Republic of the Philippines

Supreme Court
Baguio City

Public Information Office

PRESS BRIEFING
21 April 2015
TheSupreme CourtEnBanc,duringitssessiontoday,actedonthefollowing
mattersinitsAgenda,amongothers:
1.InthematterofG.R.No.21712627(ConchitaCarpioMoralesvs.Courtof
Appeals and Jejomar Erwin Binay), the following Justices have voluntarily
inhibitedthemselvesfromfurtherparticipationinthiscase:
a) AssociateJusticePresbiteroJ.VelascoJr.;
b) AssociateJusticeArturoD.Brion;
c) AssociateJusticeFrancisH.Jardeleza;
Associate Justice Diosdado M. Peralta had previously recused himself from
participation in this case and did not sit during the first session of the oral
argumentsinthiscase.
Theoralargumentinthiscasewillresumetodayat2PM,withtheCourthearing
therespondentsarguments.
2. In the matter of G.R. No. 216098 (Bishop Broderick Pabillo, et al. v.
Comelec,etal.)andG.R.No.216562(IntegratedBarofthePhilippines,etal.
v. Comelec, et al.), the Court voting unanimously (as per PerlasBernabe, J.)
renderedthefollowingjudgment:

The Court, in these cases, addressed consolidated petitions for certiorari and
prohibitionchallengingComelecResolutionNo.9922datedDecember23,2014,
which approved a direct contracting arrangement with respondent Smartmatic
TIMCorporation(SmartmaticTIM)forthediagnostics,maintenance,repairand
replacementoftheComelecsPrecinctCountOpticalScan(PCOS)machines,as
wellastheresultingcontractthereof,theExtendedWarranty(Program1)dated
January30,2015.AsformulatedbytheCourt:

TheCourtruledthattheComelecfailedtojustifyitsresorttodirectcontracting
withSmartmaticTIM;ithadnotshownthatanyoftheconditionsunderSection
50,ArticleXVIoftheGPRAexisted;further,itsclaimsofimpracticalitywerenot
supportedbyindependentlyverifiabledataanditsperceivedwarrantyextension
is,inreality,acircumventionoftheprocurementlaw.ItisclearthattheComelec
committedgraveabuseofdiscretionand,thus,itsResolutionNo.9922andthe
ExtendedWarrantyProgram(Part1)shouldbestrickendownand,necessarily,all
amountspaidtoSmartmaticTIMpursuanttosaidcontract,ifany,beingpublic
fundsshouldbereturnedtothegovernment.
3. In the matter of G.R. No. 180771 (Resident Marine Mammals of the
ProtectedSeascapeTaonStrait,etal.v.SecretaryAngeloReyes,etal.),G.R.
No. 181527 (Central Visayan Fisherfolk Development Center, et al. v.
SecretaryAngeloReyes,etal.),theCourt(asperLeonardoDeCastro,J.),voting
unanimously,declaredas unconstitutional ServiceContractNo.46 (SC46)
which allowed the exploration, development, and exploitation of petroleum
resourceswithinTaonStrait,1 anarrowpassageofwatersituatedbetweenthe
IslandsofNegros(intheWest)andCebu(intheEast).ThejudgmentoftheCourt,
containedinitsdispositiveportion,reads:
WHEREFORE, the Petitions in G.R. Nos. 180771 and 181527 are
GRANTED, Service Contract No. 46 is hereby declared NULL AND
VOID for violating the 1987 Constitution, Republic Act No. 7586, and
PresidentialDecreeNo.1586.
TheCourtconsideredthelegalityofSC46inrelationtoSection2,ArticleXIIof
the1987Constitution.2Whileaffirmingthepermissibilityofenteringintoservice
1 TheTaonStraitharborsarichbiodiversityofmarinelife,includingendangered
speciesofdolphinsandwhales.Itwasdeclaredaprotectedseascapein1998by
PresidentFidelV.RamosthroughProclamatoionNo.1234.PresidentJosephE.Estrada
constitutedtheTaonStraitCommissionthroughExecutiveOrderNo.76toensurethe
optimumandsustaineduseoftheresourcesintheareawithoutthreateningitsmarinelife;
thiswasfollowedbyExecutiveOrderNo.177,wheretheMayorofaNegrosOccidental
Municipality/CitywasincludedasamemberoftheTaonStraitCommission
representingtheLGUsconcerned(thisCommissionwaslaterabolishedbyPresident
GloriaMacapagalArroyothroughExecutiveOrderNo.72).
2 Section2.Alllandsofthepublicdomain,waters,minerals,coal,petroleum,andother
mineraloils,allforcesofpotentialenergy,fisheries,forestsortimber,wildlife,floraand
fauna, and other natural resources are owned by the State. With the exception of
agricultural lands, all other natural resources shall not be alienated. The exploration,
development, and utilization of natural resources shall be under the full control and
2

