[ G.R. No.

217965, August 08, 2017 ]

CONFEDERATION OF COCONUT FARMERS ORGANIZATIONS OF THE PHILIPPINES, INC.

(CCFOP), PETITIONER, VS. HIS EXCELLENCY PRESIDENT BENIGNO SIMEON C. AQUINO III,
ACTING COMMISSIONER RICHARD ROGER AMURAO OF THE PRESIDENTIAL COMMISSION
ON GOOD GOVERNMENT (PCGG), CHAIRMAN CESAR L. VILLANUEVA OF THE
GOVERNANCE COMMISSION FOR GOCCS (GCG), AND SECRETARY LEILA M. DE LIMA OF
THE DEPARTMENT OF JUSTICE, RESPONDENTS.

FACTS OF THE CASE:

On November 8, 1977, P.D. No. 1234 was enacted. Treated the Coconut Levy Funds as special and
fiduciary funds authorized by law be remitted to the Treasury and be treated as Special Accounts in
the General Fund (SAGF).

Then, on June 11, 1978, P.D. No. 1468 (Revised Coconut Industry Code) was issued. Treated the
subject funds as part of the general funds of the national government, but shall be owned by the
coconut farmers in their private capacities.

On March 18, 2015, then President Benigno S. Aquino III (President Aquino) issued E.O. Nos.
179 and 180. Essentially, E.O. No. 179 calls for the inventory and privatization of all coco levy assets.
E.O. No. 180, on the other hand, mandates the reconveyance and utilization of these assets for the
benefit of coconut farmers and the development of the coconut industry.

The case assailing the utilization of the subject funds.

RULING:

EO No. 179 does not create a new special fund but merely reiterates that revenues arising out of or in
connection with the privatization of coconut levy funds shall be deposited in the SAGF.

Under EO 180 the provision: “The balance, if any, shall be utilized for investments for the benefit of
the coconut farmers as prescribed in Section 9 hereof.”

The subject fund form part of public funds since it was raised through the taxing power of the state for
the development of the coconut industry.

SECTION 29, Article VII, provides: No money shall be paid out of the Treasury except in pursuance of
an appropriation made by law. In consonance with EO 180 the President is given a wide latitude to
utilize the funds thus unconstitutional.

Court discusses the two classification of appropriation measures-general and special appropriation. A
general appropriation law is one passed annually to provide for the financial operations of the entire
government during one fiscal period, whereas a special appropriation is designed for a specific
purpose. The revenue collected for a special purpose shall be treated as a special fund to be used
exclusively for the stated purpose. This serves as a deterrent for abuse in the disposition of special
funds.

Appropriation of funds belongs to the Congress. What cannot be delegated is the authority under the
Constitution to make laws and to alter and repeal them. What is lacking in the law cannot be cured by
the Executive Branch.

For this reason, Sections 6, 7, 8, and 9 of E.O. No. 180 are declared void because they are not in
conformity with the law. Through these sections, the President went beyond the authority delegated
by law in the disbursement of the coconut levy funds.