MA. ABEGAIL O.

TIPONES JD4B

POLITICAL LAW SYNTHESIS

(WEEK 6)

National Economy and Patrimony

The goals of the national economy are a more equitable distribution of opportunities, income, and
wealth; a sustained increase in the amount of goods and services produced by the nation for the benefit
of the people; and an expanding productivity as the key to raising the quality of life for all, especially the
underprivileged. The State shall promote industrialization and full employment based on sound
agricultural development and agrarian reform, through industries that make full and efficient use of
human and natural resources, and which are competitive in both domestic and foreign markets.
However, the State shall protect Filipino enterprises against unfair foreign competition and trade
practices. In the pursuit of these goals, all sectors of the economy and all regions of the country shall be
given optimum opportunity to develop. Private enterprises, including corporations, cooperatives, and
similar collective organizations, shall be encouraged to broaden the base of their ownership. The
threefold goal of the national economy are: (1)More equitable distribution of wealth;(2)increase of
wealth for the benefit of the people; (3) increased productivity.

All lands of the public domain, waters, minerals, coal, petroleum, and other mineral oils, all forces of
potential energy, fisheries, forests or timber, wildlife, flora and fauna, and other natural resources are
owned by the State. With the exception of agricultural lands, all other natural resources shall not be
alienated. The exploration, development, and utilization of natural resources shall be under the full
control and supervision of the State. The State may directly undertake such activities, or it may enter
into co-production, joint venture, or production-sharing agreements with Filipino citizens, or
corporations or associations at least sixty per centum of whose capital is owned by such citizens. Such
agreements may be for a period not exceeding twenty-five years, renewable for not more than twenty-
five years, and under such terms and conditions as may be provided by law. In cases of water rights for
irrigation, water supply, fisheries, or industrial uses other than the development of water power,
beneficial use may be the measure and limit of the grant. The State shall protect the nation’s marine
wealth in its archipelagic waters, territorial sea, and exclusive economic zone, and reserve its use and
enjoyment exclusively to Filipino citizens. The Congress may, by law, allow small-scale utilization of
natural resources by Filipino citizens, as well as cooperative fish farming, with priority to subsistence
fishermen and fishworkers in rivers, lakes, bays, and lagoons. The President may enter into agreements
with foreign-owned corporations involving either technical or financial assistance for large-scale
exploration, development, and utilization of minerals, petroleum, and other mineral oils according to
the general terms and conditions provided by law, based on real contributions to the economic growth
and general welfare of the country. In such agreements, the State shall promote the development and
use of local scientific and technical resources. The President shall notify the Congress of every contract
entered into in accordance with this provision, within thirty days from its execution. The regalian
doctrine is to the effect that all lands of the public domain belong to the State, and that the State is the
source of any asserted right to ownership in land and charged with the conversation of such patrimony.
Any person claiming ownership of a portion of the public domain must be able to show title from the
state according to any of the recognized modes of acquisition of title. In public law a distinction is made
between imperium and dominium. Imperium is the government authority possessed by the state
expressed in the concept of sovereignty. Dominium is the capacity of the state to own or acquire
property. State may enter into service contracts with foreign owned corporations but subject to the
strict limitations in the last two paragraphs of Section 2. Financial and technical agreements are a form
of service contract. Such service contracts may be entered into only with respect to minerals, petroleum
and other mineral oils. The grant of such service contracts is subject to several safeguards, among them:
(1) that the service contract be crafted in accordance with a general law setting standard or uniform
terms, conditions and requirements; (2) the President be the signatory for the government; and (3) the
President report the executed agreement to Congress within thirty days.

Lands of the public domain are classified into agricultural, forest or timber, mineral lands, and national
parks. Agricultural lands of the public domain may be further classified by law according to the uses
which they may be devoted. Alienable lands of the public domain shall be limited to agricultural lands.
Private corporations or associations may not hold such alienable lands of the public domain except by
lease, for a period not exceeding twenty-five years, renewable for not more than twenty-five years, and
not to exceed one thousand hectares in area. Citizens of the Philippines may lease not more than five
hundred hectares, or acquire not more than twelve hectares thereof by purchase, homestead, or grant.
Taking into account the requirements of conservation, ecology, and development, and subject to the
requirements of agrarian reform, the Congress shall determine, by law, the size of lands of the public
domain which may be acquired, developed, held, or leased and the conditions therefor. In the case of
Director of Lands v. Court of Appeals, 129 SCRA 689 the Court held that he classification of public lands
is an exclusive prerogative of the Executive Department of the Government and not of the Courts. In the
absence of such classification, the land remains as unclassified land until it is released therefrom and
rendered open to disposition. This should be so under time honored Constitutional precepts. This is also
in consonance with the Regalian doctrine that all lands of the public domain belong to the State, and
that the State is the source of any asserted right to ownership in the land and charged with the
conservation of such patrimony. There was extensive debate on what proportion of capitalization should
qualify a corporation as Filipino. First of all, it was made clear that capital meant subscribed capital, or its
equivalent, if the corporation is non-stock. The Committee report had initially recommended sixty-six
and two-thirds Filipino capitalization. Then followed a series of amendments which, starting from one
hundred per cent Filipino capitalization, to seventy-five percent, to two-thirds, were all defeated. Forty
percent foreign capitalization was successfully defended on the ground of the need for capital in an area
of high risk." Similarly, proposal to make governing boards 100% Filipino was voted down mainly on the
argument that there would be no point in giving foreigners a 40% share if they cannot share in
governing the corporation.

