Se. TG Guingona's Interpellation on BBL Substitute BILL

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WEDNESDAY, SEPTEMBER 2, 2015

OPENING OF SESSION

At 3:27 p.m., the Senate President, Hon. Franklin M. Drilon, called the session to order.

The President. The 17th session of the Senate in the Third Regular Session of the Sixteenth Congress is hereby called to

order.

Let us all stand for the opening prayer to be led by Sen. Sonny Angara.

Everybody rose for the prayer.

PRAYER

Senator Angara. Let us pray.

God of all goodness and of our nation, nagpapasalamat kami sa lahat ng biyayang patuloy Mong ipinagkakaloob sa aming bayan. Grant us the serenity and wisdom to fulfill the tasks that the Filipino people have entrusted to us. Never allow us to

ignore the poor and the underprivileged.

Gabayan po Ninyo kami sa bawat batas na aming ginagawa upang ito ay magdulot lamang ng kabutihan para sa lahat, kaginhawaan ng taumbayan at pagkakaisa ng buong bansa. Enlighten us whenever we are confused or uncertain and

embolden us so that we may continue to rise with conviction in every step of our journey.

Bigyan Mo po kami ng lakas ng loob sa mga sandaling kailangan naming protektahan ang karapatan ng bawat mamamayan lalo na ang mga kapus-palad at pinagkaitan ng tadhana. It is our prayer, Lord, that as we embrace our duties and responsibilities as legislators, may we always remember that we

are Your servants and the people’s servants so that every work that we do may give glory to You and our country.

Amen.

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ROLL CALL

The President. The Secretary will please call the roll.

The Secretary, reading:

Senator Juan Edgardo "Sonny" M. Angara..........................Present

Senator Paolo Benigno "Bam" A. Aquino IV…..……………… Senator Nancy Binay………………………………………………..Present

Senator Alan Peter Compañero S. Cayetano........................ Senator Pia S. Cayetano.......................................................Present Senator Miriam Defensor Santiago………………………………..

Senator Joseph Victor "JV" G. Ejercito…………………………Present Senator Juan Ponce Enrile……………………………………….Present

Senator Francis Joseph "Chiz" G. Escudero............................. Senator Jinggoy Ejercito Estrada……………………………………. Senator Teofisto L. Guingona III...........................................Present

Senator Gregorio B. Honasan...............................................Present Senator Manuel ―Lito‖ M. Lapid............................................ Present Senator Loren B. Legarda........................................................Present

Senator Ferdinand B. R. Marcos Jr……………………………. Present Senator Sergio R. Osmeña III....................................................

Senator Aquilino L. Pimentel III...............................................Present Senator Grace L. Poe………………………………………

Senator Ralph G. Recto..........................................................Present*

Senator Ramon Bong Revilla Jr................................................ Senator Vicente C. Sotto III.....................................................Present

Senator Antonio "Sonny" F. Trillanes IV................................Present Senator Cynthia A. Villar........................................................Present The President.........................................................................Present

The President. With 14 senators present, the Chair declares the

presence of a quorum.

The Majority Leader is recognized.

THE JOURNAL

Senator Angara. Mr. President, I move that we dispense with the

reading of the Journal of the 16th session, September 1, 2015, and consider

it approved.

The President. Is there any objection? [Silence] There being none,

the motion is approved.

Senator Angara. Mr. President, I move that we proceed to the

Reference of Business.



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The Secretary will read the Reference of Business.

REFERENCE OF BUSINESS

MESSAGES FROM THE HOUSE OF REPRESENTATIVES

The Secretary.

August 25, 2015

The Honorable FRANKLIN M. DRILON

President of the Senate GSIS Financial Center Pasay City 1308

Metropolitan Manila

Mr. President:

I have been directed to inform the Senate that the House

of Representatives on even date adopted Senate Bill No. 2834 as an amendment to House Bill No. 4397, entitled:

―AN ACT PROVIDING FOR THE MODERNIZATION

OF THE PHILIPPINE ATMOSPHERIC,

GEOPHYSICAL AND ASTRONOMICAL

SERVICES ADMINISTRATION (PAGASA) AND

APPROPRIATING FUNDS THEREFOR‖;

and Senate Bill No. 2762 as an amendment to House Bill No.

5822, entitled:

―AN ACT PREVENTING THE PROLIFERATION OF

WEAPONS OF MASS DESTRUCTION BY

REGULATING THE PROVISION OF

TECHNICAL ASSISTANCE, BROKERING,

FINANCING, AND TRANSPORTING SERVICES

IN RELATION TO THE MANAGEMENT OF

TRADE IN STRATEGIC GOODS‖

Respectfully yours,

(Sgd.) MARILYN B. BARUA-YAP

Secretary General

The President. To the Archives

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The Secretary.

August 26, 2015

The Honorable FRANKLIN M. DRILON

President of the Senate GSIS Financial Center Pasay City 1308

Metropolitan Manila

Mr. President:

I have been directed to inform the Senate that the House

of Representatives on even date adopted Senate Bill No. 2482 as an amendment to House Bill No. 5535, entitled:

―AN ACT MODERNIZING THE PRACTICE OF NAVAL

ARCHITECTURE IN THE PHILIPPINES AND

REPEALING FOR THE PURPOSE REPUBLIC

ACT NUMBERED FOUR THOUSAND FIVE

HUNDRED SIXTY-FIVE (R.A. NO. 4565),

OTHERWISE KNOWN AS THE NAVAL

ARCHITECTURE AND MARINE

ENGINEERING LAW‖

Respectfully yours, (Sgd.) MARILYN B. BARUA-YAP

Secretary General

The President. To the Archives

BILL ON FIRST READING

The Secretary. Senate Bill No. 2921, entitled

AN ACT AUTHORIZING THE SOCIAL SECURITY COMMISSION TO CONDONE PENALTIES ON DELINQUENT CONTRIBUTIONS AND TO DETERMINE THE MONTHLY

SALARY CREDITS, THE SCHEDULE AND RATE OF CONTRIBUTIONS AND THE RATE OF PENALTY ON

DELINQUENT CONTRIBUTIONS AND UNPAID LOAN AMORTIZATIONS, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 1161, AS AMENDED, OTHERWISE

KNOWN AS THE SOCIAL SECURITY LAW

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Introduced by Senator Escudero

The President. Referred to the Committees on Government

Corporations and Public Enterprises; and Labor, Employment and Human Resources Development

RESOLUTIONS

The Secretary. Proposed Senate Resolution No. 1551, entitled

RESOLUTION DIRECTING THE PROPER SENATE COMMITTEE

TO CONDUCT AN INQUIRY, IN AID OF LEGISLATION, ON THE COMMISSION ON AUDIT REPORT THAT THE OUTSTANDING BALANCE OF CASH ADVANCES OF

RETIRED, SEPARATED, OR DECEASED PERSONNEL OF THE PHILIPPINE NATIONAL POLICE REMAINED

UNLIQUIDATED AS OF THE END OF 2014 Introduced by Senator Defensor Santiago

The President. Referred to the Committee on Public Order and

Dangerous Drugs



TO CONDUCT AN INQUIRY, IN AID OF LEGISLATION, ON

THE 2014 COMMISSION ON AUDIT REPORT THAT THE PASIG RIVER REHABILITATION COMMISSION HAS FAILED IN ITS MANDATE TO RESTORE THE PASIG

RIVER’S WATER QUALITY IN THE PAST SIX YEARS

Introduced by Senator Defensor Santiago The President. Referred to the Committee on Environment and

Natural Resources



TO CONDUCT AN INQUIRY, IN AID OF LEGISLATION, ON THE COMMISSION ON AUDIT REPORT THAT THE QUEDAN AND RURAL CREDIT GUARANTEE

CORPORATION CONTINUES TO INCUR LOSSES FROM ITS OPERATIONS AMOUNTING TO P11.5 BILLION IN

2014 Introduced by Senator Defensor Santiago

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The President. Referred to the Committee on Agriculture and Food




THE COMMISSION ON AUDIT REPORT THAT THE BOARD OF CLAIMS UNDER THE DEPARTMENT OF JUSTICE FAILED TO RETURN MORE THAN P136

MILLION FROM THE ACCUMULATED VICTIMS COMPENSATION FUND TO THE NATIONAL TREASURY

IN 2014 Introduced by Senator Defensor Santiago

The President. Referred to the Committee on Justice and Human

Rights The Secretary. Proposed Senate Resolution No. 1555, entitled



THE COMMISSION ON AUDIT REPORT THAT SOME P460 MILLION IN FUND TRANSFERS MADE BY THE

PHILIPPINE COUNCIL FOR HEALTH RESEARCH AND DEVELOPMENT REMAINED OUTSTANDING AND/OR UNLIQUIDATED AS OF THE END OF 2014

Introduced by Senator Defensor Santiago

The President. Referred to the Committee on Science and Technology and Demography


RESOLUTION DIRECTING THE PROPER SENATE COMMITTEE TO CONDUCT AN INQUIRY, IN AID OF LEGISLATION, ON

THE COMMISSION ON AUDIT REPORT THAT COMBAT CLOTHING, EQUIPMENT AND AMMUNITIONS REMAINED UNDELIVERED TO THE PHILIPPINE ARMY

BY THE END OF 2014, THEREBY DEPRIVING THEM OF THE TIMELY USE THEREOF

The Secretary. Introduced by Senator Defensor Santiago

The President. Referred to the Committee on National Defense and Security

COMMITTEE REPORTS

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The Secretary. Committee Report No. 214, prepared and submitted jointly by the Committees on Trade, Commerce and Entrepreneurship;

Foreign Relations; and Finance on Senate Bill No. 2922, with Senators Guingona III, Trillanes IV, Ejercito Estrada and Aquino IV as authors

thereof, entitled

AN ACT CREATING THE PHILIPPINE TRADE REPRESENTATIVE

OFFICE AND APPROPRIATING FUNDS THEREFORE

recommending its approval in substitution of Senate Bill Nos. 1084, 1149

and 1404, taking into consideration House Bill No. 5076.

Sponsor: Senator Aquino IV The President. To the Calendar for Ordinary Business

The Secretary. Committee Report No. 215, prepared and submitted

jointly by the Committees on Agriculture and Food; Ways and Means; and Justice and Human Rights on Senate Bill No. 2923, with Senators Ejercito and Villar as authors thereof, entitled

AN ACT DECLARING LARGE-SCALE AGRICULTURAL

SMUGGLING AS ECONOMIC SABOTAGE, PRESCRIBING

PENALTIES THEREFOR AND FOR OTHER PURPOSES

recommending its approval in substitution of Senate Bill Nos. 2082 and 2765.

