Article XII of the Philippine Constitution

8/20/2019 Article XII of the Philippine Constitution

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Article XII

NATIONAL ECONOMY AND PATRIMONY

Section 1 The goals of the national econom are a more e!"ita#le

$istri#"tion of o%%ort"nities& income& an$ 'ealth( a s"staine$ increase inthe amo"nt of goo$s an$ ser)ices %ro$"ce$ # the nation for the #ene*t

of the %eo%le( an$ an e+%an$ing %ro$"cti)it as the ,e to raising the

!"alit of life for all& es%eciall the "n$er%ri)ilege$-

The State shall %romote in$"striali.ation an$ f"ll em%loment #ase$ on

so"n$ agric"lt"ral $e)elo%ment an$ agrarian reform& thro"gh in$"stries

that ma,e f"ll an$ e/cient "se of h"man an$ nat"ral reso"rces& an$ 'hich

are com%etiti)e in #oth $omestic an$ foreign mar,ets- 0o'e)er& the State

shall %rotect ili%ino enter%rises against "nfair foreign com%etition an$

tra$e %ractices-

In the %"rs"it of these goals& all sectors of the econom an$ all regions of

the co"ntr shall #e gi)en o%tim"m o%%ort"nit to $e)elo%- Pri)ate

enter%rises& incl"$ing cor%orations& coo%erati)es& an$ similar collecti)e

organi.ations& shall #e enco"rage$ to #roa$en the #ase of their

o'nershi%-

Section 1 by itself expresses the general economic policies of the

Constitution. It contains the three #asic $irections of the National Econom.

What are the 3 basic directions of the National Economy? What are the goals of our

National Economy? In order to anser the basic directions & it is containe$ in'hole of the Section 1 %aragra%h 1& 2 an$ 3. !he goals are contained in

"aragraph 1.

!he three #asic $irections of the National Econom are *rst# it sets the

dual goal of economic producti$ity and more e%uitable distribution of hat is

produced. Secon$# it see&s complementary beteen industriali'ation and

agricultural de$elopment. Thir$# it is protecti$e of all things (ilipino.

!he )rst paragraph# sets the three fol$ goal of the National Econom#

they are 4more e!"ita#le $istri#"tion of o%%ort"nities& income an$ 'ealth5 #

4for the #ene*t of the %eo%le& es%eciall the "n$er %ri)ilege$5 and 4to

#roa$en the #ase of o'nershi%5

Section 1 of social *ustice and human rights maybe similar to section 1 of

national economy and patrimony because section 1 it spea&s of e%uity states the

goals of national patrimony distribution of opportunities# income# and ealth. +

sustained increase in the amount of goods and ser$ices produced by the nation for



the bene)t of the people# expanded producti$ity as the &ey in raising the %uality of

life for all specially the under pri$ileged. Section 1 spea&s of e%uity# so the social

*ustice is in the section 1 of national patrimony also. +side from the economic goals

of the country it also in$ol$es e%uity and social *ustice.

Is the economic %olic state$ on the Constit"tion %rotectionist ornot6 Does it %rotect too m"ch Phili%%ine interest an$ the interest of theili%ino Ca%italist6 The en$ e7ect 'o"l$ #e there is little or non8foreign$irect in)estments6 If there had been problems in the +%uino +dministrationregarding lac& of (,I-s# some say it is because of the restricti$e pro$isions of theConstitution. !hat is hy the elmonte proposal to amend the constitution# theyant to liberali'e the e%uity participation of foreigners in in$estments in our countryby a simple approach# they ant to add the phrase 4as ma #e %ro)i$e$ for #la'5-

Congress can no legislate a higher or loer participation of (ilipino Citi'ensand higher participations for foreigners because of the phrase 4as ma #e

%ro)i$e$ for # la'5- !his ould be an enough authority and license of theCongress to enact a foreign ration of foreign in$estment in the country.

+rticle 1/ contains the national economic policy# &apag naririnig naten ung

constitutional amendments eto ung gusto nilang I0ammend ung constitutional

economic pro$isions. usto nilang dagdagan ng phrase ng as may be pro$ided for

by la.

"ro$isions in article 1/ say the speci)c pro$isions that limits of participation

of foreigners in in$estments in industries and it is stated that if the constitution says

that corporations of hich are oned by 2 percent by (ilipino citi'ens hanggang

dun nalang yon. 4ng mga gustong mag amend ng economic pro$ision of the

constitution nato $ery much li&e that on hat elmonte had proposed na hindi

natuloy# they ant to add the phrase 4as ma #e %ro)i$e$ for # la'5 so that

this $enture of this industry and in$estment shall be limited to (ilipino citi'ens or

corporations hich are oned by 2 percent by (ilipino citi'ens as may be pro$ided

for by la.

+rticle 1/ elaborates the Section 15 and / of ,eclaration of principles# that

these are the %illars of the economic %olic of the constit"tion. Section 19

commands the de$elopment of a self0reliant and independent national economy

hile Section 2: recogni'es the indispensable role of the pri$ate sector. Section 15

and / )nds substance in +rticle 1/.