The Congress shall, as soon as possible, determine by law the specific limits of forest lands and national
parks, marking clearly their boundaries on the ground. Thereafter, such forest lands and national parks
shall be conserved and may not be increased nor diminished, except by law. The Congress shall provide,
for such period as it may determine, measures to prohibit logging in endangered forests and watershed
areas. The State, subject to the provisions of this Constitution and national development policies and
programs, shall protect the rights of indigenous cultural communities to their ancestral lands to ensure
their economic, social, and cultural well-being. The Congress may provide for the applicability of
customary laws governing property rights or relations in determining the ownership and extent of
ancestral domain. Ancestral domain is an all-embracing concept which refers to lands, inland waters,
coastal areas, and natural resources therein and includes ancestral lands, forests, pasture, residential,
agricultural, and other lands individually owned whether alienable or not, hunting grounds, burial
grounds, worship areas, bodies of water and other natural resources. They include lands which may no
longer be exclusively occupied by indigenous cultural communities but to which they had traditionally
had access for their subsistence and traditional activities. Ancestral land is a narrower concept. It refers
to those held under the same conditions but ancestral domain but limited to lands that are not merely
occupied and possessed but are also utilized by cultural communities under the claim of individual or
traditional group ownership. These include but are not limited to residential lots, rice terraces or
paddies, private forests, farms and tree lots. R.A. 8371, the Indigenous Peoples Rights Act is not
constitutional and it does not deprive the State of its ownership over lands of the public domain and the
natural resources in them. Ancestral domain and ancestral lands are not part of lands of the public
domain. They are private and belong to indigenous people. Section 5 commands the State to protect the
rights of indigenous people. Carino v. Insular Government, 212 U.S. 449 recognized native title held by
Filipinos from time immemorial and excluded from the concept of jura regalia. The right of ownership
granted does not include natural resources. The right to negotiate terms and conditions over natural
resources covers only exploration to ensure environmental protection. It is not a grant of exploration
rights. The limited right of management refers to utilization as expressly allowed in Section 2, Article XII.
What is given is priority right, not exclusive right. It does not preclude the State from entering into co-
production, joint venture, or production sharing agreements with private entities.

Save in cases of hereditary succession, no private lands shall be transferred or conveyed except to
individuals, corporations, or associations qualified to acquire or hold lands of the public domain.
Notwithstanding the provisions of Section 7 of this Article, a natural-born citizen of the Philippines who
has lost his Philippine citizenship may be a transferee of private lands, subject to limitations provided by
law. Private land means any land of private ownership. This includes both lands owned by private
individuals and lands which are patrimonial property of the State or of municipal corporations. On the
basis of their capacity "to acquire or hold lands of the public domain," the following may acquire private
lands: (1) Filipino citizens; (2) Filipino corporations and associations as defined in Section 2; and, by
exception, (3) aliens, but only by hereditary succession, and (4) a natural-born citizen of the Philippines
who has lost Philippine citizenship (but only under the terms of Section 8).

 The Congress shall, upon recommendation of the economic and planning agency, when the national
interest dictates, reserve to citizens of the Philippines or to corporations or associations at least sixty per
centum of whose capital is owned by such citizens, or such higher percentage as Congress may
prescribe, certain areas of investments. The Congress shall enact measures that will encourage the
formation and operation of enterprises whose capital is wholly owned by Filipinos. In the grant of rights,
privileges, and concessions covering the national economy and patrimony, the State shall give
preference to qualified Filipinos. The State shall regulate and exercise authority over foreign
investments within its national jurisdiction and in accordance with its national goals and priorities. There
is Filipinization when ownership is limited to Filipino citizens or Filipino corporations; there is
nationalization when ownership is reserved to the State. The first sentence of the present Section 10
essentially repeats the 1973 provision. The 1987 provision has deleted the adjective "traditional." The
adjective was deleted because it was considered ambiguous and could unduly limit the discretion of
Congress in the choice of areas of investment to limit to Filipinos. Moreover, the rule was also intended
to govern the conversion of foreign debt into equity. The second sentence of the first paragraph of
Section 10, after an initial tie vote, and although the sentence is unnecessary, was accepted by the
sponsoring Committee "for the sake of unity."

