EN BANC

 

 

            G.R. No. 180643 - ROMULO L. NERI in his capacity as Chairman of the Commission on Higher Education (CHED) and as former Director General of the National Economic & Development Authority (NEDA), Petitioner,  - versus - SENATE COMMITTEE ON                           ACCOUNTABILITY OF PUBLIC OFFICERS & INVESTIGATIONS (BLUE RIBBON), SENATE COMMITTEE ON TRADE & COMMERCE, and SENATE COMMITTEE ON NATIONAL DEFENSE & SECURITY, Respondents.

 

 

                                                                                    Promulgated:

           

                                                                                    March 25, 2008

 

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DISSENTING AND CONCURRING OPINION

 

 

CARPIO, J.:

 

 

The Case

 

 

          This Petition,[1] with supplemental petition,[2] for certiorari with application for a temporary restraining order, assails the letter dated 22 November 2007 and the Order dated 30 January 2008 issued by respondents Senate Committees on Accountability of Public Officers and Investigation (Blue Ribbon),[3] Trade and Commerce,[4] and National Defense and Security[5] (collectively respondents or Committees).

 

          The 22 November 2007 letter required petitioner Commission on Higher Education Chairman and former National Economic Development Authority (NEDA) Director General Romulo L. Neri (petitioner) “to show cause why [he] should not be cited in contempt” for his failure to attend the Blue Ribbon Committee hearing on 20 November 2007, while the Order issued on 30 January 2008 cited petitioner in contempt and directed his arrest and detention in the Office of the Senate Sergeant-At-Arms. 

 

 

The Antecedent Facts

 

 

            On 21 April 2007, with President Gloria Macapagal-Arroyo as witness, the Department of Transportation and Communications, represented by Secretary Leandro R. Mendoza, and Zhong Xing Telecommunications Equipment Company Limited (ZTE), represented by its Vice President Yu Yong, signed in Boao, China, a “Contract for the Supply of Equipment and Services for the National Broadband Network Project” (NBN Project) worth US$329,481,290. The People's Republic of China, through its Export and Import Bank, agreed to extend a loan to the Philippines to finance the NBN Project.[6]   The NBN Project was supposed to provide landline, cellular and Internet services in all government offices nationwide.

 

          After the signing of the agreement, controversies hounded the NBN Project.  There were various reports of alleged bribery, “overpricing” of US$130 million, payment of “advances” or “kickback commissions” involving high-ranking government officials, and other anomalies which included the loss of the contract, collusion among executive officials, and political pressures against the participants in the NBN Project.[7] 

 

 

          Considering the serious questions surrounding the NBN Project, respondents called an investigation, in aid of legislation, on the NBN Project based on resolutions introduced by Senators Aquilino Q. Pimentel, Sr., Panfilo M. Lacson, Miriam Defensor Santiago, and Mar Roxas.  Several hearings were conducted, one of which was held on 26 September 2007 where petitioner testified before respondents.

 

          During this particular hearing, petitioner testified that then Commission on Elections Chairman Benjamin Abalos, Sr. (Abalos), the alleged broker in the NBN Project, offered petitioner P200 million in exchange for NEDA's approval of the NBN Project. Petitioner further testified that he told President Arroyo of the bribe attempt by Abalos and that the President instructed him not to accept the bribe offer.

 

          However, when respondents asked petitioner what he and President Arroyo discussed thereafter, petitioner refused to answer, invoking executive privilege.  Petitioner claimed executive privilege when he was asked the following questions:

 

          I.

 

SEN. PANGILINAN:     You mentioned earlier that you mentioned this to the President.  Did the President after that discussion over the phone, was this ever raised again, the issue of the 200 ka rito?

 

MR. NERI:     We did not discuss it again, Your Honor.

 

SEN. PANGILINAN:       With the President?  But the issue, of course, the NBN deal, was raised again?  After that, between you and the President.  Pinalow up (followed up) ba niya?

 

 

 

 

MR. NERI:    May I claim the executive privilege, Your Honor, because I think this already involves conversations between me and the President, Your Honor, because this is already confidential in nature.

 

x x x

 

II.

 

SEN. LEGARDA:      Has there been any government official higher than you who dictated that the ZTE project be prioritized or given priority?  In short, were you dictated upon not to encourage AHI as you’ve previously done...

 

MR. NERI:        As I said, Your Honor...

 

SEN. LEGARDA:       ...but to prefer or prioritize the ZTE?