Section 1 of article 12 e+%resses the general economic %olicies of the constit"tion. !his section also tells us that the economy en$isioned by theconstitution is dynamic. The $namism of the econom is en)isione$ by thisarticle is expressed in the ords 6s"staine$ increase in the amo"nt of goo$san$ ser)ices %ro$"ce$5 an$ 4e+%an$ing %ro$"cti)it5 because of this theeconomic en$isioned is dynamic. The e!"it goal is e+%resse$ in the ords 4a



more e!"ita#le $istri#"tion of o%%ort"nities& income& an$ 'ealth5 4for the#ene*t of the %eo%le es%eciall the "n$er8%ri)ilege$5 an$ to 4#roa$en the#ase of o'nershi%5-

E!"it is gi)en %rominence as the *rst o#;ecti)e of the NationalEconomic De)elo%ment. !he goal of reducing ine%uality is an explicit statement

of the emerging concept in social philosophy as contained in the social *ustice andhuman rights article of this constitution. !he preferential option of lo$e for the poorand the underpri$ileged# the reference to the national product being for the bene)tof the (ilipino people tries to guarantee the national de$elopment e7orts shall gi$epriority to the needs of the local population rather than foreign consumers.

In Section 1# it mentions that 6The economic %olic %romotes a #alance#et'een the in$"striali.ation an$ agric"lt"ral $e)elo%ment5. ernas saysthat industriali'ation can be attained by using the released loc&ed up capitalthrough agrarian reform. ernas seems to be ban&ing too much on agrarian reformhich is also pro$ided in the constitution- In agrarian reform& the lan$ an$estates shall #e ta,en # the go)ernment for $istri#"tion- The %ament to

#e ma$e to the o'ners 'ill s%"r in$"striali.ation accor$ing to <ernas.

8uestion# hat is the suggested formula of the constitution in arri$ingindustriali'ation? !he suggested formula is to attain industriali'ation through thereleasing loc&ed up capital through agrarian reform. 9o is this done? :and isdistributed to the farmers and landless ith *ust compensation. !he *ustcompensation paid to the oner of the land. !he constitution hopes shall be usedfor industriali'ation purposes.

!hat is hy in the pro$ision; it encourages the state to gi$e incenti$es to landoners to recei$e *ust compensation for the lands that are sub*ected for reform.

!he policy of protecting all things (ilipino intent is to protect both the (ilipinoconsumer and the (ilipino "roducer. !he (ilipino must be protected against a <ood of lo %uality products. !he (ilipino producer in turn must be protected from unfairforeign competition and trade practices.

!he goals of the economy are pursuit not *ust for the people and sectors of the economy but also among geographic regions of the country.Section 2 All lan$s of the %"#lic $omain& 'aters& minerals& coal&

%etrole"m& an$ other mineral oils& all forces of %otential energ& *sheries&

forests or tim#er& 'il$life& =ora an$ fa"na& an$ other nat"ral reso"rces are

o'ne$ # the State- >ith the e+ce%tion of agric"lt"ral lan$s& all other

nat"ral reso"rces shall not #e alienate$- The e+%loration& $e)elo%ment&an$ "tili.ation of nat"ral reso"rces shall #e "n$er the f"ll control an$

s"%er)ision of the State- The State ma $irectl "n$erta,e s"ch acti)ities&

or it ma enter into co8%ro$"ction& ;oint )ent"re& or %ro$"ction8sharing

agreements 'ith ili%ino citi.ens& or cor%orations or associations at least

si+t per centum of 'hose ca%ital is o'ne$ # s"ch citi.ens- S"ch

agreements ma #e for a %erio$ not e+cee$ing t'ent8*)e ears&



rene'a#le for not more than t'ent8*)e ears& an$ "n$er s"ch terms an$

con$itions as ma #e %ro)i$e$ # la'- In cases of 'ater rights for

irrigation& 'ater s"%%l *sheries& or in$"strial "ses other than the

$e)elo%ment of 'ater %o'er& #ene*cial "se ma #e the meas"re an$ limit

of the grant-

Section / is based on the $octrine of $omini"m 'hich is also the #asis

of the %rinci%le of ;"ra regalia also &non as the regalia doctrine. !his doctrine

is &non to mean that e$erything belongs to the state. +ll natural resources

enumerated in section / are oned by the state. !his is found on the concept of

$omini"m; it is the foundation of the feudal and embraces the theory of ;"ra

regalia hich means onership is $ested in the state.

We no introduce the concept of $omini"m an$ im%eri"m. Domini"m is

the ca%acit of the state to o'n or ac!"ire %ro%ert. It is the concept of

onership by the state# property holdings by the state. !his is the %ro%rietar

as%ect of the state- Im%eri"m& is the go)ernmental %art of the state& is

the go)ernment a"thorit %ossesse$ # the state e+%resse$ in the

conce%t of so)ereignt. Imperium is for go$ernance and dominium is for

onership of property.

What are ;"ra regalia? What is the constitutional basis of this doctrine? !he

anser is Section / article 1/.

Onl agric"lt"ral lan$s shall #e alienate$- Second paragraph# the

exception of agricultural lands and all other natural resources shall not be alienated#

except agricultural lands. Agric"lt"ral lan$s ma #e alienate$ if it is $eclare$as aliena#le an$ $is%osa#le. !here is a category and it is the state that

categori'es hether or not the agricultural lands are alienable and disposable.