Sponsor: Senator Villar The President. To the Calendar for Ordinary Business

The Secretary. Committee Report No. 216, prepared and submitted

jointly by the Committees on Civil Service, Government Reorganization and Professional Regulation; and Finance on Senate Bill No. 2924, with Senators Trillanes IV, Villar and Legarda as authors thereof, entitled

AN ACT REGULATING THE REGISTRATION, LICENSURE, AND

PRACTICE OF OCCUPATIONAL THERAPY, PROVIDING FUNDS THEREFOR AND FOR OTHER RELATED PURPOSES

recommending its approval in substitution of Senate Bill No. 907.

Sponsor: Senator Trillanes IV

The President. To the Calendar for Ordinary Business

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The Secretary. Committee Report No. 217, prepared and submitted jointly by the Committees on Civil Service, Government Reorganization and

Professional Regulation; and Finance on Senate Bill No. 2925, with Senators Ejercito Estrada, Trillanes IV and Legarda as authors thereof, entitled

AN ACT REGULATING THE PRACTICE OF SPEECH LANGUAGE

PATHOLOGY IN THE PHILIPPINES, PROVIDING FUNDS

THEREFOR AND FOR OTHER PURPOSES

recommending its approval in substitution of Senate Bill No. 875.

Sponsor: Senator Trillanes IV

The President. To the Calendar for Ordinary Business


With the permission of the Chamber, on our agenda today are a

number of measures. May the Chair request that we give priority to the

interpellation on Senate Bill No. 2894, this is the Bangsamoro Bill, as we see

the sponsor is available and he wants to avail himself of the period of

interpellations. Senator Guingona is available. So, may the Chair request

that we give this priority.

SUSPENSION OF SESSION

Senator Angara. Mr. President, I move that we suspend the session

for one minute.

The President. Is there any objection? [Silence] There being none, the

session is suspended for one minute.

It was 3:37 p.m.

RESUMPTION OF SESSION

At 3:37 p.m., the session was resumed.

The President. The session is resumed.


Senator Angara. Mr. President, before we recognize the chairman of

the Committee on Local Government, Senator Marcos, for the interpellation,

may we just greet our colleague, Sen. Grace Poe, who is celebrating her

birthday tomorrow, September 3, 2015.

The President. Sen. Grace Poe, advance Happy Birthday!


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Senator Angara. Mr. President, I move that we suspend the session

for one minute to allow our members to greet our colleague.



It was 3:38 p.m.





ACKNOWLEDGMENT OF GUESTS

Senator Angara. Mr. President, we have some guests and may we

recognize them briefly: We have Congressman Henry Oaminal of Misamis

Occidental; we have the Bachelor of Science and Social Work students of the

Universidad de Manila; we have members of the Gender and Development

Council of Tabaco City, Albay, lead by Councilor Lourdes Berces.

We have guests of Senator Legarda from the National Commission on

Indigenous Peoples, Director Quilaman, Engr. Buasen, Atty. Madangeng,

Atty. Buenaobra, Rene Magnaye, Mr. Dingal.

Guests of Sen. Pia Cayetano from ARS PROGETTI, Engr. Dina

D'Ayala, Engr. Viola Fanciullaci, Arch. Patrizia Barruco; from the World

Bank, Ms. Lesley Cordero; from UST, Professor Eric Zerrudo; and from

DOST, Ms. Carmina Garcia.

I ask for their recognition, Mr. President.

The President. The presence of our guests is made of record.

MANIFESTATION OF SENATOR CAYETANO (P) (That the Invited Guests Are Technical People Who Will Help

Assess the Extent of Damages of Typhoon "Yolanda")

Senator Cayetano (P). Mr. President, just a quick manifestation.

The guests we have here are technical people that we have invited.

After our Bohol earthquake and typhoon "Yolanda", many of our historical

and heritage sites were destroyed. And, thus, DOT found it urgent that we

look into how we will address these issues, and, thus, with the World Bank

and UST, they have now brought in these experts to help us assess the

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situation. So, we welcome them to the Senate, Mr. President, because they

will be doing a great service to us with the assessments they will be doing

and the learning that they will be able to gather from this assessment

process. Thank you.

The President. Thank you, Sen. Pia Cayetano.


Senator Angara. Mr. President, we also have with us the Save our

Schools Network.

The President. The Save our Schools Network is recognized.

BILL ON SECOND READING S. No. 2894—Basic Law for the Bangsamoro Autonomous Region

(Continuation)

Senator Angara. Mr. President, with the consent of the Senate, I move

that we resume consideration of Senate Bill No. 2894 as reported out under

Committee Report No. 200.


resumption of consideration of Senate Bill No. 2894 is now in order.

Senator Angara. Mr. President, the parliamentary status is, we are

now in the period of interpellations.

I ask that the sponsor, Sen. Ferdinand R. Marcos Jr., be recognized.

The President. Senator Marcos is recognized as the principal

sponsor.

Senator Angara. Mr. President, I ask that Sen. Teofisto L. Guingona

III be recognized to interpellate on the measure.

The President. For the period of interpellations, Senator Guingona is

recognized.

Senator Guingona. Thank you, Mr. President.

Mr. President, the approach that I took in my review of the draft of the

BBL takes off from the following objectives:

First, to highlight the primacy of the Constitution as basis and

framework for the mandate of government in peace negotiations and in the

creation of the autonomous regions;

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Second, to acknowledge the nature, context and significance of the

draft BBL both as a legislative measure and the peace process instrument;

Third, to reiterate the need to maintain constitutionality, consistency

with the objectives of the signed agreement and the peace process and

clarity in the language; and

Fourth, to reflect lessons learned from experience in the history of the

peace process.

With the indulgence of the good Sponsor, may I ask a few questions?

Senator Marcos. Certainly, Mr. President, for the gentleman of

Mindanao, I yield.

Senator Guingona. Mr. President, Senate Bill No. 2408 like RA No.

9054 or the ARMM Law contain the Preamble simply defined--a Preamble is

an introductory statement of either a Constitution or a statute that usually

states the reasons for and the intent of the law.

In the substitute bill, it was deleted, Mr. President, may we know the

reason why it was deleted because we would also like to know if there is

anything that would be contrary to the Constitution in having a Preamble in

the proposed BBL.

The President. Before the sponsor answers. May I request our

colleagues to please take their sits because it is very difficult for the Chair to

listen to the interpellation. Can we request Senator Legarda, Senator Binay,

and Senator Villar? It is very difficult for the Chair to listen to the

interpellation because of the conversations going on on the Floor. Thank

you.

Yes, Senator Marcos.

Senator Marcos. Yes, thank you. As we all well know, one of the

concerns not only of legislators, the congressmen and senators, but also of

the general public in the entire process of crafting the Basic Law for

Bangsamoro Autonomous Region has been that it might be a step towards

separation, towards the secession of a large part of Mindanao from the

Republic of the Philippines. And one of the reasons that that is so is that

the draft BBL was written in the form of a Constitution with a Preamble and

again, the form as it was given to us it looked like a Constitution. That is

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why, I felt that since the Preamble is a statute, the Preamble is not

necessary and we took that away and we changed the form. It is now

sequentially numbered and that makes it very different from what a

Constitution would look like. This is just another one of those little efforts

that we have made, those little moves and changes that we have made

precisely to assure everybody that this is not a Constitution for a separate

sovereign state nor will it be used as a creation of an entity that will

eventually have the possibility of separating from the Republic of the

Philippines. So, it was a political gesture, I admit, but again, it is consistent

with legal practice and that statutes generally do not have a preamble. But

in any case, a great deal of the language that was found in the preamble can

be found in the body of the proposed law. So we did not lose anything in

terms of explaining the principles and concepts behind the basic law.

However, again, it is just a change that was decided upon precisely to

assure our people, the legislators and all those who are involved in this

process that this is not a constitution and we are not creating a new state

that will eventually separate from the Republic of the Philippines.

Senator Guingona. Yes, Mr. President, thank you for that. But as

the gentleman knows, a preamble is defined as an introductory statement

that states the reasons for and the intent of the law. It is not confined to the

constitution, it can also be found in statutes. Its predecessor, Republic Act

No. 9054, does have a preamble and it has not been found to be repugnant

to the Constitution. I guess, really, that is the strongest reason that it is not

repugnant to the Constitution to have a preamble within a statute.

Secondly, the gentleman stated that nothing is lost by not having a

preamble. On the converse, Mr. President, nothing was also lost if we have

a preamble. And we must remember that this is not a legal, technical

document, this is a political document that embodies some cultural

concepts and I think it would be best for the sake of clarity to start with a

statement for the reasons and intent of a law.

Senator Marcos. Mr. President, it may not be constitutionally

repugnant to have a preamble but that is not the reason why the preamble

was removed. It was not to satisfy any constitutional, to remedy any

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constitutional infirmity in having a preamble. As I had earlier stated, the

reason was that it was to provide assurance to all those who had expressed

misgivings about the entire process of writing a basic law, of creating a

further autonomous region which had a great deal more autonomy and had

a very different structure from ARMM. And again, I think it came out in the

hearings that one of the reasons that these concerns were raised was that

because the structure of the Bangsamoro government as originally proposed

is exactly the same as any federated state of Malaysia. In fact, the suspicion

was said, they have already created a federated state precisely as Malaysia

and maybe they intend to move it, separate from the republic and they will

fit right in as another federated state of Malaysia. Of course, I do not think

that that is the case. But again, it is a concern that was raised. And I

think, by making it very, very clear that this is not a state within a state that

we are creating, this is not a constitution that we are creating, and with the

form that we have chosen to use, I think that point has been very clearly

made. Thus, assuaging what fears other may have about the future of the

Bangsamoro Autonomous Region and the integrity of the Republic of the

Philippines.

I, of course, defer to the legal opinion of my colleague from Bukidnon.

I understand that it is a political document. But since it is a law, it is

primarily a legal document, perhaps a legal document to enforce or to

implement the political action of signing a peace agreement with rebel force.

So, precisely the reason that the preamble was removed was a political one.

And, it is one for us to be able to garner greater support for the passage of

the substitute bill where there are many assurances that the creation of the

Bangsamoro Autonomous Region is not a step that will move us in the

direction of the Bangsamoro autonomous region separating from the

Philippines and perhaps joining Malaysia. This is the fear that was raised

during the hearings and this is what we had tried to address.

Senator Guingona. Yes, Mr. President. What the gentleman said

about, that it is akin to something like Malaysia is a perception.

Senator Marcos. Actually, Mr. President, it is more than a

perception. If we look at the organization of the Federated States of

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Malaysia, it is exactly the same as the Federated States of Malaysia with the

parliament, with the chief minister, with an executive and the legislature,

with the wali. All of these things are exactly the same as the Federated

States of Malaysia. But be that as it may, again, it is an understandable

concern and it is something that we felt we needed to address.

Senator Guingona. If that would be the case, Mr. President, we are

now working with the committee report which has substantially altered the

original bill.

Senator Marcos. That is right. And those are the reasons for this

particular alteration, Mr. President.

Senator Guingona. Therefore, Mr. President, would the sponsor be

objecting to a preamble because of its wording in the bill? Or is he objecting

to the concept of having a preamble no matter what the wording is? So that

we can decouple the issues here.