 

MR. NERI: Yeah. As the question may involve – as I said a conversation/correspondence between the President and a public official, Your Honor.

 

SEN. LEGARDA:    I’m sorry.  Can you say that again?

 

MR. NERI:     As I said, I would like to invoke Sec. 2(a) of EO 464.

 

x x x

 

III.

 

MR. NERI:     She said, “Don’t accept it,” Your Honor.

 

SEN. CAYETANO, (P):  And there was something attached to that like... “But pursued with a project or go ahead and approve,” something like that?

 

MR. NERI:     As I said, I claim the right of executive privilege no further discussions on the...

 

SEN. CAYETANO, (P):  Ah, so that’s the part where you invoke your executive privilege, is that the same thing or is this new, this invocation of executive privilege?

 

                                    My question is, after you had mentioned the 200 million and she said “Don’t accept,” was there any other statement from her as to what to do with the project?

 

 

MR. NERI:    As I said, it was part of a longer conversation, Your Honor, so...

 

SEN. CAYETANO, (P).  A longer conversation in that same-- part of that conversation on an ongoing day-to-day, week-to-week conversation?

 

MR. NERI:   She calls me regularly, Your Honor, to discuss various matters.

 

SEN. CAYETANO, (P):  But in connection with, “Ma’am, na-offer-an ako ng 200.” -- “Ah, don’t accept, next topic,” ganoon ba yon?  Or was there like, “Alam mo, magandang project sana ‘yan, eh bakit naman ganyan.”

 

MR. NERI:    As I said, Your Honor, beyond that I would not want to go any further, Your Honor.

 

SEN. CAYETANO, (P):  I just can’t hear you.

 

MR. NERI:     Beyond what I said, Your Honor, I’d like to invoke the right of executive privilege.

 

 

 

          On 13 November 2007, the Blue Ribbon Committee issued a subpoena ad testificandum[8] requiring petitioner to appear again before it and testify further on 20 November 2007.

 

          On 15 November 2007, Executive Secretary Eduardo Ermita (Executive Secretary Ermita) addressed a letter (Ermita Letter) to respondent Blue Ribbon Committee Chair Alan Peter S. Cayetano requesting that petitioner’s testimony on 20 November 2007 be dispensed with because he was invoking executive privilege “By Order of the President.”  Executive Secretary Ermita explained: 

 

          Specifically, Sec. Neri sought guidance on the possible invocation of executive privilege on the following questions, to wit:

 

            a)  Whether the President followed up the (NBN) project?

 

            b)  Were you dictated to prioritize the ZTE?

 

            c)  Whether the President said to go ahead and approve the project after being told about the alleged bribe?

 

            Following the ruling in Senate vs. Ermita, the foregoing questions fall under conversations and correspondence between the President and public officials which are considered executive privilege (Almonte v Vazquez, G.R. 95367, 23 May 1995; Chavez v PEA, G.R. 133250, July 9, 2002).  Maintaining the confidentiality of conversations of the President is necessary in the exercise of her executive and policy decision making process.  The expectation of a President to the confidentiality of her conversations and correspondences, like the value which we accord deference for the privacy of all citizens, is the necessity for protection of the public interest in candid, objective, and even blunt or harsh opinions in Presidential decision-making.  Disclosure of conversations of the President will have a chilling effect on the President, and will hamper her in the effective discharge of her duties and responsibilities, is she is not protected by the confidentiality of her conversations.

 

            The context in which executive privilege is being invoked is that the information sought to be disclosed might impair our diplomatic as well as economic relations with the People’s Republic of China.  Given the confidential nature in which these information were conveyed to the President, he cannot provide the Committee any further details of these conversations, without disclosing the very thing the privilege is designed to protect.

 

            In light of the above considerations, this Office is constrained to invoke the settled doctrine of executive privilege as defined in Senate vs. Ermita, and has advised Secretary Neri accordingly.[9]

 

           

 

          Consequently, petitioner did not appear before respondents on 20 November 2007. Petitioner assumed that the only matters on which respondents would question him were exclusively related to his further discussions with the President relating to the NBN Project.

 

          On 22 November 2007, respondents issued the letter requiring petitioner to show cause why he should not be cited in contempt for his failure to appear at the 20 November 2007 hearing.[10]  In a letter dated 29 November 2007, petitioner personally replied to respondents, requesting to be furnished in advance new matters, if any, which respondents would like to ask him other than the three questions for which Executive Secretary Ermita had already claimed executive privilege.[11]

 

          On 7 December 2007, petitioner filed the initial Petition for certiorari with a prayer for the issuance of a temporary restraining order to enjoin respondents from citing him in contempt.