Section / also pro$ides that the exploration# de$elopment and utili'ation of

natural resources shall be under the full control and super$ision of the State. In so

doing# the state may enter into co0production# *oint $enture or co0production sharing

agreement ith natural (ilipino citi'ens or corporations and associations at least 2

percent of hich capital is oned by a (ilipino Citi'ens. !his is an example of the

elmonte amendment. !he agreement must be not exceeding /= years and is

reneable for another /= years.

The State shall %rotect the nation?s marine 'ealth in its archi%elagic

'aters& territorial sea& an$ e+cl"si)e economic .one& an$ reser)e its "se

an$ en;oment e+cl"si)el to ili%ino citi.ens-





sanction# ceases to be public land and becomes pri$ate property. Such open#

continuous# exclusi$e and notorious occupation of the disputed properties for more

than 3 years must# hoe$er# be conclusively established. !his is the San Mig"el

Cor%oration case.

In computing the 3 years# a period for ac%uisiti$e prescription under SectionB5 of the "ublic :and :a# the period before a forest land is con$erted into as

alienable and disposable land is not included.

Example !he property is still a public property and not has been declared as

alienable and disposable land. Inupuan mo na# for / years then it becomes

alienable and disposable# then you continued to stay in the land for another 1

years. +re you no entitled to the onership of the land by prescription? NA#

because the 2: ear %erio$ of s"ch %ossession of the %ro%ert #efore the

%ro%ert #ecame aliena#le an$ $is%osa#le is not incl"$e$ in com%"ting

the 3: ear %erio$. !he 3 year period starts# must be hile the property is

already as alienable and disposable property. !he epongde "roperty in Dapan# is

that a public ,ominium? It is outside of the commerce of men; it cannot be

alienated or sold.

The Congress ma& # la'& allo' small8scale "tili.ation of nat"ral

reso"rces # ili%ino citi.ens& as 'ell as coo%erati)e *sh farming& 'ith

%riorit to s"#sistence *shermen an$ *sh 'or,ers in ri)ers& la,es& #as&

an$ lagoons-

The Presi$ent ma enter into agreements 'ith foreign8o'ne$ cor%orations

in)ol)ing either technical or *nancial assistance for large8scalee+%loration& $e)elo%ment& an$ "tili.ation of minerals& %etrole"m& an$

other mineral oils accor$ing to the general terms an$ con$itions %ro)i$e$

# la'& #ase$ on real contri#"tions to the economic gro'th an$ general

'elfare of the co"ntr- In s"ch agreements& the State shall %romote the

$e)elo%ment an$ "se of local scienti*c an$ technical reso"rces-

To agreements in)ol)ing either technical or *nancial assistance# this

is the agreement entered into by the "resident either technical or )nancial

assistance are in fact ser$ice contracts but such ne ser$ice contracts beteen

foreign corporations acting as contractors and on the other hand go$ernment acting

as the principal or oner of the or&s hereby the foreign contractor ill pro$ide

the capital the technology and technical &no0ho and managerial expertise in the

creation and operation of the large scale mining and extracti$e enterprise and

go$ernment through its agencies# the ,EN# the ># acti$ely exercises full control

of super$ision o$er the entire enterprise. It is saing that the agenc "se$ #

the @o)ernment 'o"l$ #e the DENR in s"%er)ising these technical ser)ice

contracts.



The case of La <"gal <?laan Tri#al Association )s DENR& 'hich 'as

cite$ # <ernas is saing that those contracts entere$ into # the

Presi$ent are in e7ect are ser)ice contracts- The %arties of 'hich 'o"l$ #e

the foreigners an$ the go)ernment thr" the DENR an$ the M@<-

The Presi$ent shall notif the Congress of e)er contract entere$ into inaccor$ance 'ith this %ro)ision& 'ithin thirt $as from its e+ec"tion-

Who are %uali)ed to ta&e part of the exploration# de$elopment and utili'ation

of inalienable resources? Anly (ilipino citi'ens and Companies of hich 2 percent

of it is oned by a (ilipino Citi'en may engage in the de$elopment and utili'ation of

these natural resources- Inaliena#le nat"ral reso"rces are the %etrole"m& oil&

coals etc--

+ problem may arise in determining the compliance ith the 2 percent limit

onership of a (ilipino in a (oreign Corporation that is engaged in an exploration#

de$elopment and utili'ation of inalienable natural resources. !he constitution says

that# the Corporation# 2 percent of hich must oned by (ilipino Citi'en. If that

Corporation ho applied for the exploration# de$elopment and utili'ation of

inalienable natural resources# *ust $erify if the 2 percent of the names of the

oners are (ilipino then they are %uali)ed.

!o ma&e sure this is complied# e ha$e hat e call Control Test. !his is the

pre$ailing mode in determining hether or not a corporation is a (ilipino

Corporation ithin the ambit of Section /# +rticle 1/ of the 15F "hilippine

Constitution# entitled to underta&e the exploration# de$elopment and utili'ation of

the natural resources of the "hilippines. When in the mind of the Court# there isdoubt# based on the attendant facts and circumstances of the case# in the 20B

(ilipino e%uity onership in the corporation# and then it may apply the @ran$father

R"le.

