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ITL Digest 20161107
ITL Digest 20161107
SUBSTANTIVE ISSUES ON
PRESIDENTIAL PORK BARREL
(e) The constitutional provision
regarding political dynasties is not self- (a) Section 8 of PD No. 910 and Section
executing. 12 of PD No. 1869 are valid appropriation laws.
Section 26, Article II of the 1987 For an appropriation law to be valid under
Constitution, which provides that the state Section 29 (1), Article VI of the 1987
shall prohibit political dynasties as may be Constitution, which provides that No money
defined by law, is not a self-executing shall be paid out of the Treasury except in
provision. pursuance of an appropriation made by law,
Since there appears to be no standing law it is enough that (a) the provision of law sets
which crystallizes the policy on political apart a determinate or determinable amount
dynasties for enforcement, the Court must of money and (b) allocates the same for a
defer from ruling on this issue. particular public purpose.
Section 8 of PD 910 is a valid appropriation
law because it set apart a determinable
amount: a Special Fund comprised of all
(f) The Congressional Pork Barrel fees, revenues, and receipts of the [Energy
violates constitutional principles on local Development] Board from any and all
autonomy sources.
It also specified a public purpose: energy
resource development and exploitation
The Congressional Pork Barrel goes against programs and projects of the government
the constitutional principles on local and for such other purposes as may be
autonomy since it allows district hereafter directed by the President.
representatives, who are national officers, to
Section 12 of PD No. 1869 is also a valid
substitute their judgments in utilizing public
appropriation law because it set apart a
funds for local development.
determinable amount: [a]fter deducting five
The gauge of PDAF and CDF (5%) percent as Franchise Tax, the Fifty
allocation/division is based solely on the fact (50%) percent share of the Government in
of office, without taking into account the the aggregate gross earnings of [PAGCOR],
specific interests and peculiarities of the or 60%[,] if the aggregate gross earnings be
district the legislator represents. less than P150,000,000.00.
The allocation/division limits are clearly not It also specified a public purpose: priority
based on genuine parameters of equality, infrastructure development projects and x x
wherein economic or geographic indicators x the restoration of damaged or destroyed
have been taken into consideration. facilities due to calamities, as may be
This concept of legislator control underlying directed and authorized by the Office of the
the CDF and PDAF conflicts with the President of the Philippines.
functions of the various Local Development
Councils (LDCs) which are already legally
mandated toassist the corresponding
sanggunian in setting the direction of
(b) Section 8 of PD No. 910 and Section
economic and social development, and
12 of PD No. 1869 constitutes undue
coordinating development efforts within its
delegation of legislation powers.
territorial jurisdiction.
Considering that LDCs are instrumentalities
whose functions are essentially geared The phrase and for such other purposes as
towards managing local affairs, their may be hereafter directed by the President
programs, policies and resolutions should not under Section 8 of PD 910 constitutes an
undue delegation of legislative power insofar
as it does not lay down a sufficient standard funds are standby appropriations made by
to adequately determine the limits of the Congress in the GAA.
Presidents authority with respect to the Meanwhile, in September 2013, Senator Jinggoy
purpose for which the Malampaya Funds Estrada made an expos claiming that he, and
may be used. other Senators, received Php50M from the
This phrase gives the President wide latitude President as an incentive for voting in favor of
to use the Malampaya Funds for any other the impeachment of then Chief Justice Renato
purpose he may direct and, in effect, allows Corona. Secretary Abad claimed that the money
him to unilaterally appropriate public funds was taken from the DAP but was disbursed upon
the request of the Senators.
beyond the purview of the law.
This notwithstanding, it must be underscored
This apparently opened a can of worms as it turns
out that the DAP does not only realign funds
that the rest of Section 8, insofar as it allows
within the Executive. It turns out that some non-
for the use of the Malampaya Funds to
Executive projects were also funded; to name a
finance energy resource development and few: Php1.5B for the CPLA (Cordillera Peoples
exploitation programs and projects of the Liberation Army), Php1.8B for the MNLF (Moro
government, remains legally effective and National Liberation Front), P700M for the
subsisting. Quezon Province, P50-P100M for certain
Section 12 of PD No. 1869 constitutes an Senators each, P10B for Relocation Projects, etc.
undue delegation of legislative powers This prompted Maria Carolina Araullo,
because it lies independently unfettered by Chairperson of the Bagong Alyansang
any sufficient standard of the delegating law. Makabayan, and several other concerned citizens
The law does not supply a definition of to file various petitions with the Supreme Court
priority infrastructure development projects questioning the validity of the DAP. Among their
and hence, leaves the President without any contentions was:
guideline to construe the same. DAP is unconstitutional because it violates the
The delimitation of a project as one of constitutional rule which provides that no money
infrastructure is too broad of a shall be paid out of the Treasury except in
classification since the said term could pursuance of an appropriation made by law.
pertain to any kind of facility. Secretary Abad argued that the DAP is based on
certain laws particularly the GAA (savings and
augmentation provisions thereof), Sec. 25(5), Art.
