G.R. Nos. 147036-37. April 10, 2012.* independent government corporation directly under the President.

And, as
Petitioner-Organizations, namely: PAMBANSANG the respondent public officials pointed out, the pertinent laws used the
KOALISYON NG MGA SAMAHANG MAGSASAKA AT term levy, which means to tax, in describing the exaction.
Same; Same; Since taxes could be exacted only for a public
MANGGAGAWA SA NIYUGAN (PKSMMN), COCONUT
purpose, they cannot be declared private properties of individuals
INDUSTRY REFORM MOVEMENT (COIR), BUKLOD NG although such individuals fall within a distinct group of persons.—Section
MALAYANG MAGBUBUKID, PAMBANSANG KILUSAN NG 2 of P.D. 755, Article III, Section 5 of P.D. 961, and Article III, Section 5
MGA SAMAHANG MAGSASAKA (PAKISAMA), CENTER of P.D. 1468 completely ignore the fact that coco-levy funds are public
FOR AGRARIAN REFORM, EMPOWERMENT AND funds raised through taxation. And since taxes
TRANSFORMATION (CARET), PAMBANSANG 52

KATIPUNAN NG MGA SAMAHAN SA KANAYUNAN

(PKSK); Petitioner- 52 SUPREME COURT REPORTS ANNOTAT
_______________
* EN BANC. Pambansang Koalisyon ng mga Samahang Magsasaka at
Manggagawa sa Niyugan (PKSMMN) vs. Executive Secretary
50
could be exacted only for a public purpose, they cannot be declared
private properties of individuals although such individuals fall within a
50 SUPREME COURT REPORTS ANNOTATED distinct group of persons.
Pambansang Koalisyon ng mga Samahang Magsasaka at Manggagawa saStatutes; Where part of a statute is void as repugnant to the
Constitution, while another part is valid, the valid portion, if susceptible to
Niyugan (PKSMMN) vs. Executive Secretary being separated from the invalid, may stand and be enforced.—The
Legislator: REPRESENTATIVE LORETA ANN ROSALES; and general rule is that where part of a statute is void as repugnant to the
Petitioner-Individuals, namely: VIRGILIO V. DAVID, JOSE Constitution, while another part is valid, the valid portion, if susceptible to
being separated from the invalid, may stand and be enforced. When the
MARIE FAUSTINO, JOSE CONCEPCION, ROMEO
parts of a statute, however, are so mutually dependent and connected, as
ROYANDOYAN, JOSE V. ROMERO, JR., ATTY. CAMILO L. conditions, considerations, or compensations for each other, as to warrant a
SABIO, and ATTY. ANTONIO T. CARPIO, belief that the legislature intended them as a whole, the nullity of one part
petitioners, vs. EXECUTIVE SECRETARY, SECRETARY OF will vitiate the rest. In which case, if some parts are unconstitutional, all
AGRICULTURE, SECRETARY OF AGRARIAN REFORM, the other provisions which are thus dependent, conditional, or connected
PRESIDENTIAL COMMISSION ON GOOD GOVERNMENT, must consequently fall with them.
THE SOLICITOR GENERAL, PHILIPPINE COCONUT
PRODUCERS FEDERATION, INC. (COCOFED), and UNITED PETITIONS to declare unconstitutional certain presidential
COCONUT PLANTERS BANK (UCPB), respondents. decrees and executive orders of the martial law era relating to
the raising and use of coco-levy funds.
G.R. No. 147811. April 10, 2012.*    The facts are stated in the opinion of the Court.
TEODORO J. AMOR, representing the Peasant Alliance of Samar   Mario E. Ongkiko for petitioners in G.R. Nos. 147036-37.
and Leyte (PASALEY), DOMINGO C. ENCALLADO,   Dennis Funa for petitioners in G.R. No. 147811.
representing Aniban ng Magsasaka at Manggagawa sa Niyugan   UCPB Office of the Corporate Secretary & Legal Services
(AMMANI), and VIDAL M. PILIIN, representing the Laguna Group for United Coconut Planters Bank.
Coalition, petitioners, vs. EXECUTIVE SECRETARY,   Angara, Abello, Concepcion, Regala & Cruz for
SECRETARY OF AGRICULTURE, SECRETARY OF COCOFED.
AGRARIAN REFORM, PRESIDENTIAL COMMISSION ON
GOOD GOVERNMENT, THE SOLICITOR GENERAL, ABAD, J.:
PHILIPPINE COCONUT PRODUCERS FEDERATION, These are consolidated petitions to declare unconstitutional
UNITED COCONUT PLANTERS BANK, respondents. certain presidential decrees and executive orders of the martial law
era relating to the raising and use of coco-levy funds. 53
Procedural Rules and Technicalities; Where the issues raised are VOL. 669, APRIL 10, 2012
of paramount importance to the public, the Court has the discretion to
brush aside technicalities of procedure.—Where there are serious Pambansang Koalisyon ng mga Samahang Magsasaka at Manggaga
allegations that a law has infringed the Constitution, it becomes not only
the right but the duty of the Court to look into such allegations and, when Niyugan (PKSMMN) vs. Executive Secretary
warranted, uphold the supremacy of the Constitution. Moreover, where the The Facts and the Case
issues raised are of paramount importance to the public, as in this case, the On June 19, 1971 Congress enacted Republic Act (R.A.)
Court has the discretion to brush aside technicalities of procedure. 6260  that established a Coconut Investment Fund (CI Fund) for
1

Taxpayer’s Suit; Taxpayer’s suit is based on the theory that the development of the coconut industry through capital
expenditure of public funds for the purpose of executing an financing.  Coconut farmers were to capitalize and administer the
2

unconstitutional act is a misapplication of such funds.—The individual

Fund through the Coconut Investment Company (CIC)  whose 3

petitioners, on the other hand, join the petitions as taxpayers. The Court
51 objective was, among others, to advance the coconut farmers’
interests. For this purpose, the law imposed a levy of P0.55 on the
VOL. 669, APRIL 10, 2012 coconut farmer’s first domestic sale of every 100 kilograms of
copra, or its equivalent, for which levy he was to get a receipt
Pambansang Koalisyon ng mga Samahang Magsasaka atconvertible into CIC shares of stock. 4