The @ran$father R"le is merel to follo' the lineage of the o'ners # if

they ha$e a (ilipino Citi'enship. !hese rule implements the intent of the

(ilipini'ation pro$isions of the Constitution. !o reiterate# Sec. /# +rt. GII of the

Constitution reser$es the exploration# de$elopment# and utili'ation of natural

resources to (ilipino citi'ens and cor%orations or associations at least si+t

%er cent"m of 'hose ca%ital is o'ne$ # s"ch citi.ens- Consistent 'ith

this o#;ecti)e& the @ran$father R"le 'as originall concei)e$ to loo, into

the citi.enshi% of the in$i)i$"als 'ho "ltimatel o'n an$ control the

shares of stoc, of a cor%oration for %"r%oses of $etermining com%liance

'ith the constit"tional re!"irement of ili%ino o'nershi%. It cannot#

therefore# be denied that the framers of the Constitution ha$e not foreclosed the

randfather ule as a tool in $erifying the nationality of corporations for purposes of

ascertaining their right to participate in nationali'ed or partly nationali'ed acti$ities.



!hus# to arri$e at the actual (ilipino onership and control in a corporation# both the

direct and indirect shareholdings in the corporation are determined. !his is the case

of NARRA NICBEL MININ@ AND DEELOPMENT CORP-& TESORO MININ@ AND

DEELOPMENT& INC-& an$ McART0R MININ@& INC-& "etitioners# $s. REDMONT

CONSOLIDATED MINES CORP-& espondent. @-R- No- 19F:& Gan"ar 2F&

2:1

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+s to >arine ealth# (ilipino Citi'ens are %uali)ed also for natural resources

and ri$ers# lagoons la&es. +ll those cooperati$es are %uali)ed.

9o may an inalienable resources may they be explored# de$eloped or

utili'ed? !he anser for that %uestion is by direct underta&ing of acti$ities by the

State or 4co8%ro$"ction& ;oint )ent"re& or %ro$"ction sharing agreements5

ith the State and all 4"n$er the f"ll control an$ s"%er)ision of the State5 .

There are 2 le)els of control that m"st #e consi$ere$.

The *rst le)el is the control o$er the corporation hich may engage ith

the State in 4co8%ro$"ction& ;oint )ent"re& or %ro$"ction sharing

agreements5. If indi$iduals they must be (ilipino Citi'ens; if corporations#

onership must be 2percent (ilipino. The secon$ le)el is control of the 4co8

%ro$"ction& ;oint )ent"re& or %ro$"ction sharing agreements5 o%eration .

!his must be under the 4f"ll control an$ S"%er)ision of the State5 e$en if the

operation is by a (ilipino Citi'en.

What are the other limitations pro$ided in Section /? irst# agreements of

the exploitation of the natural resources can ha)e a life of onl 2 ears&

rene'a#le for another 2 ears. Secon$# the "se an$ en;oment of marine

'ealth in archi%elagic 'aters& territorial sea an$ e+cl"si)e economic .one

is reser$ed for the exclusi$e use and en*oyment of (ilipino Citi'ens meaning (ilipino

natural persons. Thir$# (ilipino citi'en may ha$e small scale utili'ation of natural

resources# as ell as cooperati$e )sh farming in ri$ers# la&es and lagoons. o"rth#

ser$ice contracts to large scale utili'ations of minerals# petroleum and oils.

In S"mmit )s- CA& @-R- No- 12K293 Gan"ar 31& 2::& aliens are not

dis%uali)ed from oning e$ery &ind of real property. !hey are not entirely

dis%uali)ed in oning real property. !he concept of a real property is not merely a

land; a building that is attached to the land is also real property therefore the

constitutional prohibition applies only the onership of a land# it does not extend to

all immo$able or real property as de)ned in +rticle B1= of the Ci$il Code. !hese are

considered immo$able properties that are attached to the land# including buildings

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and constructions of all &inds attached to the soil. Aliens are onl $is!"ali*e$ to

o'n lan$s #"t not all real %ro%ert.

eclaimed# foreshore submerged lands# Somehere in oxas oule$ard in >anila

ay# that part is foreshore submerged lands. When they ere reclaimed# they ere

lands of the public domain. efore S> and other buildings ere built# there as aprocess to follo. !he oner of that property hen it as a part of a public domain

then as "ublic Estates +uthority# then as the agency of the go$ernment that

handles these lands. !hen they ent to congress# and congress declared it as

alienable and disposable lands before selling the said properties.

!he reclaimed foreshore and submerged lands are lands of the public domain

unless they are already classi)ed as alienable they may not be disposed of. (or

reclaimed land to be registered as pri$ate property# / things must be re%uired.

Since reclaimed land is part of the inalienable public lands# there must be proof that

the land has been classi)ed as alienable by congress. !o the person see&ing

registration must sho proof of ha$ing ac%uired the property for instance by

prescription# but for the foreshore lands# by ac%uired by sale from the go$ernment.

Inaliena#le lan$ cannot #e ac!"ire$ # %rescri%tion& #eca"se onl

aliena#le lan$s 'hich are %art of the %"#lic $omain s can #e ac!"ire$ #

%rescri%tion-

eclaimed lands of the public domain# if sold or transferred to a public

corporation Hmunicipality hich has a right to hold properties# foe a monetary

consideration becomes a %atrimonial %ro%ert. It 'ill #e a %ro%ert of the

m"nici%alit& an$ ma#e sol$ to %ri)ate %arties 'hether to ili%ino

Citi.ens or !"ali*e$ cor%orations. eclaimed lands of the public domain maybetransferred to public corporations.