Araullo v Aquino
VI of the Constitution (power of the President to
augment), Secs. 38 and 49 of Executive Order
When President Benigno Aquino III took office, 292 (power of the President to suspend
his administration noticed the sluggish growth of expenditures and authority to use savings,
the economy. The World Bank advised that the respectively).
economy needed a stimulus plan. Budget Issues:
Secretary Florencio Butch Abad then came up I. Whether or not the DAP violates the principle
with a program called the Disbursement no money shall be paid out of the Treasury
Acceleration Program (DAP). except in pursuance of an appropriation made by
The DAP was seen as a remedy to speed up the law (Sec. 29(1), Art. VI, Constitution).
funding of government projects. DAP enables the II. Whether or not the DAP realignments can be
Executive to realign funds from slow moving considered as impoundments by the executive.
projects to priority projects instead of waiting for
III. Whether or not the DAP
next years appropriation. So what happens under
realignments/transfers are constitutional.
the DAP was that if a certain government project
is being undertaken slowly by a certain executive IV. Whether or not the sourcing of
agency, the funds allotted therefor will be unprogrammed funds to the DAP is
withdrawn by the Executive. Once withdrawn, constitutional.
these funds are declared as savings by the V. Whether or not the Doctrine of Operative Fact
Executive and said funds will then be reallotted is applicable.
to other priority projects. The DAP program did HELD:
work to stimulate the economy as economic I. No, the DAP did not violate Section 29(1), Art.
growth was in fact reported and portion of such VI of the Constitution. DAP was merely a
growth was attributed to the DAP (as noted by program by the Executive and is not a fund nor is
the Supreme Court). it an appropriation. It is a program for prioritizing
Other sources of the DAP include the government spending. As such, it did not violate
unprogrammed funds from the General the Constitutional provision cited in Section
Appropriations Act (GAA). Unprogrammed 29(1), Art. VI of the Constitution. In DAP no
additional funds were withdrawn from the
Treasury otherwise, an appropriation made by Treasurer to the effect that the revenue
law would have been required. Funds, which collections have exceeded the revenue targets. In
were already appropriated for by the GAA, were this case, no such certification was secured before
merely being realigned via the DAP. unprogrammed funds were used.
II. No, there is no executive impoundment in the V. Yes. The Doctrine of Operative Fact, which
DAP. Impoundment of funds refers to the recognizes the legal effects of an act prior to it
Presidents power to refuse to spend being declared as unconstitutional by the
appropriations or to retain or deduct Supreme Court, is applicable. The DAP has
appropriations for whatever reason. definitely helped stimulate the economy. It has
Impoundment is actually prohibited by the GAA funded numerous projects. If the Executive is
unless there will be an unmanageable national ordered to reverse all actions under the DAP,
government budget deficit (which did not then it may cause more harm than good. The
happen). Nevertheless, theres no impoundment DAP effects can no longer be undone. The
in the case at bar because whats involved in the beneficiaries of the DAP cannot be asked to
DAP was the transfer of funds. return what they received especially so that they
III. No, the transfers made through the DAP were relied on the validity of the DAP. However, the
unconstitutional. It is true that the President (and Doctrine of Operative Fact may not be applicable
even the heads of the other branches of the to the authors, implementers, and proponents of
government) are allowed by the Constitution to the DAP if it is so found in the appropriate
make realignment of funds, however, such tribunals (civil, criminal, or administrative) that
transfer or realignment should only be made they have not acted in good faith.
within their respective offices. Thus, no cross-
border transfers/augmentations may be allowed.
But under the DAP, this was violated because
funds appropriated by the GAA for the Executive Angara v Electoral Commission
were being transferred to the Legislative and
other non-Executive agencies.
