THIRD DIVISION [G.R. No. 141529. June 6, 2001] FRANCISCO YAP, JR., a.k.a. E !IN YAP, petitioner, vs.

CO"R# OF APPEA$S an% &'e PEOP$E OF #(E P(I$IPPINES, respondents. ECISION GON)AGA*REYES, J.+ The right against excessive bail, and the liberty of abode and travel, are being invoked to set aside two resol tions of the !o rt of "##eals which fixed bail at $%,%&&,&&&'&& and i(#osed conditions on change of residence and travel abroad' )or (isa##ro#riating a(o nts e* ivalent to $%,%&&,&&&'&&, #etitioner was convicted of estafa by the Regional Trial !o rt of $asig !ity +,- and was sentenced to fo r years and two (onths of prision correccional, as (ini( (, to eight years of prision mayor as (axi( (, .in addition to one /,0 year for each additional $,&,&&&'&& in excess of $11,&&&'&& b t in no case shall it exceed twenty /1&0 years'2+1- He filed a notice of a##eal, and (oved to be allowed #rovisional liberty nder the cash bond he had filed earlier in the #roceedings' The (otion was denied by the trial co rt in an order dated )ebr ary ,3, ,444' "fter the records of the case were trans(itted to the !o rt of "##eals, #etitioner filed with the said co rt a 5otion to )ix 6ail )or the $rovisional 7iberty of "cc sed8"##ellant $ending "##eal, invoking the last #aragra#h of Section %, R le ,,9 of the ,443 Revised R les of !o rt' "sked to co((ent on this (otion, the Solicitor :eneral o#ined that #etitioner (ay be allowed to #ost bail in the a(o nt of $%,%&&,&&&'&& and be re* ired to sec re .a certification;g aranty fro( the 5ayor of the #lace of his residence that he is a resident of the area and that he will re(ain to be so ntil final < dg(ent is rendered or in case he transfers residence, it ( st be with #rior notice to the co rt and #rivate co(#lainant'2 +=- $etitioner filed a Re#ly, contending that the #ro#osed bail of $%,%&&,&&&'&& was violative of his right against excessive bail' The assailed resol tion of the !o rt of "##eals +9-, iss ed on October >, ,444, #held the reco((endation of the Solicitor :eneral? th s, its dis#ositive #ortion reads@ AHBRB)ORB, #re(ises considered, the .5otion to )ix 6ail )or $rovisional 7iberty of "cc sed8"##ellant $ending "##eal2 is hereby :R"NTBD' "cc sed8 a##ellant )rancisco Ca#, Dr', a'k'a' Bdwin Ca# is hereby "77OABD TO $OST 6"I7 in the a(o nt of )ive 5illion )ive H ndred Tho sand /$%,%&&,&&&'&&0 $esos, s b<ect to the following conditions, viE'@

/,0 He /acc sed8a##ellant0 sec res a certification;g aranty fro( the 5ayor of the #lace of his residence that he is a resident of the area and that he will re(ain to be a resident therein ntil final < dg(ent is rendered or in case he transfers residence, it ( st be with #rior notice to the co rt? /10 /=0 The !o((ission of I((igration and De#ortation /!ID0 is hereby directed to iss e a hold de#art re order against acc sed8a##ellant? and The acc sed8a##ellant shall forthwith s rrender his #ass#ort to the Division !lerk of !o rt for safekee#ing ntil the co rt orders its ret rn? "ny violation of the aforesaid conditions shall ca se the forfeit re of acc sed8a##ellantFs bail bond, the dis(issal of a##eal and his i((ediate arrest and confine(ent in <ail'

/90

SO ORDBRBD'+%" (otion for reconsideration was filed, seeking the red ction of the a(o nt of bail fixed by res#ondent co rt, b t was denied in a resol tion iss ed on Nove(ber 1%, ,444' Hence, this #etition' $etitioner sets o t the following assign(ents of error@ The res#ondent !o rt of "##eals co((itted grave ab se of discretion in fixing the bail for the #rovisional liberty of #etitioner #ending a##eal in the a(o nt of $%'% (illion' The res#ondent !o rt of "##eals co((itted grave ab se of discretion in basing the bail for the #rovisional liberty of the #etitioner on his civil liability' The res#ondent !o rt of "##eals nd ly restricted #etitionerFs constit tional liberty of abode and travel in i(#osing the other conditions for the grant of bail' $etitioner contends that the !o rt of "##eals, by setting bail at a #rohibitory a(o nt, effectively denied hi( his right to bail' He challenges the legal basis of res#ondent co rt for fixing bail at $%,%&&,&&&'&&, which is e* ivalent to the a(o nt of his civil liability to #rivate co(#lainant 5anila 5ahogany 5arketing !or#oration, and arg es that the R les of !o rt never intended for the civil liability of the acc sed to be a g ideline or basis for deter(ining the a(o nt of bail' He #rays that bail be red ced to at least $9&,&&&'&&, citing the (axi( ( a(o nt of bail that can be #osted for the cri(e of estafa nder the ,44> 6ail 6ond : ide, or $1&,&&&'&&, e* ivalent to the a(o nt of bail he #osted d ring the trial of the case' +>-

On the other hand, the Solicitor :eneral (aintains that no grave ab se of discretion co ld be ascribed to the !o rt of "##eals for fixing the a(o nt of bail at $%,%&&,&&&'&& considering the severity of the #enalty i(#osed, the weight of the evidence against #etitioner, and the gravity of the offense of which #etitioner was convicted by the RT!' He asserted that the $%,%&&,&&&'&& not only corres#onded to civil liability b t also to the a(o nt of fra d i(# ted to #etitioner' The Solicitor :eneral f rther #ointed o t the #robability of flight in case #etitioner is released on bail, it having been established that #etitioner was in #ossession of a valid #ass#ort and visa and had in fact left the co ntry several ti(es d ring the co rse of the #roceedings in the lower co rt' It was also shown that #etitioner sed different na(es in his b siness transactions and had several abodes in different #arts of the co ntry' "s for the conditions i(#osed by the bail bond, the Solicitor :eneral advanced that all that the !o rt of "##eals re* ires is notice in case of change of address? it does not in any way i(#air #etitionerFs right to change abode for as long as the co rt is a##rised of his change of residence d ring the #endency of the a##eal' $etitionerFs case falls within the #rovisions of Section %, R le ,,9 of the ,443 R les of !o rt which states@ SB!' %' Bail, when discretionary. 888 G#on conviction by the Regional Trial !o rt of an offense not # nishable by death, reclusion perpetua or life i(#rison(ent, the co rt, on a##lication, (ay ad(it the acc sed to bail' The co rt, in its discretion, (ay allow the acc sed to contin e on #rovisional liberty nder the sa(e bail bond d ring the #eriod to a##eal s b<ect to the consent of the bonds(an' If the co rt i(#osed a #enalty of i(#rison(ent exceeding six />0 years, b t not (ore than twenty /1&0 years, the acc sed shall be denied bail, or his bail #revio sly granted shall be cancelled, #on a showing by the #rosec tion, with notice to the acc sed, of the following or other si(ilar circ (stances@ /a0 That the acc sed is a recidivist, * asi8recidivist, or habit al delin* ent, or has co((itted the cri(e aggravated by the circ (stance of reiteration? /b0 That the acc sed is fo nd to have #revio sly esca#ed fro( legal confine(ent, evaded sentence, or has violated the conditions of his bail witho t valid < stification? /c0 That the acc sed co((itted the offense while on #robation, #arole, or nder conditional #ardon? /d0 That the circ (stances of the acc sed or his case indicate the #robability of flight if released on bail? or

/e0 That there is nd e risk that d ring the #endency of the a##eal, the acc sed (ay co((it another cri(e' The a##ellate co rt (ay review the resol tion of the Regional Trial !o rt, on (otion and with notice to the adverse #arty' +3There is no * estion that in the #resent case the !o rt of "##eals exercised its discretion in favor of allowing bail to #etitioner on a##eal' Res#ondent co rt stated that it was doing so for .h (anitarian reasons2, and des#ite a #erceived high risk of flight, as by #etitionerFs ad(ission he went o t of the co ntry several ti(es d ring the #endency of the case, for which reason the co rt dee(ed it necessary to #eg the a(o nt of bail at $%,%&&,&&&'&&' The #rohibition against re* iring excessive bail is enshrined in the !onstit tion'+H- The obvio s rationale, as declared in the leading case of De la Camara vs. Enage,+4- is that i(#osing bail in an excessive a(o nt co ld render (eaningless the right to bail' Th s, in Villaseor vs. Abao,+,&- this !o rt (ade the #rono nce(ent that it will not hesitate to exercise its s #ervisory #owers over lower co rts sho ld the latter, after holding the acc sed entitled to bail, effectively deny the sa(e by i(#osing a #rohibitory s ( or exacting nreasonable conditions' xxx There is gri( irony in an acc sed being told that he has a right to bail b t at the sa(e ti(e being re* ired to #ost s ch an exorbitant s (' Ahat aggravates the sit ation is that the lower co rt < dge wo ld a##arently yield to the co((and of the f nda(ental law' In reality, s ch a sancti(onio s avowal of res#ect for a (andate of the !onstit tion was on a # rely verbal level' There is reason to believe that any #erson in the #osition of #etitioner wo ld nder the circ (stances be nable to resist tho ghts of esca#ing fro( confine(ent, red ced as he ( st have been to a state of des#eration' In the sa(e breath as he was told he co ld be bailed o t, the excessive a(o nt re* ired co ld only (ean that #rovisional liberty wo ld be beyond his reach' It wo ld have been (ore forthright if he were infor(ed categorically that s ch a right co ld not be availed of' There wo ld have been no disa##oint(ent of ex#ectations then' It does call to (ind these words of D stice Dackson, .a #ro(ise to the ear to be broken to the ho#e, a teasing ill sion like a ( nificent be* est in a #a #erFs will'2 xxx+,,"t the sa(e ti(e, Section 4, R le ,,9 of the Revised R les of !ri(inal $roced re advises co rts to consider the following factors in the setting of the a(o nt of bail@ /a0 /b0 /c0 /d0 )inancial ability of the acc sed to give bail? Nat re and circ (stances of the offense? $enalty for the offense charged? !haracter and re# tation of the acc sed?

/e0 /f0 /g0 /h0 /i0 /<0

"ge and health of the acc sed? Aeight of the evidence against the acc sed? $robability of the acc sed a##earing at the trial? )orfeit re of other bail? The fact that the acc sed was a f gitive fro( < stice when arrested? and $endency of other cases where the acc sed is on bail'

: ide d e to its significance in the ad(inistration of cri(inal < stice' +,3- This notwithstanding, the !o rt is not #recl ded fro( i(#osing in #etitionerFs case an a(o nt higher than $9&,&&&'&& /based on the 6ail 6ond : ide0 where it #erceives that an a##ro#riate increase is dictated by the circ (stances' It (ilitates e(#hasis that #etitioner is seeking bail on appeal' Section %, R le ,,9 of the Revised R les of !ri(inal $roced re is clear that altho gh the grant of bail on a##eal in non8ca#ital offenses is discretionary, when the #enalty i(#osed on the convicted acc sed exceeds six years and circ (stances exist that #oint to the #robability of flight if released on bail, then the acc sed ( st be denied bail, or his bail #revio sly granted sho ld be cancelled' +,H- In the sa(e vein, the !o rt has held that the discretion to extend bail d ring the co rse of the a##eal sho ld be exercised with grave ca tion and for strong reasons, considering that the acc sed had been in fact convicted by the trial co rt' +,4- In an earlier case, the !o rt ado#ted Senator Vicente D' )ranciscoFs dis* isition on why bail sho ld be denied after < dg(ent of conviction as a (atter of wise discretion? th s@ The i(#ortance attached to conviction is d e to the nderlying #rinci#le that bail sho ld be granted only where it is ncertain whether the acc sed is g ilty or innocent, and therefore, where that ncertainty is re(oved by conviction it wo ld, generally s#eaking, be abs rd to ad(it to bail' "fter a #erson has been tried and convicted the #res (#tion of innocence which (ay be relied #on in #rior a##lications is reb tted, and the b rden is #on the acc sed to show error in the conviction' )ro( another #oint of view it (ay be #ro#erly arg ed that the #robability of lti(ate # nish(ent is so enhanced by the conviction that the acc sed is ( ch (ore likely to atte(#t to esca#e if liberated on bail than before conviction' xxx +1&$etitioner is seeking bail on a##eal' He was in fact declared g ilty beyond reasonable do bt by the RT!, and d e to the serio s a(o nt of fra d involved, sentenced to i(#rison(ent for twenty years 888 the (axi( ( #enalty for estafa by false #retenses or fra d lent acts allowed by the Revised $enal !ode' "ltho gh it cannot be controverted that the !o rt of "##eals, des#ite the foregoing considerations and the #ossibility of flight still wielded its discretion to grant #etitioner bail, the setting of bail in the a(o nt of $%,%&&,&&&'&& is n< stified as having no legal nor fact al basis' : ided by the #enalty i(#osed by the lower co rt and the weight of the evidence against #etitioner, we believe that the a(o nt of $1&&,&&&'&& is (ore reasonable' $etitioner also contests the condition i(#osed by the !o rt of "##eals that he sec re .a certification;g aranty fro( the 5ayor of the #lace of his residence that he is a resident of the area and that he will re(ain to be a resident therein ntil final < dg(ent is rendered or in case he transfers residence, it ( st be with #rior notice to the co rt2, clai(ing that the sa(e violates his liberty of abode and travel' Notably, #etitioner does not * estion the hold8de#art re order which #revents hi( fro( leaving the $hili##ines nless ex#ressly #er(itted by the co rt which

Th s, the co rt has wide latit de in fixing the a(o nt of bail' Ahere it fears that the acc sed (ay < (# bail, it is certainly not #recl ded fro( installing devices to ens re against the sa(e' O#tions (ay incl de increasing the bail bond to an a##ro#riate level, or re* iring the #erson to re#ort #eriodically to the co rt and to (ake an acco nting of his (ove(ents' +,1- In the #resent case, where #etitioner was fo nd to have left the co ntry several ti(es while the case was #ending, the !o rt of "##eals re* ired the confiscation of his #ass#ort and the iss ance of a hold8 de#art re order against hi(' Gnder the circ (stances of this case, we find that a##ro#riate conditions have been i(#osed in the bail bond to ens re against the risk of flight, #artic larly, the co(bination of the hold8de#art re order and the re* ire(ent that #etitioner infor( the co rt of any change of residence and of his whereabo ts' "ltho gh an increase in the a(o nt of bail while the case is on a##eal (ay be (eritorio s, we find that the setting of the a(o nt at $%,%&&,&&&'&& is nreasonable, excessive, and constit tes an effective denial of #etitionerFs right to bail' The # r#ose for bail is to g arantee the a##earance of the acc sed at the trial, or whenever so re* ired by the co rt +,9- The a(o nt sho ld be high eno gh to ass re the #resence of the acc sed when re* ired b t no higher than is reasonably calc lated to f lfill this # r#ose'+,%- To fix bail at an a(o nt e* ivalent to the civil liability of which #etitioner is charged /in this case, $%,%&&,&&&'&&0 is to #er(it the i(#ression that the a(o nt #aid as bail is an exaction of the civil liability that acc sed is charged of? this we cannot allow beca se bail is not intended as a # nish(ent, nor as a satisfaction of civil liability which sho ld necessarily await the < dg(ent of the a##ellate co rt'
+,=-

"t the sa(e ti(e, we cannot yield to #etitionerFs s b(ission that bail in the instant case be set at $9&,&&&'&& based on the ,44> 6ail 6ond : ide' /The c rrent 6ail 6ond : ide, iss ed on " g st 14, 1&&&, (aintains reco((ended bail at $9&,&&&'&& for estafa where the a(o nt of fra d is $,91,&&&'&& or over and the i(#osable #enalty 1& years of reclusion temporal0' Tr e, the !o rt has held that the 6ail 6ond : ide, a circ lar of the De#art(ent of D stice for the g idance of state #rosec tors, altho gh technically not binding #on the co rts, .(erits attention, being in a sense an ex#ression of #olicy of the Bxec tive 6ranch, thro gh the De#art(ent of D stice, in the enforce(ent of cri(inal laws'2 +,>- Th s, co rts are advised that they ( st not only be aware b t sho ld also consider the 6ail 6ond

iss ed the order'+1,- In fact, the #etition s b(its that .the hold8de#art re order against #etitioner is already s fficient g arantee that he will not esca#e' Th s, to re* ire hi( to infor( the co rt every ti(e he changed his residence is already nnecessary'2 +11The right to change abode and travel within the $hili##ines, being invoked by #etitioner, are not absol te rights' Section >, "rticle III of the ,4H3 !onstit tion states@ The liberty of abode and of changing the sa(e within the li(its #rescribed by law shall not be i(#aired exce#t #on lawf l order of the co rt' Neither shall the right to travel be i(#aired exce#t in the interest of national sec rity, # blic safety, or # blic health, as (ay be #rovided by law' The order of the !o rt of "##eals releasing #etitioner on bail constit tes s ch lawf l order as conte(#lated by the above #rovision' +1=- The condition i(#osed by the !o rt of "##eals is si(#ly consistent with the nat re and f nction of a bail bond, which is to ens re that #etitioner will (ake hi(self available at all ti(es whenever the !o rt re* ires his #resence' 6esides, a closer look at the * estioned condition will show that #etitioner is not #revented fro( changing abode? he is (erely re* ired to infor( the co rt in case he does so' !(EREFORE, the #etition is $"RTI"77C :R"NTBD' $etitionerFs bail #ending a##eal is red ced fro( $%,%&&,&&&'&& to $1&&,&&&'&&' In all other res#ects, the resol tions of the !o rt of "##eals, dated October >, ,444 and Nove(ber 1%, ,444, res#ectively, are "))IR5BD' No #rono nce(ent as to costs' SO OR ERE . Melo, Chairman!, Vitug, "anganiban, and #andoval$%utierre&, ''., conc r'

Re# blic S"PRE,E 5anila BN 6"N!

of

the

$hili##ines CO"R#

The constit tional right to infor(ation on (atters of # blic concern first gained recognition in the 6ill of Rights, "rticle IV, of the ,43= !onstit tion, which states@ Sec' >' The right of the #eo#le to infor(ation on (atters of # blic concern shall be recogniEed' "ccess to official records, and to doc (ents and #a#ers #ertaining to official acts, transactions, or decisions, shall be afforded the citiEen s b<ect to s ch li(itations as (ay be #rovided by law'

G.R. No. $*-2119 ,a. 29, 19/0A$EN#IN $. vs' CI0I$ SER0ICE CO,,ISSION, res#ondent' $EGASPI, #etitioner,

The foregoing #rovision has been retained and the right therein #rovided a(#lified in "rticle III, Sec' 3 of the ,4H3 !onstit tion with the addition of the #hrase, Jas well as to govern(ent research data sed as basis for #olicy develo#(ent'J The new #rovision reads@ The right of the #eo#le to infor(ation on (atters of # blic concern shall be recogniEed' "ccess to official records, and to doc (ents, and #a#ers #ertaining to official acts, transactions, or decisions, as well as to govern(ent research data sed as basis' for #olicy develo#(ent, shall be afforded the citiEen, s b<ect to s ch stations as (ay be #rovided by law' These constit tional #rovisions are self8exec ting' They s ##ly the r les by (eans of which the right to infor(ation (ay be en<oyed /!ooley, " Treatise on the !onstit tional 7i(itations ,>3 +,413-0 by g aranteeing the right and (andating the d ty to afford access to so rces of infor(ation' Hence, the f nda(ental right therein recogniEed (ay be asserted by the #eo#le #on the ratification of the constit tion witho t need for any ancillary act of the 7egislat re' / )d. at, #' ,>%0 Ahat (ay be #rovided for by the 7egislat re are reasonable conditions and li(itations #on the access to be afforded which ( st, of necessity, be consistent with the declared State #olicy of f ll # blic disclos re of all transactions involving # blic interest /!onstit tion, "rt' ,,, Sec' 1H0' However, it cannot be overe(#hasiEed that whatever li(itation (ay be #rescribed by the 7egislat re, the right and the d ty nder "rt' III Sec' 3 have beco(e o#erative and enforceable by virt e of the ado#tion of the New !harter' Therefore, the right (ay be #ro#erly invoked in a (anda( s #roceeding s ch as this one' The Solicitor :eneral inter#oses #roced ral ob<ections to O r giving d e co rse to this $etition' He challenges the #etitionerIs standing to s e #on the gro nd that the latter does not #ossess any clear legal right to be infor(ed of the civil service eligibilities of the govern(ent e(#loyees concerned' He calls attention to the alleged fail re of the #etitioner to show his act al interest in sec ring this #artic lar infor(ation' He f rther arg es that there is no (inisterial d ty on the #art of the !o((ission to f rnish the #etitioner with the infor(ation he seeks'

COR#ES, J.: The f nda(ental right of the #eo#le to infor(ation on (atters of # blic concern is invoked in this s#ecial civil action for (anda( s instit ted by #etitioner Valentin 7' 7egas#i against the !ivil Service !o((ission' The res#ondent had earlier denied 7egas#iIs re* est for infor(ation on the civil service eligibilities of certain #ersons e(#loyed as sanitarians in the Health De#art(ent of !eb !ity' These govern(ent e(#loyees, D lian Sibonghanoy and 5ariano "gas, had allegedly re#resented the(selves as civil service eligibles who #assed the civil service exa(inations for sanitarians' !lai(ing that his right to be infor(ed of the eligibilities of D lian Sibonghanoy and 5ariano "gas, is g aranteed by the !onstit tion, and that he has no other #lain, s#eedy and ade* ate re(edy to ac* ire the infor(ation, #etitioner #rays for the iss ance of the extraordinary writ of (anda( s to co(#el the res#ondent !o((ission to disclose said infor(ation' This is not the first t ne that the writ of (anda( s is so ght to enforce the f nda(ental right to infor(ation' The sa(e re(edy was resorted to in the case of (anada et. al. vs. (uvera et. al., /:'R' No' 78>=4,%, "#ril 19,,4H%,,=> S!R" 130 wherein the #eo#leIs right to be infor(ed nder the ,43= !onstit tion /"rticle IV, Section >0 was invoked in order to co(#el the # blication in the Official :aEette of vario s #residential decrees, letters of instr ctions and other #residential iss ances' $rior to the recognition of the right in said !onstit tion the stat tory right to infor(ation #rovided for in the 7and Registration "ct /Section %>, "ct 94>, as a(ended0 was clai(ed by a news#a#er editor in another (anda( s #roceeding, this ti(e to de(and access to the records of the Register of Deeds for the # r#ose of gathering data on real estate transactions involving aliens /S bido vs' OEaeta, H& $hil' =H= +,49H-0'

,' To be given d e co rse, a $etition for (anda( s ( st have been instit ted by a #arty aggrieved by the alleged inaction of any trib nal, cor#oration, board or #erson which nlawf lly excl des said #arty fro( the en<oy(ent of a legal right' /"nt?8 !hinese 7eag e of the $hili##ines vs' )elix, 33 $hil' ,&,1 +,493-0' The #etitioner in every case ( st therefore be an Jaggrieved #artyJ in the sense that he #ossesses a clear legal right to be enforced and a direct interest in the d ty or act to be #erfor(ed' In the case before Gs, the res#ondent takes iss e on the #ersonality of the #etitioner to bring this s it' It is asserted that, the instant $etition is bereft of any allegation of 7egas#iIs actual interest in the civil service eligibilities of D lian Sibonghanoy and 5ariano "gas, "t (ost there is a vag e reference to an nna(ed client in whose behalf he had allegedly acted when he (ade in* iries on the s b<ect /$etition, Rollo, #' =0' 6 t what is clear #on the face of the $etition is that the #etitioner has fir(ly anchored his case #on the right of the #eo#le to infor(ation on (atters of # blic concern, which, by its very nat re, is a # blic right' It has been held that@ K K K when the * estion is one of # blic right and the ob<ect of the (anda( s is to #roc re the enforce(ent of a # blic d ty, the #eo#le are regarded as the real #arty in interest and the relator at whose instigation the #roceedings are instit ted need not show that he has any legal or s#ecial interest in the res lt, it being s fficient to show that he is a citiEen and as s ch interested in the exec tion of the laws K K K /Tanada et' al' vs' T vera, et' al', :'R' No' 78 >=4,%, "#ril 19, ,4H%, ,=> S!R" 13, =>0' )ro( the foregoing, it beco(es a##arent that when a (anda( s #roceeding involves the assertion of a # blic right, the re* ire(ent of #ersonal interest is satisfied by the (ere fact that the #etitioner is a citiEen, and therefore, #art of the general J# blicJ which #ossesses the right' The !o rt had o##ort nity to define the word J# blicJ in the #ubido case, supra, when it held that even those who have no direct or tangible interest in any real estate transaction are #art of the J# blicJ to who( J/a0ll records relating to registered lands in the Office of the Register of Deeds shall be o#en K K KJ /Sec' %>, "ct No' 94>, as a(ended0' In the words of the !o rt@ K K K J$ blicJ is a co(#rehensive, all8incl sive ter(' $ro#erly constr ed, it e(braces every #erson' To say that only those who have a #resent and existing interest of a #ec niary character in the #artic lar infor(ation so ght are given the right of ins#ection is to (ake an nwarranted distinction' KKK /S bido vs' OEaeta, supra at #' =H30'

The #etitioner, being a citiEen who, as s ch is clothed with #ersonality to seek redress for the alleged obstr ction of the exercise of the # blic right' Ae find no cogent reason to deny his standing to bring the #resent s it' 1' )or every right of the #eo#le recogniEed as f nda(ental, there lies a corres#onding d ty on the #art of those who govern, to res#ect and #rotect that right' That is the very essence of the 6ill of Rights in a constit tional regi(e' Only govern(ents o#erating nder f nda(ental r les defining the li(its of their #ower so as to shield individ al rights against its arbitrary exercise can #ro#erly clai( to be constit tional /!ooley, supra, at #' %0' Aitho t a govern(entIs acce#tance of the li(itations i(#osed #on it by the !onstit tion in order to #hold individ al liberties, witho t an acknowledg(ent on its #art of those d ties exacted by the rights #ertaining to the citiEens, the 6ill of Rights beco(es a so#histry, and liberty, the lti(ate ill sion' In recogniEing the #eo#leIs right to be infor(ed, both the ,43= !onstit tion and the New !harter ex#ressly (andate the d ty of the State and its agents to afford access to official records, doc (ents, #a#ers and in addition, govern(ent research data sed as basis for #olicy develo#(ent, s b<ect to s ch li(itations as (ay be #rovided by law' The g arantee has been f rther enhanced in the New !onstit tion with the ado#tion of a #olicy of f ll # blic disclos re, this ti(e Js b<ect to reasonable conditions #rescribed by law,J in "rticle ,,, Section 1H thereof, to wit@ S b<ect to reasonable conditions #rescribed by law, the State ado#ts and i(#le(ents a #olicy of f ll # blic disclos re of all its transactions involving # blic interest' /"rt' ,,, Sec' 1H0' In the (anada case, supra, the constit tional g arantee was bolstered by what this !o rt declared as an i(#erative d ty of the govern(ent officials concerned to # blish all i(#ortant legislative acts and resol tions of a # blic nat re as well as all exec tive orders and #rocla(ations of general a##licability' Ae granted (anda( s in said case, and in the #rocess, Ae fo nd occasion to ex#o nd briefly on the nat re of said d ty@ K K K That d ty ( st be enforced if the !onstit tional right of the #eo#le to be infor(ed on (atters of # blic concern is to be given s bstance and reality' The law itself (akes a list of what sho ld be # blished in the Official :aEette' S ch listing, to o r (ind, leaves res#ondents with no discretion whatsoever as to what must be in included or e*cluded +rom such publication. /Tanada v' T vera,supra, at =40' /B(#hasis s ##lied0' The absence of discretion on the #art of govern(ent agencia es in allowing the exa(ination of # blic records, s#ecifically, the records in the Office of the Register of Deeds, is e(#hasiEed in #ubido vs. ,&aeta, supra-

Bxce#t, #erha#s when it is clear that the # r#ose of the exa(ination is nlawf l, or sheer, idle c riosity, we do not believe it is the d ty nder the law of registration officers to concern the(selves with the (otives, reasons, and ob<ects of the #erson seeking access to the records' It is not their #rerogative to see that the infor(ation which the records contain is not fla nted before # blic gaEe, or that scandal is not (ade of it' )+ it be wrong to publish the contents o+ the records, it is the legislature and not the o++icials having custody thereo+ which is called upon to devise a remedy. KKK /S bido v' OEaeta, supra at =HH0' /B(#hasis s ##lied0' It is clear fro( the foregoing #rono nce(ents of this !o rt that govern(ent agencies are witho t discretion in ref sing disclos re of, or access to, infor(ation of # blic concern' This is not to lose sight of the reasonable reg lations which (ay be i(#osed by said agencies in c stody of # blic records on the (anner in which the right to infor(ation (ay be exercised by the # blic' In the #ubido case, Ae recogniEed the a thority of the Register of Deeds to reg late the (anner in which #ersons desiring to do so, (ay ins#ect, exa(ine or co#y records relating to registered lands' However, the reg lations which the Register of Deeds (ay #ro( lgate are confined to@ K K K #rescribing the (anner and ho rs of exa(ination to the end that da(age to or loss of, the records (ay be avoided, that nd e interference with the d ties of the c stodian of the books and doc (ents and other e(#loyees (ay be #revented, that the right of other #ersons entitled to (ake ins#ection (ay be ins red K K K /S bido vs' OEaeta, H& $hil' =H=, =H30 "##lying the #ubido r ling by analogy, Ae recogniEed a si(ilar a thority in a ( nici#al < dge, to reg late the (anner of ins#ection by the # blic of cri(inal docket records in the case of Baldo&a vs. Dimaano /"d(' 5atter No' ,,1&85D, 5ay %, ,43>, 3, S!R" ,90' Said ad(inistrative case was filed against the res#ondent < dge for his alleged ref sal to allow exa(ination of the cri(inal docket records in his sala' G#on a finding by the Investigating D dge that the res#ondent had allowed the co(#lainant to o#en and view the s b<ect records, Ae absolved the res#ondent' In effect, Ae have also held that the r les and conditions i(#osed by hi( #on the manner of exa(ining the # blic records were reasonable' In both the #ubido and the Baldo&a cases, Ae were e(#hatic in O r state(ent that the a thority to reg late the (anner of exa(ining # blic records does not carry with it the #ower to #rohibit' " distinction has to be (ade between the discretion to ref se o tright the disclos re of or access to a #artic lar infor(ation and the a thority to reg late the (anner in which the access is to be afforded' The first is a li(itation #on the availability of access to the infor(ation so ght, which only the 7egislat re

(ay i(#ose /"rt' III, Sec' >, ,4H3 !onstit tion0' The second #ertains to the govern(ent agency charged with the c stody of # blic records' Its a thority to reg late access is to be exercised solely to the end that da(age to, or loss of, # blic records (ay be avoided, nd e interference with the d ties of said agencies (ay be #revented, and (ore i(#ortantly, that the exercise of the sa(e constit tional right by other #ersons shall be ass red /S bido vs' OEaetal supra0' Th s, while the (anner of exa(ining # blic records (ay be s b<ect to reasonable reg lation by the govern(ent agency in c stody thereof, the d ty to disclose the infor(ation of # blic concern, and to afford access to # blic records cannot be discretionary on the #art of said agencies' !ertainly, its #erfor(ance cannot be (ade contingent #on the discretion of s ch agencies' Otherwise, the en<oy(ent of the constit tional right (ay be rendered n gatory by any whi(sical exercise of agency discretion' The constit tional d ty, not being discretionary, its #erfor(ance (ay be co(#elled by a writ of (anda( s in a proper case. 6 t what is a #ro#er case for 5anda( s to iss eL In the case before Gs, the # blic right to be enforced and the conco(itant d ty of the State are ne* ivocably set forth in the !onstit tion' The decisive * estion on the #ro#riety of the iss ance of the writ of (anda( s in this case is, whether the infor(ation so ght by the #etitioner is within the a(bit of the constit tional g arantee' =' The incor#oration in the !onstit tion of a g arantee of access to infor(ation of # blic concern is a recognition of the essentiality of the free flow of ideas and infor(ation in a de(ocracy /6aldoEa v' Di(aano, "d(' 5atter No' ,,1&85D, 5ay %, ,43>, ,3 S!R" ,90' In the sa(e way that free disc ssion enables (e(bers of society to co#e with the exigencies of their ti(e /Thornhill vs' "laba(a, =,& G'S' HH,,&1 +,4=4-0, access to infor(ation of general interest aids the #eo#le in de(ocratic decision8(aking /H3 Harvard 7aw Review ,%&% +,439-0 by giving the( a better #ers#ective of the vital iss es confronting the nation' 6 t the constit tional g arantee to infor(ation on (atters of # blic concern is not absol te' It does not o#en every door to any and all infor(ation' Gnder the !onstit tion, access to official records, #a#ers, etc', are Js b<ect to li(itations as (ay be #rovided by lawJ /"rt' III, Sec' 3, second sentence0' The law (ay therefore exe(#t certain ty#es of infor(ation fro( # blic scr tiny, s ch as those affecting national sec rity /Do rnal No' 4&, Se#te(ber 1=, ,4H>, #' ,&? and Do rnal No' 4,, Se#te(ber 19, ,4H>, #' =1, ,4H> !onstit tional !o((ission0' It follows that, in every case, the availability of access to a #artic lar # blic record ( st be circ (scribed by the nat re of the infor(ation so ght, i'e', /a0 being of # blic concern or one that involves # blic interest, and, /b0 not being exe(#ted by law fro( the o#eration of the constit tional g arantee' The threshold * estion is, therefore, whether or not the infor(ation so ght is of # blic interest or # blic concern'

a' This * estion is first addressed to the govern(ent agency having c stody of the desired infor(ation' However, as already disc ssed, this does not give the agency concerned any discretion to grant or deny access' In case of denial of access, the govern(ent agency has the b rden of showing that the infor(ation re* ested is not of # blic concern, or, if it is of # blic concern, that the sa(e has been exe(#ted by law fro( the o#eration of the g arantee' To hold otherwise will serve to dil te the constit tional right' "s a#tly observed, J' ' ' the govern(ent is in an advantageo s #osition to (arshall and inter#ret arg (ents against release ' ' 'J /H3 Harvard 7aw Review ,%,, +,439-0' To safeg ard the constit tional right, every denial of access by the govern(ent agency concerned is s b<ect to review by the co rts, and in the #ro#er case, access (ay be co(#elled by a writ of 5anda( s' In deter(ining whether or not a #artic lar infor(ation is of # blic concern there is no rigid test which can be a##lied' J$ blic concernJ like J# blic interestJ is a ter( that el des exact definition' 6oth ter(s e(brace a broad s#ectr ( of s b<ects which the # blic (ay want to know, either beca se these directly affect their lives, or si(#ly beca se s ch (atters nat rally aro se the interest of an ordinary citiEen' In the final analysis, it is for the co rts to deter(ine in a case by case basis whether the (atter at iss e is of interest or i(#ortance, as it relates to or affects the # blic' The # blic concern invoked in the case of (anada v. (uvera, supra, was the need for ade* ate notice to the # blic of the vario s laws which are to reg late the actions and cond ct of citiEens' In #ubido vs. ,&aeta, supra,the # blic concern dee(ed covered by the stat tory right was the knowledge of those real estate transactions which so(e believed to have been registered in violation of the !onstit tion' The infor(ation so ght by the #etitioner in this case is the tr th of the clai( of certain govern(ent e(#loyees that they are civil service eligibles for the #ositions to which they were a##ointed' The !onstit tion ex#ressly declares as a State #olicy that@ "##oint(ents in the civil service shall be (ade only according to (erit and fitness to be deter(ined, as far as #racticable, and exce#t as to #ositions which are #olicy deter(ining, #ri(arily confidential or highly technical, by co(#etitive exa(ination' /"rt' IM, 6, Sec' 1'+1-0' $ blic office being a # blic tr st, +!onst' "rt' MI, Sec' ,- it is the legiti(ate concern of citiEens to ens re that govern(ent #ositions re* iring civil service eligibility are occ #ied only by #ersons who are eligibles' $ blic officers are at all ti(es acco ntable to the #eo#le even as to their eligibilities for their res#ective #ositions' b' 6 t then, it is not eno gh that the infor(ation so ght is of # blic interest' )or (anda( s to lie in a given case, the infor(ation ( st not be a(ong the s#ecies exe(#ted by law fro( the o#eration of the constit tional g arantee'

