national economy and patrimony essay

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ARTICLE XII:National Economy and Patrimony of 1987 Philippine Constitution

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PREAMBLE We, the sovereign Filipino people, imploring the aid of Almighty God, in order to build a just and humane society, and establish a Government that shall embody our ideals and aspirations, promote the common good, conserve and develop our patrimony, and secure to ourselves and our posterity, the blessings of independence and democracy under the rule of law and a regime of truth, justice, freedom, love, equality, and peace, do ordain and promulgate this Constitution. ARTICLE I NATIONAL TERRITORY The national territory comprises the Philippine archipelago, with all the islands and waters embraced therein, and all other territories over which the Philippines has sovereignty or jurisdiction, consisting of its terrestrial, fluvial and aerial domains, including its territorial sea, the seabed, the subsoil, the insular shelves, and other submarine areas. The waters around, between, and connecting the islands of the archipelago, regardless of their breadth and dimensions, form part of the internal waters of the Philippines. ARTICLE II DECLARATION OF PRINCIPLES AND STATE POLICIES PRINCIPLES Section 1. The Philippines is a democratic and republican State. Sovereignty resides in the people and all government authority emanates from them. Section 2. The Philippines renounces war as an instrument of national policy, adopts the generally accepted principles of international law as part of the law of the land and adheres to the policy of peace, equality, justice, freedom, cooperation, and amity with all nations. Section 3. Civilian authority is, at all times, supreme over the military. The Armed Forces of the Philippines is the protector of the people and the State. Its goal is to secure the sovereignty of the State and the integrity of the national territory. Section 4. The prime duty of the Government is to serve and protect the people. The Government may call upon the people to defend the State and, in the fulfillment thereof, all citizens may be required, under conditions provided by law, to render personal, military or civil service. Section 5. The maintenance of peace and order, the protection of life, liberty, and property, and promotion of the general welfare are essential for the enjoyment by all the people of the blessings of democracy.

APOLINARIO MAJAIT

wilfrido villacorta

We, the sovereign Filipino people, imploring the aid of Almighty God, in order to build a just and humane society, and establish a Government that shall embody our ideals and aspirations, promote the common good, conserve and develop our patrimony, and secure to ourselves and our posterity, the blessings of independence and democracy under the rule of law and a regime of truth, justice, freedom, love, equality, and peace, do ordain and promulgate this Constitution.

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Article 12 Philippine Constitution 1987: National Economy and Patrimony

Article 12 philippine constitution 1987.

Table of Contents

Article 12 of the Philippine Constitution 1987 is about the National Economy and Patrimony. It has 22 sections.

Article 12 Section 1 Philippine Constitution

The goals of the national economy are a more equitable distribution of opportunities, income, and wealth; a sustained increase in the amount of goods and services produced by the nation for the benefit of the people; and an expanding productivity as the key to raising the quality of life for all, especially the underprivileged.

The State shall promote industrialization and full employment based on sound agricultural development and agrarian reform, through industries that make full and efficient use of human and natural resources, and which are competitive in both domestic and foreign markets. However, the State shall protect Filipino enterprises against unfair foreign competition and trade practices.

In the pursuit of these goals, all sectors of the economy and all regions of the country shall be given optimum opportunity to develop. Private enterprises, including corporations, cooperatives, and similar collective organizations, shall be encouraged to broaden the base of their ownership.

Article 12 Section 2 Philippine Constitution

All lands of the public domain, waters, minerals, coal, petroleum, and other mineral oils, all forces of potential energy, fisheries, forests or timber, wildlife, flora and fauna, and other natural resources are owned by the State. With the exception of agricultural lands, all other natural resources shall not be alienated. The exploration, development, and utilization of natural resources shall be under the full control and supervision of the State. The State may directly undertake such activities, or it may enter into co-production, joint venture, or production-sharing agreements with Filipino citizens, or corporations or associations at least sixty per centum of whose capital is owned by such citizens. Such agreements may be for a period not exceeding twenty-five years, renewable for not more than twenty-five years, and under such terms and conditions as may be provided by law. In cases of water rights for irrigation, water supply, fisheries, or industrial uses other than the development of water power, beneficial use may be the measure and limit of the grant.

