Belgica v. Executive Secretary Facts: History
Belgica v. Executive Secretary Facts: History
Executive Secretary
* FACTS:
HISTORY
In the Philippines, the “pork barrel” (a term of American-English origin) has been commonly referred to
as lump-sum, discretionary funds of Members of the Legislature (“Congressional Pork Barrel”). However,
it has also come to refer to certain funds to the Executive. The “Congressional Pork Barrel” can be traced
from Act 3044 (Public Works Act of 1922), the Support for Local Development Projects during the
Marcos period, the Mindanao Development Fund and Visayas Development Fund and later the
Countrywide Development Fund (CDF) under the Corazon Aquino presidency, and the Priority
Development Assistance Fund (PDAF) under the Joseph Estrada administration, as continued by the
Gloria-Macapagal Arroyo and the present Benigno Aquino III administrations.
All programs/projects, except for assistance to indigent patients and scholarships, identified by a
member of the House of Representatives outside of his/her legislative district shall have the written
concurrence of the member of the House of Representatives of the recipient or beneficiary legislative
district, endorsed by the Speaker of the House of Representatives.
3. Legislator’s Allocation. The Total amount of projects to be identified by legislators shall be as follows:
a. For Congressional District or Party-List Representative: Thirty Million Pesos (P30,000,000) for soft
programs and projects listed under Item A and Forty Million Pesos (P40,000,000) for infrastructure
projects listed under Item B, the purposes of which are in the project menu of Special Provision No. 1;
and
b. For Senators: One Hundred Million Pesos (P100,000,000) for soft programs and projects listed under
Item A and One Hundred Million Pesos (P100,000,000) for infrastructure projects listed under Item B,
the purposes of which are in the project menu of Special Provision No. 1.
Subject to the approved fiscal program for the year and applicable Special Provisions on the use and
release of fund, only fifty percent (50%) of the foregoing amounts may be released in the first semester
and the remaining fifty percent (50%) may be released in the second semester.
4. Realignment of Funds. Realignment under this Fund may only be allowed once. The Secretaries of
Agriculture, Education, Energy, Interior and Local Government, Labor and Employment, Public Works
and Highways, Social Welfare and Development and Trade and Industry are also authorized to approve
realignment from one project/scope to another within the allotment received from this Fund, subject to
the following: (i) for infrastructure projects, realignment is within the same implementing unit and same
project category as the original project; (ii) allotment released has not yet been obligated for the original
project/scope of work; and (iii) request is with the concurrence of the legislator concerned. The DBM
must be informed in writing of any realignment within five (5) calendar days from approval thereof:
PROVIDED, That any realignment under this Fund shall be limited within the same classification of soft or
hard programs/projects listed under Special Provision 1 hereof: PROVIDED, FURTHER, That in case of
realignments, modifications and revisions of projects to be implemented by LGUs, the LGU concerned
shall certify that the cash has not yet been disbursed and the funds have been deposited back to the
BTr.
Any realignment, modification and revision of the project identification shall be submitted to the House
Committee on Appropriations and the Senate Committee on Finance, for favorable endorsement to the
DBM or the implementing agency, as the case may be.
5. Release of Funds. All request for release of funds shall be supported by the documents prescribed
under Special Provision No. 1 and favorably endorsed by the House Committee on Appropriations and
the Senate Committee on Finance, as the case may be. Funds shall be released to the implementing
agencies subject to the conditions under Special Provision No. 1 and the limits prescribed under Special
Provision No. 3.
The “Presidential Pork Barrel” questioned by the petitioners include the Malampaya Fund and the
Presidential Social Fund. The Malampaya Fund was created as a special fund under Section 8,
Presidential Decree (PD) 910 by then-President Ferdinand Marcos to help intensify, strengthen, and
consolidate government efforts relating to the exploration, exploitation, and development of indigenous
energy resources vital to economic growth. The Presidential Social Fund was created under Section 12,
Title IV, PD 1869 (1983) or the Charter of the Philippine Amusement and Gaming Corporation (PAGCOR),
as amended by PD 1993 issued in 1985. The Presidential Social Fund has been described as a special
funding facility managed and administered by the Presidential Management Staff through which the
President provides direct assistance to priority programs and projects not funded under the regular
budget. It is sourced from the share of the government in the aggregate gross earnings of PAGCOR.
* ISSUES:
A. Procedural Issues
1.) Whether or not (WON) the issues raised in the consolidated petitions involve an actual and justiciable
controversy
2.) WON the issues raised in the consolidated petitions are matters of policy subject to judicial review
4.) WON the 1994 Decision of the Supreme Court (the Court) on Philippine Constitution Association v.
