Republic of the Philippines

SUPREME COURT
Manila
EN BANC
G.R. No. 133!" #ul$ %& ""
'RANC(SCO (. C)A*E+& petitione,&
-s.
PUB.(C ESTATES AUT)OR(T/ an0 AMAR( COASTA. BA/
1E*E.OPMENT CORPORAT(ON& ,espon0ents.
CARP(O& J.:
This is an o,i2inal Petition fo, Man0a3us 4ith p,a$e, fo, a 4,it of p,eli3ina,$
in5unction an0 a te3po,a,$ ,est,ainin2 o,0e,. The petition see6s to co3pel
the Public Estates Autho,it$ 78PEA8 fo, b,e-it$9 to 0isclose all facts on PEA:s
then on;2oin2 ,ene2otiations 4ith A3a,i Coastal Ba$ an0 1e-elop3ent
Co,po,ation 78AMAR(8 fo, b,e-it$9 to ,eclai3 po,tions of Manila Ba$. The
petition fu,the, see6s to en5oin PEA f,o3 si2nin2 a ne4 a2,ee3ent 4ith
AMAR( in-ol-in2 such ,ecla3ation.
The 'acts
On No-e3be, "& 1%<3& the 2o-e,n3ent& th,ou2h the Co33issione, of
Public )i2h4a$s& si2ne0 a cont,act 4ith the Const,uction an0 1e-elop3ent
Co,po,ation of the Philippines 78C1CP8 fo, b,e-it$9 to ,eclai3 ce,tain
fo,esho,e an0 offsho,e a,eas of Manila Ba$. The cont,act also inclu0e0 the
const,uction of Phases ( an0 (( of the Manila;Ca-ite Coastal Roa0. C1CP
obli2ate0 itself to ca,,$ out all the 4o,6s in consi0e,ation of fift$ pe,cent of the
total ,eclai3e0 lan0.
On 'eb,ua,$ =& 1%<<& then P,esi0ent 'e,0inan0 E. Ma,cos issue0
P,esi0ential 1ec,ee No. 1">= c,eatin2 PEA. P1 No. 1">= tas6e0 PEA 8to
,eclai3 lan0& inclu0in2 fo,esho,e an0 sub3e,2e0 a,eas&8 an0 8to 0e-elop&
i3p,o-e& ac?ui,e& @ @ @ lease an0 sell an$ an0 all 6in0s of lan0s.8
1
On the
sa3e 0ate& then P,esi0ent Ma,cos issue0 P,esi0ential 1ec,ee No. 1">!
t,ansfe,,in2 to PEA the 8lan0s ,eclai3e0 in the fo,esho,e an0 offsho,e of the
Manila Ba$8

un0e, the Manila;Ca-ite Coastal Roa0 an0 Recla3ation P,o5ect

7MCCRRP9.
On 1ece3be, %& 1%>1& then P,esi0ent Ma,cos issue0 a 3e3o,an0u3
0i,ectin2 PEA to a3en0 its cont,act 4ith C1CP& so that 8AABll futu,e 4o,6s in
MCCRRP @ @ @ shall be fun0e0 an0 o4ne0 b$ PEA.8 Acco,0in2l$& PEA an0
C1CP e@ecute0 a Me3o,an0u3 of A2,ee3ent 0ate0 1ece3be, %& 1%>1&
4hich state0C
87i9 C1CP shall un0e,ta6e all ,ecla3ation& const,uction& an0 such othe, 4o,6s
in the MCCRRP as 3a$ be a2,ee0 upon b$ the pa,ties& to be pai0 acco,0in2
to p,o2,ess of 4o,6s on a unit p,iceDlu3p su3 basis fo, ite3s of 4o,6 to be
a2,ee0 upon& sub5ect to p,ice escalation& ,etention an0 othe, te,3s an0
con0itions p,o-i0e0 fo, in P,esi0ential 1ec,ee No. 1!%=. All the financin2
,e?ui,e0 fo, such 4o,6s shall be p,o-i0e0 b$ PEA.
@ @ @
7iii9 @ @ @ C1CP shall 2i-e up all its 0e-elop3ent ,i2hts an0 he,eb$ a2,ees to
ce0e an0 t,ansfe, in fa-o, of PEA& all of the ,i2hts& title& inte,est an0
pa,ticipation of C1CP in an0 to all the a,eas of lan0 ,eclai3e0 b$ C1CP in
the MCCRRP as of 1ece3be, 3"& 1%>1 4hich ha-e not $et been sol0&
t,ansfe,,e0 o, othe,4ise 0ispose0 of b$ C1CP as of sai0 0ate& 4hich a,eas
consist of app,o@i3atel$ Ninet$;Nine Thousan0 'ou, )un0,e0 Se-ent$ Th,ee
7%%&=<39 s?ua,e 3ete,s in the 'inancial Cente, A,ea co-e,e0 b$ lan0 ple02e
No. ! an0 app,o@i3atel$ Th,ee Million Th,ee )un0,e0 Ei2ht$ T4o Thousan0
Ei2ht )un0,e0 Ei2ht$ Ei2ht 73&3>&>>>9 s?ua,e 3ete,s of ,eclai3e0 a,eas at
-a,$in2 ele-ations abo-e Mean .o4 Eate, .e-el locate0 outsi0e the
'inancial Cente, A,ea an0 the 'i,st Nei2hbo,hoo0 Unit.8
3
On #anua,$ 1%& 1%>>& then P,esi0ent Co,aFon C. A?uino issue0 Special
Patent No. 3!1<& 2,antin2 an0 t,ansfe,,in2 to PEA 8the pa,cels of lan0 so
,eclai3e0 un0e, the Manila;Ca-ite Coastal Roa0 an0 Recla3ation P,o5ect
7MCCRRP9 containin2 a total a,ea of one 3illion nine hun0,e0 fifteen
thousan0 ei2ht hun0,e0 ninet$ fou, 71&%1!&>%=9 s?ua,e 3ete,s.8
Subse?uentl$& on Ap,il %& 1%>>& the Re2iste, of 1ee0s of the Municipalit$ of
Pa,aGa?ue issue0 T,ansfe, Ce,tificates of Title Nos. <3"%& <311& an0 <31& in
the na3e of PEA& co-e,in2 the th,ee ,eclai3e0 islan0s 6no4n as the
8',ee0o3 (slan0s8 locate0 at the southe,n po,tion of the Manila;Ca-ite
Coastal Roa0& Pa,aGa?ue Cit$. The ',ee0o3 (slan0s ha-e a total lan0 a,ea
of One Million 'i-e )un0,e0 Se-ent$ Ei2ht Thousan0 'ou, )un0,e0 an0
'o,t$ One 71&!<>&==19 s?ua,e 3ete,s o, 1!<.>=1 hecta,es.
On Ap,il !& 1%%!& PEA ente,e0 into a #oint *entu,e A2,ee3ent 78#*A8 fo,
b,e-it$9 4ith AMAR(& a p,i-ate co,po,ation& to 0e-elop the ',ee0o3 (slan0s.
The #*A also ,e?ui,e0 the ,ecla3ation of an a00itional !" hecta,es of
sub3e,2e0 a,eas su,,oun0in2 these islan0s to co3plete the confi2u,ation in
the Maste, 1e-elop3ent Plan of the Southe,n Recla3ation P,o5ect;
MCCRRP. PEA an0 AMAR( ente,e0 into the #*A th,ou2h ne2otiation 4ithout
public bi00in2.
=
On Ap,il >& 1%%!& the Boa,0 of 1i,ecto,s of PEA& in its
Resolution No. 1=!& confi,3e0 the #*A.
!
On #une >& 1%%!& then P,esi0ent
'i0el *. Ra3os& th,ou2h then E@ecuti-e Sec,eta,$ Ruben To,,es& app,o-e0
the #*A.
H
On No-e3be, %& 1%%H& then Senate P,esi0ent E,nesto Mace0a 0eli-e,e0 a
p,i-ile2e speech in the Senate an0 0enounce0 the #*A as the 82,an03othe,
of all sca3s.8 As a ,esult& the Senate Co33ittee on Go-e,n3ent
Co,po,ations an0 Public Ente,p,ises& an0 the Co33ittee on Accountabilit$ of
Public Office,s an0 (n-esti2ations& con0ucte0 a 5oint in-esti2ation. The
Senate Co33ittees ,epo,te0 the ,esults of thei, in-esti2ation in Senate
Co33ittee Repo,t No. !H" 0ate0 Septe3be, 1H& 1%%<.
<
A3on2 the
conclusions of thei, ,epo,t a,eC 719 the ,eclai3e0 lan0s PEA see6s to t,ansfe,
to AMAR( un0e, the #*A a,e lan0s of the public 0o3ain 4hich the
2o-e,n3ent has not classifie0 as alienable lan0s an0 the,efo,e PEA cannot
alienate these lan0sI 79 the ce,tificates of title co-e,in2 the ',ee0o3 (slan0s
a,e thus -oi0& an0 739 the #*A itself is ille2al.
On 1ece3be, !& 1%%<& then P,esi0ent 'i0el *. Ra3os issue0 P,esi0ential
A03inist,ati-e O,0e, No. 3H! c,eatin2 a .e2al Tas6 'o,ce to con0uct a stu0$
on the le2alit$ of the #*A in -ie4 of Senate Co33ittee Repo,t No. !H". The
3e3be,s of the .e2al Tas6 'o,ce 4e,e the Sec,eta,$ of #ustice&
>
the Chief
P,esi0ential .e2al Counsel&
%
an0 the Go-e,n3ent Co,po,ate Counsel.
1"
The
.e2al Tas6 'o,ce uphel0 the le2alit$ of the #*A& cont,a,$ to the conclusions
,eache0 b$ the Senate Co33ittees.
11
On Ap,il = an0 !& 1%%>& the Philippine Daily Inquirer an0 Today publishe0
,epo,ts that the,e 4e,e on;2oin2 ,ene2otiations bet4een PEA an0 AMAR(
un0e, an o,0e, issue0 b$ then P,esi0ent 'i0el *. Ra3os. Acco,0in2 to these
,epo,ts& PEA 1i,ecto, Nesto, Jala4& PEA Chai,3an A,senio /ulo an0 ,eti,e0
Na-$ Office, Se,2io C,uF co3pose0 the ne2otiatin2 panel of PEA.
On Ap,il 13& 1%%>& Antonio M. +ulueta file0 befo,e the Cou,t a Petition for
Prohibition with Application for the Issuance of a Temporary Restraining
rder and Preliminary In!unction 0oc6ete0 as G.R. No. 13%%= see6in2 to
nullif$ the #*A. The Cou,t 0is3isse0 the petition 8fo, un4a,,ante0 0is,e2a,0
of 5u0icial hie,a,ch$& 4ithout p,e5u0ice to the ,efilin2 of the case befo,e the
p,ope, cou,t.8
1
On Ap,il <& 1%%>& petitione, ',an6 (. Cha-eF 78Petitione,8 fo, b,e-it$9 as a
ta@pa$e,& file0 the instant Petition for "andamus with Prayer for the Issuance
of a #rit of Preliminary In!unction and Temporary Restraining rder.
Petitione, conten0s the 2o-e,n3ent stan0s to lose billions of pesos in the
sale b$ PEA of the ,eclai3e0 lan0s to AMAR(. Petitione, p,a$s that PEA
publicl$ 0isclose the te,3s of an$ ,ene2otiation of the #*A& in-o6in2 Section
>& A,ticle ((& an0 Section <& A,ticle (((& of the 1%>< Constitution on the ,i2ht of
the people to info,3ation on 3atte,s of public conce,n. Petitione, assails the
sale to AMAR( of lan0s of the public 0o3ain as a blatant -iolation of Section
3& A,ticle K(( of the 1%>< Constitution p,ohibitin2 the sale of alienable lan0s of
the public 0o3ain to p,i-ate co,po,ations. 'inall$& petitione, asse,ts that he
see6s to en5oin the loss of billions of pesos in p,ope,ties of the State that a,e
of public 0o3inion.
Afte, se-e,al 3otions fo, e@tension of ti3e&
13
PEA an0 AMAR( file0 thei,
Co33ents on Octobe, 1%& 1%%> an0 #une !& 1%%>& ,especti-el$. Mean4hile&
on 1ece3be, >& 1%%>& petitione, file0 an O3nibus MotionC 7a9 to ,e?ui,e
PEA to sub3it the te,3s of the ,ene2otiate0 PEA;AMAR( cont,actI 7b9 fo,
issuance of a te3po,a,$ ,est,ainin2 o,0e,I an0 7c9 to set the case fo, hea,in2
on o,al a,2u3ent. Petitione, file0 a Reite,ati-e Motion fo, (ssuance of a TRO
0ate0 Ma$ H& 1%%%& 4hich the Cou,t 0enie0 in a Resolution 0ate0 #une &
1%%%.
(n a Resolution 0ate0 Ma,ch 3& 1%%%& the Cou,t 2a-e 0ue cou,se to the
petition an0 ,e?ui,e0 the pa,ties to file thei, ,especti-e 3e3o,an0a.
On Ma,ch 3"& 1%%%& PEA an0 AMAR( si2ne0 the A3en0e0 #oint *entu,e
A2,ee3ent 78A3en0e0 #*A&8 fo, b,e-it$9. On Ma$ >& 1%%%& the Office of the
P,esi0ent un0e, the a03inist,ation of then P,esi0ent #oseph E. Est,a0a
app,o-e0 the A3en0e0 #*A.
1ue to the app,o-al of the A3en0e0 #*A b$ the Office of the P,esi0ent&
petitione, no4 p,a$s that on 8constitutional an0 statuto,$ 2,oun0s the
,ene2otiate0 cont,act be 0ecla,e0 null an0 -oi0.8
1=
The (ssues
The issues ,aise0 b$ petitione,& PEA
1!
an0 AMAR(
1H
a,e as follo4sC
(. E)ET)ER T)E PR(NC(PA. RE.(E'S PRA/E1 'OR (N T)E PET(T(ON
ARE MOOT AN1 ACA1EM(C BECAUSE O' SUBSELUENT E*ENTSI
((. E)ET)ER T)E PET(T(ON MER(TS 1(SM(SSA. 'OR 'A(.(NG TO
OBSER*E T)E PR(NC(P.E GO*ERN(NG T)E )(ERARC)/ O' COURTSI
(((. E)ET)ER T)E PET(T(ON MER(TS 1(SM(SSA. 'OR NON;
EK)AUST(ON O' A1M(N(STRAT(*E REME1(ESI
(*. E)ET)ER PET(T(ONER )AS $%&' 'TA(DI TO BR(NG T)(S SU(TI
*. E)ET)ER T)E CONST(TUT(ONA. R(G)T TO (N'ORMAT(ON
(NC.U1ES O''(C(A. (N'ORMAT(ON ON ON;GO(NG NEGOT(AT(ONS
BE'ORE A '(NA. AGREEMENTI
*(. E)ET)ER T)E ST(PU.AT(ONS (N T)E AMEN1E1 #O(NT *ENTURE
AGREEMENT 'OR T)E TRANS'ER TO AMAR( O' CERTA(N .AN1S&
REC.A(ME1 AN1 ST(.. TO BE REC.A(ME1& *(O.ATE T)E 1%><
CONST(TUT(ONI AN1
*((. E)ET)ER T)E COURT (S T)E PROPER 'ORUM 'OR RA(S(NG T)E
(SSUE O' E)ET)ER T)E AMEN1E1 #O(NT *ENTURE AGREEMENT (S
GROSS./ 1(SA1*ANTAGEOUS TO T)E GO*ERNMENT.
The Cou,t:s Rulin2
)irst issue: whether the principal reliefs prayed for in the petition are moot
and academic because of subsequent e*ents.
The petition p,a$s that PEA publicl$ 0isclose the 8te,3s an0 con0itions of the
on;2oin2 ne2otiations fo, a ne4 a2,ee3ent.8 The petition also p,a$s that the
Cou,t en5oin PEA f,o3 8p,i-atel$ ente,in2 into& pe,fectin2 an0Do, e@ecutin2
an$ ne4 a2,ee3ent 4ith AMAR(.8
PEA an0 AMAR( clai3 the petition is no4 3oot an0 aca0e3ic because
AMAR( fu,nishe0 petitione, on #une 1& 1%%% a cop$ of the si2ne0 A3en0e0
#*A containin2 the te,3s an0 con0itions a2,ee0 upon in the ,ene2otiations.
Thus& PEA has satisfie0 petitione,:s p,a$e, fo, a public 0isclosu,e of the
,ene2otiations. .i6e4ise& petitione,:s p,a$e, to en5oin the si2nin2 of the
A3en0e0 #*A is no4 3oot because PEA an0 AMAR( ha-e al,ea0$ si2ne0
the A3en0e0 #*A on Ma,ch 3"& 1%%%. Mo,eo-e,& the Office of the P,esi0ent
has app,o-e0 the A3en0e0 #*A on Ma$ >& 1%%%.
Petitione, counte,s that PEA an0 AMAR( cannot a-oi0 the constitutional issue
b$ si3pl$ fast;t,ac6in2 the si2nin2 an0 app,o-al of the A3en0e0 #*A befo,e
the Cou,t coul0 act on the issue. P,esi0ential app,o-al 0oes not ,esol-e the
constitutional issue o, ,e3o-e it f,o3 the a3bit of 5u0icial ,e-ie4.
Ee ,ule that the si2nin2 of the A3en0e0 #*A b$ PEA an0 AMAR( an0 its
app,o-al b$ the P,esi0ent cannot ope,ate to 3oot the petition an0 0i-est the
Cou,t of its 5u,is0iction. PEA an0 AMAR( ha-e still to i3ple3ent the A3en0e0
#*A. The p,a$e, to en5oin the si2nin2 of the A3en0e0 #*A on constitutional
2,oun0s necessa,il$ inclu0es p,e-entin2 its i3ple3entation if in the
3eanti3e PEA an0 AMAR( ha-e si2ne0 one in -iolation of the Constitution.
Petitione,:s p,incipal basis in assailin2 the ,ene2otiation of the #*A is its
-iolation of Section 3& A,ticle K(( of the Constitution& 4hich p,ohibits the
2o-e,n3ent f,o3 alienatin2 lan0s of the public 0o3ain to p,i-ate
co,po,ations. (f the A3en0e0 #*A in0ee0 -iolates the Constitution& it is the
0ut$ of the Cou,t to en5oin its i3ple3entation& an0 if al,ea0$ i3ple3ente0& to
annul the effects of such unconstitutional cont,act.
The A3en0e0 #*A is not an o,0ina,$ co33e,cial cont,act but one 4hich
see6s to transfer title and ownership to +,-.. hectares of reclaimed lands
and submerged areas of "anila /ay to a single pri*ate corporation. (t no4
beco3es 3o,e co3pellin2 fo, the Cou,t to ,esol-e the issue to insu,e the
2o-e,n3ent itself 0oes not -iolate a p,o-ision of the Constitution inten0e0 to
safe2ua,0 the national pat,i3on$. Supe,-enin2 e-ents& 4hethe, inten0e0 o,
acci0ental& cannot p,e-ent the Cou,t f,o3 ,en0e,in2 a 0ecision if the,e is a
2,a-e -iolation of the Constitution. (n the instant case& if the A3en0e0 #*A
,uns counte, to the Constitution& the Cou,t can still p,e-ent the t,ansfe, of title
an0 o4ne,ship of alienable lan0s of the public 0o3ain in the na3e of AMAR(.
E-en in cases 4he,e supe,-enin2 e-ents ha0 3a0e the cases 3oot& the
Cou,t 0i0 not hesitate to ,esol-e the le2al o, constitutional issues ,aise0 to
fo,3ulate cont,ollin2 p,inciples to 2ui0e the bench& ba,& an0 the public.
1<
Also& the instant petition is a case of fi,st i3p,ession. All p,e-ious 0ecisions of
the Cou,t in-ol-in2 Section 3& A,ticle K(( of the 1%>< Constitution& o, its
counte,pa,t p,o-ision in the 1%<3 Constitution&
1>
co-e,e0 agricultural
landssol0 to p,i-ate co,po,ations 4hich ac?ui,e0 the lan0s f,o3 p,i-ate
pa,ties. The t,ansfe,o,s of the p,i-ate co,po,ations clai3e0 o, coul0 clai3 the
,i2ht to !udicial confirmation of their imperfect titles
1%
un0e, Title II of
Co33on4ealth Act. 1=1 78CA No. 1=18 fo, b,e-it$9. (n the instant case&
AMAR( see6s to ac?ui,e f,o3 PEA& a public co,po,ation& ,eclai3e0 lan0s an0
sub3e,2e0 a,eas fo, non0agricultural pu,poses b$ purchase un0e, P1 No.
1">= 7cha,te, of PEA9 an0 Title III of CA No. 1=1. Ce,tain un0e,ta6in2s b$
AMAR( un0e, the A3en0e0 #*A constitute the consi0e,ation fo, the
pu,chase. Neithe, AMAR( no, PEA can clai3 5u0icial confi,3ation of thei,
titles because the lan0s co-e,e0 b$ the A3en0e0 #*A a,e ne4l$ ,eclai3e0 o,
still to be ,eclai3e0. #u0icial confi,3ation of i3pe,fect title ,e?ui,es open&
continuous& e@clusi-e an0 noto,ious occupation of a2,icultu,al lan0s of the
public 0o3ain fo, at least thi,t$ $ea,s since #une 1& 1%=! o, ea,lie,. Besi0es&
the 0ea0line fo, filin2 applications fo, 5u0icial confi,3ation of i3pe,fect title
e@pi,e0 on 1ece3be, 31& 1%><.
"
.astl$& the,e is a nee0 to ,esol-e i33e0iatel$ the constitutional issue ,aise0
in this petition because of the possible t,ansfe, at an$ ti3e b$ PEA to AMAR(
of title an0 o4ne,ship to po,tions of the ,eclai3e0 lan0s. Un0e, the A3en0e0
#*A& PEA is obli2ate0 to t,ansfe, to AMAR( the latte,:s se-ent$ pe,cent
p,opo,tionate sha,e in the ,eclai3e0 a,eas as the ,ecla3ation p,o2,esses.
The A3en0e0 #*A e-en allo4s AMAR( to 3o,t2a2e at an$ ti3e
the entire,eclai3e0 a,ea to ,aise financin2 fo, the ,ecla3ation p,o5ect.
1
'econd issue: whether the petition merits dismissal for failing to obser*e the
principle go*erning the hierarchy of courts.
PEA an0 AMAR( clai3 petitione, i2no,e0 the 5u0icial hie,a,ch$ b$ see6in2
,elief 0i,ectl$ f,o3 the Cou,t. The p,inciple of hie,a,ch$ of cou,ts applies
2ene,all$ to cases in-ol-in2 factual ?uestions. As it is not a t,ie, of facts& the
Cou,t cannot ente,tain cases in-ol-in2 factual issues. The instant case&
ho4e-e,& ,aises constitutional issues of t,anscen0ental i3po,tance to the
public.

The Cou,t can ,esol-e this case 4ithout 0ete,3inin2 an$ factual
issue ,elate0 to the case. Also& the instant case is a petition fo, 3an0a3us
4hich falls un0e, the o,i2inal 5u,is0iction of the Cou,t un0e, Section !& A,ticle
*((( of the Constitution. Ee ,esol-e to e@e,cise p,i3a,$ 5u,is0iction o-e, the
instant case.
Third issue: whether the petition merits dismissal for non0e1haustion of
administrati*e remedies.
PEA faults petitione, fo, see6in2 5u0icial inte,-ention in co3pellin2 PEA to
0isclose publicl$ ce,tain info,3ation 4ithout fi,st as6in2 PEA the nee0e0
info,3ation. PEA clai3s petitione,:s 0i,ect ,eso,t to the Cou,t -iolates the
p,inciple of e@haustion of a03inist,ati-e ,e3e0ies. (t also -iolates the ,ule
that 3an0a3us 3a$ issue onl$ if the,e is no othe, plain& spee0$ an0
a0e?uate ,e3e0$ in the o,0ina,$ cou,se of la4.
PEA 0istin2uishes the instant case f,o3 TaGa0a -. Tu-e,a
3
4he,e the Cou,t
2,ante0 the petition fo, 3an0a3us e-en if the petitione,s the,e 0i0 not initiall$
0e3an0 f,o3 the Office of the P,esi0ent the publication of the p,esi0ential
0ec,ees. PEA points out that in TaGa0a& the E@ecuti-e 1epa,t3ent ha0
an affirmati*e statutory 0ut$ un0e, A,ticle of the Ci-il Co0e
=
an0 Section 1
of Co33on4ealth Act No. H3>
!
to publish the p,esi0ential 0ec,ees. The,e
4as& the,efo,e& no nee0 fo, the petitione,s in TaGa0a to 3a6e an initial
0e3an0 f,o3 the Office of the P,esi0ent. (n the instant case& PEA clai3s it
has no affi,3ati-e statuto,$ 0ut$ to 0isclose publicl$ info,3ation about its
,ene2otiation of the #*A. Thus& PEA asse,ts that the Cou,t 3ust appl$ the
p,inciple of e@haustion of a03inist,ati-e ,e3e0ies to the instant case in -ie4
of the failu,e of petitione, he,e to 0e3an0 initiall$ f,o3 PEA the nee0e0
info,3ation.
The o,i2inal #*A sou2ht to 0ispose to AMAR( public lan0s hel0 b$ PEA& a
2o-e,n3ent co,po,ation. Un0e, Section <% of the Go-e,n3ent Au0itin2
Co0e&
H
the 0isposition of 2o-e,n3ent lan0s to p,i-ate pa,ties ,e?ui,es public
bi00in2. P2A was under a positi*e legal duty to disclose to the public the
terms and conditions for the sale of its lands. The la4 obli2ate0 PEA to 3a6e
this public 0isclosu,e e-en 4ithout 0e3an0 f,o3 petitione, o, f,o3 an$one.
PEA faile0 to 3a6e this public 0isclosu,e because the o,i2inal #*A& li6e the
A3en0e0 #*A& 4as the ,esult of a negotiated contract& not of a public
bi00in2. Consi0e,in2 that PEA ha0 an affi,3ati-e statuto,$ 0ut$ to 3a6e the
public 0isclosu,e& an0 4as e-en in b,each of this le2al 0ut$& petitione, ha0
the ,i2ht to see6 0i,ect 5u0icial inte,-ention.
Mo,eo-e,& an0 this alone is 0ete,3inati-e of this issue& the p,inciple of
e@haustion of a03inist,ati-e ,e3e0ies 0oes not appl$ 4hen the issue
in-ol-e0 is a pu,el$ le2al o, constitutional ?uestion.
<
The p,incipal issue in
the instant case is the capacit$ of AMAR( to ac?ui,e lan0s hel0 b$ PEA in
-ie4 of the constitutional ban p,ohibitin2 the alienation of lan0s of the public
0o3ain to p,i-ate co,po,ations. Ee ,ule that the p,inciple of e@haustion of
a03inist,ati-e ,e3e0ies 0oes not appl$ in the instant case.
)ourth issue: whether petitioner has locus standi to bring this suit
PEA a,2ues that petitione, has no stan0in2 to
institute mandamus p,ocee0in2s to enfo,ce his constitutional ,i2ht to
info,3ation 4ithout a sho4in2 that PEA ,efuse0 to pe,fo,3 an affi,3ati-e
0ut$ i3pose0 on PEA b$ the Constitution. PEA also clai3s that petitione, has
not sho4n that he 4ill suffe, an$ conc,ete in5u,$ because of the si2nin2 o,
i3ple3entation of the A3en0e0 #*A. Thus& the,e is no actual cont,o-e,s$
,e?ui,in2 the e@e,cise of the po4e, of 5u0icial ,e-ie4.