The State shall protect the nation’s marine wealth in its archipelagic waters, territorial sea, and exclusive economic zone, and reserve its use and enjoyment exclusively to Filipino citizens.

The Congress may, by law, allow small-scale utilization of natural resources by Filipino citizens, as well as cooperative fish farming, with priority to subsistence fishermen and fishworkers in rivers, lakes, bays, and lagoons.

The President may enter into agreements with foreign-owned corporations involving either technical or financial assistance for large-scale exploration, development, and utilization of minerals, petroleum, and other mineral oils according to the general terms and conditions provided by law, based on real contributions to the economic growth and general welfare of the country. In such agreements, the State shall promote the development and use of local scientific and technical resources.

The President shall notify the Congress of every contract entered into in accordance with this provision, within thirty days from its execution.

See also: Article 11 Philippine Constitution

Article 12 Section 3 Philippine Constitution

Lands of the public domain are classified into agricultural, forest or timber, mineral lands, and national parks. Agricultural lands of the public domain may be further classified by law according to the uses which they may be devoted. Alienable lands of the public domain shall be limited to agricultural lands. Private corporations or associations may not hold such alienable lands of the public domain except by lease, for a period not exceeding twenty-five years, renewable for not more than twenty-five years, and not to exceed one thousand hectares in area. Citizens of the Philippines may lease not more than five hundred hectares, or acquire not more than twelve hectares thereof by purchase, homestead, or grant.

Taking into account the requirements of conservation, ecology, and development, and subject to the requirements of agrarian reform, the Congress shall determine, by law, the size of lands of the public domain which may be acquired, developed, held, or leased and the conditions therefor.

Article 12 Section 4 Philippine Constitution

The Congress shall, as soon as possible, determine by law the specific limits of forest lands and national parks, marking clearly their boundaries on the ground. Thereafter, such forest lands and national parks shall be conserved and may not be increased nor diminished, except by law. The Congress shall provide, for such period as it may determine, measures to prohibit logging in endangered forests and watershed areas.

Article 12 Section 5 Philippine Constitution

The State, subject to the provisions of this Constitution and national development policies and programs, shall protect the rights of indigenous cultural communities to their ancestral lands to ensure their economic, social, and cultural well-being.

The Congress may provide for the applicability of customary laws governing property rights or relations in determining the ownership and extent of ancestral domain.

Article 12 Section 6 Philippine Constitution

The use of property bears a social function, and all economic agents shall contribute to the common good. Individuals and private groups, including corporations, cooperatives, and similar collective organizations, shall have the right to own, establish, and operate economic enterprises, subject to the duty of the State to promote distributive justice and to intervene when the common good so demands.

Article 12 Section 7 Philippine Constitution

Save in cases of hereditary succession, no private lands shall be transferred or conveyed except to individuals, corporations, or associations qualified to acquire or hold lands of the public domain.

Article 12 Section 8 Philippine Constitution

Notwithstanding the provisions of Section 7 of this Article, a natural-born citizen of the Philippines who has lost his Philippine citizenship may be a transferee of private lands, subject to limitations provided by law.

Article 12 Section 9 Philippine Constitution

The Congress may establish an independent economic and planning agency headed by the President, which shall, after consultations with the appropriate public agencies, various private sectors, and local government units, recommend to Congress, and implement continuing integrated and coordinated programs and policies for national development.

Until the Congress provides otherwise, the National Economic and Development Authority shall function as the independent planning agency of the government.