Enriquez (Philconsa) and the 2012 Decision of the Court on Lawyers Against Monopoly and Poverty
v. Secretary of Budget and Management (LAMP) bar the re-litigation of the issue of constitutionality of
the “pork barrel system” under the principles of res judicata and stare decisis
4.) …accountability
(a) “and for such other purposes as may be hereafter directed by the President” under Section 8 of PD
910 relating to the Malampaya Funds, and
(b) “to finance the priority infrastructure development projects and to finance the restoration of
damaged or destroyed facilities due to calamities, as may be directed and authorized by the Office of the
President of the Philippines” under Section 12 of PD 1869, as amended by PD 1993, relating to the
Presidential Social Fund,
A. Procedural Issues
No question involving the constitutionality or validity of a law or governmental act may be heard and
decided by the Court unless there is compliance with the legal requisites for judicial inquiry, namely: (a)
there must be an actual case or controversy calling for the exercise of judicial power; (b) the
person challenging the act must have the standing to question the validity of the subject act or issuance;
(c) the question of constitutionality must be raised at the earliest opportunity; and (d) the issue of
constitutionality must be the very lis mota of the case.
As for the PDAF, the Court dispelled the notion that the issues related thereto had been rendered moot
and academic by the reforms undertaken by respondents. A case becomes moot when there is no
more actual controversy between the parties or no useful purpose can be served in passing upon the
merits. The respondents’ proposed line-item budgeting scheme would not terminate the
controversy nor diminish the useful purpose for its resolution since said reform is geared towards the
2014 budget, and not the 2013 PDAF Article which, being a distinct subject matter, remains legally
effective and existing. Neither will the President’s declaration that he had already “abolished the PDAF”
render the issues on PDAF moot precisely because the Executive branch of government has no
constitutional authority to nullify or annul its legal existence.
ii.) The exceptional character of the situation and the paramount public interest is involved: This is
also apparent from the nature of the interests involved – the constitutionality of the very system within
which significant amounts of public funds have been and continue to be utilized and
expended undoubtedly presents a situation of exceptional character as well as a matter of paramount
public interest. The present petitions, in fact, have been lodged at a time when the system’s flaws
have never before been magnified. To the Court’s mind, the coalescence of the CoA Report, the
accounts of numerous whistle-blowers, and the government’s own recognition that reforms are
needed “to address the reported abuses of the PDAF” demonstrates a prima facie pattern
of abuse which only underscores the importance of the matter.
It is also by this finding that the Court finds petitioners’ claims as not merely theorized, speculative or
hypothetical. Of note is the weight accorded by the Court to the findings made by the CoA which is the
constitutionally-mandated audit arm of the government. if only for the purpose of validating the
existence of an actual and justiciable controversy in these cases, the Court deems the findings under
the CoA Report to be sufficient.
iii.) When the constitutional issue raised requires formulation of controlling principles to guide the
bench, the bar, and the public: This is applicable largely due to the practical need for a definitive
ruling on the system’s constitutionality. There is a compelling need to formulate controlling
principles relative to the issues raised herein in order to guide the bench, the bar, and the public,
not just for the expeditious resolution of the anticipated disallowance cases, but more importantly, so
that the government may be guided on how public funds should be utilized in accordance
with constitutional principles.
iv.) The case is capable of repetition yet evading review. This is called for by the recognition that the
preparation and passage of the national budget is, by constitutional imprimatur, an affair of annual
occurrence. The myriad of issues underlying the manner in which certain public funds are spent, if not
resolved at this most opportune time, are capable of repetition and hence, must not evade judicial
review.
2.) YES. The intrinsic constitutionality of the “Pork Barrel System” is not an issue dependent upon the
wisdom of the political branches of government but rather a legal one which the Constitution itself
has commanded the Court to act upon. Scrutinizing the contours of the system along constitutional
lines is a task that the political branches of government are incapable of rendering precisely because it is
an exercise of judicial power. More importantly, the present Constitution has not only vested the
Judiciary the right to exercise judicial power but essentially makes it a duty to proceed therewith
(Section 1, Article VIII of the 1987 Constitution).
3. YES. Petitioners have sufficient locus standi to file the instant cases. Petitioners have come before the
Court in their respective capacities as citizen-taxpayers and accordingly, assert that they “dutifully
contribute to the coffers of the National Treasury.” As taxpayers, they possess the requisite standing to
question the validity of the existing “Pork Barrel System” under which the taxes they pay have been
and continue to be utilized. They are bound to suffer from the unconstitutional usage of public funds, if
the Court so rules. Invariably, taxpayers have been allowed to sue where there is a claim that public
funds are illegally disbursed or that public money is being deflected to any improper purpose, or that
public funds are wasted through the enforcement of an invalid or unconstitutional law, as in these cases.
Moreover, as citizens, petitioners have equally fulfilled the standing requirement given that the issues
they have raised may be classified as matters “of transcendental importance, of overreaching
significance to society, or of paramount public interest.” The CoA Chairperson’s statement during the
Oral Arguments that the present controversy involves “not [merely] a systems failure” but a “complete
breakdown of controls” amplifies the seriousness of the issues involved. Indeed, of greater import than
the damage caused by the illegal expenditure of public funds is the mortal wound inflicted upon the
fundamental law by the enforcement of an invalid statute.
4.) NO. On the one hand, res judicata states that a judgment on the merits in a previous case rendered
by a court of competent jurisdiction would bind a subsequent case if, between the first and second
actions, there exists an identity of parties, of subject matter, and of causes of action. This required
identity is not attendant hereto since Philconsa and LAMP involved constitutional challenges against
the 1994 CDF Article and 2004 PDAF Article respectively. However, the cases at bar call for a broader
constitutional scrutiny of the entire “Pork Barrel System”. Also, the ruling in LAMP is essentially a
dismissal based on a procedural technicality – and, thus, hardly a judgment on the merits. Thus, res
judicata cannot apply.