No franchise, certificate, or any other form of authorization for the operation of a public utility shall be
granted except to citizens of the Philippines or to corporations or associations organized under the laws
of the Philippines at least sixty per centum of whose capital is owned by such citizens, nor shall such
franchise, certificate, or authorization be exclusive in character or for a longer period than fifty years.
Neither shall any such franchise or right be granted except under the condition that it shall be subject to
amendment, alteration, or repeal by the Congress when the common good so requires. The State shall
encourage equity participation in public utilities by the general public. The participation of foreign
investors in the governing body of any public utility enterprise shall be limited to their proportionate
share in its capital, and all the executive and managing officers of such corporation or association must
be citizens of the Philippines. . A public utility is a utility corporation which renders service to the
general public for compensation. Its essential feature is that its service is not confined to privileged
individuals but is open to an indefinite public. The public or private character of a utility does not
depend on the number of persons who avail of its services but on whether or not it is open to serve all
members of the public who may require it. A foreigner may own assets of a public utility corporation.
The prohibition in the Constitution is against foreigners and foreign corporations being given a franchise
to operate a public utility. But they may own the facilities.

The State shall promote the preferential use of Filipino labor, domestic materials and locally produced
goods, and adopt measures that help make them competitive. The State shall pursue a trade policy that
serves the general welfare and utilizes all forms and arrangements of exchange on the basis of equality
and reciprocity. The sustained development of a reservoir of national talents consisting of Filipino
scientists, entrepreneurs, professionals, managers, high-level technical manpower and skilled workers
and craftsmen in all fields shall be promoted by the State. The State shall encourage appropriate
technology and regulate its transfer for the national benefit. The practice of all professions in the
Philippines shall be limited to Filipino citizens, save in cases prescribed by law. The Congress shall create
an agency to promote the viability and growth of cooperatives as instruments for social justice and
economic development. The Congress shall not, except by general law, provide for the formation,
organization, or regulation of private corporations. Government-owned or controlled corporations may
be created or established by special charters in the interest of the common good and subject to the test
of economic viability.

In times of national emergency, when the public interest so requires, the State may, during the
emergency and under reasonable terms prescribed by it, temporarily take over or direct the operation
of any privately owned public utility or business affected with public interest. The power to take over
the operation of public utilities is activated only if Congress grants emergency powers under Article VI,
Section 23. Section 17 must be read with Article VI, Section 23. Section 17 gives the power to the State
not to the President. The President acquires emergency powers when given to her by Congress in a state
of emergency declared by Congress.

The State may, in the interest of national welfare or defense, establish and operate vital industries and,
upon payment of just compensation, transfer to public ownership utilities and other private enterprises
to be operated by the Government. Section 11 deals with Filipinization, meaning Filipino ownership,
whereas Section 18 deals with nationalization or state ownership.

The State shall regulate or prohibit monopolies when the public interest so requires. No combinations in
restraint of trade or unfair competition shall be allowed. Article XII, Section 19, is anti-trust in history
and spirit. It espouses competition. Only competition which is fair can release the creative forces of the
market. Competition underlies the provision. The objective of anti-trust law is "to assure a competitive
economy based upon the belief that through competition producers will strive to satisfy consumer
wants at the lowest price with the sacrifice of the fewest resources. Competition among producers
allows consumers to bid for goods and services and, thus matches their desires with society's
opportunity costs." Additionally, there is a reliance upon "title operation of the 'market' system (free
enterprise) to decide what shall be produced, how resources shall be allocated in the production
process, and to whom various products will be distributed. The market system relies on the consumer to
decide what and how much shall be produced, and on competition, among producers who will
manufacture it." The simplest form of monopoly exists when there is only one seller or producer of a
product or service for which there are no substitutes. In its more complex form, monopoly is defined as
the joint acquisition or maintenance by members of a conspiracy, formed for that purpose, of the power
to control and dominate trade and commerce in a commodity to such an extent that they are able, as a
group, to exclude actual or potential competitors from the field, accompanied with the intention and
purpose to exercise such power.

The Congress shall establish an independent central monetary authority, the members of whose
governing board must be natural-born Filipino citizens, of known probity, integrity, and patriotism, the
majority of whom shall come from the private sector. They shall also be subject to such other
qualifications and disabilities as may be prescribed by law. The authority shall provide policy direction in
the areas of money, banking, and credit. It shall have supervision over the operations of banks and
exercise such regulatory powers as may be provided by law over the operations of finance companies
and other institutions performing similar functions. Until the Congress otherwise provides, the Central
Bank of the Philippines, operating under existing laws, shall function as the central monetary authority.
Foreign loans may only be incurred in accordance with law and the regulation of the monetary
authority. Information on foreign loans obtained or guaranteed by the Government shall be made
available to the public. They must be in accordance with law; (2) they must be in accordance with
regulations of the Monetary Board and with the prior concurrence of the Monetary Board (Article VII,
Section 20). These restrictions were enacted under the influence of the centrality of foreign loan
problems during the drafting of the 1987 Constitution. Acts which circumvent or negate any of the
provisions of this Article shall be considered inimical to the national interest and subject to criminal and
civil sanctions, as may be provided by law.

General Provisions
The flag of the Philippines shall be red, white, and blue, with a sun and three stars, as consecrated and
honored by the people and recognized by law. The design of the Philippine flag may be changed
through a constitutional amendment. The Congress may, by law, adopt a new name for the country, a
national anthem, or a national seal, which shall all be truly reflective and symbolic of the ideals, history,
and traditions of the people. Such law shall take effect only upon its ratification by the people in a
national referendum.