The petitione, has stan0in2 to b,in2 this ta@pa$e,:s suit because the petition
see6s to co3pel PEA to co3pl$ 4ith its constitutional 0uties. The,e a,e t4o
constitutional issues in-ol-e0 he,e. 'i,st is the ,i2ht of citiFens to info,3ation
on 3atte,s of public conce,n. Secon0 is the application of a constitutional
p,o-ision inten0e0 to insu,e the e?uitable 0ist,ibution of alienable lan0s of the
public 0o3ain a3on2 'ilipino citiFens. The th,ust of the fi,st issue is to
co3pel PEA to 0isclose publicl$ info,3ation on the sale of 2o-e,n3ent lan0s
4o,th billions of pesos& info,3ation 4hich the Constitution an0 statuto,$ la4
3an0ate PEA to 0isclose. The th,ust of the secon0 issue is to p,e-ent PEA
f,o3 alienatin2 hun0,e0s of hecta,es of alienable lan0s of the public 0o3ain
in -iolation of the Constitution& co3pellin2 PEA to co3pl$ 4ith a constitutional
0ut$ to the nation.
Mo,eo-e,& the petition ,aises 3atte,s of t,anscen0ental i3po,tance to the
public. (n %ha*e3 *. P%44&
>
the Cou,t uphel0 the ,i2ht of a citiFen to b,in2 a
ta@pa$e,:s suit on 3atte,s of t,anscen0ental i3po,tance to the public& thus ;
8Besi0es& petitione, e3phasiFes& the 3atte, of ,eco-e,in2 the ill;2otten 4ealth
of the Ma,coses is an issue of :t,anscen0ental i3po,tance to the public.: )e
asse,ts that o,0ina,$ ta@pa$e,s ha-e a ,i2ht to initiate an0 p,osecute actions
?uestionin2 the -ali0it$ of acts o, o,0e,s of 2o-e,n3ent a2encies o,
inst,u3entalities& if the issues ,aise0 a,e of :pa,a3ount public inte,est&: an0 if
the$ :i33e0iatel$ affect the social& econo3ic an0 3o,al 4ell bein2 of the
people.:
Mo,eo-e,& the 3e,e fact that he is a citiFen satisfies the ,e?ui,e3ent of
pe,sonal inte,est& 4hen the p,ocee0in2 in-ol-es the asse,tion of a public
,i2ht& such as in this case. )e in-o6es se-e,al 0ecisions of this Cou,t 4hich
ha-e set asi0e the p,oce0u,al 3atte, of locus standi& 4hen the sub5ect of the
case in-ol-e0 public inte,est.
@ @ @
(n Ta5ada *. Tu*era& the Cou,t asse,te0 that 4hen the issue conce,ns a
public ,i2ht an0 the ob5ect of 3an0a3us is to obtain the enfo,ce3ent of a
public 0ut$& the people a,e ,e2a,0e0 as the ,eal pa,ties in inte,estI an0
because it is sufficient that petitione, is a citiFen an0 as such is inte,este0 in
the e@ecution of the la4s& he nee0 not sho4 that he has an$ le2al o, special
inte,est in the ,esult of the action. (n the afo,esai0 case& the petitione,s
sou2ht to enfo,ce thei, ,i2ht to be info,3e0 on 3atte,s of public conce,n& a
,i2ht then ,eco2niFe0 in Section H& A,ticle (* of the 1%<3 Constitution& in
connection 4ith the ,ule that la4s in o,0e, to be -ali0 an0 enfo,ceable 3ust
be publishe0 in the Official GaFette o, othe,4ise effecti-el$ p,o3ul2ate0. (n
,ulin2 fo, the petitione,s: le2al stan0in2& the Cou,t 0ecla,e0 that the ,i2ht the$
sou2ht to be enfo,ce0 :is a public ,i2ht ,eco2niFe0 b$ no less than the
fun0a3ental la4 of the lan0.:
$egaspi *. %i*il 'er*ice %ommission& 4hile ,eite,atin2 TaGa0a& fu,the,
0ecla,e0 that :4hen a 3an0a3us p,ocee0in2 in-ol-es the asse,tion of a
public ,i2ht& the ,e?ui,e3ent of pe,sonal inte,est is satisfie0 b$ the 3e,e fact
that petitione, is a citiFen an0& the,efo,e& pa,t of the 2ene,al :public: 4hich
possesses the ,i2ht.:
'u,the,& in Albano *. Reyes& 4e sai0 that 4hile e@pen0itu,e of public fun0s
3a$ not ha-e been in-ol-e0 un0e, the ?uestione0 cont,act fo, the
0e-elop3ent& 3ana2e3ent an0 ope,ation of the Manila (nte,national
Containe, Te,3inal& :public inte,est A4asB 0efinitel$ in-ol-e0 consi0e,in2 the
i3po,tant ,ole Aof the sub5ect cont,actB . . . in the econo3ic 0e-elop3ent of
the count,$ an0 the 3a2nitu0e of the financial consi0e,ation in-ol-e0.: Ee
conclu0e0 that& as a conse?uence& the 0isclosu,e p,o-ision in the
Constitution 4oul0 constitute sufficient autho,it$ fo, uphol0in2 the petitione,:s
stan0in2.
Si3ila,l$& the instant petition is ancho,e0 on the ,i2ht of the people to
info,3ation an0 access to official ,eco,0s& 0ocu3ents an0 pape,s M a ,i2ht
2ua,antee0 un0e, Section <& A,ticle ((( of the 1%>< Constitution. Petitione,& a
fo,3e, solicito, 2ene,al& is a 'ilipino citiFen. Because of the satisfaction of the
t4o basic ,e?uisites lai0 0o4n b$ 0ecisional la4 to sustain petitione,:s le2al
stan0in2& i.e. 719 the enfo,ce3ent of a public ,i2ht 79 espouse0 b$ a 'ilipino
citiFen& 4e ,ule that the petition at ba, shoul0 be allo4e0.8
Ee ,ule that since the instant petition& b,ou2ht b$ a citiFen& in-ol-es the
enfo,ce3ent of constitutional ,i2hts ; to info,3ation an0 to the e?uitable
0iffusion of natu,al ,esou,ces ; 3atte,s of t,anscen0ental public i3po,tance&
the petitione, has the ,e?uisite locus standi.
)ifth issue: whether the constitutional right to information includes official
information on on0going negotiations before a final agreement.
Section <& A,ticle ((( of the Constitution e@plains the people:s ,i2ht to
info,3ation on 3atte,s of public conce,n in this 3anne,C
8Sec. <. The ,i2ht of the people to info,3ation on 3atte,s of public conce,n
shall be ,eco2niFe0. Access to official records6 and to documents6 and
papers pertaining to official acts6 transactions6 or decisions& as 4ell as to
2o-e,n3ent ,esea,ch 0ata use0 as basis fo, polic$ 0e-elop3ent& shall be
affo,0e0 the citiFen& sub5ect to such li3itations as 3a$ be p,o-i0e0 b$ la4.8
7E3phasis supplie09
The State polic$ of full t,anspa,enc$ in all t,ansactions in-ol-in2 public
inte,est ,einfo,ces the people:s ,i2ht to info,3ation on 3atte,s of public
conce,n. This State polic$ is e@p,esse0 in Section >& A,ticle (( of the
Constitution& thusC
8Sec. >. Sub5ect to ,easonable con0itions p,esc,ibe0 b$ la4& the State
a0opts an0 i3ple3ents a policy of full public disclosure of all its transactions
in*ol*ing public interest.8 7E3phasis supplie09
These t4in p,o-isions of the Constitution see6 to p,o3ote t,anspa,enc$ in
polic$;3a6in2 an0 in the ope,ations of the 2o-e,n3ent& as 4ell as p,o-i0e
the people sufficient info,3ation to e@e,cise effecti-el$ othe, constitutional
,i2hts. These t4in p,o-isions a,e essential to the e@e,cise of f,ee0o3 of
e@p,ession. (f the 2o-e,n3ent 0oes not 0isclose its official acts& t,ansactions
an0 0ecisions to citiFens& 4hate-e, citiFens sa$& e-en if e@p,esse0 4ithout
an$ ,est,aint& 4ill be speculati-e an0 a3ount to nothin2. These t4in
p,o-isions a,e also essential to hol0 public officials 8at all ti3es @ @ @
accountable to the people&8
%
fo, unless citiFens ha-e the p,ope, info,3ation&
the$ cannot hol0 public officials accountable fo, an$thin2. A,3e0 4ith the
,i2ht info,3ation& citiFens can pa,ticipate in public 0iscussions lea0in2 to the
fo,3ulation of 2o-e,n3ent policies an0 thei, effecti-e i3ple3entation. An
info,3e0 citiFen,$ is essential to the e@istence an0 p,ope, functionin2 of an$
0e3oc,ac$. As e@plaine0 b$ the Cou,t in7almonte *. /elmonte6 Jr.
3"
N
8An essential ele3ent of these f,ee0o3s is to 6eep open a continuin2
0ialo2ue o, p,ocess of co33unication bet4een the 2o-e,n3ent an0 the
people. (t is in the inte,est of the State that the channels fo, f,ee political
0iscussion be 3aintaine0 to the en0 that the 2o-e,n3ent 3a$ pe,cei-e an0
be ,esponsi-e to the people:s 4ill. /et& this open 0ialo2ue can be effecti-e
onl$ to the e@tent that the citiFen,$ is info,3e0 an0 thus able to fo,3ulate its
4ill intelli2entl$. Onl$ 4hen the pa,ticipants in the 0iscussion a,e a4a,e of the
issues an0 ha-e access to info,3ation ,elatin2 the,eto can such bea, f,uit.8
PEA asse,ts& citin2 %ha*e3 *. P%44&
31
that in cases of on;2oin2 ne2otiations
the ,i2ht to info,3ation is li3ite0 to 80efinite p,opositions of the 2o-e,n3ent.8
PEA 3aintains the ,i2ht 0oes not inclu0e access to 8int,a;a2enc$ o, inte,;
a2enc$ ,eco33en0ations o, co33unications 0u,in2 the sta2e 4hen
co33on asse,tions a,e still in the p,ocess of bein2 fo,3ulate0 o, a,e in the
:e@plo,ato,$ sta2e:.8
Also& AMAR( conten0s that petitione, cannot in-o6e the ,i2ht at the p,e;
0ecisional sta2e o, befo,e the closin2 of the t,ansaction. To suppo,t its
contention& AMAR( cites the follo4in2 0iscussion in the 1%>H Constitutional
Co33issionC
8M,. Sua,eF. An0 4hen 4e sa$ :t,ansactions: 4hich shoul0 be 0istin2uishe0
f,o3 cont,acts& a2,ee3ents& o, t,eaties o, 4hate-e,& 0oes the Gentle3an
,efe, to the steps lea0in2 to the consu33ation of the cont,act& o, 0oes he
,efe, to the cont,act itselfO
M,. OpleC The 8transactions8 used here6 I suppose is generic and therefore6 it
can co*er both steps leading to a contract and already a consummated
contract6 "r. Presiding fficer.
"r. 'uare3: This contemplates inclusion of negotiations leading to the
consummation of the transaction.
"r. ple: 9es6 sub!ect only to reasonable safeguards on the national interest.
"r. 'uare3: Than6 $ou.8
3
7E3phasis supplie09
AMAR( a,2ues the,e 3ust fi,st be a consu33ate0 cont,act befo,e petitione,
can in-o6e the ,i2ht. Re?ui,in2 2o-e,n3ent officials to ,e-eal thei,
0elibe,ations at the p,e;0ecisional sta2e 4ill 0e2,a0e the ?ualit$ of 0ecision;
3a6in2 in 2o-e,n3ent a2encies. Go-e,n3ent officials 4ill hesitate to e@p,ess
thei, ,eal senti3ents 0u,in2 0elibe,ations if the,e is i33e0iate public
0isse3ination of thei, 0iscussions& puttin2 the3 un0e, all 6in0s of p,essu,e
befo,e the$ 0eci0e.
Ee 3ust fi,st 0istin2uish bet4een info,3ation the la4 on public bi00in2
,e?ui,es PEA to 0isclose publicl$& an0 info,3ation the constitutional ,i2ht to
info,3ation ,e?ui,es PEA to ,elease to the public. Befo,e the consu33ation
of the cont,act& PEA 3ust& on its o4n an0 4ithout 0e3an0 f,o3 an$one&
0isclose to the public 3atte,s ,elatin2 to the 0isposition of its p,ope,t$. These
inclu0e the siFe& location& technical 0esc,iption an0 natu,e of the p,ope,t$
bein2 0ispose0 of& the te,3s an0 con0itions of the 0isposition& the pa,ties
?ualifie0 to bi0& the 3ini3u3 p,ice an0 si3ila, info,3ation. PEA 3ust p,epa,e
all these 0ata an0 0isclose the3 to the public at the sta,t of the 0isposition
p,ocess& lon2 befo,e the consu33ation of the cont,act& because the
Go-e,n3ent Au0itin2 Co0e ,e?ui,es public bidding. (f PEA fails to 3a6e this
0isclosu,e& an$ citiFen can 0e3an0 f,o3 PEA this info,3ation at an$ ti3e
0u,in2 the bi00in2 p,ocess.
(nfo,3ation& ho4e-e,& on on0going e*aluation or re*iew of bi0s o, p,oposals
bein2 un0e,ta6en b$ the bi00in2 o, ,e-ie4 co33ittee is not i33e0iatel$
accessible un0e, the ,i2ht to info,3ation. Ehile the e-aluation o, ,e-ie4 is
still on;2oin2& the,e a,e no 8official acts& t,ansactions& o, 0ecisions8 on the
bi0s o, p,oposals. )o4e-e,& once the co33ittee 3a6es its official
recommendation& the,e a,ises a :definite proposition: on the pa,t of the
2o-e,n3ent. ',o3 this 3o3ent& the public:s ,i2ht to info,3ation attaches&
an0 an$ citiFen can access all the non;p,op,ieta,$ info,3ation lea0in2 to such
0efinite p,oposition. (n %ha*e3 *. P%44&
33
the Cou,t ,ule0 as follo4sC
8Consi0e,in2 the intent of the f,a3e,s of the Constitution& 4e belie-e that it is
incu3bent upon the PCGG an0 its office,s& as 4ell as othe, 2o-e,n3ent
,ep,esentati-es& to 0isclose sufficient public info,3ation on an$ p,opose0
settle3ent the$ ha-e 0eci0e0 to ta6e up 4ith the ostensible o4ne,s an0
hol0e,s of ill;2otten 4ealth. Such info,3ation& thou2h& 3ust pe,tain to definite
propositions of the go*ernment& not necessa,il$ to int,a;a2enc$ o, inte,;
a2enc$ ,eco33en0ations o, co33unications 0u,in2 the sta2e 4hen
co33on asse,tions a,e still in the p,ocess of bein2 fo,3ulate0 o, a,e in the
8e@plo,ato,$8 sta2e. The,e is nee0& of cou,se& to obse,-e the sa3e
,est,ictions on 0isclosu,e of info,3ation in 2ene,al& as 0iscusse0 ea,lie, N
such as on 3atte,s in-ol-in2 national secu,it$& 0iplo3atic o, fo,ei2n ,elations&
intelli2ence an0 othe, classifie0 info,3ation.8 7E3phasis supplie09
Cont,a,$ to AMAR(:s contention& the co33issione,s of the 1%>H
Constitutional Co33ission un0e,stoo0 that the ,i2ht to
info,3ation :contemplates inclusion of negotiations leading to the
consummation of the transaction.: Ce,tainl$& a consu33ate0 cont,act is not
a ,e?ui,e3ent fo, the e@e,cise of the ,i2ht to info,3ation. Othe,4ise& the
people can ne-e, e@e,cise the ,i2ht if no cont,act is consu33ate0& an0 if one
is consu33ate0& it 3a$ be too late fo, the public to e@pose its
0efects.;<wphi;.n=t
Re?ui,in2 a consu33ate0 cont,act 4ill 6eep the public in the 0a,6 until the
cont,act& 4hich 3a$ be 2,ossl$ 0isa0-anta2eous to the 2o-e,n3ent o, e-en
ille2al& beco3es a fait accompli. This ne2ates the State polic$ of full
t,anspa,enc$ on 3atte,s of public conce,n& a situation 4hich the f,a3e,s of
the Constitution coul0 not ha-e inten0e0. Such a ,e?ui,e3ent 4ill p,e-ent the
citiFen,$ f,o3 pa,ticipatin2 in the public 0iscussion of an$ proposedcont,act&
effecti-el$ t,uncatin2 a basic ,i2ht ensh,ine0 in the Bill of Ri2hts. Ee can
allo4 neithe, an e3asculation of a constitutional ,i2ht& no, a ,et,eat b$ the
State of its a-o4e0 8polic$ of full 0isclosu,e of all its t,ansactions in-ol-in2
public inte,est.8
The ,i2ht co-e,s th,ee cate2o,ies of info,3ation 4hich a,e 83atte,s of public
conce,n&8 na3el$C 719 official ,eco,0sI 79 0ocu3ents an0 pape,s pe,tainin2 to
official acts& t,ansactions an0 0ecisionsI an0 739 2o-e,n3ent ,esea,ch 0ata
use0 in fo,3ulatin2 policies. The fi,st cate2o,$ ,efe,s to an$ 0ocu3ent that is
pa,t of the public ,eco,0s in the custo0$ of 2o-e,n3ent a2encies o, officials.
The secon0 cate2o,$ ,efe,s to 0ocu3ents an0 pape,s ,eco,0in2& e-i0encin2&
establishin2& confi,3in2& suppo,tin2& 5ustif$in2 o, e@plainin2 official acts&
t,ansactions o, 0ecisions of 2o-e,n3ent a2encies o, officials. The thi,0
cate2o,$ ,efe,s to ,esea,ch 0ata& 4hethe, ,a4& collate0 o, p,ocesse0& o4ne0
b$ the 2o-e,n3ent an0 use0 in fo,3ulatin2 2o-e,n3ent policies.
The info,3ation that petitione, 3a$ access on the ,ene2otiation of the #*A
inclu0es e-aluation ,epo,ts& ,eco33en0ations& le2al an0 e@pe,t opinions&
3inutes of 3eetin2s& te,3s of ,efe,ence an0 othe, 0ocu3ents attache0 to
such ,epo,ts o, 3inutes& all ,elatin2 to the #*A. )o4e-e,& the ,i2ht to
info,3ation 0oes not co3pel PEA to p,epa,e lists& abst,acts& su33a,ies an0
the li6e ,elatin2 to the ,ene2otiation of the #*A.
3=
The ,i2ht onl$ affo,0s
access to ,eco,0s& 0ocu3ents an0 pape,s& 4hich 3eans the oppo,tunit$ to
inspect an0 cop$ the3. One 4ho e@e,cises the ,i2ht 3ust cop$ the ,eco,0s&
0ocu3ents an0 pape,s at his e@pense. The e@e,cise of the ,i2ht is also
sub5ect to ,easonable ,e2ulations to p,otect the inte2,it$ of the public ,eco,0s
an0 to 3ini3iFe 0is,uption to 2o-e,n3ent ope,ations& li6e ,ules specif$in2
4hen an0 ho4 to con0uct the inspection an0 cop$in2.
3!
The ,i2ht to info,3ation& ho4e-e,& 0oes not e@ten0 to 3atte,s ,eco2niFe0 as
p,i-ile2e0 info,3ation un0e, the sepa,ation of po4e,s.
3H
The ,i2ht 0oes not
also appl$ to info,3ation on 3ilita,$ an0 0iplo3atic sec,ets& info,3ation
affectin2 national secu,it$& an0 info,3ation on in-esti2ations of c,i3es b$ la4
enfo,ce3ent a2encies befo,e the p,osecution of the accuse0& 4hich cou,ts
ha-e lon2 ,eco2niFe0 as confi0ential.
3<
The ,i2ht 3a$ also be sub5ect to othe,
li3itations that Con2,ess 3a$ i3pose b$ la4.
The,e is no clai3 b$ PEA that the info,3ation 0e3an0e0 b$ petitione, is
p,i-ile2e0 info,3ation ,oote0 in the sepa,ation of po4e,s. The info,3ation
0oes not co-e, P,esi0ential con-e,sations& co,,espon0ences& o, 0iscussions
0u,in2 close0;0oo, Cabinet 3eetin2s 4hich& li6e inte,nal 0elibe,ations of the
Sup,e3e Cou,t an0 othe, colle2iate cou,ts& o, e@ecuti-e sessions of eithe,
house of Con2,ess&
3>
a,e ,eco2niFe0 as confi0ential. This 6in0 of info,3ation
cannot be p,ie0 open b$ a co;e?ual b,anch of 2o-e,n3ent. A f,an6 e@chan2e
of e@plo,ato,$ i0eas an0 assess3ents& f,ee f,o3 the 2la,e of publicit$ an0
p,essu,e b$ inte,este0 pa,ties& is essential to p,otect the in0epen0ence of
0ecision;3a6in2 of those tas6e0 to e@e,cise P,esi0ential& .e2islati-e an0
#u0icial po4e,.
3%
This is not the situation in the instant case.
Ee ,ule& the,efo,e& that the constitutional ,i2ht to info,3ation inclu0es official
info,3ation on on0going negotiations befo,e a final cont,act. The info,3ation&
ho4e-e,& 3ust constitute 0efinite p,opositions b$ the 2o-e,n3ent an0 shoul0
not co-e, ,eco2niFe0 e@ceptions li6e p,i-ile2e0 info,3ation& 3ilita,$ an0
0iplo3atic sec,ets an0 si3ila, 3atte,s affectin2 national secu,it$ an0 public
o,0e,.
="
Con2,ess has also p,esc,ibe0 othe, li3itations on the ,i2ht to
info,3ation in se-e,al le2islations.
=1
'i1th issue: whether stipulations in the Amended J7A for the transfer to
A"ARI of lands6 reclaimed or to be reclaimed6 *iolate the %onstitution.
The Regalian Doctrine
The o4ne,ship of lan0s ,eclai3e0 f,o3 fo,esho,e an0 sub3e,2e0 a,eas is
,oote0 in the Re2alian 0oct,ine 4hich hol0s that the State o4ns all lan0s an0
4ate,s of the public 0o3ain. Upon the Spanish con?uest of the Philippines&
o4ne,ship of all 8lan0s& te,,ito,ies an0 possessions8 in the Philippines passe0
to the Spanish C,o4n.
=
The Jin2& as the so-e,ei2n ,ule, an0 ,ep,esentati-e
of the people& ac?ui,e0 an0 o4ne0 all lan0s an0 te,,ito,ies in the Philippines
e@cept those he 0ispose0 of b$ 2,ant o, sale to p,i-ate in0i-i0uals.
The 1%3!& 1%<3 an0 1%>< Constitutions a0opte0 the Re2alian 0oct,ine
substitutin2& ho4e-e,& the State& in lieu of the Jin2& as the o4ne, of all lan0s
an0 4ate,s of the public 0o3ain. The Re2alian 0oct,ine is the foun0ation of
the ti3e;hono,e0 p,inciple of lan0 o4ne,ship that 8all lan0s that 4e,e not
ac?ui,e0 f,o3 the Go-e,n3ent& eithe, b$ pu,chase o, b$ 2,ant& belon2 to the
public 0o3ain.8
=3
A,ticle 33% of the Ci-il Co0e of 1>>%& 4hich is no4 A,ticle
=" of the Ci-il Co0e of 1%!"& inco,po,ate0 the Re2alian 0oct,ine.
wnership and Disposition of Reclaimed $ands
The Spanish .a4 of Eate,s of 1>HH 4as the fi,st statuto,$ la4 2o-e,nin2 the
o4ne,ship an0 0isposition of ,eclai3e0 lan0s in the Philippines. On Ma$ 1>&
1%"<& the Philippine Co33ission enacte0 Act No. 1H!= 4hich p,o-i0e0 for
the lease6 but not the sale6 of reclaimed lands of the go*ernment to
corporations and indi*iduals. .ate,& on No-e3be, %& 1%1%& the Philippine
.e2islatu,e app,o-e0 Act No. ><=& the Public .an0 Act& 4hich
autho,iFe0 the lease6 but not the sale6 of reclaimed lands of the go*ernment
to corporations and indi*iduals. On No-e3be, <& 1%3H& the National
Asse3bl$ passe0 Co33on4ealth Act No. 1=1& also 6no4n as the Public
.an0 Act& 4hich authori3ed the lease6 but not the sale6 of reclaimed lands of
the go*ernment to corporations and indi*iduals. CA No. 1=1 continues to this
0a$ as the 2ene,al la4 2o-e,nin2 the classification an0 0isposition of lan0s of
the public 0o3ain.
The 'panish $aw of #aters of ;>,, and the %i*il %ode of ;>>?
Un0e, the Spanish .a4 of Eate,s of 1>HH& the sho,es& ba$s& co-es& inlets
an0 all 4ate,s 4ithin the 3a,iti3e Fone of the Spanish te,,ito,$ belon2e0 to
the public 0o3ain fo, public use.
==
The Spanish .a4 of Eate,s of 1>HH
allo4e0 the ,ecla3ation of the sea un0e, A,ticle !& 4hich p,o-i0e0 as follo4sC
8A,ticle !. .an0s ,eclai3e0 f,o3 the sea in conse?uence of 4o,6s
const,ucte0 b$ the State& o, b$ the p,o-inces& pueblos o, p,i-ate pe,sons&
4ith p,ope, pe,3ission& shall beco3e the p,ope,t$ of the pa,t$ const,uctin2
such 4o,6s& unless othe,4ise p,o-i0e0 b$ the te,3s of the 2,ant of autho,it$.8
Un0e, the Spanish .a4 of Eate,s& lan0 ,eclai3e0 f,o3 the sea belon2e0 to
the pa,t$ un0e,ta6in2 the ,ecla3ation& p,o-i0e0 the 2o-e,n3ent issue0 the
necessa,$ pe,3it an0 0i0 not ,ese,-e o4ne,ship of the ,eclai3e0 lan0 to the
State.
A,ticle 33% of the Ci-il Co0e of 1>>% 0efine0 p,ope,t$ of public 0o3inion as
follo4sC
8A,t. 33%. P,ope,t$ of public 0o3inion is N
1. That 0e-ote0 to public use& such as ,oa0s& canals& ,i-e,s& to,,ents& po,ts
an0 b,i02es const,ucte0 b$ the State& ,i-e,ban6s& sho,es& ,oa0stea0s& an0
that of a si3ila, cha,acte,I
. That belon2in2 e@clusi-el$ to the State 4hich& 4ithout bein2 of 2ene,al
public use& is e3plo$e0 in so3e public se,-ice& o, in the 0e-elop3ent of the
national 4ealth& such as 4alls& fo,t,esses& an0 othe, 4o,6s fo, the 0efense of
the te,,ito,$& an0 3ines& until 2,ante0 to p,i-ate in0i-i0uals.8
P,ope,t$ 0e-ote0 to public use ,efe,,e0 to p,ope,t$ open fo, use b$ the
public. (n cont,ast& p,ope,t$ 0e-ote0 to public se,-ice ,efe,,e0 to p,ope,t$
use0 fo, so3e specific public se,-ice an0 open onl$ to those autho,iFe0 to
use the p,ope,t$.
P,ope,t$ of public 0o3inion ,efe,,e0 not onl$ to p,ope,t$ 0e-ote0 to public
use& but also to p,ope,t$ not so use0 but e3plo$e0 to de*elop the national
wealth. This class of p,ope,t$ constitute0 p,ope,t$ of public 0o3inion
althou2h e3plo$e0 fo, so3e econo3ic o, co33e,cial acti-it$ to inc,ease the
national 4ealth.
A,ticle 3=1 of the Ci-il Co0e of 1>>% 2o-e,ne0 the ,e;classification of
p,ope,t$ of public 0o3inion into p,i-ate p,ope,t$& to 4itC
8A,t. 3=1. P,ope,t$ of public 0o3inion& 4hen no lon2e, 0e-ote0 to public use
o, to the 0efense of the te,,ito,$& shall beco3e a pa,t of the p,i-ate p,ope,t$
of the State.8
This p,o-ision& ho4e-e,& 4as not self;e@ecutin2. The le2islatu,e& o, the
e@ecuti-e 0epa,t3ent pu,suant to la4& 3ust 0ecla,e the p,ope,t$ no lon2e,
nee0e0 fo, public use o, te,,ito,ial 0efense befo,e the 2o-e,n3ent coul0
lease o, alienate the p,ope,t$ to p,i-ate pa,ties.