Manggagawa sa Niyugan (PKSMMN) vs. Executive Secretary About a year following his proclamation of martial law in the
recognizes their right to restrain officials from wasting public funds country or on August 20, 1973 President Ferdinand E. Marcos
through the enforcement of an unconstitutional statute. This so-called issued Presidential Decree (P.D.) 276,  which established a
5

taxpayer’s suit is based on the theory that expenditure of public funds for Coconut Consumers Stabilization Fund (CCS Fund), to address
the purpose of executing an unconstitutional act is a misapplication of such the crisis at that time in the domestic market for coconut-based
funds. Besides, the 1987 Constitution accords to the citizens a greater consumer goods. The CCS Fund was to be built up through the
participation in the affairs of government. Indeed, it provides for people’s imposition of a P15.00-levy for every first sale of 100 kilograms
initiative, the right to information on matters of public concern (including
the right to know the state of health of their President), as well as the right
of copra resecada.  The levy was to cease after a year or earlier
6

to file cases questioning the factual bases for the suspension of the provided the crisis was over. Any remaining balance of the Fund
privilege of writ of habeas corpus or declaration of martial law. These was to revert to the CI Fund established under R.A. 6260. 7

provisions enlarge the people’s right in the political as well as the judicial A year later or on November 14, 1974 President Marcos
field. It grants them the right to interfere in the affairs of government and issued P.D. 582,  creating a permanent fund called the Coconut
8

challenge any act tending to prejudice their interest. _______________

Taxation; Coconut Levy Funds; The coco-levy funds are in the 1 Entitled AN ACT INSTITUTING A COCONUT INVESTMENT FUND AND CREATING
nature of taxes and can only be used for public purpose.—The Court was A COCONUT INVESTMENT COMPANY FOR THE ADMINISTRATION THEREOF.
2 Id., Section 2.
satisfied that the coco-levy funds were raised pursuant to law to support a
3 Id.
proper governmental purpose. They were raised with the use of the police 4 Id., Section 8.
and taxing powers of the State for the benefit of the coconut industry and 5 Entitled ESTABLISHING A COCONUT CONSUMERS STABILIZATION FUND.
its farmers in general. The COA reviewed the use of the funds. The Bureau 6 Id., Section 1(a).
of Internal Revenue (BIR) treated them as public funds and the very laws 7 Id., Section 2.
governing coconut levies recognize their public character. The Court has 8 Entitled FURTHER AMENDING PRESIDENTIAL DECREE NO. 232, AS AMENDED.
also recently declared that the coco-levy funds are in the nature ofj taxes
and can only be used for public purpose. Taxes are enforced proportional 54
contributions from persons and property, levied by the State by virtue of its 54 SUPREME COURT REPORTS ANNOTATED
sovereignty for the support of the government and for all its public needs.
Here, the coco-levy funds were imposed pursuant to law, namely, R.A. Pambansang Koalisyon ng mga Samahang Magsasaka at Manggaga
6260 and P.D. 276. The funds were collected and managed by the PCA, an
 supplement to coconut farmers and encourage the creation of a
Niyugan (PKSMMN) vs. Executive Secretary
sustainable local market demand for coconut oil and other coconut
Industry Development Fund (CID Fund) to channel for the
products.  The Executive Order sought to establish a P1-billion
26

ultimate direct benefit of coconut farmers part of the levies that

fund by disposing of assets acquired using coco-levy funds or
they were already paying. The Philippine Coconut Authority
assets of entities supported by those funds.  A committee was
27

(PCA) was to provide P100 million as initial capital of the CID

created to manage the fund under this program.  A majority vote
28

Fund and, thereafter, give the Fund at least P0.20 per kilogram of
of its members could engage the services of a reputable auditing
copra resecada out of the PCA’s collection of coconut consumers
firm to conduct periodic audits. 29

stabilization levy. In case of the lifting of this levy, the PCA was
At about the same time, President Estrada issued E.O.
then to impose a permanent levy of P0.20 on the first sale of every
313,  which created an irrevocable trust fund known as the
30

kilogram of copra to form part of the CID Fund.  Also, under P.D.
9

Coconut Trust Fund (the Trust Fund). This aimed to provide

582, the Philippine National Bank (PNB), then owned by the
financial assistance to coconut farmers, to the coconut industry,
Government, was to receive on deposit, administer, and use the
and to other agri-related programs.  The shares of stock of SMC
31

CID Fund.  P.D. 582 authorized the PNB to invest the unused
10

were to serve as the Trust Fund’s initial capital.  These shares 32

portion of the CID Fund in easily convertible investments, the

were acquired with CII Funds and constituted approximately 27%
earnings of which were to form part of the Fund. 11

of the outstanding capital stock of SMC.

In 1975 President Marcos enacted P.D. 755  which approved12
_______________
the acquisition of a commercial bank for the benefit of the coconut 24 Id., Section 1.
farmers to enable such bank to promptly and efficiently realize the 25 Entitled ESTABLISHING THE ERAP’S SAGIP NIYUGAN PROGRAM AS AN
EMERGENCY MEASURE TO ALLEVIATE THE PLIGHT OF COCONUT FARMERS
industry’s credit policy.  Thus, the PCA bought 72.2% of the
13
ADVERSELY AFFECTED BY LOW PRICES OF COPRA AND OTHER COCONUT PRODUCTS,
shares of stock of First United Bank, headed by AND PROVIDING FUNDS THEREFOR .
Pedro Cojuangco.  Due to changes in its corporate identity and
14
26 Id., Section 1.
purpose, the bank’s articles of incorporation were amended in July 27 Id., Section 4.
28 Id.
1975, resulting in a change in the bank’s name from First United 29 Id., Section 5.
Bank to United Coconut Planters Bank (UCPB). 15
30 Entitled RATIONALIZING THE USE OF THE COCONUT LEVY FUNDS BY
_______________ CONSTITUTING A “FUND FOR ASSISTANCE TO COCONUT FARMERS” AS AN
9  Id., Section 3-B(c). IRREVOCABLE TRUST FUND AND CREATING A COCONUT TRUST FUND COMMITTEE
10 Id., Section 3-B. FOR THE MANAGEMENT THEREOF.
11 Supra note 9. 31 Id., Section 2.
12 Entitled APPROVING THE CREDIT POLICY FOR THE COCONUT INDUSTRY AS 32 Id., Section 3.
RECOMMENDED BY THE PHILIPPINE COCONUT AUTHORITY AND PROVIDING FUNDS
THEREFOR. 57
13 Id., Section 1.
14 Republic of the Philippines v. Sandiganbayan, G.R. No. 118661, January 22, VOL. 669, APRIL 10, 2012
2007, 512 SCRA 25.
15 Id. Pambansang Koalisyon ng mga Samahang Magsasaka at Manggaga
55
Niyugan (PKSMMN) vs. Executive Secretary
E.O. 313 designated UCPB, through its Trust Department, as the
VOL. 669, APRIL 10, 2012 Trust Fund’s trustee bank. The Trust Fund Committee would
Pambansang Koalisyon ng mga Samahang Magsasaka at Manggagawa administer,
sa manage, and supervise the operations of the Trust
Fund.  The Committee would designate an external auditor to do
33