On the other hand, the doctrine of stare decisis is a bar to any attempt to re-litigate where
the same questions relating to the same event have been put forward by the parties similarly situated
as in a previous case litigated and decided by a competent court. Absent any powerful
countervailing considerations, like cases ought to be decided alike. Philconsa was a limited response to
a separation of powers problem, specifically on the propriety of conferring post-enactment
identification authority to Members of Congress. On the contrary, the present cases call for a more
holistic examination of (a) the inter-relation between the CDF and PDAF Articles with each
other, formative as they are of the entire “Pork Barrel System” as well as (b) the intra-relation of post-
enactment measures contained within a particular CDF or PDAF Article, including not only those related
to the area of project identification but also to the areas of fund release and realignment.
The complexity of the issues and the broader legal analyses herein warranted may be, therefore,
considered as a powerful countervailing reason against a wholesale application of the stare decisis
principle.
In addition, the Court observes that the Philconsa ruling was actually riddled with inherent
constitutional inconsistencies which similarly countervail against a full resort to stare decisis. Since
the Court now benefits from hindsight and current findings (such as the CoA Report), it must partially
abandon its previous ruling in Philconsa insofar as it validated the post-enactment identification
authority of Members of Congress on the guise that the same was merely recommendatory.
Again, since LAMP was dismissed on a procedural technicality and, hence, has not set any controlling
doctrine susceptible of current application to the substantive issues in these cases, stare decisis would
not apply.
In addition to declaring the 2013 PDAF Article as well as all other provisions of law which similarly
allow legislators to wield any form of post-enactment authority in the implementation or enforcement
of the budget, the Court also declared that informal practices, through which legislators have
effectively intruded into the proper phases of budget execution, must be deemed as acts of grave
abuse of discretion amounting to lack or excess of jurisdiction and, hence, accorded the
same unconstitutional treatment.
2.) YES. The 2013 PDAF Article violates the principle of non-delegability since legislators are effectively
allowed to individually exercise the power of appropriation, which, as settled in Philconsa, is lodged in
Congress. The power to appropriate must be exercised only through legislation, pursuant to Section
29(1), Article VI of the 1987 Constitution which states: “No money shall be paid out of the Treasury
except in pursuance of an appropriation made by law.” The power of appropriation, as held by the
Court in Bengzon v. Secretary of Justice and Insular Auditor, involves (a) setting apart by law a certain
sum from the public revenue for (b) a specified purpose. Under the 2013 PDAF Article,
individual legislators are given a personal lump-sum fund from which they are able to dictate (a) how
much from such fund would go to (b) a specific project or beneficiary that they themselves also
determine. Since these two acts comprise the exercise of the power of appropriation as described
in Bengzon, and given that the 2013 PDAF Article authorizes individual legislators to perform the same,
undoubtedly, said legislators have been conferred the power to legislate which the Constitution does
not, however, allow.
Even without its post-enactment legislative identification feature, the 2013 PDAF Article would remain
constitutionally flawed since the lump-sum amount of P24.79 Billion would be treated as a mere
funding source allotted for multiple purposes of spending (i.e. scholarships, medical missions,
assistance to indigents, preservation of historical materials, construction of roads, flood control,
etc). This setup connotes that the appropriation law leaves the actual amounts and purposes of the
appropriation for further determination and, therefore, does not readily indicate a discernible item
which may be subject to the President’s power of item veto.
The same lump-sum budgeting scheme has, as the CoA Chairperson relays, “limit[ed] state auditors from
obtaining relevant data and information that would aid in more stringently auditing the utilization of
said Funds.” Accordingly, she recommends the adoption of a “line by line budget or amount per
proposed program, activity or project, and per implementing agency.”
4.) YES. To a certain extent, the conduct of oversight would be tainted as said legislators, who are
vested with post-enactment authority, would, in effect, be checking on activities in which they
themselves participate. Also, this very same concept of post-enactment authorization runs afoul of
Section 14, Article VI of the 1987 Constitution which provides that: “…[A Senator or Member of the
House of Representatives] shall not intervene in any matter before any office of the Government for his
pecuniary benefit or where he may be called upon to act on account of his office.” Allowing legislators to
intervene in the various phases of project implementation renders them susceptible to taking undue
advantage of their own office.
The Court, however, cannot completely agree that the same post-enactment authority and/or the
individual legislator‘s control of his PDAF per se would allow him to perpetuate himself in office. Indeed,
while the Congressional Pork Barrel and a legislator‘s use thereof may be linked to this area of interest,
the use of his PDAF for re-election purposes is a matter which must be analyzed based on particular
facts and on a case-to-case basis.
Also, while the Court accounts for the possibility that the close operational proximity between
legislators and the Executive department, through the former’s post-enactment participation, may
affect the process of impeachment, this matter largely borders on the domain of politics and does not
strictly concern the Pork Barrel System’s intrinsic constitutionality. As such, it is an improper subject of
judicial assessment.