The State may not be sued without its consent. In a republican state, like the Philippines, government
immunity from suit without its consent is derived from the will of the people themselves in freely
creating a government "of the people, by the people, and for the people" — a representative
government through which they have agreed to exercise the powers and discharge the duties of their
sovereignty for the common good and general welfare. In so agreeing, the citizens have solemnly
undertaken to surrender some of their private rights and interests which were calculated to conflict with
the higher rights and larger interests of the people as a whole, represented by the government thus
established by them all. One of those "higher rights," based upon those "larger interests" is that of
governmental immunity. The members of the respondent Labor Union themselves are part of the
people who have freely formed that government and participated in that solemn undertaking. In this
sense-and a very real one it is-they are in effect attempting to sue themselves along with the rest of the
people represented by their common government-an anomalous and absurd situation indeed. A suit is
against the state in the following instances: (1) When the Republic is sued by name; (2) When the suit is
against an unincorporated government agency; (3) When the suit is on its face against a government
officer but the case is such that ultimate liability will belong not to the officer but to the government. In
all the above instances, suability depends on whether the State has consented to be sued. The general
rule is that public officials can be held personally accountable for acts performed in connection with
official duties where they have acted ultra vires or where there is a showing of bad faith. Where the
petitioner exceeds his authority as Solicitor General, acts in bad faith, or, as contended by private
respondent 'maliciously conspires with the PCGG commissioners in persecuting respondent Enrile by
filing against him an evidently baseless suit in derogation of the tatter's constitutional rights and
liberties', there can be no question that a complaint for damages may be filed against him. High position
in government does not confer a license to persecute or recklessly injure another. Consent to be sued is
given either expressly or impliedly. There is express consent when there is a law expressly granting
authority to sue the State or any of its agencies. There is implied consent: (1) When the state enters into
a private contract, unless the contract is merely incidental to the performance of a governmental
function.). (2) When the state enters into an operation that is essentially a business operation, unless
the business operation is merely incidental to the performance of a governmental function, as for
instance, arrastre service (3) When the state sues a private party, unless the suit is entered into only to
resist a claim. The universal rule that where the State gives its consent to be sued by private parties
either by general or special law, it may limit claimant's action "only up to the completion of proceedings
anterior to the state of execution" and that the power of the Courts ends when the judgment is
rendered, since government funds and properties may not be seized under writs of execution or
garnishment to satisfy such judgments, is based on obvious considerations of public policy.
Disbursements of public funds must be covered by the corresponding appropriation as required by law.
The functions and public services rendered by the State cannot be allowed to be paralyzed or disrupted
by the diversion of public funds from their legitimate and specific objects, as appropriated by law.
Immunity of states from suit is also a rule in international law. Thus, the mere entering into a contract by
a foreign State with a private party cannot be construed as the ultimate test of whether or not it is an
act jure imperii or jure gestionis. Such act is only the start of the inquiry. Is the foreign State engaged in
the regular conduct of a business? If the foreign State is not engaged regularly in a business or
commercial activity, and in this case it has not been shown to be so engaged, the particular act or
transaction must then be tested by its nature. If the act is in pursuit of a sovereign activity, or an
incident thereof, then it is an actjure imperii.

The Armed Forces of the Philippines shall be composed of a citizen armed force which shall undergo
military training and serve, as may be provided by law. It shall keep a regular force necessary for the
security of the State. All members of the armed forces shall take an oath or affirmation to uphold and
defend this Constitution. The State shall strengthen the patriotic spirit and nationalist consciousness of
the military, and respect for people’s rights in the performance of their duty. Professionalism in the
armed forces and adequate remuneration and benefits of its members shall be a prime concern of the
State. The armed forces shall be insulated from partisan politics.

No member of the military shall engage directly or indirectly in any partisan political activity, except to
vote. No member of the armed forces in the active service shall, at any time, be appointed or designated
in any capacity to a civilian position in the Government including government-owned or controlled
corporations or any of their subsidiaries. Laws on retirement of military officers shall not allow extension
of their service. The officers and men of the regular force of the armed forces shall be recruited
proportionately from all provinces and cities as far as practicable. The tour of duty of the Chief of Staff of
the armed forces shall not exceed three years. However, in times of war or other national emergency
declared by the Congress, the President may extend such tour of duty.

The State shall establish and maintain one police force, which shall be national in scope and civilian in
character, to be administered and controlled by a national police commission. The authority of local
executives over the police units in their jurisdiction shall be provided by law. The intent of the provision
is to gradually phase out the Philippine Constabulary and to offer to members of the Constabulary force
the choice of either joining the regular armed force or the civilian police force.