In the instant, case while ref sing to confir( or deny the clai(s of eligibility, the res#ondent has failed to cite any #rovision in the !ivil Service 7aw which wo ld li(it the #etitionerIs right to know who are, and who are not, civil service eligibles' Ae take < dicial notice of the fact that the na(es of those who #ass the civil service exa(inations, as in bar exa(inations and licens re exa(inations for vario s #rofessions, are released to the # blic' Hence, there is nothing secret abo t oneIs civil service eligibility, if act ally #ossessed' $etitionerIs re* est is, therefore, neither n s al nor nreasonable' "nd when, as in this case, the govern(ent e(#loyees concerned clai( to be civil service eligibles, the # blic, thro gh any citiEen, has a right to verify their #rofessed eligibilities fro( the !ivil Service !o((ission' The civil service eligibility of a sanitarian being of # blic concern, and in the absence of ex#ress li(itations nder the law #on access to the register of civil service eligibles for said #osition, the d ty of the res#ondent !o((ission to confir( or deny the civil service eligibility of any #erson occ #ying the #osition beco(es i(#erative' 5anda( s, therefore lies' AHBRB)ORB, the !ivil Service !o((ission is ordered to o#en its register of eligibles for the #osition of sanitarian, and to confir( or deny, the civil service eligibility of D lian Sibonghanoy and 5ariano "gas, for said #osition in the Health De#art(ent of !eb !ity, as re* ested by the #etitioner Valentin 7' 7egas#i'

Re# blic S"PRE,E 5anila BN 6"N!

of

the

$hili##ines CO"R#

Sir@ "s a lawyer, (e(ber of the (edia and #lain citiEen of o r Re# blic, I a( re* esting that I be f rnished with the list of na(es of the o##osition (e(bers of /the0 6atasang $a(bansa who were able to sec re a clean loan of $1 (illion each on g arranty /sic0 of 5rs' I(elda 5arcos' Ae nderstand that OI! 5el 7o#eE of 5anila was one of those aforesaid 5$s' 7ikewise, (ay we be f rnished with the certified tr e co#ies of the doc (ents evidencing their loan' Bx#enses in connection herewith shall be borne by s' If we co ld not sec re the above doc (ents co ld we have access to the(L Ae are #re(ising the above re* est on the following #rovision of the )reedo( !onstit tion of the #resent regi(e' The right of the #eo#le to infor(ation on (atters of # blic concern shall be recogniEed' "ccess to official records, and to doc (ents and #a#ers #ertaining to official acts, transactions or decisions, shall be afforded the citiEen s b<ect to s ch li(itation as (ay be #rovided by law' /"rt' IV, Sec' >0' Ae tr st that within five /%0 days fro( recei#t hereof we will receive yo r favorable res#onse on the (atter' +Rollo, #' 3'To the aforesaid letter, the De# ty :eneral !o nsel of the :SIS re#lied@ D ne ,3, ,4H> "tty' ,&H !aloocan !ity Dear !o(#aNero@ $ossibly beca se he ( st have tho ght that it contained serio s legal i(#lications, $resident O :eneral 5anager )eliciano 6el(onte, Dr' referred to (e for st dy and re#ly yo r letter to hi( of D ne 9, ,4H> re* esting a list of the o##osition (e(bers of 6atasang $a(bansa who were able to sec re a clean loan of $1 (illion each on g aranty of 5rs' I(elda 5arcos' Ricardo B' !' 6enin Val(onte Street

G.R. No. -4910 Fe23ua3. 11, 19/9 RICAR O 0A$,ON#E, OS!A$ O CAR4ONE$$, OY E$ CAS#I$$O, RO$AN O 4AR#O$O,E, $EO O4$IGAR, J"N G"#IERRE), REYNA$ O 4AGA#SING, J"N 5NINOY5 A$4A, PERCY $API , RO,,E$ CORRO an% RO$AN O FA "$, #etitioners, vs' FE$ICIANO 4E$,ON#E, JR., res#ondent' .icardo C. Valmonte +or and in his own behal+ and his co$petitioners. (he #olicitor %eneral +or respondent. COR#ES, J.: $etitioners in this s#ecial civil action for (anda( s with #reli(inary in< nction invoke their right to infor(ation and #ray that res#ondent be directed@ /a0 to f rnish #etitioners the list of the na(es of the 6atasang $a(bansa (e(bers belonging to the GNIDO and $D$87aban who were able to sec re clean loans i((ediately before the )ebr ary 3 election thr the intercession;(arginal note of the then )irst 7ady I(elda 5arcos? and;or /b0 to f rnish #etitioners with certified tr e co#ies of the doc (ents evidencing their res#ective loans? and;or /c0 to allow #etitioners access to the # blic records for the s b<ect infor(ation' /$etition, ##' 98%? #aragra#hing s ##lied'The controversy arose when #etitioner Val(onte wrote res#ondent 6el(onte the following letter@ D ne 9, ,4H> Hon' :SIS "rroceros, 5anila )eliciano :eneral 6el(onte 5anager

5y o#inion in this regard is that a confidential relationshi# exists between the :SIS and all those who borrow fro( it, whoever they (ay be? that the :SIS has a d ty to its c sto(ers to #reserve this confidentiality? and that it wo ld not be #ro#er for the :SIS to breach this confidentiality nless so ordered by the co rts' "s a violation of this confidentiality (ay (ar the i(age of the :SIS as a re# table financial instit tion, I regret very ( ch that at this ti(e we cannot res#ond #ositively to yo r re* est' Very tr ly yo rs, /Sgd'0 De# ty +Rollo, #' 9&'5BCN"RDO :eneral "' TIRO !o nsel

constit tional right to infor(ation' Hence, it is arg ed that this case falls nder one of the exce#tions to the #rinci#le of exha stion of ad(inistrative re(edies' "(ong the settled #rinci#les in ad(inistrative law is that before a #arty can be allowed to resort to the co rts, he is ex#ected to have exha sted all (eans of ad(inistrative redress available nder the law' The co rts for reasons of law, co(ity and convenience will not entertain a case nless the available ad(inistrative re(edies have been resorted to and the a##ro#riate a thorities have been given o##ort nity to act and correct the errors co((itted in the ad(inistrative for (' However, the #rinci#le of exha stion of ad(inistrative re(edies is s b<ect to settled exce#tions, a(ong which is when only a * estion of law is involved +$asc al v' $rovincial 6oard, ,&> $hil' 9>> /,4%40? "g ilar v' Valencia, et al', :'R' No' 78 =&=4>, D ly =&, ,43,, 9& S!R" 1,&? 5alabanan v' Ra(ento, :'R' No' 78113&, 5ay 1,, ,4H9, ,14 S!R" =%4'- The iss e raised by #etitioners, which re* ires the inter#retation of the sco#e of the constit tional right to infor(ation, is one which can be #assed #on by the reg lar co rts (ore co(#etently than the :SIS or its 6oard of Tr stees, involving as it does a # rely legal * estion' Th s, the exce#tion of this case fro( the a##lication of the general r le on exha stion of ad(inistrative re(edies is warranted' Having dis#osed of this #roced ral iss e, Ae now address o rselves to the iss e of whether or not (anda( s hes to co(#el res#ondent to #erfor( the acts so ght by #etitioners to be done, in # rs ance of their right to infor(ation' Ae shall deal first with the second and third alternative acts so ght to be done, both of which involve the iss e of whether or not #etitioners are entitled to access to the doc (ents evidencing loans granted by the :SIS' This is not the first ti(e that the !o rt is confronted with a controversy directly involving the constit tional right to infor(ation' In (aada v. (uvera, :'R' No' >=4,%, "#ril 19,,4H%, ,=> S!R" 13 and in the recent case of /egaspi v. Civil #ervice Commission, :'R' No' 31,,4, 5ay 14, ,4H3,,%& S!R" %=&, the !o rt #held the #eo#leIs constit tional right to be infor(ed of (atters of # blic interest and ordered the govern(ent agencies concerned to act as #rayed for by the #etitioners' The #ertinent #rovision nder the ,4H3 !onstit tion is "rt' ,,,, Sec' 3 which states@ The right of the #eo#le to infor(ation on (atters of # blic concern shall be recogniEed' "ccess to official records, and to doc (ents, and #a#ers #ertaining to official acts, transactions, or decisions, as well as to govern(ent research data sed as basis for #olicy develo#(ent, shall be afforded the citiEen, s b<ect to s ch li(itations as (ay be #rovided by law' The right of access to infor(ation was also recogniEed in the ,43= !onstit tion, "rt' IV Sec' > of which #rovided@

On D ne 1&, ,4H>, a##arently not having yet received the re#ly of the :overn(ent Service and Ins rance Syste( /:SIS0 De# ty :eneral !o nsel, #etitioner Val(onte wrote res#ondent another letter, saying that for fail re to receive a re#ly, J/A0e are now considering o rselves free to do whatever action necessary within the #re(ises to # rs e o r desired ob<ective in # rs ance of # blic interest'J +Rollo, #' H'On D ne 1>, ,4H>, Val(onte, <oined by the other #etitioners, filed the instant s it' On D ly ,4, ,4H>, the Daily E*press carried a news ite( re#orting that ,=3 for(er (e(bers of the def nct interi( and reg lar 6atasang $a(bansa, incl ding ten /,&0 o##osition (e(bers, were granted ho sing loans by the :SIS +Rollo, #' 9,'Se#arate co((ents were filed by res#ondent 6el(onte and the Solicitor :eneral' "fter #etitioners filed a consolidated re#ly, the #etition was given d e co rse and the #arties were re* ired to file their (e(oranda' The #arties having co(#lied, the case was dee(ed s b(itted for decision' In his co((ent res#ondent raises #roced ral ob<ections to the iss ance of a writ of (anda( s, a(ong which is that #etitioners have failed to exha st ad(inistrative re(edies' Res#ondent clai(s that actions of the :SIS :eneral 5anager are reviewable by the 6oard of Tr stees of the :SIS' $etitioners, however, did not seek relief fro( the :SIS 6oard of Tr stees' It is therefore asserted that since ad(inistrative re(edies were not exha sted, then #etitioners have no ca se of action' To this ob<ection, #etitioners clai( that they have raised a # rely legal iss e, vi&., whether or not they are entitled to the doc (ents so ght, by virt e of their

The right of the #eo#le to infor(ation on I(atters of # blic concern shall be recogniEed' "ccess to official records, and to doc (ents and #a#ers #ertaining to official acts, transactions, or decisions, shall be afforded the citiEen s b<ect to s ch li(itations as (ay be #rovided by law' "n infor(ed citiEenry with access to the diverse c rrents in #olitical, (oral and artistic tho ght and data relative to the(, and the free exchange of ideas and disc ssion of iss es thereon, is vital to the de(ocratic govern(ent envisioned nder o r !onstit tion' The cornerstone of this re# blican syste( of govern(ent is delegation of #ower by the #eo#le to the State' In this syste(, govern(ental agencies and instit tions o#erate within the li(its of the a thority conferred by the #eo#le' Denied access to infor(ation on the inner workings of govern(ent, the citiEenry can beco(e #rey to the whi(s and ca#rices of those to who( the #ower had been delegated' The #ost late of # blic office as a # blic tr st, instit tionaliEed in the !onstit tion /in "rt' MI, Sec' ,0 to #rotect the #eo#le fro( ab se of govern(ental #ower, wo ld certainly be were e(#ty words if access to s ch infor(ation of # blic concern is denied, exce#t nder li(itations #rescribed by i(#le(enting legislation ado#ted # rs ant to the !onstit tion' $etitioners are #ractitioners in (edia' "s s ch, they have both the right to gather and the obligation to check the acc racy of infor(ation the disse(inate' )or the(, the freedo( of the #ress and of s#eech is not only critical, b t vital to the exercise of their #rofessions' The right of access to infor(ation ens res that these freedo(s are not rendered n gatory by the govern(entIs (ono#oliEing #ertinent infor(ation' )or an essential ele(ent of these freedo(s is to kee# o#en a contin ing dialog e or #rocess of co(( nication between the govern(ent and the #eo#le' It is in the interest of the State that the channels for free #olitical disc ssion be (aintained to the end that the govern(ent (ay #erceive and be res#onsive to the #eo#leIs will' Cet, this o#en dialog e can be effective only to the extent that the citiEenry is infor(ed and th s able to for( late its will intelligently' Only when the #artici#ants in the disc ssion are aware of the iss es and have access to infor(ation relating thereto can s ch bear fr it' The right to infor(ation is an essential #re(ise of a (eaningf l right to s#eech and ex#ression' 6 t this is not to say that the right to infor(ation is (erely an ad< nct of and therefore restricted in a##lication by the exercise of the freedo(s of s#eech and of the #ress' )ar fro( it' The right to infor(ation goes hand8in8hand with the constit tional #olicies of +ull public disclosure 6 and honesty in the public service. 66 It is (eant to enhance the widening role of the citiEenry in govern(ental decision8(aking as well as in checking ab se in govern(ent' Cet, like all the constit tional g arantees, the right to infor(ation is not absol te' "s stated in /egaspi, the #eo#leIs right to infor(ation is li(ited to J(atters of # blic concern,J and is f rther Js b<ect to s ch li(itations as (ay be #rovided by law'J

Si(ilarly, the StateIs #olicy of f ll disclos re is li(ited to Jtransactions involving # blic interest,J and is Js b<ect to reasonable conditions #rescribed by law'J Hence, before (anda( s (ay iss e, it ( st be clear that the infor(ation so ght is of J# blic interestJ or J# blic concern,J and is not exe(#ted by law fro( the o#eration of the constit tional g arantee +7egaE#i v' !ivil Service !o((ission , supra, at #' %91'The !o rt has always gra##led with the (eanings of the ter(s J# blic interestJ and J# blic concernJ' "s observed in /ega&piIn deter(ining whether or not a #artic lar infor(ation is of # blic concern there is no rigid test which can be a##lied' J$ blic concernJ like J# blic interestJ is a ter( that el des exact definition' 6oth ter(s e(brace a broad s#ectr ( of s b<ects which the # blic (ay want to know, either beca se these directly affect their lives, or si(#ly beca se s ch (atters nat rally aro se the interest of an ordinary citeEen' In the final analysis, it is for the co rts to deter(ine on a case by case basis whether the (atter at iss e is of interest or i(#ortance, as it relates to or affects the # blic' +)bid' at #' %9,In the (aada case the # blic concern dee(ed covered by the constit tional right to infor(ation was the need for ade* ate notice to the # blic of the vario s laws which are to reg late the actions and cond ct of citeEens' In /egaspi, it was the Jlegiti(ate concern of citeEensof ens re that govern(ent #ositions re* iring civil service eligibility are occ #ied only by #ersons who are eligiblesJ +#upra at #' %=4'The infor(ation so ght by #etitioners in this case is the tr th of re#orts that certain 5e(bers of the 6atasang $a(bansa belonging to the o##osition were able to sec re JcleanJ loans fro( the :SIS i((ediately before the )ebr ary 3, ,4H> election thro gh the intercession of th efor(er )irst 7ady, 5rs' I(elda 5arcos' The :SIS is a tr stee of contrib tions fro( the govern(ent and its e(#loyees and the ad(inistrator of vario s ins rance #rogra(s for the benefit of the latter' Gndeniably, its f nds ass (e a # blic character' 5ore #artic larly, Secs' %/b0 and 9> of $'D' ,,9>, as a(ended /the Revised :overn(ent Service Ins rance "ct of ,4330, #rovide for ann al a##ro#riations to #ay the contrib tions, #re(i (s, interest and other a(o nts #ayable to :SIS by the govern(ent, as e(#loyer, as well as the obligations which the Re# blic of the $hili##ines ass (es or g arantees to #ay' !onsidering the nat re of its f nds, the :SIS is ex#ected to (anage its reso rces with t(ost #r dence and in strict co(#liance with the #ertinent laws or r les and reg lations' Th s, one of the reasons that #ro(#ted the revision of the old :SIS law /!'"' No' ,H>, as a(ended0 was the necessity Jto #reserve at all ti(es the act arial solvency of the f nds ad(inistered by the Syste(J +Second Ahereas !la se, $'D'

No' ,,9>'- !onse* ently, as res#ondent hi(self ad(its, the :SIS Jis not s ##osed to grant Iclean loans'IJ +!o((ent, #' H'- It is therefore the legiti(ate concern of the # blic to ens re that these f nds are (anaged #ro#erly with the end in view of (axi(iEing the benefits that accr e to the ins red govern(ent e(#loyees' 5oreover, the s ##osed borrowers were 5e(bers of the def nct 6atasang $a(bansa who the(selves a##ro#riated f nds for the :SIS and were therefore ex#ected to be the first to see to it that the :SIS #erfor(ed its tasks with the greatest degree of fidelity and that an its transactions were above board' In s (, the # blic nat re of the loanable f nds of the :SIS and the # blic office held by the alleged borrowers (ake the infor(ation so ght clearly a (atter of # blic interest and concern' " second re* isite ( st be (et before the right to infor(ation (ay be enforced thro gh (anda( s #roceedings,vi&', that the infor(ation so ght ( st not be a(ong those excl ded by law' Res#ondent (aintains that a confidential relationshi# exists between the :SIS and its borrowers' It is arg ed that a #olicy of confidentiality restricts the indiscri(inate disse(ination of infor(ation' Cet, res#ondent has failed to cite any law granting the :SIS the #rivilege of confidentiality as regards the doc (ents s b<ect of this #etition' His #osition is a##arently based (erely on considerations of #olicy' The < diciary does not settle #olicy iss es' The !o rt can only declare what the law is, and not what the law sho ld be' Gnder o r syste( of govern(ent, #olicy iss es are within the do(ain of the #olitical branches of the govern(ent, and of the #eo#le the(selves as the re#ository of all State #ower' Res#ondent however contends that in view of the right to #rivacy which is e* ally #rotected by the !onstit tion and by existing laws, the doc (ents evidencing loan transactions of the :SIS ( st be dee(ed o tside the a(bit of the right to infor(ation' There can be no do bt that right to #rivacy is constit tionally #rotected' In the land(ark case of Mor+e v. Mutuc+,=& $hil' 9,% /,4>H0, 11 S!R" 919-, this !o rt, s#eaking thro gh then 5r' D stice )ernando, stated@ ''' The right to #rivacy as s ch is accorded recognition inde#endently of its identification with liberty? in itself, it is f lly deserving of constit tional #rotection' The lang age of $rof' B(erson is #artic larly a#t@ JThe conce#t of li(ited govern(ent has always incl ded the idea that govern(ental #owers sto# short of certain intr sions into the #ersonal life of the citiEen' This is indeed one of the basic distinctions between absol te and li(ited

govern(ent' GIti(ate and #ervasive control of the individ al, in all as#ects of his life, is the hall(ark of the absol te' state, In contrast, a syste( of li(ited govern(ent safeg ards a #rivate sector, which belongs to the individ al, fir(ly disting ishing it fro( the # blic sector, which the state can control' $rotection of this #rivate sector P #rotection, in other words, of the dignity and integrity of the individ al P has beco(e increasingly i(#ortant as (ode( society has develo#ed' "ll the forces of technological age P ind strialiEation, rbaniEation, and organiEation P o#erate to narrow the area of #rivacy and facilitate intr sion into it' In (odern ter(s, the ca#acity to (aintain and s ##ort this enclave of #rivate life (arks the difference between a de(ocratic and a totalitarian society'J +at ##' 999899%'Ahen the infor(ation re* ested fro( the govern(ent intr des into the #rivacy of a citiEen, a #otential conflict between the rights to infor(ation and to #rivacy (ay arise' However, the co(#eting interests of these rights need not be resolved in this case' "##arent fro( the above8* oted state(ent of the !o rt in Mor+e is that the right to #rivacy belongs to the individ al in his #rivate ca#acity, and not to # blic and govern(ental agencies like the :SIS' 5oreover, the right cannot be invoked by < ridical entities like the :SIS' "s held in the case of Vassar College v. /oose 0ills Biscuit Co. +,43 )' 4H1 /,4,10-, a cor#oration has no right of #rivacy in its na(e since the entire basis of the right to #rivacy is an in< ry to the feelings and sensibilities of the #arty and a cor#oration wo ld have no s ch gro nd for relief' Neither can the :SIS thro gh its :eneral 5anager, the res#ondent, invoke the right to #rivacy of its borrowers' The right is # rely #ersonal in nat re + C+. "tkinson v' Dohn Doherty O !o', ,1, 5ich =31, H& N'A' 1H%, 9> 7'R"' 1,4 /,H440? Sch yler v' ! rtis, ,93 N'C' 9=9, 91 N'B' 11, =, 7'R'"' 1H> /,H4%00, and hence (ay be invoked only by the #erson whose #rivacy is clai(ed to be violated' It (ay be observed, however, that in the instant case, the concerned borrowers the(selves (ay not s cceed if they choose to invoke their right to #rivacy, considering the # blic offices they were holding at the ti(e the loans were alleged to have been granted' It cannot be denied that beca se of the interest they generate and their newsworthiness, # blic fig res, (ost es#ecially those holding res#onsible #ositions in govern(ent, en<oy a (ore li(ited right to #rivacy as co(#ared to ordinary individ als, their actions being s b<ect to closer # blic scr tiny + C+."yer $rod ctions $ty' 7td' v' !a# long, :'R' Nos' H1=H& and H1=4H, "#ril 14, ,4HH? #ee also !ohen v' 5arx, 1,, $' 1d =1, /,4940'Res#ondent next asserts that the doc (ents evidencing the loan transactions of the :SIS are private in nat re and hence, are not covered by the !onstit tional right to infor(ation on (atters of # blic concern which g arantees J/a0ccess

to o++icial records, and to doc (ents, and #a#ers #ertaining to o++icial acts, transactions, or decisionsJ only' It is arg ed that the records of the :SIS, a govern(ent cor#oration #erfor(ing #ro#rietary f nctions, are o tside the coverage of the #eo#leIs right of access to o++icial records' It is f rther contended that since the loan f nction of the :SIS is (erely incidental to its ins rance f nction, then its loan transactions are not covered by the constit tional #olicy of f ll # blic disclos re and the right to infor(ation which is a##licable only to JofficialJ transactions' )irst of all, the Jconstit ent P (inistrantJ dichoto(y characteriEing govern(ent f nction has long been re# diated' In ACC1A v. Con+ederation o+ 2nions and %overnment Corporations and ,++ices /:'R' Nos' 781,9H9 and 781=>&%, Nove(ber 14, ,4>4, =& S!R" >99,, the !o rt said that the govern(ent, whether carrying o t its sovereign attrib tes or r nning so(e b siness, discharges the sa(e f nction of service to the #eo#le' !onse* ently, that the :SIS, in granting the loans, was exercising a #ro#rietary f nction wo ld not < stify the excl sion of the transactions fro( the coverage and sco#e of the right to infor(ation' 5oreover, the intent of the (e(bers of the !onstit tional !o((ission of ,4H>, to incl de govern(ent8owned and controlled cor#orations and transactions entered into by the( within the coverage of the State #olicy of f n # blic disclos re is (anifest fro( the records of the #roceedings@ xxx xxx xxx THB $RBSIDIN: O))I!BR /5r' !olayco0' !o((issioner S areE is recogniEed' 5R' SG"RBQ' Thank yo ' 5ay I ask the :entle(an a few * estionL 5R' O$7B' Very gladly' 5R' SG"RBQ' Thank yo ' Ahen we declare a J#olicy of f ll # blic disclos re of all its transactionsJ P referring to the transactions of the State P and when we say the JStateJ which I s ##ose wo ld incl de all of the vario s agencies, de#art(ents, (inistries and instr (entalities of the govern(ent''''

5R' O$7B' Ces, and individ al # blic officers, 5r' $residing Officer' 5R' SG"RBQ' )ncluding government$owned and controlled corporations. 5R' O$7B' (hat is correct, Mr. "residing ,++icer. 5R' SG"RBQ' "nd when we say JtransactionsJ which sho ld be disting ished fro( contracts, agree(ents, or treaties or whatever, does the :entle(an refer to the ste#s leading to the cons ((ation of the contract, or does he refer to the contract itselfL 5R' O$7B' (he 3transactions3 used here ) suppose is generic and, there+ore, it can cover both steps leading to a contract, and already a consummated contract, Mr. "residing ,++icer. 5R' SG"RBQ' This conte(#lates incl sion of negotiations leading to the cons ((ation of the transaction' 5R' O$7B' Ces, s b<ect only to reasonable safeg ards on the national interest' 5R' SG"RBQ' Thank yo ' +V Record of the !onstit tional !o((ission 1981%'- /B(#hasis s ##lied'0 !onsidering the intent of the fra(ers of the !onstit tion which, tho gh not binding #on the !o rt, are nevertheless #ers asive, and considering f rther that govern(ent8owned and controlled cor#orations, whether #erfor(ing #ro#rietary or govern(ental f nctions are acco ntable to the #eo#le, the !o rt is convinced that transactions entered into by the :SIS, a govern(ent8controlled cor#oration created by s#ecial legislation are within the a(bit of the #eo#leIs right to be infor(ed # rs ant to the constit tional #olicy of trans#arency in govern(ent dealings' In fine, #etitioners are entitled to access to the doc (ents evidencing loans granted by the :SIS, s b<ect to reasonable reg lations that the latter (ay #ro( lgate relating to the (anner and ho rs of exa(ination, to the end that da(age to or loss of the records (ay be avoided, that nd e interference with the d ties of the c stodian of the records (ay be #revented and that the right of other #ersons entitled to ins#ect the records (ay be ins red +7egas#i v' !ivil Service !o((ission, supra at #' %=H, * oting S bido v' OEaeta, H& $hil' =H=, =H3'- The #etition, as to the second and third alternative acts so ght to be done by #etitioners, is (eritorio s' However, the sa(e cannot be said with regard to the first act so ght by #etitioners, i'e', Jto f rnish #etitioners the list of the na(es of the 6atasang $a(bansa (e(bers belonging to the GNIDO and $D$87aban who were able to sec re clean loans

i((ediately before the )ebr ary 3 election thr the intercession;(arginal note of the then )irst 7ady I(elda 5arcos'J "ltho gh citiEens are afforded the right to infor(ation and, # rs ant thereto, are entitled to Jaccess to official records,J the !onstit tion does not accord the( a right to co(#el c stodians of official records to #re#are lists, abstracts, s ((aries and the like in their desire to ac* ire infor(ation on (atters of # blic concern' It ( st be stressed that it is essential for a writ of (anda( s to iss e that the a##licant has a well8defined, clear and certain legal right to the thing de(anded and that it is the i(#erative d ty of defendant to #erfor( the act re* ired' The corres#onding d ty of the res#ondent to #erfor( the re* ired act ( st be clear and s#ecific +7e(i v' Valencia, :'R' No' 781&3>H, Nove(ber 14,,4>H,,1> S!R" 1&=? Oca(#o v' S bido, :'R' No' 781H=99, " g st 13, ,43>, 31 S!R" 99='- The re* est of the #etitioners fails to (eet this standard, there being no d ty on the #art of res#ondent to #re#are the list re* ested' AHBRB)ORB, the instant #etition is hereby granted and res#ondent :eneral 5anager of the :overn(ent Service Ins rance Syste( is ORDBRBD to allow #etitioners access to doc (ents and records evidencing loans granted to 5e(bers of the for(er 6atasang $a(bansa, as #etitioners (ay s#ecify, s b<ect to reasonable reg lations as to the ti(e and (anner of ins#ection, not inco(#atible with this decision, as the :SIS (ay dee( necessary' SO ORDBRBD'

(anner and ho rs of exa(ination, res#ondents 5orato and the classification board have no a thority to deny any citiEen seeking exa(ination of the boardIs records' Re# blic S"PRE,E 5anila of the $hili##ines CO"R# On )ebr ary 13, ,4H4, res#ondent 5orato called an exec tive (eeting of the 5TR!6 to disc ss, a(ong others, the iss e raised by #etitioner' In said (eeting, seventeen /,30 (e(bers of the board voted to declare their individ al voting records as classified doc (ents which rendered the sa(e inaccessible to the # blic witho t clearance fro( the chair(an' Thereafter, res#ondent 5orato denied #etitionerIs re* est to exa(ine the voting sli#s' However, it was only ( ch later, i'e', on D ly 13, ,4H4, that res#ondent 6oard iss ed Resol tion No' ,&8H4 which declared as confidential, #rivate and #ersonal, the decision of the reviewing co((ittee and the voting sli#s of the (e(bers' $etitioner bro ght the (atter to the attention of the Bxec tive Secretary, which in t rn, referred the sa(e to res#ondent 5orato for a##ro#riate co((ent' "nother incident which gave rise to this #etition occ rred in a board (eeting held on D ne 11, ,4H4' In that (eeting, res#ondent 5orato told the board that he has ordered so(e deletions on the (ovie J5ahira# ang 5ag(ahalJ notwithstanding the fact that said (ovie was earlier a##roved for screening by the 6oard with classification JR8,H witho t c tsJ' He ex#lained that his #ower to nilaterally change the decision of the Review !o((ittee is a thoriEed by virt e of 5TR!6 Resol tion No' HH8,81% /dated D ne 11,,4HH0 which allows the chair(an of the board Jto downgrade a fil( /already0 reviewed es#ecially those which are controversial'J $etitioner infor(ed the 6oard, however, that res#ondent 5orato #ossesses no a thority to nilaterally reverse a decision of the review co((ittee nder $D ,4H> /!reating the 5ovie and Television Review and !lassification 6oard0' "fter the (atter was referred by the De# ty Bxec tive Secretary to the D stice Secretary, the latter o#ined that $D ,H4> does not vest res#ondent 5orato any a thority to nilaterally reverse the decision of the review co((ittee b t declined to co((ent on the constit tionality of Res' No' ,&8H4 on the gro nd that the resol tion thereof is a < dicial #rerogative /.ollo, ##' =H8910' The D stice SecretaryIs o#inion to the contrary notwithstanding, res#ondent 5orato o#ted to ignore it' Hence, this #etition anchored on the following@ "' 5OR"TO "ND THB 5TR!6 6C "$$ROVIN: "ND BN)OR!IN: RBSO7GTION NO' ,&8H4 "!TBD AITH :R"VB "6GSB O) DIS!RBTION T"NT"5OGNT TO 7"!R O) DGRISDI!TION 6B!"GSB THB S"5B VIO7"TBS "RTI!7B III SB!TION 3 O) THB ,4H3 !ONSTITGTION'

G.R. No. 92541 No7e82e3 11, 1991 ,A. CAR,EN G. A9"INO*SAR,IEN#O, #etitioner, vs' ,AN"E$ $. ,ORA#O :;n ';< =a>a=;&. a< C'a;38an o? &'e ,#RC4@ an% &'e ,O0IE A #E$E0ISION RE0IE! AN C$ASSIFICA#ION 4OAR , res#ondents. Araullo, 4ambrano, %ruba, Chua /aw 1irm +or petitioner. 1rancisco Ma. Chanco +or respondents. 4I IN, J.:p "t iss e in this #etition is the citiEenIs right of access to official records as g aranteed by the constit tion' In )ebr ary ,4H4, #etitioner, herself a (e(ber of res#ondent 5ovie and Television Review and !lassification 6oard /5TR!60, wrote its records officer re* esting that she be allowed to exa(ine the boardIs records #ertaining to the voting sli#s acco(#lished by the individ al board (e(bers after a review of the (ovies and television #rod ctions' It is on the basis of said sli#s that fil(s are either banned, c t or classified accordingly' "cting on the said re* est, the records officer infor(ed #etitioner that she has to sec re #rior clearance fro( res#ondent 5an el 5orato, as chair(an of 5TR!6, to gain access to the records so ght to be exa(ined' $etitionerIs re* est was event ally denied by res#ondent 5orato on the gro nd that whenever the (e(bers of the board sit in < dg(ent over a fil(, their decisions as reflected in the individ al voting sli#s #artake the nat re of conscience votes and as s ch, are # rely and co(#letely #rivate and #ersonal' It is the s b(ission of res#ondents that the individ al voting sli#s is the excl sive #ro#erty of the (e(ber concerned and anybody who wants access thereto ( st first sec re his /the (e(berIs0 consent, otherwise, a re* est therefor (ay be legally denied' $etitioner arg es, on the other hand, that the records she wishes to exa(ine are # blic in character and other than #roviding for reasonable conditions reg lating the

