December 5, 2018 | 12:21 am
THE Supreme Court (SC)
voted unanimously, 13-0, to reject a claim by Palawan province for 40% of the
royalties of the Malampaya natural gas project, according to a Supreme Court
source who asked not to be identified.
The source said that
the court ruled that the Malampaya field was outside the province’s territory.
The ruling has yet to be
officially released.
The case stemmed from a
February 2009 petition which questioned the legality and constitutionality of
Executive Order (EO) 683-issued by former President and now Speaker Gloria
Macapagal-Arroyo in 2007 ordering the release of half of the disputed 40% share
of Palawan — claiming that it violates Republic Act No. 7169 or the Local
Government Code of 1991 and the Constitution’s guarantee of equitable sharing
of wealth.
The petitioners claimed
that neither the governor, congressmen, nor the Puerto Princesa mayor is
authorized to sign on behalf of the local government units (LGU) in the
province as the EO directs the release of the shares to the province and
congressional districts of Palawan as well as Puerto Princesa City.
They also argued that
the provisional implementation agreement (PIA), which will authorize the
release of the shares as stated in the EO, only discussed “net proceeds” but
the law stated that the shares of LGUs should be based on “gross collection.”
They claimed that the
local government code provides that any proceeds from national government
income should be directly released to the LGUs.
The national
government, through the Department of Energy, entered a service contract in
1990 with Shell Philippines Exploration B.V. and Occidental Philippines, Inc.
for what was thought to be the largest single investment in the country.
The project is expected
to raise $8 billion to $10 billion for the government.
The Malampaya gas field
is around 80 kilometers from the Palawan coastal.
The Palawan government
claims 40% of the proceeds of the project, citing the Local Government Code of
1991.
Ms. Arroyo in 2007
issued EO 683 which directed the release of half of the 40% of the funds to the
province and congressional districts of Palawan and Puerto Princesa City
through a PIA on condition that the funds are used immediately for development
projects in Palawan.
The petitioners
questioned the EO in the Court of Appeals but lost in 2008. They then elevated
the case to the SC in the following year. — Vann Marlo M. Villegas
No comments:
Post a Comment