Niyugan (PKSMMN) vs. Executive Secretary an annual audit or as often as needed but it may also request the
On July 14, 1976 President Marcos enacted P.D. 961,  the 16
Commission on Audit (COA) to intervene. 34

Coconut Industry Code, which consolidated and codified existing To implement its mandate, E.O. 313 directed the Presidential
laws relating to the coconut industry. The Code provided that Commission on Good Government, the Office of the Solicitor
surpluses from the CCS Fund and the CID Fund collections, not General, and other government agencies to exclude the 27% CIIF
used for replanting and other authorized purposes, were to be SMC shares from Civil Case 0033, entitled Republic of the
invested by acquiring shares of stock of corporations, including Philippines v. Eduardo Cojuangco, Jr., et al., which was then
the San Miguel Corporation (SMC), engaged in undertakings pending before the Sandiganbayan and to lift the sequestration
related to the coconut and palm oil industries.  UCPB was to make
17
over those shares. 35

such investments and equitably distribute these for free to coconut On January 26, 2001, however, former President Gloria
farmers.  These investments constituted the Coconut Industry
18
Macapagal-Arroyo ordered the suspension of E.O.s 312 and
Investment Fund (CIIF). P.D. 961 also provided that the coconut 313.  This notwithstanding, on March 1, 2001 petitioner
36

levy funds (coco-levy funds) shall be owned by the coconut organizations and individuals brought the present action in G.R.
farmers in their private capacities.  This was reiterated in the PD
19
147036-37 to declare E.O.s 312 and 313 as well as Article III,
1468  amendment of June 11, 1978.
20
Section 5 of P.D. 1468 unconstitutional. On April 24, 2001 the
In 1980, President Marcos issued P.D. 1699,  suspending the 21
other sets of petitioner organizations and individuals instituted
collections of the CCS Fund and the CID Fund. But in 1981 he G.R. 147811 to nullify Section 2 of P.D. 755 and Article III,
issued P.D. 1841  which revived the collection of coconut levies.
22
Section 5 of P.D.s 961 and 1468 also for being unconstitutional.
P.D. 1841 renamed the CCS Fund into the Coconut Industry
Stabilization Fund (CIS Fund).  This Fund was to be earmarked
23

The Issues Presented

proportionately among several develop-
_______________
16 Entitled AN ACT TO CODIFY THE LAWS DEALING WITH THE DEVELOPMENT The parties submit the following issues for adjudication:
OF THE COCONUT AND OTHER PALM OIL INDUSTRY AND FOR OTHER PURPOSES . _______________
17 Id., Article III, Section 9. 33 Id., Section 6.
18 Id., Article III, Section 10. 34 Id., Section 13.
19 Id., Article III, Section 5. 35 Id., Section 14.
20 Entitled REVISING PRESIDENTIAL DECREE NUMBERED NINE HUNDRED SIXTY 36 http://www.afrim.org.ph/Archives/2001/BusinessWorld/September/17/Estrad
ONE. a%20s%20EOs%20creating%20coco%20levy%20
21 Entitled AN ACT SUSPENDING THE COLLECTION OF THE COCONUT trust%20fund%20challenged.txt (last accessed July 8, 2011).
CONSUMERS STABILIZATION FUND LEVY AND SIMILAR LEVIES AND PROVIDING IN
CONNECTION THEREWITH APPROPRIATE MEASURES TO CUSHION THE ADVERSE 58
EFFECTS THEREOF ON THE COCONUT FARMERS.
22 Entitled PRESCRIBING A SYSTEM OF FINANCING THE SOCIO-ECONOMIC AND 58 SUPREME COURT REPORTS ANNOTATED
DEVELOPMENTAL PROGRAM FOR THE BENEFIT OF THE COCONUT FARMERS AND
ACCORDINGLY AMENDING THE LAWS THEREON. Pambansang Koalisyon ng mga Samahang Magsasaka at Manggaga
23 Id., Section 5.
Niyugan (PKSMMN) vs. Executive Secretary
56 Procedurally –
56 SUPREME COURT REPORTS ANNOTATED 1. Whether or not petitioners’ special civil actions
of certiorari under Rule 65 constituted the proper remedy for their
Pambansang Koalisyon ng mga Samahang Magsasaka at Manggagawa sa and
actions;
Niyugan (PKSMMN) vs. Executive Secretary 2. Whether or not petitioners have legal standing to bring
ment programs, such as coconut hybrid replanting program, the same to court.
insurance coverage for the coconut farmers, and scholarship On the substance –
program for their children. 24 3. Whether or not the coco-levy funds are public funds; and
In November 2000 then President Joseph Estrada issued 4. Whether or not (a) Section 2 of P.D. 755, (b) Article III,
Executive Order (E.O.) 312,  establishing
25
a Sagip Section 5 of P.D.s 961 and 1468, (c) E.O. 312, and (d) E.O. 313
Niyugan Program which sought to provide immediate income are unconstitutional.
 The Rulings of the Court Internal Revenue (BIR) treated them as public funds and the very
laws governing coconut levies recognize their public character. 45

First. UCPB questions the propriety of the present petitions The Court has also recently declared that the coco-levy funds
for certiorari and mandamus under Rule 65 on the ground that are in the nature of taxes and can only be used for public
there are no ongoing proceedings in any tribunal or board or purpose.  Taxes are enforced proportional contributions from
46

before a government official exercising judicial, quasi-judicial, or persons and property, levied by the State by virtue of its
ministerial functions.  UCPB insists that the Court exercises
37 sovereignty for the support of the government and for all its
_______________
appellate jurisdiction with respect to issues of constitutionality or
43 423 Phil. 735; 372 SCRA 462 (2001).
validity of laws and presidential orders. 38
44 Black’s Law Dictionary (5th ed., 1979), p. 1071.
_______________ 45 Supra note 43, at p. 772; p. 488.
37 Macalintal v. Commission on Elections, 453 Phil. 586, 625; 405 SCRA 614, 46 Philippine Coconut Producers Federation, Inc. (COCOFED) v. Republic of
626 (2003). the Philippines, G.R. Nos. 177857-58 and 178193, January 24, 2012, 663 SCRA 514.
38 1987 Constitution, Article VIII, Section 5. The Supreme Court shall have the
following powers: 61
(1) Exercise original jurisdiction over cases affecting ambassadors, other
public ministers and consuls, and over petitions for certiorari, VOL. 669, APRIL 10, 2012
prohibition, mandamus, quo warranto, and habeas corpus.
(2) Review, revise, modify, or affirm on appeal or certiorari, as the law or the Pambansang Koalisyon ng mga Samahang Magsasaka at Manggaga
Rules of Court may provide, final judgments and orders of lower courts in:
(a) All cases in which the constitutionality or validity of any treaty, Niyugan (PKSMMN) vs. Executive Secretary
international or executive agreement, public needs.  Here, the coco-levy funds were imposed 47

pursuant to law, namely, R.A. 6260 and P.D. 276. The funds were
59
collected and managed by the PCA, an independent government
VOL. 669, APRIL 10, 2012 corporation directly under the President.  And, as the respondent 48

public
Pambansang Koalisyon ng mga Samahang Magsasaka at Manggagawa sa officials pointed out, the pertinent laws used the
term levy,  which means to tax,  in describing the exaction.
49 50