Article 12 Section 10 Philippine Constitution

The Congress shall, upon recommendation of the economic and planning agency, when the national interest dictates, reserve to citizens of the Philippines or to corporations or associations at least sixty per centum of whose capital is owned by such citizens, or such higher percentage as Congress may prescribe, certain areas of investments. The Congress shall enact measures that will encourage the formation and operation of enterprises whose capital is wholly owned by Filipinos.

In the grant of rights, privileges, and concessions covering the national economy and patrimony, the State shall give preference to qualified Filipinos.

The State shall regulate and exercise authority over foreign investments within its national jurisdiction and in accordance with its national goals and priorities.

Article 12 Section 11 Philippine Constitution

No franchise, certificate, or any other form of authorization for the operation of a public utility shall be granted except to citizens of the Philippines or to corporations or associations organized under the laws of the Philippines at least sixty per centum of whose capital is owned by such citizens, nor shall such franchise, certificate, or authorization be exclusive in character or for a longer period than fifty years. Neither shall any such franchise or right be granted except under the condition that it shall be subject to amendment, alteration, or repeal by the Congress when the common good so requires. The State shall encourage equity participation in public utilities by the general public. The participation of foreign investors in the governing body of any public utility enterprise shall be limited to their proportionate share in its capital, and all the executive and managing officers of such corporation or association must be citizens of the Philippines.

Article 12 Section 12 Philippine Constitution

The State shall promote the preferential use of Filipino labor, domestic materials and locally produced goods, and adopt measures that help make them competitive.

Article 12 Section 13 Philippine Constitution

The State shall pursue a trade policy that serves the general welfare and utilizes all forms and arrangements of exchange on the basis of equality and reciprocity.

See also: Article 7 Section 18 Philippine Constitution

Article 12 Section 14 Philippine Constitution

The sustained development of a reservoir of national talents consisting of Filipino scientists, entrepreneurs, professionals, managers, high-level technical manpower and skilled workers and craftsmen in all fields shall be promoted by the State. The State shall encourage appropriate technology and regulate its transfer for the national benefit.

Article 12 Section 15 Philippine Constitution

The Congress shall create an agency to promote the viability and growth of cooperatives as instruments for social justice and economic development.

Article 12 Section 16 Philippine Constitution

The Congress shall not, except by general law, provide for the formation, organization, or regulation of private corporations. Government-owned or controlled corporations may be created or established by special charters in the interest of the common good and subject to the test of economic viability.

Article 12 Section 17 Philippine Constitution

In times of national emergency, when the public interest so requires, the State may, during the emergency and under reasonable terms prescribed by it, temporarily take over or direct the operation of any privately owned public utility or business affected with public interest.

Article 12 Section 18 Philippine Constitution

The State may, in the interest of national welfare or defense, establish and operate vital industries and, upon payment of just compensation, transfer to public ownership utilities and other private enterprises to be operated by the Government.

Article 12 Section 19 Philippine Constitution

The State shall regulate or prohibit monopolies when the public interest so requires. No combinations in restraint of trade or unfair competition shall be allowed.

Article 12 Section 20 Philippine Constitution

The Congress shall establish an independent central monetary authority, the members of whose governing board must be natural-born Filipino citizens, of known probity, integrity, and patriotism, the majority of whom shall come from the private sector. They shall also be subject to such other qualifications and disabilities as may be prescribed by law. The authority shall provide policy direction in the areas of money, banking, and credit. It shall have supervision over the operations of banks and exercise such regulatory powers as may be provided by law over the operations of finance companies and other institutions performing similar functions.

Until the Congress otherwise provides, the Central Bank of the Philippines, operating under existing laws, shall function as the central monetary authority.

Article 12 Section 21 Philippine Constitution

Foreign loans may only be incurred in accordance with law and the regulation of the monetary authority. Information on foreign loans obtained or guaranteed by the Government shall be made available to the public.

See also: Article 6 Indian Constitution 1949

Article 12 Section 22 Philippine Constitution

Acts which circumvent or negate any of the provisions of this Article shall be considered inimical to the national interest and subject to criminal and civil sanctions, as may be provided by law.