5.) NO. Section 26, Article II of the 1987 Constitution is considered as not self-executing due to the
qualifying phrase “as may be defined by law.” In this respect, said provision does not, by and of
itself, provide a judicially enforceable constitutional right but merely specifies a guideline for legislative
or executive action. Therefore, since there appears to be no standing law which crystallizes the policy on
political dynasties for enforcement, the Court must defer from ruling on this issue.
In any event, the Court finds the above-stated argument on this score to be largely speculative since it
has not been properly demonstrated how the Pork Barrel System would be able to propagate political
dynasties.
6.) YES. The Court, however, finds an inherent defect in the system which actually belies the avowed
intention of “making equal the unequal” (Philconsa, 1994). The gauge of PDAF and CDF
allocation/division is based solely on the fact of office, without taking into account the specific
interests and peculiarities of the district the legislator represents. As a result, a district representative
of a highly-urbanized metropolis gets the same amount of funding as a district representative of a far-
flung rural province which would be relatively “underdeveloped” compared to the former. To add, what
rouses graver scrutiny is that even Senators and Party-List Representatives – and in some years, even
the Vice-President – who do not represent any locality, receive funding from the Congressional Pork
Barrel as well.
The Court also observes that this concept of legislator control underlying the CDF and PDAF conflicts
with the functions of the various Local Development Councils (LDCs) which are already legally mandated
to “assist the corresponding sanggunian in setting the direction of economic and social development,
and coordinating development efforts within its territorial jurisdiction.” Considering that LDCs are
instrumentalities whose functions are essentially geared towards managing local affairs, their programs,
policies and resolutions should not be overridden nor duplicated by individual legislators, who are
national officers that have no law-making authority except only when acting as a body.
YES. Regarding the Malampaya Fund: The phrase “and for such other purposes as may be hereafter
directed by the President” under Section 8 of PD 910 constitutes an undue delegation of legislative
power insofar as it does not lay down a sufficient standard to adequately determine the limits of the
President’s authority with respect to the purpose for which the Malampaya Funds may be used. As it
reads, the said phrase gives the President wide latitude to use the Malampaya Funds for any other
purpose he may direct and, in effect, allows him to unilaterally appropriate public funds beyond the
purview of the law.
That the subject phrase may be confined only to “energy resource development and exploitation
programs and projects of the government” under the principle of ejusdem generis, meaning that the
general word or phrase is to be construed to include – or be restricted to – things akin to, resembling, or
of the same kind or class as those specifically mentioned, is belied by three (3) reasons: first, the phrase
“energy resource development and exploitation programs and projects of the government” states a
singular and general class and hence, cannot be treated as a statutory reference of specific things from
which the general phrase “for such other purposes” may be limited; second, the said phrase also
exhausts the class it represents, namely energy development programs of the government; and,
third, the Executive department has used the Malampaya Funds for non-energy related purposes
under the subject phrase, thereby contradicting respondents’ own position that it is limited only to
“energy resource development and exploitation programs and projects of the government.”
However, the rest of Section 8, insofar as it allows for the use of the Malampaya Funds “to finance
energy resource development and exploitation programs and projects of the government,” remains
legally effective and subsisting.
Regarding the Presidential Social Fund: Section 12 of PD 1869, as amended by PD 1993, indicates that
the Presidential Social Fund may be used “to [first,] finance the priority infrastructure development
projects and [second,] to finance the restoration of damaged or destroyed facilities due to calamities, as
may be directed and authorized by the Office of the President of the Philippines.”
The second indicated purpose adequately curtails the authority of the President to spend the
Presidential Social Fund only for restoration purposes which arise from calamities. The first indicated
purpose, however, gives him carte blanche authority to use the same fund for any infrastructure
project he may so determine as a “priority“. Verily, the law does not supply a definition of “priority
infrastructure development projects” and hence, leaves the President without any guideline to
construe the same. To note, the delimitation of a project as one of “infrastructure” is too broad of
a classification since the said term could pertain to any kind of facility. Thus, the phrase “to finance the
priority infrastructure development projects” must be stricken down as unconstitutional since –
similar to Section 8 of PD 910 – it lies independently unfettered by any sufficient standard of the
delegating law. As they are severable, all other provisions of Section 12 of PD 1869, as amended by
PD 1993, remains legally effective and subsisting.
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GR No. 42821, Jan 18, 1936 ]
MALCOLM, J.:
This case was brought by a former justice of the peace to test the validity of
the veto by the Governor-General of section 7 of Act No. 4051, the
Retirement Gratuity Law. In the trial court the petition for a writ of
mandamus directed to the Secretary of Justice and the Insular Auditor was
dismissed. Thereupon the losing party appealed.
The facts, as stipulated disclose the following: Juan Bengzon, the
petitioner was appointed justice of the peace for the municipality of
Lingayen, Pangasinan, on March 7, 1912. Having reached the age of sixty-
five, he ceased to hold this position on January 14, 1933, by reason of the
provisions of Act No. 3899. On that date, acting pursuant to instructions
received from the Judge of First Instance for the district, he turned over
the office of justice of the peace to the auxiliary justice of the peace of the
municipality. Subsequently the petitioner addressed communications to
the Secretary of Justice, the Governor-General, and the Insular Auditor
applying for gratuity under Act No. 4051, but all of these officials advised
him that he was not entitled to the benefits of the Act. Accordingly, on
March 7, 1934, the instant complaint was filed with the Court of First
Instance of Manila.