The State shall provide immediate and adequate care, benefits, and other forms of assistance to war
veterans and veterans of military campaigns, their surviving spouses and orphans. Funds shall be
provided therefor and due consideration shall be given them in the disposition of agricultural lands of
the public domain and, in appropriate cases, in the utilization of natural resources. The State shall, from
time to time, review to upgrade the pensions and other benefits due to retirees of both the government
and the private sectors. The State shall protect consumers from trade malpractices and from
substandard or hazardous products.  The State shall provide the policy environment for the full
development of Filipino capability and the emergence of communication structures suitable to the
needs and aspirations of the nation and the balanced flow of information into, out of, and across the
country, in accordance with a policy that respects the freedom of speech and of the press.

The ownership and management of mass media shall be limited to citizens of the Philippines, or to
corporations, cooperatives or associations, wholly-owned and managed by such citizens. The Congress
shall regulate or prohibit monopolies in commercial mass media when the public interest so requires.
No combinations in restraint of trade or unfair competition therein shall be allowed. The advertising
industry is impressed with public interest, and shall be regulated by law for the protection of consumers
and the promotion of the general welfare. Only Filipino citizens or corporations or associations at least
seventy per centum of the capital of which is owned by such citizens shall be allowed to engage in the
advertising industry. The participation of foreign investors in the governing body of entities in such
industry shall be limited to their proportionate share in the capital thereof, and all the executive and
managing officers of such entities must be citizens of the Philippines. The Congress may create a
consultative body to advise the President on policies affecting indigenous cultural communities, the
majority of the members of which shall come from such communities.

Amendment or Revisions

 Any amendment to, or revision of, this Constitution may be proposed by:(1) The Congress, upon a vote
of three-fourths of all its Members; or (2) A constitutional convention. Both amendment and revision
signify change in the constitutional text. An amendment envisages an alteration of one or a few specific
and isolated provisions of the constitution. Its guiding original intention is to improve specific parts or to
add new provisions or to suppress existing ones according as addition or subtraction might be
demanded by existing conditions. In revision, however, the guiding intention and plan contemplate a re-
examination of the entire document or an important cluster of provisions in the document to determine
how and to what extent it should be altered. The end product of a revision can be an important
structural change in the government or a change which affects several provisions of the Constitution.

Constituent power is the power to formulate a Constitution or to propose amendments to or revision of

the Constitution and to ratify such proposal, whereas legislative power is the power to pass, repeal or
amend ordinary laws or statutes (as opposed to the organic law). Constituent power is exercised by
Congress (by special constitutional conferment), by a Constitutional Convention or Commission, by the
people through initiative and referendum, and ultimately by the sovereign electorate, whereas
legislative power is an ordinary power of Congress and of the people, also through initiative and
referendum. The exercise of constituent power does not need the approval of the Chief Executive,
whereas the exercise of legislative power ordinarily needs the approval of the Chief Executive, except
when done by the people through initiative and referendum. Jurisprudence under martial law, however,
sanctioned the proposition that on the basis of absolute necessity, where no body existed which could
proposal amendments, both the constituent and legislative powers of the legislature may be exercised
by the Chief Executive.

Amendments to this Constitution may likewise be directly proposed by the people through initiative
upon a petition of at least twelve per centum of the total number of registered voters, of which every
legislative district must be represented by at least three per centum of the registered voters therein. No
amendment under this section shall be authorized within five years following the ratification of this
Constitution nor oftener than once every five years thereafter. The Congress shall provide for the
implementation of the exercise of this right. A constitution cannot be changed without following the
process prescribed by the existing constitution because by adopting the article on amendments and
revision the people themselves have imposed on themselves a constitutional limitation on their capacity
to dispose of the Constitution. However, since the people are the ultimate legal sovereign, they may in
extraordinary circumstances decide to disregard the constitution. When they do so, the change they
effect is neither amendment nor revision in the constitutional sense but "revolution.'' If the
constitutional change is to be effected by amendment or by revision, the required steps are: (1) there
must be proposal of amendments or revision, that is, the formulation of the changes contemplated, (2)
submission of the proposed amendments or revision to the people; and (3) ratification.

The Congress may, by a vote of two-thirds of all its Members, call a constitutional convention, or by a
majority vote of all its Members, submit to the electorate the question of calling such a convention.  Any
amendment to, or revision of, this Constitution under Section 1 hereof shall be valid when ratified by a
majority of the votes cast in a plebiscite which shall be held not earlier than sixty days nor later than
ninety days after the approval of such amendment or revision.

Any amendment under Section 2 hereof shall be valid when ratified by a majority of the votes cast in a
plebiscite which shall be held not earlier than sixty days nor later than ninety days after the certification
by the Commission on Elections of the sufficiency of the petition.

Transitory Provisions

The obvious purpose of transitory provisions is to facilitate the transition from the old Constitution to
the new. In the case of the transitory provisions of the 1987 Constitution, the transition is not just from
its immediate predecessor, the Freedom Constitution, but also from the 1973 Constitution.

The first elections of Members of the Congress under this Constitution shall be held on the second
Monday of May, 1987. The first local elections shall be held on a date to be determined by the
President, which may be simultaneous with the election of the Members of the Congress. It shall include
the election of all Members of the city or municipal councils in the Metropolitan Manila area. The power
of the President to fix the date of local elections was merely ordinary legislative power and that
therefore the President's initial decision could be altered by Congress.