Senator Marcos. As I have earlier said, many of the languages, the

explanations of the principles and concepts behind the writing of the basic

law from the preamble find itself also in the body of the substitute bill. So

that is the reason. And the reason that we did it, that will clearly indicate

that the language is not something that we found to be unacceptable or

objectionable but it was the form. Again, I wanted to remove every vestige of

a constitutional form from the Bangsamoro Basic Law precisely for the

reasons that I had earlier stated.

Senator Guingona. So then, Mr. President, the distinguished

sponsor does not even agree to the concept of a preamble in the Bangsamoro

Basic Law?

Senator Marcos. No. Well, it is not for me to agree or disagree. The

Bangsamoro Basic Law has a preamble and that is….

Senator Guingona. No, I mean the committee report. If an

amendment were made in the committee report, putting in a preamble,

would the sponsor object?

Senator Marcos. Yes, Mr. President, I would because that would

defeat the precise purpose of why we did it which, again, is to assure all

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observers, not only officialdom but also the general citizenry that we are not

creating and separating a state from the republic.

Senator Guingona. All right. Mr. President, since it is clear that the

gentleman is not in consonance with having a preamble no matter what the

wording would be in the Bangsamoro Basic Law, I would just like to point

out several things. First of all, as stated before, a preamble is a statement of

the reasons for law and the intent of the law. And the distinguished

Sponsor HAS agreeD that it is not repugnant to the Constitution to have a

preamble in a law.

Secondly, we already had a preamble in the ARMM Law. RA No. 9054

does have a preamble and that was not found to be constitutionally

repugnant nor the legislature at that time did see it fit that a preamble

would be placed there.

Lastly, we must remember that the distinguished Sponsor mentioned

that this is a statute and it is not a constitution. I would like to point out

that this is not a statute, this is an organic act. And in many respects, it is

unlike any ordinary statute. In the sense, we also know that the organic act

for autonomous region also requires the approval of the people in a

plebiscite and that is what our constitution provides. And the Constitution

itself recognizes that autonomous regions are sui generis.

Let me quote Article X, Section 1 of the Constitution which states, and

I quote: ―The territorial and political subdivisions of the Republic of the

Philippines are: (1) provinces (2) cities (3) municipalities, and (4) barangays.

So to say that an autonomous region is a political subdivision is not

accurate because there are only four categories of territorial and political

subdivisions in the Constitution: province, city, municipality and barangay.

The next sentence says, ―There shall be autonomous regions in

Muslim Mindanao and the Cordilleras as hereinafter provided.‖

This indicates, Mr. President, that autonomous regions are different

and that they are not subject to statute, they are subject to organic laws

which have to be ratified by the people in a plebiscite. And therefore, at the

proper time, in the future, I would like to.... for the re-inclusion of a

preamble in the final form of the Committee Report when we vote on it.

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Senator Marcos. Mr. President, I am not sure I understand because

the autonomous region still has a juridical personality and therefore that

makes it a political subdivision. Perhaps, as the gentleman has pointed out

it is different from all the other local government political subdivisions, the

cities, provinces, municipalities and barangays. But this we understand

terribly well simply because it is clear that a great deal, more autonomy has

been granted to the autonomous region especially the powers as stated in

the Constitution.

But once again, to return to the point that the gentleman has earlier

made, the reason the preamble was removed was not to remedy any kind of

constitutional infirmity. It was just precisely to assure everyone that this is

not a constitution for a sovereign state, this is a law that creates an

autonomous region and defines the powers that the government of that

autonomous region will have, as opposed to the powers that the national

government wields.

Again, that was the sole purpose. The constitutionality did not come

into it, did not really come into the reasoning that led to the removal of the

preamble.

If the gentleman will notice, beyond the removal of the preamble, we

have also made the numbering of the sections sequential and that, again,

was partially to ease our work. It was easier to find the different sections

and the different provisions. But, more to the point, it was also done to

remove any suspicion or any fear that we are writing a constitution for a

separate state.

Senator Guingona. Yes, Mr. President. I am not in disagreement that

we are not writing a constitution. But I would like to point out that we are

not writing an ordinary statute and I would like to state again that in Article

X, Section 1, there are only four kinds of territorial and political

subdivisions. Autonomous region is sui generis. It is governed by an organic

act.

Under Article X, Section 20, it says: "Within its territorial jurisdiction

and subject to the provisions of the Constitution and national laws, the

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organic act of the autonomous regions shall provide for legislative powers

over x x x", and it makes an enumeration.

The point being, even the Constitution itself states that the law

governing the autonomous region shall be called "organic act". Therefore, it

is proper and fitting for a Preamble, Mr. President. And, again, there has

already been a precedent. RA No. 9054 does have a Preamble.

Senator Marcos. Mr. President, allow me to point out that, precisely,

these assertions that this is not a political subdivision of the Republic of the

Philippines which feeds these fears that if it is not a political subdivision of

the Republic of the Philippines, then what is it? Is it a separate state? Is it a

sub-state? Is it a state within a state? If that is exactly the question that was

raised and that is what feeds that suspicion that this is the beginning of a

cessation or a separation from the Republic of the Philippines, then that is,

precisely, why, again, to come back to the point, we have tried to assuage

again, as I said, those fears.

Now, as to its being sui generis, there are many other….the Cordillera

Autonomous Region. There was an attempt to organize that but that does

not happen. But, again, in other countries, the United Kingdom comes to

mind, Spain also comes to mind, Canada comes to mind, where we have

such autonomous regions and so we can follow their example. But in each of

those cases that I have cited, they are still considered an organic part of the

political structure of those countries. And, again, I would be at a loss then

how to define or to describe or what to call the autonomous region if it is not

a political subdivision as part of the Republic. That would immediately

remove it from the national government, and that is exactly what we are

trying to avoid.

Senator Guingona. Again, Mr. President, the basis of my saying so

that they are autonomous regions, that is what we call them. They are not

territorial and political subdivisions but they are autonomous regions as

stated in the Constitution. And I would not have said so had they not been

stated in the Constitution. And the law that would govern them is called an

organic act as stated in the Constitution.

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Senator Marcos. Furthermore, Mr. President, the preamble is an

expression of the will of the people, as I understand it. The will of the people

has not yet been determined, and that will be determined by the plebiscite—

precisely, the purpose of having that plebiscite. And, therefore, perhaps we

can wait for the will of the people to be expressed properly before we take

upon ourselves to be able to express that will without having any

background, or any data, or any result of any plebiscite that will indicate

what that will of the people is.

Again, to go back to the point of political subdivision, then I would ask

the gentleman from Bukidnon, if it is not a political subdivision of the

Philippines, what is it?

Senator Guingona. It is an autonomous region recognized under

Article X of the Constitution of the Republic of the Philippines.

Senator Marcos. Very well, Mr. President. It that is the case, is it

still part of the national government?

Senator Guingona. Most definitely, Mr. President, most definitely.

Senator Marcos. Very well. See, these are the problems that arise

when we insist upon using the form of a Constitution and to make

assertions that they are separate somehow from the Philippines and to say

that they are different from all other local government units. Although it

may be true, it still is, in fact, a local government unit. Perhaps, it is a

different sort of local government unit than what we normally refer to, but,

nevertheless, we must be clear when we state that it is still.

Again, this all comes back to the fear and the suspicion that the

creation of the Bangsamoro Autonomous Region will be a first of separating

part of Mindanao from the Philippines.

Senator Guingona. Mr. President, precisely, I think it would be

helpful to have a preamble because it will prevent confusion, because a

preamble is a statement of intent. And if the gentleman is saying that there

are fears that it might not be part of the Philippines, it might be a first step,

then, let us state that it is not so in the preamble oo that we can explain the

nature of the Bangsamoro that it is not a separate state, that it is an

19

autonomous region recognized within the bounds of the Constitution,

explicitly recognized and mandated by the Constitution to be established.

Senator Marcos. To go back to the point….

The President. To the gentlemen on the Floor, I think the matter has

been sufficiently discussed. I think our colleagues fully understand both

sides. And at a certain point, the gentleman from Bukidnon can propose an

amendment, which is to reinstate the preamble, and the Sponsor, Senator

Marcos, can state his view. And at the end of the day, we will have to vote

on it.

So, unless there are other matters which the gentleman would want to

spread into the Record, may I suggest, only a suggestion, that we go to the

next topic.

Senator Guingona. Yes, Mr. President. I am in full agreement.

Senator Marcos. Thank you, Mr. President.


The President. All right, the gentleman will tackle other issues.

Senator Guingona.

Senator Guingona. Yes, Mr. President. The next issue I would like to

tackle is the matter, which we took up the last time--the matter of inland

waters.

I do remember, Mr. President, that I stated and I will state again for

reasons of clarity, that jurisdiction over inland waters had already been

given to the Autonomous Region in Muslim Mindanao under R.A. No. 9054,

Article III, Section 8, of which states that:

Subject to the provisions of the Constitution in this Organic Act, the Regional Government shall have the authority, power and right to explore,

develop and utilize the natural resources, including surface and sub-surface rights, inland and coastal waters xxx.

This has been taken away.

And also, I would like to point out that under Article X, Section 20 of

the Constitution, it states:

Within its territorial jurisdiction and subject to the provisions of this Constitution and national laws, the organic act of autonomous region shall

provide for legislative powers over natural resources.

20

And definitely, inland water is part of the natural resources.

Mr. President, I do remember that in the last interpellation that I had,

the distinguished sponsor stated that they took it away from ARMM, and I

pointed it out that it was already there in ARMM and they took it away and

they said that ARMM was a failed experiment that is why they took it away.

My question then would be: If ARMM is a failed experiment and here

we are trying to establish an autonomous region, does the good sponsor not

think that if something that is a failed experiment and we establish

something new, we should enhance its powers rather than diminish its

powers and jurisdiction? Because if the origin was a failed experiment and

we remove its powers and jurisdiction, are we not making it a surety that

would be doomed to failure by doing so? Does the sponsor not think that we

should enhance the autonomous region rather than diminish the powers of

an autonomous region subject to the conditions that they are not repugnant

to the Constitution and to the national laws of this land?

Senator Marcos. First of all, I would like to quote back Section 20 of

Article X of the Constitution which states:

―Within its territorial and subject to the provisions of this

Constitution and national laws, xxx‖.

I bring it up again simply because I come at this situation or this

problem from a different direction. We are not taking anything away from

anyone. We are making sure that the Local Government Code is enforced.

And that none of the powers and privileges that R.A. 7160 provides for to

local governments are diminished in any way, shape or form. And,

therefore, we maintain that those are the powers that will continue to be

accorded or provided to the local government units and that is the control

over municipal waters as it is defined in the Local Government Code.

Once again, should the Bangsamoro Parliament once the members are

elected and it is formed can then enact laws for the Bangsamoro

Autonomous Region which will be applicable on all the inland waters

consistent with the mandate as it is in the Constitution as it has been

quoted. So, I do not see this as taking away anything from any entity. I

merely see it as being very clear in preserving the powers, the privileges and

21

the functions of the local government units as specified in the Local

Government Code.