6' 5TR!6 RBSO7GTION NO' HH8,81% H"S NO 7B:"7 6"SIS "ND !ONSTITGTBS "N GN7"A)G7 DB7B:"TION O) DIS!RBTION"RC $OABRS' !' 5OR"TO "ND THB 5TR!6 6C RB)GSIN: TO "6IDB 6C O$INION NO' , SBRIBS O) ,44& O) THB SB!RBT"RC O) DGSTI!B "ND 6C INSISTIN: ON THB V"7IDITC O) RBSO7GTION NO' HH8,81% "!TBD !"$RI!IOGS7C, "R6ITR"RI7C, IN 6"D )"ITH, IN BM!BSS O) THBIR DGRISDI!TION, "ND AITH :R"VB "6GSB O) DIS!RBTION' $etitioner therefore seeks the n llification of ,0 5TR!6 Resol tion No' HH8,81% which allows the !hair(an of the 6oard to nilaterally downgrade a fil( /already0 reviewed es#ecially those which are controversial and 10 5TR!6 RBSO7GTION No' ,&8H4 /dated D ly 13, ,4H40 declaring as strictly confidential, #rivate and #ersonal a0 the decision of a reviewing co((ittee which #revio sly reviewed a certain fil( and b0 the individ al voting sli#s of the (e(bers of the co((ittee that reviewed the fil(' Res#ondents arg e at the o tset that the instant #etition sho ld be dis(issed o tright for having failed to co(#ly with the doctrine of exha stion of ad(inistrative re(edies' Ae disagree' The doctrine of exha stion of ad(inistrate re(edies si(#ly #rovides that before a #arty litigant is allowed resort to the co rts, he is re* ired to co(#ly with all ad(inistrative re(edies available nder the law /Rosales v' !o rt of "##eals, ,>% S!R" =99 +,4HH-0' The rationale behind this sal tory #rinci#le is that for reasons of #ractical considerations, co(ity and convenience, the co rts of law will not entertain a case ntil all the available ad(inistrative re(edies #rovided by law have been resorted to and the a##ro#riate a thorities have been given a(#le o##ort nity to act and to correct the errors co((itted in the ad(inistrative level' If the error is rectified, < dicial intervention wo ld then be nnecessary' Nonetheless, the doctrine of exha stion of ad(inistrative re(edies is not absol te' The a##licability of the #rinci#le ad(its of certain exce#tions, s ch as@ ,0 when no ad(inistrative review is #rovided by law? 10 when the only * estion involved is one of law /Val(onte v' Val(onte, ,3& S!R" 1%> +,4H4-, citing "g ilar v' Valencia, 9& S!R" 1,& +,43,-? 5alabanan v' Ra(ento, ,14 S!R" =%4 +,4H9-? 6agatsing v' Ra(ireE, 39 S!R" =&>? Del 5ar v' $hili##ine Veterans "d(inistration, %, S!R" =9& +,43=-? $asc al v' $rovincial 6oard, ,&> $hil' 9>> +,4%4-? =0 where the #arty invoking the doctrine is g ilty of esto##el /Vda' de Tan v' VeteransI 6ack#ay !o((ission +,4>4-? 90 where the challenged ad(inistrative action is #atently illegal, arbitrary and o##ressive /"E r v' $rovincial 6oard, 13 S!R" %& +,4>4-? National Develo#(ent !o' v' !ollector of ! sto(s of 5anila, 4 S!R" 914 +,4>=-? %0 where there is nreasonable delay or official inaction that wo ld greatly #re< dice the co(#lainant /:ravador v' 5a(igo, 1& S!R" 391 +,4>3-? "E elo v' "rnaldo, ,&H

$hil' 14= +,4>&-? >0 where to exha st ad(inistrative review is i(#ractical and nreasonable /!i#riano v' 5arcelino, 9= S!R" 14,0? and 30 where the r le of * alified #olitical agency a##lies /De(aisi# v' !o rt of "##eals, ,&> $hil' 1=3 +,4&>-0' The iss e raised in the instant #etition is one of law, hence the doctrine of non8 exha stion of ad(inistrative re(edy relied #on by res#ondents is ina##licable and cannot be given any effect' "t any rate, records are re#lete with events #ointing to the fact that #etitioner adhered to the ad(inistrative #rocesses in the dis#osition of the assailed resol tions of # blic res#ondents #rior to filing the instant #etition by, a(ong others, writing the Bxec tive Secretary and bringing the (atter to the attention of the Office of the $resident / .ollo, ##' ,9%8,930' Res#ondentsI clai( that #etitioner failed to exha st ad(inistrative re(edies ( st therefore fail' Having dis#osed of the #roced ral ob<ection raised by res#ondents, Ae now #roceed to resolve the iss es raised by #etitioner' In this regard, Ae find res#ondentsI ref sal to allow #etitioner to exa(ine the records of res#ondent 5TR!6, #ertaining to the decisions of the review co((ittee as well as the individ al voting sli#s of its (e(bers, as violative of #etitionerIs constit tional right of access to # blic records' 5ore s#ecifically, Sec' 3, "rt' III of the !onstit tion #rovides that@ The right of the #eo#le to infor(ation on (atters of # blic concern shall be recogniEed' Access to o++icial records, and to documents, and papers pertaining to o++icial acts, transactions, or decisions, as well as to govern(ent research data sed as basis for #olicy develo#(ent, shall be afforded the citiEen, s b<ect to s ch li(itations as (ay be #rovided by law' /e(#hasis s ##lied0 "s Ae held in /egaspi v. Civil #ervice Commission /,%& S!R" %=& +,4H3-0, this constit tional #rovision is self8exec tory and s ##lies Jthe r les by (eans of which the right to infor(ation (ay be en<oyed /!ooley, " Treatise on !onstit tional 7i(itations ,>3 +,413-0 by g aranteeing the right and (andating the d ty to afford access to so rces of infor(ation' Hence, the f nda(ental right therein recogniEed (ay be asserted by the #eo#le #on the ratification of the constit tion witho t need for any ancillary act of the 7egislat re / )d' at ,>%0' Ahat (ay be #rovided for by the 7egislat re are reasonable conditions and li(itations #on the access to be afforded which ( st, of necessity, be consistent with the declared State $olicy of f ll # blic disclos re of all transactions involving # blic interest /!onstit tion, "rt' II, Sec' 1H0'J /See also TaNada v' T vera, ,=> S!R" 13 +,4H%-? Val(onte v' 6el(onte, Dr', ,3& S!R" 1%> +,4H4-0' Res#ondents contend, however, that what is rendered by the (e(bers of the board in reviewing fil(s and reflected in their individ al voting sli# is their individ al vote of conscience on the (otion #ict re or television #rogra( and as s ch, (akes the

individ al voting sli# # rely #rivate and #ersonal? an excl sive #ro#erty of the (e(ber concerned' The ter( #rivate has been defined as Jbelonging to or concerning, an individ al #erson, co(#any, or interestJ? whereas, # blic (eans J#ertaining to, or belonging to, or affecting a nation, state, or co(( nity at largeJ /$eo#le v' $owell, 139 NA =31 +,4=3-0' 5ay the decisions of res#ondent 6oard and the individ al (e(bers concerned, arrived at in an official ca#acity, be considered #rivateL !ertainly not' "s (ay be gleaned fro( the decree /$D ,4H>0 creating the res#ondent classification board, there is no do bt that its very existence is # blic is character? it is an office created to serve # blic interest' It being the case, res#ondents can lay no valid clai( to #rivacy' The right to #rivacy belongs to the individ al acting in his #rivate ca#acity and not to a govern(ental agency or officers tasked with, and acting in, the discharge of # blic d ties /See Val(onte v' 6el(onte, Dr', supra.0 There can be no invasion of #rivacy in the case at bar since what is so ght to be div lged is a #rod ct of action ndertaken in the co rse of #erfor(ing official f nctions' To declare otherwise wo ld be to clothe every # blic official with an i(#regnable (antle of #rotection against # blic scr tiny for their official acts' ) rther, the decisions of the 6oard and the individ al voting sli#s acco(#lished by the (e(bers concerned are acts (ade # rs ant to their official f nctions, and as s ch, are neither #ersonal nor #rivate in nat re b t rather # blic in character' They are, therefore, # blic records access to which is g aranteed to the citiEenry by no less than the f nda(ental law of the land' 6eing a # blic right, the exercise thereof cannot be (ade contingent on the discretion, nay, whi( and ca#rice, of the agency charged with the c stody of the official records so ght to be exa(ined' The constit tional recognition of the citiEenIs right of access to official records cannot be (ade de#endent #on the consent of the (e(bers of the board concerned, otherwise, the said right wo ld be rendered n gatory' "s stated by this !o rt in #ubido v. ,&aeta /H& $hil' =H= +,49H-0@ Bxce#t, #erha#s when it is clear that the # r#ose of the exa(inations is nlawf l, or sheer, idle c riosity, we do not believe it is the d ty nder the law of registration officers to concern the(selves with the (otives, reasons, and ob<ects of the #erson seeking access to the records' It is not their #rerogative to see that the infor(ation which the records contain is not fla nted before # blic gaEe, or that scandal is not (ade of it' )+ it be wrong to publish the contents o+ the records, it is the legislature and not the o++icials having custody thereo+ which is called upon to devise a remedy. /e(#hasis s ##lied0 It is significant to #oint o t that this !o rt in the ,49H case of S bido v' OEaeta , supra, #held the right to infor(ation based on the stat tory right then #rovided in Sec' %> of the 7and Registration "ct /"ct 94>, as a(ended0' !onse* ently, Ae see

no cogent reason why said right, now constit tionaliEed, sho ld be given less efficacy and #ri(acy than what the f nda(ent law (andates' The !o rt is not naware of R" >3,= /!ode of !ond ct and Bthical Standards for $ blic Officials and B(#loyees0 which #rovides, a(ong others, certain exce#tions as regards the availability of official records or doc (ents to the re* esting # blic, e'g', closed door !abinet sessions and deliberations of this !o rt' S ffice it to state, however, that the exce#tions therein en (erated find no a##lication in the case at bar' $etitioner re* est is not concerned with the deliberations of res#ondent 6oard b t with its doc (ents or records (ade after a decision or order has been rendered' Neither will the exa(ination involve disclos re of trade secrets or (atters #ertaining to national sec rity which wo ld otherwise li(it the right of access to official records /See 7egas#i v' !ivil Service !o((ission,supra0' Ae are likewise not i(#ressed with the #ro#osition advanced by res#ondents that res#ondent 5orato is e(#owered by $D ,4H> to nilaterally downgrade or #grade a fil( reviewed es#ecially those which are controversial' The #ertinent #rovisions of said decree #rovides@ Sec 9' Decision. P The decision of the 6O"RD either a##roving or disa##roving for exhibition in the $hili##ines a (otion #ict re, television #rogra(, still and other #ictorial advertise(ent s b(itted to it for exa(ination and #review ( st be rendered within a #eriod of ten /,&0 days which shall be co nted fro( the date of recei#t by the 6O"RD of an a##lication for the # r#ose ' ' ' )or each review session, the !hair(an of the 6oard shall designate a s b8 co((ittee co(#osed of at least three 6O"RD (e(bers to ndertake the work of review' "ny disa##roval or deletion ( st be a##roved by a (a<ority of the s b8co((ittee (e(bers so designated' "fter recei#t of the written decision of the s b8co((ittee, a (otion for reconsideration in writing (ay be (ade, #on which the !hair(an of the 6oard shall designate a s b8co((ittee of five 6O"RD (e(bers to ndertake a second review session, whose decision on behalf of the 6oard shall be rendered thro gh a (a<ority of the s b8co((ittee (e(bers so designated and #resent at the second review session' This second review session shall be #resided over by the !hair(an, or the Vice8!hair(an' The decision of the 6O"RD in the second review session shall be rendered within five /%0 days fro( the date of recei#t of the (otion for reconsideration' Bvery decision of the 6O"RD disa##roving a (otion #ict re, television #rogra( or # blicity (aterial for exhibition in the $hili##ines ( st be in writing, and shall state the reasons or gro nds for s ch disa##roval' No fil( or (otion #ict re intended for exhibition at the (ovieho ses or theaters or on television shall be disa##roved by reason of its to#ic, the(e

or s b<ect (atter, b t #on the (erits of each #ict re or #rogra( considered in its entirety' The second decision of the 6O"RD shall be final, with the exce#tion of a decision disa##roving or #rohibiting a (otion #ict re or television #rogra( in its entirety which shall be a##ealable to the $resident of the $hili##ines, who (ay hi(self decide the a##eal, or be assisted either by an ad hoe co((ittee he (ay create or by the "##eals !o((ittee herein created' "n "##eals !o((ittee in the Office of the $resident of the $hili##ines is hereby created co(#osed of a !hair(an and fo r /90 (e(bers to be a##ointed by the $resident of the $hili##ines, which shall s b(it its reco((endation to the $resident' The Office of the $residential "ssistant for 7egal "ffairs shall serve as the Secretariat of the "##eals !o((ittee' The decision of the $resident of the $hili##ines on any a##ealed (atter shall be final' I(#le(enting R les and Reg lations Sec ,,' .eview by #ub$Committee o+ (hree. P a0 " #ro#er a##lication having been filed, the !hair(an of the 6oard shall, as the exigencies of the service (ay #er(it, designate a S b8!o((ittee of at least three 6oard 5e(bers who shall (eet, with notice to the a##licant, within ten days fro( recei#t of the co(#leted a##lication' The S b8!o((ittee shall then #review the (otion #ict re s b<ect of the a##lication' b0 I((ediately after the #review, the a##licant or his re#resentative shall withdraw to await the res lts of the deliberation of the S b8!o((ittee' "fter reaching a decision, the S b8!o((ittee shall s ((on the a##licant or his re#resentative and infor( hi( of its decision giving hi( an o##ort nity either to re* est reconsideration or to offer certain c ts or deletions in exchange for a better classification' The decision shall be in writing, stating, in case of disa##roval of the fil( or denial of the classification rating desired or both, the reason or reasons for s ch disa##roval or denial and the classification considered by the S b8 !o((ittee (e(ber dissenting fro( the (a<ority o#inion (ay ex#ress his dissent in writing' c0 The decision incl ding the dissenting o#inion, if any, shall i((ediately be s b(itted to the !hair(an of the 6oard for trans(ission to the a##licant'

Sec ,1' .eview by #ub$Committee o+ 1ive. 5 Aithin five days fro( recei#t of a co#y of the decision of the S b8!o((ittee referred to in the #receding section, the a##licant (ay file a (otion for reconsideration in writing of that decision' On recei#t of the (otion, the !hair(an of the 6oard shall designate a S b8!o((ittee of )ive 6oard 5e(bers which shall consider the (otion and, within five days of recei#t of s ch (otion, cond ct a second #review of the fil(' The review shall, to the extent a##licable, follow the sa(e #roced re #rovided in the #receding section' Sec ,=' .eclassi+ication. P "n a##licant desiring a change in the classification rating given his fil( by either the S b8!o((ittee of ThreeL or !o((ittee of )ive (entioned in the i((ediately #receeding two sections (ay re8edit s ch fil( and a##ly anew with the 6oard for its review and reclassification' Sec ,9' Appeal. P The decision of the !o((ittee of )ive 6oard 5e(bers in the second review shall be final, with the exce#tion of a decision disa##roving or #rohibiting a (otion #ict re in its entirety which shall be a##ealable to the $resident of the $hili##ines who (ay hi(self decide the a##eal or refer it to the "##eals !o((ittee in the Office of the $resident for ad< dication' On the other hand, the #owers and f nctions of the 5TR!6 !hair(an are fo nd in Section % of the sa(e decree as follows@ Sec' %' E*ecutive ,++icer. P The !hair(an of the 6O"RD shall be the !hief Bxec tive Officer of the 6O"RD' He shall exercise the following f nctions, #owers and d ties@ /a0 Bxec te, i(#le(ent and enforce the decisions, orders, awards, r les and reg lations iss ed by the 6O"RD? /b0 Direct and s #ervise the o#erations and the internal affairs of the 6O"RD? /c0 Bstablish the internal organiEation and ad(inistrative #roced res of the 6O"RD, and reco((end to the 6O"RD the a##oint(ent of the necessary ad(inistrative and s bordinate #ersonnel? and /d0 Bxercise s ch other #owers and f nctions and #erfor( s ch d ties as are not s#ecifically lodged in the 6O"RD' It is at once a##arent fro( a reading of the above #rovisions of $D ,4H> that res#ondent 5orato, as !hair(an of the 5TR!6, is not vested with any a thority to

reverse or overr le by hi(self alone a decision rendered by a co((ittee which cond cted a review of (otion #ict res or television #rogra(s' The #ower to classify (otion #ict res into categories s ch as J:eneral $atronageJ or J)or "d lts OnlyJ is vested with the res#ondent 6oard itself and not with the !hair(an thereof /Sec' = +e-, $D ,4H>0' "s !hief Bxec tive Officer, res#ondent 5oratoIs f nction as !hair(an of the 6oard calls for the i(#le(entation and exec tion, not (odification or reversal, of the decisions or orders of the latter /Sec' % +a-, )bid.0' The #ower of classification having been re#osed by law excl sively with the res#ondent 6oard, it has no choice b t to exercise the sa(e as (andated by law, i'e', as a collegial body, and not transfer it elsewhere or discharge said #ower thro gh the intervening (ind of another' Delegata potestas non potest delegari 5 a delegated #ower cannot be delegated' "nd since the act of classification involves an exercise of the 6oardIs discretionary #ower with (ore reason the 6oard cannot, by way of the assailed resol tion, delegate said #ower for it is an established r le in ad(inistrative law that discretionary a thority cannot be a s b<ect of delegation' AHBRB)ORB, the instant #etition is :R"NTBD' Resol tion Nos' ,&8H4 and HH8,8 1% iss ed by the res#ondent 6oard are hereby declared n ll and void' SO ORDBRBD'

#'e Fa=&< $etitioner )rancisco I' !haveE, as .tax#ayer, citiEen and for(er govern(ent official who initiated the #rosec tion of the 5arcoses and their cronies who co((itted n(itigated #l nder of the # blic treas ry and the syste(atic s b< gation of the co ntryFs econo(y,2 alleges that what i(#elled hi( to bring this action were several news re#orts+1- bannered in a n (ber of broadsheets so(eti(e in Se#te(ber ,443' These news ite(s referred to /,0 the alleged discovery of billions of dollars of 5arcos assets de#osited in vario s coded acco nts in Swiss banks? and /10 the re#orted exec tion of a co(#ro(ise, between the govern(ent /thro gh $!::0 and the 5arcos heirs, on how to s#lit or share these assets' )IRST DIVISION [G.R. No. 110-16. e=e82e3 9, 199/] $etitioner, invoking his constit tional right to infor(ation +=- and the correlative d ty of the state to disclose # blicly all its transactions involving the national interest,+9- de(ands that res#ondents (ake # blic any and all negotiations and agree(ents #ertaining to $!::Fs task of recovering the 5arcosesF ill8gotten wealth' He clai(s that any co(#ro(ise on the alleged billions of ill8gotten wealth involves an iss e of .#ara(o nt # blic interest,2 since it has a .debilitating effect on the co ntryFs econo(y2 that wo ld be greatly #re< dicial to the national interest of the )ili#ino #eo#le' Hence, the #eo#le in general have a right to know the transactions or deals being contrived and effected by the govern(ent' Res#ondents, on the other hand, do not deny forging a co(#ro(ise agree(ent with the 5arcos heirs' They clai(, tho gh, that #etitionerFs action is #re(at re, beca se there is no showing that he has asked the $!:: to disclose the negotiations and the "gree(ents' "nd even if he has, $!:: (ay not yet be co(#elled to (ake any disclos re, since the #ro#osed ter(s and conditions of the "gree(ents have not beco(e effective and binding' Res#ondents f rther aver that the 5arcos heirs have s b(itted the s b<ect "gree(ents to the Sandiganbayan for its a##roval in !ivil !ase No' ,9,, entitled .epublic v. 7eirs o+ 1erdinand E. Marcos, and that the Re# blic o##osed s ch (ove on the #rinci#al gro nds that /,0 said "gree(ents have not been ratified by or even s b(itted to the $resident for a##roval, # rs ant to Ite( No' H of the :eneral "gree(ent? and /10 the 5arcos heirs have failed to co(#ly with their ndertakings therein, #artic larly the collation and s b(ission of an inventory of their assets' The Re# blic also cited an "#ril ,,, ,44% Resol tion in !ivil !ase No' &,>%, in which the Sandiganbayan dis(issed a si(ilar #etition filed by the 5arcosesF attorney8in8fact' ) rther(ore, then $resident )idel V' Ra(os, in his 5ay 9, ,44H 5e(orand (+%- to then $!:: !hair(an 5agtanggol : nig ndo, categorically stated@ .This is to reiterate (y #revio s #osition e(bodied in the $alace $ress Release of > "#ril ,44% that I have not a thoriEed yo to a##rove the !o(#ro(ise "gree(ents of Dece(ber 1H, ,44= or any agree(ent at all with the 5arcoses, and wo ld have disa##roved the( had they been s b(itted to (e'

FRANCISCO I. C(A0E), petitioner, vs. PRESI EN#IA$ CO,,ISSION ON GOO GO0ERN,EN# :PCGG@ an% ,AG#ANGGO$ G"NIG"N O, :;n ';< =a>a=;&. a< ='a;38an o? &'e PCGG@, respondents. G$ORIA A. JOPSON, CE$NAN A. JOPSON, SCAR$E# A. JOPSON, an% #ERESA A. JOPSON, petitioners-inintervention. ECISION PANGANI4AN, J: $etitioner asks this !o rt to define the nat re and the extent of the #eo#leFs constit tional right to infor(ation on (atters of # blic concern' Does this right incl de access to the ter(s of govern(ent negotiations priorto their cons ((ation or concl sionL 5ay the govern(ent, thro gh the $residential !o((ission on :ood :overn(ent /$!::0, be re* ired to reveal the #ro#osed ter(s of a co(#ro(ise agree(ent with the 5arcos heirs as regards their alleged ill8gotten wealthL 5ore s#ecifically, are the .:eneral "gree(ent2 and .S ##le(ental "gree(ent,2 both dated Dece(ber 1H, ,44= and exec ted between the $!:: and the 5arcos heirs, valid and bindingL #'e Ca<e These are the (ain * estions raised in this original action seeking /,0 to #rohibit and .+e-n<oin res#ondents +$!:: and its chair(an- fro( #rivately entering into, #erfecting and;or exec ting any agree(ent with the heirs of the late $resident )erdinand B' 5arcos x x x relating to and concerning the #ro#erties and assets of )erdinand 5arcos located in the $hili##ines and;or abroad 88 incl ding the so8 called 5arcos gold hoard2? and /10 to .+c-o(#el res#ondent+s- to ma6e public all negotiations and agree(ent, be they ongoing or #erfected, and all doc (ents related to or relating to s ch negotiations and agree(ent between the $!:: and the 5arcos heirs'2+,-

.The ) ll $owers of "ttorney of 5arch ,449 and D ly 9, ,449, did not a thoriEe yo to a##rove said "gree(ents, which I reserve for (yself as $resident of the Re# blic of the $hili##ines'2 The assailed #rinci#al "gree(ent+>- reads@ .:BNBR"7 ":RBB5BNT RNOA "77 5BN 6C THBSB $RBSBNTS@ This "gree(ent entered into this 1Hth day of Dece(ber, ,44=, by and between 8 The Re# blic of the $hili##ines, thro gh the $residential !o((ission on :ood :overn(ent /$!::0, a govern(ental agency vested with a thority defined nder Bxec tive Orders Nos' ,, 1 and ,9, with offices at the $hilco(cen 6 ilding, $asig, 5etro 5anila, re#resented by its !hair(an referred to as the )IRST $"RTC, 88 and 88 Bstate of )erdinand B' 5arcos, re#resented by I(elda Ro( aldeE 5arcos and )erdinand R' 5arcos, Dr', all of legal age, and with address at c;o No' ,%9 7o#eE RiEal St', 5andal yong, 5etro 5anila, and I(elda Ro( aldeE 5arcos, I(ee 5arcos 5anotoc, )erdinand B' 5arcos, Dr', and Irene 5arcos "raneta, hereinafter collectively referred to as the $RIV"TB $"RTC' A I T N B S S B T H@ AHBRB"S, the $RIV"TB $"RTC has been i(#elled by their sense of nationalis( and love of co ntry and of the entire )ili#ino #eo#le, and their desire to set # a fo ndation and finance i(#act #ro<ects like installation of #ower #lants in selected r ral areas and initiation of other co(( nity #ro<ects for the e(#ower(ent of the #eo#le? AHBRB"S, the )IRST $"RTC has obtained a < dg(ent fro( the Swiss )ederal Trib nal of Dece(ber 1,, ,44&, that the S=%> (illion belongs in #rinci#le to the Re# blic of the $hili##ines #rovided certain conditionalities are (et, b t even after 3 years, the )IRST $"RTC has not been able to #roc re a final < dg(ent of conviction against the $RIV"TB $"RTC? AHBRB"S, the )IRST $"RTC is desiro s of avoiding a long8drawn o t litigation which, as #roven by the #ast 3 years, is cons (ing (oney, ti(e and effort, and is

co nter8#rod ctive and ties # assets which the )IRST $"RTC co ld otherwise tiliEe for its !o(#rehensive "grarian Refor( $rogra(, and other rgent needs? AHBRB"S, His Bxcellency, $resident )idel V' Ra(os, has ado#ted a #olicy of nity and reconciliation in order to bind the nationFs wo nds and start the #rocess of reb ilding this nation as it goes on to the twenty8first cent ry? AHBRB"S, this "gree(ent settles all clai(s and co nterclai(s which the #arties (ay have against one another, whether #ast, #resent, or f t re, (at red or inchoate' NOA, THBRB)ORB, for and in consideration of the ( t al covenants set forth herein, the #arties agree as follows@ ,' The #arties will collate all assets #res (ed to be owned by, or held by other #arties for the benefit of, the $RIV"TB $"RTC for # r#oses of deter(ining the totality of the assets covered by the settle(ent' The s b<ect assets shall be classified by the nat re thereof, na(ely@ /a0 real estate? /b0 <ewelry? /c0 #aintings and other works of art? /d0 sec rities? /e0 f nds on de#osit? /f0 #recio s (etals, if any, and /g0 (iscellaneo s assets or assets which co ld not a##ro#riately fall nder any of the #receding classification' The list shall be based on the f ll disclos re of the $RIV"TB $"RTC to ins re its acc racy' 1' 6ased on the inventory, the )IRST $"RTC shall deter(ine which shall be ceded to the )IRST $"RTC, and which shall be assigned to;retained by the $RIV"TB $"RTC' The assets of the $RIV"TB $"RTC shall be net of, and exe(#t fro(, any for( of taxes d e the Re# blic of the $hili##ines' However, considering the navailability of all #ertinent and relevant doc (ents and infor(ation as to balances and ownershi#, the act al s#ecification of assets to be retained by the $RIV"TB $"RTC shall be covered by s ##le(ental agree(ents which shall for( #art of this "gree(ent' =' )oreign assets which the $RIV"TB $"RTC shall f lly disclose b t which are held by tr stees, no(inees, agents or fo ndations are hereby waived over by the $RIV"TB $"RTC in favor of the )IRST $"RTC' )or this # r#ose, the #arties shall coo#erate in taking the a##ro#riate action, < dicial and;or extra< dicial, to recover the sa(e for the )IRST $"RTC' 9' "ll disclos res of assets (ade by the $RIV"TB $"RTC shall not be sed as evidence by the )IRST $"RTC in any cri(inal, civil, tax or ad(inistrative case, b t shall be valid and binding against said $"RTC for se by the )IRST $"RTC in withdrawing any acco nt and;or recovering any asset' The $RIV"TB $"RTC withdraws any ob<ection to the withdrawal by and;or release to the )IRST $"RTC by the Swiss banks and;or Swiss a thorities of the S=%> (illion, its

accr ed interests, and;or any other acco nt? over which the $RIV"TB $"RTC waives any right, interest or #artici#ation in favor of the )IRST $"RTC' However, any withdrawal or release of any acco nt afore(entioned by the )IRST $"RTC shall be (ade in the #resence of any a thoriEed re#resentative of the $RIV"TB $"RTC' %' The tr stees, c stodians, safekee#ers, de#ositaries, agents, no(inees, ad(inistrators, lawyers, or any other #arty acting in si(ilar ca#acity in behalf of the $RIV"TB $"RTC are hereby infor(ed thro gh this :eneral "gree(ent to ins re that it is f lly i(#le(ented and this shall serve as absol te a thority fro( both #arties for f ll disclos re to the )IRST $"RTC of said assets and for the )IRST $"RTC to withdraw said acco nt and;or assets and any other assets which the )IRST $"RTC on its own or thro gh the hel# of the $RIV"TB $"RTC;their tr stees, etc', (ay discover' >' "ny asset which (ay be discovered in the f t re as belonging to the $RIV"TB $"RTC or is being held by another for the benefit of the $RIV"TB $"RTC and which is not incl ded in the list #er No' , for whatever reason shall a to(atically belong to the )IRST $"RTC, and the $RIV"TB $"RTC in accordance with No' 9 above, waives any right thereto' 3' This "gree(ent shall be binding on, and in re to the benefit of, the #arties and their res#ective legal re#resentatives, s ccessors and assigns and shall s #ersede any other #rior agree(ent' H' The $"RTIBS shall s b(it this and any other i(#le(enting "gree(ents to the $resident of the $hili##ines for a##roval' In the sa(e (anner, the $RIV"TB $"RTC shall #rovide the )IRST $"RTC assistance by way of testi(ony or de#osition on any infor(ation it (ay have that co ld shed light on the cases being # rs ed by the )IRST $"RTC against other #arties' The )IRST $"RTC shall desist fro( instit ting new s its already s b<ect of this "gree(ent against the $RIV"TB $"RTC and ca se the dis(issal of all other cases #ending in the Sandiganbayan and in other co rts' 4' In case of violation by the $RIV"TB $"RTC of any of the conditions herein contained, the $"RTIBS shall be restored a to(atically to the status 8uo ante the signing of this "gree(ent' )or # r#oses of this "gree(ent, the $RIV"TB $"RTC shall be re#resented by "tty' Si(eon 5' 5esina, Dr', as their only "ttorney8in8)act' IN AITNBSS AHBRBO), the #arties have signed this instr (ent this 1Hth day of Dece(ber, ,44=, in 5akati, 5etro 5anila' $RBSIDBNTI"7 !O55ISSION ON

:OOD :OVBRN5BNT 6y@ +Sgd'- 5":T"N::O7 !' :GNI:GNDO !hair(an BST"TB O) )BRDIN"ND B' 5"R!OS, I5B7D" R' 5"R!OS, 5"' I5B7D" 5"R!OS85"NOTO!, )BRDIN"ND R' 5"R!OS, DR', O IRBNB 5"R!OS8 "R"NBT" 6y@ +Sgd'-I5B7D" RO5G"7DBQ85"R!OS +Sgd'- 5"' I5B7D" 5"R!OS85"NOTO! )BRDIN"ND R' 5"R!OS, DR'+3+Sgd'- IRBNB 5"R!OS8"R"NBT" "ssisted by@ +Sgd'- "TTC' SI5BON 5' 5BSIN", DR' !o nsel O "ttorney8in8)act2 $etitioner also deno nces this s ##le(ent to the above "gree(ent@ +H.SG$$7B5BNT"7 ":RBB5BNT This "gree(ent entered into this 1Hth day of Dece(ber, ,44=, by and between 88 The Re# blic of the $hili##ines, thro gh the $residential !o((ission on :ood :overn(ent /$!::0, a govern(ental agency vested with a thority defined nder Bxec tive Orders Nos' ,, 1 and ,9, with offices at the $hilco(cen 6 ilding, $asig, 5etro 5anila, re#resented by its !hair(an 5agtanggol !' : nig ndo, hereinafter referred to as the )IRST $"RTC, 88 and 88

Bstate of )erdinand B' 5arcos, re#resented by I(elda Ro( aldeE 5arcos and )erdinand R' 5arcos, Dr', all of legal age, and with address at c;o No' ,%9 7o#eE RiEal St', 5andal yong, 5etro 5anila, and I(elda Ro( aldeE 5arcos, I(ee 5arcos 5anotoc, )erdinand B' 5arcos, Dr', and Irene 5arcos "raneta, hereinafter collectively referred to as the $RIV"TB $"RTC' A I T N B S S B T H@ The #arties in this case entered into a :eneral "gree(ent dated Dec' 1H, ,44=? The $RIV"TB $"RTC ex#ressly reserve their right to # rs e their interest and;or s e over local assets located in the $hili##ines against #arties other than the )IRST $"RTC' The #arties hereby agree that all ex#enses related to the recovery and;or withdrawal of all assets incl ding lawyersF fees, agentsF fees, no(ineesF service fees, bank charges, traveling ex#enses and all other ex#enses related thereto shall be for the acco nt of the $RIV"TB $"RTC' In consideration of the foregoing, the #arties hereby agree that the $RIV"TB $"RTC shall be entitled to the e* ivalent of 1%T of the a(o nt that (ay be event ally withdrawn fro( said S=%> (illion Swiss de#osits' IN AITNBSS AHBRBO), the #arties have signed this instr (ent this 1Hth day of Dece(ber, ,44=, in 5akati, 5etro 5anila' $RBSIDBNTI"7 !O55ISSION ON :OOD :OVBRN5BNT 6y@ +Sgd'- 5":T"N::O7 !' :GNI:GNDO !hair(an

+Sgd'- 5"' I5B7D" 5"R!OS85"NOTO! )BRDIN"ND R' 5"R!OS, DR'+4+Sgd'- IRBNB 5"R!OS8"R"NBT" "ssisted by@ +Sgd'- "TTC' SI5BON 5' 5BSIN", DR' !o nsel O "ttorney8in8)act2 "cting on a (otion of #etitioner, the !o rt iss ed a Te(#orary Restraining Order+,&- dated 5arch 1=, ,44H, en<oining res#ondents, their agents and;or re#resentatives fro( .entering into, or #erfecting and;or exec ting any agree(ent with the heirs of the late $resident )erdinand B' 5arcos relating to and concerning their ill8gotten wealth'2 I<<ue< The Oral "rg (ent, held on 5arch ,>, ,44H, foc sed on the following iss es@ ./a0 $roced ral@ /,0 Ahether or not the #etitioner has the #ersonality or legal standing to file the instant #etition? and /10 Ahether or not this !o rt is the #ro#er co rt before which this action (ay be filed' /b0 S bstantive@ /,0 Ahether or not this !o rt co ld re* ire the $!:: to disclose to the # blic the details of any agree(ent, #erfected or not, with the 5arcoses? and /10 Ahether or not there exist any legal restraints against a co(#ro(ise agree(ent between the 5arcoses and the $!:: relative to the 5arcosesF ill8gotten wealth'2 +,,"fter their oral #resentations, the #arties filed their res#ective (e(oranda' On " g st ,4, ,44H, :loria, !elnan, Scarlet and Teresa, all s rna(ed Do#son, filed before the !o rt a 5otion for Intervention, attaching thereto their $etition in Intervention' They aver that they are .a(ong the ,&,&&& clai(ants whose right to clai( fro( the 5arcos )a(ily and;or the 5arcos Bstate is recogniEed by the decision in )n re Estate o+ 1erdinand Marcos, 7uman .ights /itigation, Ma*imo 7ilao, et al., Class "lainti++s 9o. :;$<==;>, 2.#. Court o+ Appeals +or the :th