The Senators, Members of the House of Representatives, and the local officials first elected under this
Constitution shall serve until noon of June 30, 1992. Of the Senators elected in the election of 1992, the
first twelve obtaining the highest number of votes shall serve for six years and the remaining twelve for
three years. With this provision and with Section 6, the ending date of the term of all officials first
elected under the new Constitution is June 30,1992. This common termination date will synchronize
future elections to once every three years. 3 It also postpones the staggering of the term of Senators to
after the elections of 1992, as set down in the second paragraph.

All existing laws, decrees, executive orders, proclamations, letters of instructions, and other executive
issuances not inconsistent with this Constitution shall remain operative until amended, repealed, or
revoked. All existing treaties or international agreements which have not been ratified shall not be
renewed or extended without the concurrence of at least two-thirds of all the Members of the Senate.

The six-year term of the incumbent President and Vice-President elected in the February 7, 1986
election is, for purposes of synchronization of elections, hereby extended to noon of June 30, 1992.The
first regular elections for the President and Vice-President under this Constitution shall be held on the
second Monday of May, 1992. Section 5 is primarily intended to fix the term of President Aquino but
there is a measure of sophistry imbedded in the language used. R.A. No. 7056 provided that the national
elections in 1992 would be held on the second Monday of May and the local elections the following
November. Osmena v. COMELEC declared this provision unconstitutional on the argument that Section 5
commanded synchronized elections, that is, election of national and local officials on the same day

The incumbent President shall continue to exercise legislative powers until the first Congress is
convened. The legislative power of President Aquino ended on July 27, 1987 when the first Congress
under this Constitution convened." Thus, a proclamation made by President Aquino issued on October 6,
1987 amending a presidential decree issued by President Marcos as legislator was declared invalid.

Until a law is passed, the President may fill by appointment from a list of nominees by the respective
sectors the seats reserved for sectoral representation in paragraph (2), Section 5 of Article VI of this
Constitution. The desire of the Constitutional Commission was that sectoral representation should be
implemented even before Congress enacted the implementing law. For this purpose the President was
given the transitory power to appoint the sectoral representatives. It was a power which she may or
may not exercise. The transitory nature of the President's appointing power in Section 7, however, did
not make the right of the sectoral representatives appointed by her equally transitory. Once appointed
and qualified, such representatives would enjoy the term given by the Constitution which would not be
affected by whatever implementing legislation Congress might eventually pass.

 Until otherwise provided by the Congress, the President may constitute the Metropolitan Authority to
be composed of the heads of all local government units comprising the Metropolitan Manila area. The
Metropolitan Authority referred to is that found in Article X, Section 11, but only for the Metropolitan
Manila area. This provision was intended to rescue the Metropolitan Manila Administration which would
effectively be terminated by the election of local officials under Article XVIII, Section 1. Moreover, the
discussions on this subject indicate that the authority of the President to constitute a Metropolitan
Authority was limited to the period when Congress has not yet convened

All courts existing at the time of the ratification of this Constitution shall continue to exercise their
jurisdiction, until otherwise provided by law. The provisions of the existing Rules of Court, judiciary acts,
and procedural laws not inconsistent with this Constitution shall remain operative unless amended or
repealed by the Supreme Court or the Congress. The incumbent Members of the Judiciary shall continue
in office until they reach the age of seventy years or become incapacitated to discharge the duties of
their office or are removed for cause. Article III, Section 2, of Proclamation No. 3 said: "All elective and
appointive officials and employees under the 1973 Constitution shall continue in office until otherwise
provided by proclamation or executive order or upon the designation or appointment and qualification
of their successors, if such is made within a period of one year from February 25,1986. " Such
proclamation, therefore, would have applied to members of the judiciary until February 25, 1987 . What
Section 11 does is to remove the applicability of Proclamation No . 3 to all members of the judiciary and
to apply to them instead the rules on security of tenure in Article VILI, Section 11. However, this
provision only took effect on February 2,198 7 when this Constitution was ratified.

The Supreme Court shall, within one year after the ratification of this Constitution, adopt a systematic
plan to expedite the decision or resolution of cases or matters pending in the Supreme Court or the
lower courts prior to the effectivity of this Constitution. A similar plan shall be adopted for all special
courts and quasi-judicial bodies. The legal effect of the lapse, before the ratification of this Constitution,
of the applicable period for the decision or resolution of the cases or matters submitted for adjudication
by the courts, shall be determined by the Supreme Court as soon as practicable. The provisions of
paragraphs (3) and (4), Section 15 of Article VIII of this Constitution shall apply to cases or matters filed
before the ratification of this Constitution, when the applicable period lapses after such ratification.