Now, what the Bangsamoro Parliament will choose to do over and

above that is really up to the Bangsamoro Parliament to do. And they can

enact those laws that are consistent with the Constitution and national

laws. And, again, that one national law which is particularly relevant in this

case is the Local Government Code. And, again, what I had hoped to do,

and I think we have been able to manage it, is to preserve, not to take away

anything, to preserve what already is provided for to the local governments

in the Local Government Code. Whatever else that the Bangsamoro

Parliament would choose to pass as a law to enhance that or to coordinate

or to help in the administration and management of inland waters, then

certainly the Bangsamoro Parliament will be free to do that and has the

power to do that.

The President. Question, Senator Marcos.

Senator Marcos. Yes, Mr. President.

The President. Can the Bangsamoro Parliament reduce the powers

of the local government over inland waters?

Senator Marcos. Not without amending the Local Government Code,

Mr. President.

The President. Therefore, the answer is no.

Senator Marcos. No, Mr. President.

The President. Just for the record.

Senator Guingona may proceed.

Senator Guingona. Yes, Mr. President. That would precisely be one

of the points that I would like to raise. That if we leave it to the

Bangsamoro Parliament, they are then subject to the limitations established

by national laws. They cannot transgress national laws. Therefore, I

think, we should already give them the jurisdiction over the preservation

and management of inland waters.

Mr. President, this point has been belabored, and I do not see my

distinguished colleague yielding to my point of view. Therefore, at the

22

proper time, I will just have to introduce an amendment and subject it to a

vote.

I would just like to point out that there are two important inland

waters that are closely, historically and culturally tied up with the

Bangsamoro. One would be Lake Lanao and the other is Liguasan Marsh,

200 hectares of marshland which is rumored to be rich in resources. And it

would be a tragedy if the Bangsamoro people were deprived of the

opportunity to participate in the bounties of the natural resources within

their inland waters.

Senator Marcos. Mr. President, I would just like to point out once

again that the inhabitants around the Liguasan Marsh and Lake Lanao

continue to be same inhabitants that they had always been. We are not

taking Lake Lanao and removing it from the Bangsamoro Region and bring it

to the Visayas. We are not taking the Liguasan Marsh away from the

Bangsamoro Region and taking it to Luzon. They remain there to be

enjoyed and the resources to be exploited by the same people who have been

inhabitants around both natural features for many hundreds of years, and

nothing will change in that regard.

Again, if the Bangsamoro government now chooses or decides that

they feel that the Bangsamoro government over and above the local

government units that represent the inhabitants of the different local

government units, over and above that that they feel that a share of the

administration or part of its management should be undertaken by the

Bangsamoro government, then certainly they have the power to pass a law

and to make that so.

I honestly do not see the conflict in connection with the ethnic groups

to those bodies of water. As I said, they will not go anywhere, they are still

there, and it is still the same people who will be enjoying the benefits of

those features. It does not remove anything from anyone. If the

Bangsamoro government chooses to take a share of that responsibility, then

they would certainly be welcome to do so.

The President. With the permission of Senator Guingona.

23

Can the good Sponsor elaborate a bit more because that last answer

seems to be in conflict with the previous answer to the question that the

Chair proposed. And that is, can the Bangsamoro Parliament reduce or

interfere with the powers of the local government under the Local

Government Code. But the second answer appears to be in conflict with

that previous answer. So, just for clarification, can the gentleman spread it

into the Record?

Senator Marcos. The management and administration of municipal

waters as laid out in the Local Government Code are not total, Mr.

President. And therefore, there remain a multitude of other functions that

the Bangsamoro government over and above those functions exercised by

the Local Government Code. Should they choose to do that, as I said, then

they can certainly pass a law and do precisely that.

The President. Can the gentleman give some specific examples?

Senator Marcos. I will have to go back and look at the details

precisely on the administration on that. I will come back to the Chair to

specify what exactly the Local Government Code says and what are the

options for possible legislation by the Bangsamoro Parliament.

The President. Thank you, Senator Guingona.


Well, as stated, Mr. President, it seems that we will not come into an

agreement here. At some point in time, I will introduce an amendment and

subject it to a vote.

I would just like to end this by saying that, nandoon na iyan sa RA

No. 9054, ibinigay na natin, ngayon gagawa tayo ng bagong batas para

palakasin ang autonomous region, pero imbes na pinapalakas ay

tinatanggal natin. Eh, talagang hindi magtatagumpay ang….

Senator Marcos. Mr. President, I would like to bring the gentleman’s

attention to Section 8, page 3 of the substitute bill where Section 8 is the

―Definition of Geographical Area of the Bangsamoro Autonomous Region. - The

geographical area refers to the land mass as well as the waters over which

the Bangsamoro Autonomous Region has jurisdiction.‖

24

We are not taking anything away from the Bangsamoro Autonomous

Region. The area of the Bangsamoro Autonomous Region shall remain a

part of the Philippines.

That is, I believe, clear enough. The entire area is under their

jurisdiction. But, again, we seek to preserve the functions of the local

government units. We are not taking anything away from any entity. What

we were trying to do is to preserve what the Local Government Code

provides to local government units. Anything over and above that is beyond

the scope of that description.

Senator Guingona. Then the gentleman would be in agreement then

to put in provisions that would clarify then, Mr. President.

Senator Marcos. Certainly. That is my hope that with the process

that we are undergoing--interpellation and the proposal of amendments--

that we will clarify and make very clear to everyone what exactly it is that we

are proposing, what exactly it is that we are intending to do.

As a matter of fact, Mr. President, a great deal of the work that was

done in writing the substitute bill was not to change any principles or

concepts, but to clarify simply many of the descriptions that were made in

terms of functions, in terms of government bodies, in terms of power-

sharing. All of these things have not changed radically but simply we have

clarified it and made it consistent with the Constitution, and made it

consistent with national law.

Senator Guingona. So to clarify, Mr. President, the gentleman is

stating that it has not been taken away from the autonomous region.

Senator Marcos. Certainly not. It would be physically impossible to

remove a lake from any place.

Senator Guingona. No, I mean, the legal jurisdiction. I am not

talking about….

Senator Marcos. They have jurisdiction of the entire Bangsamoro

Autonomous Region. We simply seek to achieve….

Senator Guingona. Including inland waters, Mr. President.

Senator Marcos. Yes, that is exactly what Section 8 says.

25

Senator Guingona. So, the gentleman is in agreement, Mr.

President. I just want a categorical….

Senator Marcos. The change that we have made is to remove it from

the exclusive powers of the Bangsamoro precisely because it is an implied

amendment of the Local Government Code.

Senator Guingona. So, the gentleman is amenable to….

Senator Marcos. We did not return it to the power of the national

government, we simply continue to keep it within the concurrent powers of,

in this case, the local governments and of the Bangsamoro region.

Senator Guingona. So, it seems we are making some progress here,

Mr. President. Then, the gentleman would be agreeable to some clarificatory

provisions which we could discuss at some future time.

Senator Marcos. Mr. President, anything that clarifies this rather

complex and sometimes confusing document would certainly be welcome.

Senator Guingona. Thank you for that, Mr. President. May I move to

the next point?

The President. Please proceed, Senator Guingona.

Senator Guingona. All right. Shari’ah high court, Mr. President, the

provision was deleted in the substitute Senate bill. From my review, I do not

see anything unconstitutional in retaining the Shari’ah high court.

Let me just read the pertinent provisions of the Constitution. Article

VIII, Section 1 of the Constitution states that: ―The Judicial power shall be

vested in one Supreme Court and in such lower courts as may be

established by law.‖ And, of course, ―by law‖ means laws passed by the

National Congress.

And in Article X, Section 18, it says that: ―xxxThe organic acts shall

likewise provide for special courts with personal, family, and property law

jurisdiction consistent with the provisions of the Constitution and national

laws.‖

Further, Republic Act No. 9054 or the ARMM Law mandated the

creation of a Shari’ah appellate court which is similar to the proposed

Bangsamoro Shari’ah high court.

Would the good sponsor let us know why those sections were deleted?

26

Senator Marcos. Mr. President, that was an attempt to streamline

the system because upon study of our experience with the Shari’ah justice

system in ARMM there were very few cases, and these could be handled by

the lower courts and it seems that it was not necessary to put in a higher

court with its nine justices. Because, again, the lower Shari’ah courts were

perfectly able to handle the caseload. So, it is just a streamlining. We could

even refer to it as a cost-cutting measure in a sense. But, in any case, that

is the reason that we removed the high court.

Senator Guingona. All right. So that is clear, Mr. President, then

there is no legal reason. It is only….

Senator Marcos. No, Mr. President.

Senator Guingona. It is only for purposes of practicality and

streamlining.

Senator Marcos. Yes, Mr. President. There wasn’t any principle that

we felt that we were trying to impose. It is simply looking at the history of

the Shari’ah courts and how much work it is that they had to do.

The total caseload for 2007, for example, was 602 cases divided

amongst 33 judges. In contrast, Metropolitan trial courts whose 66 judges

are less than 10% of the 799 RTC judges have to handle a case, so that is

close to 40% of the caseload of its RTC counterpart. So, we can see that as

compared to RTCs, this is a very light caseload.

Senator Guingona. So in that case, Mr. President, since the

gentleman has removed the Bangsamoro Shari’ah high court, decisions of

the Shari’ah district court and the Shari’ah circuit courts shall be appealed

to….

Senator Marcos. The Court of Appeals, Mr. President.

Senator Guingona. The Court of Appeals and the Supreme Court in

cases that are appropriate, Mr. President.

Senator Marcos. That would be the procedure, Mr. President.

Senator Guingona. All right, Mr. President. Although, I reserve

my….

The President. Just a question, with the permission of Senator

Guingona.

27

Senator Guingona. Yes, Mr. President.

The President. If there is a need to create more Shari’ah courts in

the future, who would have the authority to create these Shari’ah courts?

Senator Marcos. The creation of new courts….

The President. Just a moment, Senator Marcos. Yes, the Minority

Leader is recognized.

Senator Enrile. Mr. President, I am raising a question of quorum.

The President. All right. There is a roll call vote. Can we ask our

colleagues to come to the Floor and answer the roll?


In the meantime, the session is suspended for one minute just to

allow our colleagues to come to the Floor, if there is no objection. [There

was none.]

It was 4:30 p.m.




The Minority Leader has called for a quorum call, has called for a roll

call. The secretary is directed to call the roll to establish a quorum.

ROLL CALL

The President. The Secretary will please call the roll.

The Secretary, reading:

Senator Sonny Angara..............................................Present Senator Paolo Benigno ―Bam‖ Aquino IV...................Present

Senator Maria Lourdes Nancy S. Binay..................... Senator Alan Peter ―Compañero‖ S. Cayetano........... Senator Pia S. Cayetano............................................

