Araullo V Aquino
Araullo V Aquino
Araullo V Aquino
Constitutional law; The DAP is not an Savings, defined. The definition of savings
appropriation measure and does not under the 2011, 2012 and 2013 GAAs refer to
contravene Section 29(1), Article VI. The portions or balances of any
President, in keeping with his duty to programmed appropriation in this Act free
faithfully execute the laws, had sufficient from any obligation or encumbrance
discretion during the execution of the which are: (i) still available after the
budget to adapt the budget to changes in the completion or final discontinuance
countrys economic situation. He could adopt or abandonment of the work, activity or
a plan like the DAP for the purpose. He could purpose for which the appropriation is
pool the savings and identify the PAPs to be authorized; (ii) from appropriations balances
funded under the DAP. The pooling of arising from unpaid compensation and related
savings pursuant to the DAP, and the costs pertaining to vacant positions and
leaves of absence without pay; and (iii) allowed the President to substitute his own will
from appropriations balances realized from for that of Congress. He was still required to
the implementation of measures resulting in remain faithful to the provisions of the GAAs,
improved systems and efficiencies and given that his power to spend pursuant to the
thus enabled agencies to meet and deliver the GAAs was but a delegation to him from
required or planned targets. Congress. Verily, the power to spend the
public wealth resided in Congress, not in the
The Court agreed with petitioners that Executive. Moreover, leaving the spending
respondents were forcing the generation power of the Executive unrestricted would
of savings in order to have a larger fund threaten to undo the principle of separation of
available for discretionary spending. powers.
Respondents, by withdrawing unobligated
allotments in the middle of the fiscal year, in Cross-border transfers or augmentations are
effect deprived funding for PAPs with existing prohibited. By providing that the President, the
appropriations under the GAAs. President of the Senate, the Speaker of the
House of Representatives, the Chief Justice of
The mandate of Section 28, Chapter IV, Book the Supreme Court, and the Heads of the
VI of the Administrative Code is to revert to Constitutional Commissions may be
the General Fund balances of appropriations authorized to augment any item in the GAA
that remained unexpended at the end of the for their respective offices, Section 25(5) has
fiscal year. The Executive could not delineated borders between their offices, such
circumvent this provision by that funds appropriated for one office are
declaring unreleased appropriations and prohibited from crossing over to another office
unobligated allotments as savings prior to even in the guise of augmentation of a
the end of the fiscal year. deficient item or items. Thus, we call such
transfers of funds cross-border transfers or
Augmentation is valid only when funding is cross-border augmentations.
deficient. The GAAs for 2011, 2012 and 2013
set as a condition for augmentation that the Regardless of the variant characterizations of
appropriation for the PAP item to be the cross-border transfers of funds, the plain
augmented must be deficient, to wit: x x x text of Section 25(5) disallowing cross-border
Augmentation implies the existence in this Act transfers was disobeyed. Cross-border
of a program, activity, or project with an transfers, whether as augmentation, or as aid,
appropriation, which upon implementation, are prohibited under Section 25(5).
or subsequent evaluation of needed
resources, is determined to be deficient. In no No violation of equal
case shall a non-existent program, activity, or protection. Petitioners claim that the Executive
project, be funded by augmentation from discriminated against some legislators on the
savings or by the use of ground alone of their receiving less than the
appropriations otherwise authorized in this others could not of itself warrant a finding of
Act. contravention of the Equal Protection Clause.
The denial of equal protection of any law
The President cannot substitute his own will should be an issue to be raised only by parties
for that of Congress. The Court held that the who supposedly suffer it, and, in these cases,
savings pooled under the DAP were such parties would be the few legislators
allocated to PAPs that were not covered by claimed to have been discriminated against in
any appropriations in the pertinent the releases of funds under the DAP. The
GAAs. Although the [Office of the Solicitor reason for the requirement is that only such
General] rightly contends that the Executive affected legislators could properly and fully
was authorized to spend in line with its bring to the fore when and how the denial of
mandate to faithfully execute the laws equal protection occurred, and explain why
(which included the GAAs), such authority did there was a denial in their situation. The
not translate to unfettered discretion that requirement was not met here.