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Philippines » General Information » The 1987 Constitution of the Republic of the Philippines » Article XII: National Economy and Patrimony (The 1987 Constitution of the Republic of the Philippines)

Article XII:

National economy and patrimony, (the 1987 constitution of the republic of the philippines).

The goals of the national economy are a more equitable distribution of opportunities, income, and wealth; a sustained increase in the amount of goods and services produced by the nation for the benefit of the people; and an expanding productivity as the key raising the quality of life for all, especially the underprivileged.

The State shall promote industrialization and full employment based on sound agricultural development and agrarian reform, through industries that make full and efficient use of human and natural resources, and which are competitive in both domestic and foreign markets.  However, the State shall protect Filipino enterprises against unfair foreign competition and trade practices.

In the pursuit of these goals, all sectors of the economy and all regions of the country shall be given optimum opportunity to develop.  Private enterprises, including corporations, cooperatives, and similar collective organizations, shall be encouraged to broaden the base of their ownership.

All lands of the public domain, waters, minerals, coal, petroleum, and other mineral oils, all forces of potential energy, fisheries, forests or timber, wildlife, flora and fauna, and other natural resources are owned by the State.  With the exception of agricultural lands, all other natural resources shall not be alienated.  The exploration, development, and utilization of natural resources shall be under the full control and supervision of the State.  The State may directly undertake such activities, or it may enter into co-production, joint venture, or production-sharing agreements with Filipino citizens, or corporations or associations at least sixty per centum of whose capital is owned by such citizens.  Such agreements may be for a period not exceeding twenty-five years, renewable for not more than twenty-five years, and under such terms and conditions as may be provided by law.  In cases of water rights for irrigation, water supply, fisheries, or industrial uses other than the development of water power, beneficial use may be the measure and limit of the grant.

The State shall protect the nation's marine wealth in its archipelagic waters, territorial sea, and exclusive economic zone, and reserve its use and enjoyment exclusively to Filipino citizens.

The Congress may, by law, allow small-scale utilization of natural resources by Filipino citizens, as well as cooperative fish farming, with priority to subsistence fishermen and fishworkers in rivers, lakes, bays, and lagoons.

The President may enter into agreements with foreign-owned corporations involving either technical of financial assistance for large-scale exploration, development, and utilization of minerals, petroleum, and other mineral oils according to the general terms and conditions provided by law, based on real contributions to the economic growth and general welfare of the country.  In such agreements, the State shall promote the development and use of local scientific and technical resources.

The President shall notify the Congress of every contract entered into in accordance with this provision, within thirty days from its execution.

Lands of the public domain are classified into agricultural, forest or timber, mineral lands, and national parks.  Agricultural lands of the public domain may be further classified by law according to the uses which they may be devoted.  Alienable lands of the public domain shall be limited to agricultural lands.  Private corporations or associations may not hold such alienable lands of the public domain except by lease, for a period not exceeding twenty-five years, renewable for not more than twenty-five years, and not to exceed one thousand hectares in area.  Citizens of the Philippines may lease not more than five hundred hectares, or acquire not more than twelve hectares thereof by purchase, homestead, or grant.  Taking into account the requirements of conservation, ecology, and development, and subject to the requirements of agrarian reform, the Congress shall determine, by law, the size of lands of the public domain which may be acquired, developed, held, or leased and the conditions therefor.

The Congress shall, as soon as possible, determine by law the specific limits of forest lands and national parks, marking clearly their boundaries on the ground.  Thereafter, such forest lands and national parks shall be conserved and may not be increased nor diminished, except by law.  The Congress shall provide, for such period as it may determine, measures to prohibit logging in endangered forests and watershed areas.