Senator Miriam Defensor Santiago.............................. Senator Joseph Victor G. Ejercito...............................Present

Senator Juan Ponce Enrile.........................................Present Senator Francis Joseph G. Escudero..........................Present Senator Jinggoy Estrada.............................................

Senator Teofisto L. Guingona III..................................Present Senator Gregorio B. Honasan......................................

Senator Manuel ―Lito‖ M. Lapid................................... Senator Loren Legarda................................................. Senator Ferdinand "Bongbong" R. Marcos Jr.... ..........Present

Senator Sergio R. Osmeña III........................................

28

Senator Aquilino ―Koko‖ Pimentel III.............................Present Senator Grace Poe........................................................

Senator Ralph G. Recto.................................................Present Senator Ramon Bong Revilla Jr......................................

Senator Vicente C. Sotto III............................................Present Senator Antonio F. Trillanes IV......................................Present Senator Cynthia A. Villar...............................................Present

The President.................................................................Present

The President. There are 13 senators present, the Chair declares the

presence of a quorum.

The gentlemen on the Floor, Senator Marcos and Senator Guingona,

are once more recognized in the period of interpellations on the Bangsamoro

Basic Law.

Senator Marcos. Thank you, Mr. President.

To answer the question from the Chair as to the creation of additional

Shari’ah courts, Section 93 of the substitute bill states: ―Upon the

recommendation of the Bangsamoro Regional Government, Congress may

create additional Shari’ah courts in the Bangsamoro Autonomous Region

and apportion the jurisdiction of each of the Shari’ah circuit and district

courts.‖ That would be the mechanism, Mr. President.

Senator Drilon. So, it is the Congress which can create additional

Shari’ah courts upon the recommendation of the Bangsamoro Parliament?

Senator Marcos. Precisely so, Mr. President.

Senator Drilon. Thank you, Senator Marcos.

Senator Guingona. Mr. President.


Senator Guingona. Am I recognized? Thank you.

The President. Yes, thank you.

Senator Guingona. Yes, Mr. President, on the matter of the Shari’ah

courts, the point of the distinguished sponsor is well-taken for streamlining.

But, there is another point that should be taken into account and that

Shari’ah courts have a special jurisdiction. It is not just about the ability to

handle a case load, but to deal with the substance of the Shari’ah. The

closest that I could see as an analogy would be the Court of Tax Appeals.

Because taxation being a complex matter, Congress saw it fit to create a

29

Court of Tax Appeals when we could have done without the Court of Tax

Appeals with the Court of Appeals. But we did see it fit to bring up, to

create the Court of Tax Appeals, specifically because of the complexities of

the subject matter.

Now, were are faced with the matter of the Shari’ah and I can see that

justices of the Court of Appeals would be taken to task to be able to rule on

Shari’ah cases on appeal to them because of the complexity. It is not just

complex in terms of technical, but there are cultural and religious aspects to

this matter which the Court of Appeals justice may not be predisposed to

handle, Mr. President. And, therefore, I would liketo ask the distinguished

sponsor to take a look at that point.

Senator Marcos. Certainly. We actually conducted a study as to the

nature of the cases in the Shari’ah courts in ARMM. In ARMM there was an

appellate court and we are trying to determine if the cases, how many cases

were brought up to that appellate court and again, the nature of those cases

if they require a special training or special knowledge in the Shari’ah law.

Yes, we will look into that and we will provide the gentleman with that

information.

Senator Guingona. My last point on the Shari’ah court, Mr.

President, is that, even in the original bill of the BBL, it states that the

Shari’ah courts shall have appellate jurisdiction, shall have jurisdiction over

courts in the Bangsamoro. I would like to point out that PD No. 1083 that

created the Shari’ah courts, because of PD No. 1083, we have Shari’ah

courts outside the Bangsamoro. In fact, we have Shari’ah courts in

Kidapawan City, Zamboanga City, Cebu City and therefore, clearly these

courts are outside the Bangsamoro. And so if we are to bring back the

provision of the Shari’ah high courts, then we should give them jurisdiction

of Shari’ah courts over Shari’ah courts not only within the Bangsamoro but

all over the country.

Senator Marcos. Should there be the creation of an appellate court

or a high court, Shari’ah high court, then that would certainly be included.

But again, the question was asked as to whether or not there is a need for

30

that high court is something we can study further and we will make that

determination as to whether or not it could be found to be necessary.


The next point, Mr. President, is the Special Development Fund. I

understand it was deleted. May we know the reason why.

Senator Marcos. Again, it is a streamlining simplification in the

structure of the government. Why have a Special Development Fund? We

have all kinds of funds already going in. Should there be any fund that is

necessary, we can add it on to the other funds that are being given to the

Bangsamoro government. And simply because there was no need for it, we

did not see the need for it.

In the original draft bill, there was a Special Development Fund for

development purposes upon ratification of Bangsamoro Basic Law. All the

funds that are being given to the Bangsamoro by the national government,

all the funds that are being collected by the Bangsamoro government are

presumably for the operations of the government and furthermore for the

development of the Bangsamoro region. There does not seem to be any

particular reason for having a Special Development Fund. Besides, the

amount that is put aside for that fund is not minor. The amount equivalent

to ₱7 billion shall be allocated for the first year, following the ratification of

this law; beginning the second year, the development fund shall be in the

amount of ₱10 billion which shall be paid out to the Bangsamoro over five

years at the rate of ₱2 billion per year. So, I have no great objections to that

fund but there is no stated purpose for the existence of the fund. The

administration of that fund is also not clear. Again, I do not see the need. If

there needs to be additional funds for development, then the national

government can allocate such funds and say that this is required for the

accelerated development of the Bangsamoro region. Again, I could not see

the need to establish a separate fund for the funds of which are to be used

for the same purpose as all the other monies that are being given and being

collected by the Bangsamoro government.

Senator Guingona. Mr. President, the reasons given, I notice, are not

legal reasons. These are well-taken. My only response to that would be, we

31

all know that the area, which is now the area of Autonomous Region of

Muslim Mindanao, is one of the poorest regions in the country. One of the

poorest. And here were are, creating a new entity and we want it to succeed.

So, if we are to give them political autonomy, we must also give them the

financial and economic wherewithal so that they can succeed. For, after all,

their success will be our success and the success of the country as a whole.

So, Mr. President, would the gentleman have any objections to

returning it and adding provisions so that we can have transparency and

accountability in the utilization of such Special Development Fund?

Senator Marcos. Again, let me read the entirety of the section that

creates the Special Development Fund: "The central government shall

provide for a Special Development Fund to the Bangsamoro for

rehabilitation and development purposes upon the ratification of the

Bangsamoro Basic Law. The amount equivalent to Seven Billion Pesos

(P7,000,000,000.00) shall be allocated for the first year following the

ratification of this Basic Law. Beginning the second year, the Special

Development Fund shall be in the amount of Ten Billion Pesos

(P10,000,000,000.00) which shall be paid out to the Bangsamoro

government over five years at the rate of Two Billion Pesos

(P2,000,000,000.00) per year. Such amount shall be regularly released at

the beginning of each fiscal year to the Bangsamoro government."

I do not see the stated purpose of the Special Development Fund and

there is, at least, in this section, no explanation as to why there is a need for

such a fund. Furthermore, it is unclear who will administer that fund. And,

again, the uses of that fund are also unclear besides the very general

description of rehabilitation and development. I presume that rehabilitation

and development will come under the normal conduct of the provision of

services of the Bangsamoro government. So, let us include it in their general

fund and let them use it for the rehabilitation and development purposes.

I do not see the need to create another fund which will have another

system of administration, another system of collection and of disbursement

which, again, will just echo what the government is doing, the Bangsamoro

government will presumably be doing anyway. Rehabilitation and

32

development is an organic part of the duties and responsibilities of any

government to its constituency. Again, it is not special and that it is not

being used for a special purpose. So, again, there does not seem to be a

need for a Special Development Fund. And should there be additional funds

needed, that can be provided by added collection, that can be provided

within the block grant, that can be provided by a transfer payment from

national government, if it is agreed that that is the need. But, again, to

organize an entire fund with its attendant complexities and attendant

administrative requirements seems to be unnecessary.

Senator Guingona. The gentleman's first objection to it was that the

purposes are too generic and too vague. The gentleman said rehabilitation

and development are too general. So, would he be amenable to something

with a clear degree of specificity or specifics so that this fund can be: 1) will

make it very, very specific; 2) will put in measures for transparency and

accountability. We will state that it is clearly subject to the audit rules of

the Commission on Audit. And maybe we can even have that the

Bangsamoro shall submit a plan as to how to disburse it—not for our

approval, but so that it can be tracked by the Commission on Audit.

Senator Marcos. That mechanism, as I said, is already in place. If

in another part of the substitute bill there is a mandate that we give to the

Bangsamoro government to create a Bangsamoro Investment Plan. As a

matter of fact, one already exists, but it was written by ADB. We will have to

ask the Bangsamoro government to create one once it is formed.

And, again, it falls very much within the mainstream of the function

of the Bangsamoro government. A special fund is required for a special

purpose. Then, if we can identify a special purpose, then perhaps so. But

as it is written right now, it is rehabilitation and development, that is not

special simply because it is part of the normal conduct of government

business.

Senator Guingona. Mr. President, the gentleman did say "perhaps

so", if the purposes were more specific.

Senator Marcos. If the purposes--not only specific, but require a

special fund. If there is no requirement for a special fund, why create one?

33

An added bureaucracy, added complication, added potential for abuse,

added potential for wastage.

Again, if there are additional funds needed, I am sure that Congress

will be willing to increase the appropriation for the Bangsamoro government

and that perhaps it could be included, as I said, in the block grant and all

the other funds that are being given. There are normalization funds that are

we found in the budget for this year. There are normalization funds that

are going to be included in the budget for this year. And those are

essentially for the rehabilitation—hence, normalization--of those conflict

areas.

So, again, the question as for rehabilitation and development, I

think, clearly belongs to the functions and responsibility of the Bangsamoro

government.

Now, again, we have not seen any special need for any special fund.

So, again, that is why I removed it because it is simply unnecessary.

Senator Guingona. Mr. President, it seems we will not come to an

agreement with this issue. But let me just say in closing, the gentleman

said that there is no need. I see a need and I see an opportunity. The need

is that this is one of the poorest, if not the poorest area in the country. The

poverty is stark; the illiteracy is high; the health conditions are below par.

Clearly, there is a need.

Secondly, there is an opportunity. Here we are creating a new

entity—the Bangsamoro Autonomous Region—the Bangsamoro, a new

entity. So, this is an opportunity. We do not want it, like the gentleman

said, to fail like ARMM. Therefore, if we just give them political autonomy

without giving them the financial wherewithal, then we are just dooming

them to failure.

Mr. President, their success in the Bangsamoro will be our success.

Their success will be the success of this country.

