J.A.B. Bulao & Associates

CASE 2014-0058: ALROBEN J. GOH, PETITIONER, VERSUS HON. LUCILO R. BAYRON AND COMMISSION ON ELECTIONS, RESPONDENTS (G.R. NO. 212584, 25 NOVEMBER 2014, CARPIO, J.) SUBJECT/S: COMELEC BUDGET; RECALL ELECTION (BRIEF TITLE:: GOH VS. HON. BAYRON AND COMELEC).

DISPOSITIVE:

“WHEREFORE, the petition is GRANTED.

We PARTIALLY REVERSE and SET ASIDE Resolution No. 9864 insofar as it directed the suspension of any and all proceedings in the recall petition. We REVERSE and SET ASIDE Resolution No. 9882, and DIRECT the Commission on Elections to immediately carry out the recall elections of Mayor Lucilo R. Bayron of Puerto Princesa City, Palawan in accordance with the provisions of the Local Government Code and COMELEC Resolution No. 7505.

This Decision is immediately executory.

SO ORDERED.”

SUBJECTS/DOCTRINES/DIGEST:

COMELEC SAYS THERE IS NO BUDGET IN THE 2014 GENERAL APPROPRIATIONS ACT FOR THE CONDUCT OF RECALL ELECTION AND THEREFORE THEY CANNOT CONDUCT RECALL ELECTIONS. IS THIS CORRECT?

NO. THE 2014 GAA PROVIDES THE LINE ITEM APPROPRIATION TO ALLOW COMELEC TO CONDUCT RECALL ELECTIONS.

“We grant the petition. We hold that the COMELEC committed grave abuse of discretion in issuing Resolution Nos. 9864 and 9882. The 2014 GAA provides the line item appropriation to allow the COMELEC to perform its constitutional mandate of conducting recall elections. There is no need for supplemental legislation to authorize the COMELEC to conduct recall elections for 2014.”

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TO BE VALID AN APPROPRIATION MUST INDICATE A SPECIFIC AMOUNT AND A SPECIFIC PURPOSE. DOES THE PURPOSE ‘TO CONDUCT ELECTIONS’ COVER RECALL ELECTIONS”?

YES. THE PURPOSE MAY BE BROKEN DOWN INTO DIFFERENT RELATED SUB-CATEGORIES. THEREFORE THE PURPOSE “TO CONDUCT ELECTIONS” COVERS, EVEN IF NOT EXPRESSLY SPELLED OUT, REGULAR, SPECIAL AND RECALL ELECTIONS.

“Under these· factual circumstances, we find it difficult to justify the COMELEC ‘s reasons why it is unable to conduct recall elections in 2014 when the COMELEC was able to conduct recall elections in 2002 despite lack of the specific words “Conduct and supervision of x x x recall votes x x x” in the 2002 GAA. In the 2002 GAA, the phrase “Conduct and supervision of elections and other political exercises” was sufficient to fund the conduct of recall elections. In the 2014 GAA, there is a specific line item appropriation for the “Conduct and supervision of x x x recall votes x x x.”

More importantly, the COMELEC admits in its Resolution No. 9882 that the COMELEC has “a line item for the ‘Conduct and supervision of elections, referenda, recall votes and plebiscites.”‘ This admission of the COMELEC is a correct interpretation of this specific budgetary appropriation.· To be valid, an appropriation must indicate a specific amount and a specific purpose. However, the purpose may be specific even if it is broken down into different related sub-categories of the same nature. For example, the purpose can be to “conduct elections,” which even if not expressly spelled out covers regular, special, or recall elections. The purpose of the appropriation is still specific -to fund elections, which naturally and logically include, even if not expressly stated, not only regular but also special or recall elections.

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CAN COMELEC TAP ITS SAVINGS TO FUND THE CONDUCT OF RECALL ELECTIONS?

YES. IT CAN AUGMENT FROM SAVINGS ITS APPROPRIATIONS FOR PERSONNEL SERVICES, MAINTENANCE AND OTHER OPERATING EXPENSES. RECALL ELECTIONS ONLY NEED OPERATING EXEPENSES BECAUSE THE EXISTING PERSONNEL ARE THE SAME PERSONNEL WHO WILL EVALUATE THE SUFFICIENCY OF THE RECALL PETITIONS.