=!
Act (o. ;,.@ of the Philippine %ommission
On Ma$ >& 1%"<& the Philippine Co33ission enacte0 Act No. 1H!= 4hich
,e2ulate0 the lease of ,eclai3e0 an0 fo,esho,e lan0s. The salient p,o-isions
of this la4 4e,e as follo4sC
8Section 1. The control and disposition of the foreshore as 0efine0 in e@istin2
la4& an0 the title to all 4o*ernment or public lands made or reclaimed by the
4o*ernment by dredging or filling o, othe,4ise th,ou2hout the Philippine
(slan0s& shall be retained by the 4o*ernment 4ithout p,e5u0ice to -este0
,i2hts an0 4ithout p,e5u0ice to ,i2hts conce0e0 to the Cit$ of Manila in the
.uneta E@tension.
Section . 7a9 The Sec,eta,$ of the (nte,io, shall cause all Go-e,n3ent o,
public lan0s 3a0e o, ,eclai3e0 b$ the Go-e,n3ent b$ 0,e02in2 o, fillin2 o,
othe,4ise to be 0i-i0e0 into lots o, bloc6s& 4ith the necessa,$ st,eets an0
alle$4a$s locate0 the,eon& an0 shall cause plats an0 plans of such su,-e$s
to be p,epa,e0 an0 file0 4ith the Bu,eau of .an0s.
7b9 Upon co3pletion of such plats an0 plans the 4o*ernor04eneral shall gi*e
notice to the public that such parts of the lands so made or reclaimed as are
not needed for public purposes will be leased for commercial and business
purposes& @ @ @.
@ @ @
7e9 The leases abo*e pro*ided for shall be disposed of to the highest and
best bidder the,efo,e& sub5ect to such ,e2ulations an0 safe2ua,0s as the
Go-e,no,;Gene,al 3a$ b$ e@ecuti-e o,0e, p,esc,ibe.8 7E3phasis supplie09
Act No. 1H!= 3an0ate0 that the go*ernment should retain title to all lands
reclaimed by the go*ernment. The Act also -este0 in the 2o-e,n3ent cont,ol
an0 0isposition of fo,esho,e lan0s. P,i-ate pa,ties coul0 lease lan0s
,eclai3e0 b$ the 2o-e,n3ent onl$ if these lan0s 4e,e no lon2e, nee0e0 fo,
public pu,pose. Act No. 1H!= 3an0ate0 public bidding in the lease of
2o-e,n3ent ,eclai3e0 lan0s. Act No. 1H!= 3a0e 2o-e,n3ent ,eclai3e0
lan0s sui generis in that unli6e othe, public lan0s 4hich the 2o-e,n3ent
coul0 sell to p,i-ate pa,ties& these ,eclai3e0 lan0s 4e,e a-ailable onl$ fo,
lease to p,i-ate pa,ties.
Act No. 1H!=& ho4e-e,& 0i0 not ,epeal Section ! of the Spanish .a4 of
Eate,s of 1>HH. Act No. 1H!= 0i0 not p,ohibit p,i-ate pa,ties f,o3 ,eclai3in2
pa,ts of the sea un0e, Section ! of the Spanish .a4 of Eate,s. .an0s
,eclai3e0 f,o3 the sea b$ p,i-ate pa,ties 4ith 2o-e,n3ent pe,3ission
,e3aine0 p,i-ate lan0s.
Act (o. A>-@ of the Philippine $egislature
On No-e3be, %& 1%1%& the Philippine .e2islatu,e enacte0 Act No. ><=& the
Public .an0 Act.
=H
The salient p,o-isions of Act No. ><=& on ,eclai3e0 lan0s&
4e,e as follo4sC
8Sec. H. The 4o*ernor04eneral6 upon the recommendation of the 'ecretary
of Agriculture and (atural Resources6 shall from time to time classify the
lands of the public domain into N
7a9 Alienable or disposable&
7b9 Ti3be,& an0
7c9 Mine,al lan0s& @ @ @.
Sec. <. 'o, the pu,poses of the 2o-e,n3ent an0 0isposition of alienable o,
0isposable public lan0s& the 4o*ernor04eneral6 upon recommendation by the
'ecretary of Agriculture and (atural Resources6 shall from time to time
declare what lands are open to disposition or concession under this Act.8
Sec. >. nly those lands shall be declared open to disposition or concession
which ha*e been officially delimited or classified @ @ @.
@ @ @
Sec. !!. An$ t,act of lan0 of the public 0o3ain 4hich& bein2 neithe, ti3be,
no, 3ine,al lan0& shall be classifie0 as suitable for residential purposes or for
commercial6 industrial6 or other producti*e purposes other than agricultural
purposes& an0 shall be open to 0isposition o, concession& shall be 0ispose0
of un0e, the p,o-isions of this chapte,& an0 not othe,4ise.
Sec. !H. The lands disposable under this title shall be classified as followsC
BaC $ands reclaimed by the 4o*ernment by dredging6 filling6 or other meansI
BbC )oreshoreD
BcC "arshy lands o, lan0s co-e,e0 4ith 4ate, bo,0e,in2 upon the sho,es o,
ban6s of na-i2able la6es o, ,i-e,sI
709 .an0s not inclu0e0 in an$ of the fo,e2oin2 classes.
@ @ @.
Sec. !>. The lands comprised in classes BaC6 BbC6 and BcC of section fifty0si1
shall be disposed of to pri*ate parties by lease only and not otherwise& as
soon as the 4o*ernor04eneral6 upon recommendation by the 'ecretary of
Agriculture and (atural Resources6 shall declare that the same are not
necessary for the public ser*ice and are open to disposition un0e, this
chapte,. The lands included in class BdC may be disposed of by sale or lease
under the pro*isions of this Act.8 7E3phasis supplie09
Section H of Act No. ><= autho,iFe0 the Go-e,no,;Gene,al to 8classif$ lan0s
of the public 0o3ain into @ @ @ alienable o, 0isposable8
=<
lan0s. Section < of
the Act e3po4e,e0 the Go-e,no,;Gene,al to 80ecla,e 4hat lan0s a,e open to
0isposition o, concession.8 Section > of the Act li3ite0 alienable o,
0isposable lan0s onl$ to those lan0s 4hich ha-e been 8officiall$ 0eli3ite0
an0 classifie0.8
Section !H of Act No. ><= state0 that lan0s 80isposable un0e, this
title
=>
shall be classifie08 as 2o-e,n3ent ,eclai3e0& fo,esho,e an0 3a,sh$
lan0s& as 4ell as othe, lan0s. All these lan0s& ho4e-e,& 3ust be suitable fo,
,esi0ential& co33e,cial& in0ust,ial o, othe, p,o0ucti-e non0
agricultural pu,poses. These p,o-isions -este0 upon the Go-e,no,;Gene,al
the po4e, to classif$ inalienable lan0s of the public 0o3ain into 0isposable
lan0s of the public 0o3ain. These p,o-isions also e3po4e,e0 the Go-e,no,;
Gene,al to classif$ fu,the, such 0isposable lan0s of the public 0o3ain into
2o-e,n3ent ,eclai3e0& fo,esho,e o, 3a,sh$ lan0s of the public 0o3ain& as
4ell as othe, non;a2,icultu,al lan0s.
Section !> of Act No. ><= cate2o,icall$ 3an0ate0 that 0isposable lan0s of
the public 0o3ain classifie0 as 2o-e,n3ent ,eclai3e0& fo,esho,e an0 3a,sh$
lan0s :shall be disposed of to pri*ate parties by lease only and not
otherwise.: The Go-e,no,;Gene,al& befo,e allo4in2 the lease of these lan0s
to p,i-ate pa,ties& 3ust fo,3all$ 0ecla,e that the lan0s 4e,e 8not necessa,$
fo, the public se,-ice.8 Act No. ><= ,eite,ate0 the State polic$ to lease an0
not to sell 2o-e,n3ent ,eclai3e0& fo,esho,e an0 3a,sh$ lan0s of the public
0o3ain& a polic$ fi,st enunciate0 in 1%"< in Act No. 1H!=. Go-e,n3ent
,eclai3e0& fo,esho,e an0 3a,sh$ lan0s ,e3aine0 sui generis& as the onl$
alienable o, 0isposable lan0s of the public 0o3ain that the 2o-e,n3ent coul0
not sell to p,i-ate pa,ties.
The ,ationale behin0 this State polic$ is ob-ious. Go-e,n3ent ,eclai3e0&
fo,esho,e an0 3a,sh$ public lan0s fo, non;a2,icultu,al pu,poses ,etain thei,
inhe,ent potential as a,eas fo, public se,-ice. This is the ,eason the
2o-e,n3ent p,ohibite0 the sale& an0 onl$ allo4e0 the lease& of these lan0s to
p,i-ate pa,ties. The State al4a$s ,ese,-e0 these lan0s fo, so3e futu,e public
se,-ice.
Act No. ><= 0i0 not autho,iFe the ,eclassification of 2o-e,n3ent ,eclai3e0&
fo,esho,e an0 3a,sh$ lan0s into othe, non;a2,icultu,al lan0s un0e, Section
!H 709. .an0s fallin2 un0e, Section !H 709 4e,e the onl$ lan0s fo, non;
a2,icultu,al pu,poses the 2o-e,n3ent coul0 sell to p,i-ate pa,ties. Thus&
un0e, Act No. ><=& the 2o-e,n3ent coul0 not sell 2o-e,n3ent ,eclai3e0&
fo,esho,e an0 3a,sh$ lan0s to p,i-ate pa,ties6 unless the legislature passed
a law allowing their sale.
=%
Act No. ><= 0i0 not p,ohibit p,i-ate pa,ties f,o3 ,eclai3in2 pa,ts of the sea
pu,suant to Section ! of the Spanish .a4 of Eate,s of 1>HH. .an0s
,eclai3e0 f,o3 the sea b$ p,i-ate pa,ties 4ith 2o-e,n3ent pe,3ission
,e3aine0 p,i-ate lan0s.
Dispositions under the ;?+. %onstitution
On Ma$ 1=& 1%3!& the 1%3! Constitution too6 effect upon its ,atification b$ the
'ilipino people. The 1%3! Constitution& in a0optin2 the Re2alian 0oct,ine&
0ecla,e0 in Section 1& A,ticle K(((& that N
8Section 1. All a2,icultu,al& ti3be,& an0 3ine,al lan0s of the public 0o3ain&
4ate,s& 3ine,als& coal& pet,oleu3& an0 othe, 3ine,al oils& all fo,ces of
potential ene,2$ an0 othe, natu,al ,esou,ces of the Philippines belon2 to the
State& an0 thei, 0isposition& e@ploitation& 0e-elop3ent& o, utiliFation shall be
li3ite0 to citiFens of the Philippines o, to co,po,ations o, associations at least
si@t$ pe, centu3 of the capital of 4hich is o4ne0 b$ such citiFens& sub5ect to
an$ e@istin2 ,i2ht& 2,ant& lease& o, concession at the ti3e of the inau2u,ation
of the Go-e,n3ent establishe0 un0e, this Constitution. (atural resources6
with the e1ception of public agricultural land6 shall not be alienated& an0 no
license& concession& o, lease fo, the e@ploitation& 0e-elop3ent& o, utiliFation
of an$ of the natu,al ,esou,ces shall be 2,ante0 fo, a pe,io0 e@cee0in2
t4ent$;fi-e $ea,s& ,ene4able fo, anothe, t4ent$;fi-e $ea,s& e@cept as to
4ate, ,i2hts fo, i,,i2ation& 4ate, suppl$& fishe,ies& o, in0ust,ial uses othe, than
the 0e-elop3ent of 4ate, po4e,& in 4hich cases beneficial use 3a$ be the
3easu,e an0 li3it of the 2,ant.8 7E3phasis supplie09
The 1%3! Constitution ba,,e0 the alienation of all natu,al ,esou,ces e@cept
public a2,icultu,al lan0s& 4hich 4e,e the onl$ natu,al ,esou,ces the State
coul0 alienate. Thus& fo,esho,e lan0s& consi0e,e0 pa,t of the State:s natu,al
,esou,ces& beca3e inalienable b$ constitutional fiat& a-ailable onl$ fo, lease
fo, ! $ea,s& ,ene4able fo, anothe, ! $ea,s. The 2o-e,n3ent coul0 alienate
fo,esho,e lan0s onl$ afte, these lan0s 4e,e ,eclai3e0 an0 classifie0 as
alienable a2,icultu,al lan0s of the public 0o3ain. Go-e,n3ent ,eclai3e0 an0
3a,sh$ lan0s of the public 0o3ain& bein2 neithe, ti3be, no, 3ine,al lan0s&
fell un0e, the classification of public a2,icultu,al lan0s.
!"
)o4e-e,&
2o-e,n3ent ,eclai3e0 an0 3a,sh$ lan0s& althou2h sub5ect to classification
as 0isposable public a2,icultu,al lan0s& coul0 onl$ be lease0 an0 not sol0 to
p,i-ate pa,ties because of Act No. ><=.
The p,ohibition on p,i-ate pa,ties f,o3 ac?ui,in2 o4ne,ship of 2o-e,n3ent
,eclai3e0 an0 3a,sh$ lan0s of the public 0o3ain 4as onl$ a statuto,$
p,ohibition an0 the le2islatu,e coul0 the,efo,e ,e3o-e such p,ohibition. The
1%3! Constitution 0i0 not p,ohibit in0i-i0uals an0 co,po,ations f,o3 ac?ui,in2
2o-e,n3ent ,eclai3e0 an0 3a,sh$ lan0s of the public 0o3ain that 4e,e
classifie0 as a2,icultu,al lan0s un0e, e@istin2 public lan0 la4s. Section &
A,ticle K((( of the 1%3! Constitution p,o-i0e0 as follo4sC
8Section . (o pri*ate corporation or association may acquire6 lease6 or hold
public agricultural lands in e1cess of one thousand and twenty four hectares6
nor may any indi*idual acquire such lands by purchase in e1cess of one
hundred and forty hectares6 or by lease in e1cess of one thousand and
twenty0four hectares& o, b$ ho3estea0 in e@cess of t4ent$;fou, hecta,es.
.an0s a0apte0 to 2,aFin2& not e@cee0in2 t4o thousan0 hecta,es& 3a$ be
lease0 to an in0i-i0ual& p,i-ate co,po,ation& o, association.8 7E3phasis
supplie09
Still& afte, the effecti-it$ of the 1%3! Constitution& the le2islatu,e 0i0 not
,epeal Section !> of Act No. ><= to open fo, sale to p,i-ate pa,ties
2o-e,n3ent ,eclai3e0 an0 3a,sh$ lan0s of the public 0o3ain. On the
cont,a,$& the le2islatu,e continue0 the lon2 establishe0 State polic$ of
,etainin2 fo, the 2o-e,n3ent title an0 o4ne,ship of 2o-e,n3ent ,eclai3e0
an0 3a,sh$ lan0s of the public 0o3ain.
%ommonwealth Act (o. ;@; of the Philippine (ational Assembly
On No-e3be, <& 1%3H& the National Asse3bl$ app,o-e0 Co33on4ealth Act
No. 1=1& also 6no4n as the Public .an0 Act& 4hich co3pile0 the then e@istin2
la4s on lan0s of the public 0o3ain. CA No. 1=1& as a3en0e0& ,e3ains to this
0a$ the e1isting general law 2o-e,nin2 the classification an0 0isposition of
lan0s of the public 0o3ain othe, than ti3be, an0 3ine,al lan0s.
!1
Section H of CA No. 1=1 e3po4e,s the P,esi0ent to classif$ lan0s of the
public 0o3ain into 8alienable o, 0isposable8
!
lan0s of the public 0o3ain&
4hich p,io, to such classification a,e inalienable an0 outsi0e the co33e,ce
of 3an. Section < of CA No. 1=1 autho,iFes the P,esi0ent to 80ecla,e 4hat
lan0s a,e open to 0isposition o, concession.8 Section > of CA No. 1=1 states
that the 2o-e,n3ent can 0ecla,e open fo, 0isposition o, concession onl$
lan0s that a,e 8officiall$ 0eli3ite0 an0 classifie0.8 Sections H& < an0 > of CA
No. 1=1 ,ea0 as follo4sC
8Sec. H. The President6 upon the recommendation of the 'ecretary of
Agriculture and %ommerce6 shall from time to time classify the lands of the
public domain into N
BaC Alienable or disposable&
7b9 Ti3be,& an0
7c9 Mine,al lan0s&
an0 3a$ at an$ ti3e an0 in li6e 3anne, t,ansfe, such lan0s f,o3 one class to
anothe,&
!3
fo, the pu,pose of thei, a03inist,ation an0 0isposition.
Sec. <. 'o, the pu,poses of the a03inist,ation an0 0isposition of alienable o,
0isposable public lan0s& the President6 upon recommendation by the
'ecretary of Agriculture and %ommerce6 shall from time to time declare what
lands are open to disposition or concession un0e, this Act.
Sec. >. nly those lands shall be declared open to disposition or concession
which ha*e been officially delimited and classified an0& 4hen p,acticable&
su,-e$e0& and which ha*e not been reser*ed for public or quasi0public uses&
no, app,op,iate0 b$ the Go-e,n3ent& no, in an$ 3anne, beco3e p,i-ate
p,ope,t$& no, those on 4hich a p,i-ate ,i2ht autho,iFe0 an0 ,eco2niFe0 b$ this
Act o, an$ othe, -ali0 la4 3a$ be clai3e0& o, 4hich& ha-in2 been ,ese,-e0 o,
app,op,iate0& ha-e cease0 to be so. @ @ @.8
Thus& befo,e the 2o-e,n3ent coul0 alienate o, 0ispose of lan0s of the public
0o3ain& the P,esi0ent 3ust fi,st officiall$ classif$ these lan0s as alienable o,
0isposable& an0 then 0ecla,e the3 open to 0isposition o, concession. The,e
3ust be no la4 ,ese,-in2 these lan0s fo, public o, ?uasi;public uses.
The salient p,o-isions of CA No. 1=1& on 2o-e,n3ent ,eclai3e0& fo,esho,e
an0 3a,sh$ lan0s of the public 0o3ain& a,e as follo4sC
8Sec. !>. Any tract of land of the public domain which6 being neither timber
nor mineral land6 is intended to be used for residential purposes or for
commercial6 industrial6 or other producti*e purposes other than agricultural6
and is open to disposition or concession6 shall be disposed of under the
pro*isions of this chapter and not otherwise.
Sec. !%. The lands disposable under this title shall be classified as followsC
BaC $ands reclaimed by the 4o*ernment by dredging6 filling6 or other meansD
BbC )oreshoreD
BcC "arshy lands o, lan0s co-e,e0 4ith 4ate, bo,0e,in2 upon the sho,es o,
ban6s of na-i2able la6es o, ,i-e,sI
709 .an0s not inclu0e0 in an$ of the fo,e2oin2 classes.
Sec. H". An$ t,act of lan0 co3p,ise0 un0e, this title 3a$ be lease0 o, sol0& as
the case 3a$ be& to an$ pe,son& co,po,ation& o, association autho,iFe0 to
pu,chase o, lease public lan0s fo, a2,icultu,al pu,poses. @ @ @.
Sec. H1. The lands comprised in classes BaC6 BbC6 and BcC of section fifty0nine
shall be disposed of to pri*ate parties by lease only and not otherwise& as
soon as the President& upon ,eco33en0ation b$ the Sec,eta,$ of
A2,icultu,e& shall declare that the same are not necessary for the public
ser*ice an0 a,e open to 0isposition un0e, this chapte,. The lands included in
class BdC may be disposed of by sale or lease under the pro*isions of this
Act.8 7E3phasis supplie09
Section H1 of CA No. 1=1 ,ea0opte0& afte, the effecti-it$ of the 1%3!
Constitution& Section !> of Act No. ><= p,ohibitin2 the sale of 2o-e,n3ent
,eclai3e0& fo,esho,e an0 3a,sh$ 0isposable lan0s of the public 0o3ain. All
these lan0s a,e inten0e0 fo, ,esi0ential& co33e,cial& in0ust,ial o, othe, non;
a2,icultu,al pu,poses. As befo,e& Section H1 allo4e0 onl$ the lease of such
lan0s to p,i-ate pa,ties. The 2o-e,n3ent coul0 sell to p,i-ate pa,ties onl$
lan0s fallin2 un0e, Section !% 709 of CA No. 1=1& o, those lan0s fo, non;
a2,icultu,al pu,poses not classifie0 as 2o-e,n3ent ,eclai3e0& fo,esho,e an0
3a,sh$ 0isposable lan0s of the public 0o3ain. 'o,esho,e lan0s& ho4e-e,&
beca3e inalienable un0e, the 1%3! Constitution 4hich onl$ allo4e0 the lease
of these lan0s to ?ualifie0 p,i-ate pa,ties.
Section !> of CA No. 1=1 e@p,essl$ states that 0isposable lan0s of the public
0o3ain inten0e0 fo, ,esi0ential& co33e,cial& in0ust,ial o, othe, p,o0ucti-e
pu,poses othe, than a2,icultu,al 8shall be disposed of under the pro*isions of
this chapter and not otherwise.8 Un0e, Section 1" of CA No. 1=1& the te,3
80isposition8 inclu0es lease of the lan0. An$ 0isposition of 2o-e,n3ent
,eclai3e0& fo,esho,e an0 3a,sh$ 0isposable lan0s fo, non;a2,icultu,al
pu,poses 3ust co3pl$ 4ith Chapte, (K& Title ((( of CA No. 1=1&
!=
unless a
subse?uent la4 a3en0e0 o, ,epeale0 these p,o-isions.
(n his concu,,in2 opinion in the lan03a,6 case of Republic Real 2state
%orporation *. %ourt of Appeals&
!!
#ustice Re$nato S. Puno su33a,iFe0
succinctl$ the la4 on this 3atte,& as follo4sC
8'o,esho,e lan0s a,e lan0s of public 0o3inion inten0e0 fo, public use. So too
a,e lan0s ,eclai3e0 b$ the 2o-e,n3ent b$ 0,e02in2& fillin2& o, othe, 3eans.
Act 1H!= 3an0ate0 that the cont,ol an0 0isposition of the fo,esho,e an0
lan0s un0e, 4ate, ,e3aine0 in the national 2o-e,n3ent. Sai0 la4 allo4e0
onl$ the :leasin2: of ,eclai3e0 lan0. The Public .an0 Acts of 1%1% an0 1%3H
also 0ecla,e0 that the fo,esho,e an0 lan0s ,eclai3e0 b$ the 2o-e,n3ent
4e,e to be 80ispose0 of to p,i-ate pa,ties b$ lease onl$ an0 not othe,4ise.8
Befo,e leasin2& ho4e-e,& the Go-e,no,;Gene,al& upon ,eco33en0ation of
the Sec,eta,$ of A2,icultu,e an0 Natu,al Resou,ces& ha0 fi,st to 0ete,3ine
that the lan0 ,eclai3e0 4as not necessa,$ fo, the public se,-ice. This
,e?uisite 3ust ha-e been 3et befo,e the lan0 coul0 be 0ispose0 of. /ut e*en
then6 the foreshore and lands under water were not to be alienated and sold
to pri*ate parties. The disposition of the reclaimed land was only by lease.
The land remained property of the 'tate.8 7E3phasis supplie09
As obse,-e0 b$ #ustice Puno in his concu,,in2 opinion& 8Co33on4ealth Act
No. 1=1 has ,e3aine0 in effect at p,esent.8
The State polic$ p,ohibitin2 the sale to p,i-ate pa,ties of 2o-e,n3ent
,eclai3e0& fo,esho,e an0 3a,sh$ alienable lan0s of the public 0o3ain& fi,st
i3ple3ente0 in 1%"< 4as thus ,eaffi,3e0 in CA No. 1=1 afte, the 1%3!
Constitution too6 effect. The p,ohibition on the sale of fo,esho,e lan0s&
ho4e-e,& beca3e a constitutional e0ict un0e, the 1%3! Constitution.
'o,esho,e lan0s beca3e inalienable as natu,al ,esou,ces of the State&
unless ,eclai3e0 b$ the 2o-e,n3ent an0 classifie0 as a2,icultu,al lan0s of
the public 0o3ain& in 4hich case the$ 4oul0 fall un0e, the classification of
2o-e,n3ent ,eclai3e0 lan0s.
Afte, the effecti-it$ of the 1%3! Constitution& 2o-e,n3ent ,eclai3e0 an0
3a,sh$ 0isposable lan0s of the public 0o3ain continue0 to be onl$ lease0
an0 not sol0 to p,i-ate pa,ties.
!H
These lan0s ,e3aine0 sui generis& as the
onl$ alienable o, 0isposable lan0s of the public 0o3ain the 2o-e,n3ent coul0
not sell to p,i-ate pa,ties.
Since then an0 until no4& the onl$ 4a$ the 2o-e,n3ent can sell to p,i-ate
pa,ties 2o-e,n3ent ,eclai3e0 an0 3a,sh$ 0isposable lan0s of the public
0o3ain is fo, the le2islatu,e to pass a la4 autho,iFin2 such sale. CA No. 1=1
0oes not autho,iFe the P,esi0ent to ,eclassif$ 2o-e,n3ent ,eclai3e0 an0
3a,sh$ lan0s into othe, non;a2,icultu,al lan0s un0e, Section !% 709. .an0s
classifie0 un0e, Section !% 709 a,e the onl$ alienable o, 0isposable lan0s fo,
non;a2,icultu,al pu,poses that the 2o-e,n3ent coul0 sell to p,i-ate pa,ties.
Mo,eo-e,& Section H" of CA No. 1=1 e1pressly ,e?ui,es con2,essional
autho,it$ befo,e lan0s un0e, Section !% that the 2o-e,n3ent p,e-iousl$
t,ansfe,,e0 to 2o-e,n3ent units o, entities coul0 be sol0 to p,i-ate pa,ties.
Section H" of CA No. 1=1 0ecla,es that N
8Sec. H". @ @ @ The a,ea so lease0 o, sol0 shall be such as shall& in the
5u023ent of the Sec,eta,$ of A2,icultu,e an0 Natu,al Resou,ces& be
,easonabl$ necessa,$ fo, the pu,poses fo, 4hich such sale o, lease is
,e?ueste0& an0 shall not e@cee0 one hun0,e0 an0 fo,t$;fou, hecta,esC
P,o-i0e0& ho4e-e,& That this li3itation shall not appl$ to 2,ants& 0onations& o,
t,ansfe,s 3a0e to a p,o-ince& 3unicipalit$ o, b,anch o, sub0i-ision of the
Go-e,n3ent fo, the pu,poses 0ee3e0 b$ sai0 entities con0uci-e to the
public inte,estIbut the land so granted6 donated6 or transferred to a pro*ince6
municipality or branch or subdi*ision of the 4o*ernment shall not be
alienated6 encumbered6 or otherwise disposed of in a manner affecting its
title6 e1cept when authori3ed by %ongressC @ @ @.8 7E3phasis supplie09
The con2,essional autho,it$ ,e?ui,e0 in Section H" of CA No. 1=1 3i,,o,s the
le2islati-e autho,it$ ,e?ui,e0 in Section !H of Act No. ><=.
One ,eason fo, the con2,essional autho,it$ is that Section H" of CA No. 1=1
e@e3pte0 2o-e,n3ent units an0 entities f,o3 the 3a@i3u3 a,ea of public
lan0s that coul0 be ac?ui,e0 f,o3 the State. These 2o-e,n3ent units an0
entities shoul0 not 5ust tu,n a,oun0 an0 sell these lan0s to p,i-ate pa,ties in
-iolation of constitutional o, statuto,$ li3itations. Othe,4ise& the t,ansfe, of
lan0s fo, non;a2,icultu,al pu,poses to 2o-e,n3ent units an0 entities coul0 be
use0 to ci,cu3-ent constitutional li3itations on o4ne,ship of alienable o,
0isposable lan0s of the public 0o3ain. (n the sa3e 3anne,& such t,ansfe,s
coul0 also be use0 to e-a0e the statuto,$ p,ohibition in CA No. 1=1 on the
sale of 2o-e,n3ent ,eclai3e0 an0 3a,sh$ lan0s of the public 0o3ain to
p,i-ate pa,ties. Section H" of CA No. 1=1 constitutes b$ ope,ation of la4 a
lien on these lan0s.
