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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.