Niyugan (PKSMMN) vs. Executive Secretary _______________

But, as the Court previously held, where there are serious 47 TAX PRINCIPLES AND REMEDIES , Japar B. Dimaampao, (2nd ed., 2005), p. 1;
citing 1 Cooley 62.
allegations that a law has infringed the Constitution, it becomes 48 Supra note 20, Article II, Section 1.
not only the right but the duty of the Court to look into such 49 R.A. 6260 –
allegations and, when warranted, uphold the supremacy of the Section 8. The Coconut Investment Fund. There shall
be levied on the coconut farmer a sum equivalent to fifty-five centavos
Constitution.  Moreover, where the issues raised are of paramount
39
(P0.55) on the first domestic sale of every one hundred kilograms of copra,
importance to the public, as in this case, the Court has the or its equivalent in terms of other coconut products, for which he shall be
discretion to brush aside technicalities of procedure. 40
issued a receipt which shall be converted into shares of stock of the
Second. The Court has to uphold petitioners’ right to Company upon its incorporation as a private entity in accordance with
Section seven hereof. x x x (Emphasis ours)
institute these petitions. The petitioner organizations in these cases P.D. 276 –
represent coconut farmers on whom the burden of the coco-levies 1. x x x
attaches. It is also primarily for their benefit that the levies were (a) A levy, initially, of P15.00 per 100 kilograms of
copra resecada or its equivalent in other coconut products, shall be
imposed. imposed on every first sale, in accordance with the mechanics established
The individual petitioners, on the other hand, join the petitions under R.A. 6260, effective at the start of business hours on August 10,
as taxpayers. The Court recognizes their right to restrain officials 1973.
from wasting public funds through the enforcement of an The proceeds from the levy shall be deposited with the Philippine
National Bank or any other government bank to the account of the Coconut
unconstitutional statute.  This so-called taxpayer’s suit is based on
41
Consumers Stabilization Fund, as a separate trust fund which shall not
the theory that expenditure of public funds for the purpose of form part of the general fund of the government. (Emphasis ours)
executing an unconstitutional act is a misapplication of such P.D. 582 –
Section 3-B. Coconut Industry Development Fund. x x x
funds. 42
c)  x x x As the initial funds of the Coconut Industry Development Fund, the
Besides, the 1987 Constitution accords to the citizens a greater Authority is hereby directed to pay to the Coconut Industry Development Fund the
participation in the affairs of government. Indeed, it provides for amount of One Hundred Million Pesos (P100,000,000.00) out of its collections of the
people's initiative, the right to information on matters of public coconut consumers stabilization levy and thereafter the Authority shall pay to the said
Fund an amount equal to at least twenty centavos (P0.20) per
concern (including the right to know the
_______________ 62
law, presidential decree, proclamation, order, instruction, ordinance, or
regulation is in question. 62 SUPREME COURT REPORTS ANNOTATED
(b)  All cases involving the legality of any tax, impost, assessment,
or toll, or any penalty imposed in relation thereto. x x x (Emphasis ours) Pambansang Koalisyon ng mga Samahang Magsasaka at Manggaga
39 Tañada v. Angara, 338 Phil. 546, 574; 272 SCRA 18, 47 (1997).
40 Integrated Bar of the Philippines v. Zamora, 392 Phil. 618, 634; 338 SCRA Niyugan (PKSMMN) vs. Executive Secretary
81, 101 (2000). Of course, unlike ordinary revenue laws, R.A. 6260 and P.D.
41 Phil. Constitution Assn., Inc. v. Mathay, 124 Phil. 890, 898; 18 SCRA 300,
306 (1966).
276 did not raise money to boost the government’s general funds
42 Tan v. Macapagal, 150 Phil. 778, 783; 43 SCRA 677, 680 (1972). but to provide means for the rehabilitation and stabilization of a
threatened industry, the coconut industry, which is so affected
60 with public interest as to be within the police power of the
60 SUPREME COURT REPORTS ANNOTATED State.  The funds sought to support the coconut industry, one of
51

the main economic backbones of the country, and to secure

Pambansang Koalisyon ng mga Samahang Magsasaka at Manggagawa sa benefits for the coconut farmers and farm workers. The
economic
Niyugan (PKSMMN) vs. Executive Secretary subject laws are akin to the sugar liens imposed by Sec. 7(b) of
state of health of their President), as well as the right to file cases P.D. 388,  and the oil price stabilization funds under P.D.
52

questioning the factual bases for the suspension of the privilege of 1956,  as amended by E.O. 137.
53 54

writ of habeas corpus or declaration of martial law. These Respondent UCPB suggests that the coco-levy funds are
provisions enlarge the people’s right in the political as well as the closely similar to the Social Security System (SSS) funds, which
judicial field. It grants them the right to interfere in the affairs of have been declared to be not public funds but properties of the
government and challenge any act tending to prejudice their SSS members and held merely in trust by the government.  But 55

interest. the SSS Law  collects premium contributions.