Section 3 Lan$s of the %"#lic $omain are classi*e$ into agric"lt"ral& forest

or tim#er& mineral lan$s an$ national %ar,s- Agric"lt"ral lan$s of the

%"#lic $omain ma #e f"rther classi*e$ # la' accor$ing to the "ses to

'hich the ma #e $e)ote$- Aliena#le lan$s of the %"#lic $omain shall #e

limite$ to agric"lt"ral lan$s- Pri)ate cor%orations or associations ma not

hol$ s"ch aliena#le lan$s of the %"#lic $omain e+ce%t # lease& for a

%erio$ not e+cee$ing t'ent8*)e ears& rene'a#le for not more than

t'ent8*)e ears& an$ not to e+cee$ one tho"san$ hectares in area-

Citi.ens of the Phili%%ines ma lease not more than *)e h"n$re$ hectares&

or ac!"ire not more than t'el)e hectares thereof& # %"rchase&

homestea$& or grant-

In section 3# you ill encounter the ord 4hol$5 and 6ac%uire@. 0ol$ i$ onl

for leaserent an$ not conce%t of o'nershi%. +c%uire on the other hand is for

the pri$ate citi'ens for onership.



Section 3 therefor# deals ith the classi)cation of lands in the public domain

to agricultural forest timber# mineral and national par&. +gricultural lands may be

further classi)ed by la according to the uses to hich may be de$oted.

Classi)cation is descripti$e of the legal nature of the land and not hat it loo&s li&e.

In untun bridge# may mga bundo& sa >adduarulug. Wala ng &ahoy# pero that

doesn-t mean agricultural na siya. (orest land parin siya. !he fact that the forestlands ha$e been deluded that doesn-t mean it has sei'ed as a forest land# Director

of Lan$s )s- A!"ino.

!he rights o$er the land are indi$isible and that the land itself cannot be half

agricultural and half mineral. !he classi)cation must be categorical; the land must

be either completely mineral or completely agricultural. Re%"#lic of the

Phili%%ines )s- CA-

Dis%osition of lan$s of the P"#lic Domain& the )rst rule is that only

agricultural lands of the public domain may be alienated. Second# only public

corporations and %uali)ed indi$iduals may ac%uire alienable lands of the public

domain# because it may only hold alienable lands of the public domain only by

lease. While pri$ate corporations cannot ac%uire lands of the public domains# they

can ac%uire pri$ate lands.

Ta,ing into acco"nt the re!"irements of conser)ation& ecolog& an$

$e)elo%ment& an$ s"#;ect to the re!"irements of agrarian reform& the

Congress shall $etermine& # la'& the si.e of lan$s of the %"#lic $omain

'hich ma #e ac!"ire$& $e)elo%e$& hel$& or lease$ an$ the con$itions

therefor-

MERALCO )s- G"$ge <artolome& >E+:CA bought / lots from a pri$ate

(ilipino indi$idual. +pparently the land bought already becomes pri$ate property

because it as already bought by >E+:CA. !he pri$ate corporation can on

alienable lands of the public domain only by buying it from a pri$ate person.

>E+:CA is as&ing for a con)rmation of its title of the to lots. !he court did not

perform the con)rmation because they ha$e no proof to sho that the said property

as alienated by the go$ernment and because there is no title from that pri$ate

citi'en. !he concept is that a property does not become pri$ate unless there is a

title from the pri$ate indi$idual.

Director of Lan$s )s Interme$iate A%%ellate Co"rt# it has abandoned

the >E+:CA case# the rule no is that alienable land held by a possessor#

personally or through his predecessors in0interest# openly# continuously and

exclusi$ely for the 3 years is con$erted to pri$ate property by the mere lapse or

completion of said period. "ero it goes ithout saying that these properties must

ha$e been declared alienable and disposable; otherise it is still a part of the lands

of the public domains. We ill assume that the property is already declared as



alienable and disposable. In this case# unli&e >E+:CA it does not need a title in

fa$or of the pri$ate person; it is enough that it is ac%uired by prescription for 3

years and has its title con)rmed by the court.

Ance title of alienable public land passes thru a pri$ate indi$idual it is

segregated from lands from the public domain and becomes pri$ate land sub*ect tothe rights of pri$ate onership.

Section K The Congress shall& as soon as %ossi#le& $etermine& # la'& the

s%eci*c limits of forest lan$s an$ national %ar,s& mar,ing clearl their

#o"n$aries on the gro"n$- Thereafter& s"ch forest lan$s an$ national

%ar,s shall #e conser)e$ an$ ma not #e increase$ nor $iminishe$& e+ce%t

# la'- The Congress shall %ro)i$e for s"ch %erio$ as it ma $etermine

meas"res to %rohi#it logging in en$angere$ forests an$ 'atershe$ areas-

Section The State& s"#;ect to the %ro)isions of this Constit"tion an$

national $e)elo%ment %olicies an$ %rograms& shall %rotect the rights of

in$igeno"s c"lt"ral comm"nities to their ancestral lan$s to ens"re their

economic& social& an$ c"lt"ral 'ell8#eing-

The Congress ma %ro)i$e for the a%%lica#ilit of c"stomar la's

go)erning %ro%ert rights or relations in $etermining the o'nershi% an$

e+tent of ancestral $omain-

!he enabling la to implement Section = is the .+. 3F1 of the Indigenous

"eople-s ights# as passed in the 1th Congress 155=0155# it as not passed on

the 5th

Congress because of the %uestion of the concept of ancestral $omain an$ancestral lan$s-

