CASE NO.

41

BOLINAO ELECTRONICS CORPORATION vs. BRIGIDO VALENCIA

G.R. NO. L-20740 JUNE 30, 1964

TOPIC: THE PRESIDENT’S VETO POWER

FACTS:
Bolinao Electronics Corporation was the co-owner and a co-petitioner of Chronicle
Broadcasting Network, Inc. (CBN) and Montserrat Broadcasting System Inc. They operate and
own television (channel 9) and radio stations in the Philippines. They were summoned by
Brigido Valencia, then Secretary of Communications, for operating even after their permit has
expired. Valencia claimed that because of CBN’s continued operation sans license and their
continuing operation had caused damages to his department.
Petitioners filed a Petition because of the investigations respondents are conducting due
to the former’s failure to renew their license within the time period alloted. The intention of the
investigation is to find out whether there is ground to disapprove the applications for renewal. It
should be noted that the only reason relied upon by the respondents to be the ground for the
disapproval of the applications is the alleged late filing of the petitions for renewal. The
petitioners claim, on the other hand, that this violation has ceased to exist when the act of late
filing was condoned or pardoned by the respondents by the issuance of the circular dated July 24,
1962 which states that “You (broadcasting corporations) are, therefore, requested to examine
closely your operating practices, permits and licenses and take remedial measures as soon as
possible but not later than August 10, 1962.”

ISSUE:
Whether or not the President’s veto of the conditions of the Appropriations Act of the
Philippine Broadcasting Service General Fund is constitutional.

HELD:
No. The Executive’s veto power does not carry with it the power to strike out conditions
or restrictions. If the veto is unconstitutional, it follows that the same produced no effect
whatsoever, and the restriction imposed by the appropriation bill, therefore, remains. The
appropriation of funds in the operation of PBS provides that it cannot be used for the operation
of television stations in Luzon or in any part of the Philippines where there are already television
stations in operation. Any expenditure made by the intervenor PBS for the purpose of operating a
television station in Manila, where there are already television stations in operation, would be a
violation of the said condition and is consequently null and void. Even if it was able to prove its
right to operate on Channel 9, PBS would not be entitled to a reimbursement of its illegal
expenditures.

Notes:
Under the Constitution, the President has the power to veto any particular item or items
of an appropriation bill. However, when a provision of an appropriation bill affects one or more
items of the same, the President cannot veto the provision without at the same time vetoing the
particular item or items to which it relates. (Art. VI, Sec. 20).