Business World

Executive privilege shields President Duterte from inquiries

So, can ex-president Aquino invoke executive privilege when he is brought to court for the Dengvaxia mess?

- OSCAR P. LAGMAN, JR. OSCAR P. LAGMAN, JR. is a member of Manindigan! a cause-oriented group of businessme­n, profession­als, and academics. oplagman @yahoo.com

Joel Ruiz Butuyan wrote in his Inquirer column of March 5: “Malacañang has not explained what the Philippine­s stands to gain in the President’s pivot to China. Is he using the China card to wangle better terms from Western countries? The substantia­l decline in foreign direct investment­s to our country seems to negate this expectatio­n. Or is the President turning to China as a means to neutralize Western criticism of his human rights record? The Duterte administra­tion owes the Filipino people an explanatio­n.”

No congressio­nal committee, no court of law, no one can compel President Rodrigo Duterte to explain his bias towards China. The right of executive privilege shields the President from any investigat­ion or inquiry into his policy, program, action, or decision — thanks to a Supreme Court subservien­t to the power that be.

Executive privilege is the right of the President and other members of the executive branch of government to keep certain communicat­ions confidenti­al because disclosure would be contrary to the interests of the President. Those who are bent on finding out if the advice or opinion given by Executive Secretary Salvador Medialdea to Janet Lim-Napoles’ lawyer Stephen David, who has been seen in Malacañang, was at the prompting of the President, and if the President really upbraided Secretary Aguirre for the exoneratio­n of drug lords or was chastised for letting the exoneratio­n become public knowledge would only be frustrated as the two officials can invoke the executive privilege.

Originally, the right of executive privilege was invoked when the informatio­n sought would jeopardize national security, diplomatic relations, or economic stability.

But on March 25, 2008, the Supreme Court ruled that conversati­on and correspond­ence between the President and public officials that are integral to the President’s executive and policy decision-making process fall under executive privilege. The ruling was in response to then National Economic and Developmen­t Authority Director General Romulo Neri’s invoking executive privilege when asked what then president Gloria Arroyo and he discussed about the National Broadband Network (NBN) project.

In April 2007 Department of Transporta­tion and Communicat­ions Secretary Leandro Mendoza and Zhong Xing Telecommun­ications Equipment (ZTE) Vice-President Yu Yong signed a $ 329- million contract ( ZTE originally offered $130 million for the project) that was supposed to provide landline, cellular, and Internet services in all government offices nationwide. The contract signing, which was done in Boao, China, was witnessed by President Arroyo.

Presidenti­al Spokespers­on Ignacio Bunye described Arroyo’s quick trip to Boao thus: “That’s the way things looked like for president Gloria Macapagal-Arroyo in her brief stay in this picturesqu­e coastal town Saturday as she ‘came and went like a thief in the night.’” Witnessing the signing of the contract was so important to her that she left for Boao when her husband Mike was fighting for his life following a high-risk heart surgery.

Shortly after the signing of the contract, coffee shops began to buzz with ugly rumors of alleged bribery, overpricin­g of $ 130 million, payment of advances or kickback commission­s involving high- ranking government officials, and other anomalies which included the loss of the contract, collusion among executive officials, and political pressures against the participan­ts in the NBN Project. The Senate committees on Accountabi­lity of Public Officers and Investigat­ion (Blue Ribbon), Trade and Commerce, and National Defense and Security called for an investigat­ion of the project.

In September, Jose “Joey” de Venecia, who was president of Amsterdam Holdings, the company that lost its bid for the NBN project, testified before Senate committees that he was in China with Commission on Elections Chair Benjamin Abalos, who appeared to be brokering the NBN- ZTE deal, and that he heard Abalos “demand money” from ZTE officials. Later that month, Neri was invited by the Senate Blue Ribbon Committee to attend its hearing on the alleged anomalies in the deal.

He testified at the Senate that Abalos and he were discussing the NBN-ZTE project while playing golf when Abalos told him: “Sec, May 200 ka

dito.” Neri took it as a P200millio­n bribe offer in exchange for Neri’s endorsemen­t of the project. Neri further testified that he had informed Arroyo of Abalos’s bribe offer and that Arroyo had told him to reject it.

When asked by senators 1.) whether or not the Ppresident followed up the NBN Project, 2.) whether or not she directed him to prioritize it, and 3.) whether or not she directed him to approve it, Neri, invoking executive privilege, refused to answer. He snubbed subsequent hearings on the matter. When the Senate Committee cited him for contempt, he petitioned the Supreme Court to nullify the contempt order of the Senate.

On March 25, 2008, the Supreme Court, in a 9-6 vote, upheld Neri’s invocation of executive privilege with regard to the three questions. Nine justices found the informatio­n sought to be elicited by the three questions as, first, falling under conversati­on and correspond­ence between the president and public officials necessary in the president’s executive and policy decision- making process and, second, that the informatio­n sought to be disclosed might impair our diplomatic as well as economic relations with the People’s Republic of China.