!he ancestral $omain as de)ned refers to all areas generally belonging to

ICCsJI"s comprising lands# inland aters# coastal areas# and natural resources

therein# held under a claim of onership# occupied or possessed by ICCsJI"s

themsel$es or through their ancestor. !he ancestral lan$s# refers to lands

occupied and utili'ed by indi$iduals# families and clans ho are members of the

ICCsJI"s since time immemorial# by themsel$es or through their predecessors in0

interest.

In Cr". )s& Secretar# "etitioners assail the constitutionality of the folloing

pro$isions of the I"+ and its Implementing ules on the ground that they amount

to an unlaful depri$ation of the States onership o$er lands of the public domain

as ell as minerals and other natural resources therein# in $iolation of the regalian

doctrine embodied in Section /# +rticle GII of the Constitution. !he SC upheld the

$alidity of the I"+ :a# on hat grounds? !he ancestral domains and the ancestral

lands are not parts of the lands of the public domains. !hey are pri$ate lands and



they belong to the indigenous people. !he I"+ :a is an exception to the *ura

regalia doctrine.

Section The "se of %ro%ert #ears a social f"nction& an$ all economic

agents shall contri#"te to the common goo$- In$i)i$"als an$ %ri)ate

gro"%s& incl"$ing cor%orations& coo%erati)es& an$ similar collecti)eorgani.ations& shall ha)e the right to o'n& esta#lish& an$ o%erate

economic enter%rises& s"#;ect to the $"t of the State to %romote

$istri#"ti)e ;"stice an$ to inter)ene 'hen the common goo$ so $eman$s-

Section 2 is saying that the state can come in and re*ects free enterprise and

laisse' faire. 9o ill you rationali'e this pro$ision to the free enterprise that

pre$ails in our economy? It is as if saying that the state can inter$ene in the

management of a free enterprise.

Section Sa)e in cases of here$itar s"ccession& no %ri)ate lan$s shall #e

transferre$ or con)ee$ e+ce%t to in$i)i$"als& cor%orations& or

associations !"ali*e$ to ac!"ire or hol$ lan$s of the %"#lic $omain-

If the land is from a hereditary succession# it ill not be a part of lands of

public domain. "ri$ate Corporation may no be %uali)ed to on pri$ate lands.

Section F is telling ho are %uali)ed to ac%uire and buy pri$ate property are (ilipino

Citi'ens# because under Section 3 (ilipino Citi'ens may ac%uire lands up to 1/

hectares by prescription grant or purchase. !he right to on a pri$ate land is no

dependent on the %uali)cations to hold or ac%uire lands from a public domain.

"

"ri$ate lands mean any land of pri$ate onership. !his includes both lands

oned by pri$ate indi$iduals and lands hich are patrimonial property of the State

or of municipal corporations.

+n old case Bri)en,o )s- Register of Dee$s# absolutely foreigners cannot

on pri$ate lands.

Cheeseman )s Interme$iate Co"rt of A%%eals# the prohibition of aliens

not %uali)ed to on pri$ate lands applies also to a regime of a con*ugal partnership.

(oreigner ith a (ilipina ife# they on pri$ate lands and the signature of the

foreign husband is not needed in order to sell the pri$ate land. !he foreigner spouse

does not ha$e the right of a con*ugal partner to consent to or not to consent to a

disposition of a land.



Re%"#lic )s- Co"rt of A%%eals& the time to determine hether the person

ac%uiring land is %uali)ed is the time hen the right to on is ac%uired and not the

time to register. + speci)c example of this is a (ilipino ho bought a land and he

registered it hen he as already a foreigner. !here is la that gi$es a former

(ilipino Citi'en to ac%uire land.

In Ramire. )s- $a $e Ramire.# aliens may ac%uire in cases of hereditary

succession. 9oe$er it as clari)ed in this case. !he court ruled that the

constit"tion %ro)ision $oes not e+ten$ to testamentar s"ccession it

a%%lies onl to intestate s"ccession.

0alili )s CA# hen an alien ac%uires land by hereditary succession such alien

cannot renounce the right to inherit in fa$or of one ho is not %uali)ed. What is

prohibited by the Constitution is the $esting of !itle of :ands in fa$or of aliens.

9ence the prohibition in Section F# does not extend to lease of pri$ate lands.

Anership of pri$ate lands ang pinag uusapan sa section F. 4sufractuary right o$er

land may be con$eyed to an alien# this means right to use.

Can a (ilipino corporation ac%uire a pri$ate land? !he anser is KES. Since

section F ma&es capacity to ac%uire pri$ate land dependent to the capacity to

ac%uire or hold lands of the public domain.