BST"TB O) )BRDIN"ND B' 5"R!OS, I5B7D" R' 5"R!OS, 5"' I5B7D" 5"R!OS85"NOTO!, )BRDIN"ND R' 5"R!OS, DR', O IRBNB 5"R!OS8"R"NBT" 6y@ +Sgd'- I5B7D" RO5G"7DBQ85"R!OS

Circuit 2# App. /e*is <?@:>, 'une <>, <::? and the Decision of the Swiss S #re(e !o rt of Dece(ber ,&, ,443 .2 "s s ch, they clai( to have #ersonal and direct interest in the s b<ect (atter of the instant case, since a distrib tion or dis#osition of the 5arcos #ro#erties (ay adversely affect their legiti(ate clai(s' In a (in te Resol tion iss ed on " g st 19, ,44H, the !o rt granted their (otion to intervene and re* ired the res#ondents to co((ent thereon' The Se#te(ber 1%, ,44H !o((ent+,1- of the solicitor general on said (otion (erely reiterated his aforecited arg (ents against the (ain #etition'+,=-

Indeed, the arg (ents cited by #etitioner constit te the controlling decisional r le as regards his legal standing to instit te the instant #etition' "ccess to # blic doc (ents and records is a # blic right, and the real #arties in interest are the #eo#le the(selves'+,>In (aada v. (uvera,+,3- the !o rt asserted that when the iss e concerns a # blic right and the ob<ect of mandamus is to obtain the enforce(ent of a # blic d ty, the #eo#le are regarded as the real #arties in interest? and beca se it is s fficient that #etitioner is a citiEen and as s ch is interested in the exec tion of the laws, he need not show that he has any legal or s#ecial interest in the res lt of the action' +,H- In the aforesaid case, the #etitioners so ght to enforce their right to be infor(ed on (atters of # blic concern, a right then recogniEed in Section >, "rticle IV of the ,43= !onstit tion,+,4- in connection with the r le that laws in order to be valid and enforceable ( st be # blished in the Official :aEette or otherwise effectively #ro( lgated' In r ling for the #etitionersF legal standing, the !o rt declared that the right they so ght to be enforced .is a # blic right recogniEed by no less than the f nda(ental law of the land'2 /egaspi v. Civil #ervice Commission, +1&- while reiterating (aada, f rther declared that .when a mandamus #roceeding involves the assertion of a # blic right, the re* ire(ent of #ersonal interest is satisfied by the (ere fact that #etitioner is a citiEen and, therefore, #art of the general U# blicF which #ossesses the right'2 +1,) rther, in Albano v. .eyes,+11- we said that while ex#endit re of # blic f nds (ay not have been involved nder the * estioned contract for the develo#(ent, the (anage(ent and the o#eration of the 5anila International !ontainer Ter(inal, .# blic interest +was- definitely involved considering the i(#ortant role +of the s b<ect contract- x x x in the econo(ic develo#(ent of the co ntry and the (agnit de of the financial consideration involved'2 Ae concl ded that, as a conse* ence, the disclos re #rovision in the !onstit tion wo ld constit te s fficient a thority for #holding the #etitionerFs standing' Si(ilarly, the instant #etition is anchored on the right of the #eo#le to infor(ation and access to official records, doc (ents and #a#ers 88 a right g aranteed nder Section 3, "rticle III of the ,4H3 !onstit tion' $etitioner, a for(er solicitor general, is a )ili#ino citiEen' 6eca se of the satisfaction of the two basic re* isites laid down by decisional law to s stain #etitionerFs legal standing, i.e. /,0 the enforce(ent of a # blic right /10 es#o sed by a )ili#ino citiEen, we r le that the #etition at bar sho ld be allowed' In any event, the * estion on the standing of $etitioner !haveE is rendered (oot by the intervention of the Do#sons, who are a(ong the legiti(ate clai(ants to the 5arcos wealth' The standing of the Do#sons is not serio sly contested by the solicitor general' Indeed, said #etitioners8intervenors have a legal interest in the s b<ect (atter of the instant case, since a distrib tion or dis#osition of the 5arcosesF ill8gotten #ro#erties (ay adversely affect the satisfaction of their clai(s'

#'e Cou3&B< RuC;nD The #etition is i(b ed with (erit'

F;3<& P3o=e%u3aC I<<ue+ Petitioners Standing $etitioner, on the one hand, ex#lains that as a tax#ayer and citiEen, he has the legal #ersonality to file the instant #etition' He s b(its that since ill8gotten wealth .belongs to the )ili#ino #eo#le and +is-, in tr th and in fact, #art of the # blic treas ry,2 any co(#ro(ise in relation to it wo ld constit te a di(in tion of the # blic f nds, which can be en<oined by a tax#ayer whose interest is for a f ll, if not s bstantial, recovery of s ch assets' 6esides, #etitioner e(#hasiEes, the (atter of recovering the ill8gotten wealth of the 5arcoses is an iss e .of transcendental i(#ortance to the # blic'2 He asserts that ordinary tax#ayers have a right to initiate and #rosec te actions * estioning the validity of acts or orders of govern(ent agencies or instr (entalities, if the iss es raised are .of #ara(o nt # blic interest?2 and if they .i((eas rably affect the social, econo(ic, and (oral well8being of the #eo#le'2 5oreover, the (ere fact that he is a citiEen satisfies the re* ire(ent of #ersonal interest, when the #roceeding involves the assertion of a # blic right, +,9- s ch as in this case' He invokes several decisions+,%- of this !o rt which have set aside the #roced ral (atter of locus standi, when the s b<ect of the case involved # blic interest' On the other hand, the solicitor general, on behalf of res#ondents, contends that #etitioner has no standing to instit te the #resent action, beca se no ex#endit re of # blic f nds is involved and said #etitioner has no act al interest in the alleged agree(ent' Res#ondents f rther insist that the instant #etition is #re(at re, since there is no showing that #etitioner has re* ested $!:: to disclose any s ch negotiations and agree(ents? or that, if he has, the !o((ission has ref sed to do so'

Se=on% P3o=e%u3aC I<<ue+The Courts Jurisdiction $etitioner asserts that beca se this #etition is an original action for mandamus and one that is not intended to delay any #roceeding in the Sandiganbayan, its having been filed before this !o rt was #ro#er' He invokes Section %, "rticle VIII of the !onstit tion, which confers #on the S #re(e !o rt original < risdiction over #etitions for #rohibition and mandamus' The solicitor general, on the other hand, arg es that the #etition has been erroneo sly bro ght before this !o rt, since there is neither a < sticiable controversy nor a violation of #etitionerFs rights by the $!::' He alleges that the assailed agree(ents are already the very lis mota in Sandiganbayan !ivil !ase No' &,9,, which has yet to dis#ose of the iss e? th s, this #etition is #re(at re' ) rther(ore, res#ondents the(selves have o##osed the 5arcos heirsF (otion, filed in the graft co rt, for the a##roval of the s b<ect "gree(ents' S ch o##osition belies #etitionerFs clai( that the govern(ent, thro gh res#ondents, has concl ded a settle(ent with the 5arcoses as regards their alleged ill8gotten assets' In (aada and /egaspi, we #held therein #etitionersF resort to a mandamus #roceeding, seeking to enforce a # blic right as well as to co(#el #erfor(ance of a # blic d ty (andated by no less than the f nda(ental law' +1=) rther, Section %, "rticle VIII of the !onstit tion, ex#ressly confers #on the S #re(e !o rt original < risdiction over #etitions for certiorari, prohibition, mandamus, 8uo warranto and habeas corpus. Res#ondents arg e that #etitioner sho ld have #ro#erly so ght relief before the Sandiganbayan, #artic larly in !ivil !ase No' &,9,, in which the enforce(ent of the co(#ro(ise "gree(ents is #ending resol tion' There (ay see( to be so(e (erit in s ch arg (ent, if #etitioner is (erely seeking to en<oin the enforce(ent of the co(#ro(ise and;or to co(#el the $!:: to disclose to the # blic the ter(s contained in said "gree(ents' However, #etitioner is here seeking the # blic disclos re of .all negotiations and agree(ent, be they ongoing or #erfected, and doc (ents related to or relating to s ch negotiations and agree(ent between the $!:: and the 5arcos heirs'2 In other words, this #etition is not confined to the "gree(ents that have already been drawn, b t likewise to any other ongoing or f t re ndertaking towards any settle(ent on the alleged 5arcos loot' Inel ctably, the core iss e boils down to the #recise inter#retation, in ter(s of sco#e, of the twin constit tional #rovisions on .# blic transactions'2 This broad and #ros#ective relief so ght by the instant #etition brings it o t of the real( of !ivil !ase No' &,9,'

In seeking the # blic disclos re of negotiations and agree(ents #ertaining to a co(#ro(ise settle(ent with the 5arcoses as regards their alleged ill8gotten wealth, #etitioner invokes the following #rovisions of the !onstit tion@ .Sec' 3 +"rticle III-' The right of the #eo#le to infor(ation on (atters of # blic concern shall be recogniEed' "ccess to official records, and to doc (ents, and #a#ers #ertaining to official acts, transactions, or decisions, as well as to govern(ent research data sed as basis for #olicy develo#(ent, shall be afforded the citiEen, s b<ect to s ch li(itations as (ay be #rovided by law'2 .Sec' 1H +"rticle II-' S b<ect to reasonable conditions #rescribed by law, the State ado#ts and i(#le(ents a #olicy of f ll # blic disclos re of all its transactions involving # blic interest'2 Res#ondentsF o##osite view is that the above constit tional #rovisions refer to co(#leted and o#erative official acts, not to those still being considered' "s regards the assailed "gree(ents entered into by the $!:: with the 5arcoses, there is yet no right of action that has accr ed, beca se said "gree(ents have not been a##roved by the $resident, and the 5arcos heirs have failed to f lfill their ex#ress ndertaking therein' Th s, the "gree(ents have not beco(e effective' Res#ondents add that they are not aware of any ongoing negotiation for another co(#ro(ise with the 5arcoses regarding their alleged ill8gotten assets' The .infor(ation2 and the .transactions2 referred to in the s b<ect #rovisions of the !onstit tion have as yet no defined sco#e and extent' There are no s#ecific laws #rescribing the exact li(itations within which the right (ay be exercised or the correlative state d ty (ay be obliged' However, the following are so(e of the recogniEed restrictions@ /,0 national sec rity (atters and intelligence infor(ation, /10 trade secrets and banking transactions, /=0 cri(inal (atters, and /90 other confidential infor(ation'

#imitations to the $ight: %&' "ational Securit! (atters "t the very least, this < risdiction recogniEes the co((on law holding that there is a govern(ental #rivilege against # blic disclos re with res#ect to state secrets regarding (ilitary, di#lo(atic and other national sec rity (atters' +19- 6 t where there is no need to #rotect s ch state secrets, the #rivilege (ay not be invoked to withhold doc (ents and other infor(ation, +1%- #rovided that they are exa(ined .in strict confidence2 and given .scr # lo s #rotection'2 7ikewise, infor(ation on inter8govern(ent exchanges #rior to the concl sion of treaties and exec tive agree(ents (ay be s b<ect to reasonable safeg ards for the sake of national interest'+1>-

F;3<& Su2<&an&;7e I<<ue+ Public Disclosure of Terms of n! greement, Perfected or "ot

%)' Trade Secrets and *an+ing Transactions The drafters of the !onstit tion also ne* ivocally affir(ed that, aside fro( national sec rity (atters and intelligence infor(ation, trade or ind strial secrets /# rs ant to the Intellect al $ro#erty !ode +13- and other related laws0 as well as banking transactions /# rs ant to the Secrecy of 6ank De#osits "ct +1H-0 are also exe(#ted fro( co(# lsory disclos re'+14-

.In deter(ining whether or not a #artic lar infor(ation is of # blic concern there is no rigid test which can be a##lied' U$ blic concernF like U# blic interestF is a ter( that el des exact definition' 6oth ter(s e(brace a broad s#ectr ( of s b<ects which the # blic (ay want to know, either beca se these directly affect their lives, or si(#ly beca se s ch (atters nat rally aro se the interest of an ordinary citiEen' In the final analysis, it is for the co rts to deter(ine on a case by case basis whether the (atter at iss e is of interest or i(#ortance, as it relates to or affects the # blic'2 !onsidered a # blic concern in the above8(entioned case was the .legiti(ate concern of citiEens to ens re that govern(ent #ositions re* iring civil service eligibility are occ #ied only by #ersons who are eligibles'2 So was the need to give the general # blic ade* ate notification of vario s laws that reg late and affect the actions and cond ct of citiEens, as held in (aada' 7ikewise did the .# blic nat re of the loanable f nds of the :SIS and the # blic office held by the alleged borrowers /(e(bers of the def nct 6atasang $a(bansa02 * alify the infor(ation so ght in Valmonte as (atters of # blic interest and concern' In A8uino$#armiento v. Morato,+=>-the !o rt also held that official acts of # blic officers done in # rs it of their official f nctions are # blic in character? hence, the records #ertaining to s ch official acts and decisions are within the a(bit of the constit tional right of access to public records. Gnder Re# blic "ct No' >3,=, # blic officials and e(#loyees are (andated to .#rovide infor(ation on their #olicies and #roced res in clear and nderstandable lang age, +and- ens re o#enness of infor(ation, # blic cons ltations and hearings whenever a##ro#riate x x x,2 exce#t when .otherwise #rovided by law or when re* ired by the # blic interest'2 In #artic lar, the law (andates free # blic access, at reasonable ho rs, to the ann al #erfor(ance re#orts of offices and agencies of govern(ent and govern(ent8owned or controlled cor#orations? and the state(ents of assets, liabilities and financial disclos res of all # blic officials and e(#loyees'+=3In general, writings co(ing into the hands of # blic officers in connection with their official f nctions ( st be accessible to the # blic, consistent with the #olicy of trans#arency of govern(ental affairs' This #rinci#le is ai(ed at affording the #eo#le an o##ort nity to deter(ine whether those to who( they have entr sted the affairs of the govern(ent are honestly, faithf lly and co(#etently #erfor(ing their f nctions as # blic servants'+=H-Gndeniably, the essence of de(ocracy lies in the free flow of tho ght?+=4- b t tho ghts and ideas ( st be well8infor(ed so that the # blic wo ld gain a better #ers#ective of vital iss es confronting the( and, th s, be able to criticiEe as well as #artici#ate in the affairs of the govern(ent in a res#onsible, reasonable and effective (anner' !ertainly, it is by ens ring an nfettered and ninhibited exchange of ideas a(ong a well8infor(ed # blic that a govern(ent re(ains res#onsive to the changes desired by the #eo#le'+9&-

%,' Criminal (atters "lso excl ded are classified law enforce(ent (atters, s ch as those relating to the a##rehension, the #rosec tion and the detention of cri(inals, +=&- which co rts (ay not in* ire into prior to s ch arrest, detention and #rosec tion' Bfforts at effective law enforce(ent wo ld be serio sly <eo#ardiEed by free # blic access to, for exa(#le, #olice infor(ation regarding resc e o#erations, the whereabo ts of f gitives, or leads on covert cri(inal activities'

%-' .ther Confidential /nformation The Bthical Standards "ct+=,- f rther #rohibits # blic officials and e(#loyees fro( sing or div lging .confidential or classified infor(ation officially known to the( by reason of their office and not (ade available to the # blic'2+=1Other acknowledged li(itations to infor(ation access incl de di#lo(atic corres#ondence, closed door !abinet (eetings and exec tive sessions of either ho se of !ongress, as well as the internal deliberations of the S #re(e !o rt' +==-

Scope: (atters of Public Concern and Transactions /nvolving Public /nterest In Valmonte v. Belmonte 'r.,+=9- the !o rt e(#hasiEed that the infor(ation so ght ( st be .(atters of # blic concern,2 access to which (ay be li(ited by law' Si(ilarly, the state #olicy of f ll # blic disclos re extends only to .transactions involving # blic interest2 and (ay also be .s b<ect to reasonable conditions #rescribed by law'2 "s to the (eanings of the ter(s .# blic interest2 and .# blic concern,2 the !o rt, in 7egas#i v' !ivil Service !o((ission, +=%el cidated@

The "ature of the (arcoses lleged /ll-0otten 1ealth

Ae now co(e to the i((ediate (atter nder consideration' G#on the de#art re fro( the co ntry of the 5arcos fa(ily and their cronies in )ebr ary ,4H>, the new govern(ent headed by $resident !oraEon !' "* ino was s#ecifically (andated to .+r-ecover ill8gotten #ro#erties a(assed by the leaders and s ##orters of the #revio s regi(e and +to- #rotect the interest of the #eo#le thro gh orders of se* estration or freeEing of assets or acco nts'2 +9,- Th s, $resident "* inoFs very first exec tive orders /which #artook of the nat re of legislative enact(ents0 dealt with the recovery of these alleged ill8gotten #ro#erties' Bxec tive Order No' ,, #ro( lgated on )ebr ary 1H, ,4H>, only two /10 days after the 5arcoses fled the co ntry, created the $!:: which was #ri(arily tasked to assist the $resident in the recovery of vast govern(ent reso rces allegedly a(assed by for(er $resident 5arcos, his i((ediate fa(ily, relatives and close associates both here and abroad' Gnder Bxec tive Order No' 1, iss ed twelve /,10 days later, all #ersons and entities who had knowledge or #ossession of ill8gotten assets and #ro#erties were warned and, nder #ain of #enalties #rescribed by law, #rohibited fro( concealing, transferring or dissi#ating the( or fro( otherwise fr strating or obstr cting the recovery efforts of the govern(ent' On 5ay 3, ,4H>, another directive /BO No' ,90 was iss ed giving additional #owers to the $!:: which, taking into acco nt the overriding considerations o+ national interest and national survival, re* ired it to achieve ex#editio sly and effectively its vital task of recovering ill8gotten wealth' Aith s ch #rono nce(ents of o r govern(ent, whose a thority e(anates fro( the #eo#le, there is no do bt that the recovery of the 5arcosesF alleged ill8gotten wealth is a (atter of # blic concern and i(b ed with # blic interest' +91- Ae (ay also add that .ill8gotten wealth,2 by its very nat re, ass (es a # blic character' 6ased on the afore(entioned Bxec tive Orders, .ill8gotten wealth2 refers to assets and #ro#erties # r#ortedly ac* ired, directly or indirectly, by for(er $resident 5arcos, his i((ediate fa(ily, relatives and close associates thro gh or as a res lt of their i(#ro#er or illegal se of govern(ent f nds or #ro#erties? or their having taken nd e advantage of their # blic office? or their se of #owers, infl ences or relationshi#s, .res lting in their n< st enrich(ent and ca sing grave da(age and #re< dice to the )ili#ino #eo#le and the Re# blic of the $hili##ines'2 !learly, the assets and #ro#erties referred to s ##osedly originated fro( the govern(ent itself' To all intents and # r#oses, therefore, they belong to the #eo#le' "s s ch, #on reconveyance they will be ret rned to the # blic treas ry, s b<ect only to the satisfaction of #ositive clai(s of certain #ersons as (ay be ad< dged by co(#etent co rts' "nother declared overriding consideration for the ex#editio s recovery of ill8gotten wealth is that it (ay be sed for national econo(ic recovery' Ae believe the foregoing dis* isition settles the * estion of whether #etitioner has a right to res#ondentsF disclos re of any agree(ent that (ay be arrived at concerning the 5arcosesF # r#orted ill8gotten wealth'

ccess to /nformation on "egotiating Terms 6 t does the constit tional #rovision likewise g arantee access to infor(ation regarding ongoing negotiations or #ro#osals #rior to the final agree(entL This sa(e clarification was so ght and clearly addressed by the constit tional co((issioners d ring their deliberations, which we * ote here nder@+9=.5R' SG"RBQ' "nd when we say UtransactionsF which sho ld be disting ished fro( contracts, agree(ents, or treaties or whatever, does the :entle(an refer to the ste#s leading to the cons ((ation of the contract, or does he refer to the contract itselfL .5R' O$7B' The UtransactionsF sed here, I s ##ose, is generic and, therefore, it can cover both ste#s leading to a contract, and already a cons ((ated contract, 5r' $residing Officer' .5R' SG"RBQ' This conte(#lates incl sion of negotiations leading to the cons ((ation of the transactionL .5R' O$7B' Ces, s b<ect to reasonable safeg ards on the national interest'2 Con<;%e3;nD &'e ;n&en& o? &'e ?3a8e3< o? &'e Con<&;&u&;on, Ee 2eC;e7e &'a& ;& ;< ;n=u82en& u>on &'e PCGG an% ;&< o??;=e3<, a< EeCC a< o&'e3 Do7e3n8en& 3e>3e<en&a&;7e<, &o %;<=Co<e <u??;=;en& >u2C;= ;n?o38a&;on on an. >3o>o<e% <e&&Ce8en& &'e. 'a7e %e=;%e% &o &ake u> E;&' &'e o<&en<;2Ce oEne3< an% 'oC%e3< o? ;CC*Do&&en EeaC&'' S ch infor(ation, tho gh, ( st #ertain to definite #ro#ositions of the govern(ent, not necessarily to intra8agency or inter8agency reco((endations or co(( nications+99- d ring the stage when co((on assertions are still in the #rocess of being for( lated or are in the .ex#loratory2 stage' There is a need, of co rse, to observe the sa(e restrictions on disclos re of infor(ation in general, as disc ssed earlier 88 s ch as on (atters involving national sec rity, di#lo(atic or foreign relations, intelligence and other classified infor(ation' Se=on% Compromise Su2<&an&;7e I<<ue+ #egal $estraints on a (arcos-PC00

$etitioner lastly contends that any co(#ro(ise agree(ent between the govern(ent and the 5arcoses will be a virt al condonation of all the alleged wrongs done by the(, as well as an nwarranted #er(ission to co((it graft and corr #tion' Res#ondents, for their #art, assert that there is no legal restraint on entering into a co(#ro(ise with the 5arcos heirs, #rovided the agree(ent does not violate any law' Prohibited Compromises

In general, the law enco rages co(#ro(ises in civil cases, exce#t with regard to the following (atters@ /,0 the civil stat s of #ersons, /10 the validity of a (arriage or a legal se#aration, /=0 any gro nd for legal se#aration, /90 f t re s ##ort, /%0 the < risdiction of co rts, and />0 f t re legiti(e' +9%- "nd like any other contract, the ter(s and conditions of a co(#ro(ise ( st not be contrary to law, (orals, good c sto(s, # blic #olicy or # blic order' +9>- " co(#ro(ise is binding and has the force of law between the #arties, +93- nless the consent of a #arty is vitiated 88 s ch as by (istake, fra d, violence, inti(idation or nd e infl ence 88 or when there is forgery, or if the ter(s of the settle(ent are so #al#ably nconscionable' In the latter instances, the agree(ent (ay be invalidated by the co rts'+9H-

witness who re#eats s ch testi(ony before the Sandiganbayan when re* ired to do so by the latter or by the !o((ission'2 The above #rovision s#ecifies that the $!:: (ay exercise s ch a thority nder these conditions@ /,0 the #erson to who( cri(inal i(( nity is granted #rovides infor(ation or testifies in an investigation cond cted by the !o((ission? /10 the infor(ation or testi(ony #ertains to the nlawf l (anner in which the res#ondent, defendant or acc sed ac* ired or acc ( lated ill8gotten #ro#erty? and /=0 s ch infor(ation or testi(ony is necessary to ascertain or #rove g ilt or civil liability of s ch individ al' )ro( the wording of the law, it can be easily ded ced that the person referred to is a witness in the #roceeding, not the #rinci#al res#ondent, defendant or acc sed' Th s, in the case of Dose C' !a(#os, the grant of both civil and cri(inal i(( nity to hi( and his fa(ily was .+i-n consideration of the f ll coo#eration of 5r' Dose C' !a(#os +with- this !o((ission, his vol ntary s rrender of the #ro#erties and assets +88- disclosed and declared by hi( to belong to de#osed $resident )erdinand B' 5arcos +88- to the :overn(ent of the Re# blic of the $hili##ines+?- his f ll, co(#lete and tr thf l disclos res+?- and his co((it(ent to #ay a s ( of (oney as deter(ined by the $hili##ine :overn(ent'2 +%>- 5oreover, the grant of cri(inal i(( nity to the !a(#oses and the 6enedictos was li(ited to acts and o(issions #rior to )ebr ary 1%, ,44>' "t the ti(e s ch i(( nity was granted, no cri(inal cases have yet been filed against the( before the co(#etent co rts' 3alidit! of the PC00-(arcos Compromise greements :oing now to the s b<ect :eneral and S ##le(ental "gree(ents between the $!:: and the 5arcos heirs, a c rsory #er sal thereof reveals serio s legal flaws' 1irst, the "gree(ents do not confor( to the above re* ire(ents of BO Nos' ,9 and ,98"' !e 2eC;e7e &'a& =3;8;naC ;88un;&. un%e3 Se=&;on 5 =anno& 2e D3an&e% &o &'e ,a3=o<e<, E'o a3e &'e >3;n=;>aC %e?en%an&< ;n &'e <>a&e o? ;CC* Do&&en EeaC&' =a<e< noE >en%;nD 2e?o3e &'e San%;Dan2a.an ' "s stated earlier, the #rovision is a##licable (ainly to witnesses who #rovide infor(ation or testify against a res#ondent, defendant or acc sed in an ill8gotten wealth case' Ahile the :eneral "gree(ent states that the 5arcoses .shall #rovide the +govern(ent- assistance by way of testi(ony or de#osition on any infor(ation +they(ay have that co ld shed light on the cases being # rs ed by the +govern(entagainst other #arties,2+%3- the cla se does not f lly co(#ly with the law' Its incl sion in the "gree(ent (ay have been only an aftertho ght, conceived in pro +orma co(#liance with Section % of BO No' ,9, as a(ended' There is no indication whatsoever that any of the 5arcos heirs has indeed #rovided vital infor(ation against any res#ondent or defendant as to the (anner in which the latter (ay have nlawf lly ac* ired # blic #ro#erty' #econd, nder Ite( No' 1 of the :eneral "gree(ent, the $!:: co((its to exe(#t fro( all for(s of taxes the #ro#erties to be retained by the 5arcos heirs' This is a clear violation of the !onstit tion' The #ower to tax and to grant tax

2ffect of Compromise on Civil ctions One of the conse* ences of a co(#ro(ise, and s ally its #ri(ary ob<ect, is to avoid or to end a litigation'+94- In fact, the law rges co rts to #ers ade the #arties in a civil case to agree to a fair settle(ent'+%&- "s an incentive, a co rt (ay (itigate da(ages to be #aid by a losing #arty who shows a sincere desire to co(#ro(ise'+%,In .epublic A Campos 'r. v. #andiganbayan ,+%1- which affir(ed the grant by the $!:: of civil and cri(inal i(( nity to Dose C' !a(#os and fa(ily, the !o rt held that in the absence of an ex#ress #rohibition, the r le on co(#ro(ises in civil actions nder the !ivil !ode is a##licable to $!:: cases' S ch #rinci#le is # rs ant to the ob<ectives of BO No' ,9, #artic larly the < st and ex#editio s recovery of ill8 gotten wealth, so that it (ay be sed to hasten econo(ic recovery' The sa(e #rinci#le was #held in Benedicto v. Board o+ Administrators o+ (elevision #tations ."9, BBC and )BC+%=- and .epublic v. Benedicto,+%9- which r led in favor of the validity of the $!:: co(#ro(ise agree(ent with Roberto S' 6enedicto' /mmunit! from Criminal Prosecution (oEe7e3, an. =o8>3o8;<e 3eCa&;nD &o &'e =;7;C C;a2;C;&. a3;<;nD ?3o8 an o??en<e does not automaticall! terminate &'e =3;8;naC >3o=ee%;nD aDa;n<& o3 eF&;nDu;<' &'e =3;8;naC C;a2;C;&. o? &'e 8aCe?a=&o3 '+%%- Ahile a co(#ro(ise in civil s its is ex#ressly a thoriEed by law, there is no si(ilar general sanction as regards cri(inal liability' The a thority ( st be s#ecifically conferred' In the #resent case, the #ower to grant cri(inal i(( nity was conferred on $!:: by Section % of BO No' ,9, as a(ended by BO No' ,98", which #rovides@ .SB!TION %' The $residential !o((ission on :ood :overn(ent is a thoriEed to grant i(( nity fro( cri(inal #rosec tion to any #erson who #rovides infor(ation or testifies in any investigation cond cted by s ch !o((ission to establish the nlawf l (anner in which any res#ondent, defendant or acc sed has ac* ired or acc ( lated the #ro#erty or #ro#erties in * estion in any case where s ch infor(ation or testi(ony is necessary to ascertain or #rove the latterFs g ilt or his civil liability' The i(( nity thereby granted shall be contin ed to #rotect the

exe(#tions is vested in the !ongress and, to a certain extent, in the local legislative bodies'+%H- Section 1H /90, "rticle VI of the !onstit tion, s#ecifically #rovides@ .No law granting any tax exe(#tion shall be #assed witho t the conc rrence of a (a<ority of all the 5e(bers of the !ongress'2 #'e PCGG 'a< a2<oCu&eC. no >oEe3 &o D3an& &aF eFe8>&;on<, e7en un%e3 &'e =o7e3 o? ;&< au&'o3;&. &o =o8>3o8;<e ;CC*Do&&en EeaC&' =a<e<' Bven granting that !ongress enacts a law exe(#ting the 5arcoses fro( #aying taxes on their #ro#erties, s ch law will definitely not #ass the test of the e* al #rotection cla se nder the 6ill of Rights' "ny s#ecial grant of tax exe(#tion in favor only of the 5arcos heirs will constit te class legislation' It will also violate the constit tional r le that .taxation shall be nifor( and e* itable'2+%4Neither can the sti# lation be constr ed to fall within the #ower of the co((issioner of internal reven e to co(#ro(ise taxes' S ch a thority (ay be exercised only when /,0 there is reasonable doubt as to the validity o+ the claim against the tax#ayer, and /10 the tax#ayerFs financial #osition de(onstrates a clear inability to pay'+>&- Definitely, neither re* isite is #resent in the case of the 5arcoses, beca se nder the "gree(ent they are effectively conceding the validity of the clai(s against their #ro#erties, #art of which they will be allowed to retain' Nor can the $!:: grant of tax exe(#tion fall within the #ower of the co((issioner to abate or cancel a tax liability' This #ower can be exercised only when /,0 the tax a##ears to be n< stly or excessively assessed, or /10 the ad(inistration and collection costs involved do not < stify the collection of the tax d e'+>,- In this instance, the cancellation of tax liability is done even before the deter(ination of the a(o nt d e' In any event, cri(inal violations of the Tax !ode, for which legal actions have been filed in co rt or in which fra d is involved, cannot be co(#ro(ised'+>1(hird, the govern(ent binds itself to ca se the dis(issal of all cases against the 5arcos heirs, #ending before the Sandiganbayan and other co rts' +>=- This is a direct encroach(ent on < dicial #owers, #artic larly in regard to cri(inal < risdiction' Aell8settled is the doctrine that once a case has been filed before a co rt of co(#etent < risdiction, the (atter of its dis(issal or # rs ance lies within the f ll discretion and control of the < dge' In a cri(inal case, the (anner in which the #rosec tion is handled, incl ding the (atter of who( to #resent as witnesses, (ay lie within the so nd discretion of the govern(ent #rosec tor? +>9- b t the co rt decides, based on the evidence #roffered, in what (anner it will dis#ose of the case' D risdiction, once ac* ired by the trial co rt, is not lost des#ite a resol tion, even by the < stice secretary, to withdraw the infor(ation or to dis(iss the co(#laint'+>%- The #rosec tionFs (otion to withdraw or to dis(iss is not the least binding #on the co rt' On the contrary, decisional r les re* ire the trial co rt to (ake its own eval ation of the (erits of the case, beca se granting s ch (otion is e* ivalent to effecting a dis#osition of the case itself'+>>#'u<, &'e PCGG, a< &'e Do7e3n8en& >3o<e=u&o3 o? ;CC*Do&&en EeaC&' =a<e<, =anno& Dua3an&ee &'e %;<8;<<aC o? aCC <u=' =3;8;naC =a<e< aDa;n<& &'e ,a3=o<e<