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The Latest Attempt at Charter Change in the Philippines: Prospects and Concerns

The Philippine Congress recently passed a resolution paving the way to convene a constitutional convention. Proponents argue that amending "economic provisions" in the Constitution will attract foreign investment, while critics cite the lack of empirical evidence for this claim and potential exploitation of natural resources and Indigenous lands. Amid opposition from the President, Senate, and business community, questions emerge about the ambiguous motivations for invocating a convention with an undefined mandate. Can heightened public awareness influence the future of this process? – writes Dante Gatmaytan

Introduction

The Philippine Constitution is 36 years old. It was adopted in 1987 — a year after Ferdinand E. Marcos was deposed as president. Marcos was elected into office two times. When his second term was about to end in 1973, he maneuvered an ongoing constitutional convention that resulted in a shift to a parliamentary form of government in the 1973 Constitution, allowing him to assume leadership of the country as prime minister . Marcos stayed in power for almost 21 years under various constitutional configurations until the People Power Revolution resulted in his exile in 1986.

After the revolution, the 1986 Freedom Constitution was promulgated, followed by the current 1987 Constitution, which (re-)established a presidential system of government. Now, almost 40 years later, on 14 March 2023, lawmakers passed a bill with an overwhelming majority of 301 to 7 with no abstentions. This resolution, which awaits passage by the Senate, paves the way for the convening of a constitutional convention and has reopened the contentious debate on the wisdom (or not) of amending the fundamental charter.

Previous attempts to amend the Constitution

This is the latest attempt of many to amend the Constitution. Almost every post-Marcos administration has made such an attempt, but none have been successful . Previous attempts to amend the Constitution were anchored in creating a unicameral system of government—an effort that understandably met resistance from the Senate.

There were other attempts to amend the Constitution that barely concealed the goal of lifting term limits. Civil society and the political opposition were alert to these designs and managed to thwart these attempts by politicians to stay in power.

In public consciousness, campaigns to amend the Constitution are now equated with attempts by elected officials to perpetuate themselves in power . . .

In public consciousness, campaigns to amend the Constitution are now equated with attempts by elected officials to perpetuate themselves in power—a response to Marcos’ successful replacement of the fundamental charter in 1973.

More recent attempts to amend the Constitution are, as the present one is, ostensibly designed to amend or remove “economic provisions” of the Constitution. The argument posits that certain provisions of the Constitution, such as those restricting ownership of certain industries to Filipinos, deter foreign investments .

Issues and Concerns

The latest attempt at amending the Constitution is not without its own set of concerns. First, neither the President nor the Senate has expressed support for any campaign to amend the Constitution. The President said that constitutional amendment was not his priority , while the Senate President, as of writing, has stated that the project  is a waste of time as the Senate does not have the needed votes to pass it. He also said that the amendment will derail the enactment of priority legislative measures. Second, business groups have urged lawmakers to reconsider their bid for a constitutional convention, saying that it is a “potentially disruptive proposal” that may drive away investors and mute the gains of the government’s economic reforms . Third, proponents of constitutional amendments cannot point to any study supporting the view that certain provisions of the Constitution deter the inflow of foreign direct investments.

Fourth, the proposal calls for a “hybrid” constitutional convention because there would be a combination of elected and appointed delegates. However, a hybrid constitutional convention does not conform with the Constitution, which provides that, “ Any amendment to, or revision of, this Constitution may be proposed by: (1) The Congress, upon a vote of three-fourths of all its Members; or (2) A constitutional convention.” Amendments can also be proposed via citizens’ initiative.

The framers of the Constitution understood that the delegates to a convention would be elected and not appointed . . .

While the Constitution is so broadly written that it does not appear to prohibit a hybrid constitutional convention, the framers of the Constitution understood that the delegates to a convention would be elected and not appointed, as this exchange between Commissioners from the Records of the Constitutional Commission on 9 July 1986 shows:

MR. MAAMBONG: I am following up the sponsor's answer that when we talk of constitutional convention, we are talking of elective delegates to the constitutional convention. In other words, it negates the authority of the legislature to just name delegates to the constitutional convention without calling an election. MR. SUAREZ: That is very obvious, Madam President. MR. MAAMBONG: Thank you, Madam President. Since the legislature could not name delegates without calling an election, it also goes without saying that the legislature cannot delegate the power to somebody for that authority to name delegates to the constitutional convention? MR. SUAREZ: The Gentleman is right.