56

Third. For some time, different and conflicting notions had _______________

kilogram of copra resecada or its equivalent out of its current collections of the
been formed as to the nature and ownership of the coco-levy coconut consumers stabilization levy. In the event that the coconut consumers
funds. The Court, however, finally put an end to the dispute when stabilization levy is lifted, a permanent levy of twenty centavos (P0.20) is thereafter
it categorically ruled in Republic of the Philippines v. automatically imposed on the first sale of every kilogram of copra or its equivalent in
terms of other coconut products x x x. (Emphasis ours)
COCOFED  that these funds are not only affected with public
43
50 Black’s Law Dictionary (5th ed., 1979), p. 816.
interest; they are, in fact, prima facie public funds. Prima 51 Republic of the Philippines v. COCOFED, supra note 43, at p. 765; p. 484,
facie means a fact presumed to be true unless disproved by some citing Caltex Philippines, Inc. v. Commission on Audit, G.R. No. 92585, May 8, 1992,
evidence to the contrary. 44 208 SCRA 726, 756 and Osmeña v. Orbos, G.R. No. 99886, March 31, 1993, 220
SCRA 703, 711.
The Court was satisfied that the coco-levy funds were raised 52 Entitled CREATING THE PHILIPPINE SUGAR COMMISSION.
pursuant to law to support a proper governmental purpose. They 53 Entitled IMPOSING AN AD VALOREM TAX ON CERTAIN MANUFACTURED OILS
were raised with the use of the police and taxing powers of the AND OTHER FUELS; BUNKER FUEL OIL AND DIESEL FUEL OIL; REVISING THE RATES
OF SPECIFIC TAX THEREON; ABOLISHING THE OIL INDUSTRY SPECIAL FUND; AND FOR
State for the benefit of the coconut industry and its farmers in
OTHER PURPOSES.
general. The COA reviewed the use of the funds. The Bureau of 54 Entitled EXPANDING THE SOURCES AND UTILIZATION OF THE OIL PRICE
STABILIZATION FUND (OPSF) BY AMENDING PRESIDENTIAL DECREE No. 1956.
 55 Catholic Archbishop of Manila v. Social Security Commission, 110 Phil. 616,
622; 1 SCRA 10, 16(1961). VOL. 669, APRIL 10, 2012
56 Republic Act 1161.
Pambansang Koalisyon ng mga Samahang Magsasaka at Manggaga
63 Niyugan (PKSMMN) vs. Executive Secretary
VOL. 669, APRIL 10, 2012 “Section 5. Exemptions.—The Coconut Consumers Stabilization
Fund and the Coconut Industry Development Fund as well as all
Pambansang Koalisyon ng mga Samahang Magsasaka at Manggagawa sa
disbursements of said funds for the benefit of the coconut farmers as herein
Niyugan (PKSMMN) vs. Executive Secretary authorized shall not be construed or interpreted, under any law or
regulation, as special and/or fiduciary funds, or as part of the general
It does not collect taxes from members for a specific public funds of the national government within the contemplation of P.D. No.
purpose. They pay contributions in exchange for insurance 711; nor as a subsidy, donation, levy, government funded investment,
protection and benefits like loans, medical or health services, and or government share within the contemplation of P.D. 898, the
retirement packages. The benefits accrue to every SSS member, intention being that said Fund and the disbursements thereof as herein
not to the public, in general.57 authorized for the benefit of the coconut farmers shall be owned by
Furthermore, SSS members do not lose ownership of their them in their own private capacities.” (Emphasis ours)
contributions. The government merely holds these in trust,
together with his employer’s contribution, to answer for his future Section 5 of P.D. 1468 basically reproduces the above
benefits.  The coco-levy funds, on the other hand, belong to the
58 provision, thus—
“Section 5. Exemption.—The Coconut Consumers Stabilization
government and are subject to its administration and disposition. Fund and the Coconut Industry Development Fund, as well as all
Thus, these funds, including its incomes, interests, proceeds, or disbursements as herein authorized, shall not be construed or
profits, as well as all its assets, properties, and shares of stocks interpreted, under any law or regulation, as special and/or fiduciary
procured with such funds must be treated, used, administered, and funds, or as part of the general funds of the national
managed as public funds. 59
government within the contemplation of P.D. 711; nor as subsidy,
Lastly, the coco-levy funds are evidently special funds. donation, levy government funded investment, or government share
In Gaston v. Republic Planters Bank,  the Court held that the State
60 within the contemplation of P.D. 898, the intention being that said
collected stabilization fees from sugar millers, planters, and Fund and the disbursements thereof as herein authorized for the
benefit of the coconut farmers shall be owned by them in their private
producers for a special purpose: to finance the growth and capacities: Provided, however, That the President may at any time
development of the sugar industry and all its components. The fees authorize the Commission on Audit or any other officer of the government
were levied for a special purpose and, therefore, constituted to audit the business affairs, administration, and condition of persons and
special fund when collected. Its character as such fund was made entities who receive subsidy for coconut-based consumer products x x x.”
clear by the fact that they were deposited in the PNB (then a (Emphasis ours)
wholly owned government bank) and not in the Philippine
Treasury. In Osmeña v. Orbos,  the Court held that the oil price
61 Notably, the raising of money by levy on coconut farm
stabilization fund was a special fund mainly production, a form of taxation as already stated, began in 1971 for
_______________ the purpose of developing the coconut industry and promoting the
57 Rollo (G.R. Nos. 147036-37), p. 362, Public interest of coconut farmers. The use of the fund was expanded in
Respondents’ REPLY to COMMENT of UCPB.
58 REVIEWER IN LABOR AND SOCIAL LEGISLATION, Samson S. Alcantara and
1973 to include the stabilization of the domestic market for
Samson B. Alcantara, Jr., (2004 ed., with 2007 Supplement), p. 982. coconut-based consumer goods and in 1974
59 Republic of the Philippines v. COCOFED, supra note 43, at p. 776; p. 490, 66
citing Executive Order 277, DIRECTING THE MODE OF TREATMENT UTILIZATION,
ADMINISTRATION AND MANAGEMENT OF THE COCONUT LEVY FUNDS, September 24,
66 SUPREME COURT REPORTS ANNOTATED
1995.
60 242 Phil. 377; 158 SCRA 626 (1988).
Pambansang Koalisyon ng mga Samahang Magsasaka at Manggaga
61 Osmeña v. Orbos, supra note 51. Niyugan (PKSMMN) vs. Executive Secretary
64 to divert part of the funds for obtaining direct benefit to coconut
farmers. After five years or in 1976, however, P.D. 961 declared
64 SUPREME COURT REPORTS ANNOTATED the coco-levy funds private property of the farmers. P.D. 1468
Pambansang Koalisyon ng mga Samahang Magsasaka at Manggagawa reiterated
sa this declaration in 1978. But neither presidential decree
actually turned over possession or control of the funds to the
Niyugan (PKSMMN) vs. Executive Secretary
farmers in their private capacity. The government continued to
because this was segregated from the general fund and placed in wield undiminished authority over the management and
what the law referred to as a trust account. Yet it remained subject disposition of those funds.
to COA scrutiny and review. The Court finds no substantial In any event, such declaration is void. There is ownership
distinction between these funds and the coco-levy funds, except as when a thing pertaining to a person is completely subjected to his
to the industry they each support. will in everything that is not prohibited by law or the concurrence
Fourth. Petitioners in G.R. 147811 assert that Section 2 of with the rights of another.  An owner is free to exercise all
63

