Case Summary (G.R. No. 88637)
Petitioner
Enrique T. Garcia, duly elected Representative, asserts a legal interest as the voice of his constituents and the affected community in Limay, Bataan.
Respondents
• Board of Investments (BOI)
• Department of Trade and Industry (DTI)
• Bataan Petrochemical Corporation (BPC)
• Pilipinas Shell Corporation (concerned for its LPG depot in Batangas)
Key Dates
• March 6, 1968 (Proclamation 361): 388-ha reserved at Lamao, Limay, Bataan for industrial estate.
• November 29, 1969 (Proclamation 630): Enlargement to 576 ha.
• January 16, 1981 (P.D. 1803): Petrochemical Industrial Zone under PNOC management.
• December 17, 1987: BPC files registration application specifying Bataan site.
• December 21, 1987: Publication of original application in national newspaper.
• February 24, 1988: BOI issues Certificate of Registration, granting pioneer status.
• February 1989: BPC advises DTI/BOI of intention to amend site to Batangas citing security and LPG access.
• April 11, 1989: Formal filing of amended application (site change, feedstock expansion, increased investment).
• May 21, 1989: BOI refuses petitioner’s document request; investors withhold consent.
• May 25, 1989: BOI approves amended registration without publication or hearing.
• June 26, 1989: Garcia files petition for certiorari and prohibition with preliminary injunction.
• September 7, 1989: Supreme Court issues final decision.
Applicable Law
• 1987 Philippine Constitution, Article III, Section 7 (access to information on matters of public concern).
• Omnibus Investments Code (EO 226, July 16, 1987):
– Art. 2(2): State policy to accelerate economic development and mandate consultations with affected communities.
– Art. 7(3): Requirement for publication of applications and payment of publication fees.
– Art. 33: “Whenever necessary,” BOI shall consult affected communities through People’s Economic Councils.
– Art. 54: Publication and posting of notices of BOI’s action.
– Art. 81: Confidentiality of applications, with disclosure only upon applicant’s consent or court order.
• P.D. No. 949 and P.D. No. 1803: Establishment of petrochemical industrial zone in Bataan.
Grounds of the Petition
- Grave abuse of discretion in approving BPC’s amended registration without notice or hearing, in violation of due process under the Constitution and EO 226.
- Refusal to furnish petitioner with copies of original and amended applications, contravening the State policy of transparency and Art. III, Sec. 7.
- Approving transfer of site from designated petrochemical zone in Bataan to Batangas in disregard of Proclamations 361, 630 and P.D. 1803.
- Approving alteration of feedstock from exclusively naphtha to naphtha and/or LPG without proper procedure.
- Demonstrated partiality toward BPC at the expense of the public interest.
Due Process and Publication Requirements
• EO 226 mandates publication of registration applications (Art. 7(3)) and, where necessary, consultation with affected communities (Art. 33).
• BPC’s original application was duly published; its amended application—tantamount to a new application for site and feedstock changes—was not.
• Failure to publish deprived Bataan stakeholders, including the petitioner, of the opportunity to be heard.
Right of Access to Information
• The 1987 Constitution guarantees citizens access to information on matters of public concern, subject to limitations provided by law (Art. III, Sec. 7).
• EO 226’s confidentiality clause (Art. 81) allows disclosure by court order.
• BOI’s refusa
Case Syllabus (G.R. No. 88637)
Facts
- The State, by Proclamation No. 361 (March 6, 1968) as amended by Proclamation No. 630 (November 29, 1969), reserved a 388-hectare public‐domain tract in Lamao, Limay, Bataan for industrial estate purposes.
- P.D. No. 1803 (January 16, 1981) enlarged this reservation by 188 hectares (totaling 576 hectares) as the “Petrochemical Industrial Zone” under PNOC’s administration, management, and ownership.
- The government‐owned Bataan Refining Corporation (BRC) in Bataan produced 60 percent of the country’s naphtha output.
- Taiwanese investors organized Bataan Petrochemical Corporation (BPC) and applied with BOI for pioneer registration as a new domestic producer of petrochemicals, specifying Limay, Bataan as plant site and the use of a naphtha cracker with naphtha feedstock; BPC entered into a joint venture with PNOC.
- On February 24, 1988, BOI issued BPC a Certificate of Registration, granting pioneer status and fiscal privileges (raw‐material tax exemptions, repatriation rights, etc.). The House approved a bill exempting naphtha used in the plant from the 48 percent ad valorem tax.
- In early 1989, BPC’s major investor signified its desire to amend the registration to:
• relocate the plant from Limay, Bataan to Batangas (citing insurgency, labor instability, and proximity to an LPG depot owned by Pilipinas Shell)
• increase the investment from US$220 million to US$320 million
• expand production capacities
• change feedstock to “naphtha and/or liquefied petroleum gas” - On April 11, 1989, BPC formally filed its amended application with BOI. Local officials of Bataan (including petitioner) and civic groups vigorously opposed the transfer; President Aquino also expressed her preference for the original Bataan site.
- Petitioner requested BOI to furnish copies of BPC’s original and amended applications; BOI refused, citing confidentiality and the investors’ withholding of consent.
- On May 25, 1989, BOI approved BPC’s amended registration.
- On June 26, 1989, petitioner filed this petition for certiorari and prohibition (with a prayer for preliminary injunction), alleging grave abuse of discretion and due process violations by BOI and DTI.
Issues
- Whether BOI and DTI gravely abused their discretion by approving BPC’s amended application without:
• publishing notice of material amendments and inviting objections
• granting affected parties a hearing on the proposed transfer
• furnishing petitioner copies of the application documents - Whether petitioner, as the duly elected representative of the Second District of Bataan, has a legal interest to challenge BOI’s action.
- Whether the approval contravened P.D. Nos. 949 and 1803, which designate Lamao, Limay, Bataan as the petrochemical zone.
- Whether BOI showed partiality toward BPC.
- Whether the petition for writs of certiorari, prohibition, and preliminary injunction is meritorious.