There is nothing in the Constitution that suggests a constitutional convention can be filled by appointment: a hybrid convention will therefore certainly invite litigation.

Fifth, there is no definition of “economic provisions” in the Constitution. So while supporters of constitutional amendment may be thinking of restrictions on the ownership and management of mass media , the operation of public utilities , and the practice of all professions (all of which have restrictions in the Constitution), the fact is that a constitutional convention can extend other parts of the Constitution such as the extent of the participation of foreigners in the extraction of resources.

Presently, Article XII on “National Economy and Patrimony” contains restrictions on the participation of foreign corporations in the extractive industry. For example, part of Article XII of the Constitution reads: “ The State shall protect the nation's marine wealth in its archipelagic waters, territorial sea, and exclusive economic zone, and reserve its use and enjoyment exclusively to Filipino citizens.” The Constitution also allows the president to enter agreements with foreign-owned corporations regarding the development, extraction, and utilization of minerals and oil. The Convention, in theory, may opt to open the exploitation of the Philippines’ marine wealth, the territorial sea, and the exclusive economic zone to other countries. It may also open small-scale extraction to foreign corporations.

Amendments could water down protection of the rights of Indigenous peoples to their ancestral lands . . .

Amendments could water down protection of the rights of Indigenous peoples to their ancestral lands, presently protected in the same Article on “National Economy and Patrimony” . Section 5 obliges the state, with carve outs for national development policies, to “protect the rights of Indigenous cultural communities to their ancestral lands to ensure their economic, social, and cultural well-being.” Further, Congress “may provide for the applicability of customary laws governing property rights or relations in determining the ownership and extent of ancestral domain.”

A heartless constitutional convention, oblivious to the colonizers’ history of oppression of Indigenous communities, could remove the recognition or protection of ancestral domains to facilitate corporate intrusions into these lands. Foreign and local corporations may be given easier access to natural resources within ancestral domains.

In short, amending “economic provisions” of the Constitution is not a benign crusade that simply attracts investments: it could be used to open up Philippine resources to foreign corporations at the expense of protecting the rights of marginalized Filipinos as presently mandated by the Constitution.

It is too early to say if this latest attempt to amend the Constitution will succeed. There is a possibility that those feigning disinterest are simply testing the waters to gauge public support for the project. When it becomes evident that there is little popular resistance, political players may express support for the amendment project. When the interests of the political players align, the amendment process will no doubt move faster. 

The lack of empirical evidence to justify removing economic limitations fuels views that these are a pretext to opening the entire Constitution to change. Politicians, however, do not seem to care. The near-unanimous vote in the House of Representatives calling for a constitutional convention indicates two things: first, there is no meaningful political opposition to speak of, and second, there is little critical thinking that can be expected from elected officials. Unless the public is properly apprised of the implications of amending the Constitution, they are not likely to be more critical than their elected representatives. If the people swallow the narrative crafted by the House of Representatives —that the goal of this project limits its Charter amendments to the “restrictive” economic provisions of the basic law “in the hope that the changes would pave the way for the country to attract more foreign investments ”—then there is a possibility that they will blindly ratify any proposal that will come from the constitutional convention.

Dante Gatmaytan is a Professor at the University of the Philippines, College of Law.

♦ ♦ ♦ 

Suggested citation:  Dante Gatmaytan , ‘The Latest Attempt at Charter Change in the Philippines: Prospects and Concerns’,  ConstitutionNet , International IDEA, 31 March 2023, https://constitutionnet.org/news/latest-attempt-charter-change-philippines-prospects-and-concerns

Click here for updates on constitutional developments in the Philippines . 