!<
(n case of sale or lease of 0isposable lan0s of the public 0o3ain fallin2 un0e,
Section !% of CA No. 1=1& Sections H3 an0 H< ,e?ui,e a public bi00in2.
Sections H3 an0 H< of CA No. 1=1 p,o-i0e as follo4sC
8Sec. H3. Ehene-e, it is 0eci0e0 that lan0s co-e,e0 b$ this chapte, a,e not
nee0e0 fo, public pu,poses& the 1i,ecto, of .an0s shall as6 the Sec,eta,$ of
A2,icultu,e an0 Co33e,ce 7no4 the Sec,eta,$ of Natu,al Resou,ces9 fo,
autho,it$ to 0ispose of the sa3e. Upon ,eceipt of such autho,it$& the 1i,ecto,
of .an0s shall 2i-e notice b$ public a0-e,tise3ent in the sa3e 3anne, as in
the case of leases o, sales of a2,icultu,al public lan0& @ @ @.
Sec. H<. The lease or sale shall be made by oral biddingD and ad!udication
shall be made to the highest bidder. @ @ @.8 7E3phasis supplie09
Thus& CA No. 1=1 3an0ates the Go-e,n3ent to put to public auction all
leases o, sales of alienable o, 0isposable lan0s of the public 0o3ain.
!>
.i6e Act No. 1H!= an0 Act No. ><= befo,e it& CA No. 1=1 0i0 not ,epeal
Section ! of the Spanish .a4 of Eate,s of 1>HH. P,i-ate pa,ties coul0 still
,eclai3 po,tions of the sea 4ith 2o-e,n3ent pe,3ission. )o4e-e,&
the reclaimed land could become pri*ate land only if classified as alienable
agricultural land of the public domain open to 0isposition un0e, CA No. 1=1.
The 1%3! Constitution p,ohibite0 the alienation of all natu,al ,esou,ces
e@cept public a2,icultu,al lan0s.
The %i*il %ode of ;?.E
The Ci-il Co0e of 1%!" ,ea0opte0 substantiall$ the 0efinition of p,ope,t$ of
public 0o3inion foun0 in the Ci-il Co0e of 1>>%. A,ticles =" an0 = of the
Ci-il Co0e of 1%!" state that N
8A,t. =". The follo4in2 thin2s a,e p,ope,t$ of public 0o3inionC
719 Those inten0e0 fo, public use& such as ,oa0s& canals& ,i-e,s& to,,ents&
po,ts an0 b,i02es const,ucte0 b$ the State& ban6s& sho,es& ,oa0stea0s& an0
othe,s of si3ila, cha,acte,I
79 Those 4hich belon2 to the State& 4ithout bein2 fo, public use& an0 a,e
inten0e0 fo, so3e public se,-ice o, fo, the 0e-elop3ent of the national
4ealth.
@ @ @.
A,t. =. P,ope,t$ of public 0o3inion& 4hen no lon2e, inten0e0 fo, public use
o, fo, public se,-ice& shall fo,3 pa,t of the pat,i3onial p,ope,t$ of the State.8
A2ain& the 2o-e,n3ent 3ust fo,3all$ 0ecla,e that the p,ope,t$ of public
0o3inion is no lon2e, nee0e0 fo, public use o, public se,-ice& befo,e the
sa3e coul0 be classifie0 as pat,i3onial p,ope,t$ of the State.
!%
(n the case of
2o-e,n3ent ,eclai3e0 an0 3a,sh$ lan0s of the public 0o3ain& the
0ecla,ation of thei, bein2 0isposable& as 4ell as the 3anne, of thei,
0isposition& is 2o-e,ne0 b$ the applicable p,o-isions of CA No. 1=1.
.i6e the Ci-il Co0e of 1>>%& the Ci-il Co0e of 1%!" inclu0e0 as p,ope,t$ of
public 0o3inion those p,ope,ties of the State 4hich& 4ithout bein2 fo, public
use& a,e inten0e0 fo, public se,-ice o, the 8de*elopment of the national
wealth.8 Thus& 2o-e,n3ent ,eclai3e0 an0 3a,sh$ lan0s of the State& e-en if
not e3plo$e0 fo, public use o, public se,-ice& if 0e-elope0 to enhance the
national 4ealth& a,e classifie0 as p,ope,t$ of public 0o3inion.
Dispositions under the ;?-+ %onstitution
The 1%<3 Constitution& 4hich too6 effect on #anua,$ 1<& 1%<3& li6e4ise
a0opte0 the Re2alian 0oct,ine. Section >& A,ticle K(* of the 1%<3 Constitution
state0 that N
8Sec. >. All lan0s of the public 0o3ain& 4ate,s& 3ine,als& coal& pet,oleu3 an0
othe, 3ine,al oils& all fo,ces of potential ene,2$& fishe,ies& 4il0life& an0 othe,
natu,al ,esou,ces of the Philippines belon2 to the State. #ith the e1ception
of agricultural6 industrial or commercial6 residential6 and resettlement lands of
the public domain6 natural resources shall not be alienated& an0 no license&
concession& o, lease fo, the e@plo,ation& 0e-elop3ent& e@ploitation& o,
utiliFation of an$ of the natu,al ,esou,ces shall be 2,ante0 fo, a pe,io0
e@cee0in2 t4ent$;fi-e $ea,s& ,ene4able fo, not 3o,e than t4ent$;fi-e $ea,s&
e@cept as to 4ate, ,i2hts fo, i,,i2ation& 4ate, suppl$& fishe,ies& o, in0ust,ial
uses othe, than the 0e-elop3ent of 4ate, po4e,& in 4hich cases& beneficial
use 3a$ be the 3easu,e an0 the li3it of the 2,ant.8 7E3phasis supplie09
The 1%<3 Constitution p,ohibite0 the alienation of all natu,al ,esou,ces 4ith
the e@ception of 8a2,icultu,al& in0ust,ial o, co33e,cial& ,esi0ential& an0
,esettle3ent lan0s of the public 0o3ain.8 (n cont,ast& the 1%3! Constitution
ba,,e0 the alienation of all natu,al ,esou,ces e@cept 8public a2,icultu,al
lan0s.8 )o4e-e,& the te,3 8public a2,icultu,al lan0s8 in the 1%3! Constitution
enco3passe0 in0ust,ial& co33e,cial& ,esi0ential an0 ,esettle3ent lan0s of
the public 0o3ain.
H"
(f the lan0 of public 0o3ain 4e,e neithe, ti3be, no,
3ine,al lan0& it 4oul0 fall un0e, the classification of a2,icultu,al lan0 of the
public 0o3ain. /oth the ;?+. and ;?-+ %onstitutions6 therefore6 prohibited
the alienation of all natural resources e1cept agricultural lands of the public
domain.
The 1%<3 Constitution& ho4e-e,& li3ite0 the alienation of lan0s of the public
0o3ain to in0i-i0uals 4ho 4e,e citiFens of the Philippines. P,i-ate
co,po,ations& e-en if 4holl$ o4ne0 b$ Philippine citiFens& 4e,e no lon2e,
allo4e0 to ac?ui,e alienable lan0s of the public 0o3ain unli6e in the 1%3!
Constitution. Section 11& A,ticle K(* of the 1%<3 Constitution 0ecla,e0 that N
8Sec. 11. The Batasan2 Pa3bansa& ta6in2 into account conse,-ation&
ecolo2ical& an0 0e-elop3ent ,e?ui,e3ents of the natu,al ,esou,ces& shall
0ete,3ine b$ la4 the siFe of lan0 of the public 0o3ain 4hich 3a$ be
0e-elope0& hel0 o, ac?ui,e0 b$& o, lease0 to& an$ ?ualifie0 in0i-i0ual&
co,po,ation& o, association& an0 the con0itions the,efo,. (o pri*ate
corporation or association may hold alienable lands of the public domain
e1cept by lease not to e@cee0 one thousan0 hecta,es in a,ea no, 3a$ an$
citiFen hol0 such lan0s b$ lease in e@cess of fi-e hun0,e0 hecta,es o,
ac?ui,e b$ pu,chase& ho3estea0 o, 2,ant& in e@cess of t4ent$;fou, hecta,es.
No p,i-ate co,po,ation o, association 3a$ hol0 b$ lease& concession& license
o, pe,3it& ti3be, o, fo,est lan0s an0 othe, ti3be, o, fo,est ,esou,ces in
e@cess of one hun0,e0 thousan0 hecta,es. )o4e-e,& such a,ea 3a$ be
inc,ease0 b$ the Batasan2 Pa3bansa upon ,eco33en0ation of the National
Econo3ic an0 1e-elop3ent Autho,it$.8 7E3phasis supplie09
Thus& un0e, the 1%<3 Constitution& p,i-ate co,po,ations coul0 hol0 alienable
lan0s of the public 0o3ain onl$ th,ou2h lease. Onl$ in0i-i0uals coul0 no4
ac?ui,e alienable lan0s of the public 0o3ain& an0 pri*ate corporations
became absolutely barred from acquiring any Find of alienable land of the
public domain. The constitutional ban e@ten0e0 to all 6in0s of alienable lan0s
of the public 0o3ain& 4hile the statuto,$ ban un0e, CA No. 1=1 applie0 onl$
to 2o-e,n3ent ,eclai3e0& fo,esho,e an0 3a,sh$ alienable lan0s of the public
0o3ain.
PD (o. ;E>@ %reating the Public 2states Authority
On 'eb,ua,$ =& 1%<<& then P,esi0ent 'e,0inan0 Ma,cos issue0 P,esi0ential
1ec,ee No. 1">= c,eatin2 PEA& a 4holl$ 2o-e,n3ent o4ne0 an0 cont,olle0
co,po,ation 4ith a special cha,te,. Sections = an0 > of P1 No. 1">=& -ests
PEA 4ith the follo4in2 pu,poses an0 po4e,sC
8Sec. =. Pu,pose. The Autho,it$ is he,eb$ c,eate0 fo, the follo4in2 pu,posesC
7a9 To reclaim land6 including foreshore and submerged areas6 by dredging6
filling or other means6 or to acquire reclaimed landD
7b9 To 0e-elop& i3p,o-e& ac?ui,e& a03iniste,& 0eal in& sub0i-i0e&
0ispose& lease and sell any and all Finds of lands& buil0in2s& estates an0
othe, fo,3s of ,eal p,ope,t$& o4ne0& 3ana2e0& cont,olle0 an0Do, ope,ate0 b$
the 2o-e,n3entI
7c9 To p,o-i0e fo,& ope,ate o, a03iniste, such se,-ice as 3a$ be necessa,$
fo, the efficient& econo3ical an0 beneficial utiliFation of the abo-e p,ope,ties.
Sec. !. Po4e,s an0 functions of the Autho,it$. The Autho,it$ shall& in ca,,$in2
out the pu,poses fo, 4hich it is c,eate0& ha-e the follo4in2 po4e,s an0
functionsC
7a9To p,esc,ibe its b$;la4s.
@ @ @
7i9 To hold lands of the public domain in e@cess of the a,ea pe,3itte0 to
p,i-ate co,po,ations b$ statute.
759 To reclaim lands an0 to const,uct 4o,6 ac,oss& o, othe,4ise& an$ st,ea3&
4ate,cou,se& canal& 0itch& flu3e @ @ @.
@ @ @
7o9 To pe,fo,3 such acts an0 e@e,cise such functions as 3a$ be necessa,$
fo, the attain3ent of the pu,poses an0 ob5ecti-es he,ein specifie0.8
7E3phasis supplie09
P1 No. 1">= autho,iFes PEA to ,eclai3 both fo,esho,e an0 sub3e,2e0 a,eas
of the public 0o3ain. 'o,esho,e a,eas a,e those co-e,e0 an0 unco-e,e0 b$
the ebb an0 flo4 of the ti0e.
H1
Sub3e,2e0 a,eas a,e those pe,3anentl$
un0e, 4ate, ,e2a,0less of the ebb an0 flo4 of the ti0e.
H
'o,esho,e an0
sub3e,2e0 a,eas in0isputabl$ belon2 to the public 0o3ain
H3
an0 a,e
inalienable unless ,eclai3e0& classifie0 as alienable lan0s open to
0isposition& an0 fu,the, 0ecla,e0 no lon2e, nee0e0 fo, public se,-ice.
The ban in the 1%<3 Constitution on p,i-ate co,po,ations f,o3 ac?ui,in2
alienable lan0s of the public 0o3ain 0i0 not appl$ to PEA since it 4as then&
an0 until to0a$& a full$ o4ne0 2o-e,n3ent co,po,ation. The constitutional ban
applie0 then& as it still applies no4& onl$ to 8p,i-ate co,po,ations an0
associations.8 P1 No. 1">= e@p,essl$ e3po4e,s P2A :to hold lands of the
public domain8 e-en 8in e@cess of the a,ea pe,3itte0 to p,i-ate co,po,ations
b$ statute.8 Thus6 P2A can hold title to pri*ate lands6 as well as title to lands
of the public domain.
(n o,0e, fo, PEA to sell its ,eclai3e0 fo,esho,e an0 sub3e,2e0 alienable
lan0s of the public 0o3ain& the,e 3ust be le2islati-e autho,it$ e3po4e,in2
PEA to sell these lan0s. This le2islati-e autho,it$ is necessa,$ in -ie4 of
Section H" of CA No.1=1& 4hich states N
8Sec. H". @ @ @I but the lan0 so 2,ante0& 0onate0 o, t,ansfe,,e0 to a p,o-ince&
3unicipalit$& o, b,anch o, sub0i-ision of the Go-e,n3ent shall not be
alienate0& encu3be,e0 o, othe,4ise 0ispose0 of in a 3anne, affectin2 its
title& e1cept when authori3ed by %ongressI @ @ @.8 7E3phasis supplie09
Eithout such le2islati-e autho,it$& PEA coul0 not sell but onl$ lease its
,eclai3e0 fo,esho,e an0 sub3e,2e0 alienable lan0s of the public 0o3ain.
Ne-e,theless& an$ le2islati-e autho,it$ 2,ante0 to PEA to sell its ,eclai3e0
alienable lan0s of the public 0o3ain 4oul0 be sub5ect to the constitutional
ban on p,i-ate co,po,ations f,o3 ac?ui,in2 alienable lan0s of the public
0o3ain. )ence& such le2islati-e autho,it$ coul0 onl$ benefit p,i-ate
in0i-i0uals.
Dispositions under the ;?>- %onstitution
The 1%>< Constitution& li6e the 1%3! an0 1%<3 Constitutions befo,e it& has
a0opte0 the Re2alian 0oct,ine. The 1%>< Constitution 0ecla,es that all
natu,al ,esou,ces a,e 8owned by the 'tate&8 an0 e@cept fo, alienable
a2,icultu,al lan0s of the public 0o3ain& natu,al ,esou,ces cannot be
alienate0. Sections an0 3& A,ticle K(( of the 1%>< Constitution state that N
8Section . All lan0s of the public 0o3ain& 4ate,s& 3ine,als& coal& pet,oleu3
an0 othe, 3ine,al oils& all fo,ces of potential ene,2$& fishe,ies& fo,ests o,
ti3be,& 4il0life& flo,a an0 fauna& an0 othe, natu,al resources are owned by
the 'tate. #ith the e1ception of agricultural lands6 all other natural resources
shall not be alienated. The e@plo,ation& 0e-elop3ent& an0 utiliFation of
natu,al ,esou,ces shall be un0e, the full cont,ol an0 supe,-ision of the State.
@ @ @.
Section 3. .an0s of the public 0o3ain a,e classifie0 into a2,icultu,al& fo,est o,
ti3be,& 3ine,al lan0s& an0 national pa,6s. A2,icultu,al lan0s of the public
0o3ain 3a$ be fu,the, classifie0 b$ la4 acco,0in2 to the uses 4hich the$
3a$ be 0e-ote0. Alienable lands of the public domain shall be limited to
agricultural lands. Pri*ate corporations or associations may not hold such
alienable lands of the public domain e1cept by lease6 for a period not
e1ceeding twenty0fi*e years6 renewable for not more than twenty0fi*e years6
and not to e1ceed one thousand hectares in area. CitiFens of the Philippines
3a$ lease not 3o,e than fi-e hun0,e0 hecta,es& o, ac?ui,e not 3o,e than
t4el-e hecta,es the,eof b$ pu,chase& ho3estea0& o, 2,ant.
Ta6in2 into account the ,e?ui,e3ents of conse,-ation& ecolo2$& an0
0e-elop3ent& an0 sub5ect to the ,e?ui,e3ents of a2,a,ian ,efo,3& the
Con2,ess shall 0ete,3ine& b$ la4& the siFe of lan0s of the public 0o3ain
4hich 3a$ be ac?ui,e0& 0e-elope0& hel0& o, lease0 an0 the con0itions
the,efo,.8 7E3phasis supplie09
The 1%>< Constitution continues the State polic$ in the 1%<3 Constitution
bannin2 p,i-ate co,po,ations f,o3acquiring any Find of alienable land of the
public domain. .i6e the 1%<3 Constitution& the 1%>< Constitution allo4s
p,i-ate co,po,ations to hol0 alienable lan0s of the public 0o3ain only through
lease. As in the 1%3! an0 1%<3 Constitutions& the 2ene,al la4 2o-e,nin2 the
lease to p,i-ate co,po,ations of ,eclai3e0& fo,esho,e an0 3a,sh$ alienable
lan0s of the public 0o3ain is still CA No. 1=1.
The Rationale behind the %onstitutional /an
The ,ationale behin0 the constitutional ban on co,po,ations f,o3 ac?ui,in2&
e@cept th,ou2h lease& alienable lan0s of the public 0o3ain is not 4ell
un0e,stoo0. 1u,in2 the 0elibe,ations of the 1%>H Constitutional Co33ission&
the co33issione,s p,obe0 the ,ationale behin0 this ban& thusC
8'R. BERNASC M,. *ice;P,esi0ent& 3$ ?uestions ha-e ,efe,ence to pa2e 3&
line ! 4hich sa$sC
PNo p,i-ate co,po,ation o, association 3a$ hol0 alienable lan0s of the public
0o3ain e@cept b$ lease& not to e@cee0 one thousan0 hecta,es in a,ea.:
(f 4e ,ecall& this p,o-ision 0i0 not e@ist un0e, the 1%3! Constitution& but this
4as int,o0uce0 in the 1%<3 Constitution. (n effect& it p,ohibits p,i-ate
co,po,ations f,o3 ac?ui,in2 alienable public lan0s. /ut it has not been *ery
clear in !urisprudence what the reason for this is. (n so3e of the cases
0eci0e0 in 1%> an0 1%>3& it was indicated that the purpose of this is to
pre*ent large landholdings. (s that the intent of this p,o-isionO
MR. *(..EGASC ( thin6 that is the spi,it of the p,o-ision.
'R. BERNASC (n e@istin2 0ecisions in-ol-in2 the (2lesia ni C,isto& the,e 4e,e
instances 4he,e the (2lesia ni C,isto 4as not allo4e0 to ac?ui,e a 3e,e 313;
s?ua,e 3ete, lan0 4he,e a chapel stoo0 because the Sup,e3e Cou,t sai0 it
4oul0 be in -iolation of this.8 7E3phasis supplie09
(n Ayog *. %usi&
H=
the Cou,t e@plaine0 the ,ationale behin0 this constitutional
ban in this 4a$C
8(n0ee0& one pu,pose of the constitutional p,ohibition a2ainst pu,chases of
public a2,icultu,al lan0s b$ p,i-ate co,po,ations is to e?uitabl$ 0iffuse lan0
o4ne,ship o, to encou,a2e :o4ne,;culti-ato,ship an0 the econo3ic fa3il$;
siFe fa,3: an0 to p,e-ent a ,ecu,,ence of cases li6e the instant case. )u2e
lan0hol0in2s b$ co,po,ations o, p,i-ate pe,sons ha0 spa4ne0 social un,est.8
)o4e-e,& if the constitutional intent is to p,e-ent hu2e lan0hol0in2s& the
Constitution coul0 ha-e si3pl$ li3ite0 the siFe of alienable lan0s of the public
0o3ain that co,po,ations coul0 ac?ui,e. The Constitution coul0 ha-e follo4e0
the li3itations on in0i-i0uals& 4ho coul0 ac?ui,e not 3o,e than = hecta,es of
alienable lan0s of the public 0o3ain un0e, the 1%<3 Constitution& an0 not
3o,e than 1 hecta,es un0e, the 1%>< Constitution.
(f the constitutional intent is to encou,a2e econo3ic fa3il$;siFe fa,3s&
placin2 the lan0 in the na3e of a co,po,ation 4oul0 be 3o,e effecti-e in
p,e-entin2 the b,ea6;up of fa,3lan0s. (f the fa,3lan0 is ,e2iste,e0 in the
na3e of a co,po,ation& upon the 0eath of the o4ne,& his hei,s 4oul0 inhe,it
sha,es in the co,po,ation instea0 of sub0i-i0e0 pa,cels of the fa,3lan0. This
4oul0 p,e-ent the continuin2 b,ea6;up of fa,3lan0s into s3alle, an0 s3alle,
plots f,o3 one 2ene,ation to the ne@t.
(n actual p,actice& the constitutional ban st,en2thens the constitutional
li3itation on in0i-i0uals f,o3 ac?ui,in2 3o,e than the allo4e0 a,ea of
alienable lan0s of the public 0o3ain. Eithout the constitutional ban&
in0i-i0uals 4ho al,ea0$ ac?ui,e0 the 3a@i3u3 a,ea of alienable lan0s of the
public 0o3ain coul0 easil$ set up co,po,ations to ac?ui,e 3o,e alienable
public lan0s. An in0i-i0ual coul0 o4n as 3an$ co,po,ations as his 3eans
4oul0 allo4 hi3. An in0i-i0ual coul0 e-en hi0e his o4ne,ship of a co,po,ation
b$ puttin2 his no3inees as stoc6hol0e,s of the co,po,ation. The co,po,ation
is a con-enient -ehicle to ci,cu3-ent the constitutional li3itation on
ac?uisition b$ in0i-i0uals of alienable lan0s of the public 0o3ain.
The constitutional intent& un0e, the 1%<3 an0 1%>< Constitutions& is to
t,ansfe, o4ne,ship of onl$ a li3ite0 a,ea of alienable lan0 of the public
0o3ain to a ?ualifie0 in0i-i0ual. This constitutional intent is safe2ua,0e0 b$
the p,o-ision p,ohibitin2 co,po,ations f,o3 ac?ui,in2 alienable lan0s of the
public 0o3ain& since the -ehicle to ci,cu3-ent the constitutional intent is
,e3o-e0. The a-ailable alienable public lan0s a,e 2,a0uall$ 0ec,easin2 in the
face of an e-e,;2,o4in2 population. The 3ost effecti-e 4a$ to insu,e faithful
a0he,ence to this constitutional intent is to 2,ant o, sell alienable lan0s of the
public 0o3ain onl$ to in0i-i0uals. This& it 4oul0 see3& is the p,actical benefit
a,isin2 f,o3 the constitutional ban.
The Amended Joint 7enture Agreement
The sub5ect 3atte, of the A3en0e0 #*A& as state0 in its secon0 Ehe,eas
clause& consists of th,ee p,ope,ties& na3el$C
1. 8ATBh,ee pa,tiall$ ,eclai3e0 an0 substantiall$ e,o0e0 islan0s alon2 E3ilio
A2uinal0o Boule-a,0 in Pa,ana?ue an0 .as Pinas& Met,o Manila& 4ith a
co3bine0 title0 a,ea of 1&!<>&==1 s?ua,e 3ete,sI8
. 8AABnothe, a,ea of &=1&!!% s?ua,e 3ete,s conti2uous to the th,ee
islan0sI8 an0
3. 8AABt AMAR(:s option as app,o-e0 b$ PEA& an a00itional 3!" hecta,es
3o,e o, less to ,e2ula,iFe the confi2u,ation of the ,eclai3e0 a,ea.8
H!
PEA confi,3s that the A3en0e0 #*A in-ol-es 8the 0e-elop3ent of the
',ee0o3 (slan0s an0 fu,the, ,ecla3ation of about !" hecta,es @ @ @&8 plus
an option 82,ante0 to AMAR( to subse?uentl$ ,eclai3 anothe, 3!" hecta,es @
@ @.8
HH
(n sho,t& the A3en0e0 #*A co-e,s a ,ecla3ation a,ea of <!" hecta,es. nly
;.-.>@ hectares of the -.E0hectare reclamation pro!ect ha*e been
reclaimed6 and the rest of the .?A.;. hectares are still submerged areas
forming part of "anila /ay.
Un0e, the A3en0e0 #*A& AMAR( 4ill ,ei3bu,se PEA the su3 of
P1&>%=&1%&""."" fo, PEA:s 8actual cost8 in pa,tiall$ ,eclai3in2 the ',ee0o3
(slan0s. AMAR( 4ill also co3plete& at its o4n e@pense& the ,ecla3ation of the
',ee0o3 (slan0s. AMAR( 4ill fu,the, shoul0e, all the ,ecla3ation costs of all
the othe, a,eas& totalin2 !%.1! hecta,es& still to be ,eclai3e0. AMAR( an0
PEA 4ill sha,e& in the p,opo,tion of <" pe,cent an0 3" pe,cent& ,especti-el$&
the total net usable a,ea 4hich is 0efine0 in the A3en0e0 #*A as the total
,eclai3e0 a,ea less 3" pe,cent ea,3a,6e0 fo, co33on a,eas. Title to
AMAR(:s sha,e in the net usable a,ea& totalin2 3H<.! hecta,es& 4ill be issue0
in the na3e of AMAR(. Section !. 7c9 of the A3en0e0 #*A p,o-i0es that N
8@ @ @& PEA shall ha-e the 0ut$ to e@ecute 4ithout 0ela$ the necessa,$ 0ee0
of t,ansfe, o, con-e$ance of the title pe,tainin2 to AMAR(:s .an0 sha,e base0
on the .an0 Allocation Plan. P2A6 when requested in writing by A"ARI6 shall
then cause the issuance and deli*ery of the proper certificates of title
co*ering A"ARI8s $and 'hare in the name of A"ARI& @ @ @I p,o-i0e0& that if
3o,e than se-ent$ pe,cent 7<"Q9 of the title0 a,ea at an$ 2i-en ti3e pe,tains
to AMAR(& PEA shall 0eli-e, to AMAR( onl$ se-ent$ pe,cent 7<"Q9 of the
titles pe,tainin2 to AMAR(& until such ti3e 4hen a co,,espon0in2
p,opo,tionate a,ea of a00itional lan0 pe,tainin2 to PEA has been title0.8
7E3phasis supplie09
Indisputably6 under the Amended J7A A"ARI will acquire and own a
ma1imum of +,-.. hectares of reclaimed land which will be titled in its name.
To i3ple3ent the A3en0e0 #*A& PEA 0ele2ate0 to the uninco,po,ate0 PEA;
AMAR( 5oint -entu,e PEA:s statuto,$ autho,it$& ,i2hts an0 p,i-ile2es to ,eclai3
fo,esho,e an0 sub3e,2e0 a,eas in Manila Ba$. Section 3..a of the A3en0e0
#*A states that N
8PEA he,eb$ cont,ibutes to the 5oint -entu,e its ,i2hts an0 p,i-ile2es to
pe,fo,3 Ra4lan0 Recla3ation an0 )o,iFontal 1e-elop3ent as 4ell as o4n
the Recla3ation A,ea& the,eb$ 2,antin2 the #oint *entu,e the full an0
e@clusi-e ,i2ht& autho,it$ an0 p,i-ile2e to un0e,ta6e the P,o5ect in acco,0ance
4ith the Maste, 1e-elop3ent Plan.8
The A3en0e0 #*A is the p,o0uct of a ,ene2otiation of the o,i2inal #*A 0ate0
Ap,il !& 1%%! an0 its supple3ental a2,ee3ent 0ate0 Au2ust %& 1%%!.