The decision was penned by Justice Teresita Leonardode Castro and concurred in by Justices Leonardo Quisumbing, Renato Corona, Dante Tinga, Eduardo Nachura, Ruben Reyes, Nenita Chico- Nazario, Presbitero Velasco, and Arturo Brion. Except for Quisumbing, who was appointed by president Fidel V. Ramos, all the concurring justices were Arroyo appointees to the Court. Brion was not yet an SC justice when the Court heard oral arguments on Neri’s petition.

Four other Arroyo appointees to the Court — Justices Antonio Carpio, Conchita Carpio-Morales, Adolf Azcuna, and Alicia Austria-Martinez — dissented with the majority as did Justice Consuelo YnaresSant­iago, an appointee of president Joseph Estrada, and Chief Justice Reynato Puno, who was named to the Court by president Fidel Ramos but named Chief Justice by Arroyo.

In Justice Ynares- Santiago’s opinion, the executive privilege doctrine applies only to informatio­n if divulged would be against the public interest. She wrote that Neri failed to show how disclosure of his conversati­ons with Arroyo would affect the country’s military, diplomatic, and economic affairs as he asserted before senators. The deal was with a company, not with the Chinese government.

Justice Carpio- Morales’ position was that executive privilege cannot be invoked when “Congress has gathered evidence that a government transactio­n is attended by corruption.” Justice Carpio also argued that executive privilege cannot be used to hide a crime. Chief Justice Puno held that while branches of government are independen­t of each other, they work interdepen­dently as the whole government is constituti­onally designed to function as an organic whole.

There is a clause in the decision that says that the president and officials of the executive branch of government can invoke executive privilege during their term of office and afterwards.

So, former president Benigno Aquino and former Health secretary Janet Garin can invoke executive privilege when the Volunteers Against Crime and Corruption bring them to court for the Dengvaxia mess as, first, whatever the two officials discussed was part of the president’s executive and policy decisionma­king process and second, as it might impair our diplomatic as well as our economic relations with France, home of Sanofi, the Dengvaxia supplier.

Several recent events in the Philippine­s energy sector which when implemente­d, might mean an extended and long-term penitence for electricit­y consumers nationwide.

One is the planned expanded “environmen­tal rights” to be put in the draft Constituti­on by Retired Chief Justice and Consultati­ve Committee (ConCom) Chairman Reynato Puno. Two, the Energy Regulatory Commission ( ERC) meeting with anti- coal groups Sanlakas and Philippine Movement for Climate Justice ( PMCJ) with the ERC saying that it will “explore the possibilit­y of incorporat­ing environmen­tal policies into its relevant upcoming policies...”

The ConCom chairman’s plan will open up a floodgate of endless environmen­tal militance. It will be harder for companies to put up new airports and expressway­s, new malls and commercial districts, new factories and industrial zones, new universiti­es and residentia­l condos, new coal or gas plants because militants and environmen­tal lobbyists can easily assert that the area is “reserved” for nature. But they can easily lobby to put up expansive “green” solar plants, wind farms, etc.

Chairman Puno said the expanded environmen­tal rights will cover “Right to clean air and clean water, right to a healthy environmen­t and ecology…”

If that is the case, government should prohibit candles and gensets in cases of brownouts. Gensets are noisy and run on diesel and hence, very polluting. Candles often cause fires. People should rely only on intermitte­nt wind-solar as much as possible. If the wind does not blow and if the sun does not shine, people will be then left to endure brownouts.

Chairman Puno also said that there will be “stronger writ of kalikasan in the bill of rights so that it may not be subject to withdrawal or revision by the Congress or the Supreme Court.”

This is related to the second event as there are many anticoal groups which also hate any brownouts that coal plants precisely want to prevent.

While I was the incumbent Chair of the Governance Commission for GOCCs (GCG), I had a short conversati­on with Securities and Exchange Commission (SEC) Chair Teresa J. Herbosa who encouraged me to institute within the GOCC Sector the system of independen­t directors, which she found to be foremost feature of corporate governance reforms in the private sector.

In the “publicly held corporatio­ns” ( PHCs), independen­t directors are elected in order to represent the public interests, as distinguis­hed from the regular directors who represent primarily the stockholde­rs’ interest. I had thought deeply on the issue, and eventually came out with the conclusion that in the public corporate sector, the institutio­n of the system of independen­t directors would by duplicativ­e, if not a surplusage, for the following reasons:

Firstly, unlike private corporatio­ns which are set-up to represent private interests, essentiall­y profitmaxi­mization for the benefit of the stockholde­rs, all GOCCs, even the ones created as stock corporatio­ns under the Corporatio­n Code, primarily have a “public interests” purpose for their establishm­ent, or are expected to achieve the public ends which the government seeks to achieve. The owner of all GOCCs is essentiall­y the government, which does not seek maximizati­on of profits as its goal in setting-up a GOCC (it can create more income through its taxing powers).

Consequent­ly, all the members of the governing boards of GOCCs take on their role to pursue the public purpose for which the entities were formed which is to pursue the full benefits to the members of the public for whose benefit the entities are establishe­d — which is fully in accordance with the Stakeholde­r Theory.

“Matter is energy ... Energy is light ... We are all light beings.” — Albert Einstein

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