P.D. 755 above is void and unconstitutional for disregarding the attributes of ownership: the right, among others, to possess, use
public character of coco-levy funds. The subject section provides: and enjoy, abuse or consume, and dispose or alienate the thing
“Section 2. Financial Assistance.—x x x and since the operations,
and activities of the Philippine Coconut Authority are all in accord with the
owned.  The owner is of course free to waive all or some of these
64

present social economic plans and programs of the Government, all rights in favor of others. But in the case of the coconut farmers,
collections and levies which the Philippine Coconut Authority is they could not, individually or collectively, waive what have not
authorized to levy and collect such as but not limited to the Coconut been and could not be legally imparted to them.
Consumers’ Stabilization Levy, and the Coconut Industry Development Section 2 of P.D. 755, Article III, Section 5 of P.D. 961, and
Fund as prescribed by Presidential Decree No. 582 shall not be Article III, Section 5 of P.D. 1468 completely ignore the fact that
considered or construed, under any law or regulation, special and/or coco-levy funds are public funds raised through taxation. And
fiduciary funds and do not form part of the general funds of the since taxes could be exacted only for a public purpose, they cannot
national government within the contemplation of Presidential Decree No.
711.” (Emphasis ours)
be declared private properties of individuals although such
individuals fall within a distinct group of persons. 65

The Court has, however, already passed upon this question The Court of course grants that there is no hard-and-fast rule
in Philippine Coconut Producers Federation, Inc. (COCOFED) v. for determining what constitutes public purpose. It is an elastic
Republic of the Philippines.  It held as unconstitutional Section 2
62 concept that could be made to fit into modern stan-
of P.D. 755 for “effectively authorizing the PCA to utilize portions _______________
63 Cojuangco v. Sandiganbayan, G.R. No. 183278, April 24, 2009, 586 SCRA
of the CCS Fund to pay the financial commitment of the farmers 790, 796.
to acquire UCPB and to deposit portions of the CCS Fund levies 64 Id., at p. 797.
with UCPB interest free. And as there also provided, the CCS 65 Planters Products, Inc. v. Fertiphil Corporation, G.R. No. 166006, March
14, 2008, 548 SCRA 485, 510, citing Constitutional Law, Isagani Cruz, (1998 ed.), p.
Fund, CID Fund and like levies that PCA is authorized to collect 90.
shall be considered as non-special or fiduciary funds to be
transferred to the general fund of the Government, meaning they 67
shall be deemed private funds.” VOL. 669, APRIL 10, 2012
Identical provisions of subsequent presidential decrees
likewise declared coco-levy funds private properties of coconut Pambansang Koalisyon ng mga Samahang Magsasaka at Manggaga
farmers. Article III, Section 5 of P.D. 961 reads: Niyugan (PKSMMN) vs. Executive Secretary
_______________
62 Supra note 46.
dards. Public purpose, for instance, is no longer restricted to
traditional government functions like building roads and school
65 houses or safeguarding public health and safety. Public purpose
has been construed as including the promotion of social justice. original charters, and on a post-audit basis: (a) constitutional bodies, commissions
and offices that have been granted fiscal autonomy under this Constitution; (b)
Thus, public funds may be used for relocating illegal settlers, autonomous state colleges and universities; (c) other government-owned or controlled
building low-cost housing for them, and financing both urban and corporations and their subsidiaries; and (d) such non-governmental entities receiving
agrarian reforms that benefit certain poor individuals. Still, these subsidy or equity, directly or indirectly, from or through the Government, which are
uses relieve volatile iniquities in society and, therefore, impact on required by law or the granting institution to submit to such audit as a condition of
subsidy or equity x x x. (Emphasis ours)
public order and welfare as a whole. 70 Section 2. Jurisdiction of The Commission on Audit.—The Authority and
But the assailed provisions, which removed the coco-levy powers of the Commission on Audit shall extend to and comprehend all matters
funds from the general funds of the government and declared them relating to auditing and accounting procedures, systems, and controls, including
inquiry into the utilization of resources and operating performance, the keeping of the
private properties of coconut farmers, do not appear to have a general accounts of the Government, the preservation of vouchers pertaining thereto,
color of social justice for their purpose. The levy on copra that the examination and inspection of the books, records, and papers relating to those
farmers produce appears, in the first place, to be a business tax accounts; and the audit and settlement of the accounts of all persons respecting funds
judging by its tax base. The concept of farmers-businessmen is or property received or held by them in an accountable capacity, as well as the
examination, audit, and settlement of all debts and claims of any sort due from or
incompatible with the idea that coconut farmers are victims of owing to the Government or any of its subdivisions, agencies, and
social injustice and so should be beneficiaries of the taxes raised instrumentalities. The said jurisdiction extends to all government-owned or
from their earnings. controlled corporations and other self-governing boards, commissions, or
agencies of the Government, and as herein prescribed, including non-
It would altogether be different of course if the laws governmental entities subsidized by the Government, those funded by donations
mentioned set apart a portion of the coco-levy fund for improving through the Government, those re-
the lives of destitute coconut farm owners or workers for their
social amelioration to establish a proper government purpose. The 70
support for the poor is generally recognized as a public duty and 70 SUPREME COURT REPORTS ANNOTATED
has long been an accepted exercise of police power in the
promotion of the common good.  But the declarations do not
66
Pambansang Koalisyon ng mga Samahang Magsasaka at Manggaga
distinguish between wealthy coconut farmers and the Niyugan (PKSMMN) vs. Executive Secretary
impoverished ones. And even if they did, the Government cannot And there is no legitimate reason why such funds should be
just embark on a philanthropic orgy of inordinate dole-outs for shielded from COA review and audit. The PCA, which
motives political or otherwise.  Consequently, such declarations
67
implements the coco-levy laws and collects the coco-levy funds, is
are void since they appropriate public funds for a government-owned and controlled corporation subject to COA
_______________ review and audit.
66 Binay v. Domingo, G.R. No. 92389, September 11, 1991, 201 SCRA 508,
516.
E.O. 313 suffers from an additional infirmity. Its title,
67 Id. “Rationalizing the Use of the Coconut Levy Funds by Constituting
a ‘Fund for Assistance to Coconut Farmers’ as an Irrevocable
68 Trust Fund and Creating a Coconut Trust Fund Committee for the
68 SUPREME COURT REPORTS ANNOTATED Management thereof” tends to mislead. Apparently, it intends to
create a trust fund out of the coco-levy funds to provide economic
Pambansang Koalisyon ng mga Samahang Magsasaka at Manggagawa sa
assistance to the coconut farmers and, ultimately, benefit the
Niyugan (PKSMMN) vs. Executive Secretary coconut industry.  But on closer look, E.O. 313 strays from the
71