Operative fact doctrine. The doctrine of
operative fact recognizes the existence of the
In its wake, as seen in the news,
law or executive act prior to the determination critics have gladly seized on DAPs
of its unconstitutionality as an operative fact
that produced consequences that cannot partial unconstitutionality to raise
always be erased, ignored or disregarded. In scenarios of impeachment against
short, it nullifies the void law or executive act
but sustains its effects. It provides an the President, or raised calls for the
exception to the general rule that a void or
unconstitutional law produces no effect. But its
resignation of Budget Secretary
use must be subjected to great scrutiny and Florencio Butch Abad.
circumspection, and it cannot be invoked to
validate an unconstitutional law or executive
act, but is resorted to only as a matter of These criticisms ride on the popular
equity and fair play. It applies only to cases
where extraordinary circumstances exist, and anger against pork barrel freely-
only when the extraordinary circumstances disbursed lump sum allocations such
have met the stringent conditions that will
permit its application. as the Priority Development
Assistance Fund (PDAF) declared
The operative fact doctrine applies to the
implementation of the DAP. To declare the unconstitutional in Belgica v.
implementation of the DAP unconstitutional
without recognizing that its prior
Executive Secretary this time
implementation constituted an operative fact aimed at Malacaang rather than
that produced consequences in the real as
well as juristic worlds of the Government and Congress.
the Nation is to be impractical and unfair.
Unless the doctrine is held to apply, the
Executive as the disburser and the offices We will not join the bandwagon. We
under it and elsewhere as the recipients could do not support the impeachment of
be required to undo everything that they had
implemented in good faith under the the president and we leave it up to
DAP. That scenario would be enormously
burdensome for the Government. Equity
Secretary Abad, an exemplary public
alleviates such burden. official by any standard, to discern
whether his resignation will benefit
the country. We trust he will make
With the decision in the consolidated the right decision.
case of Araullo v. Aquino III, the
Supreme Court had found the In this article, we think beyond this
Disbursement Acceleration Program politics of outrage, which could just
(DAP) of the administration of be a moment or are warnings of
President Benigno S. Aquino major upheavals ahead, and reflect
partially constitutional, partially on the longer term political and
unconstitutional. governance implications of the DAP
decision.
A judicial challenge to an act of the allocations (cross-border
executive (or the legislative, for that augmentation) by virtue of the
matter), is ultimately an act that latters unconstitutionality, or at the
seeks to limit an instance of the very least, because such itself
exercise of that governmental power violates Art. VI Sec. 25 (5).
when done right, in an effort to curb
abuse and protect what is right. In Savings
parsing DAP, in declaring some of
Aquinos actions constitutional, and There, too, was a problem in
some unconstitutional, the Supreme addressing the definition of actual
Court had essentially left the savings that is the source of
Presidents prerogative to augment augmentations. To quote from
proper budget expenditures from the ponencia, actual savings, strictly
proper budget savings intact, but speaking, is the money left over from
clearly defined what augmentation GAA-authorized items which are
is not. authorized was completed, finally
discontinued, or abandoned; or
What augmentation is, according to because the policy targets were
the ponencia, and defined in Art. VI, reached at lower cost due to
Sec. 25 (5) of the 1987 Constitution, increased efficiencies; or because of
and authorized within each years vacant government positions or
General Appropriations Act (GAA), is leaves-of-absence without
the use of clearly-identified savings pay. Araullo held that it did not
in the expenditures of government contemplate the use of money that
departments and offices to augment had yet to be used: the controversial
clearly-identified, actual deficiencies unobligated allotments of slow-
within those respective government moving government projects; or the
departments and offices. What unprogrammed funds, which are
augmentation is not, however, is to standby appropriations authorized in
allocate what was not authorized as the GAA, which are available only
an expenditure in the GAA. It is not a under specific circumstances and
transfer of executive department conditions. One of DAPs errors, but
savings to legislative lump sum a critical one, was that it considered
funds otherwise not considered by Enriquez earlier ruled pork barrel as
law as actual savings, as actual constitutional, allowing the practice to
savings, making them available for continue with judicial leave. For all
disbursement by the President. the diatribes raised against Aquino in
the wake of the PDAF scandal, the
As with Belgica, Araullo exposes the truth is that, as with his
underbelly of Philippine money predecessors, he had inherited prior
politics: the roles and powers over practices of Philippine government
the budget-crossing borders. With that have become so ingrained in
PDAF, it was the legislature getting political culture.
an all-but-assured slice of the pie for
legislators to spend on their own Malice
programs as they see fit; a
usurpation of executive roles. With Other than outright malice (which has
the unconstitutional portions of DAP, to be proven first!), nothing else but
it was the Chief Executive allocating the honest belief that pork is right (if
savings and unprogrammed funds to used right) would have motivated
projects or programs independent of congressmen who cried foul and
authorized GAA allocations threats of impeachment over Belgica.