Section F Not'ithstan$ing the %ro)isions of Section of this Article& a

nat"ral8#orn citi.en of the Phili%%ines 'ho has lost his Phili%%ine

citi.enshi% ma #e a transferee of %ri)ate lan$s& s"#;ect to limitations

%ro)i$e$ # la'-

Example of this is .+. 1F5

Section 9- The Congress ma esta#lish an in$e%en$ent economic an$

%lanning agenc hea$e$ # the Presi$ent& 'hich shall& after cons"ltations

'ith the a%%ro%riate %"#lic agencies& )ario"s %ri)ate sectors& an$ local

go)ernment "nits& recommen$ to Congress& an$ im%lement contin"ing

integrate$ an$ coor$inate$ %rograms an$ %olicies for national

$e)elo%ment-

ntil the Congress %ro)i$es other'ise& the National Economic an$

De)elo%ment A"thorit shall f"nction as the in$e%en$ent %lanning agenc

of the go)ernment-

Section 1: The Congress shall& "%on recommen$ation of the economic an$

%lanning agenc& 'hen the national interest $ictates& reser)e to citi.ens of

the Phili%%ines or to cor%orations or associations at least si+t per

centum of 'hose ca%ital is o'ne$ # s"ch citi.ens& or s"ch higher



%ercentage as Congress ma %rescri#e& certain areas of in)estments- The

Congress shall enact meas"res that 'ill enco"rage the formation an$

o%eration of enter%rises 'hose ca%ital is 'holl o'ne$ # ili%inos-

What is the (ilipini'ation of certain areas of in$estment? Section 1 pro$ides

the anser# because it mandates congress to reser$e to citi'ens of the "hilippinesor to corporations or associations at least sixty per centum of hose capital is

oned by such citi'ens# or such higher percentage as Congress may prescribe

certain areas of in$estments.

In the grant of rights& %ri)ileges& an$ concessions co)ering the national

econom an$ %atrimon& the State shall gi)e %reference to !"ali*e$

ili%inos-

When the shares of SIS in >anila "rince 9otel as being sold# a >alaysian

in$estor bided and on but there as another bidder a (ilipino Citi'en named ,on

Dose Kap. ut the shares ere gi$en to ,on Dose Kap because of the / nd paragraph of

Section 1. !he court said that the /nd paragraph as a mandatory positi$e

command hich is complete in itself.

Tana$a )s Angara& this is about eneral +greement on !ari7s and !rade.

!he +" as challenged as unconstitutional treaty for placing foreign in$estors on

the same le$el as (ilipinos. +" is agreement among nations hereby after the

lapse of a number of years there ill be free <oing of goods in these countries.

>aaala na ung tari7 protection of goods that are produced in the "hilippines. It

gi$es undue ad$antage to (ilipinos. !he court said the /nd paragraph of Section 1 is

enforceable only in regard to the grants of rights# pri$ileges and concessionsco$ering national economy and patrimony and not to e$ery aspect of trade and

commerce. It refers to exceptions rather than the rule.

The State shall reg"late an$ e+ercise a"thorit o)er foreign in)estments

'ithin its national ;"ris$iction an$ in accor$ance 'ith its national goals

an$ %riorities-

Section 11 No franchise& certi*cate& or an other form of a"thori.ation for

the o%eration of a %"#lic "tilit shall #e grante$ e+ce%t to citi.ens of the

Phili%%ines or to cor%orations or associations organi.e$ "n$er the la's of

the Phili%%ines& at least si+t per centum of 'hose ca%ital is o'ne$ #

s"ch citi.ens( nor shall s"ch franchise& certi*cate& or a"thori.ation #e

e+cl"si)e in character or for a longer %erio$ than *ft ears- Neither shall

an s"ch franchise or right #e grante$ e+ce%t "n$er the con$ition that it

shall #e s"#;ect to amen$ment& alteration& or re%eal # the Congress 'hen

the common goo$ so re!"ires- The State shall enco"rage e!"it

%artici%ation in %"#lic "tilities # the general %"#lic- The %artici%ation of





Section 13 The State shall %"rs"e a tra$e %olic that ser)es the general

'elfare an$ "tili.es all forms an$ arrangements of e+change on the #asis

of e!"alit an$ reci%rocit-

Section 1K The s"staine$ $e)elo%ment of a reser)oir of national talents

consisting of ili%ino scientists& entre%rene"rs& %rofessionals& managers&high8le)el technical man%o'er an$ s,ille$ 'or,ers an$ craftsmen in all

*el$s shall #e %romote$ # the State- The State shall enco"rage

a%%ro%riate technolog an$ reg"late its transfer for the national #ene*t-

The %ractice of all %rofessions in the Phili%%ines shall #e limite$ to ili%ino

citi.ens& sa)e in cases %rescri#e$ # la'-

Section 1 The Congress shall create an agenc to %romote the )ia#ilit

an$ gro'th of coo%erati)es as instr"ments for social ;"stice an$ economic

$e)elo%ment-

Section 1 The Congress shall not& e+ce%t # general la'& %ro)i$e for the

formation& organi.ation& or reg"lation of %ri)ate cor%orations-

@o)ernment8o'ne$ or controlle$ cor%orations ma #e create$ or

esta#lishe$ # s%ecial charters in the interest of the common goo$ an$

s"#;ect to the test of economic )ia#ilit-

Section 12 is a prohibition in Congress to pro$ide for the organi'ation or

formation or regulation of pri$ate corporations. !he purpose is to insulate Congress

from special pri$ate interest.