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Today’s front page, Thursday, April 11, 2024

Filipino First Policy

• Atty. Lorna Patajo-Kapunan
• June 21, 2015
• 3 minute read

In the said case, Government Service Insurance System (GSIS) sold through public bidding 30 percent to 51 percent of the issued and outstanding shares of Manila Hotel Corp. (MHC) pursuant to the privatization program of the government. There were only two bidders which participated. Manila Prince Hotel Corp. (Manila Prince), a Filipino corporation, offered to buy 51 percent of the MHC, or 15,300,000 shares, at P41.58 per share. Renong Berhad, a Malaysian firm, bid for the same number of shares at P44 per share, or P2.42 more than the bid of Manila Prince. Pending the declaration of Renong Berhad as the winning bidder, Manila Prince wrote a letter to the GSIS and matched the bid price of P44  per share tendered by Renong Berhad. It also sent a manager’s check for P33 million as bid security to match Renong Berhad’s bid. However, the GSIS did not act on its letter and refused to accept the same. Thus, Manila Prince went to the SC and filed a Petition for Prohibition and Mandamus, invoking the above-mentioned provision of the 1987 Constitution. Manila Prince sought to prohibit MHC from perfecting and consummating the sale to Renong Berhad. Manila Prince maintained that since the Manila Hotel is part of the national economy and patrimony, it should be preferred over Renong Berhad after it has matched the latter’s bid offer, in accordance with the Filipino First Policy enshrined in the aforesaid provision of the Constitution. The GSIS, on the other hand, argued that Manila Hotel does not fall under the term national patrimony.

In deciding for Manila Prince, the SC ruled that the term patrimony pertains to heritage and that Manila Hotel has become a landmark—a living testimonial of Philippine heritage. While it was restrictively an American hotel when it first opened in 1912, it immediately evolved to be truly Filipino. Formerly a concourse for the elite, it has since then become the venue of various significant events which have shaped Philippine history. Dubbed as the Official Guest House of the Philippine Government, it plays host to dignitaries and official visitors who are accorded the traditional Philippine hospitality. Moreover, the SC emphasized that for more than eight decades, the Manila Hotel has bore mute witness to the triumphs and failures, loves and frustrations of the Filipinos; its existence is impressed with public interest; its own historicity associated with our struggle for sovereignty, independence and nationhood. Verily, Manila Hotel has become part of our national economy and patrimony.

The SC held that privatization of a business asset for purposes of enhancing its business viability and preventing further losses, regardless of the character of the asset, should not take precedence over nonmaterial values. A commercial, nay even a budgetary, objective should not be pursued at the expense of national pride and dignity. The Manila Hotel or, for that matter, 51 percent of the MHC, is not just any commodity to be sold to the highest bidder solely for the sake of privatization. The hotel is not an ordinary piece of property in a commercial district, but a historic relic that has hosted many of the most important events in the short history of the Philippines as a nation. This hotel has played and continues to play a significant role as an authentic repository of 20th-century Philippine history and culture. In this sense, according to the SC, has become truly a reflection of the Filipino soul—a place with a history of grandeur; a most historical setting that has played a part in the shaping of a country.

In view of the foregoing, the SC directed the GSIS to cease and desist from selling 51 percent of the shares of MHC to Renong Berhad, and to accept the matching bid of Manila Prince to purchase the subject 51 percent of the shares of MHC at P44 per share.

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Philippine Constitution (1987): Full Text

Wnen the late Pres. Ferdinand E. Marcos was deposed, the next president, Pres. Corazon C. Aquino, promulgated on 25 February 1986 a Provisional (Freedom) Constitution. Immediately thereafter, Pres. Aquino created a Constitutional Commission to frame a new constitution, which was ratified in a plebiscite on 2 February 1987. This is also the effectivity date of the Constitution of the Philippines.