contractsunderthe1987Constitution,theCourtnotedthatSC46failedtocomply
withthesafeguardsrequiredunderParagraph4,Section2,ArticleXIIofthe1987
Constitutionwhichrequiredthattheservicecontractbe(a)authorizedbyageneral
law;(b)signedbythePresident,and,(c)reportedtoCongress.
The Court notedthat while there is a general law on exploration, Presidential
DecreeNo.87,whichremainsineffect,SC46wasenteredintoin2004only
betweentheDepartmentofEnergyandJapanPetroleumExplorationCo.,Ltd.
(JAPEX)andwassignedonlybythethenSecretaryofEnergyandnotbythe
President.TheCourtalsonotedthatSC46wasneversubmittedtoCongress.For
thesereasons,SC46violatedtheConstitutionandisunconstitutional.
TheCourtalsoconsideredthatSC46violatedRA7586ortheNationalIntegrated
ProtectedAreasSystem(NIPAS)Actof1992becauseTaonStraitis,byvirtueof
ProclamationNo.2146,anenvironmentallycriticalarea,thus,anyactivityoutside
the scope of ots management plan may only be implemented pursuant to an
Environmental Compliance Certificate (ECC) secured after undergoing an
EnvironmentalImpactAssessment(EIA)todeterminetheeffectsofsuchactivity
onitsecologicalsystem. ThesewerenotcompliedwithunderSC46;forthis
reason,theCourtalsoconsideredthatSC46violatedtheNIPASAct.Moreover,
because Taon Strait is a NIPAS area, the exploitation and utilization of this
energyresourcemaybeallowedonlythroughalawpassedbyCongress; while
PD 87 may serve as a general basis for authorizing a service contract for
petroleumexplorationandextraction,theNIPASActspecificallyrequiresalaw
passedbyCongressbeforeexploitationinaNIPASareamaybedone.
TheCourtalsonotedthatonlyhumanshavepersonalitytosue.
supervisionoftheState.TheStatemaydirectlyundertakesuchactivities,oritmayenter
intocoproduction,jointventure,orproductionsharingagreementswithFilipinocitizens,
orcorporationsorassociationsatleastsixtypercentumofwhosecapitalisownedby
suchcitizens.Suchagreementsmaybeforaperiodnotexceedingtwentyfiveyears,
renewablefornotmorethantwentyfiveyears,andundersuchtermsandconditionsas
maybeprovidedbylaw.Incasesofwaterrightsforirrigation,watersupplyfisheries,or
industrialusesotherthanthedevelopmentofwaterpower,beneficialusemaybethe
measureandlimitofthegrant.
TheStateshallprotectthenationsmarinewealthinitsarchipelagicwaters,territorial
sea, and exclusive economic zone, and reserve its use and enjoyment exclusively to
Filipinocitizens.
TheCongressmay,bylaw,allowsmallscaleutilizationofnaturalresourcesbyFilipino
citizens,aswellascooperativefishfarming,withprioritytosubsistencefishermenand
fishworkersinrivers,lakes,bays,andlagoons.
The President may enter into agreements with foreignowned corporations involving
either technical or financial assistance for largescale exploration, development, and
utilizationofminerals,petroleum,andothermineraloilsaccordingtothegeneralterms
andconditionsprovidedbylaw,basedonrealcontributionstotheeconomicgrowthand
general welfare of the country. In such agreements, the State shall promote the
developmentanduseoflocalscientificandtechnicalresources.
ThePresidentshallnotifytheCongressofeverycontractenteredintoinaccordancewith
thisprovision,withinthirtydaysfromitsexecution

4. In the matter of G.R. No. 217456 (Marilou S. Laude and Mesehilda S.

Laude v. Hon. Roline M. JinezJabalde, The Executive Secretary, The
Secretary of Foreign Affairs, The Chief of Staff, Armed Forces of the
Philippines,theChiefCityProsecutorofOlongapoCityandL/CPLJoseph
ScottPemberton),theCourtrequiredrespondentstocommentwithinten(10)
daysfromnoticeonthePetitionforCertiorariwithPrayerfortheIssuanceof
MandatoryInjunctiondatedApril16,2015,seekingtoannultheOrdersdated
December23,2014andFebruary16,2015ofrespondentRTCJudge.