Act No. 4051 is entitled, "An Act to provide for the payment of retirement
gratuities to officers and employees of the Insular Government retired
from the service as a result of the reorganization or reduction of personnel
thereof, including the justices of the peace who must relinquish office in
accordance with the provisions of Act Numbered Thirty-eight hundred
and ninety-nine, and for other purposes." The body of the Act provides in
several sections for the officers and employees who may be granted
gratuities thereunder, the rates of gratuities to be paid, and other matters.
Among these sections, as the bill passed the Philippine Legislature, was
section 7, reading: "The justices of the peace who must relinquish office
during the year nineteen hundred and thirty-three in accordance with the
provisions of Act Numbered Thirty-eight hundred and ninety-nine, shall
also be entitled to the gratuities provided for in this Act." Following this
is section 10, reading: "The necessary sum to carry out the purposes of this
Act is hereby appropriated out of any funds in the Insular Treasury not
otherwise appropriated/' and section 12 reading: "If, for any reason, any
section or provision of this Act is disapproved by the Governor-General or
is challenged in a competent court and is held to be unconstitutional or
invalid, none of the other sections or provisions hereof shall be affected
thereby and such other sections and provisions shall continue to govern
as if the section or provision so disapproved or held invalid had never
been incorporated in this Act." The Act was "approved" by the Governor-
General, "section 7 excepted, February 21, 1933." The Philippine
Legislature accepted the veto.
Section 19 of the former Organic Act, the Act of Congress of August 29,
1916, established the practice for the enactment of a law, including the
sanctioning of the veto power by the Governor-General. Specifically it
provided: "The Governor-General shall have the power to veto any
particular item or items of an appropriation bill, but the veto shall not
affect the item or items to which he does not object" The Constitution of
the Philippines, article VI, section 11 (2) contains an exactly similar
provision, except that the words "The President" are substituted for the
words "The Governor-General," and except that succeeding sentences in the
Constitution prescribed the procedure for vetoing one or more items of an
appropriation bill in a more explicit manner.
The first thought that occurs to one in resolving the appeal of the
petitioner is that, within the meaning of section 7 of Act No. 4051, on the
assumption that it be restored to the law by the judiciary, he has not shown
himself to be a justice of the peace who was forced to relinquish office
during the year 1933. At least, he did not take steps to vindicate an alleged
right as did the justices of the peace of the municipality of Malinao, Albay,
and the municipality of Alabat, Tayabas. (Regalado vs. Yulo [1935], 61
Phil., 173; Tanada vs. Yulo [1935], 61 Phil., 515.) However, this point
has not been advanced by the Government either in the lower court or on
appeal, and so it would seem to be inappropriate to manufacture a defense
for the respondents.
Something might also be made of the proposition on which the trial judge
relied for dismissal and which is brought info view by the first assigned
error. In other words, since the duty which the petitioner claims is
enjoined by law upon the respondents not only does not exist but would
require the intervention of the Governor-General, who is not a party, to
exist, no cause of action is made out. This, however, merely results in
hiding behind a technicality to keep the parties from securing the opinion
of the courts on the main issue. We prefer to satisfy the petitioner by
ruling on the question suggested by the first sentence of this decision and
which is raised squarely by the. second assigned error.
Within the meaning of these words, is Act No. 4051 an appropriation bill?
Are there particular items in that bill which the Governor-General could
constitutionally veto? We are led to answer both questions in the
affirmative.
The former Organic Act and the present Constitution of the Philippines
make the Chief Executive an integral part of the law-making power. His
disapproval of a bill, commonly known as a veto, is essentially a legislative
act. The questions presented to the mind of the Chief Executive are
precisely the same as those the legislature must deter- mine in passing a
bill, except that his will be a broader point of view.
Viewed from another direction, there can be no doubt that Act No. 4051 is
an appropriation bill. That is manifest from its provisions, and particularly
from section 10 by which the necessary sum to carry out the purposes of
the Act was "hereby appropriated out of any funds in the Insular Treasury
not otherwise appropriated." It has, how- ever, been faintly suggested that
by an appropriation bill is meant a general appropriation bill. We are
shown nothing substantial to support this allegation. Unlike in other
constitutions, the word "general" was omitted, and we presume
intentionally, from the Organic Act and the Constitution. Under such
conditions, the courts would not be authorized to insert a word and by so
doing amend the law.
The same considerations hold true with regard to the question of whether
or not there was a particular item which the Governor-General could
validly veto. No further action by the Legislature was contemplated. The
accounting officers would have experienced no difficulty in setting up the
different items provided for under Act No. 4051. It would have been a facile
matter to eliminate the money needed to make section 7 thereof effective.
The Chief Executive had the right to object to the expenditure of money for
a specified purpose and amount without being under the necessity of at the
same time refusing to agree to other expenditures which met with his entire
approval, and that intention was unequivocably expressed.