 

          On 30 January 2008, respondents issued an order for the arrest of petitioner for his failure to appear at the hearings of the Senate Committees on 18 September 2007, 20 September 2007, 25 October 2007, and 20 November 2007.[12]  On the same day, petitioner wrote respondents and Senate President Manny Villar seeking a reconsideration of the issuance of the arrest order. 

 

          On 1 February 2008, petitioner filed with this Court a supplemental petition for certiorari with an urgent application for a temporary restraining order or preliminary injunction seeking to nullify the arrest order and to enjoin respondents from implementing such order. 

         

          On 5 February 2008, the Court issued a resolution requiring respondents to Comment on the Petition and supplemental petition and to observe the status quo prevailing prior to respondents' Order of 30 January 2008.  The Court further resolved to set the Petition for hearing on the merits and on the Status Quo Ante Order on 4 March 2008.

 

          The Court heard the parties in oral arguments on 4 March 2008, on the following issues:

1.      What communications between the President and petitioner Neri are covered by the principle of ‘executive privilege’?

 

1.a  Did Executive Secretary Ermita correctly invoke the principle of executive privilege, by order of the President, to cover (i) conversations of the President in the exercise of her executive and policy decision-making and (ii) information, which might impair our diplomatic as well as economic relations with the People’s Republic of China?

 

1.b  Did petitioner Neri correctly invoke executive privilege to avoid testifying on his conversations with the President on the NBN contract on his assertions that the said conversations “dealt with delicate and sensitive national security and diplomatic matters relating to the impact of bribery scandal involving high government officials and the possible loss of confidence of foreign investors and lenders in the Philippines” xxx, within the principles laid down in Senate v. Ermita (488 SCRA 1 [2006])?

 

1.c Will the claim of executive privilege in this case violate the following provisions of the Constitution:

 

Sec. 28, Art II              (Full public disclosure of all transactions involving public interest)

 

Sec. 7, Art. III              (The right of the people to information on matters of public concern)

 

Sec. 1, Art. XI              (Public office is a public trust)

 

Sec. 17, Art. VII           (The President shall ensure that the laws be faithfully executed)

 

and the due process clause and the principle of separation of powers?

 

2.      What is the proper procedure to be followed in invoking executive privilege?

 

3.      Did the Senate Committees grave[ly] abuse their discretion in ordering the arrest of petitioner for non-compliance with the subpoena?

 

 

     After the oral arguments, the Office of the Solicitor General (OSG) filed on 17 March 2008 a Motion for Leave to Intervene and to Admit Attached Memorandum.  The OSG argues that petitioner’s discussions with the President are covered by executive privilege.  The OSG assails the validity of the Senate’s Rules of Procedure Governing Inquiries in Aid of Legislation on the ground of lack of publication.  On 18 March 2008, the Court granted the OSG’s motion to intervene.

 

          In his Petition, petitioner alleges that the invocation of executive privilege is well founded.  Petitioner claims that his candid discussions with the President were meant to explore options in crafting policy decisions.  Petitioner further argues that the invocation of executive privilege was “timely, upon authority of the President, and within the parameters laid down in Senate v. Ermita and United States v. Reynolds.”  Petitioner also maintains that his non-appearance at the 20 November 2007 hearing was due to the order of the President herself, invoking executive privilege.  Therefore, petitioner asserts that the show cause order was issued with grave abuse of discretion, hence void. 

 

          In his supplemental petition, petitioner argues, among others, that the issuance of the arrest order was another grave abuse of discretion because he did not commit any contumacious act.  Petitioner contends that Executive Secretary Ermita correctly invoked executive privilege in response to the subpoena issued by respondents for petitioner to testify at the 20 November 2007 hearing.  Petitioner also impugns the validity of the Senate’s Rules of Procedure Governing Inquiries in Aid of Legislation for lack of publication for the 14th Congress.

 

          Petitioner also alleges that respondents' order of arrest preempted this Court's action on his initial Petition.  Petitioner claims that “this order of arrest elides, and side-steps, the President's invocation of executive privilege in behalf of petitioner.”