private purpose and, therefore, violate the citizens’ right to special purpose for which the law raises coco-levy funds in that it
substantive due process. 68
permits the use of coco-levy funds for improving productivity in
On another point, in stating that the coco-levy fund “shall not other food areas. Thus:
be construed or interpreted, under any law or regulation, as special “Section 2. Purpose of the Fund.—The Fund shall be established
and/or fiduciary funds, or as part of the general funds of the for the purpose of financing programs of assistance for the benefit of the
national government,” P.D.s 961 and 1468 seek to remove such coconut farmers, the coconut industry, and other agri-related programs
intended to maximize food productivity, develop business
fund from COA scrutiny.
opportunities in the countryside, provide livelihood alternatives, and
This is also the fault of President Estrada’s E.O. 312 which promote anti-poverty programs. (Emphasis ours)
deals with P1 billion to be generated out of the sale of coco-fund xxxx
acquired assets. Thus— Section 9. Use and Disposition of the Trust Income.—The Coconut
“Section 5. Audit of Fund and Submission of Report.—The Trust Fund Committee, on an annual basis, shall determine and establish
Committee, by a majority vote, shall engage the services of a reputable the amount comprising the Trust Income. After such determination, the
auditing firm to conduct periodic audits of the fund. It shall render a Committee shall earmark, allocate and disburse the Trust Income for the
quarterly report on all pertinent transactions and availments of the fund to following purposes, namely:
the Office of the President within the first three (3) working days of the xxxx
succeeding quarter.” (Emphasis ours) (d) Thirty percent (30%) of the Trust Income shall be used to
assist and fund agriculturally-related programs for
E.O. 313 has a substantially identical provision governing the _______________
quired to pay levies or government share, and those partly funded by the
management and disposition of the Coconut Trust Fund Government. (Emphasis ours)
capitalized with the substantial SMC shares of stock that the coco- 71 Supra note 30, Whereas clauses.
fund acquired. Thus—
71
“Section 13. Accounting.—x x x
The Fund shall be audited annually or as often as necessary by an
external auditor designated by the Committee. The VOL. 669, APRIL 10, 2012
Committee may also request the Commission on Audit to conduct an audit
Pambansang Koalisyon ng mga Samahang Magsasaka at Manggaga
of the Fund.” (Emphasis ours)
Niyugan (PKSMMN) vs. Executive Secretary
But, since coco-levy funds are taxes, the provisions of P.D.s the Government, as reasonably determined by the Trust Fund Committee,
755, 961 and 1468 as well as those of E.O.s 312 and 313 that implemented for the purpose of: (i) maximizing food productivity in the
remove such funds and the assets acquired through them from the agriculture areas of the country, (ii) enhancing the upliftment and well-
jurisdiction of the COA violate Article IX-D, Section being of the living conditions of farmers and agricultural workers, (iii)
_______________ developing viable industries and business opportunities in the countryside,
68 Pepsi-Cola Bottling Company of the Philippines, Inc. v. Municipality of (iv) providing alternative means of livelihood to the direct dependents of
Tanauan, Leyte, 161 Phil. 591, 602; 69 SCRA 460, 466 (1976). agriculture businesses and enterprises, and (v) providing financial
assistance and support to coconut farmers in times of economic hardship
69 due to extremely low prices of copra and other coconut products, natural
VOL. 669, APRIL 10, 2012 calamities, world market dislocation and similar occurrences, including
financial support to the ERAP’s Sagip Niyugan Program established under
Pambansang Koalisyon ng mga Samahang Magsasaka at Manggagawa sa Order No. 312 dated November 3, 2000; x x x.” (Emphasis
Executive
Niyugan (PKSMMN) vs. Executive Secretary ours)
2(1)  of the 1987 Constitution. Section 2(1) vests in the COA the
69
Clearly, E.O. 313 above runs counter to the constitutional
power and authority to examine uses of government money and provision which directs that all money collected on any tax levied
property. The cited P.D.s and E.O.s also contravene Section 2  of 70
for a special purpose shall be treated as a special fund and paid out
P.D. 898 (Providing for the Restructuring of the Commission on for such purpose only.  Assisting other agriculturally-related
72

Audit), which has the force of a statute. programs is way off the coco-fund’s objective of promoting the
_______________
69 Section 2.  (1) The Commission on Audit shall have the power, authority, general interests of the coconut industry and its farmers.
and duty to examine, audit, and settle all accounts pertaining to the revenue and A final point, the E.O.s also transgress P.D. 1445,  Section 73

receipts of, and expenditures or uses of funds and property, owned or held in 84(2),  the first part by the previously mentioned sections of
74

trust by, or pertaining to, the Government, or any of its subdivisions, agencies, or _______________
instrumentalities, including government-owned or controlled corporations with 72 Supra note 38, Article VI, Section 29. x x x
 (3) All money collected on any tax levied for a special purpose shall be
treated as a special fund and paid out for such purpose only. If the purpose for Pambansang Koalisyon ng mga Samahang Magsasaka at Manggaga
which a special fund was created has been fulfilled or abandoned, the balance, if any,
shall be transferred to the general funds of the Government. (Emphasis ours) Niyugan (PKSMMN) vs. Executive Secretary
73 Entitled ORDAINING AND INSTITUTING A GOVERNMENT AUDITING CODE OF In effect, the above transfers the power to allocate, use, and
THE PHILIPPINES. disburse coco-levy funds that P.D. 232 vested in the PCA and
74 Section 84. Disbursement of government funds.
xxxx transferred the same, without legislative authorization and in
violation of P.D. 232, to the Committees mentioned above. An
2.  Trust funds shall not be paid out of any public treasury or depository
executive order cannot repeal a presidential decree which has the
except in fulfillment of the purpose for which the trust was created or funds received,
and upon authorization of the legislative body, or head of any other agency of the
same standing as a statute enacted by Congress.
government having
UCPB invokes the principle of separability to save the
72 assailed laws from being struck down. The general rule is that
72 SUPREME COURT REPORTS ANNOTATED where part of a statute is void as repugnant to the Constitution,
while another part is valid, the valid portion, if susceptible to
Pambansang Koalisyon ng mga Samahang Magsasaka at Manggagawa beingsaseparated from the invalid, may stand and be enforced.
Niyugan (PKSMMN) vs. Executive Secretary When the parts of a statute, however, are so mutually dependent
E.O. 313 and the second part by Section 4 of E.O. 312 and and connected, as conditions, considerations, or compensations for
Sections 6 and 7 of E.O. 313. E.O. 313 vests the power to each other, as to warrant a belief that the legislature intended them
administer, manage, and supervise the operations and as a whole, the nullity of one part will vitiate the rest. In which
disbursements of the Trust Fund it established (capitalized with case, if some parts are unconstitutional, all the other provisions
SMC shares bought out of coco-levy funds) in a Coconut Trust which are thus dependent, conditional, or connected must
Fund Committee. Thus— consequently fall with them. 75