We have gone to the trouble to examine all of the authorities cited by the
parties and other authorities not brought to our attention by them. It will
be found that in practically all of these cases there was a conflict between
the legislative and executive departments which the judiciary had to
decide. Here there is no such conflict, but unison between the two. Here
on the contrary the judiciary is asked to take the initiative and to restore
a section to a law against the explicit confirmation of executive authority by
the Legislature and against explicit action taken by the Chief Executive. In
our opinion, it was never intended by a mere process of reasoning, however
plausible, for the courts to breathe life into a portion of an Act which has
not been given life by the other departments of the government acting in
conformity with the Constitution.
Deciding, therefore, the main issue as requested by the petitioner and
appellant, we are constrained to rule against him and to hold that the veto
by the Governor-General of section 7 of Act No. 4051 was in conformity
with the legislative purpose and the provisions of the Organic Act. For this
reason, the judgment brought on appeal will be affirmed, without special
pronouncement as to the costs in either instance.
DISSENTING OPINION
VILLA-REAL, J., :
The phrase "any particular item or items of an appropriation bill" used in
section 19 of the Jones Law refers to an appropriation bill which is
composed of several items of appropriation and not to one. which contains
only an item of appropriation.
Act No. 4051, as its title indicates, is "An Act to provide for the payment of
retirement gratuities to officers and employees of the Insular Government
retired from the service as a result of the reorganization or reduction of
personnel thereof, including the justices of the peace who must relinquish
office in accordance with the provisions of Act Numbered Thirty-eight
hundred and ninety-nine, and for other purposes." In other words, said
Act is a gratuity law, appropriating in its section 10 the necessary sum to
pay the gratuities therein granted.
Paragraphs (a), (b), and (c) of section 1 classify the officers and employees
who shall be entitled to gratuity and establish the rate thereon according to
salary and years of service.
Section 4 gives the separated or retired employee and officer the choice
between the present gratuity law and other gratuity laws under which they
may be entitled to gratuity.
Section 8 provides that the offices and positions created shall be
considered abolished ipso facto, with certain exceptions.
Section 9 excludes from the benefit of the law officers and employees who
have voluntarily retired.
Section 11 fixes the date on which the law shall take effect.
It will be seen that none of the sections above enumerated, except section
10, contains any appropriation of money.
All the twelve sections of Act No. 4051, with the exception of section 10,
contain only conditions under which the money appropriated in said
section 10 may be paid. If this is true, the vetoing by the Governor-
General of section 7 which extends the gratuity payment in said law to
justices of the peace is unauthorized by the Constitution because, as stated
above, it contains no appropriation of money but a mere designation of the
officers to whom the money appropriated may be paid.
In the case of State vs. Holder (76 Miss., 168; 28 So. Rep., 643), the
question was whether the following endorsement and qualified approval of
"An act to appropriate money for the support and maintenance of the
Industrial Institute and College for the years 1898 and 1899," was
constitutional or not:
" 'I approve that part of this bill preceding the word "provided," in the first
section; and approve the suggestion in said section that by-laws provide for
equal dormitory privileges to all pupils, whether taking industrial or
academic courses, single or together; and I approve that part of said
section providing for the expenditures of said money under the direction or
approval of the trustees, and for report thereof to the legislature; and I
approve section 2. The other parts, by authority of section 73 of the state
constitution, I disapprove. * * *"
"Sec. 73. The governor may veto parts of any appropriation bill, and
approve parts of the same and the portions approved shall be law."
"An act to appropriate money for the support and maintenance of the
Industrial Institute and College for the years 1898 and 1899.
"All of said amounts to be drawn by draft of the president of the college,
approved by the governor and the auditor of public accounts, and the
auditor shall issue his warrant on the state treasurer for the said several
sums: provided that no part of the money hereby appropriated for wages
or salaries shall be available unless the board of trustees shall first adopt
and enact rules and by-laws to the following effect: First. Conferring upon
the president of the college the power to recommend to the board of
trustees all the teachers who may hereafter be employed, and to select and
remove other employees who are not teachers, and giving the president
the authority for sufficient cause in his discretion to remove or suspend
any member of the faculty subject to the approval of the trustees. Second.
Conferring upon the president of the college subject to the approval of the
trustees to arrange and specify the course of study and to fix the schedules
of studies and classes and to establish rules of discipline for the
government of the pupils. Third. By-laws providing for equal dormitory
privileges to all pupils whether taking industrial or academic courses, singly
or together, and by-laws to enforce the faithful discharge of duties of all
officers, professors or employees, and before the auditor shall issue any
warrant under this act, the board of trustees shall file with the auditor a
certified copy of their action complying with the above conditions. All of
said money to be expended under the direction or approval of the trustees
of the college, and a report of the expenditures made to the legislature."