>en%;nD ;n &'e =ou3&<, ?o3 <a;% %;<8;<<aC ;< no& E;&';n ;&< <oCe >oEe3 an% %;<=3e&;on. 1ourth, the govern(ent also waives all clai(s and co nterclai(s, .whether #ast, #resent, or f t re, (at red or inchoate,2 against the 5arcoses' +>3- "gain, this all8enco(#assing sti# lation is contrary to law' Gnder the !ivil !ode, an action for f t re fra d (ay not be waived'+>H- The sti# lation in the "gree(ent does not s#ecify the exact sco#e of f t re clai(s against the 5arcoses that the govern(ent thereby relin* ishes' S ch vag e and broad state(ent (ay well be inter#reted to incl de all f t re illegal acts of any of the 5arcos heirs, #ractically giving the( a license to #er#etrate fra d against the govern(ent witho t any liability at all' This is a #al#able violation of the d e #rocess and e* al #rotection g arantees of the !onstit tion' It effectively ensconces the 5arcoses beyond the reach of the law' It also sets a dangero s #recedent for # blic acco ntability' I& ;< a 7;3&uaC Ea33an& ?o3 >u2C;= o??;=;aC< &o a8a<< >u2C;= ?un%< ;CCeDaCC., <;n=e &'e3e ;< an o>en o>&;on &o =o8>3o8;<e &'e;3 C;a2;C;&. ;n eF='anDe ?o3 onC. a >o3&;on o? &'e;3 ;CC*Do&&en EeaC&'. 1i+th, the "gree(ents do not #rovide for a definite or deter(inable #eriod within which the #arties shall f lfill their res#ective #restations' It (ay take a lifeti(e before the 5arcoses s b(it an inventory of their total assets' #i*th, the "gree(ents do not state with s#ecificity the standards for deter(ining which assets shall be forfeited by the govern(ent and which shall be retained by the 5arcoses' Ahile the S ##le(ental "gree(ent #rovides that the 5arcoses shall be entitled to 1% #er cent of the S=%> (illion Swiss de#osits /less govern(ent recovery ex#enses0, s ch sharing arrange(ent #ertains only to the said de#osits' No si(ilar s#litting sche(e is defined with res#ect to the other #ro#erties' Neither is there, anywhere in the "gree(ents, a state(ent of the basis for the 1%83% #ercent sharing ratio' $ blic officers entering into an arrange(ent a##earing to be (anifestly and grossly disadvantageo s to the govern(ent, in violation of the "nti8:raft and !orr #t $ractices "ct, +>4- invite their indict(ent for corr #tion nder the said law' 1inally, the absence of then $resident Ra(osF a##roval of the #rinci#al "gree(ent, an ex#ress condition therein, renders the co(#ro(ise inco(#lete and nenforceable' Nevertheless, as detailed above, even if s ch a##roval were obtained, the "gree(ents wo ld still not be valid' F3o8 &'e ?o3eDo;nD %;<Gu;<;&;on, ;& ;< =3.<&aC =Cea3 &o &'e Cou3& &'a& &'e Gene3aC an% Su>>Ce8en&aC AD3ee8en&<, 2o&' %a&e% e=e82e3 2/, 1991, E';=' &'e PCGG en&e3e% ;n&o E;&' &'e ,a3=o< 'e;3<, a3e 7;oCa&;7e o? &'e Con<&;&u&;on an% &'e CaE< a?o3e8en&;one%. !(EREFORE, the #etition is %.A9(ED. The :eneral and S ##le(ental "gree(ents dated Dece(ber 1H, ,44=, which $!:: and the 5arcos heirs entered into are hereby declared 92// A9D V,)D for being contrary to law and the !onstit tion' Res#ondent $!::, its officers and all govern(ent f nctionaries and officials who are or (ay be

directly or indirectly involved in the recovery of the alleged ill8gotten wealth of the 5arcoses and their associates are D).EC(ED to disclose to the # blic the ter(s of any #ro#osed co(#ro(ise settle(ent, as well as the final agree(ent, relating to s ch alleged ill8gotten wealth, in accordance with the disc ssions e(bodied in this Decision' No #rono nce(ent as to costs' SO OR ERE . Re# blic S"PRE,E 5anila BN 6"N! G.R. No. 111250 JuC. 9, 2002 of the $hili##ines CO"R#

foreshore and offshore of the 5anila 6ayJ 1 nder the 5anila8!avite !oastal Road and Recla(ation $ro<ect /5!!RR$0' On Dece(ber 14, ,4H,, then $resident 5arcos iss ed a (e(orand ( directing $B" to a(end its contract with !D!$, so that J+"-ll f t re works in 5!!RR$ x x x shall be f nded and owned by $B"'J "ccordingly, $B" and !D!$ exec ted a 5e(orand ( of "gree(ent dated Dece(ber 14, ,4H,, which stated@ J/i0 !D!$ shall ndertake all recla(ation, constr ction, and s ch other works in the 5!!RR$ as (ay be agreed #on by the #arties, to be #aid according to #rogress of works on a nit #rice;l (# s ( basis for ite(s of work to be agreed #on, s b<ect to #rice escalation, retention and other ter(s and conditions #rovided for in $residential Decree No' ,%49' "ll the financing re* ired for s ch works shall be #rovided by $B"' xxx /iii0 x x x !D!$ shall give # all its develo#(ent rights and hereby agrees to cede and transfer in favor of $B", all of the rights, title, interest and #artici#ation of !D!$ in and to all the areas of land reclai(ed by !D!$ in the 5!!RR$ as of Dece(ber =&, ,4H, which have not yet been sold, transferred or otherwise dis#osed of by !D!$ as of said date, which areas consist of a##roxi(ately Ninety8Nine Tho sand )o r H ndred Seventy Three /44,93=0 s* are (eters in the )inancial !enter "rea covered by land #ledge No' % and a##roxi(ately Three 5illion Three H ndred Bighty Two Tho sand Bight H ndred Bighty Bight /=,=H1,HHH0 s* are (eters of reclai(ed areas at varying elevations above 5ean 7ow Aater 7evel located o tside the )inancial !enter "rea and the )irst Neighborhood Gnit'J= On Dan ary ,4, ,4HH, then $resident !oraEon !' "* ino iss ed S#ecial $atent No' =%,3, granting and transferring to $B" Jthe #arcels of land so reclai(ed nder the 5anila8!avite !oastal Road and Recla(ation $ro<ect /5!!RR$0 containing a total area of one (illion nine h ndred fifteen tho sand eight h ndred ninety fo r /,,4,%,H490 s* are (eters'J S bse* ently, on "#ril 4, ,4HH, the Register of Deeds of the 5 nici#ality of $araNa* e iss ed Transfer !ertificates of Title Nos' 3=&4, 3=,,, and 3=,1, in the na(e of $B", covering the three reclai(ed islands known as the J)reedo( IslandsJ located at the so thern #ortion of the 5anila8!avite !oastal Road, $araNa* e !ity' The )reedo( Islands have a total land area of One 5illion )ive H ndred Seventy Bight Tho sand )o r H ndred and )orty One /,,%3H,99,0 s* are (eters or ,%3'H9, hectares' On "#ril 1%, ,44%, $B" entered into a Doint Vent re "gree(ent /JDV"J for brevity0 with "5"RI, a #rivate cor#oration, to develo# the )reedo( Islands' The DV" also re* ired the recla(ation of an additional 1%& hectares of s b(erged areas s rro nding these islands to co(#lete the config ration in the 5aster Develo#(ent

FRANCISCO I. C(A0E), #etitioner, vs' P"4$IC ES#A#ES A"#(ORI#Y an% A,ARI COAS#A$ 4AY E0E$OP,EN# CORPORA#ION, res#ondents' CARPIO, J.: This is an original $etition for 5anda( s with #rayer for a writ of #reli(inary in< nction and a te(#orary restraining order' The #etition seeks to co(#el the $ blic Bstates " thority /J$B"J for brevity0 to disclose all facts on $B"Is then on8going renegotiations with "(ari !oastal 6ay and Develo#(ent !or#oration /J"5"RIJ for brevity0 to reclai( #ortions of 5anila 6ay' The #etition f rther seeks to en<oin $B" fro( signing a new agree(ent with "5"RI involving s ch recla(ation' #'e Fa=&< On Nove(ber 1&, ,43=, the govern(ent, thro gh the !o((issioner of $ blic Highways, signed a contract with the !onstr ction and Develo#(ent !or#oration of the $hili##ines /J!D!$J for brevity0 to reclai( certain foreshore and offshore areas of 5anila 6ay' The contract also incl ded the constr ction of $hases I and II of the 5anila8!avite !oastal Road' !D!$ obligated itself to carry o t all the works in consideration of fifty #ercent of the total reclai(ed land' On )ebr ary 9, ,433, then $resident )erdinand B' 5arcos iss ed $residential Decree No' ,&H9 creating $B"' $D No' ,&H9 tasked $B" Jto reclai( land, incl ding foreshore and s b(erged areas,J and Jto develo#, i(#rove, ac* ire, x x x lease and sell any and all kinds of lands'J , On the sa(e date, then $resident 5arcos iss ed $residential Decree No' ,&H% transferring to $B" the Jlands reclai(ed in the

$lan of the So thern Recla(ation $ro<ect85!!RR$' $B" and "5"RI entered into the DV" thro gh negotiation witho t # blic bidding' 9 On "#ril 1H, ,44%, the 6oard of Directors of $B", in its Resol tion No' ,19%, confir(ed the DV"' %On D ne H, ,44%, then $resident )idel V' Ra(os, thro gh then Bxec tive Secretary R ben Torres, a##roved the DV"'> On Nove(ber 14, ,44>, then Senate $resident Brnesto 5aceda delivered a #rivilege s#eech in the Senate and deno nced the DV" as the Jgrand(other of all sca(s'J "s a res lt, the Senate !o((ittee on :overn(ent !or#orations and $ blic Bnter#rises, and the !o((ittee on "cco ntability of $ blic Officers and Investigations, cond cted a <oint investigation' The Senate !o((ittees re#orted the res lts of their investigation in Senate !o((ittee Re#ort No' %>& dated Se#te(ber ,>, ,443'3 "(ong the concl sions of their re#ort are@ /,0 the reclai(ed lands $B" seeks to transfer to "5"RI nder the DV" are lands of the # blic do(ain which the govern(ent has not classified as alienable lands and therefore $B" cannot alienate these lands? /10 the certificates of title covering the )reedo( Islands are th s void, and /=0 the DV" itself is illegal' On Dece(ber %, ,443, then $resident )idel V' Ra(os iss ed $residential "d(inistrative Order No' =>% creating a 7egal Task )orce to cond ct a st dy on the legality of the DV" in view of Senate !o((ittee Re#ort No' %>&' The (e(bers of the 7egal Task )orce were the Secretary of D stice, H the !hief $residential 7egal !o nsel,4 and the :overn(ent !or#orate !o nsel',& The 7egal Task )orce #held the legality of the DV", contrary to the concl sions reached by the Senate !o((ittees',, On "#ril 9 and %, ,44H, the "hilippine Daily )n8uirer and (oday # blished re#orts that there were on8going renegotiations between $B" and "5"RI nder an order iss ed by then $resident )idel V' Ra(os' "ccording to these re#orts, $B" Director Nestor Ralaw, $B" !hair(an "rsenio C lo and retired Navy Officer Sergio !r E co(#osed the negotiating #anel of $B"' On "#ril ,=, ,44H, "ntonio 5' Q l eta filed before the !o rt a "etition +or "rohibition with Application +or the )ssuance o+ a (emporary .estraining ,rder and "reliminary )nBunction docketed as :'R' No' ,=1449 seeking to n llify the DV"' The !o rt dis(issed the #etition Jfor nwarranted disregard of < dicial hierarchy, witho t #re< dice to the refiling of the case before the #ro#er co rt'J,1 On "#ril 13, ,44H, #etitioner )rank I' !haveE /J$etitionerJ for brevity0 as a tax#ayer, filed the instant "etition +or Mandamus with "rayer +or the )ssuance o+ a 0rit o+ "reliminary )nBunction and (emporary .estraining ,rder ' $etitioner contends the govern(ent stands to lose billions of #esos in the sale by $B" of the reclai(ed lands to "5"RI' $etitioner #rays that $B" # blicly disclose the ter(s of any renegotiation of the DV", invoking Section 1H, "rticle II, and Section 3, "rticle III, of the ,4H3 !onstit tion on the right of the #eo#le to infor(ation on (atters of

# blic concern' $etitioner assails the sale to "5"RI of lands of the # blic do(ain as a blatant violation of Section =, "rticle MII of the ,4H3 !onstit tion #rohibiting the sale of alienable lands of the # blic do(ain to #rivate cor#orations' )inally, #etitioner asserts that he seeks to en<oin the loss of billions of #esos in #ro#erties of the State that are of # blic do(inion' "fter several (otions for extension of ti(e, ,= $B" and "5"RI filed their !o((ents on October ,4, ,44H and D ne 1%, ,44H, res#ectively' 5eanwhile, on Dece(ber 1H, ,44H, #etitioner filed an O(nib s 5otion@ /a0 to re* ire $B" to s b(it the ter(s of the renegotiated $B"8"5"RI contract? /b0 for iss ance of a te(#orary restraining order? and /c0 to set the case for hearing on oral arg (ent' $etitioner filed a Reiterative 5otion for Iss ance of a TRO dated 5ay 1>, ,444, which the !o rt denied in a Resol tion dated D ne 11, ,444' In a Resol tion dated 5arch 1=, ,444, the !o rt gave d e co rse to the #etition and re* ired the #arties to file their res#ective (e(oranda' On 5arch =&, ,444, $B" and "5"RI signed the "(ended Doint Vent re "gree(ent /J"(ended DV",J for brevity0' On 5ay 1H, ,444, the Office of the $resident nder the ad(inistration of then $resident Dose#h B' Bstrada a##roved the "(ended DV"' D e to the a##roval of the "(ended DV" by the Office of the $resident, #etitioner now #rays that on Jconstit tional and stat tory gro nds the renegotiated contract be declared n ll and void'J,9 #'e I<<ue< The iss es raised by #etitioner, $B",% and "5"RI,> are as follows@ I' AHBTHBR THB $RIN!I$"7 RB7IB)S $R"CBD )OR IN THB $BTITION "RB 5OOT "ND "!"DB5I! 6B!"GSB O) SG6SBVGBNT BVBNTS? II' AHBTHBR THB $BTITION 5BRITS DIS5ISS"7 )OR )"I7IN: TO O6SBRVB THB $RIN!I$7B :OVBRNIN: THB HIBR"R!HC O) !OGRTS? III' AHBTHBR THB $BTITION 5BRITS DIS5ISS"7 )OR NON8 BMH"GSTION O) "D5INISTR"TIVB RB5BDIBS? IV' AHBTHBR $BTITIONBR H"S /,C2# #(A9D) TO 6RIN: THIS SGIT?

V' AHBTHBR THB !ONSTITGTION"7 RI:HT TO IN)OR5"TION IN!7GDBS O))I!I"7 IN)OR5"TION ON ON8:OIN: NB:OTI"TIONS 6B)ORB " )IN"7 ":RBB5BNT? VI' AHBTHBR THB STI$G7"TIONS IN THB "5BNDBD DOINT VBNTGRB ":RBB5BNT )OR THB TR"NS)BR TO "5"RI O) !BRT"IN 7"NDS, RB!7"I5BD "ND STI77 TO 6B RB!7"I5BD, VIO7"TB THB ,4H3 !ONSTITGTION? "ND VII' AHBTHBR THB !OGRT IS THB $RO$BR )ORG5 )OR R"ISIN: THB ISSGB O) AHBTHBR THB "5BNDBD DOINT VBNTGRB ":RBB5BNT IS :ROSS7C DIS"DV"NT":BOGS TO THB :OVBRN5BNT' #'e Cou3&H< RuC;nD 4irst issue: 5hether the principal reliefs pra!ed for in the petition are moot and academic because of subse6uent events. The #etition #rays that $B" # blicly disclose the Jter(s and conditions of the on8 going negotiations for a new agree(ent'J The #etition also #rays that the !o rt en<oin $B" fro( J#rivately entering into, #erfecting and;or exec ting any new agree(ent with "5"RI'J $B" and "5"RI clai( the #etition is now (oot and acade(ic beca se "5"RI f rnished #etitioner on D ne 1,, ,444 a co#y of the signed "(ended DV" containing the ter(s and conditions agreed #on in the renegotiations' Th s, $B" has satisfied #etitionerIs #rayer for a # blic disclos re of the renegotiations' 7ikewise, #etitionerIs #rayer to en<oin the signing of the "(ended DV" is now (oot beca se $B" and "5"RI have already signed the "(ended DV" on 5arch =&, ,444' 5oreover, the Office of the $resident has a##roved the "(ended DV" on 5ay 1H, ,444' $etitioner co nters that $B" and "5"RI cannot avoid the constit tional iss e by si(#ly fast8tracking the signing and a##roval of the "(ended DV" before the !o rt co ld act on the iss e' $residential a##roval does not resolve the constit tional iss e or re(ove it fro( the a(bit of < dicial review' Ae r le that the signing of the "(ended DV" by $B" and "5"RI and its a##roval by the $resident cannot o#erate to (oot the #etition and divest the !o rt of its < risdiction' $B" and "5"RI have still to i(#le(ent the "(ended DV"' The #rayer to en<oin the signing of the "(ended DV" on constit tional gro nds necessarily incl des #reventing its i(#le(entation if in the (eanti(e $B" and "5"RI have signed one in violation of the !onstit tion' $etitionerIs #rinci#al basis in assailing the renegotiation of the DV" is its violation of Section =, "rticle MII of the !onstit tion, which #rohibits the govern(ent fro( alienating lands of the # blic

do(ain to #rivate cor#orations' If the "(ended DV" indeed violates the !onstit tion, it is the d ty of the !o rt to en<oin its i(#le(entation, and if already i(#le(ented, to ann l the effects of s ch nconstit tional contract' The "(ended DV" is not an ordinary co((ercial contract b t one which seeks to transfer title and o5nership to ,78.9 hectares of reclaimed lands and submerged areas of (anila *a! to a single private corporation ' It now beco(es (ore co(#elling for the !o rt to resolve the iss e to ins re the govern(ent itself does not violate a #rovision of the !onstit tion intended to safeg ard the national #atri(ony' S #ervening events, whether intended or accidental, cannot #revent the !o rt fro( rendering a decision if there is a grave violation of the !onstit tion' In the instant case, if the "(ended DV" r ns co nter to the !onstit tion, the !o rt can still #revent the transfer of title and ownershi# of alienable lands of the # blic do(ain in the na(e of "5"RI' Bven in cases where s #ervening events had (ade the cases (oot, the !o rt did not hesitate to resolve the legal or constit tional iss es raised to for( late controlling #rinci#les to g ide the bench, bar, and the # blic',3 "lso, the instant #etition is a case of first i(#ression' "ll #revio s decisions of the !o rt involving Section =, "rticle MII of the ,4H3 !onstit tion, or its co nter#art #rovision in the ,43= !onstit tion,,H covered agricultural landssold to #rivate cor#orations which ac* ired the lands fro( #rivate #arties' The transferors of the #rivate cor#orations clai(ed or co ld clai( the right to :udicial confirmation of their imperfect titles,4 nder Title // of !o((onwealth "ct' ,9, /J!" No' ,9,J for brevity0' In the instant case, "5"RI seeks to ac* ire fro( $B", a # blic cor#oration, reclai(ed lands and s b(erged areas for non-agricultural # r#oses by purchase nder $D No' ,&H9 /charter of $B"0 and Title /// of !" No' ,9,' !ertain ndertakings by "5"RI nder the "(ended DV" constit te the consideration for the # rchase' Neither "5"RI nor $B" can clai( < dicial confir(ation of their titles beca se the lands covered by the "(ended DV" are newly reclai(ed or still to be reclai(ed' D dicial confir(ation of i(#erfect title re* ires o#en, contin o s, excl sive and notorio s occ #ation of agric lt ral lands of the # blic do(ain for at least thirty years since D ne ,1, ,49% or earlier' 6esides, the deadline for filing a##lications for < dicial confir(ation of i(#erfect title ex#ired on Dece(ber =,, ,4H3'1& 7astly, there is a need to resolve i((ediately the constit tional iss e raised in this #etition beca se of the #ossible transfer at any ti(e by $B" to "5"RI of title and ownershi# to #ortions of the reclai(ed lands' Gnder the "(ended DV", $B" is obligated to transfer to "5"RI the latterIs seventy #ercent #ro#ortionate share in the reclai(ed areas as the recla(ation #rogresses' The "(ended DV" even allows "5"RI to (ortgage at any ti(e the entirereclai(ed area to raise financing for the recla(ation #ro<ect'1, Second issue: 5hether the petition merits dismissal for failing to observe the principle governing the hierarch! of courts'

$B" and "5"RI clai( #etitioner ignored the < dicial hierarchy by seeking relief directly fro( the !o rt' The #rinci#le of hierarchy of co rts a##lies generally to cases involving fact al * estions' "s it is not a trier of facts, the !o rt cannot entertain cases involving fact al iss es' The instant case, however, raises constit tional iss es of transcendental i(#ortance to the # blic' 11 The !o rt can resolve this case witho t deter(ining any fact al iss e related to the case' "lso, the instant case is a #etition for (anda( s which falls nder the original < risdiction of the !o rt nder Section %, "rticle VIII of the !onstit tion' Ae resolve to exercise #ri(ary < risdiction over the instant case' Third issue: 5hether the petition merits dismissal for non-e;haustion of administrative remedies. $B" fa lts #etitioner for seeking < dicial intervention in co(#elling $B" to disclose # blicly certain infor(ation witho t first asking $B" the needed infor(ation' $B" clai(s #etitionerIs direct resort to the !o rt violates the #rinci#le of exha stion of ad(inistrative re(edies' It also violates the r le that (anda( s (ay iss e only if there is no other #lain, s#eedy and ade* ate re(edy in the ordinary co rse of law' $B" disting ishes the instant case fro( TaNada v' T vera 1= where the !o rt granted the #etition for (anda( s even if the #etitioners there did not initially de(and fro( the Office of the $resident the # blication of the #residential decrees' $B" #oints o t that in TaNada, the Bxec tive De#art(ent had an affirmative statutor! d ty nder "rticle 1 of the !ivil !ode19 and Section , of !o((onwealth "ct No' >=H 1% to # blish the #residential decrees' There was, therefore, no need for the #etitioners in TaNada to (ake an initial de(and fro( the Office of the $resident' In the instant case, $B" clai(s it has no affir(ative stat tory d ty to disclose # blicly infor(ation abo t its renegotiation of the DV"' Th s, $B" asserts that the !o rt ( st a##ly the #rinci#le of exha stion of ad(inistrative re(edies to the instant case in view of the fail re of #etitioner here to de(and initially fro( $B" the needed infor(ation' The original DV" so ght to dis#ose to "5"RI # blic lands held by $B", a govern(ent cor#oration' Gnder Section 34 of the :overn(ent " diting !ode, 1> the dis#osition of govern(ent lands to #rivate #arties re* ires # blic bidding' P2 5as under a positive legal dut! to disclose to the public the terms and conditions for the sale of its lands' The law obligated $B" to (ake this # blic disclos re even witho t de(and fro( #etitioner or fro( anyone' $B" failed to (ake this # blic disclos re beca se the original DV", like the "(ended DV", was the res lt of a negotiated contract, not of a # blic bidding' !onsidering that $B" had an affir(ative stat tory d ty to (ake the # blic disclos re, and was even in breach of this legal d ty, #etitioner had the right to seek direct < dicial intervention' 5oreover, and this alone is deter(inative of this iss e, the #rinci#le of exha stion of ad(inistrative re(edies does not a##ly when the iss e involved is a # rely legal or constit tional * estion'13 The #rinci#al iss e in the instant case is the ca#acity of

"5"RI to ac* ire lands held by $B" in view of the constit tional ban #rohibiting the alienation of lands of the # blic do(ain to #rivate cor#orations' Ae r le that the #rinci#le of exha stion of ad(inistrative re(edies does not a##ly in the instant case' 4ourth issue: 5hether petitioner has locus standi to bring this suit $B" arg es that #etitioner has no standing to instit te mandamus #roceedings to enforce his constit tional right to infor(ation witho t a showing that $B" ref sed to #erfor( an affir(ative d ty i(#osed on $B" by the !onstit tion' $B" also clai(s that #etitioner has not shown that he will s ffer any concrete in< ry beca se of the signing or i(#le(entation of the "(ended DV"' Th s, there is no act al controversy re* iring the exercise of the #ower of < dicial review' The #etitioner has standing to bring this tax#ayerIs s it beca se the #etition seeks to co(#el $B" to co(#ly with its constit tional d ties' There are two constit tional iss es involved here' )irst is the right of citiEens to infor(ation on (atters of # blic concern' Second is the a##lication of a constit tional #rovision intended to ins re the e* itable distrib tion of alienable lands of the # blic do(ain a(ong )ili#ino citiEens' The thr st of the first iss e is to co(#el $B" to disclose # blicly infor(ation on the sale of govern(ent lands worth billions of #esos, infor(ation which the !onstit tion and stat tory law (andate $B" to disclose' The thr st of the second iss e is to #revent $B" fro( alienating h ndreds of hectares of alienable lands of the # blic do(ain in violation of the !onstit tion, co(#elling $B" to co(#ly with a constit tional d ty to the nation' 5oreover, the #etition raises (atters of transcendental i(#ortance to the # blic' In Chave< v. PC00,1H the !o rt #held the right of a citiEen to bring a tax#ayerIs s it on (atters of transcendental i(#ortance to the # blic, th s 8 J6esides, #etitioner e(#hasiEes, the (atter of recovering the ill8gotten wealth of the 5arcoses is an iss e of Itranscendental i(#ortance to the # blic'I He asserts that ordinary tax#ayers have a right to initiate and #rosec te actions * estioning the validity of acts or orders of govern(ent agencies or instr (entalities, if the iss es raised are of I#ara(o nt # blic interest,I and if they Ii((ediately affect the social, econo(ic and (oral well being of the #eo#le'I 5oreover, the (ere fact that he is a citiEen satisfies the re* ire(ent of #ersonal interest, when the #roceeding involves the assertion of a # blic right, s ch as in this case' He invokes several decisions of this !o rt which have set aside the #roced ral (atter of locus standi, when the s b<ect of the case involved # blic interest' xxx

In (aada v. (uvera, the !o rt asserted that when the iss e concerns a # blic right and the ob<ect of (anda( s is to obtain the enforce(ent of a # blic d ty, the #eo#le are regarded as the real #arties in interest? and beca se it is s fficient that #etitioner is a citiEen and as s ch is interested in the exec tion of the laws, he need not show that he has any legal or s#ecial interest in the res lt of the action' In the aforesaid case, the #etitioners so ght to enforce their right to be infor(ed on (atters of # blic concern, a right then recogniEed in Section >, "rticle IV of the ,43= !onstit tion, in connection with the r le that laws in order to be valid and enforceable ( st be # blished in the Official :aEette or otherwise effectively #ro( lgated' In r ling for the #etitionersI legal standing, the !o rt declared that the right they so ght to be enforced Iis a # blic right recogniEed by no less than the f nda(ental law of the land'I /egaspi v. Civil #ervice Commission, while reiterating TaNada, f rther declared that Iwhen a (anda( s #roceeding involves the assertion of a # blic right, the re* ire(ent of #ersonal interest is satisfied by the (ere fact that #etitioner is a citiEen and, therefore, #art of the general I# blicI which #ossesses the right'I ) rther, in Albano v. .eyes, we said that while ex#endit re of # blic f nds (ay not have been involved nder the * estioned contract for the develo#(ent, (anage(ent and o#eration of the 5anila International !ontainer Ter(inal, I# blic interest +was- definitely involved considering the i(#ortant role +of the s b<ect contract- ' ' ' in the econo(ic develo#(ent of the co ntry and the (agnit de of the financial consideration involved'I Ae concl ded that, as a conse* ence, the disclos re #rovision in the !onstit tion wo ld constit te s fficient a thority for #holding the #etitionerIs standing' Si(ilarly, the instant #etition is anchored on the right of the #eo#le to infor(ation and access to official records, doc (ents and #a#ers P a right g aranteed nder Section 3, "rticle III of the ,4H3 !onstit tion' $etitioner, a for(er solicitor general, is a )ili#ino citiEen' 6eca se of the satisfaction of the two basic re* isites laid down by decisional law to s stain #etitionerIs legal standing, i'e' /,0 the enforce(ent of a # blic right /10 es#o sed by a )ili#ino citiEen, we r le that the #etition at bar sho ld be allowed'J Ae r le that since the instant #etition, bro ght by a citiEen, involves the enforce(ent of constit tional rights 8 to infor(ation and to the e* itable diff sion of nat ral reso rces 8 (atters of transcendental # blic i(#ortance, the #etitioner has the re* isite locus standi'

4ifth issue: 5hether the constitutional right to information includes official information on on-going negotiations before a final agreement. Section 3, "rticle III of the !onstit tion ex#lains the #eo#leIs right to infor(ation on (atters of # blic concern in this (anner@ JSec' 3' The right of the #eo#le to infor(ation on (atters of # blic concern shall be recogniEed. ccess to official records, and to documents, and papers pertaining to official acts, transactions, or decisions , as well as to govern(ent research data sed as basis for #olicy develo#(ent, shall be afforded the citiEen, s b<ect to s ch li(itations as (ay be #rovided by law'J /B(#hasis s ##lied0 The State #olicy of f ll trans#arency in all transactions involving # blic interest reinforces the #eo#leIs right to infor(ation on (atters of # blic concern' This State #olicy is ex#ressed in Section 1H, "rticle II of the !onstit tion, th s@ JSec' 1H' S b<ect to reasonable conditions #rescribed by law, the State ado#ts and i(#le(ents a polic! of full public disclosure of all its transactions involving public interest'J /B(#hasis s ##lied0 These twin #rovisions of the !onstit tion seek to #ro(ote trans#arency in #olicy8 (aking and in the o#erations of the govern(ent, as well as #rovide the #eo#le s fficient infor(ation to exercise effectively other constit tional rights' These twin #rovisions are essential to the exercise of freedo( of ex#ression' If the govern(ent does not disclose its official acts, transactions and decisions to citiEens, whatever citiEens say, even if ex#ressed witho t any restraint, will be s#ec lative and a(o nt to nothing' These twin #rovisions are also essential to hold # blic officials Jat all ti(es x x x acco ntable to the #eo#le,J 14 for nless citiEens have the #ro#er infor(ation, they cannot hold # blic officials acco ntable for anything' "r(ed with the right infor(ation, citiEens can #artici#ate in # blic disc ssions leading to the for( lation of govern(ent #olicies and their effective i(#le(entation' "n infor(ed citiEenry is essential to the existence and #ro#er f nctioning of any de(ocracy' "s ex#lained by the !o rt in3almonte v. *elmonte, Jr.=& W J"n essential ele(ent of these freedo(s is to kee# o#en a contin ing dialog e or #rocess of co(( nication between the govern(ent and the #eo#le' It is in the interest of the State that the channels for free #olitical disc ssion be (aintained to the end that the govern(ent (ay #erceive and be res#onsive to the #eo#leIs will' Cet, this o#en dialog e can be effective only to the extent that the citiEenry is infor(ed and th s able to for( late its will intelligently' Only when the #artici#ants in the disc ssion are aware of the iss es and have access to infor(ation relating thereto can s ch bear fr it'J

$B" asserts, citing Chave< v. PC00,=, that in cases of on8going negotiations the right to infor(ation is li(ited to Jdefinite #ro#ositions of the govern(ent'J $B" (aintains the right does not incl de access to Jintra8agency or inter8agency reco((endations or co(( nications d ring the stage when co((on assertions are still in the #rocess of being for( lated or are in the Iex#loratory stageI'J "lso, "5"RI contends that #etitioner cannot invoke the right at the #re8decisional stage or before the closing of the transaction' To s ##ort its contention, "5"RI cites the following disc ssion in the ,4H> !onstit tional !o((ission@ 5,3. Sua3eI' "nd when we say ItransactionsI which sho ld be disting ished fro( contracts, agree(ents, or treaties or whatever, does the :entle(an refer to the ste#s leading to the cons ((ation of the contract, or does he refer to the contract itselfL ,3. O>Ce+ The =transactions= used here, / suppose is generic and therefore, it can cover both steps leading to a contract and alread! a consummated contract, (r. Presiding .fficer. (r. Suare<: This contemplates inclusion of negotiations leading to the consummation of the transaction. (r. .ple: >es, sub:ect onl! to reasonable safeguards on the national interest. (r. Suare<: Thank yo 'J=1 /B(#hasis s ##lied0 "5"RI arg es there ( st first be a cons ((ated contract before #etitioner can invoke the right' Re* iring govern(ent officials to reveal their deliberations at the #re8decisional stage will degrade the * ality of decision8(aking in govern(ent agencies' :overn(ent officials will hesitate to ex#ress their real senti(ents d ring deliberations if there is i((ediate # blic disse(ination of their disc ssions, # tting the( nder all kinds of #ress re before they decide' Ae ( st first disting ish between infor(ation the law on # blic bidding re* ires $B" to disclose # blicly, and infor(ation the constit tional right to infor(ation re* ires $B" to release to the # blic' 6efore the cons ((ation of the contract, $B" ( st, on its own and witho t de(and fro( anyone, disclose to the # blic (atters relating to the dis#osition of its #ro#erty' These incl de the siEe, location, technical descri#tion and nat re of the #ro#erty being dis#osed of, the ter(s and conditions of the dis#osition, the #arties * alified to bid, the (ini( ( #rice and si(ilar infor(ation' $B" ( st #re#are all these data and disclose the( to the # blic at the start of the dis#osition #rocess, long before the cons ((ation of the contract, beca se the :overn(ent " diting !ode re* ires public bidding' If $B" fails to

(ake this disclos re, any citiEen can de(and fro( $B" this infor(ation at any ti(e d ring the bidding #rocess' Infor(ation, however, on on-going evaluation or revie5 of bids or #ro#osals being ndertaken by the bidding or review co((ittee is not i((ediately accessible nder the right to infor(ation' Ahile the eval ation or review is still on8going, there are no Jofficial acts, transactions, or decisionsJ on the bids or #ro#osals' However, once the co((ittee (akes its official recommendation, there arises a ?definite proposition? on the #art of the govern(ent' )ro( this (o(ent, the # blicIs right to infor(ation attaches, and any citiEen can access all the non8#ro#rietary infor(ation leading to s ch definite #ro#osition' In Chave< v. PC00,== the !o rt r led as follows@ J!onsidering the intent of the fra(ers of the !onstit tion, we believe that it is inc (bent #on the $!:: and its officers, as well as other govern(ent re#resentatives, to disclose s fficient # blic infor(ation on any #ro#osed settle(ent they have decided to take # with the ostensible owners and holders of ill8gotten wealth' S ch infor(ation, tho gh, ( st #ertain to definite propositions of the government , not necessarily to intra8agency or inter8agency reco((endations or co(( nications d ring the stage when co((on assertions are still in the #rocess of being for( lated or are in the Jex#loratoryJ stage' There is need, of co rse, to observe the sa(e restrictions on disclos re of infor(ation in general, as disc ssed earlier W s ch as on (atters involving national sec rity, di#lo(atic or foreign relations, intelligence and other classified infor(ation'J /B(#hasis s ##lied0 !ontrary to "5"RIIs contention, the co((issioners of the ,4H> !onstit tional !o((ission nderstood that the right to infor(ation ?contemplates inclusion of negotiations leading to the consummation of the transaction.? !ertainly, a cons ((ated contract is not a re* ire(ent for the exercise of the right to infor(ation' Otherwise, the #eo#le can never exercise the right if no contract is cons ((ated, and if one is cons ((ated, it (ay be too late for the # blic to ex#ose its defects'<Cwphi<.nDt Re* iring a cons ((ated contract will kee# the # blic in the dark ntil the contract, which (ay be grossly disadvantageo s to the govern(ent or even illegal, beco(es a +ait accompli' This negates the State #olicy of f ll trans#arency on (atters of # blic concern, a sit ation which the fra(ers of the !onstit tion co ld not have intended' S ch a re* ire(ent will #revent the citiEenry fro( #artici#ating in the # blic disc ssion of any proposedcontract, effectively tr ncating a basic right enshrined in the 6ill of Rights' Ae can allow neither an e(asc lation of a constit tional right, nor a retreat by the State of its avowed J#olicy of f ll disclos re of all its transactions involving # blic interest'J

