Case Digest (G.R. No. 113940)
Facts:
In Spouses Renato Constantino, Jr. and Lourdes Constantino, together with their minor children, Renato Redentor, Anna Marika Lissa, Nina Elissa, and Anna Karmina, joined by Filomeno Sta. Ana III and the Freedom From Debt Coalition, petitioned the Supreme Court on July 17, 1992, against Hon. Jose B. Cuisia, then Governor of the Bangko Sentral ng Pilipinas, Hon. Ramon del Rosario, Secretary of Finance, Hon. Emmanuel V. Pelaez, Philippine Debt Negotiating Chairman, and the National Treasurer. They assailed the foreign debt‐relief agreements entered into under the Philippine Comprehensive Financing Program for 1992, which had been negotiated beginning in February 1992 and formally executed in London on July 24, 1992, and whose buy‐back component was implemented as early as May 15, 1992. The petition, filed directly with the Supreme Court in its original jurisdiction, sought injunctive relief to enjoin further execution of additional debt‐relief contracts, annulment of all acts pursuCase Digest (G.R. No. 113940)
Facts:
- Parties and Filing
- Petitioners: Spouses Renato Constantino, Jr. and Lourdes Constantino; their minor children Renato Redentor, Anna Marika Lissa, Nina Elissa, and Anna Karmina; Filomeno Sta. Ana III; and the Freedom from Debt Coalition.
- Respondents: Governor of the Central Bank (Jose B. Cuisia), Secretary of Finance (Ramon del Rosario), Philippine Debt Negotiating Chairman (Emmanuel V. Pelaez), and the National Treasurer.
- Relief sought: Certiorari, prohibition, and mandamus to enjoin execution of foreign debt‐relief contracts under the 1992 Philippine Comprehensive Financing Program (“Financing Program”) and compel criminal/administrative charges for alleged constitutional violations.
- The 1992 Financing Program
- Origins: Continuation of the Aquino administration’s negotiation‐oriented strategy (1986–1991) involving three sovereign and three commercial‐bank restructuring agreements.
- Framework (negotiated 28 February 1992): A “multi‐option financing package” covering approximately US$5.3 billion of commercial‐bank debt.
- Components:
- Cash buyback at discount (allegedly P1.26 billion bought back on 15 May 1992).
- Bond conversion options:
- New‐money bonds (5-year grace, 17-year maturity).
- Interest‐reduction bonds (25-year maturity).
- Principal‐collateralized interest‐reduction bonds (25-year maturity).
- Timeline: Program signed on 24 July 1992 in London despite pending petition; petitioners seek annulment of all ensuing acts.
Issues:
- Constitutional Scope
- Whether the buyback and bond‐conversion schemes fall outside the President’s power to “contract or guarantee foreign loans” under Section 20, Article VII of the 1987 Constitution.
- Delegation of Power
- Whether the President may validly delegate the power to contract or guarantee foreign loans to respondents (Secretary of Finance, Central Bank Governor, etc.).
- Grave Abuse and Policy Violation
- Whether respondents acted with grave abuse of discretion or in excess of jurisdiction by including allegedly fraudulent or void Marcos‐era loans in the Program, thus violating constitutional state policies on social justice, national prosperity, and people’s welfare.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)