By Alyssa Chrizelle Ng Miclat
In Executive Secretary Mendoza v. Pilipinas Shell Petroleum Corporation, the Supreme Court (SC) applied the doctrine of qualified political agency in upholding the constitutionality of government takeover of a country’s oil industry operations during national emergencies.
Penned by Senior Associate Justice Marvic M.V.F. Leonen, the SC ruled that the Court of Appeals erred in declaring Section 14 (e) of Republic Act No. 8479 void for being contrary to the Article XII, Section 17 and Article VI, Section 23 (2) of the Constitution.
On one hand, Section 14 (e) provides that in times of national emergency, when the public interest so requires, the DOE (Department of Energy) may, during the emergency and under reasonable terms prescribed by it, temporarily take over or direct the operation of any person or entity engaged in the industry.
On the other hand, Article XII, Section 17 of the Constitution states: “In times of national emergency, when the public interest so requires, the State may, during the emergency and under reasonable terms prescribed by it, temporarily take over or direct the operation of any privately-owned public utility or business affected with public interest.”
Article XII, Section 17 with the second paragraph of Article VI, Section 23 of the Constitution provides that the legislature may authorize the president to take over public utilities or businesses impressed with public interest.
Ruling on the argument that legislature’s delegation of takeover power to an executive agency such as the Department of Energy other than the president contravenes the above provisions of the Constitution, SC applied the doctrine of qualified political agency, stating that: “While the language of Section 14 (e) appears to allow an interpretation that permits the energy secretary to act independently or without instructions from the President, the doctrine of qualified political agency entails that a cabinet secretary may only exercise the authority acting as the President’s alter ego.As such, their actions related to their official duties and responsibilities are presumed to be the President’s. These acts are valid and binding unless the President disapproves or repudiates them.” as stated in the Court decision.
“Here, if there is no clear showing that the energy secretary acted without the imprimatur of the President, the presumption of constitutionality must prevail,” added.
The decision also took note of Senior Associate Justice Alfredo Benjamin S. Caguioa’s observation that here, the temporary takeover power of oil industry entities does not belong to the “special class of constitutionally vested powers” exclusive to the president that would bar the application of the doctrine of qualified political agency.
The dispute was brought to court by oil company Pilipinas Shell Petroleum Corporation, which contested the validity of Executive Order 839 issued by President Gloria Macapagal Arroyo in 2009 directing oil industry players to maintain the oil prices of their petroleum products during the emergency on the basis of Section 14 (e) of the Oil Deregulation Law.
THE BARRISTER 