Senator Marcos. Mr. President, we are not limiting, in any way,

shape or form, the funding that is going to be provided to the Bangsamoro

region. We are merely saying we are simplifying the process and we are

removing what we feel to be unnecessary. As it is, the different funds that

34

are being provided to the Bangsamoro government are the annual block

grant, the internal revenue allotment, the national government agent

subsidy, a transition fund, an infrastructure fund and, as proposed in the

BBL, a 100% national internal revenue tax collection and a normalization

fund. Within those funds, I am confident that any particular need that

would be identified can be addressed. And so, that is why the special

development fund, as defined and as created in the draft BBL, seems to

have no particular purpose and that is exactly the conclusion that we

arrived at and that is the reason that it was deleted.

Senator Guingona. Well, Mr. President, I do not see it the

gentleman’s way and at the appropriate time, I will propose the necessary

amendments.

Mr. President, I still have some questions, but the hour is late and

there are several of our colleagues who still want to give privilege speeches,

so I would like to reserve my right to ask more questions sometime in the

future.

The President. The Chair would prefer if Senator Guingona and

Senator Marcos would concur that we continue and have a few more points.

Senator Guingona. All right, then, Mr. President.

Senator Marcos. Yes, no objection from me, Mr. President.

Senator Guingona. All right. On another matter, Mr. President,

auditing. The provision on the creation of the Bangsamoro Commission on

Audit was deleted. I can see why but may we know specifically the reasons

why.

Senator Marcos. Mr. President, this was to remedy an identified

constitutional infirmity. The Commission on Audit is a constitutional body

and to create a separate audit body in the Bangsamoro that would not be

under the supervision and control of the COA, would be a diminution of its

powers and functions and that is not allowed by the Constitution.

Furthermore, to bring back the point that was made earlier that ARMM was

a failed experiment, again, I stress, I do not agree with that view, but

nevertheless, if we accept that for the reason that we are doing this, one of

the main reasons that ARMM did not, in fact, achieve what we had hoped it

35

would achieve in terms of development in ARMM, in Muslim Mindanao, was

the lack of proper auditing and the view that much of the funds that were

being given to the ARMM by the national government were not used for

development purposes, were not used for operation of the government.

But the reason this was allowed to happen was because it was only an

internal audit that was being conducted and the COA did not have the

supervision and control of the internal audit and that is why these abuses

fell through the cracks. We all know that some of those funds were used to

buy arms, some of those funds were used to build large, luxurious houses,

to buy expensive vehicles. All of these are certainly not the intended use of

the funds that were given by the national government to ARMM. So as to

avoid that, then it is important that the auditing procedures are clearly

understood and are strictly followed and this can only be done by the COA.

And as long as they operate and continue to follow the accepted practices in

auditing procedures and in financial management, then the transparency

and accountability questions, I think, are well answered. But at the base of

all of these, it really was because it is a constitutional infirmity, it is

unconstitutional to create a separate Commission on Audit.

Senator Guingona. That point is well-taken, Mr. President. The

last point to create a separate Commission on Audit that would rival, so to

speak, the Commission on Audit.

But I would like to state that, I think, the Sponsor made an incorrect

statement. He said that the COA did not have audit powers over the ARMM.

It was just an internal audit entity that had audit powers. No, that is not

true. The COA always had jurisdiction, responsibility and audit powers

over the ARMM. All these times, since the creation of ARMM, until this

very moment, the COA has the jurisdiction, power and responsibility to

audit ARMM. Whether they did so is another thing. Whether they did so

with due diligence is another matter. But insofar as the powers and

responsibilities and the jurisdiction, COA always had them over the

Autonomous Region in Muslim Mindanao.

Senator Marcos. Mr. President, we asked for the audit reports of

the ARMM over the years, and we were told by COA that they only

36

conducted internal audits within ARMM. That is why the audit reports are

very general and highly aggregated, and we do not have any detail in them.

I believe the procedure that was undertaken was that the internal audit

would then report to the COA and the COA would accept that report and

that would be the end of that. That is what happened in ARMM. That is

why clearly, the abuses that we have all seen that happened in ARMM were

allowed. That is why we have tried to bring it back to the usual and the

normal procedure where the COA is the one that has the control and

supervision.

What the Bangsamoro will have is a regional office of the COA. In

fact, this extends to all of the constitutional bodies where we just align them

to what is happening in other regions but perhaps in an enhanced way

because this is not an ordinary region, it is an autonomous region.

Senator Guingona. Yes, Mr. President. But as we know, COA did

exercise from time to time, I do not know how often, but they did exercise. I

do remember the Senate President in 2010 or 2011 where we discussed the

COA audit report over the ARMM. So, clearly COA always had jurisdiction,

powers and responsibilities over the ARMM.

Senator Marcos. Be that as it may, the original conception of

having a separate audit office for the Bangsamoro alone could not be

accepted, and that is the base reason for that. But the additional reason for

that is again the accountability and transparency which is the entire

purpose of the COA.

Senator Guingona. Mr. President, let us leave it at that for the

moment. Yes, I do agree with the Sponsor that we cannot have two audit

bodies when the Constitution says there should be only one.

One other point on the GOCCs and financial institutions. It is said in the

original bill, the Bangsamoro shall have the power to create GOCCs and

financial institutions through the necessary modalities and in accordance

with the law on GOCCs to be passed by Parliament. These Bangsamoro

government-created GOCCs shall be duly registered with the Securities and

Exchange Commission or established under legislative charter by the

Bangsamoro Parliament and shall be recognized even outside the

37

Bangsamoro. Revenues derived from their operations shall pertain to the

Bangsamoro. They were deleted, may I know why?

Senator Marcos. Again, this was deemed to be unclear because it

would seem that the Bangsamoro government can create GOCCs which will

be recognized as government-operated and controlled by the national

government. That cannot be. The GOCCs can only be created. Because in

this definition….

Senator Guingona. The gentleman means to say, Mr. President, that

GOCCs can only be created by Congress and not by the proposed

Bangsamoro Parliament.

Senator Marcos. It is again a constitutional question. Article XII,

Section 16, states that:

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.

And so, that is, I think very clear that only the Congress is allowed to

create such a corporation.

The President. But if I get the quotation of Senator Guingona

correctly, these GOCCs created by the Parliament of the Bangsamoro must

be registered with the SEC. Is that a correct recollection of the statement,

Senator Guingona?

Senator Guingona. Yes. The phrase says ―shall be duly registered

with the Securities and Exchange Commission.‖

The President. So that without registration, it cannot come into

existence.


The President. In that case, then there is nothing wrong with that

because….

Senator Marcos. There is an option, Mr. President. To complete the

reading of that sentence, ―The GOCCs shall be registered with the Securities

and Exchange Commission or shall be established under legislative charter

by the Bangsamoro government.‖

38

Senator Guingona. All right, then. If that is the case,…

Senator Marcos. That is the entirety of that paragraph.

Senator Guingona. Yes, Mr. President. All right, then. If that is the

case, then if we make some amendments, would that be acceptable to the

distinguished Sponsor?

Senator Marcos. Again, so long as it is consistent with law and the

Constitution, I do not see the problem as long as it is clear that the GOCCs

are created by Congress and within the Bangsamoro region or otherwise.

Once again, it is a power given to Congress and not to any other body.

The President. With the permission of Senator Guingona, just to

clarify on this point. There are two ways of creating the GOCC: one, by an

act of the Bangsamoro Parliament, provided it is registered with the SEC;

and, second, by an act of Congress alone, which is what is in the

Constitution today. Is that correct, Senator Marcos?

Senator Marcos. Not quite so, Mr. President. Let me read the

entirety of the paragraph.

The President. Please.

Senator Marcos. ―The establishment of government-owned and/or

controlled corporations (GOCCs) and financial institutions. The

Bangsamoro government shall legislate and implement the creation of its

own GOCCs in the pursuit of the common good and subject to economic

viability. The GOCCs shall be registered with the Securities and Exchange

Commission or shall be established under legislative charter by the

Bangsamoro government.‖

So, the Bangsamoro government is thus empowered in the original

version to create its own GOCCs.

The President. All right. Just for the record. Senator Guingona,

thank you for yielding the Floor.

Senator Guingona. So, the gentleman’s argument, Mr. President, is

that the Bangsamoro Parliament cannot create GOCCs.

Senator Marcos. That is right, Mr. President. Again, in the

Constitution, it says that the Congress shall not create, except by general

39

charter, private corporations. GOCCs may be created by special charter and

that is what the Constitution says.

The President. The Chair is a little confused. Can the Bangsamoro

parliament create a GOCC?

Senator Marcos. In the substitute bill, no, it cannot, Mr. President.

In the draft BBL, it can.

The President. But the way the gentleman has read the provision

which, I assume, is the substitute bill, it would appear that the Bangsamoro

parliament can create a GOCC.

Senator Marcos. No, Mr. President, it is deleted. The whole section

is deleted from the substitute bill. Everything that I have read came from

the draft BBL.

The President. So, it is not in the substitute bill?

Senator Marcos. It is not in the substitute bill, Mr. President.

The President. So that it is clear that only Congress can create, by

special law, a GOCC or under the Corporation Code.

Senator Marcos. That is precisely the point, Mr. President.


Senator Guingona. Mr. President, then that is my proposal that we

return this and allow the Bangsamoro government to create GOCCs. And if

the gentleman wants, we shall make it subject to registration. After they

create them, we make them subject to registration with the Securities and

Exchange Commission.

If the gentleman wants further, we shall say that whatever they pass,

whatever they create shall be consistent with the Constitution, pertinent

laws and Republic Act No. 10149, the GOCC Governance Act of 2011, Mr.

President. But let us give them the power to create GOCCs.

Senator Marcos. They can create economic enterprises. But GOCCs,

as it has been defined, are not GOCC Bangsamoro government-operated and

controlled corporation, but they are government-owned and controlled

corporations of the national government. That is why there is that limitation

to only the Congress or the special charter to create such GOCCs.

40

To allow the Bangsamoro government to create the GOCCs would be

to impose upon the national government the creation of the Bangsamoro

government above and beyond Congress and special charter. And that is

the objectionable part to that proposal.

Senator Guingona. Special charter, Mr. President. The gentleman is

reading Section 16 of Article XII, am I correct? Is his basis?

Senator Marcos. That is right, Mr. President. That is what I read

earlier.

Senator Guingona. ―The Congress shall not, except by general law,

provide for the formation, organization or regulation of private corporations.‖

All right, that is for 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.‖

This is with regard to government-owned or controlled corporations of

the national government, Mr. President. But I do not think if a local

government creates a corporation, then it is violating this provision. And

more so, if an autonomous region with a high degree of autonomy creates a

GOCC, it would be violating this provision.

Senator Marcos. No one but Congress can create a GOCC. What a

local government does is create what we referred to as an economic

enterprise. It is a financial operation where the local government makes

money. Tourism, for example, a resort, a restaurant, whatever it is,

development of a mall, that is an economic enterprise. And there is nothing

that holds an LGU. But if they want to create an entity that exist solely for

profit, that will redound to the benefit of the local government. It is not,

however, a GOCC. That is the simple difference.