(including DAP handovers to And I do believe (despite others that
legislators); a usurpation of claim otherwise) that what motivated
legislative functions. It would be the administration on the exercise of
crude but otherwise uncomfortably and its defensiveness with DAP was
close to the mark to describe a not the malice they denounce, but a
DAPed president as a mini- similar honest belief that the
Congress, and a PDAFed legislator Executive could reallocate unused
as a mini-president. money as it did, for the good of the
nation.
Yet this confluence and contradiction
of roles has likely subsisted in the Ironically, it was Aquinos own high
foundations of Philippine politics-in- standards of daang matuwid that
practice certainly allowed the Court to resolve the DAP
since PHILCONSA v. question as it did or for the
question to explode into public
consciousness as it did. The records or Revilla; or Aquino or Abad that
of the case will reflect the packages some feel are just attempts to deflect
of memoranda and orders in relation or delay the inevitable condemnation.
to DAP money movements: amply And we feel that anger in critical op-
documented and volunteered upon eds, or the vitriol in the comment
summons. boards of news outfits and social
media.
Admittedly, and as will be elaborated
later, an audit will still be necessary Unconstitutional but not criminal
to uncover the full story of DAP (and
the Court did note that documents Yet here we must demur. Legally and
relating to DAPs conceptualization morally, to condemn requires proper
were scarce), but the evidence evidence culpable violation in case
package offered in Court was of impeachment, or the commission
enough for the Justices to parse how of the elements of the crime charged,
the President exercised his powers, in case of criminal prosecution. As
the bone of contention in Araullo. Professor Randy David observed in
his Inquirer column, reflecting on his
If anything, such level of arrest in the wake of President
documentary detail, readily Arroyos Proclamation 1017, a policy
presented upon order, would be being unconstitutional does not
evidence of good faith on the part of always mean the policy-maker being
the administration. Which is where criminal or culpable for that matter.
our discussion now turns to the
question of impeachment against Justice Marvic Leonen pointed it out
Aquino, or calls for Abad to resign. clearly in his separate opinion: to
Ever since last year, there has been rule that a declaration of
an undercurrent of vindictiveness in unconstitutionality per se is the basis
the campaign against pork. for determining liability is a
Understandable, given the scale of dangerous proposition. It is not
the scandal, and the defenses proper that there are suggestions of
offered by all the parties under attack administrative or criminal liability
whether Senators Enrile, Estrada, even before the proper charges are
raised, investigated, and filed.
If we keep insisting that government that Araulloreestablishes the proper
officials should always be held liable, budget-handling borders of the
especially criminally liable, for acts separated powers of government.
subsequently declared to be
unconstitutional by the Court, then all Governance
government would be paralyzed by
terror, unable to exercise such This leads us to our next set of
powers even granted to them by the implications: governance. As pork
Constitution, for fear of the next had become ingrained in national
prosecution (whether truly aggrieved politics, it had also wormed its way
or politically motivated) thrown in into governance, into the
their direction. implementation of policy and the
spending of money on policy. PDAF
The Supreme Court may be the final again demonstrates how dependent
arbiter of constitutionality, but by public services, even those provided
virtue of separation of powers, the by NGOs, were on the largesse of
Executive and Legislature get first legislators, such that the system
crack at interpretation of the could be manipulated with ghost
constitutionality of their acts NGOs. It feeds into the patronage
(contemporaneous construction). politics of Philippine governance: that
Such interpretation is still open to public services and the benefits
challenge by any aggrieved party, every citizen receives, by law, from
but a principle of law is that government is held hostage by the
constitutionality is generally political elite, who can then extract
presumed; its unconstitutionality staying power and the occasional
must be proved. Until proven graft from his constituency and
otherwise, the law grants the budgetary allocation.
President or Congress the benefit of
the doubt. It should be noted that the same
Secretary Abad critics are now wont
Absent further evidence on malicious to hang for DAP, is the same
or culpable acts of the Secretary Abad who declared, in his
Administration, it is enough Metrobank Professorial Chair lecture
last year at the Ateneo School of
Government, that the budget could congressionally-branded
be a tool for citizen empowerment scholarships and free clinics; the
(particularly though inclusive basketball courts and multi-purpose
budgeting reforms introduced under halls, that seem to be the low-
his watch, such as bottom-up hanging fruit of GAA allocations to
budgeting). public works.