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Robin Padilla submits proposed amendments to economic provisions of 1987 Constitution

Sen. Robinhood C. Padilla  (Joseph Vidal/Senate PRIB)

MANILA, Philippines — Sen. Robinhood Padilla, chairman of the upper chamber’s panel on constitutional amendments, on Friday released his unnumbered committee report proposing amendments to economic provisions of the 1987 Constitution through a constituent assembly.

“To accelerate economic growth and fulfill its international commitment, the Philippines must amend its Constitution by removing restrictive economic provisions to allow foreign businesses to invest in a more conducive landscape directly,” a part of the report stated.

But there’s still a long way to go to get the proposal to the Senate plenary since only Padilla’s signature is so far affixed on the report

Listed below are the amendments sought by the Padilla-drafted committee report.

Article XII – National Economy and Patrimony

• The State may directly explore, develop, and utilize natural resources, or it may enter into co-production, joint venture, or production-sharing agreements with Filipino citizens or corporations or associations, at least 60 per centum of those whose capital is owned by such citizens unless otherwise provided by law. 
• Private corporations or associations may not hold such alienable lands of the public domain except by lease for a period not exceeding 25 years and not to exceed 1,000 hectares in the area unless otherwise provided by law. 
• Save in cases of hereditary succession; no private lands shall be transferred or conveyed except to individuals, corporations, or associations qualified to acquire or hold lands of the public domain unless otherwise provided by law. 
• Aliens to acquire private lands not exceeding 1,000 square meters in area
• Foreign-owned corporations to acquire rural private lands not exceeding five hectares in area
• The Congress shall, upon the recommendation of the economic and planning agency, and when the national interest dictates, reserve areas of investment to citizens of the Philippines or, unless otherwise provided by law , to corporations or associations at least 60 per centum of whose capital is owned by such citizens.
• No franchise, certificate, or any other form of authorization for the operation of a public utility shall be granted except to citizens of the Philippines or to corporations or associations organized under the laws of the Philippines, at least 60 per centum of whose capital is owned by such citizens unless otherwise provided by law. 
• Participation of foreign investors in the governing body of any public utility enterprise shall be limited to their proportionate share in its capital, and unless otherwise provided by law , all the executive and managing officers of such corporation or association must be citizens of the Philippines.

Article XIV – Education, Science and Technology, Arts, Culture and Sports

• Educational institutions, other than those established by religious groups and mission boards, shall be owned solely by citizens of the Philippines or corporations or associations at least 60 per centum of which is owned by such citizens, unless otherwise provided by law.
• The control and administration of educational institutions shall be vested in citizens of the Philippines, unless otherwise provided by law. 

Article XVI – General Provisions

• The ownership and management of mass media shall be limited to citizens of the Philippines, or to corporations, cooperatives or associations, wholly-owned and managed by such citizens, unless otherwise provided by law. 
• Only Filipino citizens or associations at least 70 per centum of the capital of which is owned by such citizens shall be allowed to engage in the advertising industry, unless otherwise provided by law.
• Participation of foreign investors in the governing body of entities in such industry shall be limited to their proportionate share in the capital thereof, and all the executive and managing officers of such entities must be citizens of the Philippines, unless otherwise provided by law. 

“The amendment to the Constitution is to allow higher foreign investment or capital in various economic activities that would generate jobs for the people, induce higher wages, improve performance of service sectors and reduce the cost of goods and services through economic competition, which are evident benefits gained by other countries that have eased restrictions to foreign direct investments,” the committee report noted.

While Padilla has remained resolute in the push for Charter change in the upper chamber, other senators have poured cold water on the bid, citing issues on timeliness and the need to reform the Constitution amid other pressing issues.

READ: How senators are dancing, or not, to the first Cha-cha under Marcos

Sen. Ronald “Bato” dela Rosa previously said they have accepted that the proposal will not mount enough support to bring it to the Senate floor.

He, however, said PDP-Laban members in the upper chamber – including himself, Padilla, Senators Francis Tolentino, and Bong Go – are likely to sign the committee report.

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