The Bangsamoro government is as well perfectly within its rights to

create such an economic enterprise. If they see an economic opportunity,

put up a business, incorporate it, they can define it as an economic

enterprise, it is a well understood concept in local government and it is not

precluded from the powers of the Bangsamoro government.

The President. Senator Marcos, under existing rules, a wholly owned

government corporation registered with the Securities and Exchange

41

Commission is considered a GOCC so that they are subject to audit by COA,

they are subject to salary standardization principles? In other words, they

are treated like a corporation created by special charter. That is the present

rule. Now, what would be the situation in the Bangsamoro?

Senator Marcos. In the Bangsamoro, the GOCC will be created by a

law that will be passed by the Bangsamoro Parliament.

The President. The Chair will recognize Senator Recto just after

Senator Marcos finishes his answer.

Senator Marcos. The Bangsamoro government shall legislate and

implement the creation of its own GOCCs in the pursuit of their common

good, and therefore, shall legislate and implement. It will be a law passed

by the Bangsamoro Parliament, subject to economic viability. The GOCCs

shall be registered with the SEC or shall be established under a legislative

charter by the Bangsamoro government.

So, basically, what we are allowing the Bangsamoro government to do

is to create the GOCC which is, as far as I understand, falls within the

purview of Congress. And again, there does not seem to be a necessity for

them to create GOCCs because if the idea is to have an economic activity or

to promote and to even invest in an economic activity for the profit of that

local government unit, then that option is also available to the Bangsamoro

government. And I do not see where the contradiction lies.

The President. With the permission of Senator Marcos and Senator

Guingona, the Chair recognizes Senator Recto.

Senator Recto. Yes, Mr. President. Maybe just for a clarification. I

think the confusion here is a technical definition of a GOCC as provided for

in the Constitution. And under the Local Government Code, local

governments are allowed to create local public enterprises which are locally

owned, government owned and controlled corporations. And listening to the

debate, I think that the distinguished gentleman from Ilocos has already

said that the regional government will be allowed to create local public

enterprises.

42

Senator Marcos. Certainly, Mr. President. That is an option, as I

said, available to all local government units, and I do not see why it would

not be allowed to the Bangsamoro Autonomous Government.

Senator Recto. But the only confusion again is what is a GOCC?

What is a local public enterprise? They are very similar. So, yes, local

governments, and I think the Bangsamoro region should be allowed to

create a local GOCC or a local public enterprise. For example, many public

utilities are wanting in the Bangsamoro region. Water, for example, the

Bangsamoro regional government may create a local water district owned by

the Bangsamoro region; may create an electric public enterprise for their

locality; may even put up a local public enterprise that can construct toll

roads as an example, and may even go into joint venture agreements with

the private sector. So, I think, maybe that is only where the confusion is.

But, yes, I think I agree with the two gentlemen that we must provide the

Bangsamoro region with the legal authority to create whatever we want to

call it, a GOCC, a local GOCC, or a local public enterprise.

Thank you, Mr. President.

Senator Marcos. I think, Mr. President, in the interest of good order,

when it comes to the creation of corporations or any economic enterprise, let

us veer away from the terminology of GOCC. That is where the confusion

seems to have arisen. And we can call it in local government as an

economic enterprise. We can find another term for it if we choose to or we

can use that. But, again, besides, that is again well within the purview of

the law-making powers of the Bangsamoro parliament.

Senator Guingona. All right, Mr. President, but the problem there is

if we do not say corporation, then they cannot be registered with the

Securities and Exchange Commission. I think one safeguard we have is that

Bangsamoro parliament creates a GOCC or a public enterprise but the

GOCC has to be registered with the Securities and Exchange Commission.

Senator Marcos. No, there is, again, nothing that does not allow

them to register with the SEC. They can form any kind of entity that they

choose: non-profit, profit, charitable foundation, whatever it is they choose

43

to do. And if they choose to register it with the SEC, they are clearly allowed

to do that. There is nothing anywhere that says that they cannot do that.

Senator Guingona. All right. Mr. President, it seems that the bone of

contention here is whether or not to use the word "GOCC".

Mr. President, maybe we should suspend this interpellation until

further study so we can look into the matter.

My position is, we should allow the Bangsamoro parliament to create

GOCCs, public enterprises, whatever, but, at the same time, subject them to

registration with the proper registry authority such as the Securities and

Exchange Commission.


Senator Marcos. Yes, Mr. President. And, again, in appreciation and

to note the comments and explanations of Senator Recto, the confusion is

because GOCC has a very well-understood and well-defined meaning,

"Government Owned and Controlled Corporation". What we are going after

in the Bangsamoro Autonomous Region is, as I said, commonly referred to

as an "economic enterprise" in other local government units.

Again, there is no constraint to the Bangsamoro government from

creating such economic enterprises. They may legislate the creation of those

economic enterprises but they cannot be considered as GOCCs because they

have not been created in the fashion that GOCCs are mandated to be

created.

So, I think we have actually arrived at the solution to this squander.


Senator Guingona. On the contrary, Mr. President, I would like to

reserve to bring up this matter at some future time.

The President. The gentleman can bring it on Monday again when

we call this.


The President. All right. So, Senator Guingona is suspending in the

meantime his interpellations.


SUSPENSION OF CONSIDERATION OF S. NO. 2894

44

Senator Angara. Mr. President, I move that we suspend consideration

of Senate Bill No. 2894.


motion is approved.

SPECIAL ORDER

Senator Angara. Mr. President, I move that we transfer from the

Calendar for Ordinary Business to the Calendar for Special Orders

Committee Report No. 215 on Senate Bill No. 2923, entitled





motion is approved.

BILL ON SECOND READING

S. No. 2923 – Anti-Agricultural Smuggling Act of 2015

Senator Angara. Mr. President, I move that we consider Senate Bill

No. 2923 as reported out under Committee Report No. 215.


motion is approved.

Consideration of Senate Bill No. 2923 is now in order. With the

permission of the Body, the Secretary will read only the title of the bill

without prejudice to inserting in the Record the whole text thereof.





_________________________________________________________________

The following is the whole text of the bill: Senate Bill No. 2923

(insert) _________________________________________________________________

Senator Angara. I ask that the chairman of the Committee on

Agriculture and Food, Senator Villar, be recognized to sponsor the measure.

The President. Senator Villar is recognized to sponsor the measure.

45

SPONSORSHIP SPEECH OF SENATOR VILLAR

Senator Villar. Mr. President, my fellow senators.

I stand here today to sponsor substitute Senate Bill No. 2923 (in

substitution of Senate Bill Nos. 2082 filed by Senator Ejercito and 2765 filed

by this representation), under Committee Report No. 215 or "An Act

Declaring Large-Scale Agricultural Smuggling as Economic Sabotage,

Prescribing Penalties Therefor and For Other Purposes‖. This committee

report was prepared and submitted jointly by the Committees on Ways and

Means; and Justice and Human Rights.

The Senate Committee on Agriculture and Food, which I chair, has

conducted comprehensive Senate inquiries and public hearings on

smuggling of various agricultural products. Binusisi na namin ang

smuggling ng bigas, bawang, sibuyas, meat and offal at iba pa. Sa aming

pananaw kasi, ang smuggling ay numero unong pumapatay sa agriculture

sector, sumisira ng local agri-businesses, lalong nagpapahirap sa ating mga

magsasaka at agri-workers, at higit sa lahat, ito ay malaking threat sa food

security ng ating bansa.

I cannot overemphasize the importance of the growth and

development of the agriculture sector to our country—an agricultural

country. Thus, it is the policy of the State to protect and promote the

productivity of the agriculture sector and farmers from unscrupulous

traders and importers, who by their illegal importation of agricultural

products, especially rice, significantly affect the production, availability of

supply and stability of prices, and thereby threatens the food security of the

State. About 600,000 metric tons of rice are smuggled each year and about

P200 billion lost to agricultural smuggling alone. Mas malaki pa nga ang

halagang iyan sa total amount involved in the pork barrel scam, in fact.

Actually in some studies, ang agricultural smuggling amounts to P450

billion a year at iyong rice smuggling ay P10 billion a year.

Kung hindi natin hihigpitan ang penalties sa smuggling, mawawalan

ng saysay ang ating efforts para palaguin ang agricultura sa ating bansa.

Thus, smugglers of agricultural products are usually no less than economic

saboteurs. As I cited in the bill I authored, some acts of smuggling are

46

already punishable under the Tariff and Customs Code, but there are just

some acts that are ―too ruthless by its very scope, making it tantamount to

economic sabotage‖.

Smugglers, using manipulative schemes, are sabotaging our economic

well-being and are destroying the livelihood of our farmers. Hanggang

ngayon po, ang mga magsasaka at mangingisda pa rin ang pinakamahirap

na sektor sa ating bansa. Kung hindi natin susugpuin ang isa sa

pangunahing hadlang sa kanilang pag-unlad—ang rampant smuggling ng

kanilang mga ani o produkto—mahihirapan ang ating mga magsasaka at

mangingisda na makaahon mula sa kahirapan.

Under the bill, ―agricultural products subject to economic sabotage‖

shall cover rice, sugar, corn, pork, poultry, garlic, onion, carrots, dried fish,

and cruciferous vegetables, in its raw state, of which have undergone the

simple processes of preparation or preservation for the market.

Under the bill, any person who shall import or bring into the

Philippines, agricultural products without the required import permit from

the regulatory agencies, or use of import permits of persons, natural or

juridical, other than those persons specifically named in the permit; or any

person who shall import agricultural products by means of fraud or by

illegally obtaining the required import permit shall be guilty of the crime of

smuggling, including those acts which are within the purview of technical

smuggling.

The bill further provides that ―the acts of agricultural smuggling,

including technical smuggling, are acts inimical to the national interest,

economic growth and development. Any person, natural or juridical, found

guilty of engaging in agricultural smuggling, or technical smuggling of a

minimum aggregate amount of P1 million worth of agricultural products

subject to economic sabotage as defined, except rice, or has been found

guilty of engaging in agricultural smuggling of rice, or technical smuggling,

with a minimum aggregate amount of P10 million, as valued by the Bureau

of Customs, shall be guilty of economic sabotage.

Nadiskubre namin sa mga hearings na ginawa ng komite na iba-iba na

talaga ang mga modus operandi ng mga smuggler. Smugglers have, not

47

only become more aggressive, but creative and cunning in their schemes.

Ginagawa nila ang lahat ng paraan para malusutan, or to go around existing

rules and regulations as well as policies and laws.

Thus, we ensureD that all the elements in the determination of the

crime of agricultural smuggling as economic sabotage--whether by means of

technical or outright smuggling--are covered on the bill. We were also

elaborate in liability of persons to the crime of agricultural smuggling as

economic sabotage--whether as principals or accomplices.