The Threshold Issue
The th,eshol0 issue is 4hethe, AMAR(& a p,i-ate co,po,ation& can ac?ui,e
an0 o4n un0e, the A3en0e0 #*A 3H<.! hecta,es of ,eclai3e0 fo,esho,e an0
sub3e,2e0 a,eas in Manila Ba$ in -ie4 of Sections an0 3& A,ticle K(( of the
1%>< Constitution 4hich state thatC
8Section . All lan0s of the public 0o3ain& 4ate,s& 3ine,als& coal& pet,oleu3&
an0 othe, 3ine,al oils& all fo,ces of potential ene,2$& fishe,ies& fo,ests o,
ti3be,& 4il0life& flo,a an0 fauna& an0 othe, natu,al ,esou,ces a,e o4ne0 b$
the State. #ith the e1ception of agricultural lands6 all other natural resources
shall not be alienated. @ @ @.
@ @ @
Section 3. @ @ @ Alienable lan0s of the public 0o3ain shall be li3ite0 to
a2,icultu,al lan0s. Pri*ate corporations or associations may not hold such
alienable lands of the public domain e1cept by lease& @ @ @.87E3phasis
supplie09
%lassification of Reclaimed )oreshore and 'ubmerged Areas
PEA ,ea0il$ conce0es that lan0s ,eclai3e0 f,o3 fo,esho,e o, sub3e,2e0
a,eas of Manila Ba$ a,e alienable o, 0isposable lan0s of the public 0o3ain.
(n its Me3o,an0u3&
H<
PEA a03its that N
8Un0e, the Public .an0 Act 7CA 1=1& as a3en0e09& reclaimed lands are
classified as alienable and disposable lands of the public domainC
:Sec. !%. The lan0s 0isposable un0e, this title shall be classifie0 as follo4sC
7a9 .an0s ,eclai3e0 b$ the 2o-e,n3ent b$ 0,e02in2& fillin2& o, othe, 3eansI
@ @ @.:8 7E3phasis supplie09
.i6e4ise& the .e2al Tas6 'o,ce
H>
constitute0 un0e, P,esi0ential
A03inist,ati-e O,0e, No. 3H! a03itte0 in its Repo,t an0 Reco33en0ation to
then P,esi0ent 'i0el *. Ra3os& :GRHeclaimed lands are classified as alienable
and disposable lands of the public domain.8
H%
The .e2al Tas6 'o,ce
conclu0e0 that N
81. Conclusion
Reclai3e0 lan0s a,e lan0s of the public 0o3ain. )o4e-e,& b$ statuto,$
autho,it$& the ,i2hts of o4ne,ship an0 0isposition o-e, ,eclai3e0 lan0s ha-e
been t,ansfe,,e0 to PEA& b$ -i,tue of 4hich PEA& as o4ne,& 3a$ -ali0l$
con-e$ the sa3e to an$ ?ualifie0 pe,son 4ithout -iolatin2 the Constitution o,
an$ statute.
The constitutional p,o-ision p,ohibitin2 p,i-ate co,po,ations f,o3 hol0in2
public lan0& e@cept b$ lease 7Sec. 3& A,t. K*((&
<"
1%>< Constitution9& 0oes not
appl$ to ,eclai3e0 lan0s 4hose o4ne,ship has passe0 on to PEA b$
statuto,$ 2,ant.8
Un0e, Section & A,ticle K(( of the 1%>< Constitution& the fo,esho,e an0
sub3e,2e0 a,eas of Manila Ba$ a,e pa,t of the 8lan0s of the public 0o3ain&
4ate,s @ @ @ an0 othe, natu,al ,esou,ces8 an0 conse?uentl$ 8o4ne0 b$ the
State.8 As such& fo,esho,e an0 sub3e,2e0 a,eas 8shall not be alienate0&8
unless the$ a,e classifie0 as 8a2,icultu,al lan0s8 of the public 0o3ain. The
3e,e ,ecla3ation of these a,eas b$ PEA 0oes not con-e,t these inalienable
natu,al ,esou,ces of the State into alienable o, 0isposable lan0s of the public
0o3ain. The,e 3ust be a la4 o, p,esi0ential p,ocla3ation officiall$ classif$in2
these ,eclai3e0 lan0s as alienable o, 0isposable an0 open to 0isposition o,
concession. Mo,eo-e,& these ,eclai3e0 lan0s cannot be classifie0 as
alienable o, 0isposable if the la4 has ,ese,-e0 the3 fo, so3e public o,
?uasi;public use.
<1
Section > of CA No. 1=1 p,o-i0es that 8onl$ those lan0s shall be 0ecla,e0
open to 0isposition o, concession 4hich ha-e been officially delimited and
classified.8
<
The P,esi0ent has the autho,it$ to classif$ inalienable lan0s of
the public 0o3ain into alienable o, 0isposable lan0s of the public 0o3ain&
pu,suant to Section H of CA No. 1=1. (n .au,el -s. Ga,cia&
<3
the E@ecuti-e
1epa,t3ent atte3pte0 to sell the Roppon2i p,ope,t$ in To6$o& #apan& 4hich
4as ac?ui,e0 b$ the Philippine Go-e,n3ent fo, use as the Chance,$ of the
Philippine E3bass$. Althou2h the Chance,$ ha0 t,ansfe,,e0 to anothe,
location thi,teen $ea,s ea,lie,& the Cou,t still ,ule0 that& un0e, A,ticle =
<=
of
the Ci-il Co0e& a p,ope,t$ of public 0o3inion ,etains such cha,acte, until
fo,3all$ 0ecla,e0 othe,4ise. The Cou,t ,ule0 that N
8The fact that the Roppon2i site has not been use0 fo, a lon2 ti3e fo, actual
E3bass$ se,-ice 0oes not auto3aticall$ con-e,t it to pat,i3onial p,ope,t$.
An$ such con-e,sion happens onl$ if the p,ope,t$ is 4ith0,a4n f,o3 public
use 7Cebu O@$2en an0 Acet$lene Co. -. Be,cilles& HH SCRA =>1 A1%<!B. A
property continues to be part of the public domain6 not a*ailable for pri*ate
appropriation or ownership 8until there is a formal declaration on the part of
the go*ernment to withdraw it from being such8 7(2nacio -. 1i,ecto, of .an0s&
1"> Phil. 33! A1%H"B.8 7E3phasis supplie09
P1 No. 1">!& issue0 on 'eb,ua,$ =& 1%<<& autho,iFe0 the issuance of special
lan0 patents fo, lan0s ,eclai3e0 b$ PEA f,o3 the fo,esho,e o, sub3e,2e0
a,eas of Manila Ba$. On #anua,$ 1%& 1%>> then P,esi0ent Co,aFon C. A?uino
issue0 Special Patent No. 3!1< in the na3e of PEA fo, the 1!<.>= hecta,es
co3p,isin2 the pa,tiall$ ,eclai3e0 ',ee0o3 (slan0s. Subse?uentl$& on Ap,il %&
1%%% the Re2iste, of 1ee0s of the Municipalit$ of Pa,ana?ue issue0 TCT
Nos. <3"%& <311 an0 <31 in the na3e of PEA pu,suant to Section 1"3 of P1
No. 1!% autho,iFin2 the issuance of ce,tificates of title co,,espon0in2 to lan0
patents. To this 0a$& these ce,tificates of title a,e still in the na3e of PEA.
P1 No. 1">!& couple0 4ith P,esi0ent A?uino:s actual issuance of a special
patent co-e,in2 the ',ee0o3 (slan0s& is e?ui-alent to an official p,ocla3ation
classif$in2 the ',ee0o3 (slan0s as alienable o, 0isposable lan0s of the public
0o3ain. P1 No. 1">! an0 P,esi0ent A?uino:s issuance of a lan0 patent also
constitute a 0ecla,ation that the ',ee0o3 (slan0s a,e no lon2e, nee0e0 fo,
public se,-ice. The )reedom Islands are thus alienable or disposable lands
of the public domain6 open to disposition or concession to qualified parties.
At the ti3e then P,esi0ent A?uino issue0 Special Patent No. 3!1<& PEA ha0
al,ea0$ ,eclai3e0 the ',ee0o3 (slan0s althou2h subse?uentl$ the,e 4e,e
pa,tial e,osions on so3e a,eas. The 2o-e,n3ent ha0 also co3plete0 the
necessa,$ su,-e$s on these islan0s. Thus& the ',ee0o3 (slan0s 4e,e no
lon2e, pa,t of Manila Ba$ but pa,t of the lan0 3ass. Section 3& A,ticle K(( of
the 1%>< Constitution classifies lan0s of the public 0o3ain into 8a2,icultu,al&
fo,est o, ti3be,& 3ine,al lan0s& an0 national pa,6s.8 Bein2 neithe, ti3be,&
3ine,al& no, national pa,6 lan0s& the ,eclai3e0 ',ee0o3 (slan0s necessa,il$
fall un0e, the classification of a2,icultu,al lan0s of the public 0o3ain. Un0e,
the 1%>< Constitution& a2,icultu,al lan0s of the public 0o3ain a,e the onl$
natu,al ,esou,ces that the State 3a$ alienate to ?ualifie0 p,i-ate pa,ties. All
othe, natu,al ,esou,ces& such as the seas o, ba$s& a,e 84ate,s @ @ @ o4ne0
b$ the State8 fo,3in2 pa,t of the public 0o3ain& an0 a,e inalienable pu,suant
to Section & A,ticle K(( of the 1%>< Constitution.
AMAR( clai3s that the ',ee0o3 (slan0s a,e p,i-ate lan0s because C1CP&
then a p,i-ate co,po,ation& ,eclai3e0 the islan0s un0e, a cont,act 0ate0
No-e3be, "& 1%<3 4ith the Co33issione, of Public )i2h4a$s. AMAR(&
citin2 A,ticle ! of the Spanish .a4 of Eate,s of 1>HH& a,2ues that 8if the
o4ne,ship of ,eclai3e0 lan0s 3a$ be 2i-en to the pa,t$ const,uctin2 the
4o,6s& then it cannot be sai0 that ,eclai3e0 lan0s a,e lan0s of the public
0o3ain 4hich the State 3a$ not alienate.8
<!
A,ticle ! of the Spanish .a4 of
Eate,s ,ea0s as follo4sC
8A,ticle !. .an0s ,eclai3e0 f,o3 the sea in conse?uence of 4o,6s
const,ucte0 b$ the State& o, b$ the p,o-inces& pueblos o, p,i-ate
pe,sons& with proper permission& shall beco3e the p,ope,t$ of the pa,t$
const,uctin2 such 4o,6s& unless otherwise pro*ided by the terms of the grant
of authority.8 7E3phasis supplie09
Un0e, A,ticle ! of the Spanish .a4 of Eate,s of 1>HH& p,i-ate pa,ties coul0
,eclai3 f,o3 the sea onl$ 4ith 8p,ope, pe,3ission8 f,o3 the State. P,i-ate
pa,ties coul0 o4n the ,eclai3e0 lan0 onl$ if not 8othe,4ise p,o-i0e0 b$ the
te,3s of the 2,ant of autho,it$.8 This clea,l$ 3eant that no one coul0 ,eclai3
f,o3 the sea 4ithout pe,3ission f,o3 the State because the sea is p,ope,t$
of public 0o3inion. (t also 3eant that the State coul0 2,ant o, 4ithhol0
o4ne,ship of the ,eclai3e0 lan0 because an$ ,eclai3e0 lan0& li6e the sea
f,o3 4hich it e3e,2e0& belon2e0 to the State. Thus& a p,i-ate pe,son
,eclai3in2 f,o3 the sea 4ithout pe,3ission f,o3 the State coul0 not ac?ui,e
o4ne,ship of the ,eclai3e0 lan0 4hich 4oul0 ,e3ain p,ope,t$ of public
0o3inion li6e the sea it ,eplace0.
<H
A,ticle ! of the Spanish .a4 of Eate,s of
1>HH a0opte0 the ti3e;hono,e0 p,inciple of lan0 o4ne,ship that 8all lan0s
that 4e,e not ac?ui,e0 f,o3 the 2o-e,n3ent& eithe, b$ pu,chase o, b$ 2,ant&
belon2 to the public 0o3ain.8
<<
A,ticle ! of the Spanish .a4 of Eate,s 3ust be ,ea0 to2ethe, 4ith la4s
subse?uentl$ enacte0 on the 0isposition of public lan0s. (n pa,ticula,& CA No.
1=1 ,e?ui,es that lan0s of the public 0o3ain 3ust fi,st be classifie0 as
alienable o, 0isposable befo,e the 2o-e,n3ent can alienate the3. These
lan0s 3ust not be ,ese,-e0 fo, public o, ?uasi;public pu,poses.
<>
Mo,eo-e,&
the cont,act bet4een C1CP an0 the 2o-e,n3ent 4as e@ecute0 after the
effecti-it$ of the 1%<3 Constitution 4hich ba,,e0 p,i-ate co,po,ations f,o3
ac?ui,in2 an$ 6in0 of alienable lan0 of the public 0o3ain. This cont,act coul0
not ha-e con-e,te0 the ',ee0o3 (slan0s into p,i-ate lan0s of a p,i-ate
co,po,ation.
P,esi0ential 1ec,ee No. 3;A& issue0 on #anua,$ 11& 1%<3& ,e-o6e0 all la4s
autho,iFin2 the ,ecla3ation of a,eas un0e, 4ate, an0 ,e-este0 solel$ in the
National Go-e,n3ent the po4e, to ,eclai3 lan0s. Section 1 of P1 No. 3;A
0ecla,e0 that N
8The pro*isions of any law to the contrary notwithstanding& the ,ecla3ation of
a,eas un0e, 4ate,& 4hethe, fo,esho,e o, inlan0& shall be limited to the
(ational 4o*ernment or any person authori3ed by it under a proper contract.
7E3phasis supplie09
@ @ @.8
P1 No. 3;A ,epeale0 Section ! of the Spanish .a4 of Eate,s of 1>HH
because ,ecla3ation of a,eas un0e, 4ate, coul0 no4 be un0e,ta6en onl$ b$
the National Go-e,n3ent o, b$ a pe,son cont,acte0 b$ the National
Go-e,n3ent. P,i-ate pa,ties 3a$ ,eclai3 f,o3 the sea onl$ un0e, a cont,act
4ith the National Go-e,n3ent& an0 no lon2e, b$ 2,ant o, pe,3ission as
p,o-i0e0 in Section ! of the Spanish .a4 of Eate,s of 1>HH.
E@ecuti-e O,0e, No. !!& issue0 on 'eb,ua,$ 1=& 1%<%& 0esi2nate0 PEA as
the National Go-e,n3ent:s i3ple3entin2 a,3 to un0e,ta6e 8all ,ecla3ation
p,o5ects of the 2o-e,n3ent&8 4hich 8shall be undertaFen by the P2A or
through a proper contract e1ecuted by it with any person or entity.8 Un0e,
such cont,act& a p,i-ate pa,t$ ,ecei-es co3pensation fo, ,ecla3ation se,-ices
,en0e,e0 to PEA. Pa$3ent to the cont,acto, 3a$ be in cash& o, in 6in0
consistin2 of po,tions of the ,eclai3e0 lan0& sub5ect to the constitutional ban
on p,i-ate co,po,ations f,o3 ac?ui,in2 alienable lan0s of the public 0o3ain.
The ,eclai3e0 lan0 can be use0 as pa$3ent in 6in0 onl$ if the ,eclai3e0 lan0
is fi,st classifie0 as alienable o, 0isposable lan0 open to 0isposition& an0 then
0ecla,e0 no lon2e, nee0e0 fo, public se,-ice.
The A3en0e0 #*A co-e,s not onl$ the ',ee0o3 (slan0s& but also an
a00itional !%.1! hecta,es 4hich a,e still sub3e,2e0 an0 fo,3in2 pa,t of
Manila Ba$. There is no legislati*e or Presidential act classifying these
submerged areas as alienable or disposable lands of the public domain open
to disposition. These sub3e,2e0 a,eas a,e not co-e,e0 b$ an$ patent o,
ce,tificate of title. The,e can be no 0ispute that these sub3e,2e0 a,eas fo,3
pa,t of the public 0o3ain& an0 in thei, p,esent state a,e inalienable and
outside the commerce of man. Until ,eclai3e0 f,o3 the sea& these
sub3e,2e0 a,eas a,e& un0e, the Constitution& 84ate,s @ @ @ o4ne0 b$ the
State&8 fo,3in2 pa,t of the public 0o3ain an0 conse?uentl$ inalienable. Onl$
4hen actuall$ ,eclai3e0 f,o3 the sea can these sub3e,2e0 a,eas be
classifie0 as public a2,icultu,al lan0s& 4hich un0e, the Constitution a,e the
onl$ natu,al ,esou,ces that the State 3a$ alienate. Once ,eclai3e0 an0
t,ansfo,3e0 into public a2,icultu,al lan0s& the 2o-e,n3ent 3a$ then officiall$
classif$ these lan0s as alienable o, 0isposable lan0s open to 0isposition.
The,eafte,& the 2o-e,n3ent 3a$ 0ecla,e these lan0s no lon2e, nee0e0 fo,
public se,-ice. Onl$ then can these ,eclai3e0 lan0s be consi0e,e0 alienable
o, 0isposable lan0s of the public 0o3ain an0 4ithin the co33e,ce of 3an.
The classification of PEA:s ,eclai3e0 fo,esho,e an0 sub3e,2e0 lan0s into
alienable o, 0isposable lan0s open to 0isposition is necessa,$ because PEA
is tas6e0 un0e, its cha,te, to un0e,ta6e public se,-ices that ,e?ui,e the use of
lan0s of the public 0o3ain. Un0e, Section ! of P1 No. 1">=& the functions of
PEA inclu0e the follo4in2C 8ATBo o4n o, ope,ate ,ail,oa0s& t,a34a$s an0
othe, 6in0s of lan0 t,anspo,tation& @ @ @I ATBo const,uct& 3aintain an0 ope,ate
such s$ste3s of sanita,$ se4e,s as 3a$ be necessa,$I ATBo const,uct&
3aintain an0 ope,ate such sto,3 0,ains as 3a$ be necessa,$.8 PEA is
e3po4e,e0 to issue 8,ules an0 ,e2ulations as 3a$ be necessa,$ fo, the
p,ope, use b$ p,i-ate pa,ties of any or all of the highways6 roads6 utilities6
buildings andIor any of its properties an0 to i3pose o, collect fees o, tolls fo,
thei, use.8 Thus& pa,t of the ,eclai3e0 fo,esho,e an0 sub3e,2e0 lan0s hel0
b$ the PEA 4oul0 actuall$ be nee0e0 fo, public use o, se,-ice since 3an$ of
the functions i3pose0 on PEA b$ its cha,te, constitute essential public
se,-ices.
Mo,eo-e,& Section 1 of E@ecuti-e O,0e, No. !! p,o-i0es that PEA 8shall be
p,i3a,il$ ,esponsible fo, inte2,atin2& 0i,ectin2& an0 coo,0inatin2 all
,ecla3ation p,o5ects fo, an0 on behalf of the National Go-e,n3ent.8 The
sa3e section also states that 8AABll ,ecla3ation p,o5ects shall be app,o-e0 b$
the P,esi0ent upon ,eco33en0ation of the PEA& an0 shall be un0e,ta6en b$
the PEA o, th,ou2h a p,ope, cont,act e@ecute0 b$ it 4ith an$ pe,son o, entit$I
@ @ @.8 Thus& un0e, EO No. !!& in ,elation to P1 No. 3;A an0 P1 No.1">=&
PEA beca3e the p,i3a,$ i3ple3entin2 a2enc$ of the National Go-e,n3ent
to ,eclai3 fo,esho,e an0 sub3e,2e0 lan0s of the public 0o3ain. EO No. !!
,eco2niFe0 PEA as the 2o-e,n3ent entit$ 8to un0e,ta6e the ,ecla3ation of
lan0s an0 ensu,e thei, 3a@i3u3 utiliFation in promoting public welfare and
interests.8
<%
Since la,2e po,tions of these ,eclai3e0 lan0s 4oul0 ob-iousl$ be
nee0e0 fo, public se,-ice& the,e 3ust be a fo,3al 0ecla,ation se2,e2atin2
,eclai3e0 lan0s no lon2e, nee0e0 fo, public se,-ice f,o3 those still nee0e0
fo, public se,-ice.;<wphi;.n=t
Section 3 of EO No. !!& b$ 0ecla,in2 that all lan0s ,eclai3e0 b$ PEA 8shall
belon2 to o, be o4ne0 b$ the PEA&8 coul0 not auto3aticall$ ope,ate to
classif$ inalienable lan0s into alienable o, 0isposable lan0s of the public
0o3ain. Othe,4ise& ,eclai3e0 fo,esho,e an0 sub3e,2e0 lan0s of the public
0o3ain 4oul0 auto3aticall$ beco3e alienable once ,eclai3e0 b$ PEA&
4hethe, o, not classifie0 as alienable o, 0isposable.
The Re-ise0 A03inist,ati-e Co0e of 1%><& a late, la4 than eithe, P1 No.
1">= o, EO No. !!& -ests in the 1epa,t3ent of En-i,on3ent an0 Natu,al
Resou,ces 781ENR8 fo, b,e-it$9 the follo4in2 po4e,s an0 functionsC
8Sec. =. Po4e,s an0 'unctions. The 1epa,t3ent shallC
719 @ @ @
@ @ @
7=9 21ercise super*ision and control o-e, fo,est lan0s& alienable and
disposable public lands& 3ine,al ,esou,ces an0& in the p,ocess of e@e,cisin2
such cont,ol& i3pose app,op,iate ta@es& fees& cha,2es& ,entals an0 an$ such
fo,3 of le-$ an0 collect such ,e-enues fo, the e@plo,ation& 0e-elop3ent&
utiliFation o, 2athe,in2 of such ,esou,cesI
@ @ @
71=9 Promulgate rules6 regulations and guidelines on the issuance of
licenses6 permits6 concessions6 lease agreements and such other pri*ileges
concerning the de*elopment6 e1ploration and utili3ation of the country8s
marine6 freshwater6 and bracFish water and o*er all aquatic resources of the
country and shall continue to o*ersee6 super*ise and police our natural
resourcesI cancel o, cause to cancel such p,i-ile2es upon failu,e& non;
co3pliance o, -iolations of an$ ,e2ulation& o,0e,& an0 fo, all othe, causes
4hich a,e in fu,the,ance of the conse,-ation of natu,al ,esou,ces an0
suppo,ti-e of the national inte,estI
71!9 21ercise e1clusi*e !urisdiction on the management and disposition of all
lands of the public domain and ser*e as the sole agency responsible for
classification& sub;classification& su,-e$in2 an0 titlin2 of lan0s in consultation
4ith app,op,iate a2encies.8
>"
7E3phasis supplie09
As 3ana2e,& conse,-ato, an0 o-e,see, of the natu,al ,esou,ces of the State&
1ENR e@e,cises 8supe,-ision an0 cont,ol o-e, alienable an0 0isposable
public lan0s.8 1ENR also e@e,cises 8e@clusi-e 5u,is0iction on the
3ana2e3ent an0 0isposition of all lan0s of the public 0o3ain.8 Thus& 1ENR
0eci0es 4hethe, a,eas un0e, 4ate,& li6e fo,esho,e o, sub3e,2e0 a,eas of
Manila Ba$& shoul0 be ,eclai3e0 o, not. This 3eans that PEA nee0s
autho,iFation f,o3 1ENR befo,e PEA can un0e,ta6e ,ecla3ation p,o5ects in
Manila Ba$& o, in an$ pa,t of the count,$.
1ENR also e@e,cises e@clusi-e 5u,is0iction o-e, the 0isposition of all lan0s of
the public 0o3ain. )ence& 1ENR 0eci0es 4hethe, ,eclai3e0 lan0s of PEA
shoul0 be classifie0 as alienable un0e, Sections H
>1
an0 <
>
of CA No. 1=1.
Once 1ENR 0eci0es that the ,eclai3e0 lan0s shoul0 be so classifie0& it then
,eco33en0s to the P,esi0ent the issuance of a p,ocla3ation classif$in2 the
lan0s as alienable o, 0isposable lan0s of the public 0o3ain open to
0isposition. Ee note that then 1ENR Sec,eta,$ 'ul2encio S. 'acto,an& #,.
counte,si2ne0 Special Patent No. 3!1< in co3pliance 4ith the Re-ise0
A03inist,ati-e Co0e an0 Sections H an0 < of CA No. 1=1.
(n sho,t& 1ENR is -este0 4ith the po4e, to autho,iFe the ,ecla3ation of a,eas
un0e, 4ate,& 4hile PEA is -este0 4ith the po4e, to un0e,ta6e the ph$sical
,ecla3ation of a,eas un0e, 4ate,& 4hethe, 0i,ectl$ o, th,ou2h p,i-ate
cont,acto,s. 1ENR is also e3po4e,e0 to classif$ lan0s of the public 0o3ain
into alienable o, 0isposable lan0s sub5ect to the app,o-al of the P,esi0ent.
On the othe, han0& PEA is tas6e0 to 0e-elop& sell o, lease the ,eclai3e0
alienable lan0s of the public 0o3ain.
Clea,l$& the 3e,e ph$sical act of ,ecla3ation b$ PEA of fo,esho,e o,
sub3e,2e0 a,eas 0oes not 3a6e the ,eclai3e0 lan0s alienable o, 0isposable
lan0s of the public 0o3ain& 3uch less pat,i3onial lan0s of PEA. .i6e4ise&
the 3e,e t,ansfe, b$ the National Go-e,n3ent of lan0s of the public 0o3ain
to PEA 0oes not 3a6e the lan0s alienable o, 0isposable lan0s of the public
0o3ain& 3uch less pat,i3onial lan0s of PEA.
Absent t4o official acts N a classification that these lan0s a,e alienable o,
0isposable an0 open to 0isposition an0 a 0ecla,ation that these lan0s a,e not
nee0e0 fo, public se,-ice& lan0s ,eclai3e0 b$ PEA ,e3ain inalienable lan0s
of the public 0o3ain. Onl$ such an official classification an0 fo,3al
0ecla,ation can con-e,t ,eclai3e0 lan0s into alienable o, 0isposable lan0s of
the public 0o3ain& open to 0isposition un0e, the Constitution& Title ( an0 Title
(((
>3
of CA No. 1=1 an0 othe, applicable la4s.
>=
P2A8s Authority to 'ell Reclaimed $ands
PEA& li6e the .e2al Tas6 'o,ce& a,2ues that as alienable o, 0isposable lan0s
of the public 0o3ain& the ,eclai3e0 lan0s shall be 0ispose0 of in acco,0ance
4ith CA No. 1=1& the Public .an0 Act. PEA& citin2 Section H" of CA No. 1=1&
a03its that ,eclai3e0 lan0s t,ansfe,,e0 to a b,anch o, sub0i-ision of the
2o-e,n3ent 8shall not be alienate0& encu3be,e0& o, othe,4ise 0ispose0 of in
a 3anne, affectin2 its title& e1cept when authori3ed by %ongressC @ @
@.8
>!