The right covers three categories of infor(ation which are J(atters of # blic concern,J na(ely@ /,0 official records? /10 doc (ents and #a#ers #ertaining to official acts, transactions and decisions? and /=0 govern(ent research data sed in for( lating #olicies' The first category refers to any doc (ent that is #art of the # blic records in the c stody of govern(ent agencies or officials' The second category refers to doc (ents and #a#ers recording, evidencing, establishing, confir(ing, s ##orting, < stifying or ex#laining official acts, transactions or decisions of govern(ent agencies or officials' The third category refers to research data, whether raw, collated or #rocessed, owned by the govern(ent and sed in for( lating govern(ent #olicies' The infor(ation that #etitioner (ay access on the renegotiation of the DV" incl des eval ation re#orts, reco((endations, legal and ex#ert o#inions, (in tes of (eetings, ter(s of reference and other doc (ents attached to s ch re#orts or (in tes, all relating to the DV"' However, the right to infor(ation does not co(#el $B" to #re#are lists, abstracts, s ((aries and the like relating to the renegotiation of the DV"'=9 The right only affords access to records, doc (ents and #a#ers, which (eans the o##ort nity to ins#ect and co#y the(' One who exercises the right ( st co#y the records, doc (ents and #a#ers at his ex#ense' The exercise of the right is also s b<ect to reasonable reg lations to #rotect the integrity of the # blic records and to (ini(iEe disr #tion to govern(ent o#erations, like r les s#ecifying when and how to cond ct the ins#ection and co#ying'=% The right to infor(ation, however, does not extend to (atters recogniEed as #rivileged infor(ation nder the se#aration of #owers' => The right does not also a##ly to infor(ation on (ilitary and di#lo(atic secrets, infor(ation affecting national sec rity, and infor(ation on investigations of cri(es by law enforce(ent agencies before the #rosec tion of the acc sed, which co rts have long recogniEed as confidential'=3 The right (ay also be s b<ect to other li(itations that !ongress (ay i(#ose by law' There is no clai( by $B" that the infor(ation de(anded by #etitioner is #rivileged infor(ation rooted in the se#aration of #owers' The infor(ation does not cover $residential conversations, corres#ondences, or disc ssions d ring closed8door !abinet (eetings which, like internal deliberations of the S #re(e !o rt and other collegiate co rts, or exec tive sessions of either ho se of !ongress, =H are recogniEed as confidential' This kind of infor(ation cannot be #ried o#en by a co8e* al branch of govern(ent' " frank exchange of ex#loratory ideas and assess(ents, free fro( the glare of # blicity and #ress re by interested #arties, is essential to #rotect the inde#endence of decision8(aking of those tasked to exercise $residential, 7egislative and D dicial #ower'=4 This is not the sit ation in the instant case' Ae r le, therefore, that the constit tional right to infor(ation incl des official infor(ation on on-going negotiations before a final contract' The infor(ation, however, ( st constit te definite #ro#ositions by the govern(ent and sho ld not

cover recogniEed exce#tions like #rivileged infor(ation, (ilitary and di#lo(atic secrets and si(ilar (atters affecting national sec rity and # blic order' 9& !ongress has also #rescribed other li(itations on the right to infor(ation in several legislations'9, Si;th issue: 5hether stipulations in the mended J3 for the transfer to ( $/ of lands, reclaimed or to be reclaimed, violate the Constitution. The $egalian Doctrine The ownershi# of lands reclai(ed fro( foreshore and s b(erged areas is rooted in the Regalian doctrine which holds that the State owns all lands and waters of the # blic do(ain' G#on the S#anish con* est of the $hili##ines, ownershi# of all Jlands, territories and #ossessionsJ in the $hili##ines #assed to the S#anish !rown'91 The Ring, as the sovereign r ler and re#resentative of the #eo#le, ac* ired and owned all lands and territories in the $hili##ines exce#t those he dis#osed of by grant or sale to #rivate individ als' The ,4=%, ,43= and ,4H3 !onstit tions ado#ted the Regalian doctrine s bstit ting, however, the State, in lie of the Ring, as the owner of all lands and waters of the # blic do(ain' The Regalian doctrine is the fo ndation of the ti(e8honored #rinci#le of land ownershi# that Jall lands that were not ac* ired fro( the :overn(ent, either by # rchase or by grant, belong to the # blic do(ain'J 9= "rticle ==4 of the !ivil !ode of ,HH4, which is now "rticle 91& of the !ivil !ode of ,4%&, incor#orated the Regalian doctrine' .5nership and Disposition of $eclaimed #ands The S#anish 7aw of Aaters of ,H>> was the first stat tory law governing the ownershi# and dis#osition of reclai(ed lands in the $hili##ines' On 5ay ,H, ,4&3, the $hili##ine !o((ission enacted "ct No' ,>%9 which #rovided for the lease, but not the sale, of reclaimed lands of the government to corporations and individuals ' 7ater, on Nove(ber 14, ,4,4, the $hili##ine 7egislat re a##roved "ct No' 1H39, the $ blic 7and "ct, which a thoriEed the lease, but not the sale, of reclaimed lands of the government to corporations and individuals ' On Nove(ber 3, ,4=>, the National "sse(bly #assed !o((onwealth "ct No' ,9,, also known as the $ blic 7and "ct, which authori<ed the lease, but not the sale, of reclaimed lands of the government to corporations and individuals' !" No' ,9, contin es to this day as the general law governing the classification and dis#osition of lands of the # blic do(ain' The Spanish #a5 of 1aters of &@77 and the Civil Code of &@@A Gnder the S#anish 7aw of Aaters of ,H>>, the shores, bays, coves, inlets and all waters within the (ariti(e Eone of the S#anish territory belonged to the # blic

do(ain for # blic se'99 The S#anish 7aw of Aaters of ,H>> allowed the recla(ation of the sea nder "rticle %, which #rovided as follows@ J"rticle %' 7ands reclai(ed fro( the sea in conse* ence of works constr cted by the State, or by the #rovinces, # eblos or #rivate #ersons, with #ro#er #er(ission, shall beco(e the #ro#erty of the #arty constr cting s ch works, nless otherwise #rovided by the ter(s of the grant of a thority'J Gnder the S#anish 7aw of Aaters, land reclai(ed fro( the sea belonged to the #arty ndertaking the recla(ation, #rovided the govern(ent iss ed the necessary #er(it and did not reserve ownershi# of the reclai(ed land to the State' "rticle ==4 of the !ivil !ode of ,HH4 defined #ro#erty of # blic do(inion as follows@ J"rt' ==4' $ro#erty of # blic do(inion is W ,' That devoted to # blic se, s ch as roads, canals, rivers, torrents, #orts and bridges constr cted by the State, riverbanks, shores, roadsteads, and that of a si(ilar character? 1' That belonging excl sively to the State which, witho t being of general # blic se, is e(#loyed in so(e # blic service, or in the develo#(ent of the national wealth, s ch as walls, fortresses, and other works for the defense of the territory, and (ines, ntil granted to #rivate individ als'J $ro#erty devoted to # blic se referred to #ro#erty o#en for se by the # blic' In contrast, #ro#erty devoted to # blic service referred to #ro#erty sed for so(e s#ecific # blic service and o#en only to those a thoriEed to se the #ro#erty' $ro#erty of # blic do(inion referred not only to #ro#erty devoted to # blic se, b t also to #ro#erty not so sed b t e(#loyed to develop the national 5ealth' This class of #ro#erty constit ted #ro#erty of # blic do(inion altho gh e(#loyed for so(e econo(ic or co((ercial activity to increase the national wealth' "rticle =9, of the !ivil !ode of ,HH4 governed the re8classification of #ro#erty of # blic do(inion into #rivate #ro#erty, to wit@ J"rt' =9,' $ro#erty of # blic do(inion, when no longer devoted to # blic se or to the defense of the territory, shall beco(e a #art of the #rivate #ro#erty of the State'J

This #rovision, however, was not self8exec ting' The legislat re, or the exec tive de#art(ent # rs ant to law, ( st declare the #ro#erty no longer needed for # blic se or territorial defense before the govern(ent co ld lease or alienate the #ro#erty to #rivate #arties'9% ct "o. &79- of the Philippine Commission On 5ay H, ,4&3, the $hili##ine !o((ission enacted "ct No' ,>%9 which reg lated the lease of reclai(ed and foreshore lands' The salient #rovisions of this law were as follows@ JSection ,' The control and disposition of the foreshore as defined in existing law, and the title to all 0overnment or public lands made or reclaimed b! the 0overnment b! dredging or filling or otherwise thro gho t the $hili##ine Islands, shall be retained b! the 0overnment witho t #re< dice to vested rights and witho t #re< dice to rights conceded to the !ity of 5anila in the 7 neta Bxtension' Section 1' /a0 The Secretary of the Interior shall ca se all :overn(ent or # blic lands (ade or reclai(ed by the :overn(ent by dredging or filling or otherwise to be divided into lots or blocks, with the necessary streets and alleyways located thereon, and shall ca se #lats and #lans of s ch s rveys to be #re#ared and filed with the 6 rea of 7ands' /b0 G#on co(#letion of s ch #lats and #lans the 0overnor-0eneral shall give notice to the public that such parts of the lands so made or reclaimed as are not needed for public purposes 5ill be leased for commercial and business purposes, x x x' xxx /e0 The leases above provided for shall be disposed of to the highest and best bidder therefore, s b<ect to s ch reg lations and safeg ards as the :overnor8:eneral (ay by exec tive order #rescribe'J /B(#hasis s ##lied0 "ct No' ,>%9 (andated that the government should retain title to all lands reclaimed b! the government' The "ct also vested in the govern(ent control and dis#osition of foreshore lands' $rivate #arties co ld lease lands reclai(ed by the govern(ent only if these lands were no longer needed for # blic # r#ose' "ct No' ,>%9 (andated public bidding in the lease of govern(ent reclai(ed lands' "ct No' ,>%9 (ade govern(ent reclai(ed lands sui generis in that nlike other # blic lands which the govern(ent co ld sell to #rivate #arties, these reclai(ed lands were available only for lease to #rivate #arties'

"ct No' ,>%9, however, did not re#eal Section % of the S#anish 7aw of Aaters of ,H>>' "ct No' ,>%9 did not #rohibit #rivate #arties fro( reclai(ing #arts of the sea nder Section % of the S#anish 7aw of Aaters' 7ands reclai(ed fro( the sea by #rivate #arties with govern(ent #er(ission re(ained #rivate lands' ct "o. )@8- of the Philippine #egislature On Nove(ber 14, ,4,4, the $hili##ine 7egislat re enacted "ct No' 1H39, the $ blic 7and "ct'9> The salient #rovisions of "ct No' 1H39, on reclai(ed lands, were as follows@ JSec' >' The 0overnor-0eneral, upon the recommendation of the Secretar! of griculture and "atural $esources, shall from time to time classif! the lands of the public domain into W /a0 lienable or disposable, /b0 Ti(ber, and /c0 5ineral lands, x x x' Sec' 3' )or the # r#oses of the govern(ent and dis#osition of alienable or dis#osable # blic lands, the 0overnor-0eneral, upon recommendation b! the Secretar! of griculture and "atural $esources, shall from time to time declare 5hat lands are open to disposition or concession under this ct'J Sec' H' .nl! those lands shall be declared open to disposition or concession 5hich have been officiall! delimited or classified x x x' xxx Sec' %%' "ny tract of land of the # blic do(ain which, being neither ti(ber nor (ineral land, shall be classified as suitable for residential purposes or for commercial, industrial, or other productive purposes other than agricultural purposes, and shall be o#en to dis#osition or concession, shall be dis#osed of nder the #rovisions of this cha#ter, and not otherwise' Sec' %>' The lands disposable under this title shall be classified as follo5s @ %a' #ands reclaimed b! the 0overnment b! dredging, filling, or other means? x x x'

%b' 4oreshoreB %c' (arsh! lands or lands covered with water bordering #on the shores or banks of navigable lakes or rivers? /d0 7ands not incl ded in any of the foregoing classes'

Sec' %H' The lands comprised in classes %a', %b', and %c' of section fift!-si; shall be disposed of to private parties b! lease onl! and not other5ise , as soon as the 0overnor-0eneral, upon recommendation b! the Secretar! of griculture and "atural $esources, shall declare that the same are not necessar! for the public service and are open to disposition nder this cha#ter' The lands included in class %d' ma! be disposed of b! sale or lease under the provisions of this ct.J /B(#hasis s ##lied0 Section > of "ct No' 1H39 a thoriEed the :overnor8:eneral to Jclassify lands of the # blic do(ain into x x x alienable or dis#osableJ 93 lands' Section 3 of the "ct e(#owered the :overnor8:eneral to Jdeclare what lands are o#en to dis#osition or concession'J Section H of the "ct li(ited alienable or dis#osable lands only to those lands which have been Jofficially deli(ited and classified'J Section %> of "ct No' 1H39 stated that lands Jdis#osable nder this title 9H shall be classifiedJ as govern(ent reclai(ed, foreshore and (arshy lands, as well as other lands' "ll these lands, however, ( st be s itable for residential, co((ercial, ind strial or other #rod ctive non-agricultural # r#oses' These #rovisions vested #on the :overnor8:eneral the #ower to classify inalienable lands of the # blic do(ain into dis#osable lands of the # blic do(ain' These #rovisions also e(#owered the :overnor8:eneral to classify f rther s ch dis#osable lands of the # blic do(ain into govern(ent reclai(ed, foreshore or (arshy lands of the # blic do(ain, as well as other non8agric lt ral lands' Section %H of "ct No' 1H39 categorically (andated that dis#osable lands of the # blic do(ain classified as govern(ent reclai(ed, foreshore and (arshy lands ?shall be disposed of to private parties b! lease onl! and not other5ise.? The :overnor8:eneral, before allowing the lease of these lands to #rivate #arties, ( st for(ally declare that the lands were Jnot necessary for the # blic service'J "ct No' 1H39 reiterated the State #olicy to lease and not to sell govern(ent reclai(ed, foreshore and (arshy lands of the # blic do(ain, a #olicy first en nciated in ,4&3 in "ct No' ,>%9' :overn(ent reclai(ed, foreshore and (arshy lands re(ained sui generis, as the only alienable or dis#osable lands of the # blic do(ain that the govern(ent co ld not sell to #rivate #arties'

The rationale behind this State #olicy is obvio s' :overn(ent reclai(ed, foreshore and (arshy # blic lands for non8agric lt ral # r#oses retain their inherent #otential as areas for # blic service' This is the reason the govern(ent #rohibited the sale, and only allowed the lease, of these lands to #rivate #arties' The State always reserved these lands for so(e f t re # blic service' "ct No' 1H39 did not a thoriEe the reclassification of govern(ent reclai(ed, foreshore and (arshy lands into other non8agric lt ral lands nder Section %> /d0' 7ands falling nder Section %> /d0 were the only lands for non8agric lt ral # r#oses the govern(ent co ld sell to #rivate #arties' Th s, nder "ct No' 1H39, the govern(ent co ld not sell govern(ent reclai(ed, foreshore and (arshy lands to #rivate #arties, unless the legislature passed a la5 allo5ing their sale '94 "ct No' 1H39 did not #rohibit #rivate #arties fro( reclai(ing #arts of the sea # rs ant to Section % of the S#anish 7aw of Aaters of ,H>>' 7ands reclai(ed fro( the sea by #rivate #arties with govern(ent #er(ission re(ained #rivate lands' Dispositions under the &A,9 Constitution On 5ay ,9, ,4=%, the ,4=% !onstit tion took effect #on its ratification by the )ili#ino #eo#le' The ,4=% !onstit tion, in ado#ting the Regalian doctrine, declared in Section ,, "rticle MIII, that W JSection ,' "ll agric lt ral, ti(ber, and (ineral lands of the # blic do(ain, waters, (inerals, coal, #etrole (, and other (ineral oils, all forces of #otential energy and other nat ral reso rces of the $hili##ines belong to the State, and their dis#osition, ex#loitation, develo#(ent, or tiliEation shall be li(ited to citiEens of the $hili##ines or to cor#orations or associations at least sixty #er cent ( of the ca#ital of which is owned by s ch citiEens, s b<ect to any existing right, grant, lease, or concession at the ti(e of the ina g ration of the :overn(ent established nder this !onstit tion' "atural resources, 5ith the e;ception of public agricultural land, shall not be alienated, and no license, concession, or lease for the ex#loitation, develo#(ent, or tiliEation of any of the nat ral reso rces shall be granted for a #eriod exceeding twenty8five years, renewable for another twenty8five years, exce#t as to water rights for irrigation, water s ##ly, fisheries, or ind strial ses other than the develo#(ent of water #ower, in which cases beneficial se (ay be the (eas re and li(it of the grant'J /B(#hasis s ##lied0 The ,4=% !onstit tion barred the alienation of all nat ral reso rces exce#t # blic agric lt ral lands, which were the only nat ral reso rces the State co ld alienate' Th s, foreshore lands, considered #art of the StateIs nat ral reso rces, beca(e inalienable by constit tional fiat, available only for lease for 1% years, renewable for another 1% years' The govern(ent co ld alienate foreshore lands only after these

lands were reclai(ed and classified as alienable agric lt ral lands of the # blic do(ain' :overn(ent reclai(ed and (arshy lands of the # blic do(ain, being neither ti(ber nor (ineral lands, fell nder the classification of # blic agric lt ral lands'%& However, govern(ent reclai(ed and (arshy lands, altho gh s b<ect to classification as dis#osable # blic agric lt ral lands, co ld only be leased and not sold to #rivate #arties beca se of "ct No' 1H39' The #rohibition on #rivate #arties fro( ac* iring ownershi# of govern(ent reclai(ed and (arshy lands of the # blic do(ain was only a stat tory #rohibition and the legislat re co ld therefore re(ove s ch #rohibition' The ,4=% !onstit tion did not #rohibit individ als and cor#orations fro( ac* iring govern(ent reclai(ed and (arshy lands of the # blic do(ain that were classified as agric lt ral lands nder existing # blic land laws' Section 1, "rticle MIII of the ,4=% !onstit tion #rovided as follows@ JSection 1' "o private corporation or association ma! ac6uire, lease, or hold public agricultural lands in e;cess of one thousand and t5ent! four hectares, nor ma! an! individual ac6uire such lands b! purchase in e;cess of one hundred and fort! hectares, or b! lease in e;cess of one thousand and t5ent!-four hectares, or by ho(estead in excess of twenty8 fo r hectares' 7ands ada#ted to graEing, not exceeding two tho sand hectares, (ay be leased to an individ al, #rivate cor#oration, or association'J /B(#hasis s ##lied0 Still, after the effectivity of the ,4=% !onstit tion, the legislat re did not re#eal Section %H of "ct No' 1H39 to o#en for sale to #rivate #arties govern(ent reclai(ed and (arshy lands of the # blic do(ain' On the contrary, the legislat re contin ed the long established State #olicy of retaining for the govern(ent title and ownershi# of govern(ent reclai(ed and (arshy lands of the # blic do(ain' Common5ealth ct "o. &-& of the Philippine "ational ssembl! On Nove(ber 3, ,4=>, the National "sse(bly a##roved !o((onwealth "ct No' ,9,, also known as the $ blic 7and "ct, which co(#iled the then existing laws on lands of the # blic do(ain' !" No' ,9,, as a(ended, re(ains to this day the e;isting general la5 governing the classification and dis#osition of lands of the # blic do(ain other than ti(ber and (ineral lands'%, Section > of !" No' ,9, e(#owers the $resident to classify lands of the # blic do(ain into Jalienable or dis#osableJ%1 lands of the # blic do(ain, which #rior to s ch classification are inalienable and o tside the co((erce of (an' Section 3 of !" No' ,9, a thoriEes the $resident to Jdeclare what lands are o#en to dis#osition or concession'J Section H of !" No' ,9, states that the govern(ent can declare o#en for dis#osition or concession only lands that are Jofficially deli(ited and classified'J Sections >, 3 and H of !" No' ,9, read as follows@

JSec' >' The President, upon the recommendation of the Secretar! of griculture and Commerce, shall from time to time classif! the lands of the public domain into W %a' lienable or disposable,

%b' 4oreshoreB %c' (arsh! lands or lands covered with water bordering #on the shores or banks of navigable lakes or rivers? /d0 7ands not incl ded in any of the foregoing classes'

/b0 Ti(ber, and /c0 5ineral lands, and (ay at any ti(e and in like (anner transfer s ch lands fro( one class to another,%= for the # r#ose of their ad(inistration and dis#osition' Sec' 3' )or the # r#oses of the ad(inistration and dis#osition of alienable or dis#osable # blic lands, the President, upon recommendation b! the Secretar! of griculture and Commerce, shall from time to time declare 5hat lands are open to disposition or concession nder this "ct' Sec' H' .nl! those lands shall be declared open to disposition or concession 5hich have been officiall! delimited and classified and, when #racticable, s rveyed, and 5hich have not been reserved for public or 6uasi-public uses, nor a##ro#riated by the :overn(ent, nor in any (anner beco(e #rivate #ro#erty, nor those on which a #rivate right a thoriEed and recogniEed by this "ct or any other valid law (ay be clai(ed, or which, having been reserved or a##ro#riated, have ceased to be so' x x x'J Th s, before the govern(ent co ld alienate or dis#ose of lands of the # blic do(ain, the $resident ( st first officially classify these lands as alienable or dis#osable, and then declare the( o#en to dis#osition or concession' There ( st be no law reserving these lands for # blic or * asi8# blic ses' The salient #rovisions of !" No' ,9,, on govern(ent reclai(ed, foreshore and (arshy lands of the # blic do(ain, are as follows@ JSec' %H' n! tract of land of the public domain 5hich, being neither timber nor mineral land, is intended to be used for residential purposes or for commercial, industrial, or other productive purposes other than agricultural, and is open to disposition or concession, shall be disposed of under the provisions of this chapter and not other5ise' Sec' %4' The lands disposable under this title shall be classified as follo5s @ %a' #ands reclaimed b! the 0overnment b! dredging, filling, or other meansB Sec' >&' "ny tract of land co(#rised nder this title (ay be leased or sold, as the case (ay be, to any #erson, cor#oration, or association a thoriEed to # rchase or lease # blic lands for agric lt ral # r#oses' x x x' Sec' >,' The lands comprised in classes %a', %b', and %c' of section fift!nine shall be disposed of to private parties b! lease onl! and not other5ise, as soon as the President, #on reco((endation by the Secretary of "gric lt re, shall declare that the same are not necessar! for the public service and are o#en to dis#osition nder this cha#ter' The lands included in class %d' ma! be disposed of b! sale or lease under the provisions of this ct.J /B(#hasis s ##lied0 Section >, of !" No' ,9, reado#ted, after the effectivity of the ,4=% !onstit tion, Section %H of "ct No' 1H39 #rohibiting the sale of govern(ent reclai(ed, foreshore and (arshy dis#osable lands of the # blic do(ain' "ll these lands are intended for residential, co((ercial, ind strial or other non8agric lt ral # r#oses' "s before, Section >, allowed only the lease of s ch lands to #rivate #arties' The govern(ent co ld sell to #rivate #arties only lands falling nder Section %4 /d0 of !" No' ,9,, or those lands for non8agric lt ral # r#oses not classified as govern(ent reclai(ed, foreshore and (arshy dis#osable lands of the # blic do(ain' )oreshore lands, however, beca(e inalienable nder the ,4=% !onstit tion which only allowed the lease of these lands to * alified #rivate #arties' Section %H of !" No' ,9, ex#ressly states that dis#osable lands of the # blic do(ain intended for residential, co((ercial, ind strial or other #rod ctive # r#oses other than agric lt ral Jshall be disposed of under the provisions of this chapter and not other5ise'J Gnder Section ,& of !" No' ,9,, the ter( Jdis#ositionJ incl des lease of the land' "ny dis#osition of govern(ent reclai(ed, foreshore and (arshy dis#osable lands for non8agric lt ral # r#oses ( st co(#ly with !ha#ter IM, Title III of !" No' ,9,,%9 nless a s bse* ent law a(ended or re#ealed these #rovisions' In his conc rring o#inion in the land(ark case of $epublic $eal 2state Corporation v. Court of ppeals,%%D stice Reynato S' $ no s ((ariEed s ccinctly the law on this (atter, as follows@ J)oreshore lands are lands of # blic do(inion intended for # blic se' So too are lands reclai(ed by the govern(ent by dredging, filling, or other (eans' "ct ,>%9 (andated that the control and dis#osition of the foreshore

and lands nder water re(ained in the national govern(ent' Said law allowed only the IleasingI of reclai(ed land' The $ blic 7and "cts of ,4,4 and ,4=> also declared that the foreshore and lands reclai(ed by the govern(ent were to be Jdis#osed of to #rivate #arties by lease only and not otherwise'J 6efore leasing, however, the :overnor8:eneral, #on reco((endation of the Secretary of "gric lt re and Nat ral Reso rces, had first to deter(ine that the land reclai(ed was not necessary for the # blic service' This re* isite ( st have been (et before the land co ld be dis#osed of' *ut even then, the foreshore and lands under 5ater 5ere not to be alienated and sold to private parties. The disposition of the reclaimed land 5as onl! b! lease. The land remained propert! of the State'J /B(#hasis s ##lied0 "s observed by D stice $ no in his conc rring o#inion, J!o((onwealth "ct No' ,9, has re(ained in effect at #resent'J The State #olicy #rohibiting the sale to #rivate #arties of govern(ent reclai(ed, foreshore and (arshy alienable lands of the # blic do(ain, first i(#le(ented in ,4&3 was th s reaffir(ed in !" No' ,9, after the ,4=% !onstit tion took effect' The #rohibition on the sale of foreshore lands, however, beca(e a constit tional edict nder the ,4=% !onstit tion' )oreshore lands beca(e inalienable as nat ral reso rces of the State, nless reclai(ed by the govern(ent and classified as agric lt ral lands of the # blic do(ain, in which case they wo ld fall nder the classification of govern(ent reclai(ed lands' "fter the effectivity of the ,4=% !onstit tion, govern(ent reclai(ed and (arshy dis#osable lands of the # blic do(ain contin ed to be only leased and not sold to #rivate #arties'%> These lands re(ained sui generis, as the only alienable or dis#osable lands of the # blic do(ain the govern(ent co ld not sell to #rivate #arties' Since then and ntil now, the only way the govern(ent can sell to #rivate #arties govern(ent reclai(ed and (arshy dis#osable lands of the # blic do(ain is for the legislat re to #ass a law a thoriEing s ch sale' !" No' ,9, does not a thoriEe the $resident to reclassify govern(ent reclai(ed and (arshy lands into other non8 agric lt ral lands nder Section %4 /d0' 7ands classified nder Section %4 /d0 are the only alienable or dis#osable lands for non8agric lt ral # r#oses that the govern(ent co ld sell to #rivate #arties' 5oreover, Section >& of !" No' ,9, e;pressl! re* ires congressional a thority before lands nder Section %4 that the govern(ent #revio sly transferred to govern(ent nits or entities co ld be sold to #rivate #arties' Section >& of !" No' ,9, declares that W

JSec' >&' x x x The area so leased or sold shall be s ch as shall, in the < dg(ent of the Secretary of "gric lt re and Nat ral Reso rces, be reasonably necessary for the # r#oses for which s ch sale or lease is re* ested, and shall not exceed one h ndred and forty8fo r hectares@ $rovided, however, That this li(itation shall not a##ly to grants, donations, or transfers (ade to a #rovince, ( nici#ality or branch or s bdivision of the :overn(ent for the # r#oses dee(ed by said entities cond cive to the # blic interest?but the land so granted, donated, or transferred to a province, municipalit! or branch or subdivision of the 0overnment shall not be alienated, encumbered, or other5ise disposed of in a manner affecting its title, e;cept 5hen authori<ed b! Congress @ x x x'J /B(#hasis s ##lied0 The congressional a thority re* ired in Section >& of !" No' ,9, (irrors the legislative a thority re* ired in Section %> of "ct No' 1H39' One reason for the congressional a thority is that Section >& of !" No' ,9, exe(#ted govern(ent nits and entities fro( the (axi( ( area of # blic lands that co ld be ac* ired fro( the State' These govern(ent nits and entities sho ld not < st t rn aro nd and sell these lands to #rivate #arties in violation of constit tional or stat tory li(itations' Otherwise, the transfer of lands for non8agric lt ral # r#oses to govern(ent nits and entities co ld be sed to circ (vent constit tional li(itations on ownershi# of alienable or dis#osable lands of the # blic do(ain' In the sa(e (anner, s ch transfers co ld also be sed to evade the stat tory #rohibition in !" No' ,9, on the sale of govern(ent reclai(ed and (arshy lands of the # blic do(ain to #rivate #arties' Section >& of !" No' ,9, constit tes by o#eration of law a lien on these lands'%3 In case of sale or lease of dis#osable lands of the # blic do(ain falling nder Section %4 of !" No' ,9,, Sections >= and >3 re* ire a # blic bidding' Sections >= and >3 of !" No' ,9, #rovide as follows@ JSec' >=' Ahenever it is decided that lands covered by this cha#ter are not needed for # blic # r#oses, the Director of 7ands shall ask the Secretary of "gric lt re and !o((erce /now the Secretary of Nat ral Reso rces0 for a thority to dis#ose of the sa(e' G#on recei#t of s ch a thority, the Director of 7ands shall give notice by # blic advertise(ent in the sa(e (anner as in the case of leases or sales of agric lt ral # blic land, x x x' Sec' >3' The lease or sale shall be made b! oral biddingB and ad:udication shall be made to the highest bidder' x x x'J /B(#hasis s ##lied0 Th s, !" No' ,9, (andates the :overn(ent to # t to # blic a ction all leases or sales of alienable or dis#osable lands of the # blic do(ain'%H

7ike "ct No' ,>%9 and "ct No' 1H39 before it, !" No' ,9, did not re#eal Section % of the S#anish 7aw of Aaters of ,H>>' $rivate #arties co ld still reclai( #ortions of the sea with govern(ent #er(ission' However, the reclaimed land could become private land onl! if classified as alienable agricultural land of the public domain o#en to dis#osition nder !" No' ,9,' The ,4=% !onstit tion #rohibited the alienation of all nat ral reso rces exce#t # blic agric lt ral lands' The Civil Code of &A9C The !ivil !ode of ,4%& reado#ted s bstantially the definition of #ro#erty of # blic do(inion fo nd in the !ivil !ode of ,HH4' "rticles 91& and 911 of the !ivil !ode of ,4%& state that W J"rt' 91&' The following things are #ro#erty of # blic do(inion@ /,0 Those intended for # blic se, s ch as roads, canals, rivers, torrents, #orts and bridges constr cted by the State, banks, shores, roadsteads, and others of si(ilar character? /10 Those which belong to the State, witho t being for # blic se, and are intended for so(e # blic service or for the develo#(ent of the national wealth' x x x' "rt' 911' $ro#erty of # blic do(inion, when no longer intended for # blic se or for # blic service, shall for( #art of the #atri(onial #ro#erty of the State'J "gain, the govern(ent ( st for(ally declare that the #ro#erty of # blic do(inion is no longer needed for # blic se or # blic service, before the sa(e co ld be classified as #atri(onial #ro#erty of the State'%4 In the case of govern(ent reclai(ed and (arshy lands of the # blic do(ain, the declaration of their being dis#osable, as well as the (anner of their dis#osition, is governed by the a##licable #rovisions of !" No' ,9,' 7ike the !ivil !ode of ,HH4, the !ivil !ode of ,4%& incl ded as #ro#erty of # blic do(inion those #ro#erties of the State which, witho t being for # blic se, are intended for # blic service or the Jdevelopment of the national 5ealth'J Th s, govern(ent reclai(ed and (arshy lands of the State, even if not e(#loyed for # blic se or # blic service, if develo#ed to enhance the national wealth, are classified as #ro#erty of # blic do(inion' Dispositions under the &A8, Constitution

The ,43= !onstit tion, which took effect on Dan ary ,3, ,43=, likewise ado#ted the Regalian doctrine' Section H, "rticle MIV of the ,43= !onstit tion stated that W JSec' H' "ll lands of the # blic do(ain, waters, (inerals, coal, #etrole ( and other (ineral oils, all forces of #otential energy, fisheries, wildlife, and other nat ral reso rces of the $hili##ines belong to the State' 1ith the e;ception of agricultural, industrial or commercial, residential, and resettlement lands of the public domain, natural resources shall not be alienated, and no license, concession, or lease for the ex#loration, develo#(ent, ex#loitation, or tiliEation of any of the nat ral reso rces shall be granted for a #eriod exceeding twenty8five years, renewable for not (ore than twenty8five years, exce#t as to water rights for irrigation, water s ##ly, fisheries, or ind strial ses other than the develo#(ent of water #ower, in which cases, beneficial se (ay be the (eas re and the li(it of the grant'J /B(#hasis s ##lied0 The ,43= !onstit tion #rohibited the alienation of all nat ral reso rces with the exce#tion of Jagric lt ral, ind strial or co((ercial, residential, and resettle(ent lands of the # blic do(ain'J In contrast, the ,4=% !onstit tion barred the alienation of all nat ral reso rces exce#t J# blic agric lt ral lands'J However, the ter( J# blic agric lt ral landsJ in the ,4=% !onstit tion enco(#assed ind strial, co((ercial, residential and resettle(ent lands of the # blic do(ain'>& If the land of # blic do(ain were neither ti(ber nor (ineral land, it wo ld fall nder the classification of agric lt ral land of the # blic do(ain' *oth the &A,9 and &A8, Constitutions, therefore, prohibited the alienation of all natural resources e;cept agricultural lands of the public domain' The ,43= !onstit tion, however, li(ited the alienation of lands of the # blic do(ain to individ als who were citiEens of the $hili##ines' $rivate cor#orations, even if wholly owned by $hili##ine citiEens, were no longer allowed to ac* ire alienable lands of the # blic do(ain nlike in the ,4=% !onstit tion' Section ,,, "rticle MIV of the ,43= !onstit tion declared that W JSec' ,,' The 6atasang $a(bansa, taking into acco nt conservation, ecological, and develo#(ent re* ire(ents of the nat ral reso rces, shall deter(ine by law the siEe of land of the # blic do(ain which (ay be develo#ed, held or ac* ired by, or leased to, any * alified individ al, cor#oration, or association, and the conditions therefor' "o private corporation or association ma! hold alienable lands of the public domain e;cept b! lease not to exceed one tho sand hectares in area nor (ay any citiEen hold s ch lands by lease in excess of five h ndred hectares or ac* ire by # rchase, ho(estead or grant, in excess of twenty8fo r hectares' No #rivate cor#oration or association (ay hold by lease, concession, license or #er(it, ti(ber or forest lands and other ti(ber or forest reso rces in excess of one h ndred tho sand hectares' However, s ch area (ay be

increased by the 6atasang $a(bansa #on reco((endation of the National Bcono(ic and Develo#(ent " thority'J /B(#hasis s ##lied0 Th s, nder the ,43= !onstit tion, #rivate cor#orations co ld hold alienable lands of the # blic do(ain only thro gh lease' Only individ als co ld now ac* ire alienable lands of the # blic do(ain, and private corporations became absolutel! barred from ac6uiring an! +ind of alienable land of the public domain ' The constit tional ban extended to all kinds of alienable lands of the # blic do(ain, while the stat tory ban nder !" No' ,9, a##lied only to govern(ent reclai(ed, foreshore and (arshy alienable lands of the # blic do(ain' PD "o. &C@- Creating the Public 2states uthorit! On )ebr ary 9, ,433, then $resident )erdinand 5arcos iss ed $residential Decree No' ,&H9 creating $B", a wholly govern(ent owned and controlled cor#oration with a s#ecial charter' Sections 9 and H of $D No' ,&H9, vests $B" with the following # r#oses and #owers@ JSec' 9' $ r#ose' The " thority is hereby created for the following # r#oses@ /a0 To reclaim land, including foreshore and submerged areas, b! dredging, filling or other means, or to ac6uire reclaimed landB /b0 To develo#, i(#rove, ac* ire, ad(inister, deal in, s bdivide, dis#ose, lease and sell an! and all +inds of lands , b ildings, estates and other for(s of real #ro#erty, owned, (anaged, controlled and;or o#erated by the govern(ent? /c0 To #rovide for, o#erate or ad(inister s ch service as (ay be necessary for the efficient, econo(ical and beneficial tiliEation of the above #ro#erties' Sec' %' $owers and f nctions of the " thority' The " thority shall, in carrying o t the # r#oses for which it is created, have the following #owers and f nctions@ /a0To #rescribe its by8laws' xxx /i0 To hold lands of the public domain in excess of the area #er(itted to #rivate cor#orations by stat te'

