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271059/271347/E-02472/E-04036 Representative Edcel C. Lagman, substituted by Albay First District Representative Krisel B. Lagman, et al. Vs. The Congress of the Philippines, et al./Aquilino “Koko” Pimentel III and Pantaleo “Bebot” Alvarez Vs. Lucas P. Bersamin, in his capacity as executive secretary, and Amenah F. Pangandaman, in her capacity as secretary of the Department of Budget and Management/Filipinos for Peace, Justice and Progress Movement, Inc. (FPJPM), represented by its president and chairperson, Joseph F. Cadsawan, and Gloria T. Puzon, chapter Officer Vs. The House of Representatives, et al./Edgar R. Erice and Leila De Lima Vs. The Senate of the Philippines, et al. — Official PDF
271059/271347/E-02472/E-04036 — Promulgated October 7, 2026 · 2026 · Supreme Court 2026 / Decision or signed resolution
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DIGITAL P. 93 / 121
Decision 93 G.R. Nos. 271059, 271347,E-02472. and
E-04036
It is a fundani.ental principle flowing from the
doctrine of separation of powers that Congress may not
delegate its legislative power to the two other branches of
the government, subject to the exception that local
governments may over local affairs participate in its
exercise. What cannot be delegated is the authority under
the Constitution to make laws and to alter and repeal them;
the test is the completeness of the statute in all its term and
provisions when it leaves the hands of the legislature. To
determine whether or not there is an undue delegation of
legislative power, the inquiry must be directed to the scope
and definiteness of the measure enacted. The legislature
does not abdicate its functions. when it describes what job
must be done, who is to do it, and what is the scope of his
authority. For a complex economy, that may indeed be the
only way in which the legislative process can go forward. A • •
distinction has rightfully been made between delegation of
power to make the laws which necessarily involves a
discretion as to what it shall be, which constitutionally may
not be done, and delegation of authority or: discretion as to
its execution to be exercised under and in pursuance of the
law, to which no valid objection can be made. The
Constitution is thus not to be regarded as denying the
legislature the necessary resources of flexibility and
practicability .385 (Citations omitted; emphasis supplied)
The special laws creating and governing the special fund must,
therefore, contain sufficient parameters for the utilization and disburseme;nt
of the amounts remitted to the corresponding Special Account in the General
Fund. Thus, Confederation of Coconut Farmers examined the relevant laws
and found that several provisions essentially allowed unbridled executive
discretion in disbursement of unutilized special funds. 386 The absence of
sufficient legislative parameters for the utilization of the special funds led this
Court to strike down several provisions of the assailed Executive issuance,
ruling that "[t]he absence oflegislative authority in the disbursement of public
funds cannot be remedied by executive fiat." 387
While most of the provisions are aligned with the avowed purpose
to benefit the coconut Industry, Section 3(e ), Article III provides that any
remaining balance may be used by UCPB to purchase shares and stocks in
corporations related to the coconut industry, viz:
SECTION 9. Investments For the Benefit of the
Coconut Farmers. - Notwithstanding any law to the contrary,
the bank acquired for the benefit of the coconut farmers
under PD 755 is hereby given full power and authority to
make investments in the form of shares of stock in
corporations organized for the purpose of engaging in the
establishment and the operation of industries and
commercial activities and other allied business undertakings
385 id. at 1055-1056.
3" Id. at 1058-1059.
387 Id at I 060.
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