7E3phasis b$ PEA9
(n $aurel *s. 4arcia&
>H
the Cou,t cite0 Section => of the Re-ise0
A03inist,ati-e Co0e of 1%><& 4hich states that N
8Sec. =>. Official Autho,iFe0 to Con-e$ Real P,ope,t$. Ehene-e, ,eal
p,ope,t$ of the Go-e,n3ent is authori3ed by law to be con*eyed& the 0ee0 of
con-e$ance shall be e@ecute0 in behalf of the 2o-e,n3ent b$ the follo4in2C @
@ @.8
Thus& the Cou,t conclu0e0 that a la4 is nee0e0 to con-e$ an$ ,eal p,ope,t$
belon2in2 to the Go-e,n3ent. The Cou,t 0ecla,e0 that ;
8(t is not fo, the P,esi0ent to con-e$ ,eal p,ope,t$ of the 2o-e,n3ent on his o,
he, o4n sole 4ill. Any such con*eyance must be authori3ed and appro*ed
by a law enacted by the %ongress. (t ,e?ui,es e@ecuti-e an0 le2islati-e
concu,,ence.8 7E3phasis supplie09
PEA conten0s that P1 No. 1">! an0 EO No. !! constitute the le2islati-e
autho,it$ allo4in2 PEA to sell its ,eclai3e0 lan0s. P1 No. 1">!& issue0 on
'eb,ua,$ =& 1%<<& p,o-i0es that N
8The land reclaimed in the foreshore and offshore area of "anila
/ay pu,suant to the cont,act fo, the ,ecla3ation an0 const,uction of the
Manila;Ca-ite Coastal Roa0 P,o5ect bet4een the Republic of the Philippines
an0 the Const,uction an0 1e-elop3ent Co,po,ation of the Philippines 0ate0
No-e3be, "& 1%<3 an0Do, an$ othe, cont,act o, ,ecla3ation co-e,in2 the
sa3e a,ea is hereby transferred6 con*eyed and assigned to the ownership
and administration of the Public 2states Authority establishe0 pu,suant to P1
No. 1">=I P,o-i0e0& ho4e-e,& That the ,i2hts an0 inte,ests of the
Const,uction an0 1e-elop3ent Co,po,ation of the Philippines pu,suant to the
afo,esai0 cont,act shall be ,eco2niFe0 an0 ,especte0.
)encefo,th& the Public Estates Autho,it$ shall e@e,cise the ,i2hts an0 assu3e
the obli2ations of the Republic of the Philippines 71epa,t3ent of Public
)i2h4a$s9 a,isin2 f,o3& o, inci0ent to& the afo,esai0 cont,act bet4een the
Republic of the Philippines an0 the Const,uction an0 1e-elop3ent
Co,po,ation of the Philippines.
(n consi0e,ation of the fo,e2oin2 t,ansfe, an0 assi2n3ent& the Public Estates
Autho,it$ shall issue in fa-o, of the Republic of the Philippines the
co,,espon0in2 sha,es of stoc6 in sai0 entit$ 4ith an issue0 -alue of sai0
sha,es of stoc6 74hich9 shall be 0ee3e0 full$ pai0 an0 non;assessable.
The Sec,eta,$ of Public )i2h4a$s an0 the Gene,al Mana2e, of the Public
Estates Autho,it$ shall e@ecute such cont,acts o, a2,ee3ents& inclu0in2
app,op,iate a2,ee3ents 4ith the Const,uction an0 1e-elop3ent Co,po,ation
of the Philippines& as 3a$ be necessa,$ to i3ple3ent the abo-e.
'pecial land patentIpatents shall be issued by the 'ecretary of (atural
Resources in fa*or of the Public 2states Authority without pre!udice to the
subsequent transfer to the contractor or his assignees of such portion or
portions of the land reclaimed or to be reclaimed as pro*ided for in the
abo*e0mentioned contract. n the basis of such patents6 the $and
Registration %ommission shall issue the corresponding certificate of title.8
7E3phasis supplie09
On the othe, han0& Section 3 of EO No. !!& issue0 on 'eb,ua,$ 1=& 1%<%&
p,o-i0es that ;
8Sec. 3. All lands reclaimed by P2A shall belong to or be owned by the
P2A 4hich shall be ,esponsible fo, its a03inist,ation& 0e-elop3ent& utiliFation
o, 0isposition in acco,0ance 4ith the p,o-isions of P,esi0ential 1ec,ee No.
1">=. An$ an0 all inco3e that the PEA 3a$ 0e,i-e f,o3 the sale& lease o,
use of ,eclai3e0 lan0s shall be use0 in acco,0ance 4ith the p,o-isions of
P,esi0ential 1ec,ee No. 1">=.8
The,e is no e@p,ess autho,it$ un0e, eithe, P1 No. 1">! o, EO No. !! fo,
PEA to sell its ,eclai3e0 lan0s. P1 No. 1">! 3e,el$ t,ansfe,,e0 8o4ne,ship
an0 a03inist,ation8 of lan0s ,eclai3e0 f,o3 Manila Ba$ to PEA& 4hile EO No.
!! 0ecla,e0 that lan0s ,eclai3e0 b$ PEA 8shall belon2 to o, be o4ne0 b$
PEA.8 EO No. !! e@p,essl$ states that PEA shoul0 0ispose of its ,eclai3e0
lan0s 8in acco,0ance 4ith the p,o-isions of P,esi0ential 1ec,ee No. 1">=&8
the cha,te, of PEA.
PEA:s cha,te,& ho4e-e,& e@p,essl$ tas6s PEA 8to 0e-elop& i3p,o-e& ac?ui,e&
a03iniste,& 0eal in& sub0i-i0e& 0ispose& lease an0 sell any and all Finds of
lands @ @ @ o4ne0& 3ana2e0& cont,olle0 an0Do, ope,ate0 b$ the
2o-e,n3ent.8
><
7E3phasis supplie09 There is6 therefore6 legislati*e authority
granted to P2A to sell its lands6 whether patrimonial or alienable lands of the
public domain. PEA 3a$ sell to p,i-ate pa,ties its patrimonial properties in
acco,0ance 4ith the PEA cha,te, f,ee f,o3 constitutional li3itations. The
constitutional ban on p,i-ate co,po,ations f,o3 ac?ui,in2 alienable lan0s of
the public 0o3ain 0oes not appl$ to the sale of PEA:s pat,i3onial lan0s.
PEA 3a$ also sell its alienable or disposable lands of the public domain to
p,i-ate in0i-i0uals since& 4ith the le2islati-e autho,it$& the,e is no lon2e, an$
statuto,$ p,ohibition a2ainst such sales an0 the constitutional ban 0oes not
appl$ to in0i-i0uals. PEA& ho4e-e,& cannot sell an$ of its alienable o,
0isposable lan0s of the public 0o3ain to p,i-ate co,po,ations since Section 3&
A,ticle K(( of the 1%>< Constitution e@p,essl$ p,ohibits such sales. The
le2islati-e autho,it$ benefits onl$ in0i-i0uals. P,i-ate co,po,ations ,e3ain
ba,,e0 f,o3 ac?ui,in2 an$ 6in0 of alienable lan0 of the public 0o3ain&
inclu0in2 2o-e,n3ent ,eclai3e0 lan0s.
The p,o-ision in P1 No. 1">! statin2 that po,tions of the ,eclai3e0 lan0s
coul0 be t,ansfe,,e0 b$ PEA to the 8cont,acto, o, his assi2nees8 7E3phasis
supplie09 4oul0 not appl$ to p,i-ate co,po,ations but onl$ to in0i-i0uals
because of the constitutional ban. Othe,4ise& the p,o-isions of P1 No. 1">!
4oul0 -iolate both the 1%<3 an0 1%>< Constitutions.
The requirement of public auction in the sale of reclaimed lands
Assu3in2 the ,eclai3e0 lan0s of PEA a,e classifie0 as alienable o,
0isposable lan0s open to 0isposition& an0 fu,the, 0ecla,e0 no lon2e, nee0e0
fo, public se,-ice& PEA 4oul0 ha-e to con0uct a public bi00in2 in sellin2 o,
leasin2 these lan0s. PEA 3ust obse,-e the p,o-isions of Sections H3 an0 H<
of CA No. 1=1 ,e?ui,in2 public auction& in the absence of a la4 e@e3ptin2
PEA f,o3 hol0in2 a public auction.
>>
Special Patent No. 3!1< e@p,essl$
states that the patent is issue0 b$ autho,it$ of the Constitution an0 P1 No.
1">=& 8supple3ente0 b$ Co33on4ealth Act No. 1=1& as a3en0e0.8 This is
an ac6no4le023ent that the p,o-isions of CA No. 1=1 appl$ to the
0isposition of ,eclai3e0 alienable lan0s of the public 0o3ain unless
othe,4ise p,o-i0e0 b$ la4. E@ecuti-e O,0e, No. H!=&
>%
4hich autho,iFes PEA
8to 0ete,3ine the 6in0 an0 3anne, of pa$3ent fo, the t,ansfe,8 of its assets
an0 p,ope,ties& 0oes not e@e3pt PEA f,o3 the ,e?ui,e3ent of public auction.
EO No. H!= 3e,el$ autho,iFes PEA to 0eci0e the 3o0e of pa$3ent& 4hethe,
in 6in0 an0 in install3ent& but 0oes not autho,iFe PEA to 0ispense 4ith public
auction.
Mo,eo-e,& un0e, Section <% of P1 No. 1==!& othe,4ise 6no4n as the
Go-e,n3ent Au0itin2 Co0e& the 2o-e,n3ent is ,e?ui,e0 to sell -aluable
2o-e,n3ent p,ope,t$ th,ou2h public bi00in2. Section <% of P1 No. 1==!
3an0ates that N
8Section <%. #hen go*ernment property has beco3e unse,-iceable fo, an$
cause& o, is no lon2e, nee0e0& it shall& upon application of the office,
accountable the,efo,& be inspecte0 b$ the hea0 of the a2enc$ o, his 0ul$
autho,iFe0 ,ep,esentati-e in the p,esence of the au0ito, conce,ne0 an0& if
foun0 to be -alueless o, unsaleable& it 3a$ be 0est,o$e0 in thei, p,esence. If
found to be *aluable6 it may be sold at public auction to the highest
bidder un0e, the supe,-ision of the p,ope, co33ittee on a4a,0 o, si3ila,
bo0$ in the p,esence of the au0ito, conce,ne0 o, othe, autho,iFe0
,ep,esentati-e of the Co33ission& after ad*ertising by printed notice in the
fficial 4a3ette6 or for not less than three consecuti*e days in any
newspaper of general circulation& o, 4he,e the -alue of the p,ope,t$ 0oes not
4a,,ant the e@pense of publication& b$ notices poste0 fo, a li6e pe,io0 in at
least th,ee public places in the localit$ 4he,e the p,ope,t$ is to be sol0. In the
e*ent that the public auction fails6 the property may be sold at a pri*ate sale
at such price as may be fi1ed by the same committee or body concerned and
appro*ed by the %ommission.8
(t is onl$ 4hen the public auction fails that a ne2otiate0 sale is allo4e0& in
4hich case the Co33ission on Au0it 3ust app,o-e the sellin2 p,ice.
%"
The
Co33ission on Au0it i3ple3ents Section <% of the Go-e,n3ent Au0itin2
Co0e th,ou2h Ci,cula, No. >%;%H
%1
0ate0 #anua,$ <& 1%>%. This ci,cula,
e3phasiFes that 2o-e,n3ent assets 3ust be 0ispose0 of onl$ th,ou2h public
auction& an0 a ne2otiate0 sale can be ,eso,te0 to onl$ in case of 8failu,e of
public auction.8
At the public auction sale& onl$ Philippine citiFens a,e ?ualifie0 to bi0 fo,
PEA:s ,eclai3e0 fo,esho,e an0 sub3e,2e0 alienable lan0s of the public
0o3ain. P,i-ate co,po,ations a,e ba,,e0 f,o3 bi00in2 at the auction sale of
an$ 6in0 of alienable lan0 of the public 0o3ain.
PEA o,i2inall$ sche0ule0 a public bi00in2 fo, the ',ee0o3 (slan0s on
1ece3be, 1"& 1%%1. PEA i3pose0 a con0ition that the 4innin2 bi00e, shoul0
,eclai3 anothe, !" hecta,es of sub3e,2e0 a,eas to ,e2ula,iFe the shape of
the ',ee0o3 (slan0s& un0e, a H";=" sha,in2 of the a00itional ,eclai3e0 a,eas
in fa-o, of the 4innin2 bi00e,.
%
No one& ho4e-e,& sub3itte0 a bi0. On
1ece3be, 3& 1%%=& the Go-e,n3ent Co,po,ate Counsel a0-ise0 PEA it
coul0 sell the ',ee0o3 (slan0s th,ou2h ne2otiation& 4ithout nee0 of anothe,
public bi00in2& because of the failu,e of the public bi00in2 on 1ece3be, 1"&
1%%1.
%3
)o4e-e,& the o,i2inal #*A 0ate0 Ap,il !& 1%%! co-e,e0 not onl$ the ',ee0o3
(slan0s an0 the a00itional !" hecta,es still to be ,eclai3e0& it also 2,ante0
an option to AMAR( to ,eclai3 anothe, 3!" hecta,es. The o,i2inal #*A& a
ne2otiate0 cont,act& enla,2e0 the ,ecla3ation a,ea to -.E hectares.
%=
The
failu,e of public bi00in2 on 1ece3be, 1"& 1%%1& in-ol-in2 onl$ ="<.>=
hecta,es&
%!
is not a -ali0 5ustification fo, a ne2otiate0 sale of <!" hecta,es&
al3ost 0ouble the a,ea publicl$ auctione0. Besi0es& the failu,e of public
bi00in2 happene0 on 1ece3be, 1"& 1%%1& 3o,e than th,ee $ea,s befo,e the
si2nin2 of the o,i2inal #*A on Ap,il !& 1%%!. The econo3ic situation in the
count,$ ha0 2,eatl$ i3p,o-e0 0u,in2 the inte,-enin2 pe,io0.
Reclamation under the /T $aw and the $ocal 4o*ernment %ode
The constitutional p,ohibition in Section 3& A,ticle K(( of the 1%>< Constitution
is absolute an0 clea,C 8P,i-ate co,po,ations o, associations 3a$ not hol0
such alienable lan0s of the public 0o3ain e@cept b$ lease& @ @ @.8 E-en
Republic Act No. H%!< 78BOT .a4&8 fo, b,e-it$9& cite0 b$ PEA an0 AMAR( as
le2islati-e autho,it$ to sell ,eclai3e0 lan0s to p,i-ate pa,ties& ,eco2niFes the
constitutional ban. Section H of RA No. H%!< states N
8Sec. H. Repa$3ent Sche3e. ; 'o, the financin2& const,uction& ope,ation an0
3aintenance of an$ inf,ast,uctu,e p,o5ects un0e,ta6en th,ou2h the buil0;
ope,ate;an0;t,ansfe, a,,an2e3ent o, an$ of its -a,iations pu,suant to the
p,o-isions of this Act& the p,o5ect p,oponent @ @ @ 3a$ li6e4ise be ,epai0 in
the fo,3 of a sha,e in the ,e-enue of the p,o5ect o, othe, non;3oneta,$
pa$3ents& such as& but not li3ite0 to& the 2,ant of a po,tion o, pe,centa2e of
the ,eclai3e0 lan0& sub!ect to the constitutional requirements with respect to
the ownership of the landC @ @ @.8 7E3phasis supplie09
A p,i-ate co,po,ation& e-en one that un0e,ta6es the ph$sical ,ecla3ation of a
2o-e,n3ent BOT p,o5ect& cannot ac?ui,e ,eclai3e0 alienable lan0s of the
public 0o3ain in -ie4 of the constitutional ban.
Section 3" of the .ocal Go-e,n3ent Co0e& also 3entione0 b$ PEA an0
AMAR(& autho,iFes local 2o-e,n3ents in lan0 ,ecla3ation p,o5ects to pa$ the
cont,acto, o, 0e-elope, in 6in0 consistin2 of a pe,centa2e of the ,eclai3e0
lan0& to 4itC
8Section 3". 'inancin2& Const,uction& Maintenance& Ope,ation& an0
Mana2e3ent of (nf,ast,uctu,e P,o5ects b$ the P,i-ate Secto,. @ @ @
@ @ @
(n case of lan0 ,ecla3ation o, const,uction of in0ust,ial estates& the
,epa$3ent plan 3a$ consist of the 2,ant of a po,tion o, pe,centa2e of the
,eclai3e0 lan0 o, the in0ust,ial estate const,ucte0.8
Althou2h Section 3" of the .ocal Go-e,n3ent Co0e 0oes not contain a
p,o-iso si3ila, to that of the BOT .a4& the constitutional ,est,ictions on lan0
o4ne,ship auto3aticall$ appl$ e-en thou2h not e@p,essl$ 3entione0 in the
.ocal Go-e,n3ent Co0e.
Thus& un0e, eithe, the BOT .a4 o, the .ocal Go-e,n3ent Co0e& the
cont,acto, o, 0e-elope,& if a co,po,ate entit$& can onl$ be pai0 4ith leasehol0s
on po,tions of the ,eclai3e0 lan0. (f the cont,acto, o, 0e-elope, is an
in0i-i0ual& po,tions of the ,eclai3e0 lan0& not e@cee0in2 1 hecta,es
%H
of non;
a2,icultu,al lan0s& 3a$ be con-e$e0 to hi3 in o4ne,ship in -ie4 of the
le2islati-e autho,it$ allo4in2 such con-e$ance. This is the onl$ 4a$ these
p,o-isions of the BOT .a4 an0 the .ocal Go-e,n3ent Co0e can a-oi0 a
0i,ect collision 4ith Section 3& A,ticle K(( of the 1%>< Constitution.
Registration of lands of the public domain
'inall$& PEA theo,iFes that the 8act of con-e$in2 the o4ne,ship of the
,eclai3e0 lan0s to public ,espon0ent PEA t,ansfo,3e0 such lan0s of the
public 0o3ain to p,i-ate lan0s.8 This theo,$ is echoe0 b$ AMAR( 4hich
3aintains that the 8issuance of the special patent lea0in2 to the e-entual
issuance of title ta6es the sub5ect lan0 a4a$ f,o3 the lan0 of public 0o3ain
an0 con-e,ts the p,ope,t$ into pat,i3onial o, p,i-ate p,ope,t$.8 (n sho,t& PEA
an0 AMAR( conten0 that 4ith the issuance of Special Patent No. 3!1< an0
the co,,espon0in2 ce,tificates of titles& the 1!<.>= hecta,es co3p,isin2 the
',ee0o3 (slan0s ha-e beco3e p,i-ate lan0s of PEA. (n suppo,t of thei,
theo,$& PEA an0 AMAR( cite the follo4in2 ,ulin2s of the Cou,tC
1. 'umail *. Judge of %)I of %otabato&
%<
4he,e the Cou,t hel0 N
8Once the patent 4as 2,ante0 an0 the co,,espon0in2 ce,tificate of title 4as
issue0& the lan0 cease0 to be pa,t of the public 0o3ain an0 beca3e p,i-ate
p,ope,t$ o-e, 4hich the 1i,ecto, of .an0s has neithe, cont,ol no, 5u,is0iction.8
. $ee Jong JoF *. Da*id&
%>
4he,e the Cou,t 0ecla,e0 ;
8Afte, the ,e2ist,ation an0 issuance of the ce,tificate an0 0uplicate ce,tificate
of title base0 on a public lan0 patent& the lan0 co-e,e0 the,eb$ auto3aticall$
co3es un0e, the ope,ation of Republic Act =%H sub5ect to all the safe2ua,0s
p,o-i0e0 the,ein.83. Jeirs of 4regorio Tengco *. Jeirs of Jose
Aliwalas&
%%
4he,e the Cou,t ,ule0 ;
8Ehile the 1i,ecto, of .an0s has the po4e, to ,e-ie4 ho3estea0 patents& he
3a$ 0o so onl$ so lon2 as the lan0 ,e3ains pa,t of the public 0o3ain an0
continues to be un0e, his e@clusi-e cont,olI but once the patent is ,e2iste,e0
an0 a ce,tificate of title is issue0& the lan0 ceases to be pa,t of the public
0o3ain an0 beco3es p,i-ate p,ope,t$ o-e, 4hich the 1i,ecto, of .an0s has
neithe, cont,ol no, 5u,is0iction.8
=. "analo *. Intermediate Appellate %ourt&
1""
4he,e the Cou,t hel0 N
8Ehen the lots in 0ispute 4e,e ce,tifie0 as 0isposable on Ma$ 1%& 1%<1& an0
f,ee patents 4e,e issue0 co-e,in2 the sa3e in fa-o, of the p,i-ate
,espon0ents& the sai0 lots cease0 to be pa,t of the public 0o3ain an0&
the,efo,e& the 1i,ecto, of .an0s lost 5u,is0iction o-e, the sa3e.8
!.Republic -. Cou,t of Appeals&
1"1
4he,e the Cou,t state0 N
8P,ocla3ation No. 3!"& 0ate0 Octobe, %& 1%!H& of P,esi0ent Ma2sa$sa$
le2all$ effecte0 a lan0 2,ant to the Min0anao Me0ical Cente,& Bu,eau of
Me0ical Se,-ices& 1epa,t3ent of )ealth& of the 4hole lot& -ali0l$ sufficient fo,
initial ,e2ist,ation un0e, the .an0 Re2ist,ation Act. Such lan0 2,ant is
constituti-e of a :fee si3ple: title o, absolute title in fa-o, of petitione,
Min0anao Me0ical Cente,. Thus& Section 1 of the Act& 4hich 2o-e,ns the
,e2ist,ation of 2,ants o, patents in-ol-in2 public lan0s& p,o-i0es that
:Ehene-e, public lan0s in the Philippine (slan0s belon2in2 to the
Go-e,n3ent of the Unite0 States o, to the Go-e,n3ent of the Philippines a,e
alienate0& 2,ante0 o, con-e$e0 to pe,sons o, to public o, p,i-ate
co,po,ations& the sa3e shall be b,ou2ht fo,th4ith un0e, the ope,ation of this
Act 7.an0 Re2ist,ation Act& Act =%H9 an0 shall beco3e ,e2iste,e0 lan0s.:8
The fi,st fou, cases cite0 in-ol-e petitions to cancel the lan0 patents an0 the
co,,espon0in2 ce,tificates of titlesissued to pri*ate parties. These fou, cases
unifo,3l$ hol0 that the 1i,ecto, of .an0s has no 5u,is0iction o-e, p,i-ate lan0s
o, that upon issuance of the ce,tificate of title the lan0 auto3aticall$ co3es
un0e, the To,,ens S$ste3. The fifth case cite0 in-ol-es the ,e2ist,ation un0e,
the To,,ens S$ste3 of a 1.>;hecta,e public lan0 2,ante0 b$ the National
Go-e,n3ent to Min0anao Me0ical Cente,& a 2o-e,n3ent unit un0e, the
1epa,t3ent of )ealth. The National Go-e,n3ent t,ansfe,,e0 the 1.>;hecta,e
public lan0 to se,-e as the site fo, the hospital buil0in2s an0 othe, facilities of
Min0anao Me0ical Cente,& 4hich pe,fo,3e0 a public se,-ice. The Cou,t
affi,3e0 the ,e2ist,ation of the 1.>;hecta,e public lan0 in the na3e of
Min0anao Me0ical Cente, un0e, Section 1 of Act No. =%H. This fifth case is
an e@a3ple of a public lan0 bein2 ,e2iste,e0 un0e, Act No. =%H 4ithout the
lan0 losin2 its cha,acte, as a p,ope,t$ of public 0o3inion.
(n the instant case& the onl$ patent an0 ce,tificates of title issue0 a,e those in
the na3e of PEA& a 4holl$ 2o-e,n3ent o4ne0 co,po,ation pe,fo,3in2 public
as 4ell as p,op,ieta,$ functions. No patent o, ce,tificate of title has been
issue0 to an$ p,i-ate pa,t$. No one is as6in2 the 1i,ecto, of .an0s to cancel
PEA:s patent o, ce,tificates of title. (n fact& the th,ust of the instant petition is
that PEA:s ce,tificates of title shoul0 ,e3ain 4ith PEA& an0 the lan0 co-e,e0
b$ these ce,tificates& bein2 alienable lan0s of the public 0o3ain& shoul0 not
be sol0 to a p,i-ate co,po,ation.
Re2ist,ation of lan0 un0e, Act No. =%H o, P1 No. 1!% 0oes not -est in the
,e2ist,ant p,i-ate o, public o4ne,ship of the lan0. Re2ist,ation is not a 3o0e
of ac?ui,in2 o4ne,ship but is 3e,el$ e-i0ence of o4ne,ship p,e-iousl$
confe,,e0 b$ an$ of the ,eco2niFe0 3o0es of ac?ui,in2 o4ne,ship.
Re2ist,ation 0oes not 2i-e the ,e2ist,ant a bette, ,i2ht than 4hat the
,e2ist,ant ha0 p,io, to the ,e2ist,ation.
1"
The ,e2ist,ation of lan0s of the
public 0o3ain un0e, the To,,ens s$ste3& b$ itself& cannot con-e,t public
lan0s into p,i-ate lan0s.
1"3
#u,isp,u0ence hol0in2 that upon the 2,ant of the patent o, issuance of the
ce,tificate of title the alienable lan0 of the public 0o3ain auto3aticall$
beco3es p,i-ate lan0 cannot appl$ to 2o-e,n3ent units an0 entities li6e
PEA. The t,ansfe, of the ',ee0o3 (slan0s to PEA 4as 3a0e sub5ect to the
p,o-isions of CA No. 1=1 as e@p,essl$ state0 in Special Patent No. 3!1<
issue0 b$ then P,esi0ent A?uino& to 4itC
8NOE& T)ERE'ORE& JNOE /E& that b$ autho,it$ of the Constitution of the
Philippines an0 in confo,3it$ 4ith the p,o-isions of P,esi0ential 1ec,ee No.
1">=6 supplemented by %ommonwealth Act (o. ;@;6 as amended& the,e a,e
he,eb$ 2,ante0 an0 con-e$e0 unto the Public Estates Autho,it$ the afo,esai0
t,acts of lan0 containin2 a total a,ea of one 3illion nine hun0,e0 fifteen
thousan0 ei2ht hun0,e0 ninet$ fou, 71&%1!&>%=9 s?ua,e 3ete,sI the technical
0esc,iption of 4hich a,e he,eto attache0 an0 3a0e an inte2,al pa,t he,eof.8
7E3phasis supplie09
Thus& the p,o-isions of CA No. 1=1 appl$ to the ',ee0o3 (slan0s on 3atte,s
not co-e,e0 b$ P1 No. 1">=. Section H" of CA No. 1=1 p,ohibits& 8e@cept
4hen autho,iFe0 b$ Con2,ess&8 the sale of alienable lan0s of the public
0o3ain that a,e t,ansfe,,e0 to 2o-e,n3ent units o, entities. Section H" of CA
No. 1=1 constitutes& un0e, Section == of P1 No. 1!%& a 8statuto,$ lien
affectin2 title8 of the ,e2iste,e0 lan0 e-en if not annotate0 on the ce,tificate of
title.
1"=
Alienable lan0s of the public 0o3ain hel0 b$ 2o-e,n3ent entities un0e,
Section H" of CA No. 1=1 ,e3ain public lan0s because the$ cannot be
alienate0 o, encu3be,e0 unless Con2,ess passes a la4 autho,iFin2 thei,
0isposition. Con2,ess& ho4e-e,& cannot autho,iFe the sale to p,i-ate
co,po,ations of ,eclai3e0 alienable lan0s of the public 0o3ain because of
the constitutional ban. Onl$ in0i-i0uals can benefit f,o3 such la4.
The 2,ant of le2islati-e autho,it$ to sell public lan0s in acco,0ance 4ith
Section H" of CA No. 1=1 0oes not auto3aticall$ con-e,t alienable lan0s of
the public 0o3ain into p,i-ate o, pat,i3onial lan0s. The alienable lan0s of the
public 0o3ain 3ust be t,ansfe,,e0 to ?ualifie0 p,i-ate pa,ties& o, to
2o-e,n3ent entities not tas6e0 to 0ispose of public lan0s& befo,e these lan0s
can beco3e p,i-ate o, pat,i3onial lan0s. Othe,4ise& the constitutional ban
4ill beco3e illuso,$ if Con2,ess can 0ecla,e lan0s of the public 0o3ain as
p,i-ate o, pat,i3onial lan0s in the han0s of a 2o-e,n3ent a2enc$ tas6e0 to
0ispose of public lan0s. This 4ill allo4 p,i-ate co,po,ations to ac?ui,e 0i,ectl$
f,o3 2o-e,n3ent a2encies li3itless a,eas of lan0s 4hich& p,io, to such la4&
a,e conce0e0l$ public lan0s.