The incumbent Members of the Civil Service Commission, the Commission on Elections, and the
Commission on Audit shall continue in office for one year after the ratification of this Constitution,
unless they are sooner removed for cause or become incapacitated to discharge the duties of their office
or appointed to a new term thereunder. In no case shall any Member serve longer than seven years
including service before the ratification of this Constitution. The perception of the 1986 Constitutional
Commission was that Members of the Commissions on Civil Service, Election, and Audit appointed by
President Aquino under the Freedom Constitution had not been appointed for a fixed term. Section 15
gave them a term of one year from the date of the ratification of the Constitution and at the same time
gave the President authority during that same period to replace them or give them regular
appointments according to the staggered distribution of term prescribed by the Constitution. 2 0 During
that period, they would be occupying the first year of the term of those who would subsequently be
appointed thereby reducing the tenure of subsequent appointees

Career civil service employees separated from the service not for cause but as a result of the
reorganization pursuant to Proclamation No. 3 dated March 25, 1986 and the reorganization following
the ratification of this Constitution shall be entitled to appropriate separation pay and to retirement and
other benefits accruing to them under the laws of general application in force at the time of their
separation. In lieu thereof, at the option of the employees, they may be considered for employment in
the Government or in any of its subdivisions, instrumentalities, or agencies, including government-
owned or controlled corporations and their subsidiaries. This provision also applies to career officers
whose resignation, tendered in line with the existing policy, had been accepted. Section 16 recognizes
that Proclamation No. 3 authorized reorganization of the civil service and that after the ratification of
the new Constitution reorganization might likewise still be necessary. Such reorganization could affect
the tenure of members of the career service as this is defined in Section 5, Article IV of Presidential
Decree No. 807. 2 3 What is envisioned in Section 16 is not a remedy for arbitrary removal of civil
servants enjoying security of tenure but some form of relief for members of the career civil service who
may have been or may be legally but involuntarily "reorganized out " of the service or may have
voluntarily resigned pursuant to the reorganization policy. The relief offered is the alternative one of
either separation pay and other retirement benefits or, at the option of the government, reemployment.

Until the Congress provides otherwise, the President shall receive an annual salary of three hundred
thousand pesos; the Vice-President, the President of the Senate, the Speaker of the House of
Representatives, and the Chief Justice of the Supreme Court, two hundred forty thousand pesos each;
the Senators, the Members of the House of Representatives, the Associate Justices of the Supreme
Court, and the Chairmen of the Constitutional Commissions, two hundred four thousand pesos each;
and the Members of the Constitutional Commissions, one hundred eighty thousand pesos each. At the
earliest possible time, the Government shall increase the salary scales of the other officials and
employees of the National Government. Sections 17 and 18 are closely related. Section 17 gave an initial
salary to high ranking officials that is relatively more realistic in terms of adequacy than heretofore
provided in earlier laws. The relatively low salary of these high ranking officials had served as a cap on
the possibility of the upward movement of the salary of lower officials. Since, however, the
readjustment of the salaries of the vast army of lower officials would need more study, the matter,
although needing urgent attention, was left by the Constitution to ordinary legislation but with the
command that it be attended to at the earliest possible time.

All properties, records, equipment, buildings, facilities, and other assets of any office or body abolished
or reorganized under Proclamation No. 3 dated March 25, 1986 or this Constitution shall be transferred
to the office or body to which its powers, functions, and responsibilities substantially pertain. The first
Congress shall give priority to the determination of the period for the full implementation of free public
secondary education. The Congress shall provide efficacious procedures and adequate remedies for the
reversion to the State of all lands of the public domain and real rights connected therewith which were
acquired in violation of the Constitution or the public land laws, or through corrupt practices. No
transfer or disposition of such lands or real rights shall be allowed until after the lapse of one year from
the ratification of this Constitution. The perception during the deliberations on the Constitution was that
during the regime of President Marcos lands of the public domain and real rights connected with them
had been transferred either in violation of the Constitution or other laws or "through corrupt
practices."- 7 Commissioner Regalado, who authored this provision, pointed out that while there were
provisions in the Rules of Court on escheat and reversion, there was no substantive law on the subject.
The procedure available to the State was one of reivindicatory action or an accion reivindicatoria. What
Section 21 intended was to prod Congress into creating a specific substantive basis for such action as
applied to public lands or rights illegally or "corruptly" acquired. Moreover, the last sentence provided
for a temporary holding pattern: even if the state should make no move towards reversion, no transfer
or disposition of such lands or real rights will be allowed until after the lapse of one year from the
ratification of the Constitution. 2 8 But the remedy sought by Regalado from Congress was one which
would enable the government to follow the property even if it had already been acquired by a
transferee in good faith.

At the earliest possible time, the Government shall expropriate idle or abandoned agricultural lands as
may be defined by law, for distribution to the beneficiaries of the agrarian reform program. At the time
of the deliberations, the Ministry of Agrarian reform listed some 183,000 hectares of idle and
abandoned lands. R.A. No. 3844 defined abandoned lands then as those devoted to any crop but which
were not utilized by the owner for his benefit for five years prior to notice, except when such non-
utilization was due to reasons of force majeure or other fortuitous event. Idle lands were those not
devoted directly to any crop or to any definite economic purpose for at least one year prior to notice but
which used to be devoted or were suitable for such crop, but not lands devoted permanently or
regularly to other essential or more productive purposes. R.A. No . 3844, however, did not provide for
expropriation but only for temporary planting. Section 22 specifically authorizes expropriation.