However, contrary to the COMELEC’s assertion, the appropriations for personnel services and maintenance and other operating expenses falling under “Conduct and supervision of elections, referenda, recall votes and plebiscites” constitute a line item which can be augmented from the COMELEC’s savings to fund the conduct of recall elections in 2014. The conduct of recall elections requires only operating expenses, not capital outlays. The COMELEC’s existing personnel in Puerto Princesa are the same personnel who will evaluate the sufficiency of the recall petitions. and conduct the recall elections.43

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TO READ THE DECISION, JUST CLICK/DOWNLOAD THE FILE BELOW.

SCD-2014-0058-NOV-2014-GOH

CASE 2014-0055: SECURITIES AND EXCHANGE COMMISSION, Petitioner, -versus – THE HONORABLE COURT OF APPEALS, OMICO CORPORATION, EMILIO S. TENG AND TOMMY KIN HING TIA, Respondents; ASTRA SECURITIES CORPORATION, Petitioner, VERSUS OMICO CORPORATION, EMILIO S. TENG AND TOMMY KIN HING TIA, Respondents (G.R. No. 187702, G.R. No. 189014, 22 OCTOBER 2014, SERENO, J.) BRIEF TITLE: SEC VS. CA; OMICO CORP ET AL VS. CA..

DISPOSITIVE:

“WHEREFORE, the petition in G.R. No. 187702 is EXPUNGED for lack of capacity of petitioner to file the suit.

The petition in G.R. No. 189014 is DENIED. The Court of Appeals Decision dated 18 March 2009 and Resolution dated 9 July 2009 in CA-G.R. SP No. 106006 are AFFIRMED.

SO ORDERED.”

SUBJECTS/DOCTRINES/DIGEST:

WHO HAS JURISDICTION OVER CONTROVERSIES INVOLVING THE VALIDATION OF PROXIES, THE SEC OR THE REGULAR COURTS?

IF THEY ARE RELATED TO ELECTION CONTESTS, IT IS THE REGULAR COURTS WHO HAVE JURISDICTION UNDER THE INTERIM RULES OF PROCEDURE GOVERNING INTRA-CORPORATE CONTROVERSIES. IN ALL OTHER CASES IT IS THE SEC WHO HAS JURISDICTION.

The Court explained that the power of the SEC to regulate proxies remains in place in instances when stockholders vote on matters other than the election of directors.35 The test is whether the controversy relates to such election. All matters affecting the manner and conduct of the election of directors are properly cognizable by the regular courts. Otherwise, these matters may be brought before the SEC for resolution based on the regulatory powers it exercises over corporations, partnerships and associations.

WAS IT PROPER FOR SEC TO FILE A PETITION QUESTIONING THE DECISION OF CA?

NO BECAUSE SEC IS NOT THE REAL PARTY IN INTEREST.

Calling to mind established jurisprudential principles, the Court therein ruled that quasi-judicial agencies do not have the right to seek the review of an appellate court decision reversing any of their rulings. 39 This is because they are not real parties-in-interest. Thus, the Court expunged the petition filed by the SEC for the latter’s lack of capacity to file the suit. So it must be in the instant cases.

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SCD-2014-0056-OCT-2014-SEC

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CASE 2014-0054: DEVELOPMENT BANK OF THE PHILIPPINES VS. COMMISSION ON AUDIT, JANEL D. NACION, Director IV, Legal Services Sector of COA, and the Supervising Auditor of the Development Bank of the Philippines (G.R. NO. 202733, 30 SEPTEMBER 2014, PERALTA, J) SUBJECT/S: FOREIGN TRAVELS OF GOVERNMENT OFFICIALS. (BRIEF TITLE: DBP VS COA ET AL)

DISPOSITIVE:

“WHEREFORE, premises considered, the instant petition is DENIED. Decision No. 2011-055 and Resolution No. 2012-099, dated August 17, 2011 and July 12, 2012, respectively, of the Commission on Audit, are hereby AFFIRMED.

SO ORDERED.”

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SCD-2014-0055-OCT-2014-DPB

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