Un0e, EO No. !!& PEA beca3e the central implementing agency of the
National Go-e,n3ent to ,eclai3 fo,esho,e an0 sub3e,2e0 a,eas of the
public 0o3ain. Thus& EO No. !! 0ecla,es that N
8EKECUT(*E OR1ER NO. !!
1esi2natin2 the Public Estates Autho,it$ as the A2enc$ P,i3a,il$
Responsible fo, all Recla3ation P,o5ects
Ehe,eas& the,e a,e se-e,al ,ecla3ation p,o5ects 4hich a,e on2oin2 o, bein2
p,opose0 to be un0e,ta6en in -a,ious pa,ts of the count,$ 4hich nee0 to be
e-aluate0 fo, consistenc$ 4ith national p,o2,a3sI
Ehe,eas& the,e is a nee0 to 2i-e fu,the, institutional suppo,t to the
Go-e,n3ent:s 0ecla,e0 polic$ to p,o-i0e fo, a coo,0inate0& econo3ical an0
efficient ,ecla3ation of lan0sI
Ehe,eas& P,esi0ential 1ec,ee No. 3;A ,e?ui,es that all ,ecla3ation of a,eas
shall be li3ite0 to the National Go-e,n3ent o, an$ pe,son autho,iFe0 b$ it
un0e, p,ope, cont,actI
#hereas6 a central authority is needed to act on behalf of the (ational
4o*ernment which shall ensure a coordinated and integrated approach in
the reclamation of landsD
#hereas6 Presidential Decree (o. ;E>@ creates the Public 2states Authority
as a go*ernment corporation to undertaFe reclamation of lands and ensure
their ma1imum utili3ation in promoting public welfare and interestsI an0
Ehe,eas& P,esi0ential 1ec,ee No. 1=1H p,o-i0es the P,esi0ent 4ith
continuin2 autho,it$ to ,eo,2aniFe the national 2o-e,n3ent inclu0in2 the
t,ansfe,& abolition& o, 3e,2e, of functions an0 offices.
NOE& T)ERE'ORE& (& 'ER1(NAN1 E. MARCOS& P,esi0ent of the
Philippines& b$ -i,tue of the po4e,s -este0 in 3e b$ the Constitution an0
pu,suant to P,esi0ential 1ec,ee No. 1=1H& 0o he,eb$ o,0e, an0 0i,ect the
follo4in2C
Section 1. The Public 2states Authority BP2AC shall be primarily responsible
for integrating6 directing6 and coordinating all reclamation pro!ects for and on
behalf of the (ational 4o*ernment. All ,ecla3ation p,o5ects shall be
app,o-e0 b$ the P,esi0ent upon ,eco33en0ation of the PEA& an0 shall be
un0e,ta6en b$ the PEA o, th,ou2h a p,ope, cont,act e@ecute0 b$ it 4ith an$
pe,son o, entit$I P,o-i0e0& that& ,ecla3ation p,o5ects of an$ national
2o-e,n3ent a2enc$ o, entit$ autho,iFe0 un0e, its cha,te, shall be un0e,ta6en
in consultation 4ith the PEA upon app,o-al of the P,esi0ent.
@ @ @ .8
As the cent,al i3ple3entin2 a2enc$ tas6e0 to un0e,ta6e ,ecla3ation p,o5ects
nation4i0e& 4ith autho,it$ to sell ,eclai3e0 lan0s& PEA too6 the place of
1ENR as the 2o-e,n3ent a2enc$ cha,2e0 4ith leasin2 o, sellin2 ,eclai3e0
lan0s of the public 0o3ain. The ,eclai3e0 lan0s bein2 lease0 o, sol0 b$ PEA
a,e not p,i-ate lan0s& in the sa3e 3anne, that 1ENR& 4hen it 0isposes of
othe, alienable lan0s& 0oes not 0ispose of p,i-ate lan0s but alienable lan0s of
the public 0o3ain. Onl$ 4hen ?ualifie0 p,i-ate pa,ties ac?ui,e these lan0s
4ill the lan0s beco3e p,i-ate lan0s. In the hands of the go*ernment agency
tasFed and authori3ed to dispose of alienable of disposable lands of the
public domain6 these lands are still public6 not pri*ate lands.
'u,the,3o,e& PEA:s cha,te, e@p,essl$ states that PEA 8shall hold lands of the
public domain8 as 4ell as 8an$ an0 all 6in0s of lan0s.8 PEA can hol0 both
lan0s of the public 0o3ain an0 p,i-ate lan0s. Thus& the 3e,e fact that
alienable lan0s of the public 0o3ain li6e the ',ee0o3 (slan0s a,e t,ansfe,,e0
to PEA an0 issue0 lan0 patents o, ce,tificates of title in PEA:s na3e 0oes not
auto3aticall$ 3a6e such lan0s p,i-ate.
To allo4 -ast a,eas of ,eclai3e0 lan0s of the public 0o3ain to be t,ansfe,,e0
to PEA as p,i-ate lan0s 4ill sanction a 2,oss -iolation of the constitutional
ban on p,i-ate co,po,ations f,o3 ac?ui,in2 an$ 6in0 of alienable lan0 of the
public 0o3ain. PEA 4ill si3pl$ tu,n a,oun0& as P2A has now done under the
Amended J7A& an0 t,ansfe, se-e,al hun0,e0s of hecta,es of these ,eclai3e0
an0 still to be ,eclai3e0 lan0s to a sin2le p,i-ate co,po,ation in onl$ one
t,ansaction. This sche3e 4ill effecti-el$ nullif$ the constitutional ban in
Section 3& A,ticle K(( of the 1%>< Constitution 4hich 4as inten0e0 to 0iffuse
e?uitabl$ the o4ne,ship of alienable lan0s of the public 0o3ain a3on2
'ilipinos& no4 nu3be,in2 o-e, >" 3illion st,on2.
This sche3e& if allo4e0& can e-en be applie0 to alienable a2,icultu,al lan0s
of the public 0o3ain since PEA can 8ac?ui,e @ @ @ an$ an0 all 6in0s of lan0s.8
This 4ill open the floo02ates to co,po,ations an0 e-en in0i-i0uals ac?ui,in2
hun0,e0s of hecta,es of alienable lan0s of the public 0o3ain un0e, the 2uise
that in the han0s of PEA these lan0s a,e p,i-ate lan0s. This 4ill ,esult in
co,po,ations a3assin2 hu2e lan0hol0in2s ne-e, befo,e seen in this count,$ ;
c,eatin2 the -e,$ e-il that the constitutional ban 4as 0esi2ne0 to p,e-ent.
This 4ill co3pletel$ ,e-e,se the clea, 0i,ection of constitutional 0e-elop3ent
in this count,$. The 1%3! Constitution allo4e0 p,i-ate co,po,ations to ac?ui,e
not 3o,e than 1&"= hecta,es of public lan0s.
1"!
The 1%<3 Constitution
p,ohibite0 p,i-ate co,po,ations f,o3 ac?ui,in2 an$ 6in0 of public lan0& an0 the
1%>< Constitution has une?ui-ocall$ ,eite,ate0 this p,ohibition.
The contention of PEA an0 AMAR( that public lan0s& once ,e2iste,e0 un0e,
Act No. =%H o, P1 No. 1!%& auto3aticall$ beco3e p,i-ate lan0s is cont,a,$
to e@istin2 la4s. Se-e,al la4s autho,iFe lan0s of the public 0o3ain to be
,e2iste,e0 un0e, the To,,ens S$ste3 o, Act No. =%H& no4 P1 No. 1!%&
4ithout losin2 thei, cha,acte, as public lan0s. Section 1 of Act No. =%H&
an0 Section 1"3 of P1 No. 1!%& ,especti-el$& p,o-i0e as follo4sC
Act No. =%H
8Sec. 1. Ehene-e, public lan0s in the Philippine (slan0s belon2in2 to the @
@ @ Go-e,n3ent of the Philippine (slan0s a,e alienate0& 2,ante0& o, con-e$e0
to pe,sons o, the public or pri*ate corporations& the sa3e shall be b,ou2ht
fo,th4ith un0e, the ope,ation of this Act an0 shall beco3e ,e2iste,e0 lan0s.8
P1 No. 1!%
8Sec. 1"3. Ce,tificate of Title to Patents. Ehene-e, public lan0 is b$ the
Go-e,n3ent alienate0& 2,ante0 o, con-e$e0 to any person& the sa3e shall
be b,ou2ht fo,th4ith un0e, the ope,ation of this 1ec,ee.8 7E3phasis supplie09
Base0 on its le2islati-e histo,$& the ph,ase 8con-e$e0 to an$ pe,son8 in
Section 1"3 of P1 No. 1!% inclu0es con-e$ances of public lan0s to public
co,po,ations.
Alienable lan0s of the public 0o3ain 82,ante0& 0onate0& o, t,ansfe,,e0 to a
p,o-ince& 3unicipalit$& o, b,anch o, sub0i-ision of the Go-e,n3ent&8 as
p,o-i0e0 in Section H" of CA No. 1=1& 3a$ be ,e2iste,e0 un0e, the To,,ens
S$ste3 pu,suant to Section 1"3 of P1 No. 1!%. Such ,e2ist,ation& ho4e-e,&
is e@p,essl$ sub5ect to the con0ition in Section H" of CA No. 1=1 that the lan0
8shall not be alienate0& encu3be,e0 o, othe,4ise 0ispose0 of in a manner
affecting its title6 e1cept when authori3ed by %ongress.8 This p,o-ision ,efe,s
to 2o-e,n3ent ,eclai3e0& fo,esho,e an0 3a,sh$ lan0s of the public 0o3ain
that ha-e been title0 but still cannot be alienate0 o, encu3be,e0 unless
e@p,essl$ autho,iFe0 b$ Con2,ess. The nee0 fo, le2islati-e autho,it$ p,e-ents
the ,e2iste,e0 lan0 of the public 0o3ain f,o3 beco3in2 p,i-ate lan0 that can
be 0ispose0 of to ?ualifie0 p,i-ate pa,ties.
The Re-ise0 A03inist,ati-e Co0e of 1%>< also ,eco2niFes that lan0s of the
public 0o3ain 3a$ be ,e2iste,e0 un0e, the To,,ens S$ste3. Section =>&
Chapte, 1& Boo6 ( of the Co0e states N
8Sec. =>. Official Autho,iFe0 to Con-e$ Real P,ope,t$. Ehene-e, ,eal
p,ope,t$ of the Go-e,n3ent is autho,iFe0 b$ la4 to be con-e$e0& the 0ee0 of
con-e$ance shall be e@ecute0 in behalf of the 2o-e,n3ent b$ the follo4in2C
719 @ @ @
79 )or property belonging to the Republic of the Philippines6 but titled in the
name of any political subdi*ision or of any corporate agency or
instrumentality& b$ the e@ecuti-e hea0 of the a2enc$ o, inst,u3entalit$.8
7E3phasis supplie09
Thus& p,i-ate p,ope,t$ pu,chase0 b$ the National Go-e,n3ent fo, e@pansion
of a public 4ha,f 3a$ be title0 in the na3e of a 2o-e,n3ent co,po,ation
,e2ulatin2 po,t ope,ations in the count,$. P,i-ate p,ope,t$ pu,chase0 b$ the
National Go-e,n3ent fo, e@pansion of an ai,po,t 3a$ also be title0 in the
na3e of the 2o-e,n3ent a2enc$ tas6e0 to a03iniste, the ai,po,t. P,i-ate
p,ope,t$ 0onate0 to a 3unicipalit$ fo, use as a to4n plaFa o, public school
site 3a$ li6e4ise be title0 in the na3e of the 3unicipalit$.
1"H
All these
p,ope,ties beco3e p,ope,ties of the public 0o3ain& an0 if al,ea0$ ,e2iste,e0
un0e, Act No. =%H o, P1 No. 1!%& ,e3ain ,e2iste,e0 lan0. The,e is no
,e?ui,e3ent o, p,o-ision in an$ e@istin2 la4 fo, the 0e;,e2ist,ation of lan0
f,o3 the To,,ens S$ste3.
P,i-ate lan0s ta6en b$ the Go-e,n3ent fo, public use un0e, its po4e, of
e3inent 0o3ain beco3e un?uestionabl$ pa,t of the public 0o3ain.
Ne-e,theless& Section >! of P1 No. 1!% autho,iFes the Re2iste, of 1ee0s to
issue in the na3e of the National Go-e,n3ent ne4 ce,tificates of title
co-e,in2 such e@p,op,iate0 lan0s. Section >! of P1 No. 1!% states N
8Sec. >!. .an0 ta6en b$ e3inent 0o3ain. Ehene-e, an$ ,e2iste,e0 lan0& o,
inte,est the,ein& is e@p,op,iate0 o, ta6en b$ e3inent 0o3ain& the National
Go-e,n3ent& p,o-ince& cit$ o, 3unicipalit$& o, an$ othe, a2enc$ o,
inst,u3entalit$ e@e,cisin2 such ,i2ht shall file fo, ,e2ist,ation in the p,ope,
Re2ist,$ a ce,tifie0 cop$ of the 5u023ent 4hich shall state 0efinitel$ b$ an
a0e?uate 0esc,iption& the pa,ticula, p,ope,t$ o, inte,est e@p,op,iate0& the
nu3be, of the ce,tificate of title& an0 the natu,e of the public use. A
3e3o,an0u3 of the ,i2ht o, inte,est ta6en shall be 3a0e on each ce,tificate
of title b$ the Re2iste, of 1ee0s& an0 4he,e the fee si3ple is ta6en& a new
certificate shall be issued in fa*or of the (ational 4o*ernment6 pro*ince6 city6
municipality& o, an$ othe, a2enc$ o, inst,u3entalit$ e@e,cisin2 such ,i2ht fo,
the lan0 so ta6en. The le2al e@penses inci0ent to the 3e3o,an0u3 of
,e2ist,ation o, issuance of a ne4 ce,tificate of title shall be fo, the account of
the autho,it$ ta6in2 the lan0 o, inte,est the,ein.8 7E3phasis supplie09
Conse?uentl$& lan0s ,e2iste,e0 un0e, Act No. =%H o, P1 No. 1!% a,e not
e@clusi-el$ p,i-ate o, pat,i3onial lan0s. .an0s of the public 0o3ain 3a$ also
be ,e2iste,e0 pu,suant to e@istin2 la4s.
AMAR( 3a6es a pa,tin2 shot that the A3en0e0 #*A is not a sale to AMAR( of
the ',ee0o3 (slan0s o, of the lan0s to be ,eclai3e0 f,o3 sub3e,2e0 a,eas
of Manila Ba$. (n the 4o,0s of AMAR(& the A3en0e0 #*A 8is not a sale but a
5oint -entu,e 4ith a stipulation fo, ,ei3bu,se3ent of the o,i2inal cost incu,,e0
b$ PEA fo, the ea,lie, ,ecla3ation an0 const,uction 4o,6s pe,fo,3e0 b$ the
C1CP un0e, its 1%<3 cont,act 4ith the Republic.8 Ehethe, the A3en0e0 #*A
is a sale o, a 5oint -entu,e& the fact ,e3ains that the A3en0e0 #*A ,e?ui,es
PEA to 8cause the issuance an0 0eli-e,$ of the ce,tificates of title con-e$in2
AMAR(:s .an0 Sha,e in the na3e of AMAR(.8
1"<
This stipulation still cont,a-enes Section 3& A,ticle K(( of the 1%>< Constitution
4hich p,o-i0es that p,i-ate co,po,ations 8shall not hol0 such alienable lan0s
of the public 0o3ain e@cept b$ lease.8 The t,ansfe, of title an0 o4ne,ship to
AMAR( clea,l$ 3eans that AMAR( 4ill 8hol08 the ,eclai3e0 lan0s othe, than
b$ lease. The t,ansfe, of title an0 o4ne,ship is a 80isposition8 of the
,eclai3e0 lan0s& a t,ansaction consi0e,e0 a sale o, alienation un0e, CA No.
1=1&
1">
the Go-e,n3ent Au0itin2 Co0e&
1"%
an0 Section 3& A,ticle K(( of the
1%>< Constitution.
The Re2alian 0oct,ine is 0eepl$ i3plante0 in ou, le2al s$ste3. 'o,esho,e
an0 sub3e,2e0 a,eas fo,3 pa,t of the public 0o3ain an0 a,e inalienable.
.an0s ,eclai3e0 f,o3 fo,esho,e an0 sub3e,2e0 a,eas also fo,3 pa,t of the
public 0o3ain an0 a,e also inalienable& unless con-e,te0 pu,suant to la4 into
alienable o, 0isposable lan0s of the public 0o3ain. )isto,icall$& lan0s
,eclai3e0 b$ the 2o-e,n3ent a,e sui generis& not a-ailable fo, sale to p,i-ate
pa,ties unli6e othe, alienable public lan0s. Reclai3e0 lan0s ,etain thei,
inhe,ent potential as a,eas fo, public use o, public se,-ice. Alienable lan0s of
the public 0o3ain& inc,easin2l$ beco3in2 sca,ce natu,al ,esou,ces& a,e to be
0ist,ibute0 e?uitabl$ a3on2 ou, e-e,;2,o4in2 population. To insu,e such
e?uitable 0ist,ibution& the 1%<3 an0 1%>< Constitutions ha-e ba,,e0 p,i-ate
co,po,ations f,o3 ac?ui,in2 an$ 6in0 of alienable lan0 of the public 0o3ain.
Those 4ho atte3pt to 0ispose of inalienable natu,al ,esou,ces of the State&
o, see6 to ci,cu3-ent the constitutional ban on alienation of lan0s of the
public 0o3ain to p,i-ate co,po,ations& 0o so at thei, o4n ,is6.
Ee can no4 su33a,iFe ou, conclusions as follo4sC
1. The 1!<.>= hecta,es of ,eclai3e0 lan0s co3p,isin2 the ',ee0o3 (slan0s&
no4 co-e,e0 b$ ce,tificates of title in the na3e of PEA& a,e alienable lands of
the public domain. PEA 3a$ lease these lan0s to p,i-ate co,po,ations but
3a$ not sell o, t,ansfe, o4ne,ship of these lan0s to p,i-ate co,po,ations. PEA
3a$ onl$ sell these lan0s to Philippine citiFens& sub5ect to the o4ne,ship
li3itations in the 1%>< Constitution an0 e@istin2 la4s.
. The !%.1! hecta,es of sub3e,2e0 a,eas of Manila Ba$ ,e3ain inalienable
natu,al ,esou,ces of the public 0o3ain until classifie0 as alienable o,
0isposable lan0s open to 0isposition an0 0ecla,e0 no lon2e, nee0e0 fo,
public se,-ice. The 2o-e,n3ent can 3a6e such classification an0 0ecla,ation
onl$ afte, PEA has ,eclai3e0 these sub3e,2e0 a,eas. Onl$ then can these
lan0s ?ualif$ as a2,icultu,al lan0s of the public 0o3ain& 4hich a,e the onl$
natu,al ,esou,ces the 2o-e,n3ent can alienate. (n thei, p,esent state& the
!%.1! hecta,es of sub3e,2e0 a,eas are inalienable and outside the
commerce of man.
3. Since the A3en0e0 #*A see6s to t,ansfe, to AMAR(& a p,i-ate co,po,ation&
o4ne,ship of <<.3= hecta,es
11"
of the ',ee0o3 (slan0s& such t,ansfe, is -oi0
fo, bein2 cont,a,$ to Section 3& A,ticle K(( of the 1%>< Constitution 4hich
p,ohibits p,i-ate co,po,ations f,o3 ac?ui,in2 an$ 6in0 of alienable lan0 of the
public 0o3ain.
=. Since the A3en0e0 #*A also see6s to t,ansfe, to AMAR( o4ne,ship of
%".1!H hecta,es
111
of still sub3e,2e0 a,eas of Manila Ba$& such t,ansfe, is
-oi0 fo, bein2 cont,a,$ to Section & A,ticle K(( of the 1%>< Constitution 4hich
p,ohibits the alienation of natu,al ,esou,ces othe, than a2,icultu,al lan0s of
the public 0o3ain. PEA 3a$ ,eclai3 these sub3e,2e0 a,eas. The,eafte,& the
2o-e,n3ent can classif$ the ,eclai3e0 lan0s as alienable o, 0isposable& an0
fu,the, 0ecla,e the3 no lon2e, nee0e0 fo, public se,-ice. Still& the t,ansfe, of
such ,eclai3e0 alienable lan0s of the public 0o3ain to AMAR( 4ill be -oi0 in
-ie4 of Section 3& A,ticle K(( of the 1%>< Constitution 4hich p,ohibits p,i-ate
co,po,ations f,o3 ac?ui,in2 an$ 6in0 of alienable lan0 of the public 0o3ain.
Clea,l$& the A3en0e0 #*A -iolates 2la,in2l$ Sections an0 3& A,ticle K(( of
the 1%>< Constitution. Un0e, A,ticle 1="%
11
of the Ci-il Co0e& cont,acts
4hose 8ob5ect o, pu,pose is cont,a,$ to la4&8 o, 4hose 8ob5ect is outsi0e the
co33e,ce of 3en&8 a,e 8ine@istent an0 -oi0 f,o3 the be2innin2.8 The Cou,t
3ust pe,fo,3 its 0ut$ to 0efen0 an0 uphol0 the Constitution& an0 the,efo,e
0ecla,es the A3en0e0 J7A null and *oid ab initio.
'e*enth issue: whether the %ourt is the proper forum to raise the issue of
whether the Amended J7A is grossly disad*antageous to the go*ernment.
Consi0e,in2 that the A3en0e0 #*A is null an0 -oi0 ab initio& the,e is no
necessit$ to ,ule on this last issue. Besi0es& the Cou,t is not a t,ie, of facts&
an0 this last issue in-ol-es a 0ete,3ination of factual 3atte,s.
E)ERE'ORE& the petition is GRANTE1. The Public Estates Autho,it$ an0
A3a,i Coastal Ba$ 1e-elop3ent Co,po,ation a,e PERMANENT./
EN#O(NE1 f,o3 i3ple3entin2 the A3en0e0 #oint *entu,e A2,ee3ent 4hich
is he,eb$ 0ecla,e0 NU.. an0 *O(1 ab initio.
SO OR1ERE1.
Da*ide6 Jr.6 %.J.6 /ellosillo6 Puno6 7itug6 Kapunan6 "endo3a6 Panganiban6
Luisumbing6 9nares0'antiago6 'ando*al04utierre36 Austria0"artine36 and
%orona6 JJ.6 concu,.
'ootnote
1
Section = of P1 No. 1">=.

PEA:s Me3o,an0u3 0ate0 Au2ust =& 1%%%& p. 3.

3
PEA:s Me3o,an0u3& sup,a note at <. PEA:s Me3o,an0u3 ?uote0
e@tensi-el$& in its State3ent of 'acts an0 the Case& the State3ent of 'acts in
Senate Co33ittee Repo,t No. !H" 0ate0 Septe3be, 1H& 1%%<.
=
(n Opinion No. 33" 0ate0 1ece3be, 3& 1%%=& the Go-e,n3ent Co,po,ate
Counsel& citin2 COA Au0it Ci,cula, No. >%;%H& a0-ise0 PEA that PEA coul0
ne2otiate the sale of the 1!<.>=;hecta,e ',ee0o3 (slan0s in -ie4 of the
failu,e of the public bi00in2 hel0 on 1ece3be, 1"& 1%%1 4he,e the,e 4as not
a sin2le bi00e,. See also Senate Co33ittee Repo,t No. !H"& p. 1.
!
PEA:s Me3o,an0u3& sup,a note at %.
H
Ibid.
<
The e@istence of this ,epo,t is a 3atte, of 5u0icial notice pu,suant to Section
1& Rule 1% of the Rules of Cou,t 4hich p,o-i0es& 8A cou,t shall ta6e 5u0icial
notice& 4ithout the int,o0uction of e-i0ence& of @ @ @ the official acts of the
le2islatu,e @ @ @.8
>
Teofisto Guin2ona& #,.
%
Renato Ca$etano.
1"
*i,2ilio C. Abe5o.
11
Repo,t an0 Reco33en0ation of the .e2al Tas6 'o,ce& Anne@ 8C8& AMAR(:s
Me3o,an0u3 0ate0 #une 1%& 1%%%.
1
AMAR(:s Co33ent 0ate0 #une =& 1%%>& p. 3I Rollo& p. H>.
13
AMAR( file0 th,ee 3otions fo, e@tension of ti3e to file co33ent 7Rollo& pp.
3& 3>& =>9& 4hile PEA file0 nine 3otions fo, e@tension of ti3e 7Rollo& pp.
1<& 13%9.
1=
Petitione,:s Me3o,an0u3 0ate0 #ul$ H& 1%%%& p. =.
1!
Rep,esente0 b$ the Office of the Solicito, Gene,al& 4ith Solicito, Gene,al
Rica,0o P. Gal-eF& Assistant Solicito, Gene,al AFucena R. Balanon;Co,puF&
an0 Associate Solicito, Ra$3un0 (. Ri2o0on si2nin2 PEA:s Me3o,an0u3.
1H
Rep,esente0 b$ AFcuna /o,ac A,,o$o R Chua .a4 Offices& an0 Ro3ulo
Mabanta Sa$oc R 1e los An2eles .a4 Offices.
1<
Salon2a -. PaGo& 13= SCRA =3> 71%>!9I GonFales -. Ma,cos& H! SCRA
H= 71%<! 9I A?uino -. En,ile& !% SCRA 1>3 71%<= 9I 1ela Ca3a,a -. Ena2e&
=1 SCRA 1 71%<1 9.
1>
Section 11& A,ticle K(*.
1%
Manila Elect,ic Co. -. #u02e '. Cast,o;Ba,tolo3e& 11= SCRA <%% 71%>9I
Republic -. CA an0 (2lesia& an0 Republic -. Cen0ana an0 (2lesia ni C,isto&
11% SCRA ==% 71%>9I Republic -. *illanue-a an0 (2lesia ni C,isto& 11=
SCRA ><! 71%>9I 1i,ecto, of .an0s -. .oo0& 1= SCRA =H" 71%>39I
Republic -. (2lesia ni C,isto& 1> SCRA == 71%>=9I 1i,ecto, of .an0s -.
)e,3anos $ )e,3anas 0e Sta. C,uF 0e Ma$o& (nc.& 1=1 SCRA 1 71%>H9I
1i,ecto, of .an0s -. (AC an0 Ac3e Pl$4oo0 R *enee, Co.& 1=H SCRA !"%
71%>H9I Republic -. (AC an0 Ro3an Catholic Bishop of .ucena& 1H> SCRA
1H! 71%>>9I Nati-i0a0 -. CA& " SCRA =%3 71%%19I *illaflo, -. CA an0
Nasipit .u3be, Co.& >" SCRA %< 71%%<9. (n A$o2 -. Cusi& 11> SCRA =%
71%>9& the Cou,t 0i0 not appl$ the constitutional ban in the 1%<3 Constitution
because the applicant co,po,ation& BiGan 1e-elop3ent Co.& (nc.& ha0 full$
co3plie0 4ith all its obli2ations an0 e-en pai0 the full pu,chase p,ice befo,e
the effecti-it$ of the 1%<3 Constitution& althou2h the sales patent 4as issue0
afte, the 1%<3 Constitution too6 effect.
"
P1 No. 1"<3.
1
Anne@ 8B8& AMAR(:s Me3o,an0u3 0ate0 #une 1%& 1%%%& Section !. 7c9
an0 7e9 of the A3en0e0 #*A& pp. 1H;1<.

Cha-eF -. PCGG& %% SCRA <== 71%%>9.

3
13H SCRA < 71%>!9.
=
A,ticle of the Ci-il Co0e 7p,io, to its a3en03ent b$ EO No. ""9 p,o-i0e0
as follo4sC 8.a4s shall ta6e effect afte, fifteen 0a$s follo4in2 the co3pletion
of thei, publication in the Official GaFette& unless it is p,o-i0e0 othe,4ise& @ @
@.8
!