Section 1 In times of national emergenc& 'hen the %"#lic interest so

re!"ires& the State ma& $"ring the emergenc an$ "n$er reasona#le

terms %rescri#e$ # it& tem%oraril ta,e o)er or $irect the o%eration of

an %ri)atel8o'ne$ %"#lic "tilit or #"siness a7ecte$ 'ith %"#lic

interest-

!he president is the only one ho can on the pri$ately0oned public utility

or business a7ected ith public interest because of the ord State. Is this *uris

prudence? It is not. +s held in the case of Da)i$ )s- Arroo. andy ,a$id ho

ons "hilippine ,aily In%uirer during /2 hile celebrating at E,S+ in (ebruray#

this as the time hen >+ as almost ousted as "resident of the "hilippines. +nd

a Coup as being planned. >+ issued a "residential "roclamation# declaring a

state of emergency. ut the SC said that there is no such thing as state of

emergency. <ernas sai$ the State means it 'as the Presi$ent # ernas as

rong. SC sai$ the State means that it is the Congress that 'ill $eclare the

State of Emergenc.



It is the Congress ho ill pro$ide for the ta&eo$er of the utilities.

National State of emergency means threat from external aggression#

calamities or natural disasters.

9o long is the ta&eo$er that as mentioned in Section 1F? Is that pro$idedin the la that authori'es the ta&eo$er?

Section 1F The State ma& in the interest of national 'elfare or $efense&

esta#lish an$ o%erate )ital in$"stries an$& "%on %ament of ;"st

com%ensation& transfer to %"#lic o'nershi% "tilities an$ other %ri)ate

enter%rises to #e o%erate$ # the @o)ernment-

:i&eise section 1 must be similarly read li&e section 1F# meaning by

enactment of Congress.

Section 19 The State shall reg"late or %rohi#it mono%olies 'hen the %"#lic

interest so re!"ires- No com#inations in restraint of tra$e or "nfair

com%etition shall #e allo'e$-

Kou ill note# comparing the )rst sentence dealing ith monopolies may be

alloed because it says the State shall regulate or prohibit monopolies hen the

public interest so re%uires# if it is regulatory then it is alloed. ut for the /nd

sentence# absolutely it is not alloed.

15F Constitution spea&s simply of >onopolies# in 15F3 Constitution spea&s

of the "ri$ate >onopolies# e$en public monopolies are go$erned and regulated bySection 15.

The %"r%ose of Section 19 enco"rages com%etition& to ass"re a

com%etiti)e econom #ase$ "%on the #elief that thro"gh com%etition

%ro$"cers 'ill stri)e to satisf cons"mer 'ants at the lo'est %rice

%ossi#le& in here there is reliance upon the operation of the mar&et system to

decide hat shall be produced# ho resources shall be allocated in the production

process and to hom $arious products ill be distributed. !he mar&et system relies

on the consumer to decide hat and ho much shall be produced# and on

competition# among producers ho ill manufacture it.

When there is a combination in restraint of trade as unfair competition are

prohibited by the Constitution? When there is only one seller or producer of product

or ser$ice of hich there are no substitutes. It Is conspiracy to dominate trade and

commerce in a commodity to such an extent that they are able # as a group# to

exclude actual or potential competitors from the )eld# accompanied ith the

intention and purpose to exercise such poer.



!here is no a :a *ust recently passed by the Congress. !he "hilippine

Competition +ct# it is an +nti0!rust "olicy# "rohibiting anti0competiti$e arrangements

beteen and among competitors and beha$iors as ell as other unfair business

practices to protect consumer rights.

Section 2: The Congress shall esta#lish an in$e%en$ent central monetara"thorit& the mem#ers of 'hose go)erning #oar$ m"st #e nat"ral8#orn

ili%ino citi.ens& of ,no'n %ro#it& integrit& an$ %atriotism& the ma;orit

of 'hom shall come from the %ri)ate sector- The shall also #e s"#;ect to

s"ch other !"ali*cations an$ $isa#ilities as ma #e %rescri#e$ # la'- The

a"thorit shall %ro)i$e %olic $irection in the areas of mone& #an,ing&

an$ cre$it- It shall ha)e s"%er)ision o)er the o%erations of #an,s an$

e+ercise s"ch reg"lator %o'ers as ma #e %ro)i$e$ # la' o)er the

o%erations of *nance com%anies an$ other instit"tions %erforming similar

f"nctions-

ntil the Congress other'ise %ro)i$es& the Central <an, of the Phili%%ines

o%erating "n$er e+isting la's& shall f"nction as the central monetar

a"thorit-

Section 21 oreign loans ma onl #e inc"rre$ in accor$ance 'ith la' an$

the reg"lation of the monetar a"thorit- Information on foreign loans

o#taine$ or g"arantee$ # the @o)ernment shall #e ma$e a)aila#le to the

%"#lic-

Section 22 Acts 'hich circ"m)ent or negate an of the %ro)isions of this

Article shall #e consi$ere$ inimical to the national interest an$ s"#;ect tocriminal an$ ci)il sanctions& as ma #e %ro)i$e$ # la'-

Documents

Article XII of the Philippine Constitution