In deciding the case the Supreme Court of Mississippi said in part the
following:
The same court, in another portion of the decision, said the following:
"* * * The signing of the bill by the governor was qualified in the act
and on the enrolled bill, and did not become law in part, because it was
not an approval of parts and disapproval of parts of such a bill, as is in
view in section 73 of the constitution; the bill in this case, in the parts
vetoed, not being an appropriation bill, within its meaning, and not being
a veto of parts of distinct and separable appropriations. To hold that the
bill became law as a whole would be to make it so without the governor's
approval, and in the face of his disapproval, of the conditions. Both
legislative declaration and executive approval are essential prerequisites to
the enactment of any law.
On the same principle and for the same reason the veto of the Governor-
General of section 7 of Act No. 4051 which is not an item of appropriation is
null and void as in excess of the power granted to him by section 19 of the
Jones Law.
The fact that section 12 of Act No. 4051 has provided that "If, for any
reason, any section or provision of this Act is disapproved by the Governor-
General or is challenged in a competent court and is held to be
unconstitutional or invalid, none of the other sections or provisions hereof
shall be affected thereby and such other sections and provisions shall
continue to govern as if the section or provision so disapproved or held
invalid had never been incorporated in this Act," could not have rendered
valid and constitutional the disapproval by the Governor-General of said
section 7; for the only power which the legislature has in case a bill is vetoed
by the Governor-General is to override said veto by a two-third vote of its
members and it cannot ratify or validate an invalid veto because of its
unconstitutionality.
It is, therefore, the opinion of the undersigned that the decision of the
lower court should be reversed and the writ granted.
FACTS:
PANTRANCO, a holder of an existing Certificate of Public Convenience is applying to operate
additional buses with the Public Service Commission (PSC) has been engaged in transporting
passengers in certain provinces by means of public transportation utility. Patranc applied for
authorization to operate 10 additional trucks. The PSC granted the application but added several
conditions for PANTRANCO’s compliance. One is that the service can be acquired by
government upon payment of the cost price less depreciation, and that the certificate shall be
valid only for a definite period of time.
ISSUE:
Whether or not PSC can impose said conditions. If so, wouldn’t this power of the PSC constitute
undue delegation of powers?
RULING:
The theory of the separation of powers is designed by its originators to secure action at the same
time forestall overaction which necessarily results from undue concentration of powers and
thereby obtain efficiency and prevent deposition. But due to the growing complexity of modern
life, the multiplication of subjects of governmental regulation and the increased difficulty of
administering laws, there is a constantly growing tendency toward the delegation of greater
powers by the legislature, giving rise to the adoption, within certain limits, of the principle of
“subordinate legislation.”
All that has been delegated to the Commission is the administrative function, involving the use
of discretion to carry out the will of the National Assembly having in view, in addition, the
promotion of public interests in a proper and suitable manner.
CASE NAME: BENGZON VS. THE SEC. OF JUSTICE
GR Number/ Case Date:
L-42821 / January 18, 1936
Ponente:
Malcolm, J.
Petitioners:
Juan Bengzon
Respondents:
Secretary of Justice and Insular Auditor
Subject:
Consti 1
Topic:
Legislative Process
Rule of Law:
● Act No. 4051, Section 7
. "The justices of the peace who must relinquish office during the yearnineteen hundred and
thirty-three in accordance with the provisions of Act Numbered Thirty-eighthundred and ninety-
nine, shall also be entitled to the gratuities provided for in this Act."
●Section 19 of the Organic Act and Article VI, Section 11 (2) of the 1935 Constitution
. "TheGovernor-
General (or President, in the ’35 Consti) shall have the power to veto any particular item or
items of an appropriation bill, but the object."
Doctrine:
●“The courts will indulge every intendment in favor of the constitutionality of a veto the same as
theywill presume the constitutionality of an act as originally passed by the Legislature.”
Facts:
●Petitioner was appointed justice of the peace for Lingayen, Pangasinan.
●Act No. 3899 compelled him to cease holding such position upon reaching the age of 65 on Jan
14,1933.
●He applied for gratuity under Act No. 4051, but was told that he wasn’t entitled thereto.
●Act No. 4051 (An Act to Provide for the Payment of Retirement Gratuities to Officers and
Employees
of the Insular Government…) was approved by the Governor
-General, exercising his veto powers onsection 7. The Philippine Legislature accepted the veto.
Issues and Holding
:
Is Act No. 4051 an appropriation bill on which the Gov. Gen. or President can exercise his
right to veto?
YES.
It is with regard to the appropriation of funds in the Insular Treasury. Moreover, a section of the
Act provides for the qualif
ication that the President’s veto of one portion thereof should not affect the rest of the un
-
vetoed sections. Such anticipation of the President’s veto implies the existence of such power to
veto.
The legislature, by not opposing such veto, expressed acquiescence thereto.
Ruling:
The veto of section 7 of Act No. 40151 was VALID.
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G.R. No. 208566 November 19, 2013 BELGICA vs.
HONORABLE EXECUTIVE SECRETARY PAQUITO N.
OCHOA JR, et al, Respondents
G.R. No. 208566 November 19, 2013
GRECO ANTONIOUS BEDA B. BELGICA JOSE M. VILLEGAS JR. JOSE L. GONZALEZ REUBEN M.
ABANTE and QUINTIN PAREDES SAN DIEGO, Petitioners,
vs.
