ASYNCHRONOUS JANUARY 21

The Chairman and Executive Director, Palawan Council for Sustainable Development
vs Ejercito Lim, G.R. No. 183173
August 24, 2016

Facts:
Executive Director and Chairman of the Palawan Council for Sustainable Development (PCSD),
the petitioners, were the public officials whose duty is to implement A.O. No. 00-05 and the
Notice of Violation and Show Cause Order. Subsequently, the operator of Bonanza Air Services,
the respondent, whose duty is to transport live fish from Palawan to fish traders.
PCSD issued A.O. No. 00-05 in order to allow only traders carriers to do their operations by
securing an accreditation by the mentioned agency. In here, the respondent failed to secure the
accreditation required by the PCSD. Thus, the PSCD Chairman urged the clients of the
respondent by issuing a memorandum that contains sanctions to those unaccredited carriers.
The respondent then, sent a grievance letter to the office wherein the Chairman reinstated that the
respondent must comply with the PCSD requirement. However, the respondent continued his
business operations and had 19 flights resulting to a Notice of Violation and Show Cause Order
by the PCSD.
Consequently, the respondent filed a petition for prohibition in the CA wherein it issued a
temporary restraining order. As a counter, the petitioners probed that it should be dismissed since
the A.O. No. 00-05 was a mandate of the Constitution and of Republic Act No. 7611. Then, the
respondent filed another petition stating his income loss whereby, the petition was granted by the
CA.

Issue:
WON the PCSD’s issuance of Administrative Order No. 005-05 is an encroachment of the
legislative function of the Sangguniang Panlalawigan of Palawan

Ruling:
No. The Court ruled that PCSD was correct in issuing the Administrative Order No. 00-05 and
has the power to exercise its quasi-legislative function. According to R.A. No. 7611, it states the
power and functions of the PCSD in order to successfully implement the provisions on the
mentioned Act. Moreover, the PCSD had the explicit authority to fill in the details to execute the
objectives of R.A. No. 7611 and it was also given the authority to impose necessary sanctions
and penalties based on the Strategic Environmental Plan (SEP). As such, the PCSD's issuance of
A.O. No. 00-05 and Resolution No. 03-211 was well within its statutory authority. Wherefore,
the Court grants the petition for review on certiorari.
1) Who has the power to create administrative agencies?
Administrative agencies can be created through constitutional provisions which grants them
powers. Moreover, it can also be created through the laws that are passed by Congress which
grants them a charter. Finally, the executive especially investigative agencies can also create
administrative agencies.

2) What are the different rules an administrative agency can make?

The administrative agency is vested to have a rule making power that implements the law
entrusted to enforce. This power includes the power to amend, revise, alter, or repeal its rules and
regulations. To substantiate, the rule-making powers are classified into the following: (a)
Supplementary or detailed legislation or rule-making by reason of particular delegation of
authority; (b) Interpretative legislation or rule-making by the construction and interpretation of a
statute being administered; and (c) Contingent legislation or determination, under delegated
power, whether a statute shall go into effect.

3) Can administrative agencies enforce the rules they make?

Yes. Since administrative agencies has three functions namely: executive, quasi-legislative, and
quasi-judicial functions, they can enforce laws and regulations, create new regulations through
the rulemaking process, and conduct adjudicatory proceedings involving violations of laws or
regulations.

4) Are administrative agencies vested with investigative powers?

Yes. Its investigative power includes the power of an administrative agency to inspect the
records and premises, and investigate the activities of persons or entities under its jurisdiction, or
to secure, or to require the disclosure of information through accounts, records, reports,
statements, testimony of witnesses, and production of documents.