Title
Garcia vs. Board of Investments
Case
G.R. No. 88637
Decision Date
Sep 7, 1989
A congressman files a petition against the Board of Investments for violating due process in the transfer of a petrochemical project, leading to a court ruling in favor of the petitioner and ordering the BOI to publish the amended application, grant access to project-related documents, and hold a hearing for the petitioner's opposition to the transfer.
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Case Digest (G.R. No. 88637)

Facts:

  • In Garcia v. Board of Investments, G.R. No. 88637, decided on September 7, 1989, Congressman Enrique T. Garcia of the Second District of Bataan filed a petition for certiorari and prohibition with a prayer for preliminary injunction.
  • The petition was against the Board of Investments (BOI), the Department of Trade and Industry (DTI), Bataan Petrochemical Corporation (BPC), and Pilipinas Shell Corporation.
  • The petitioner challenged the approval by the BOI and DTI of the amended application for registration of BPC, which sought to transfer the site of its petrochemical complex from Bataan to Batangas.
  • The original site in Bataan was reserved for industrial estate purposes under Proclamation Nos. 361 and 630, and later expanded by P.D. No. 1803.
  • BPC, a joint venture with the Philippine National Oil Company (PNOC), was initially registered with BOI in February 1988, with Bataan as the plant site and naphtha as the feedstock.
  • BPC was granted pioneer status and various fiscal incentives.
  • In early 1989, BPC sought to amend its registration to change the site to Batangas, citing insurgency and labor instability in Bataan, and the presence of a large LPG depot in Batangas.
  • Despite opposition from Bataan officials and civic groups, the BOI approved the amendment on May 25, 1989, without a hearing and refused to provide the petitioner with copies of the amended application.
  • Congressman Garcia filed the petition, alleging violations of due process and the Omnibus Investments Code of 1987.

Issue:

  • (Unlock)

Ruling:

  1. The Supreme Court ruled that the BOI and DTI violated due process by approving the amended application without a hearing.
  2. The Court held that the petitioner had a right to access the records of the original and amended applications, excluding privileged information.
  3. The Court found that the approval of the change in the project site was in violation of the procedural requirements of the Omnibus Investments Code.
  4. The Court did not specifically rule on the ...(Unlock)

Ratio:

  • The Supreme Court emphasized that the Omnibus Investments Code of 1987 mandates consultations with affected communities and the publication of applications for registration.
  • The failure of the BOI to publish the amended application and hold a hearing deprived the oppositors, including the petitio...continue reading

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