Professional Documents
Culture Documents
1 - Pambansang Koalisyong NG Mga Samahang Magsasaka at Manggagawa Sa Niyugan vs. Executive
1 - Pambansang Koalisyong NG Mga Samahang Magsasaka at Manggagawa Sa Niyugan vs. Executive
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* EN BANC.
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ABAD, J.:
These are consolidated petitions to declare
unconstitutional certain presidential decrees and executive
orders of the martial law era relating to the raising and use
of coco-levy funds.
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1 Entitled An Act Instituting a Coconut Investment Fund and Creating
a Coconut Investment Company for the Administration Thereof.
2 Id., Section 2.
3 Id.
4 Id., Section 8.
5 Entitled Establishing A Coconut Consumers Stabilization Fund.
6 Id., Section 1(a).
7 Id., Section 2.
8 Entitled Further Amending Presidential Decree No. 232, As
Amended.
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9 Id., Section 3-B(c).
10 Id., Section 3-B.
11 Supra note 9.
12 Entitled Approving the Credit Policy for the Coconut Industry as
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16 Entitled An Act to Codify the Laws Dealing with the Development
of the Coconut and Other Palm Oil Industry and for Other Purposes.
17 Id., Article III, Section 9.
18 Id., Article III, Section 10.
19 Id., Article III, Section 5.
20 Entitled Revising Presidential Decree Numbered Nine Hundred
Sixty One.
21 Entitled An Act Suspending the Collection of the Coconut
Consumers Stabilization Fund Levy and Similar Levies and Providing in
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24 Id., Section 1.
25 Entitled Establishing the Erap’s Sagip Niyugan Program as an
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28 Id.
29 Id., Section 5.
30 Entitled Rationalizing the Use of the Coconut Levy Funds by
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33 Id., Section 6.
34 Id., Section 13.
35 Id., Section 14.
36 http://www.afrim.org.ph/Archives/2001/BusinessWorld/September/17/Estrada%20s%20EOs%20creating%20coco%20levy%20
trust%20fund%20challenged.txt (last accessed July 8, 2011).
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Procedurally –
1. Whether or not petitioners’ special civil actions of
certiorari under Rule 65 constituted the proper remedy for
their actions; and
2. Whether or not petitioners have legal standing to
bring the same to court.
On the substance –
3. Whether or not the coco-levy funds are public funds;
and
4. Whether or not (a) Section 2 of P.D. 755, (b) Article
III, Section 5 of P.D.s 961 and 1468, (c) E.O. 312, and (d)
E.O. 313 are unconstitutional.
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37 Macalintal v. Commission on Elections, 453 Phil. 586, 625; 405
SCRA 614, 626 (2003).
38 1987 Constitution, Article VIII, Section 5. The Supreme Court shall
have the following powers:
(1) Exercise original jurisdiction over cases affecting ambassadors,
other public ministers and consuls, and over petitions for certiorari,
prohibition, mandamus, quo warranto, and habeas corpus.
(2) Review, revise, modify, or affirm on appeal or certiorari, as the law
or the Rules of Court may provide, final judgments and orders of lower
courts in:
(a) All cases in which the constitutionality or validity of any
treaty, international or executive agreement,
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law, presidential decree, proclamation, order, instruction,
ordinance, or regulation is in question.
(b) All cases involving the legality of any tax, impost,
assessment, or toll, or any penalty imposed in relation thereto. x x x
(Emphasis ours)
39 Tañada v. Angara, 338 Phil. 546, 574; 272 SCRA 18, 47 (1997).
40 Integrated Bar of the Philippines v. Zamora, 392 Phil. 618, 634; 338
SCRA 81, 101 (2000).
41 Phil. Constitution Assn., Inc. v. Mathay, 124 Phil. 890, 898; 18 SCRA
300, 306 (1966).
42 Tan v. Macapagal, 150 Phil. 778, 783; 43 SCRA 677, 680 (1972).
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43 423 Phil. 735; 372 SCRA 462 (2001).
44 Black’s Law Dictionary (5th ed., 1979), p. 1071.
45 Supra note 43, at p. 772; p. 488.
46 Philippine Coconut Producers Federation, Inc. (COCOFED) v.
Republic of the Philippines, G.R. Nos. 177857-58 and 178193, January 24,
2012, 663 SCRA 514.
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47 Tax Principles and Remedies, Japar B. Dimaampao, (2nd ed., 2005),
p. 1; citing 1 Cooley 62.
48 Supra note 20, Article II, Section 1.
49 R.A. 6260 –
Section 8. The Coconut Investment Fund. There shall be
levied on the coconut farmer a sum equivalent to fifty-five
centavos (P0.55) on the first domestic sale of every one hundred
kilograms of copra, or its equivalent in terms of other coconut
products, for which he shall be issued a receipt which shall be
converted into shares of stock of the Company upon its
incorporation as a private entity in accordance with Section seven
hereof. x x x (Emphasis ours)
P.D. 276 –
1. x x x
(a) A levy, initially, of P15.00 per 100 kilograms of copra
resecada or its equivalent in other coconut products, shall be
imposed on every first sale, in accordance with the mechanics
established under R.A. 6260, effective at the start of business hours
on August 10, 1973.