“Section 6. Creation of the Coconut Trust Fund Committee.—A But, given that the provisions of E.O.s 312 and 313, which as
Committee is hereby created to administer, manage and supervise the already stated invalidly transferred powers over the funds to two
operations of the Trust Fund, chaired by the President with ten (10) committees that President Estrada created, the rest of their
members, as follows: provisions became non-operational. It is evident that President
(a) four (4) representatives from the government sector, two of Estrada would not have created the new funding programs if they
whom shall be the Secretary of Agriculture and the Secretary of were to be managed by some other entity. Indeed, he made himself
Agrarian Reform who shall act as Vice Chairmen;
Chairman of the Coconut Trust Fund and left to his discretion the
(b)  four (4) representatives from coconut farmers’
organizations, one of whom shall come from a list of nominees appointment of the members of the other committee.
from the Philippine Coconut Producers Federation Inc. WHEREFORE, the Court GRANTS the petition in G.R.
(“COCOFED”); 147036-37, PARTLY GRANTS the petition in G.R. 147811, and
(c) a representative from the CIIF; and declares the following VOID:
(d) a representative from a non-government organization _______________
(NGO) involved in agricultural and rural development. 75 Statutory Construction, Ruben E. Agpalo, (5th ed., 2003), pp. 37-38.
All decisions of the Coconut Trust Fund Committee shall be determined by
75
a majority vote of all the members.
The Coconut Trust Fund Committee shall perform the functions and duties VOL. 669, APRIL 10, 2012
set forth in Section 7 hereof, with the skill, care, prudence and diligence
necessary under the circumstances then prevailing that a prudent man Pambansang Koalisyon ng mga Samahang Magsasaka at Manggaga
acting in like capacity would exercise. Niyugan (PKSMMN) vs. Executive Secretary
The members of the Coconut Trust Fund Committee shall be appointed by
the President and shall hold office at his pleasure.
a) E.O. 312, for being repugnant to Section 84(2) of
The Coconut Trust Fund Committee is authorized to hire administrative, P.D. 1445, and Article IX-D, Section 2(1) of the
technical and/or support staff as may be required to enable it to effectively Constitution; and
perform its functions and responsibilities. (Emphasis ours) b) E.O. 313, for being in contravention of Section
_______________ 84(2) of P.D. 1445, and Article IX-D, Section 2(1) and
control thereof, and subject to pertinent budget law, rules and regulations.
Article VI, Section 29(3) of the Constitution.
73 The Court has previously declared Section 2 of P.D. 755 and
Article III, Section 5 of P.D.s 961 and 1468 unconstitutional.
VOL. 669, APRIL 10, 2012 SO ORDERED.
Corona (C.J.), Velasco, Jr., Brion, Bersamin, Del Castillo,
Pambansang Koalisyon ng mga Samahang Magsasaka at Manggagawa sa
Villarama, Jr., Perez, Mendoza, Sereno and Reyes, JJ., concur.
Niyugan (PKSMMN) vs. Executive Secretary Carpio, J., No Part. I am a petitioner in G.R. 147036-37.
Section 7. Functions and Responsibilities of the Committee.—The Leonardo-De Castro, J., No part due to prior participation
Coconut Trust Fund Committee shall have the following functions and in a related case.
responsibilities: Peralta, J., No Part due to prior participation in a related
(a) set the investment policy of the Trust Fund;
case.
(b)  establish priorities for assistance giving preference to small
coconut farmers and farmworkers which shall be reviewed Perlas-Bernabe, J., On Official Leave. 
periodically and revised as necessary in accordance with
changing conditions; Petition in G.R. No. 147036-37 granted, while petition in G.R.
(c) receive, process and approve project proposals for financing No. 147811 partly granted.
by the Trust Fund;
(d) decide on the use of the Trust Fund’s income or net Notes.—For a taxpayer’s suit to prosper, two requisites must
earnings including final action on applications for assistance, be met: (1) public funds derived from taxation are disbursed by a
grants and/or loans; political subdivision or instrumentality and in doing so, a law is
(e) avail of professional counsel and services by retaining an violated or some irregularity is committed and (2) the petitioner is
investment and financial manager, if desired; directly affected by the alleged act. In light of the foregoing, it is
(f) formulate the rules and regulations governing the apparent that contrary to the view of the RTC, a taxpayer need not
allocation, utilization and disbursement of the Fund; and
be a party to the contract to challenge its validity. (Mamba vs.
(g)  perform such other acts and things as may be necessary
proper or conducive to attain the purposes of the Fund.” Lara, 608 SCRA 149 [2009])76
(Emphasis ours)
76 SUPREME COURT REPORTS ANNOTATED
Section 4 of E.O. 312 does essentially the same thing. It vests
the management and disposition of the assistance fund generated Pambansang Koalisyon ng mga Samahang Magsasaka at Manggaga
from the sale of coco-levy fund-acquired assets into a Committee Niyugan (PKSMMN) vs. Executive Secretary
of five members. Thus, Section 4 of E.O. 312 provides— The Court cannot reverse the decision of the Sandiganbayan
“Section 4. Funding.—Assets acquired through the coconut levy on the basis alone of judicial pronouncements to the effect that the
funds or by entities financed by the coconut levy funds identified by the coconut levy funds were prima facie public funds, but without any
President for appropriate disposal or sale, shall be sold or disposed to
competent evidence linking the acquisition of the block of San
generate a maximum fund of ONE BILLION PESOS (P1,000,000,000.00)
which shall be managed by a Committee composed of a Chairman and Miguel Corporation (SMC) shares by Cojuangco, et al. to the
four (4) members to be appointed by the President whose term shall be coconut levy funds. (Republic vs. Sandiganbayan [First Division],
co-terminus with the Program. x x x” (Emphasis ours) 648 SCRA 47 [2011])

74
——o0o—— 
74 SUPREME COURT REPORTS ANNOTATED