It is very necessary for the State to protect our local agricultural

industry and farmers from unscrupulous traders and importers, who by the

sheer volume of their illegal importation significantly affect the production

and stability of our agricultural products. Lalo na, since this year na ang

implementation ng ASEAN economic integration at mas magiging intense

ang competition. There is a need for a relevant legislation to stop

agriculture products smuggling in the country—a law which shall provide

safeguards and indirectly increase income opportunities for local producers;

which shall help reduce poverty among farmers and agricultural households

in the country; and which shall ensure food security and stability. Higher

sanctions for certain acts of agricultural smuggling, tantamount to economic

sabotage must be imposed. Not a mere slap on the wrist.

Mr. President, esteemed colleagues, I earnestly seek the swift passage

of Committee Report No. 215 or the ―Anti-Agricultural Smuggling Act of

2015.‖

Maraming salamat po.

The President. Thank you, Senator Villar.



Senator Angara. Mr. President, I move that we suspend

consideration of Senate Bill No. 2923 under Committee Report No. 215.


the motion is hereby approved.

SPECIAL ORDER

48

Senator Angara. Mr. President, I move that we transfer from the

Calendar for Ordinary Business to the Calendar for Special Orders

Committee Report No. 214 on Senate Bill No. 2922, entitled

AN ACT CREATING THE PHILIPPINE TRADE REPRESENTATIVE

OFFICE AND APPROPRIATING FUNDS THEREFORE


the motion is hereby approved.

BILL ON SECOND READING S. No. 2922--Charter of the Philippine Trade Representative Office

Senator Angara. Mr. President, I move that we consider Senate Bill

No. 2922 as reported out under Committee Report No. 214.



Consideration of Senate Bill No. 2922 is now in order. With the

permission of the Body, the Secretary will read only the title of the bill

without prejudice to inserting in the Record the whole text thereof.


AN ACT CREATING THE PHILIPPINE TRADE REPRESENTATIVE OFFICE AND APPROPRIATING FUNDS

________________________________________________________________________

The following is the whole text of the bill: Senate Bill No. 2922

(insert)

_______________________________________________________________________ Senator Angara. Mr. President, I ask that we recognize Senator

Aquino, the Chairman of the Committee on Trade and Entrepreneurship to

sponsor the measure.

The President. Senator Aquino is recognized to sponsor the measure.

SPONSORSHIP SPEECH OF SENATOR AQUINO

Senator Aquino. Thank you, Mr. President.

Mr. President, distinguished colleagues, magandang, magandang

hapon po sa ating lahat!

I have the privilege of addressing this Body today to sponsor Senate

Bill No. 2922 under Committee Report No. 214, entitled ―An Act Creating the

49

Philippine Trade Representative Office and Appropriating Funds Therefore‖

otherwise known as the ―Charter of the Philippine Trade Representative

Office.‖

Ladies and gentlemen, the Philippines has captured the attention of

the global business community. Apart from having the second fastest

growing economy in Asia, we have earned investment grade ratings from

reputable ratings agencies.

Just recently, the Center for Global Development in Washington D.C.

ranked the Philippines as the most resilient economy among 21 countries

studied. Our island nation ranked number one above South Korea and

China, second and third respectively.

The country is also considered among the most entrepreneurial

countries in the world in a report produced by Approved Index.

There are even talks to build our own version of Silicon Valley to

utilize the large pool of talented and skilled Filipinos in the field of

information technology (IT), design, and programming and engineering. This

newfound popularity produced tangible and measurable results well beyond

news headlines.

In 2014, our country’s net foreign direct investments reached a

record-breaking U.S. $6.2 billion—a stark improvement from our 2010 net

FDI of U.S. $1.07 billion.

Mr. President, the Philippines is now considered a highly competitive

player in the market of foreign direct investments thanks to our robust

economy and the great potential of our workforce.

But this is not the time to rest on our laurels.

To maintain this competitiveness, we also need to improve trade

negotiation and facilitation and ensure that we are abreast of the

developments in the global markets.

The Charter of the Philippine Trade Representative Office is a policy

that kick-starts this initiative by creating the Philippine Trade

Representative Office or PTRO. The PTRO is tasked to consolidate and

harmonize all existing functions from various government agencies such as

the Bureau of International Trade Relations under the Department of Trade

50

and Industry (DTI), Attaches and Permanent Missions to the World Trade

Organization (WTO), Association of Southeast Asian Nations (ASEAN) and

United Nations International Organization (UNIO) and the trade negotiating

and policy making functions of the Tariff and Related Matters Committee

(TRMC). This is in order to drive trade negotiations forward and make

dealing with the Philippines quick, easy, and highly effective.

The PTRO shall form the Multi-Sectoral Advisory Committee (MSAC)

that will compose members from both government and civil society,

including representatives from the agriculture industry, labor sector, small

business, service sectors, retailers and consumer groups to strategically

plan how to best support local importers and exporters.

Mga kaibigan, oras na para magtatag ng iisang kinatawan ng Pilipinas

na haharap sa pandaigdigang entablado.

Huwag natin palampasin ang pagkakataon na lalong i-angat ang ating

ekonomiya.

Huwag nating sayangin ang pagkakataong palaguin at pabutihin pa

ang mga negosyong Pilipino.

Mr. President, our country is now open for business. Let us pass the

Charter of the Philippine Trade Representative Office and show the world

that trade and commerce in the Philippines can be hassle-free, can be

profitable and, of course, can be fun.

Maraming, maraming salamat po! Thank you, Mr. President.

The President. Thank you, Senator Aquino.



Senator Angara. Thank you, Mr. President.

Mr. President, I move that we suspend consideration of Senate Bill No.

2922 under Committee Report No. 214.


motion is approved.

BILL ON SECOND READING

S. No. 2835 – Anti-Ambulance Chasing Act (Continuation)

51

Senator Angara. Mr. President, I move that we resume consideration

of Senate Bill No. 2835 as reported out under Committee Report No. 177.

This is the bill on Anti-Ambulance Chasing.



Senator Angara. Mr. President, the parliamentary status is that the

Sponsor delivered sponsorship last June 9, 2015. I move that we open the

period of interpellations.


motion is approved.

Senator Angara. Mr. President, I am also the sponsor and there are

no members of the Senate who have signified their intent to interpellate. I,

thus, move to close the period of interpellations.


The President. The session is suspended for one minute, with the

permission of the Chamber.

It was 5:52 p.m.





Senator Angara. Mr. President, I reiterate my motion to close the

period of interpellations.



Senator Angara. Mr. President, likewise, there are no committee

amendments nor are there members who have signified their intent to

interpellate. I, thus, move that we close the period of amendments.

The President. The Chair would like just to review this matter a little

bit more and by Monday, next week, we can provide the sponsor, if that fits

the sponsor

52

Senator Angara. Certainly, Mr. President. I, thus, move that we, at

least, close, if it is all right, may we close the period of committee

amendments.



Senator Angara. And on Monday we will tackle the period of

individual amendments.

The President. Yes.


Senator Angara. Thus, I now move, Mr. President, that we suspend

consideration of Senate Bill No. 2835 under Committee Report No. 177.


motion is approved.

Senator Angara. Mr. President, we just have one more measure.

This is the bill of Senator Legarda, the Resource Centers for Indigenous

Peoples, but she asked me to read the committee amendments but they are

now being photocopied. So, in a few minutes, they will be here.

In the meantime, maybe we can do some administrative matters, Mr.

President.

The President. Please proceed.

CONFERENCE COMMITTEE ON S. NO. 2890/H. NO. 1039 (Expanding the Benefits and Privileges of

Persons With Disability)

Senator Angara. Mr. President, we assign the following senators,

myself, Sen. Ralph G. Recto, Sen. Paolo ―Bam‖ A. Aquino IV, Sen. Pia S.

Cayetano, and Sen. Maria Lourdes Nancy S. Binay as members of the

Bicameral Conference Committee to reconcile the disagreeing provisions of

Senate Bill No. 2890 and House Bill No. 1039. This is the PWD bill.

The President. On what?

Senator Angara. The PWD, Persons With Disabilities, Mr. President.

The President. All right. It is so constituted.


53

Senator Angara. I move that we suspend the session for one minute,

Mr. President.



It was 5:55 p.m.





BILL ON SECOND READING S. No. 2209--Resource Centers for Indigenous Peoples Act of 2014

(Continuation)

Senator Angara. With the consent of the Senate, I move that we

resume consideration of Senate Bill No. 2209 under Committee Report No.

147. This is the bill on Resource Centers for Indigenous Peoples, Mr.

President.



Senator Angara. Mr. President, the parliamentary status is that the

sponsor, Senator Legarda, delivered her sponsorship speech last May 26,

2015. I thus, move that we open the period of interpellations.

The President. Is the sponsor here?

Senator Angara. She was here, Mr. President, but she asked that I

propound her committee amendments because she is not feeling well.

The President. Yes, but the period of interpellations, who will

respond for the questions?

Senator Angara. There are no members who wish to interpellate, Mr.

President.

The President. All right. Is there any objection? [Silence] There being

none, the period of interpellations is so terminated in the absence of the

sponsor.

Senator Angara. I move that we open the period of committee

amendments, Mr. President.

54


motion is approved.

Senator Angara. Mr. President, the Committee proposes the following

amendments to Senate Bill No. 2209:

First, as an omnibus amendment, to delete the phrase ―Indigenous

Cultural Communities.‖

The President. This is on--All the phrases ―Indigenous Cultural

Communites wherever they will appear?

Senator Angara. Yes, Mr. President.


amendment is approved.

Senator Angara. Secondly, Mr. President, on page 2, line 14, to add

the sentence: THE COMMISSION SHALL COORDINATE CLOSELY WITH

THE STATE UNIVERSITIES AND COLLEGES (SUCs) IN THE AREA.

The President. Before the Chair acts on the motion, the Committee

Report indicates numerous committee amendments. What would the

Chamber do with the proposed committee amendments now that another

set of committee amendments are being proposed?


Senator Angara. I move that we suspend the session for one minute,

Mr. President.



It was 5:58 p.m.





Senator Angara. Mr. President, the parliamentary status is that we

are discussing the committee amendments to Senate Bill No. 2209. It seems

that we overlooked that the committee report still has committee

amendments and, thus, I withdraw the earlier motion which the Body

approved.

55

I move that we reconsider such approval.

The President. So reconsidered.


Senator Angara. Mr. President, I move that we suspend

consideration and maybe tackle Senate Bill No. 2209 under Committee

Report No. 147, on Monday.


motion is approved.

ADJOURNMENT OF SESSION

Senator Angara. Mr. President, there being no other business to take up, I move that we adjourn the session until three o’clock in the

afternoon, Monday, September 7, 2015.


session is adjourned until three o’clock in the afternoon, Monday, September 7, 2015.

It was 6:04 p.m.

Documents

Se. TG Guingona's Interpellation on BBL Substitute BILL