Section 1 of CA No. H3> p,o-i0es as follo4sC 8The,e shall be publishe0 in
the Official GaFette all i3po,tant le2islati-e acts an0 ,esolutions of the
Con2,ess of the PhilippinesI all e@ecuti-e an0 a03inist,ati-e o,0e,s an0
p,ocla3ations& e@cept such as ha-e no 2ene,al applicabilit$I @ @ @.8
H
Section <% of the Go-e,n3ent Au0itin2 Co0es p,o-i0es as follo4sC 8#hen
go*ernment property has beco3e unse,-iceable fo, an$ cause& o, is no
longer needed& it shall& upon application of the office, accountable the,efo,&
be inspecte0 b$ the hea0 of the a2enc$ o, his 0ul$ autho,iFe0 ,ep,esentati-e
in the p,esence of the au0ito, conce,ne0 an0& if foun0 to be -alueless o,
unsaleable& it 3a$ be 0est,o$e0 in thei, p,esence. If found to be *aluable6 it
may be sold at public auction to the highest bidder un0e, the supe,-ision of
the p,ope, co33ittee on a4a,0 o, si3ila, bo0$ in the p,esence of the au0ito,
conce,ne0 o, othe, autho,iFe0 ,ep,esentati-e of the Co33ission& after
ad*ertising by printed notice in the fficial 4a3ette6 or for not less than three
consecuti*e days in any newspaper of general circulation& o, 4he,e the -alue
of the p,ope,t$ 0oes not 4a,,ant the e@pense of publication& b$ notices
poste0 fo, a li6e pe,io0 in at least th,ee public places in the localit$ 4he,e the
p,ope,t$ is to be sol0. In the e*ent that the public auction fails6 the property
may be sold at a pri*ate sale at such price as may be fi1ed by the same
committee or body concerned and appro*ed by the %ommission.8
<
Paat -. Cou,t of Appeals& HH SCRA 1H< 71%%<9I Luisu3bin2 -. #u02e
Gu3ban& 1%3 SCRA !" 71%%19I *al3onte -. Bel3onte& #,.& 1<" SCRA !H
71%>%9.
>
'ee note .
%
Section 1& A,ticle K( of the 1%>< Constitution states as follo4sC 8Public
office is a public t,ust. Public office,s an0 e3plo$ees 3ust at all ti3es be
accountable to the people& se,-e the3 4ith ut3ost ,esponsibilit$& inte2,it$&
lo$alt$& an0 efficienc$& act 4ith pat,iotis3 an0 5ustice& an0 lea0 3o0est li-es.8
3"
1<" SCRA !H 71%>%9.
31
'ee note .
3
Reco,0 of the Constitutional Co33ission& *ol. *& pp. =;!& 71%>H9.
33
Sup,a& Note .
3=
Ibid.
3!
.e2aspi -. Ci-il Se,-ice Co33ission& 1!" SCRA !3" 71%><9.
3H
Al3onte -. *as?ueF& == SCRA >H 71%%!9.
3<
'ee Note .
3>
Cha-eF -. PCGG& see note I A?uino;Sa,3iento -. Mo,ato& "3 SCRA
!1! 71%%19.
3%
Al3onte -. *as?ueF& see note 3H.
="
People:s Mo-e3ent fo, P,ess ',ee0o3& et al. -. )on. Raul Man2lapus&
G.R. No. >=H=& En Banc Resolution 0ate0 Ap,il 13& 1%>>I Cha-eF -. PCGG&
see note .
=1
Section <" of the National (nte,nal Re-enue Co0e punishes an$ office, o,
e3plo$ee of the Bu,eau of (nte,nal Re-enue 4ho 0i-ul2es to an$ pe,son&
e@cept as allo4e0 b$ la4& info,3ation ,e2a,0in2 the business& inco3e& o,
estate of an$ ta@pa$e,& the sec,ets& ope,ation& st$le of 4o,6& o, appa,atus of
an$ 3anufactu,e, o, p,o0uce,& o, confi0ential info,3ation ,e2a,0in2 the
business of an$ ta@pa$e,& 6no4le02e of 4hich 4as ac?ui,e0 b$ hi3 in the
0ischa,2e of his official 0uties. Section 1= of R.A. No. >>"" 7Safe2ua,0
Measu,es Act9 p,ohibits the ,elease to the public of confi0ential info,3ation
sub3itte0 in e-i0ence to the Ta,iff Co33ission. Section 3 7n9 of R.A. No.
>!"= 7Philippine A(1S P,e-ention an0 Cont,ol Act9 classifies as confi0ential
the 3e0ical ,eco,0s of )(* patients. Section H 759 of R.A. No. >"=3 7(nte,;
Count,$ A0option Act9 classifies as confi0ential the ,eco,0s of the a0opte0
chil0& a0optin2 pa,ents& an0 natu,al pa,ents. Section %= 7f9 of R.A. No. <%=
7Philippine Minin2 Act9 ,e?ui,es the 1epa,t3ent of En-i,on3ent an0 Natu,al
Resou,ces to 3aintain the confi0entialit$ of confi0ential info,3ation supplie0
b$ cont,acto,s 4ho a,e pa,ties to 3ine,al a2,ee3ents o, financial an0
technical assistance a2,ee3ents.
=
The Recopilacion de $eyes de las Indias 0ecla,e0 thatC 8Ee& ha-in2
ac?ui,e0 full so-e,ei2nt$ o-e, the (n0ies& an0 all lan0s& te,,ito,ies& an0
possessions not he,etofo,e ce0e0 a4a$ b$ ou, ,o$al p,e0ecesso,s& o, b$ us&
o, in ou, na3e& still pe,tainin2 to the ,o$al c,o4n an0 pat,i3on$& it is ou, 4ill
that all lan0s 4hich a,e hel0 4ithout p,ope, an0 t,ue 0ee0s of 2,ant be
,esto,e0 to us acco,0in2 as the$ belon2 to us& in o,0e, that afte, ,ese,-in2
befo,e all 4hat to us o, to ou, -ice,o$s& au0iencias& an0 2o-e,no,s 3a$ see3
necessa,$ fo, public s?ua,es& 4a$s& pastu,es& an0 co33ons in those places
4hich a,e people0& ta6in2 into consi0e,ation not onl$ thei, p,esent con0ition&
but also thei, futu,e an0 thei, p,obable inc,ease& an0 afte, 0ist,ibutin2 to the
nati-es 4hat 3a$ be necessa,$ fo, tilla2e an0 pastu,a2e& confi,3in2 the3 in
4hat the$ no4 ha-e an0 2i-in2 the3 3o,e if necessa,$& all the ,est of sai0
lan0s 3a$ ,e3ain f,ee an0 unencu3be,e0 fo, us to 0ispose of as 4e 3a$
4ish.8 'ee concu,,in2 opinion of #ustice Re$nato S. Puno in Republic Real
Estate Co,po,ation -. Cou,t of Appeals& %% SCRA 1%% 71%%>9.
=3
Ca,iGo -. (nsula, Go-e,n3ent& =1 Phil. %3! 71%"%9. The e@ception
3entione0 in %ari5o& ,efe,,in2 to lan0s in the possession of an occupant an0
of his p,e0ecesso,s;in;inte,est& since ti3e i33e3o,ial& is actuall$ a species
of a 2,ant b$ the State. The Unite0 States Sup,e3e Cou,t& spea6in2 th,ou2h
#ustice Oli-e, Een0ell )ol3es& #,.& 0ecla,e0 in %ari5oC 8P,esc,iption is
3entione0 a2ain in the ,o$al ce0ula of Octobe, 1!& 1<!=& cite0 in 3
Philippine& !=HI :Ehe,e such possesso,s shall not be able to p,o0uce title
0ee0s& it shall be sufficient if the$ shall sho4 that ancient possession& as a
-ali0 title b$ p,esc,iption.: (t 3a$ be that this 3eans possession f,o3 befo,e
1<""I but& at all e-ents& the p,inciple is a03itte0. As p,esc,iption& e-en
a2ainst the C,o4n lan0s& 4as ,eco2niFe0 b$ the la4s of Spain& 4e see no
sufficient ,eason fo, hesitatin2 to a03it that it 4as ,eco2niFe0 in the
Philippines in ,e2a,0 to lan0s o-e, 4hich Spain ha0 onl$ a pape,
so-e,ei2nt$.8 'eealso Republic -. .ee& 1%< SCRA 13 71%%19.
==
A,ticle 1 of the Spanish .a4 of Eate,s of 1>HH.
=!
(2nacio -. 1i,ecto, of .an0s& 1"> Phil. 33! 71%H"9I #o-en -. 1i,ecto, of
.an0s& %3 Phil. 13= 71%!39I .au,el -. Ga,cia& 1>< SCRA <%<
71%%"9. 'ee concu,,in2 opinion of #ustice Re$nato S. Puno in Republic Real
Estate Co,po,ation -. Cou,t of Appeals& %% SCRA 1%% 71%%>9.
=H
Act No. %H& enacte0 on Octobe, <& 1%"3& 4as also title0 the Public .an0
Act. This Act& ho4e-e,& 0i0 not co-e, ,eclai3e0 lan0s. Ne-e,theless& Section
3 of this Act p,o-i0e0 as follo4sC 8@ @ @ (n no case 3a$ lan0s lease0 un0e,
the p,o-isions of this chapte, be ta6en so as to 2ain cont,ol of a05acent lan0&
4ate,& st,ea3& sho,e line& 4a$& ,oa0stea0& o, othe, -aluable ,i2ht 4hich in the
opinion of the Chief of the Bu,eau of Public .an0s 4oul0 be p,e5u0icial to the
inte,ests of the public.8
=<
Section 1" of Act No. ><= p,o-i0e0 as follo4sC 8The 4o,0s 8alienation&8
80isposition&8 o, 8concession8 as use0 in this Act& shall 3ean an$ of the
3etho0s autho,iFe0 b$ this Act fo, the ac?uisition& lease& use& o, benefit of
the lan0s of the public 0o3ain othe, than ti3be, o, 3ine,al lan0s.8
=>
Title (( of Act No. ><= 2o-e,ne0 alienable lan0s of the public 0o3ain fo,
a2,icultu,al pu,poses& 4hile Title ((( of the sa3e Act 2o-e,ne0 alienable lan0s
of the public 0o3ain fo, non;a2,icultu,al pu,poses.
=%
Section !< of Act No. ><= p,o-i0e0 as follo4sC 8@ @ @I but the lan0 so
2,ante0& 0onate0& o, t,ansfe,,e0 to a p,o-ince& 3unicipalit$& o, b,anch o,
sub0i-ision of the Go-e,n3ent shall not be alienate0& encu3be,e0& o,
othe,4ise 0ispose0 of in a 3anne, affectin2 its title& e@cept 4hen autho,iFe0
b$ the le2islatu,eI @ @ @.8
!"
J,i-en6o -. Re2iste, of 1ee0s& <% Phil. =H1 71%=<9.
!1
Section of CA No. 1=1 states as follo4sC 8The p,o-isions of this Act shall
appl$ to the lan0s of the public 0o3ainI but ti3be, an0 3ine,al lan0s shall be
2o-e,ne0 b$ special la4s an0 nothin2 in this Act p,o-i0e0 shall be
un0e,stoo0 o, const,ue0 to chan2e o, 3o0if$ the a03inist,ation an0
0isposition of the lan0s co33onl$ calle0 8f,ia, lan0s8 an0 those 4hich& bein2
p,i-atel$ o4ne0& ha-e ,e-e,te0 to o, beco3e the p,ope,t$ of the
Co33on4ealth of the Philippines& 4hich a03inist,ation an0 0isposition shall
be 2o-e,ne0 b$ the la4s at p,esent in fo,ce o, 4hich 3a$ he,eafte, be
enacte0.8
!
.i6e Act No. ><=& Section 1" of CA No. 1=1 0efine0 the te,3s 8alienation8
an0 80isposition8 as follo4sC 8The 4o,0s 8alienation&8 80isposition&8 o,
8concession8 as use0 in this Act& shall 3ean an$ of the 3etho0s autho,iFe0
b$ this Act fo, the ac?uisition& lease& use& o, benefit of the lan0s of the public
0o3ain othe, than ti3be, o, 3ine,al lan0s.8
!3
R.A. No. HH!< has suspen0e0 the autho,it$ of the P,esi0ent to ,eclassif$
fo,est o, 3ine,al lan0s into a2,icultu,al lan0s. Section = 7a9 of RA No. HH!<
7Co3p,ehensi-e A2,a,ian Refo,3 .a4 of 1%>>9 states& 8No ,eclassification of
fo,est o, 3ine,al lan0s to a2,icultu,al lan0s shall be un0e,ta6en afte, the
app,o-al of this Act until Con2,ess& ta6in2 into account ecolo2ical&
0e-elop3ental an0 e?uit$ consi0e,ations& shall ha-e 0eli3ite0 b$ la4& the
specific li3its of the public 0o3ain.8
!=
Co-e,in2 Sections !> to H> of CA No. 1=1.
!!
%% SCRA 1%% 71%%>9.
!H
Section 1& A,ticle K((( of the 1%3! Constitution li3ite0 the 0isposition an0
utiliFation of public a2,icultu,al lan0s to Philippine citiFens o, to co,po,ations
at least si@t$ pe,cent o4ne0 b$ Philippine citiFens. This 4as& ho4e-e,&
sub5ect to the o,i2inal O,0inance appen0e0 to the 1%3! Constitution statin2&
a3on2 othe,s& that until the 4ith0,a4al of Unite0 States so-e,ei2nt$ in the
Philippines& 8CitiFens an0 co,po,ations of the Unite0 States shall en5o$ in the
Co33on4ealth of the Philippines all the ci-il ,i2hts of the citiFens an0
co,po,ations& ,especti-el$& the,eof.8
!<
Section == of P1 No. 1!% 7p,e-iousl$ Section 3% of Act No. =%H9 p,o-i0es
that 8liens& clai3s o, ,i2hts a,isin2 o, e@istin2 un0e, the la4s an0 the
Constitution of the Philippines 4hich a,e not b$ la4 ,e?ui,e0 to appea, of
,eco,0 in the Re2ist,$ of 1ee0s in o,0e, to be -ali0 a2ainst subse?uent
pu,chase,s o, encu3b,ance,s of ,eco,08 constitute statuto,$ liens affectin2
the title.;<wphi;.n=t
!>
RA No. <3"& 4hich too6 effect on #une 1>& 1%!& autho,iFe0 the pri*ate
sale of ho3e lots to actual occupants of public lan0s not nee0e0 fo, public
se,-ice. Section 1 of RA No. <3" p,o-i0e0 as follo4sC 8Not4ithstan0in2 the
p,o-isions of Sections H1 an0 H< of Co33on4ealth Act No. 1=1& as
a3en0e0 b$ RA No. %3& an$ 'ilipino citiFen of le2al a2e 4ho is not the
o4ne, of a ho3e lot in the 3unicipalit$ o, cit$ in 4hich he ,esi0es an0 4ho
ha0 in 2oo0 faith establishe0 his ,esi0ence on a pa,cel of lan0 of the
Republic of the Philippines 4hich is not nee0e0 fo, public se,-ice& shall be
2i-en p,efe,ence to pu,chase at a p,i-ate sale of 4hich ,easonable notice
shall be 2i-en to hi3& not 3o,e than one thousan0 s?ua,e 3ete,s at a p,ice
to be fi@e0 b$ the 1i,ecto, of .an0s 4ith the app,o-al of the Sec,eta,$ of
A2,icultu,e an0 Natu,al Resou,ces. @ @ @.8 (n a00ition& on #une 1H& 1%=>&
Con2,ess enacte0 R.A. No. %3 allo4in2 the p,i-ate sale of 3a,sh$ alienable
o, 0isposable lan0s of the public 0o3ain to lessees 4ho ha-e i3p,o-e0 an0
utiliFe0 the sa3e as fa,3s& fishpon0s o, othe, si3ila, pu,poses fo, at least
fi-e $ea,s f,o3 the 0ate of the lease cont,act 4ith the 2o-e,n3ent. R.A. No.
%3& ho4e-e,& 0i0 not appl$ to 3a,sh$ lan0s un0e, Section !H 7c9& Title ((( of
CA No. 1=1 4hich ,efe,s to 3a,sh$ lan0s lease0 fo, ,esi0ential& co33e,cial&
in0ust,ial o, othe, non0agricultural purposes.
!%
See note =%.
H"
'ee note H".
H1
Republic Real Estate Co,po,ation -. Cou,t of Appeals& see note !H.
H
Ibid.
H3
(nsula, Go-e,n3ent -. Al0ecoa& 1% Phil. !"! 71%119I Go-e,n3ent -.
Caban2is& !3 Phil. 11 71%%9.
H=
11> SCRA =% 71%>9.
H!
Anne@ 8B8& AMAR(:s Me3o,an0u3& see note at 1 R .
HH
PEA:s Me3o,an0u3& see note H.
H<
Ibid.& p. ==.
H>
'ee notes %& 1" R 11.
H%
Anne@ 8C8& p. 3& AMAR(:s Me3o,an0u3& see note 1 at 3.
<"
This shoul0 ,ea0 A,ticle K((.
<1
Section > of CA No. 1=1.
<
E3phasis supplie0.
<3
1>< SCRA <%< 71%%"9.
<=
A,ticle = of the Ci-il Co0e states as follo4sC 8P,ope,t$ of public 0o3inion&
4hen no lon2e, nee0e0 fo, public use o, public se,-ice& shall fo,3 pa,t of the
pat,i3onial p,ope,t$ of the State.8
<!
AMAR(:s Co33ent 0ate0 #une =& 1%%>& p. "I Rollo& p. >!.
<H
1iFon -. Ro0,i2ueF& 13 SCRA <"! 71%H!9I Republic -. .at *0a. 0e Castillo&
1H3 SCRA >H 71%>>9.
<<
Ca,iGo -. (nsula, Go-e,n3ent& =1 Phil. %3! 71%"%9.
<>
P,ocla3ation No. =1& issue0 b$ P,esi0ent Ra3on Ma2sa$sa$ on #ul$ !&
1%!=& ,ese,-e0 fo, 8National Pa,6 pu,poses8 =H=.HH hecta,es of the public
0o3ain in Manila Ba$ 8situate0 in the cities of Manila an0 Pasa$ an0 the
municipality of Paranaque& P,o-ince of RiFal& (slan0 of .uFon&8 4hich a,ea&
as 0esc,ibe0 in 0etail in the P,ocla3ation& is 8BBoun0e0 on the No,th& b$
Manila Ba$I on the East& b$ 1e4e$ Boule-a,0I an0 on the south an0 4est& b$
Manila Ba$.8 See concu,,in2 opinion of #ustice Re$nato S. Puno in Republic
Real Estate Co,po,ation -. Cou,t of Appeals& %% SCRA 1%%% 71%%>9. Un0e,
Sections an0 3& A,ticle K(( of the 1%>< Constitution& 8national pa,6s8 a,e
inalienable natu,al ,esou,ces of the State.
<%
'ifth Ehe,eas clause of EO No. !!.
>"
Section =& Chapte, (& Title K(*& Boo6 (*.
>1
Section H of CA No 1=1 p,o-i0es as follo4sC 8The P,esi0ent& upon the
recommendation of the 'ecretary of Agriculture and %ommerce& shall f,o3
ti3e to ti3e classif$ the lan0s of the public 0o3ain into N 7a9 Alienable o,
0isposable& @ @ @.8
>
Section < of CA No. 1=1 p,o-i0es as follo4sC 8'o, pu,poses of the
a03inist,ation an0 0isposition of alienable o, 0isposable public lan0s& the
P,esi0ent& upon recommendation by the 'ecretary of Agriculture and
%ommerce& shall f,o3 ti3e to ti3e 0ecla,e 4hat lan0s a,e open to 0isposition
o, concession un0e, this Act.8
>3
On 8.an0s fo, Resi0ential& Co33e,cial& o, (n0ust,ial an0 othe, Si3ila,
Pu,poses.8
>=
RA No. %3& enacte0 on #une 1H& 1%=>& autho,iFe0 the sale of 3a,sh$
lan0s un0e, ce,tain con0itions. Section 1 of RA No. %3 p,o-i0e0 as follo4sC
8The p,o-isions of section si@t$;one of Co33on4ealth Act Nu3be,e0 One
hun0,e0 an0 fo,t$;one to the cont,a,$ not4ithstan0in2& 3a,sh$ lan0s an0
lan0s un0e, 4ate, bo,0e,in2 on sho,es o, ban6s o, na-i2able la6es o, ,i-e,s
4hich a,e co-e,e0 b$ subsistin2 leases o, leases 4hich 3a$ he,eafte, be
0ul$ 2,ante0 un0e, the p,o-isions of the sai0 Act an0 a,e al,ea0$ i3p,o-e0
an0 ha-e been utiliFe0 fo, fa,3in2& fishpon0& o, si3ila, pu,poses fo, at least
fi-e $ea,s f,o3 the 0ate of the cont,act of lease& 3a$ be sol0 to the lessees
the,eof un0e, the p,o-isions of Chapte, 'i-e of the sai0 Act as soon as the
P,esi0ent& upon ,eco33en0ation of the Sec,eta,$ of A2,icultu,e an0 Natu,al
Resou,ces& shall 0ecla,e that the sa3e a,e not necessa,$ fo, the public
se,-ice.8
>!
PEA:s Me3o,an0u3& see note at =!.
>H
'ee note <3.
><
Section = 7b9 of P1 No. 1">=
>>
R.A. No. <3" allo4s the p,i-ate sale of ho3e lots to actual occupants of
public lan0s. 'ee note H3.
>%
(ssue0 on 'eb,ua,$ H& 1%>1.
%"
Ehile PEA clai3s the,e 4as a failu,e of public bi00in2 on 1ece3be, 1"&
1%%1& the,e is no sho4in2 that the Co33ission on Au0it app,o-e0 the p,ice
o, consi0e,ation stipulate0 in the ne2otiate0 A3en0e0 #*A as ,e?ui,e0 b$
Section <% of the Go-e,n3ent Au0itin2 Co0e. Senate Co33ittee Repo,t No.
!H" 0i0 not 0iscuss this issue.
%1
Pa,a2,aph 7a9 of COA Ci,cula, No. >%;%H& on 8Sale Th,u Ne2otiation&8
states that 0isposal th,ou2h ne2otiate0 sale 3a$ be ,eso,te0 to if 8ATBhe,e
4as a failu,e of public auction.8
%
Senate Co33ittee Repo,t No. !H"& State3ent of 'acts& p. <& citin2 PEA
Boa,0 Resolution No. >3!& as appea,in2 in the Minutes of the PEA Boa,0 of
1i,ecto,s Meetin2 hel0 on Ma$ 3"& 1%%1& pe, Ce,tification of #ai3e T. 1e
*e$,a& Co,po,ate Sec,eta,$& 0ate0 #une 11& 1%%1.
%3
Opinion No. 33"& citin2 COA Au0it Ci,cula, No. >%;%H. 'ee note !.
%=
PEA:s Me3o,an0u3& see note .
%!
Senate Co33ittee Repo,t No. !H"& pp. <;>& citin2 the Minutes of Meetin2
of the PEA Boa,0 of 1i,ecto,s hel0 on 1ece3be, 1%& 1%%1.
%H
Section 3& A,ticle K(( of the 1%>< Constitution p,o-i0es as follo4sC 8@ @ @
CitiFens of the Philippines 3a$ @ @ @ ac?ui,e not 3o,e than t4el-e hecta,es
the,eof b$ pu,chase& ho3estea0 o, 2,ant.8 )o4e-e,& Section H of R.A. No.
HH!< 7Co3p,ehensi-e A2,a,ian Refo,3 .a49 li3its the o4ne,ship of 8public
o, p,i-ate a2,icultu,al lan08 to a 3a@i3u3 of fi-e hecta,es pe, pe,son.
%<
%H Phil. %=H 71%!!9.
%>
=> SCRA 3< 71%<<9.
%%
1H> SCRA 1%> 71%>>9.
1""
1< SCRA <%! 71%>%9.
1"1
<3 SCRA 1=H 71%<H9.
1"
A-ila -. Tapuca,& "1 SCRA 1=> 71%%19.
1"3
Republic -. A$ala Cia& et al.& 1= SCRA !% 71%H!9I 1iFon -. Ro0,i2ueF& 13
SCRA <"! 71%H!9.
1"=
Section == of P1 No. 1!% states as follo4sC 8E-e,$ ,e2iste,e0 o4ne,
,ecei-in2 a ce,tificate of title in pu,suance of a 0ec,ee of ,e2ist,ation& an0
e-e,$ subse?uent pu,chase, of ,e2iste,e0 lan0 ta6in2 a ce,tificate of title fo,
-alue an0 in 2oo0 faith& shall hol0 the sa3e f,ee f,o3 all encu3b,ances
e@cept those note0 on sai0 ce,tificate an0 an$ of the follo4in2 encu3b,ances
4hich 3a$ be subsistin2& na3el$C 'i,st.$iens6 claims or rights arising or
e1isting under the laws and %onstitution of the Philippines which are not by
law required to appear of record in the Registry of Deeds in order to be *alid
against subsequent purchasers or encumbrancers of record. @ @ @.8 Un0e,
Section 1"3 of P1 No. 1!%& Section == applies to ce,tificates of title issue0
pu,suant to a lan0 patent 2,ante0 b$ the 2o-e,n3ent.
1"!
Section & A,ticle K((( of the 1%3! Constitution.
1"H
)a,t$ -. Municipalit$ of *icto,ia& 13 Phil. 1! 71%"%9.
1"<
Anne@ 8B8& AMAR(:s Me3o,an0u3& see note 1 at 1H& Section !. 7c9 of
the A3en0e0 #*A.
1">
Section 1" of CA No. 1=1 p,o-i0es as follo4sC 8Sec. 1". The 4o,0s
8alienation&8 80isposition&8 o, 8concession8 as use0 in this Act& shall 3ean an$
of the 3etho0s autho,iFe0 b$ this Act fo, the acquisition& lease& use6 or
benefit of the lan0s of the public 0o3ain othe, than ti3be, o, 3ine,al lan0s.8
1"%
Section <% of the Go-e,n3ent Au0itin2 Co0e& 4hich ,e?ui,es public
auction in the sale of 2o-e,n3ent assets& inclu0es all 6in0s of 0isposal o,
0i-est3ent of 2o-e,n3ent assets. Thus& COA Au0it Ci,cula, No. >H;H=
0ate0 Octobe, 1H& 1%>H spea6s of 82ui0elines 74hich9 shall 2o-e,n the
2ene,al p,oce0u,es on thedi*estment or disposal of assets of go*ernment0
owned andIor controlled corporations an0 thei, subsi0ia,ies.8 .i6e4ise& COA
Au0it Ci,cula, No. >%;%H 0ate0 #anua,$ <& spea6s of 82ui0elines 74hich9
shall be obse,-e0 an0 a0he,e0 to in the di*estment or disposal of property
and other assets of all go*ernment entitiesIinstrumentalities8 an0 that
80i-est3ent shall ,efe, to the 3anne, o, sche3e of ta6in2 a4a$& 0ep,i-in2&
4ith0,a4in2 of an autho,it$& po4e, o, title.8 These COA Ci,cula,s i3ple3ent
Section <% of the Go-e,n3ent Au0itin2 Co0e.
11"
The sha,e of AMAR( in the ',ee0o3 (slan0s is <<.3= hecta,es& 4hich is <"
pe,cent of the net usable a,ea of 11".=% hecta,es. The net usable a,ea is the
total lan0 a,ea of the ',ee0o3 (slan0s less 3" pe,cent allocate0 fo, co33on
a,eas.
111
The sha,e of AMAR( in the sub3e,2e0 a,eas fo, ,ecla3ation is %".1%
hecta,es& 4hich is <" pe,cent of the net usable a,ea of =1=.=< hecta,es.
11
A,ticle 1="% of the Ci-il Co0e p,o-i0es as follo4sC 8The follo4in2 cont,acts
a,e ine@istent an0 -oi0 f,o3 the be2innin2C 719 Those 4hose cause& ob5ect o,
pu,pose is cont,a,$ to la4I @ @ @I 7=9 Those 4hose ob5ect is outsi0e the
co33e,ce of 3enI @ @ @.8