 

 

 

          In their Comment, respondents counter that there is no justification for petitioner's invocation of executive privilege. Respondents assert that petitioner's sweeping claim of executive privilege does not authorize his absolute refusal to appear and testify before them.  Respondents argue that petitioner failed to overcome the presumption against executive secrecy and in favor of disclosure, as required in Senate v. Ermita.[13] 

 

Respondents also claim that petitioner's justification violates the constitutional and statutory standards for public officers.  Respondents further maintain that the grounds invoked by petitioner are mere speculations and presumptions.  Likewise, respondents insist that the testimony of petitioner is material and pertinent in aid of legislation.  Respondents point out that several bills relating to the inquiry have already been filed in aid of legislation. Respondents also stress that even assuming that petitioner timely invoked executive privilege, this privilege does not extend to criminal activities.    

         

The Issues

 

          The issues raised in this petition may be summarized as follows:

 

1.       Whether Executive Secretary Ermita correctly invoked executive privilege on the three questions mentioned in his 15 November 2007 letter to the Senate Blue Ribbon Committee;

 

2.       Whether the Senate’s Rules of Procedure Governing Inquiries in Aid of Legislation were duly published; and

 

3.       Whether the Senate’s Order of 30 January 2008 citing petitioner in contempt and directing his arrest is valid.

 

 

 

Discussion

 

 

1.     Overview of Executive Privilege

 

 

      Executive privilege is the implied constitutional power of the President to withhold information requested by other branches of the government.  The Constitution does not expressly grant this power to the President but courts have long recognized implied Presidential powers if “necessary and proper”[14] in carrying out powers and functions expressly granted to the Executive under the Constitution. 

 

       In the United States, executive privilege was first recognized as an implied constitutional power of the President in the 1973 case of United States v. Nixon.[15]  U.S. Presidents, however, have asserted executive privilege since the time of the first President, George Washington.[16]  In this jurisdiction, several decisions have recognized executive privilege starting with the 1995 case of Almonte v. Vasquez,[17] and the most recent being the 2002 case of Chavez v. Public Estates Authority[18] and the 2006 case of Senate v. Ermita.[19]

 

   As Commander-in-Chief of the Armed Forces[20] and as Chief Executive,[21] the President is ultimately responsible for military and national security matters affecting the nation. In the discharge of this responsibility, the President may find it necessary to withhold sensitive military and national security secrets from the Legislature or the public. 

 

      As the official in control of the nation’s foreign service by virtue of the President’s control of all executive departments, bureaus and offices,[22] the President is the chief implementer of the foreign policy relations of the State.  The President’s role as chief implementer of the State’s foreign policy is reinforced by the President’s constitutional power to negotiate and enter into treaties and international agreements.[23]  In the discharge of this responsibility, the President may find it necessary to refuse disclosure of sensitive diplomatic secrets to the Legislature or the public.  Traditionally, states have conducted diplomacy with considerable secrecy.  There is every expectation that a state will not imprudently reveal secrets that its allies have shared with it. 

 

     There is also the need to protect the confidentiality of the internal deliberations of the President with his Cabinet and advisers. To encourage candid discussions and thorough exchange of views, the President’s communications with his Cabinet and advisers need to be shielded from the glare of publicity.  Otherwise, the Cabinet and other presidential advisers may be reluctant to discuss freely with the President policy issues and executive matters knowing that their discussions will be publicly disclosed, thus depriving the President of candid advice. 

 

          Executive privilege, however, is not absolute.  The interest of protecting military, national security and diplomatic secrets, as well as Presidential communications, must be weighed against other constitutionally recognized interests.   There is the declared state policy of full public disclosure of all transactions involving public interest,[24] the right of the people to information on matters of public concern,[25]  the accountability of public officers,[26]  the power of legislative inquiry,[27]  and the judicial power to secure testimonial and documentary evidence in deciding cases.[28]  

 

     The balancing of interests – between executive privilege on one hand and the other competing constitutionally recognized interests on the other hand - is a function of the courts.  The courts will have to decide the issue based on the factual circumstances of each case.  This is how conflicts on executive privilege between the Executive and the Legislature,[29] and between the Executive and the Judiciary,[30] have been decided by the courts. 

 

          The Judiciary, however, will consider executive privilege only if the issues cannot be resolved on some other legal grounds.[31] In conflicts between the Executive and the Legislature involving executive privilege, the Judiciary encourages negotiation between the Executive and Legislature as the preferred route of conflict resolution.[32]  Only if judicial resolution is unavoidable will courts resolve such disputes between the Executive and Legislature.[33]

 

           Information covered by executive privilege remains confidential even after the expiry of the terms of office of the President, Cabinet members and presidential advisers. Thus, a former President can assert executive privilege.[34]  The character of executive privilege attaches to the information and not to the person.  Executive privilege is for the benefit of the State and not for the benefit of the office holder.  Even death does not extinguish the confidentiality of information covered by executive privilege.