HONORABLE EXECUTIVE SECRETARY PAQUITO N. OCHOA JR, et al, Respondents
PERLAS-BERNABE, J.:
NATURE:
These are consolidated petitions taken under Rule 65 of the Rules of Court, all of which assail the
constitutionality of the Pork Barrel System.
FACTS:
The NBI Investigation was spawned by sworn affidavits of six (6) whistle-blowers who declared that JLN
Corporation (Janet Lim Napoles) had swindled billions of pesos from the public coffers for "ghost projects"
using dummy NGOs. Thus, Criminal complaints were filed before the Office of the Ombudsman, charging
five (5) lawmakers for Plunder, and three (3) other lawmakers for Malversation, Direct Bribery, and
Violation of the Anti-Graft and Corrupt Practices Act. Also recommended to be charged in the complaints
are some of the lawmakers’ chiefs -of-staff or representatives, the heads and other officials of three (3)
implementing agencies, and the several presidents of the NGOs set up by Napoles.
Whistle-blowers alleged that" at least P900 Million from royalties in the operation of the Malampaya gas
project off Palawan province intended for agrarian reform beneficiaries has gone into a dummy NGO.
Several petitions were lodged before the Court similarly seeking that the "Pork Barrel System" be
declared unconstitutional
G.R. No. 208493 – SJS filed a Petition for Prohibition seeking that the "Pork Barrel System" be declared
unconstitutional, and a writ of prohibition be issued permanently
G.R. No. 208566 - Belgica, et al filed an Urgent Petition For Certiorari and Prohibition With Prayer For
The Immediate Issuance of Temporary Restraining Order and/or Writ of Preliminary Injunction seeking
that the annual "Pork Barrel System," presently embodied in the provisions of the GAA of 2013 which
provided for the 2013 PDAF, and the Executive‘s lump-sum, discretionary funds, such as the Malampaya
Funds and the Presidential Social Fund, be declared unconstitutional and null and void for being acts
constituting grave abuse of discretion. Also, they pray that the Court issue a TRO against respondents
UDK-14951 – A Petition filed seeking that the PDAF be declared unconstitutional, and a cease and desist
order be issued restraining President Benigno Simeon S. Aquino III (President Aquino) and Secretary
Abad from releasing such funds to Members of Congress
ISSUES:
1. Whether or not the 2013 PDAF Article and all other Congressional Pork Barrel Laws similar thereto are
unconstitutional considering that they violate the principles of/constitutional provisions on (a) separation of
powers; (b) non-delegability of legislative power; (c) checks and balances; (d) accountability; (e) political
dynasties; and (f) local autonomy.
2. Whether or not the phrases (under Section 8 of PD 910,116 relating to the Malampaya Funds, and under
Section 12 of PD 1869, as amended by PD 1993, relating to the Presidential Social Fund, are
unconstitutional insofar as they constitute undue delegations of legislative power.
HELD:
1. Yes, the PDAF article is unconstitutional. The post-enactment measures which govern the areas of
project identification, fund release and fund realignment are not related to functions of congressional
oversight and, hence, allow legislators to intervene and/or assume duties that properly belong to the
sphere of budget execution. This violates the principle of separation of powers. Congress‘role must be
confined to mere oversight that must be confined to: (1) scrutiny and (2) investigation and monitoring of
the implementation of laws. Any action or step beyond that will undermine the separation of powers
guaranteed by the constitution.
Thus, the court declares the 2013 pdaf article as well as all other provisions of law which similarly allow
legislators to wield any form of post-enactment authority in the implementation or enforcement of the
budget, unrelated to congressional oversight, as violative of the separation of powers principle and thus
unconstitutional.
2. Yes. Sec 8 of PD 910- the phrase “and for such other purposes as may be hereafter directed by the
President”‖ constitutes an undue delegation of legislative power insofar as it does not lay down a
sufficient standard to adequately determine the limits of the President‘s authority with respect to the
purpose for which the Malampaya Funds may be used. It gives the President wide latitude to use the
Malampaya Funds for any other purpose he may direct and, in effect, allows him to unilaterally
appropriate public funds beyond the purview of the law.”
(b) "to finance the priority infrastructure development projects” was declared constitutional. IT
INDICATED PURPOSE ADEQUATELY CURTAILS THE AUTHORITY OF THE PRESIDENT TO SPEND
THE PRESIDENTIAL SOCIAL FUND ONLY FOR RESTORATION PURPOSES WHICH ARISE FROM
CALAMITIES.
(b)” and to finance the restoration of damaged or destroyed facilities due to calamities, as may be
directed and authorized by the Office of the President of the Philippines” was declared
unconstitutional.IT GIVES THE PRESIDENT CARTE BLANCHE AUTHORITY TO USE THE SAME
FUND FOR ANY INFRASTRUCTURE PROJECT HE MAY SO DETERMINE AS A ―PRIORITY‖.
VERILY, THE LAW DOES NOT SUPPLY A DEFINITION OF ―PRIORITY INFRASTRUCTURE
DEVELOPMENT PROJECTS‖ AND HENCE, LEAVES THE PRESIDENT WITHOUT ANY GUIDELINE
TO CONSTRUE THE SAME.