisions.
principle on compensation standardization. Tañada et al claim that
Veto of provision on use of savings to augment AFP pension funds the conditions imposed by the President violated the independence
and fiscal autonomy of the Supreme court, the Ombudsman, the
According to the President, the grant of retirement and separation
COA and the CHR. The SC sustained the veto: In the first place, the
benefits should be covered by direct appropriations specifically
conditions questioned by petitioners were placed in the GAB by
approved for the purpose pursuant to Section 29(1) of Article VI of
Congress itself, not by the President. The Veto Message merely
the Constitution. Moreover, he stated that the authority to use
highlighted the Constitutional mandate that additional or indirect
savings is lodged in the officials enumerated in Section 25(5) of
compensation can only be given pursuant to law. In the second
Article VI of the Constitution. The SC retained the veto per reasons
place, such statements are mere reminders that the disbursements
provided by the president.
of appropriations must be made in accordance with law. Such
Condition on the deactivation of the CAFGU’s statements may, at worse, be treated as superfluities.

Congress appropriated compensation for the CAFGU’s including the Pork Barrel Constitutional
payment of separation benefits. The President declared in his Veto
The pork barrel makes the unequal equal. The Congressmen, being
Message that the implementation of this Special Provision to the
representatives of their local districts know more about the
item on the CAFGU’s shall be subject to prior Presidential approval
problems in their constituents areas than the national government
pursuant to P.D. No. 1597 and R.A. No. 6758. The SC ruled to
or the president for that matter. Hence, with that knowledge, the
retain the veto per reasons provided by the president. Further, if
Congressmen are in a better position to recommend as to where
this provision is allowed the it would only lead to the repeal of said
funds should be allocated.
existing laws.

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