Advertising entities affected by paragraph (2), Section 11 of Article XVI of this Constitution shall have five
years from its ratification to comply on a graduated and proportionate basis with the minimum Filipino
ownership requirement therein. Article XVI, Section 11(2) imposes a 70-30 Filipino-foreign equity ratio
on all advertising entities. Commissioner Monsod proposed Section 23 which is intended to provide for a
period of adjustment in order to accommodate agencies which may have Filipino equity as low as zero. 1
1 To implement this, no legislation is needed. Section 23 is ready for implementation by the proper
regulatory agency.
Private armies and other armed groups not recognized by duly constituted authority shall be
dismantled. All paramilitary forces including Civilian Home Defense Forces not consistent with the
citizen armed force established in this Constitution, shall be dissolved or, where appropriate, converted
into the regular force. After the expiration in 1991 of the Agreement between the Republic of the
Philippines and the United States of America concerning Military Bases, foreign military bases, troops, or
facilities shall not be allowed in the Philippines except under a treaty duly concurred in by the Senate
and, when the Congress so requires, ratified by a majority of the votes cast by the people in a national
referendum held for that purpose, and recognized as a treaty by the other contracting State.

The authority to issue sequestration or freeze orders under Proclamation No. 3 dated March 25, 1986 in
relation to the recovery of ill-gotten wealth shall remain operative for not more than eighteen months
after the ratification of this Constitution. However, in the national interest, as certified by the President,
the Congress may extend said period. A sequestration or freeze order shall be issued only upon showing
of a prima facie case. The order and the list of the sequestered or frozen properties shall forthwith be
registered with the proper court. For orders issued before the ratification of this Constitution, the
corresponding judicial action or proceeding shall be filed within six months from its ratification. For
those issued after such ratification, the judicial action or proceeding shall be commenced within six
months from the issuance thereof. The sequestration or freeze order is deemed automatically lifted if no
judicial action or proceeding is commenced as herein provided. Article II, Section 1(d), of Proclamation
No. 3 had given to the President the power to "recover ill-gotten properties amassed by the leaders and
supporters of the previous regime and protect the interest of the people through orders of
sequestration or freezing of assets and accounts." Pursuant to this power, the President created the
Presidential Commission on Good Government (PCGG) and conferred upon it powers of sequestration.
Since the PCGG was not a court but was empowered to seize property, the power given to it was seen
by some as a departure from the ordinary rules of search and seizure prescribed by the Bill of Rights and
therefore as a continuing threat to property rights. In response, Commissioner Romulo argued that the
power of sequestration was as normal as preliminary attachments or injunctions or receivership, but
admitted nonetheless that what made it normal was the abnormal authorization given by Proclamation
No. 3. And contrary to Romulo's position, the Committee was of the view that the provision could have
the effect of creating an exception to the Bill of rights and that without this provision the PCGG would
lose the power to issue sequestration orders. For this reason, while there was a strong desire to recover
ill-gotten wealth, there likewise was a strong desire to ensure protection of property rights by setting
both time and substantive limits on the power of the PCGG.

Those who saw the provision, however, as a threat to the Bill of Rights would have preferred that the
provision be deleted altogether and thereby leave the matter to be governed by existing laws. The
desire, however, to recover ill-gotten wealth at whatever danger to traditional rights was too strong to
be resisted. The motion to delete the provisions was defeated 29 votes to 6. " Thereafter, the task
became a matter of ensuring that the sequestration power should be surrounded by safeguards that
could minimize abuse. Meanwhile, however, Commissioner Villacorta had changed the one year period
to "eighteen months," no longer, however, from the convening of Congress but "after the ratification of
this Constitution" and still subject to the proviso that Congress, in the national interest, when so
certified by the President, may extend the period words, it commands the possessor to hold the
property and conserve it subject to the orders and disposition of the authority decreeing such freezing.
In this sense, it is akin to a garnishment by which the possessor or ostensible owner of property is
enjoined no to deliver, transfer, or otherwise dispose of any effects or credits in his possession or
control, and thus becomes in a sense an involuntary depositary thereof.

A "freeze order" prohibits the person having possession or control of property alleged to constitute "ill-
gotten wealth" "from transferring, conveying, encumbering or otherwise depleting or concealing such
property, or from assisting or taking part in its transfer, encumbrance, concealment, or dissipation." In
other

This Constitution shall take effect immediately upon its ratification by a majority of the votes cast in a
plebiscite held for the purpose and shall supersede all previous Constitutions. The draft Constitution was
presented to the people for ratification on February 2,1987 . Presented for a single "yes " or "no" vote,
the draft was overwhelmingly ratified. 7 2 Later, on February 12, 1987, President Aquino issued a
proclamation declaring the new Constitution ratified and effective upon its ratification.