Further, transfers within their respective offices In the elections of Sept 17, 1935, Angara, and the
also contemplate realignment of funds to an respondents, Pedro Ynsua et al. were candidates voted for
existing project in the GAA. Under the DAP, the position of member of the National Assembly for the
even though some projects were within the first district of the Province of Tayabas. On Oct 7, 1935,
Executive, these projects are non-existent insofar Angara was proclaimed as member-elect of the NA for the
as the GAA is concerned because no funds were said district. On November 15, 1935, he took his oath of
appropriated to them in the GAA. Although some office. On Dec 3, 1935, the NA in session assembled,
of these projects may be legitimate, they are still passed Resolution No. 8 confirming the election of the
non-existent under the GAA because they were members of the National Assembly against whom no
not provided for by the GAA. As such, transfer to protest had thus far been filed. On Dec 8, 1935, Ynsua,
such projects is unconstitutional and is without filed before the Electoral Commission a Motion of
legal basis. Protest against the election of Angara. On Dec 9, 1935,
On the issue of what are savings the EC adopted a resolution, par. 6 of which fixed said date
as the last day for the filing of protests against the election,
These DAP transfers are not savings contrary
returns and qualifications of members of the NA,
to what was being declared by the Executive.
notwithstanding the previous confirmation made by the
Under the definition of savings in the GAA,
NA. Angara filed a Motion to Dismiss arguing that by
savings only occur, among other instances, when
virtue of the NA proclamation, Ynsua can no longer
there is an excess in the funding of a certain
protest. Ynsua argued back by claiming that EC
project once it is completed, finally discontinued,
proclamation governs and that the EC can take cognizance
or finally abandoned. The GAA does not refer to
of the election protest and that the EC cannot be subject to
savings as funds withdrawn from a slow
a writ of prohibition from the SC.
moving project. Thus, since the statutory
definition of savings was not complied with
under the DAP, there is no basis at all for the ISSUES: Whether or not the SC has jurisdiction over such
transfers. Further, savings should only be matter.
declared at the end of the fiscal year. But under
the DAP, funds are already being withdrawn Whether or not EC acted without or in excess of
from certain projects in the middle of the year jurisdiction in taking cognizance of the election protest.
and then being declared as savings by the
Executive particularly by the DBM.
HELD: The SC ruled in favor of Angara. The SC
IV. No. Unprogrammed funds from the GAA emphasized that in cases of conflict between the several
cannot be used as money source for the DAP departments and among the agencies thereof, the judiciary,
because under the law, such funds may only be with the SC as the final arbiter, is the only constitutional
used if there is a certification from the National
mechanism devised finally to resolve the conflict and
allocate constitutional boundaries.
ISSUE:
That judicial supremacy is but the power of judicial review
in actual and appropriate cases and controversies, and is the
power and duty to see that no one branch or agency of the Whether or not the usage of the jingle by the
government transcends the Constitution, which is the petitioner form part of the prohibition invoked by the
source of all authority.
COMELEC.
That the Electoral Commission is an independent
constitutional creation with specific powers and functions
to execute and perform, closer for purposes of classification
to the legislative than to any of the other two departments HELD:
of the government.
The Court held that the general words following any
That the Electoral Commission is the sole judge of all enumeration being applicable only to things of the
contests relating to the election, returns and qualifications
of members of the National Assembly. same kind or class as those specifically referred to.
The COMELECs contention that a candidates jingle
Mutuc v Comelec
form part of the prohibition, categorized under the
phrase and the like, could not merit the courts
AMELITO R. MUTUC vs. COMELEC
approval by principle of Ejusdem Generis. It is quite
apparent that what was contemplated in the Act was
the distribution of gadgets of the kind referred to as a
FACTS:
means of inducement to obtain a favorable vote for
Petitioner Mutuc was a candidate for delegate to the the candidate responsible for its distribution.
Constitutional Convention. He filed a special civil
action against the respondent COMELEC when the
latter informed him through a telegram that his Furthermore, the COMELEC failed to observe
certificate of candidacy was given due course but he construction of the statute which should be in
was prohibited from using jingles in his mobile units consonance to the express terms of the constitution.
equipped with sound systems and loud speakers. The The intent of the COMELEC for the prohibition may
petitioner accorded the order to be violative of his be laudable but it should not be sought at the cost of
constitutional right to freedom of speech. COMELEC the candidates constitutional rights.
justified its prohibition on the premise that the
Constitutional Convention act provided that it is Manila Prince Hotel v. GSIS GR 122156, 3 February
unlawful for the candidates to purchase, produce, 1997