/<0 To reclaim lands and to constr ct work across, or otherwise, any strea(, waterco rse, canal, ditch, fl (e x x x' xxx /o0 To #erfor( s ch acts and exercise s ch f nctions as (ay be necessary for the attain(ent of the # r#oses and ob<ectives herein s#ecified'J /B(#hasis s ##lied0 $D No' ,&H9 a thoriEes $B" to reclai( both foreshore and s b(erged areas of the # blic do(ain' )oreshore areas are those covered and ncovered by the ebb and flow of the tide'>, S b(erged areas are those #er(anently nder water regardless of the ebb and flow of the tide' >1 )oreshore and s b(erged areas indis# tably belong to the # blic do(ain>= and are inalienable nless reclai(ed, classified as alienable lands o#en to dis#osition, and f rther declared no longer needed for # blic service' The ban in the ,43= !onstit tion on #rivate cor#orations fro( ac* iring alienable lands of the # blic do(ain did not a##ly to $B" since it was then, and ntil today, a f lly owned govern(ent cor#oration' The constit tional ban a##lied then, as it still a##lies now, only to J#rivate cor#orations and associations'J $D No' ,&H9 ex#ressly e(#owers P2 ?to hold lands of the public domain J even Jin excess of the area #er(itted to #rivate cor#orations by stat te'J Thus, P2 can hold title to private lands, as 5ell as title to lands of the public domain. In order for $B" to sell its reclai(ed foreshore and s b(erged alienable lands of the # blic do(ain, there ( st be legislative a thority e(#owering $B" to sell these lands' This legislative a thority is necessary in view of Section >& of !" No',9,, which states W JSec' >&' x x x? b t the land so granted, donated or transferred to a #rovince, ( nici#ality, or branch or s bdivision of the :overn(ent shall not be alienated, enc (bered or otherwise dis#osed of in a (anner affecting its title, e;cept 5hen authori<ed b! Congress? x x x'J /B(#hasis s ##lied0 Aitho t s ch legislative a thority, $B" co ld not sell b t only lease its reclai(ed foreshore and s b(erged alienable lands of the # blic do(ain' Nevertheless, any legislative a thority granted to $B" to sell its reclai(ed alienable lands of the # blic do(ain wo ld be s b<ect to the constit tional ban on #rivate cor#orations fro( ac* iring alienable lands of the # blic do(ain' Hence, s ch legislative a thority co ld only benefit #rivate individ als' Dispositions under the &A@8 Constitution

The ,4H3 !onstit tion, like the ,4=% and ,43= !onstit tions before it, has ado#ted the Regalian doctrine' The ,4H3 !onstit tion declares that all nat ral reso rces are Jo5ned b! the State,J and exce#t for alienable agric lt ral lands of the # blic do(ain, nat ral reso rces cannot be alienated' Sections 1 and =, "rticle MII of the ,4H3 !onstit tion state that W JSection 1' "ll lands of the # blic do(ain, waters, (inerals, coal, #etrole ( and other (ineral oils, all forces of #otential energy, fisheries, forests or ti(ber, wildlife, flora and fa na, and other nat ral resources are o5ned b! the State. 1ith the e;ception of agricultural lands, all other natural resources shall not be alienated ' The ex#loration, develo#(ent, and tiliEation of nat ral reso rces shall be nder the f ll control and s #ervision of the State' x x x' Section =' 7ands of the # blic do(ain are classified into agric lt ral, forest or ti(ber, (ineral lands, and national #arks' "gric lt ral lands of the # blic do(ain (ay be f rther classified by law according to the ses which they (ay be devoted' lienable lands of the public domain shall be limited to agricultural lands. Private corporations or associations ma! not hold such alienable lands of the public domain e;cept b! lease, for a period not e;ceeding t5ent!-five !ears, rene5able for not more than t5ent!-five !ears, and not to e;ceed one thousand hectares in area ' !itiEens of the $hili##ines (ay lease not (ore than five h ndred hectares, or ac* ire not (ore than twelve hectares thereof by # rchase, ho(estead, or grant' Taking into acco nt the re* ire(ents of conservation, ecology, and develo#(ent, and s b<ect to the re* ire(ents of agrarian refor(, the !ongress shall deter(ine, by law, the siEe of lands of the # blic do(ain which (ay be ac* ired, develo#ed, held, or leased and the conditions therefor'J /B(#hasis s ##lied0 The ,4H3 !onstit tion contin es the State #olicy in the ,43= !onstit tion banning #rivate cor#orations fro(ac6uiring an! +ind of alienable land of the public domain' 7ike the ,43= !onstit tion, the ,4H3 !onstit tion allows #rivate cor#orations to hold alienable lands of the # blic do(ain onl! through lease' "s in the ,4=% and ,43= !onstit tions, the general law governing the lease to #rivate cor#orations of reclai(ed, foreshore and (arshy alienable lands of the # blic do(ain is still !" No' ,9,' The $ationale behind the Constitutional *an The rationale behind the constit tional ban on cor#orations fro( ac* iring, exce#t thro gh lease, alienable lands of the # blic do(ain is not well nderstood' D ring the deliberations of the ,4H> !onstit tional !o((ission, the co((issioners #robed the rationale behind this ban, th s@

J)R' 6BRN"S@ 5r' Vice8$resident, (y * estions have reference to #age =, line % which says@ XNo #rivate cor#oration or association (ay hold alienable lands of the # blic do(ain exce#t by lease, not to exceed one tho sand hectares in area'I If we recall, this #rovision did not exist nder the ,4=% !onstit tion, b t this was introd ced in the ,43= !onstit tion' In effect, it #rohibits #rivate cor#orations fro( ac* iring alienable # blic lands' *ut it has not been ver! clear in :urisprudence 5hat the reason for this is ' In so(e of the cases decided in ,4H1 and ,4H=, it 5as indicated that the purpose of this is to prevent large landholdings' Is that the intent of this #rovisionL 5R' VI77B:"S@ I think that is the s#irit of the #rovision' )R' 6BRN"S@ In existing decisions involving the Iglesia ni !risto, there were instances where the Iglesia ni !risto was not allowed to ac* ire a (ere =,=8s* are (eter land where a cha#el stood beca se the S #re(e !o rt said it wo ld be in violation of this'J /B(#hasis s ##lied0 In !og v. Cusi,>9 the !o rt ex#lained the rationale behind this constit tional ban in this way@ JIndeed, one # r#ose of the constit tional #rohibition against # rchases of # blic agric lt ral lands by #rivate cor#orations is to e* itably diff se land ownershi# or to enco rage Iowner8c ltivatorshi# and the econo(ic fa(ily8 siEe far(I and to #revent a rec rrence of cases like the instant case' H ge landholdings by cor#orations or #rivate #ersons had s#awned social nrest'J However, if the constit tional intent is to #revent h ge landholdings, the !onstit tion co ld have si(#ly li(ited the siEe of alienable lands of the # blic do(ain that cor#orations co ld ac* ire' The !onstit tion co ld have followed the li(itations on individ als, who co ld ac* ire not (ore than 19 hectares of alienable lands of the # blic do(ain nder the ,43= !onstit tion, and not (ore than ,1 hectares nder the ,4H3 !onstit tion' If the constit tional intent is to enco rage econo(ic fa(ily8siEe far(s, #lacing the land in the na(e of a cor#oration wo ld be (ore effective in #reventing the break8 # of far(lands' If the far(land is registered in the na(e of a cor#oration, #on the death of the owner, his heirs wo ld inherit shares in the cor#oration instead of s bdivided #arcels of the far(land' This wo ld #revent the contin ing break8 # of far(lands into s(aller and s(aller #lots fro( one generation to the next'

In act al #ractice, the constit tional ban strengthens the constit tional li(itation on individ als fro( ac* iring (ore than the allowed area of alienable lands of the # blic do(ain' Aitho t the constit tional ban, individ als who already ac* ired the (axi( ( area of alienable lands of the # blic do(ain co ld easily set # cor#orations to ac* ire (ore alienable # blic lands' "n individ al co ld own as (any cor#orations as his (eans wo ld allow hi(' "n individ al co ld even hide his ownershi# of a cor#oration by # tting his no(inees as stockholders of the cor#oration' The cor#oration is a convenient vehicle to circ (vent the constit tional li(itation on ac* isition by individ als of alienable lands of the # blic do(ain' The constit tional intent, nder the ,43= and ,4H3 !onstit tions, is to transfer ownershi# of only a li(ited area of alienable land of the # blic do(ain to a * alified individ al' This constit tional intent is safeg arded by the #rovision #rohibiting cor#orations fro( ac* iring alienable lands of the # blic do(ain, since the vehicle to circ (vent the constit tional intent is re(oved' The available alienable # blic lands are grad ally decreasing in the face of an ever8growing #o# lation' The (ost effective way to ins re faithf l adherence to this constit tional intent is to grant or sell alienable lands of the # blic do(ain only to individ als' This, it wo ld see(, is the #ractical benefit arising fro( the constit tional ban' The mended Joint 3enture greement The s b<ect (atter of the "(ended DV", as stated in its second Ahereas cla se, consists of three #ro#erties, na(ely@ ,' J+T-hree #artially reclai(ed and s bstantially eroded islands along B(ilio "g inaldo 6o levard in $arana* e and 7as $inas, 5etro 5anila, with a co(bined titled area of ,,%3H,99, s* are (eters?J 1' J+"-nother area of 1,91,,%%4 s* are (eters contig o s to the three islands?J and =' J+"-t "5"RIIs o#tion as a##roved by $B", an additional =%& hectares (ore or less to reg lariEe the config ration of the reclai(ed area'J >% $B" confir(s that the "(ended DV" involves Jthe develo#(ent of the )reedo( Islands and f rther recla(ation of abo t 1%& hectares x x x,J #l s an o#tion Jgranted to "5"RI to s bse* ently reclai( another =%& hectares x x x'J>> In short, the "(ended DV" covers a recla(ation area of 3%& hectares' .nl! &98.@hectares of the 89C-hectare reclamation pro:ect have been reclaimed, and the rest of the 9A).&9 hectares are still submerged areas forming part of (anila *a! '

Gnder the "(ended DV", "5"RI will rei(b rse $B" the s ( of $,,H49,,14,1&&'&& for $B"Is Jact al costJ in #artially reclai(ing the )reedo( Islands' "5"RI will also co(#lete, at its own ex#ense, the recla(ation of the )reedo( Islands' "5"RI will f rther sho lder all the recla(ation costs of all the other areas, totaling %41',% hectares, still to be reclai(ed' "5"RI and $B" will share, in the #ro#ortion of 3& #ercent and =& #ercent, res#ectively, the total net sable area which is defined in the "(ended DV" as the total reclai(ed area less =& #ercent ear(arked for co((on areas' Title to "5"RIIs share in the net sable area, totaling =>3'% hectares, will be iss ed in the na(e of "5"RI' Section %'1 /c0 of the "(ended DV" #rovides that W Jx x x, $B" shall have the d ty to exec te witho t delay the necessary deed of transfer or conveyance of the title #ertaining to "5"RIIs 7and share based on the 7and "llocation $lan' P2 , 5hen re6uested in 5riting b! ( $/, shall then cause the issuance and deliver! of the proper certificates of title covering ( $/=s #and Share in the name of ( $/ , x x x? #rovided, that if (ore than seventy #ercent /3&T0 of the titled area at any given ti(e #ertains to "5"RI, $B" shall deliver to "5"RI only seventy #ercent /3&T0 of the titles #ertaining to "5"RI, ntil s ch ti(e when a corres#onding #ro#ortionate area of additional land #ertaining to $B" has been titled'J /B(#hasis s ##lied0 /ndisputabl!, under the mended J3 ( $/ 5ill ac6uire and o5n a ma;imum of ,78.9 hectares of reclaimed land 5hich 5ill be titled in its name. To i(#le(ent the "(ended DV", $B" delegated to the nincor#orated $B"8 "5"RI <oint vent re $B"Is stat tory a thority, rights and #rivileges to reclai( foreshore and s b(erged areas in 5anila 6ay' Section ='1'a of the "(ended DV" states that W J$B" hereby contrib tes to the <oint vent re its rights and #rivileges to #erfor( Rawland Recla(ation and HoriEontal Develo#(ent as well as own the Recla(ation "rea, thereby granting the Doint Vent re the f ll and excl sive right, a thority and #rivilege to ndertake the $ro<ect in accordance with the 5aster Develo#(ent $lan'J The "(ended DV" is the #rod ct of a renegotiation of the original DV" dated "#ril 1%, ,44% and its s ##le(ental agree(ent dated " g st 4, ,44%' The Threshold /ssue The threshold iss e is whether "5"RI, a #rivate cor#oration, can ac* ire and own nder the "(ended DV" =>3'% hectares of reclai(ed foreshore and s b(erged areas in 5anila 6ay in view of Sections 1 and =, "rticle MII of the ,4H3 !onstit tion which state that@

JSection 1' "ll lands of the # blic do(ain, waters, (inerals, coal, #etrole (, and other (ineral oils, all forces of #otential energy, fisheries, forests or ti(ber, wildlife, flora and fa na, and other nat ral reso rces are owned by the State' 1ith the e;ception of agricultural lands, all other natural resources shall not be alienated' x x x' xxx Section =' x x x "lienable lands of the # blic do(ain shall be li(ited to agric lt ral lands' Private corporations or associations ma! not hold such alienable lands of the public domain e;cept b! lease , x x x'J/B(#hasis s ##lied0 Classification of $eclaimed 4oreshore and Submerged reas $B" readily concedes that lands reclai(ed fro( foreshore or s b(erged areas of 5anila 6ay are alienable or dis#osable lands of the # blic do(ain' In its 5e(orand (,>3 $B" ad(its that W JGnder the $ blic 7and "ct /!" ,9,, as a(ended0, reclaimed lands are classified as alienable and disposable lands of the public domain@ ISec' %4' The lands dis#osable nder this title shall be classified as follows@ /a0 7ands reclai(ed by the govern(ent by dredging, filling, or other (eans? x x x'IJ /B(#hasis s ##lied0 7ikewise, the 7egal Task )orce >H constit ted nder $residential "d(inistrative Order No' =>% ad(itted in its Re#ort and Reco((endation to then $resident )idel V' Ra(os, ?D$Eeclaimed lands are classified as alienable and disposable lands of the public domain'J>4 The 7egal Task )orce concl ded that W JD' !oncl sion Reclai(ed lands are lands of the # blic do(ain' However, by stat tory a thority, the rights of ownershi# and dis#osition over reclai(ed lands have been transferred to $B", by virt e of which $B", as owner, (ay validly convey the sa(e to any * alified #erson witho t violating the !onstit tion or any stat te'

The constit tional #rovision #rohibiting #rivate cor#orations fro( holding # blic land, exce#t by lease /Sec' =, "rt' MVII, 3& ,4H3 !onstit tion0, does not a##ly to reclai(ed lands whose ownershi# has #assed on to $B" by stat tory grant'J Gnder Section 1, "rticle MII of the ,4H3 !onstit tion, the foreshore and s b(erged areas of 5anila 6ay are #art of the Jlands of the # blic do(ain, waters x x x and other nat ral reso rcesJ and conse* ently Jowned by the State'J "s s ch, foreshore and s b(erged areas Jshall not be alienated,J nless they are classified as Jagric lt ral landsJ of the # blic do(ain' The (ere recla(ation of these areas by $B" does not convert these inalienable nat ral reso rces of the State into alienable or dis#osable lands of the # blic do(ain' There ( st be a law or #residential #rocla(ation officially classifying these reclai(ed lands as alienable or dis#osable and o#en to dis#osition or concession' 5oreover, these reclai(ed lands cannot be classified as alienable or dis#osable if the law has reserved the( for so(e # blic or * asi8# blic se'3, Section H of !" No' ,9, #rovides that Jonly those lands shall be declared o#en to dis#osition or concession which have been officiall! delimited and classified 'J31 The $resident has the a thority to classify inalienable lands of the # blic do(ain into alienable or dis#osable lands of the # blic do(ain, # rs ant to Section > of !" No' ,9,' In 7a rel vs' :arcia, 3= the Bxec tive De#art(ent atte(#ted to sell the Ro##ongi #ro#erty in Tokyo, Da#an, which was ac* ired by the $hili##ine :overn(ent for se as the !hancery of the $hili##ine B(bassy' "ltho gh the !hancery had transferred to another location thirteen years earlier, the !o rt still r led that, nder "rticle 91139of the !ivil !ode, a #ro#erty of # blic do(inion retains s ch character ntil for(ally declared otherwise' The !o rt r led that W JThe fact that the Ro##ongi site has not been sed for a long ti(e for act al B(bassy service does not a to(atically convert it to #atri(onial #ro#erty' "ny s ch conversion ha##ens only if the #ro#erty is withdrawn fro( # blic se /!eb Oxygen and "cetylene !o' v' 6ercilles, >> S!R" 9H, +,43%-' propert! continues to be part of the public domain, not available for private appropriation or o5nership =until there is a formal declaration on the part of the government to 5ithdra5 it from being such= /Ignacio v' Director of 7ands, ,&H $hil' ==% +,4>&-'J /B(#hasis s ##lied0 $D No' ,&H%, iss ed on )ebr ary 9, ,433, a thoriEed the iss ance of s#ecial land #atents for lands reclai(ed by $B" fro( the foreshore or s b(erged areas of 5anila 6ay' On Dan ary ,4, ,4HH then $resident !oraEon !' "* ino iss ed S#ecial $atent No' =%,3 in the na(e of $B" for the ,%3'H9 hectares co(#rising the #artially reclai(ed )reedo( Islands' S bse* ently, on "#ril 4, ,444 the Register of Deeds of the 5 nici#ality of $arana* e iss ed T!T Nos' 3=&4, 3=,, and 3=,1 in the na(e of $B" # rs ant to Section ,&= of $D No' ,%14 a thoriEing the iss ance of certificates

of title corres#onding to land #atents' To this day, these certificates of title are still in the na(e of $B"' $D No' ,&H%, co #led with $resident "* inoIs actual issuance of a s#ecial #atent covering the )reedo( Islands, is e* ivalent to an official #rocla(ation classifying the )reedo( Islands as alienable or dis#osable lands of the # blic do(ain' $D No' ,&H% and $resident "* inoIs iss ance of a land #atent also constit te a declaration that the )reedo( Islands are no longer needed for # blic service' The 4reedom /slands are thus alienable or disposable lands of the public domain, open to disposition or concession to 6ualified parties' "t the ti(e then $resident "* ino iss ed S#ecial $atent No' =%,3, $B" had already reclai(ed the )reedo( Islands altho gh s bse* ently there were #artial erosions on so(e areas' The govern(ent had also co(#leted the necessary s rveys on these islands' Th s, the )reedo( Islands were no longer #art of 5anila 6ay b t #art of the land (ass' Section =, "rticle MII of the ,4H3 !onstit tion classifies lands of the # blic do(ain into Jagric lt ral, forest or ti(ber, (ineral lands, and national #arks'J 6eing neither ti(ber, (ineral, nor national #ark lands, the reclai(ed )reedo( Islands necessarily fall nder the classification of agric lt ral lands of the # blic do(ain' Gnder the ,4H3 !onstit tion, agric lt ral lands of the # blic do(ain are the only nat ral reso rces that the State (ay alienate to * alified #rivate #arties' "ll other nat ral reso rces, s ch as the seas or bays, are Jwaters x x x owned by the StateJ for(ing #art of the # blic do(ain, and are inalienable # rs ant to Section 1, "rticle MII of the ,4H3 !onstit tion' "5"RI clai(s that the )reedo( Islands are #rivate lands beca se !D!$, then a #rivate cor#oration, reclai(ed the islands nder a contract dated Nove(ber 1&, ,43= with the !o((issioner of $ blic Highways' "5"RI, citing "rticle % of the S#anish 7aw of Aaters of ,H>>, arg es that Jif the ownershi# of reclai(ed lands (ay be given to the #arty constr cting the works, then it cannot be said that reclai(ed lands are lands of the # blic do(ain which the State (ay not alienate'J 3% "rticle % of the S#anish 7aw of Aaters reads as follows@ J"rticle %' 7ands reclai(ed fro( the sea in conse* ence of works constr cted by the State, or by the #rovinces, # eblos or #rivate #ersons, with proper permission, shall beco(e the #ro#erty of the #arty constr cting s ch works, unless other5ise provided b! the terms of the grant of authorit!'J /B(#hasis s ##lied0 Gnder "rticle % of the S#anish 7aw of Aaters of ,H>>, #rivate #arties co ld reclai( fro( the sea only with J#ro#er #er(issionJ fro( the State' $rivate #arties co ld own the reclai(ed land only if not Jotherwise #rovided by the ter(s of the grant of a thority'J This clearly (eant that no one co ld reclai( fro( the sea witho t #er(ission fro( the State beca se the sea is #ro#erty of # blic do(inion' It also (eant that the State co ld grant or withhold ownershi# of the reclai(ed land beca se

any reclai(ed land, like the sea fro( which it e(erged, belonged to the State' Th s, a #rivate #erson reclai(ing fro( the sea witho t #er(ission fro( the State co ld not ac* ire ownershi# of the reclai(ed land which wo ld re(ain #ro#erty of # blic do(inion like the sea it re#laced' 3> "rticle % of the S#anish 7aw of Aaters of ,H>> ado#ted the ti(e8honored #rinci#le of land ownershi# that Jall lands that were not ac* ired fro( the govern(ent, either by # rchase or by grant, belong to the # blic do(ain'J33 "rticle % of the S#anish 7aw of Aaters ( st be read together with laws s bse* ently enacted on the dis#osition of # blic lands' In #artic lar, !" No' ,9, re* ires that lands of the # blic do(ain ( st first be classified as alienable or dis#osable before the govern(ent can alienate the(' These lands ( st not be reserved for # blic or * asi8# blic # r#oses'3H 5oreover, the contract between !D!$ and the govern(ent was exec ted after the effectivity of the ,43= !onstit tion which barred #rivate cor#orations fro( ac* iring any kind of alienable land of the # blic do(ain' This contract co ld not have converted the )reedo( Islands into #rivate lands of a #rivate cor#oration' $residential Decree No' =8", iss ed on Dan ary ,,, ,43=, revoked all laws a thoriEing the recla(ation of areas nder water and revested solely in the National :overn(ent the #ower to reclai( lands' Section , of $D No' =8" declared that W JThe provisions of an! la5 to the contrar! not5ithstanding , the recla(ation of areas nder water, whether foreshore or inland, shall be limited to the "ational 0overnment or an! person authori<ed b! it under a proper contract' /B(#hasis s ##lied0 x x x'J $D No' =8" re#ealed Section % of the S#anish 7aw of Aaters of ,H>> beca se recla(ation of areas nder water co ld now be ndertaken only by the National :overn(ent or by a #erson contracted by the National :overn(ent' $rivate #arties (ay reclai( fro( the sea only nder a contract with the National :overn(ent, and no longer by grant or #er(ission as #rovided in Section % of the S#anish 7aw of Aaters of ,H>>' Bxec tive Order No' %1%, iss ed on )ebr ary ,9, ,434, designated $B" as the National :overn(entIs i(#le(enting ar( to ndertake Jall recla(ation #ro<ects of the govern(ent,J which Jshall be underta+en b! the P2 or through a proper contract e;ecuted b! it 5ith an! person or entit! 'J Gnder s ch contract, a #rivate #arty receives co(#ensation for recla(ation services rendered to $B"' $ay(ent to the contractor (ay be in cash, or in kind consisting of #ortions of the reclai(ed land, s b<ect to the constit tional ban on #rivate cor#orations fro( ac* iring alienable lands of the # blic do(ain' The reclai(ed land can be sed as #ay(ent in kind only

if the reclai(ed land is first classified as alienable or dis#osable land o#en to dis#osition, and then declared no longer needed for # blic service' The "(ended DV" covers not only the )reedo( Islands, b t also an additional %41',% hectares which are still s b(erged and for(ing #art of 5anila 6ay' There is no legislative or Presidential act classif!ing these submerged areas as alienable or disposable lands of the public domain open to disposition ' These s b(erged areas are not covered by any #atent or certificate of title' There can be no dis# te that these s b(erged areas for( #art of the # blic do(ain, and in their #resent state are inalienable and outside the commerce of man' Gntil reclai(ed fro( the sea, these s b(erged areas are, nder the !onstit tion, Jwaters x x x owned by the State,J for(ing #art of the # blic do(ain and conse* ently inalienable' Only when act ally reclai(ed fro( the sea can these s b(erged areas be classified as # blic agric lt ral lands, which nder the !onstit tion are the only nat ral reso rces that the State (ay alienate' Once reclai(ed and transfor(ed into # blic agric lt ral lands, the govern(ent (ay then officially classify these lands as alienable or dis#osable lands o#en to dis#osition' Thereafter, the govern(ent (ay declare these lands no longer needed for # blic service' Only then can these reclai(ed lands be considered alienable or dis#osable lands of the # blic do(ain and within the co((erce of (an' The classification of $B"Is reclai(ed foreshore and s b(erged lands into alienable or dis#osable lands o#en to dis#osition is necessary beca se $B" is tasked nder its charter to ndertake # blic services that re* ire the se of lands of the # blic do(ain' Gnder Section % of $D No' ,&H9, the f nctions of $B" incl de the following@ J+T-o own or o#erate railroads, tra(ways and other kinds of land trans#ortation, x x x? +T-o constr ct, (aintain and o#erate s ch syste(s of sanitary sewers as (ay be necessary? +T-o constr ct, (aintain and o#erate s ch stor( drains as (ay be necessary'J $B" is e(#owered to iss e Jr les and reg lations as (ay be necessary for the #ro#er se by #rivate #arties of an! or all of the high5a!s, roads, utilities, buildings andFor an! of its properties and to i(#ose or collect fees or tolls for their se'J Th s, #art of the reclai(ed foreshore and s b(erged lands held by the $B" wo ld act ally be needed for # blic se or service since (any of the f nctions i(#osed on $B" by its charter constit te essential # blic services' 5oreover, Section , of Bxec tive Order No' %1% #rovides that $B" Jshall be #ri(arily res#onsible for integrating, directing, and coordinating all recla(ation #ro<ects for and on behalf of the National :overn(ent'J The sa(e section also states that J+"-ll recla(ation #ro<ects shall be a##roved by the $resident #on reco((endation of the $B", and shall be ndertaken by the $B" or thro gh a #ro#er contract exec ted by it with any #erson or entity? x x x'J Th s, nder BO No' %1%, in relation to $D No' =8" and $D No',&H9, $B" beca(e the #ri(ary i(#le(enting agency of the National :overn(ent to reclai( foreshore and s b(erged lands of the # blic do(ain' BO No' %1% recogniEed $B" as the govern(ent entity Jto ndertake the recla(ation of lands and ens re their (axi( ( tiliEation in promoting public 5elfare and interests 'J34 Since large #ortions of these

reclai(ed lands wo ld obvio sly be needed for # blic service, there ( st be a for(al declaration segregating reclai(ed lands no longer needed for # blic service fro( those still needed for # blic service'<Cwphi<.nDt Section = of BO No' %1%, by declaring that all lands reclai(ed by $B" Jshall belong to or be owned by the $B",J co ld not a to(atically o#erate to classify inalienable lands into alienable or dis#osable lands of the # blic do(ain' Otherwise, reclai(ed foreshore and s b(erged lands of the # blic do(ain wo ld a to(atically beco(e alienable once reclai(ed by $B", whether or not classified as alienable or dis#osable' The Revised "d(inistrative !ode of ,4H3, a later law than either $D No' ,&H9 or BO No' %1%, vests in the De#art(ent of Bnviron(ent and Nat ral Reso rces /JDBNRJ for brevity0 the following #owers and f nctions@ JSec' 9' $owers and ) nctions' The De#art(ent shall@ /,0 x x x xxx /90 2;ercise supervision and control over forest lands, alienable and disposable public lands, (ineral reso rces and, in the #rocess of exercising s ch control, i(#ose a##ro#riate taxes, fees, charges, rentals and any s ch for( of levy and collect s ch reven es for the ex#loration, develo#(ent, tiliEation or gathering of s ch reso rces? xxx /,90 Promulgate rules, regulations and guidelines on the issuance of licenses, permits, concessions, lease agreements and such other privileges concerning the development, e;ploration and utili<ation of the countr!=s marine, fresh5ater, and brac+ish 5ater and over all a6uatic resources of the countr! and shall continue to oversee, supervise and police our natural resources? cancel or ca se to cancel s ch #rivileges #on fail re, non8co(#liance or violations of any reg lation, order, and for all other ca ses which are in f rtherance of the conservation of nat ral reso rces and s ##ortive of the national interest? /,%0 2;ercise e;clusive :urisdiction on the management and disposition of all lands of the public domain and serve as the sole agenc! responsible for classification, s b8classification, s rveying and titling of lands in cons ltation with a##ro#riate agencies'JH& /B(#hasis s ##lied0

"s (anager, conservator and overseer of the nat ral reso rces of the State, DBNR exercises Js #ervision and control over alienable and dis#osable # blic lands'J DBNR also exercises Jexcl sive < risdiction on the (anage(ent and dis#osition of all lands of the # blic do(ain'J Th s, DBNR decides whether areas nder water, like foreshore or s b(erged areas of 5anila 6ay, sho ld be reclai(ed or not' This (eans that $B" needs a thoriEation fro( DBNR before $B" can ndertake recla(ation #ro<ects in 5anila 6ay, or in any #art of the co ntry' DBNR also exercises excl sive < risdiction over the dis#osition of all lands of the # blic do(ain' Hence, DBNR decides whether reclai(ed lands of $B" sho ld be classified as alienable nder Sections > H, and 3H1 of !" No' ,9,' Once DBNR decides that the reclai(ed lands sho ld be so classified, it then reco((ends to the $resident the iss ance of a #rocla(ation classifying the lands as alienable or dis#osable lands of the # blic do(ain o#en to dis#osition' Ae note that then DBNR Secretary ) lgencio S' )actoran, Dr' co ntersigned S#ecial $atent No' =%,3 in co(#liance with the Revised "d(inistrative !ode and Sections > and 3 of !" No' ,9,' In short, DBNR is vested with the #ower to a thoriEe the recla(ation of areas nder water, while $B" is vested with the #ower to ndertake the #hysical recla(ation of areas nder water, whether directly or thro gh #rivate contractors' DBNR is also e(#owered to classify lands of the # blic do(ain into alienable or dis#osable lands s b<ect to the a##roval of the $resident' On the other hand, $B" is tasked to develo#, sell or lease the reclai(ed alienable lands of the # blic do(ain' !learly, the (ere #hysical act of recla(ation by $B" of foreshore or s b(erged areas does not (ake the reclai(ed lands alienable or dis#osable lands of the # blic do(ain, ( ch less #atri(onial lands of $B"' 7ikewise, the (ere transfer by the National :overn(ent of lands of the # blic do(ain to $B" does not (ake the lands alienable or dis#osable lands of the # blic do(ain, ( ch less #atri(onial lands of $B"' "bsent two official acts W a classification that these lands are alienable or dis#osable and o#en to dis#osition and a declaration that these lands are not needed for # blic service, lands reclai(ed by $B" re(ain inalienable lands of the # blic do(ain' Only s ch an official classification and for(al declaration can convert reclai(ed lands into alienable or dis#osable lands of the # blic do(ain, o#en to dis#osition nder the !onstit tion, Title I and Title III H=of !" No' ,9, and other a##licable laws'H9 P2 =s uthorit! to Sell $eclaimed #ands $B", like the 7egal Task )orce, arg es that as alienable or dis#osable lands of the # blic do(ain, the reclai(ed lands shall be dis#osed of in accordance with !" No' ,9,, the $ blic 7and "ct' $B", citing Section >& of !" No' ,9,, ad(its that reclai(ed lands transferred to a branch or s bdivision of the govern(ent Jshall not

be alienated, enc (bered, or otherwise dis#osed of in a (anner affecting its title, e;cept 5hen authori<ed b! Congress@ x x x'JH% /B(#hasis by $B"0 In #aurel vs. 0arcia,H> the !o rt cited Section 9H of the Revised "d(inistrative !ode of ,4H3, which states that W JSec' 9H' Official " thoriEed to !onvey Real $ro#erty' Ahenever real #ro#erty of the :overn(ent is authori<ed b! la5 to be conve!ed , the deed of conveyance shall be exec ted in behalf of the govern(ent by the following@ x x x'J Th s, the !o rt concl ded that a law is needed to convey any real #ro#erty belonging to the :overn(ent' The !o rt declared that 8 JIt is not for the $resident to convey real #ro#erty of the govern(ent on his or her own sole will' n! such conve!ance must be authori<ed and approved b! a la5 enacted b! the Congress ' It re* ires exec tive and legislative conc rrence'J /B(#hasis s ##lied0 $B" contends that $D No' ,&H% and BO No' %1% constit te the legislative a thority allowing $B" to sell its reclai(ed lands' $D No' ,&H%, iss ed on )ebr ary 9, ,433, #rovides that W JThe land reclaimed in the foreshore and offshore area of (anila *a! # rs ant to the contract for the recla(ation and constr ction of the 5anila8!avite !oastal Road $ro<ect between the Re# blic of the $hili##ines and the !onstr ction and Develo#(ent !or#oration of the $hili##ines dated Nove(ber 1&, ,43= and;or any other contract or recla(ation covering the sa(e area is hereb! transferred, conve!ed and assigned to the o5nership and administration of the Public 2states uthorit! established # rs ant to $D No' ,&H9? $rovided, however, That the rights and interests of the !onstr ction and Develo#(ent !or#oration of the $hili##ines # rs ant to the aforesaid contract shall be recogniEed and res#ected' Henceforth, the $ blic Bstates " thority shall exercise the rights and ass (e the obligations of the Re# blic of the $hili##ines /De#art(ent of $ blic Highways0 arising fro(, or incident to, the aforesaid contract between the Re# blic of the $hili##ines and the !onstr ction and Develo#(ent !or#oration of the $hili##ines' In consideration of the foregoing transfer and assign(ent, the $ blic Bstates " thority shall iss e in favor of the Re# blic of the $hili##ines the corres#onding shares of stock in said entity with an iss ed val e of said shares of stock /which0 shall be dee(ed f lly #aid and non8assessable'