The proceeds from the levy shall be deposited with the
Philippine National Bank or any other government bank to the
account of the Coconut Consumers Stabilization Fund, as a
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separate trust fund which shall not form part of the general fund of
the government. (Emphasis ours)
P.D. 582 –
Section 3-B. Coconut Industry Development Fund. x x x
c) x x x As the initial funds of the Coconut Industry Development
Fund, the Authority is hereby directed to pay to the Coconut Industry
Development Fund the amount of One Hundred Million Pesos
(P100,000,000.00) out of its collections of the coconut consumers
stabilization levy and thereafter the Authority shall pay to the said Fund
an amount equal to at least twenty centavos (P0.20) per
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kilogram of copra resecada or its equivalent out of its current
collections of the coconut consumers stabilization levy. In the event that
the coconut consumers stabilization levy is lifted, a permanent levy of
twenty centavos (P0.20) is thereafter automatically imposed on the first
sale of every kilogram of copra or its equivalent in terms of other coconut
products x x x. (Emphasis ours)
50 Black’s Law Dictionary (5th ed., 1979), p. 816.
51 Republic of the Philippines v. COCOFED, supra note 43, at p. 765; p.
484, citing Caltex Philippines, Inc. v. Commission on Audit, G.R. No.
92585, May 8, 1992, 208 SCRA 726, 756 and Osmeña v. Orbos, G.R. No.
99886, March 31, 1993, 220 SCRA 703, 711.
52 Entitled Creating the Philippine Sugar Commission.
53 Entitled Imposing an Ad Valorem Tax on Certain Manufactured Oils
and Other Fuels; Bunker Fuel Oil and Diesel Fuel Oil; Revising the
Rates of Specific Tax thereon; Abolishing the Oil Industry Special Fund;
and for Other Purposes.
54 Entitled Expanding the Sources and Utilization of the Oil Price
Stabilization Fund (OPSF) by Amending Presidential Decree No. 1956.
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57 Rollo (G.R. Nos. 147036-37), p. 362, Public Respondents’ Reply to
CommenT of UCPB.
58 Reviewer in Labor and Social Legislation, Samson S. Alcantara and
Samson B. Alcantara, Jr., (2004 ed., with 2007 Supplement), p. 982.
59 Republic of the Philippines v. COCOFED, supra note 43, at p. 776; p.
490, citing Executive Order 277, Directing the Mode of Treatment
Utilization, Administration and Management of the Coconut Levy Funds,
September 24, 1995.
60 242 Phil. 377; 158 SCRA 626 (1988).
61 Osmeña v. Orbos, supra note 51.
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62 Supra note 46.
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63 Cojuangco v. Sandiganbayan, G.R. No. 183278, April 24, 2009, 586
SCRA 790, 796.
64 Id., at p. 797.
65 Planters Products, Inc. v. Fertiphil Corporation, G.R. No. 166006,
March 14, 2008, 548 SCRA 485, 510, citing Constitutional Law, Isagani
Cruz, (1998 ed.), p. 90.
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66 Binay v. Domingo, G.R. No. 92389, September 11, 1991, 201 SCRA
508, 516.
67 Id.
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68 Pepsi-Cola Bottling Company of the Philippines, Inc. v. Municipality
of Tanauan, Leyte, 161 Phil. 591, 602; 69 SCRA 460, 466 (1976).
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69 Section 2. (1) The Commission on Audit shall have the power,
authority, and duty to examine, audit, and settle all accounts pertaining
to the revenue and receipts of, and expenditures or uses of funds and
property, owned or held in trust by, or pertaining to, the
Government, or any of its subdivisions, agencies, or instrumentalities,
including government-owned or controlled corporations with original
charters, and on a post-audit basis: (a) constitutional bodies, commissions
and offices that have been granted fiscal autonomy under this
Constitution; (b) autonomous state colleges and universities; (c) other
government-owned or controlled corporations and their subsidiaries; and
(d) such non-governmental entities receiving subsidy or equity, directly or
indirectly, from or through the Government, which are required by law or
the granting institution to submit to such audit as a condition of subsidy
or equity x x x. (Emphasis ours)
70 Section 2. Jurisdiction of The Commission on Audit.—The
Authority and powers of the Commission on Audit shall extend to and
comprehend all matters relating to auditing and accounting procedures,
systems, and controls, including inquiry into the utilization of resources
and operating performance, the keeping of the general accounts of the
Government, the preservation of vouchers pertaining thereto, the
examination and inspection of the books, records, and papers relating to
those accounts; and the audit and settlement of the accounts of all persons
respecting funds or property received or held by them in an accountable
capacity, as well as the examination, audit, and settlement of all debts
and claims of any sort due from or owing to the Government or any of its
subdivisions, agencies, and instrumentalities. The said jurisdiction
extends to all government-owned or controlled corporations and
other self-governing boards, commissions, or agencies of the
Government, and as herein prescribed, including non-
governmental entities subsidized by the Government, those
funded by donations through the Government, those re-
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quired to pay levies or government share, and those partly funded by
the Government. (Emphasis ours)
71 Supra note 30, Whereas clauses.
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72 Supra note 38, Article VI, Section 29. x x x
(3) All money collected on any tax levied for a special purpose
shall be treated as a special fund and paid out for such purpose
only. If the purpose for which a special fund was created has been
fulfilled or abandoned, the balance, if any, shall be transferred to the
general funds of the Government. (Emphasis ours)
73 Entitled Ordaining and Instituting a Government Auditing Code of
the Philippines.
74 Section 84. Disbursement of government funds.
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2. Trust funds shall not be paid out of any public treasury or
depository except in fulfillment of the purpose for which the trust was
created or funds received, and upon authorization of the legislative body,
or head of any other agency of the government having
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E.O. 313 and the second part by Section 4 of E.O. 312 and
Sections 6 and 7 of E.O. 313. E.O. 313 vests the power to
administer, manage, and supervise the operations and
disbursements of the Trust Fund it established (capitalized
with SMC shares bought out of coco-levy funds) in a
Coconut Trust Fund Committee. Thus—
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control thereof, and subject to pertinent budget law, rules and regulations.
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75 Statutory Construction, Ruben E. Agpalo, (5th ed., 2003), pp. 37-38.
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