The Secretary of $ blic Highways and the :eneral 5anager of the $ blic Bstates " thority shall exec te s ch contracts or agree(ents, incl ding a##ro#riate agree(ents with the !onstr ction and Develo#(ent !or#oration of the $hili##ines, as (ay be necessary to i(#le(ent the above' Special land patentFpatents shall be issued b! the Secretar! of "atural $esources in favor of the Public 2states uthorit! 5ithout pre:udice to the subse6uent transfer to the contractor or his assignees of such portion or portions of the land reclaimed or to be reclaimed as provided for in the above-mentioned contract. .n the basis of such patents, the #and $egistration Commission shall issue the corresponding certificate of title'J /B(#hasis s ##lied0 On the other hand, Section = of BO No' %1%, iss ed on )ebr ary ,9, ,434, #rovides that 8 JSec' =' ll lands reclaimed b! P2 shall belong to or be o5ned b! the P2 which shall be res#onsible for its ad(inistration, develo#(ent, tiliEation or dis#osition in accordance with the #rovisions of $residential Decree No' ,&H9' "ny and all inco(e that the $B" (ay derive fro( the sale, lease or se of reclai(ed lands shall be sed in accordance with the #rovisions of $residential Decree No' ,&H9'J There is no ex#ress a thority nder either $D No' ,&H% or BO No' %1% for $B" to sell its reclai(ed lands' $D No' ,&H% (erely transferred Jownershi# and ad(inistrationJ of lands reclai(ed fro( 5anila 6ay to $B", while BO No' %1% declared that lands reclai(ed by $B" Jshall belong to or be owned by $B"'J BO No' %1% ex#ressly states that $B" sho ld dis#ose of its reclai(ed lands Jin accordance with the #rovisions of $residential Decree No' ,&H9,J the charter of $B"' $B"Is charter, however, ex#ressly tasks $B" Jto develo#, i(#rove, ac* ire, ad(inister, deal in, s bdivide, dis#ose, lease and sell an! and all +inds of lands x x x owned, (anaged, controlled and;or o#erated by the govern(ent'J H3 /B(#hasis s ##lied0 There is, therefore, legislative authorit! granted to P2 to sell its lands, 5hether patrimonial or alienable lands of the public domain ' $B" (ay sell to #rivate #arties its patrimonial properties in accordance with the $B" charter free fro( constit tional li(itations' The constit tional ban on #rivate cor#orations fro( ac* iring alienable lands of the # blic do(ain does not a##ly to the sale of $B"Is #atri(onial lands' $B" (ay also sell its alienable or disposable lands of the public domain to #rivate individ als since, with the legislative a thority, there is no longer any stat tory #rohibition against s ch sales and the constit tional ban does not a##ly to individ als' $B", however, cannot sell any of its alienable or dis#osable lands of the

# blic do(ain to #rivate cor#orations since Section =, "rticle MII of the ,4H3 !onstit tion ex#ressly #rohibits s ch sales' The legislative a thority benefits only individ als' $rivate cor#orations re(ain barred fro( ac* iring any kind of alienable land of the # blic do(ain, incl ding govern(ent reclai(ed lands' The #rovision in $D No' ,&H% stating that #ortions of the reclai(ed lands co ld be transferred by $B" to the Jcontractor or his assigneesJ /B(#hasis s ##lied0 wo ld not a##ly to #rivate cor#orations b t only to individ als beca se of the constit tional ban' Otherwise, the #rovisions of $D No' ,&H% wo ld violate both the ,43= and ,4H3 !onstit tions' The re6uirement of public auction in the sale of reclaimed lands "ss (ing the reclai(ed lands of $B" are classified as alienable or dis#osable lands o#en to dis#osition, and f rther declared no longer needed for # blic service, $B" wo ld have to cond ct a # blic bidding in selling or leasing these lands' $B" ( st observe the #rovisions of Sections >= and >3 of !" No' ,9, re* iring # blic a ction, in the absence of a law exe(#ting $B" fro( holding a # blic a ction'HH S#ecial $atent No' =%,3 ex#ressly states that the #atent is iss ed by a thority of the !onstit tion and $D No' ,&H9, Js ##le(ented by !o((onwealth "ct No' ,9,, as a(ended'J This is an acknowledg(ent that the #rovisions of !" No' ,9, a##ly to the dis#osition of reclai(ed alienable lands of the # blic do(ain nless otherwise #rovided by law' Bxec tive Order No' >%9,H4 which a thoriEes $B" Jto deter(ine the kind and (anner of #ay(ent for the transferJ of its assets and #ro#erties, does not exe(#t $B" fro( the re* ire(ent of # blic a ction' BO No' >%9 (erely a thoriEes $B" to decide the (ode of #ay(ent, whether in kind and in install(ent, b t does not a thoriEe $B" to dis#ense with # blic a ction' 5oreover, nder Section 34 of $D No' ,99%, otherwise known as the :overn(ent " diting !ode, the govern(ent is re* ired to sell val able govern(ent #ro#erty thro gh # blic bidding' Section 34 of $D No' ,99% (andates that W JSection 34' 1hen government propert! has beco(e nserviceable for any ca se, or is no longer needed, it shall, #on a##lication of the officer acco ntable therefor, be ins#ected by the head of the agency or his d ly a thoriEed re#resentative in the #resence of the a ditor concerned and, if fo nd to be val eless or nsaleable, it (ay be destroyed in their #resence' /f found to be valuable, it ma! be sold at public auction to the highest bidder nder the s #ervision of the #ro#er co((ittee on award or si(ilar body in the #resence of the a ditor concerned or other a thoriEed re#resentative of the !o((ission, after advertising b! printed notice in the .fficial 0a<ette, or for not less than three consecutive da!s in an! ne5spaper of general circulation, or where the val e of the #ro#erty does not warrant the ex#ense of # blication, by notices #osted for a like #eriod in at least three # blic #laces in the locality where the #ro#erty is to be

sold' /n the event that the public auction fails, the propert! ma! be sold at a private sale at such price as ma! be fi;ed b! the same committee or bod! concerned and approved b! the Commission'J It is only when the # blic a ction fails that a negotiated sale is allowed, in which case the !o((ission on " dit ( st a##rove the selling #rice' 4& The !o((ission on " dit i(#le(ents Section 34 of the :overn(ent " diting !ode thro gh !irc lar No' H4814>4, dated Dan ary 13, ,4H4' This circ lar e(#hasiEes that govern(ent assets ( st be dis#osed of only thro gh # blic a ction, and a negotiated sale can be resorted to only in case of Jfail re of # blic a ction'J "t the # blic a ction sale, only $hili##ine citiEens are * alified to bid for $B"Is reclai(ed foreshore and s b(erged alienable lands of the # blic do(ain' $rivate cor#orations are barred fro( bidding at the a ction sale of any kind of alienable land of the # blic do(ain' $B" originally sched led a # blic bidding for the )reedo( Islands on Dece(ber ,&, ,44,' $B" i(#osed a condition that the winning bidder sho ld reclai( another 1%& hectares of s b(erged areas to reg lariEe the sha#e of the )reedo( Islands, nder a >&89& sharing of the additional reclai(ed areas in favor of the winning bidder' 41No one, however, s b(itted a bid' On Dece(ber 1=, ,449, the :overn(ent !or#orate !o nsel advised $B" it co ld sell the )reedo( Islands thro gh negotiation, witho t need of another # blic bidding, beca se of the fail re of the # blic bidding on Dece(ber ,&, ,44,'4= However, the original DV" dated "#ril 1%, ,44% covered not only the )reedo( Islands and the additional 1%& hectares still to be reclai(ed, it also granted an o#tion to "5"RI to reclai( another =%& hectares' The original DV", a negotiated contract, enlarged the recla(ation area to 89C hectares'49 The fail re of # blic bidding on Dece(ber ,&, ,44,, involving only 9&3'H9 hectares, 4% is not a valid < stification for a negotiated sale of 3%& hectares, al(ost do ble the area # blicly a ctioned' 6esides, the fail re of # blic bidding ha##ened on Dece(ber ,&, ,44,, (ore than three years before the signing of the original DV" on "#ril 1%, ,44%' The econo(ic sit ation in the co ntry had greatly i(#roved d ring the intervening #eriod' $eclamation under the *.T #a5 and the #ocal 0overnment Code The constit tional #rohibition in Section =, "rticle MII of the ,4H3 !onstit tion is absol te and clear@ J$rivate cor#orations or associations (ay not hold s ch alienable lands of the # blic do(ain exce#t by lease, x x x'J Bven Re# blic "ct No' >4%3 /J6OT 7aw,J for brevity0, cited by $B" and "5"RI as legislative a thority to sell reclai(ed lands to #rivate #arties, recogniEes the constit tional ban' Section > of R" No' >4%3 states W

JSec' >' Re#ay(ent Sche(e' 8 )or the financing, constr ction, o#eration and (aintenance of any infrastr ct re #ro<ects ndertaken thro gh the b ild8o#erate8and8transfer arrange(ent or any of its variations # rs ant to the #rovisions of this "ct, the #ro<ect #ro#onent x x x (ay likewise be re#aid in the for( of a share in the reven e of the #ro<ect or other non8 (onetary #ay(ents, s ch as, b t not li(ited to, the grant of a #ortion or #ercentage of the reclai(ed land, sub:ect to the constitutional re6uirements 5ith respect to the o5nership of the land @ x x x'J /B(#hasis s ##lied0 " #rivate cor#oration, even one that ndertakes the #hysical recla(ation of a govern(ent 6OT #ro<ect, cannot ac* ire reclai(ed alienable lands of the # blic do(ain in view of the constit tional ban' Section =&1 of the 7ocal :overn(ent !ode, also (entioned by $B" and "5"RI, a thoriEes local govern(ents in land recla(ation #ro<ects to #ay the contractor or develo#er in kind consisting of a #ercentage of the reclai(ed land, to wit@ JSection =&1' )inancing, !onstr ction, 5aintenance, O#eration, and 5anage(ent of Infrastr ct re $ro<ects by the $rivate Sector' x x x xxx In case of land recla(ation or constr ction of ind strial estates, the re#ay(ent #lan (ay consist of the grant of a #ortion or #ercentage of the reclai(ed land or the ind strial estate constr cted'J "ltho gh Section =&1 of the 7ocal :overn(ent !ode does not contain a #roviso si(ilar to that of the 6OT 7aw, the constit tional restrictions on land ownershi# a to(atically a##ly even tho gh not ex#ressly (entioned in the 7ocal :overn(ent !ode' Th s, nder either the 6OT 7aw or the 7ocal :overn(ent !ode, the contractor or develo#er, if a cor#orate entity, can only be #aid with leaseholds on #ortions of the reclai(ed land' If the contractor or develo#er is an individ al, #ortions of the reclai(ed land, not exceeding ,1 hectares 4> of non8agric lt ral lands, (ay be conveyed to hi( in ownershi# in view of the legislative a thority allowing s ch conveyance' This is the only way these #rovisions of the 6OT 7aw and the 7ocal :overn(ent !ode can avoid a direct collision with Section =, "rticle MII of the ,4H3 !onstit tion' $egistration of lands of the public domain

)inally, $B" theoriEes that the Jact of conveying the ownershi# of the reclai(ed lands to # blic res#ondent $B" transfor(ed s ch lands of the # blic do(ain to #rivate lands'J This theory is echoed by "5"RI which (aintains that the Jiss ance of the s#ecial #atent leading to the event al iss ance of title takes the s b<ect land away fro( the land of # blic do(ain and converts the #ro#erty into #atri(onial or #rivate #ro#erty'J In short, $B" and "5"RI contend that with the iss ance of S#ecial $atent No' =%,3 and the corres#onding certificates of titles, the ,%3'H9 hectares co(#rising the )reedo( Islands have beco(e #rivate lands of $B"' In s ##ort of their theory, $B" and "5"RI cite the following r lings of the !o rt@ ,' #umail v. 'udge o+ C1) o+ Cotabato,43 where the !o rt held W JOnce the #atent was granted and the corres#onding certificate of title was iss ed, the land ceased to be #art of the # blic do(ain and beca(e #rivate #ro#erty over which the Director of 7ands has neither control nor < risdiction'J 1' /ee 7ong 7o6 v. David,4H where the !o rt declared 8 J"fter the registration and iss ance of the certificate and d #licate certificate of title based on a # blic land #atent, the land covered thereby a to(atically co(es nder the o#eration of Re# blic "ct 94> s b<ect to all the safeg ards #rovided therein'J=' 7eirs o+ %regorio (engco v. 7eirs o+ 'ose Aliwalas,44 where the !o rt r led 8 JAhile the Director of 7ands has the #ower to review ho(estead #atents, he (ay do so only so long as the land re(ains #art of the # blic do(ain and contin es to be nder his excl sive control? b t once the #atent is registered and a certificate of title is iss ed, the land ceases to be #art of the # blic do(ain and beco(es #rivate #ro#erty over which the Director of 7ands has neither control nor < risdiction'J 9' Manalo v. )ntermediate Appellate Court,,&& where the !o rt held W JAhen the lots in dis# te were certified as dis#osable on 5ay ,4, ,43,, and free #atents were iss ed covering the sa(e in favor of the #rivate res#ondents, the said lots ceased to be #art of the # blic do(ain and, therefore, the Director of 7ands lost < risdiction over the sa(e'J %'Re# blic v' !o rt of "##eals,,&, where the !o rt stated W J$rocla(ation No' =%&, dated October 4, ,4%>, of $resident 5agsaysay legally effected a land grant to the 5indanao 5edical !enter, 6 rea of 5edical Services, De#art(ent of Health, of the whole lot, validly s fficient

for initial registration nder the 7and Registration "ct' S ch land grant is constit tive of a Ifee si(#leI title or absol te title in favor of #etitioner 5indanao 5edical !enter' Th s, Section ,11 of the "ct, which governs the registration of grants or #atents involving # blic lands, #rovides that IAhenever # blic lands in the $hili##ine Islands belonging to the :overn(ent of the Gnited States or to the :overn(ent of the $hili##ines are alienated, granted or conveyed to #ersons or to # blic or #rivate cor#orations, the sa(e shall be bro ght forthwith nder the o#eration of this "ct /7and Registration "ct, "ct 94>0 and shall beco(e registered lands'IJ The first fo r cases cited involve #etitions to cancel the land #atents and the corres#onding certificates of titlesissued to private parties' These fo r cases nifor(ly hold that the Director of 7ands has no < risdiction over #rivate lands or that #on iss ance of the certificate of title the land a to(atically co(es nder the Torrens Syste(' The fifth case cited involves the registration nder the Torrens Syste( of a ,1'H8hectare # blic land granted by the National :overn(ent to 5indanao 5edical !enter, a govern(ent nit nder the De#art(ent of Health' The National :overn(ent transferred the ,1'H8hectare # blic land to serve as the site for the hos#ital b ildings and other facilities of 5indanao 5edical !enter, which #erfor(ed a # blic service' The !o rt affir(ed the registration of the ,1'H8hectare # blic land in the na(e of 5indanao 5edical !enter nder Section ,11 of "ct No' 94>' This fifth case is an exa(#le of a # blic land being registered nder "ct No' 94> witho t the land losing its character as a #ro#erty of # blic do(inion' In the instant case, the only #atent and certificates of title iss ed are those in the na(e of $B", a wholly govern(ent owned cor#oration #erfor(ing # blic as well as #ro#rietary f nctions' No #atent or certificate of title has been iss ed to any #rivate #arty' No one is asking the Director of 7ands to cancel $B"Is #atent or certificates of title' In fact, the thr st of the instant #etition is that $B"Is certificates of title sho ld re(ain with $B", and the land covered by these certificates, being alienable lands of the # blic do(ain, sho ld not be sold to a #rivate cor#oration' Registration of land nder "ct No' 94> or $D No' ,%14 does not vest in the registrant #rivate or # blic ownershi# of the land' Registration is not a (ode of ac* iring ownershi# b t is (erely evidence of ownershi# #revio sly conferred by any of the recogniEed (odes of ac* iring ownershi#' Registration does not give the registrant a better right than what the registrant had #rior to the registration' ,&1 The registration of lands of the # blic do(ain nder the Torrens syste(, by itself, cannot convert # blic lands into #rivate lands',&= D ris#r dence holding that #on the grant of the #atent or iss ance of the certificate of title the alienable land of the # blic do(ain a to(atically beco(es #rivate land cannot a##ly to govern(ent nits and entities like $B"' The transfer of the )reedo( Islands to $B" was (ade s b<ect to the #rovisions of !" No' ,9, as ex#ressly stated in S#ecial $atent No' =%,3 iss ed by then $resident "* ino, to wit@

JNOA, THBRB)ORB, RNOA CB, that by a thority of the !onstit tion of the $hili##ines and in confor(ity with the #rovisions of $residential Decree No' ,&H9, supplemented b! Common5ealth ct "o. &-&, as amended , there are hereby granted and conveyed nto the $ blic Bstates " thority the aforesaid tracts of land containing a total area of one (illion nine h ndred fifteen tho sand eight h ndred ninety fo r /,,4,%,H490 s* are (eters? the technical descri#tion of which are hereto attached and (ade an integral #art hereof'J /B(#hasis s ##lied0 Th s, the #rovisions of !" No' ,9, a##ly to the )reedo( Islands on (atters not covered by $D No' ,&H9' Section >& of !" No' ,9, #rohibits, Jexce#t when a thoriEed by !ongress,J the sale of alienable lands of the # blic do(ain that are transferred to govern(ent nits or entities' Section >& of !" No' ,9, constit tes, nder Section 99 of $D No' ,%14, a Jstat tory lien affecting titleJ of the registered land even if not annotated on the certificate of title' ,&9"lienable lands of the # blic do(ain held by govern(ent entities nder Section >& of !" No' ,9, re(ain # blic lands beca se they cannot be alienated or enc (bered nless !ongress #asses a law a thoriEing their dis#osition' !ongress, however, cannot a thoriEe the sale to #rivate cor#orations of reclai(ed alienable lands of the # blic do(ain beca se of the constit tional ban' Only individ als can benefit fro( s ch law' The grant of legislative a thority to sell # blic lands in accordance with Section >& of !" No' ,9, does not a to(atically convert alienable lands of the # blic do(ain into #rivate or #atri(onial lands' The alienable lands of the # blic do(ain ( st be transferred to * alified #rivate #arties, or to govern(ent entities not tasked to dis#ose of # blic lands, before these lands can beco(e #rivate or #atri(onial lands' Otherwise, the constit tional ban will beco(e ill sory if !ongress can declare lands of the # blic do(ain as #rivate or #atri(onial lands in the hands of a govern(ent agency tasked to dis#ose of # blic lands' This will allow #rivate cor#orations to ac* ire directly fro( govern(ent agencies li(itless areas of lands which, #rior to s ch law, are concededly # blic lands' Gnder BO No' %1%, $B" beca(e the central implementing agenc! of the National :overn(ent to reclai( foreshore and s b(erged areas of the # blic do(ain' Th s, BO No' %1% declares that W JBMB!GTIVB ORDBR NO' %1% Designating the $ blic Bstates " thority as the "gency $ri(arily Res#onsible for all Recla(ation $ro<ects Ahereas, there are several recla(ation #ro<ects which are ongoing or being #ro#osed to be ndertaken in vario s #arts of the co ntry which need to be eval ated for consistency with national #rogra(s?

Ahereas, there is a need to give f rther instit tional s ##ort to the :overn(entIs declared #olicy to #rovide for a coordinated, econo(ical and efficient recla(ation of lands? Ahereas, $residential Decree No' =8" re* ires that all recla(ation of areas shall be li(ited to the National :overn(ent or any #erson a thoriEed by it nder #ro#er contract? 1hereas, a central authorit! is needed to act on behalf of the "ational 0overnment 5hich shall ensure a coordinated and integrated approach in the reclamation of landsB 1hereas, Presidential Decree "o. &C@- creates the Public 2states uthorit! as a government corporation to underta+e reclamation of lands and ensure their ma;imum utili<ation in promoting public 5elfare and interests? and Ahereas, $residential Decree No' ,9,> #rovides the $resident with contin ing a thority to reorganiEe the national govern(ent incl ding the transfer, abolition, or (erger of f nctions and offices' NOA, THBRB)ORB, I, )BRDIN"ND B' 5"R!OS, $resident of the $hili##ines, by virt e of the #owers vested in (e by the !onstit tion and # rs ant to $residential Decree No' ,9,>, do hereby order and direct the following@ Section ,' The Public 2states uthorit! %P2 ' shall be primaril! responsible for integrating, directing, and coordinating all reclamation pro:ects for and on behalf of the "ational 0overnment ' "ll recla(ation #ro<ects shall be a##roved by the $resident #on reco((endation of the $B", and shall be ndertaken by the $B" or thro gh a #ro#er contract exec ted by it with any #erson or entity? $rovided, that, recla(ation #ro<ects of any national govern(ent agency or entity a thoriEed nder its charter shall be ndertaken in cons ltation with the $B" #on a##roval of the $resident' x x x 'J "s the central i(#le(enting agency tasked to ndertake recla(ation #ro<ects nationwide, with a thority to sell reclai(ed lands, $B" took the #lace of DBNR as the govern(ent agency charged with leasing or selling reclai(ed lands of the # blic do(ain' The reclai(ed lands being leased or sold by $B" are not #rivate lands, in the sa(e (anner that DBNR, when it dis#oses of other alienable lands, does not dis#ose of #rivate lands b t alienable lands of the # blic do(ain' Only when * alified #rivate #arties ac* ire these lands will the lands beco(e #rivate lands' /n

the hands of the government agenc! tas+ed and authori<ed to dispose of alienable of disposable lands of the public domain, these lands are still public, not private lands' ) rther(ore, $B"Is charter ex#ressly states that $B" J shall hold lands of the public domainJ as well as Jany and all kinds of lands'J $B" can hold both lands of the # blic do(ain and #rivate lands' Th s, the (ere fact that alienable lands of the # blic do(ain like the )reedo( Islands are transferred to $B" and iss ed land #atents or certificates of title in $B"Is na(e does not a to(atically (ake s ch lands #rivate' To allow vast areas of reclai(ed lands of the # blic do(ain to be transferred to $B" as #rivate lands will sanction a gross violation of the constit tional ban on #rivate cor#orations fro( ac* iring any kind of alienable land of the # blic do(ain' $B" will si(#ly t rn aro nd, as P2 has no5 done under the mended J3 , and transfer several h ndreds of hectares of these reclai(ed and still to be reclai(ed lands to a single #rivate cor#oration in only one transaction' This sche(e will effectively n llify the constit tional ban in Section =, "rticle MII of the ,4H3 !onstit tion which was intended to diff se e* itably the ownershi# of alienable lands of the # blic do(ain a(ong )ili#inos, now n (bering over H& (illion strong' This sche(e, if allowed, can even be a##lied to alienable agric lt ral lands of the # blic do(ain since $B" can Jac* ire x x x any and all kinds of lands'J This will o#en the floodgates to cor#orations and even individ als ac* iring h ndreds of hectares of alienable lands of the # blic do(ain nder the g ise that in the hands of $B" these lands are #rivate lands' This will res lt in cor#orations a(assing h ge landholdings never before seen in this co ntry 8 creating the very evil that the constit tional ban was designed to #revent' This will co(#letely reverse the clear direction of constit tional develo#(ent in this co ntry' The ,4=% !onstit tion allowed #rivate cor#orations to ac* ire not (ore than ,,&19 hectares of # blic lands',&% The ,43= !onstit tion #rohibited #rivate cor#orations fro( ac* iring any kind of # blic land, and the ,4H3 !onstit tion has ne* ivocally reiterated this #rohibition' The contention of $B" and "5"RI that # blic lands, once registered nder "ct No' 94> or $D No' ,%14, a to(atically beco(e #rivate lands is contrary to existing laws' Several laws a thoriEe lands of the # blic do(ain to be registered nder the Torrens Syste( or "ct No' 94>, now $D No' ,%14, witho t losing their character as # blic lands' Section ,11 of "ct No' 94>, and Section ,&= of $D No' ,%14, res#ectively, #rovide as follows@ "ct No' 94> JSec' ,11' Ahenever # blic lands in the $hili##ine Islands belonging to the x x x :overn(ent of the $hili##ine Islands are alienated, granted, or

conveyed to #ersons or the public or private corporations, the sa(e shall be bro ght forthwith nder the o#eration of this "ct and shall beco(e registered lands'J $D No' ,%14 JSec' ,&=' !ertificate of Title to $atents' Ahenever # blic land is by the :overn(ent alienated, granted or conveyed to an! person, the sa(e shall be bro ght forthwith nder the o#eration of this Decree'J /B(#hasis s ##lied0 6ased on its legislative history, the #hrase Jconveyed to any #ersonJ in Section ,&= of $D No' ,%14 incl des conveyances of # blic lands to # blic cor#orations' "lienable lands of the # blic do(ain Jgranted, donated, or transferred to a #rovince, ( nici#ality, or branch or s bdivision of the :overn(ent,J as #rovided in Section >& of !" No' ,9,, (ay be registered nder the Torrens Syste( # rs ant to Section ,&= of $D No' ,%14' S ch registration, however, is ex#ressly s b<ect to the condition in Section >& of !" No' ,9, that the land Jshall not be alienated, enc (bered or otherwise dis#osed of in a manner affecting its title, e;cept 5hen authori<ed b! Congress'J This #rovision refers to govern(ent reclai(ed, foreshore and (arshy lands of the # blic do(ain that have been titled b t still cannot be alienated or enc (bered nless ex#ressly a thoriEed by !ongress' The need for legislative a thority #revents the registered land of the # blic do(ain fro( beco(ing #rivate land that can be dis#osed of to * alified #rivate #arties' The Revised "d(inistrative !ode of ,4H3 also recogniEes that lands of the # blic do(ain (ay be registered nder the Torrens Syste(' Section 9H, !ha#ter ,1, 6ook I of the !ode states W JSec' 9H' Official " thoriEed to !onvey Real $ro#erty' Ahenever real #ro#erty of the :overn(ent is a thoriEed by law to be conveyed, the deed of conveyance shall be exec ted in behalf of the govern(ent by the following@ /,0 x x x /10 4or propert! belonging to the $epublic of the Philippines, but titled in the name of an! political subdivision or of an! corporate agenc! or instrumentalit!, by the exec tive head of the agency or instr (entality'J /B(#hasis s ##lied0 Th s, #rivate #ro#erty # rchased by the National :overn(ent for ex#ansion of a # blic wharf (ay be titled in the na(e of a govern(ent cor#oration reg lating #ort

o#erations in the co ntry' $rivate #ro#erty # rchased by the National :overn(ent for ex#ansion of an air#ort (ay also be titled in the na(e of the govern(ent agency tasked to ad(inister the air#ort' $rivate #ro#erty donated to a ( nici#ality for se as a town #laEa or # blic school site (ay likewise be titled in the na(e of the ( nici#ality',&> "ll these #ro#erties beco(e #ro#erties of the # blic do(ain, and if already registered nder "ct No' 94> or $D No' ,%14, re(ain registered land' There is no re* ire(ent or #rovision in any existing law for the de8registration of land fro( the Torrens Syste(' $rivate lands taken by the :overn(ent for # blic se nder its #ower of e(inent do(ain beco(e n* estionably #art of the # blic do(ain' Nevertheless, Section H% of $D No' ,%14 a thoriEes the Register of Deeds to iss e in the na(e of the National :overn(ent new certificates of title covering s ch ex#ro#riated lands' Section H% of $D No' ,%14 states W JSec' H%' 7and taken by e(inent do(ain' Ahenever any registered land, or interest therein, is ex#ro#riated or taken by e(inent do(ain, the National :overn(ent, #rovince, city or ( nici#ality, or any other agency or instr (entality exercising s ch right shall file for registration in the #ro#er Registry a certified co#y of the < dg(ent which shall state definitely by an ade* ate descri#tion, the #artic lar #ro#erty or interest ex#ro#riated, the n (ber of the certificate of title, and the nat re of the # blic se' " (e(orand ( of the right or interest taken shall be (ade on each certificate of title by the Register of Deeds, and where the fee si(#le is taken, a ne5 certificate shall be issued in favor of the "ational 0overnment, province, cit!, municipalit!, or any other agency or instr (entality exercising s ch right for the land so taken' The legal ex#enses incident to the (e(orand ( of registration or iss ance of a new certificate of title shall be for the acco nt of the a thority taking the land or interest therein'J /B(#hasis s ##lied0 !onse* ently, lands registered nder "ct No' 94> or $D No' ,%14 are not excl sively #rivate or #atri(onial lands' 7ands of the # blic do(ain (ay also be registered # rs ant to existing laws' "5"RI (akes a #arting shot that the "(ended DV" is not a sale to "5"RI of the )reedo( Islands or of the lands to be reclai(ed fro( s b(erged areas of 5anila 6ay' In the words of "5"RI, the "(ended DV" Jis not a sale b t a <oint vent re with a sti# lation for rei(b rse(ent of the original cost inc rred by $B" for the earlier recla(ation and constr ction works #erfor(ed by the !D!$ nder its ,43= contract with the Re# blic'J Ahether the "(ended DV" is a sale or a <oint vent re, the fact re(ains that the "(ended DV" re* ires $B" to Jca se the iss ance and delivery of the certificates of title conveying "5"RIIs 7and Share in the na(e of "5"RI'J,&3

This sti# lation still contravenes Section =, "rticle MII of the ,4H3 !onstit tion which #rovides that #rivate cor#orations Jshall not hold s ch alienable lands of the # blic do(ain exce#t by lease'J The transfer of title and ownershi# to "5"RI clearly (eans that "5"RI will JholdJ the reclai(ed lands other than by lease' The transfer of title and ownershi# is a Jdis#ositionJ of the reclai(ed lands, a transaction considered a sale or alienation nder !" No' ,9,, ,&H the :overn(ent " diting !ode,,&4 and Section =, "rticle MII of the ,4H3 !onstit tion' The Regalian doctrine is dee#ly i(#lanted in o r legal syste(' )oreshore and s b(erged areas for( #art of the # blic do(ain and are inalienable' 7ands reclai(ed fro( foreshore and s b(erged areas also for( #art of the # blic do(ain and are also inalienable, nless converted # rs ant to law into alienable or dis#osable lands of the # blic do(ain' Historically, lands reclai(ed by the govern(ent are sui generis, not available for sale to #rivate #arties nlike other alienable # blic lands' Reclai(ed lands retain their inherent #otential as areas for # blic se or # blic service' "lienable lands of the # blic do(ain, increasingly beco(ing scarce nat ral reso rces, are to be distrib ted e* itably a(ong o r ever8growing #o# lation' To ins re s ch e* itable distrib tion, the ,43= and ,4H3 !onstit tions have barred #rivate cor#orations fro( ac* iring any kind of alienable land of the # blic do(ain' Those who atte(#t to dis#ose of inalienable nat ral reso rces of the State, or seek to circ (vent the constit tional ban on alienation of lands of the # blic do(ain to #rivate cor#orations, do so at their own risk' Ae can now s ((ariEe o r concl sions as follows@ ,' The ,%3'H9 hectares of reclai(ed lands co(#rising the )reedo( Islands, now covered by certificates of title in the na(e of $B", are alienable lands of the public domain' $B" (ay lease these lands to #rivate cor#orations b t (ay not sell or transfer ownershi# of these lands to #rivate cor#orations' $B" (ay only sell these lands to $hili##ine citiEens, s b<ect to the ownershi# li(itations in the ,4H3 !onstit tion and existing laws' 1' The %41',% hectares of s b(erged areas of 5anila 6ay re(ain inalienable nat ral reso rces of the # blic do(ain ntil classified as alienable or dis#osable lands o#en to dis#osition and declared no longer needed for # blic service' The govern(ent can (ake s ch classification and declaration only after $B" has reclai(ed these s b(erged areas' Only then can these lands * alify as agric lt ral lands of the # blic do(ain, which are the only nat ral reso rces the govern(ent can alienate' In their #resent state, the %41',% hectares of s b(erged areas are inalienable and outside the commerce of man' =' Since the "(ended DV" seeks to transfer to "5"RI, a #rivate cor#oration, ownershi# of 33'=9 hectares,,& of the )reedo( Islands, s ch transfer is void for being contrary to Section =, "rticle MII of the ,4H3

!onstit tion which #rohibits #rivate cor#orations fro( ac* iring any kind of alienable land of the # blic do(ain' 9' Since the "(ended DV" also seeks to transfer to "5"RI ownershi# of 14&',%> hectares,,, of still s b(erged areas of 5anila 6ay, s ch transfer is void for being contrary to Section 1, "rticle MII of the ,4H3 !onstit tion which #rohibits the alienation of nat ral reso rces other than agric lt ral lands of the # blic do(ain' $B" (ay reclai( these s b(erged areas' Thereafter, the govern(ent can classify the reclai(ed lands as alienable or dis#osable, and f rther declare the( no longer needed for # blic service' Still, the transfer of s ch reclai(ed alienable lands of the # blic do(ain to "5"RI will be void in view of Section =, "rticle MII of the ,4H3 !onstit tion which #rohibits #rivate cor#orations fro( ac* iring any kind of alienable land of the # blic do(ain' !learly, the "(ended DV" violates glaringly Sections 1 and =, "rticle MII of the ,4H3 !onstit tion' Gnder "rticle ,9&4,,1 of the !ivil !ode, contracts whose Job<ect or # r#ose is contrary to law,J or whose Job<ect is o tside the co((erce of (en,J are Jinexistent and void fro( the beginning'J The !o rt ( st #erfor( its d ty to defend and #hold the !onstit tion, and therefore declares the "(ended J3 null and void ab initio' Seventh issue: 5hether the Court is the proper forum to raise the issue of 5hether the mended J3 is grossl! disadvantageous to the government. !onsidering that the "(ended DV" is n ll and void ab initio, there is no necessity to r le on this last iss e' 6esides, the !o rt is not a trier of facts, and this last iss e involves a deter(ination of fact al (atters' AHBRB)ORB, the #etition is GRAN#E ' The $ blic Bstates " thority and "(ari !oastal 6ay Develo#(ent !or#oration are PER,ANEN#$Y ENJOINE fro( i(#le(enting the "(ended Doint Vent re "gree(ent which is hereby declared N"$$ and 0OI ab initio' SO ORDBRBD'