 

     Executive privilege must be exercised by the President in pursuance of official powers and functions.  Executive privilege cannot be invoked to hide a crime because the President is neither empowered nor tasked to conceal a crime.[35]  On the contrary, the President has the constitutional duty to enforce criminal laws and cause the prosecution of crimes.[36] 

 

          Executive privilege cannot also be used to hide private matters, like private financial transactions of the President.  Private matters are those not undertaken pursuant to the lawful powers and official functions of the Executive.  However, like all citizens, the President has a constitutional right to privacy.[37]  In conducting inquiries, the Legislature must respect the right to privacy of citizens, including the President’s.

 

          Executive privilege is rooted in the separation of powers.[38]  Executive privilege is an implied constitutional power because it is necessary and proper to carry out the express constitutional powers and functions of the Executive free from the encroachment of the other co-equal and co-ordinate branches of government.    Executive privilege springs from the supremacy of each branch within its own assigned area of constitutional powers and functions.[39]

 

     Executive privilege can be invoked only by the President who is the sole Executive in whom is vested all executive power under the Constitution.[40]  However, the Executive Secretary can invoke executive privilege “By Order of the President,” which means the President personally instructed the Executive Secretary to invoke executive privilege in a particular circumstance.[41] 

 

          Executive privilege must be invoked with specificity sufficient to inform the Legislature and the Judiciary that the matter claimed as privileged refers to military, national security or diplomatic secrets, or to confidential Presidential communications.[42]  A claim of executive privilege accompanied by sufficient specificity gives rise to a presumptive executive privilege. A generalized assertion of executive privilege, without external evidence or circumstances indicating that the matter refers to any of the recognized categories of executive privilege, will not give rise to presumptive executive privilege.

 

If there is doubt whether presumptive privilege exists, the court may require in camera inspection of so much of the evidence as may be necessary to determine whether the claim of executive privilege is justified.[43]   Once presumptive executive privilege is established, the court will then weigh the need for such executive privilege against the need for other constitutionally recognized interests. 

 

          Executive privilege must be invoked after the question is asked by the legislative committee, not before.  A witness cannot raise hypothetical questions that the committee may ask, claim executive privilege on such questions, and on that basis refuse to appear before the legislative committee.   If the legislative committee furnished in advance the questions to the witness, the witness must bring with him the letter of the President or Executive Secretary invoking executive privilege and stating the reasons for such claim. 

 

          If the legislative committee did not furnish in advance the questions, the witness must first appear before the legislative committee, wait for the question to be asked, and then raise executive privilege. The legislative committee must then give the witness sufficient time to consult the President or Executive Secretary whether the President will claim executive privilege.  At the next hearing, the witness can bring with him the letter of the President or Executive Secretary, and if he fails to bring such letter, the witness must answer the question.

 

          There are other categories of government information which are considered confidential but are not strictly of the same status as those falling under the President’s executive privilege. An example of such confidential information is the identity of an informer which is made confidential by contract between the government and the informer.[44]  The privilege character of the information is contractual in nature.  There are also laws that classify the identity of an informer as confidential.[45]   The privilege character of the information is conferred by the Legislature and not by the Executive’s implied power of executive privilege under the Constitution.

 

          There is also the category of government information that is confidential while the deliberative process of agency executives is on-going, but becomes public information once an agency decision or action is taken.   Thus, a committee that evaluates bids of government contracts has a right to keep its deliberations and written communications confidential.  The purpose of the deliberative process privilege is to give agency executives freedom to discuss competing bids in private without outside pressure. However, once they take a definite action, like deciding the best bid, their deliberations and written communications form part of government records accessible by the public.[46]   

   Confidential information under the deliberative process privilege is different from the President’s executive privilege.  Military, national security, and diplomatic secrets, as well as Presidential communications, remain confidential without time limit.  The confidentiality of matters falling under the President’s executive privilege remains as long as the need to keep them confidential outweighs the need for public disclosure. 

 

     Then there is the category of government information that must be kept temporarily confidential because to disclose them immediately would frustrate the enforcement of laws. In an entrapment operation of drug pushers, the identity of the undercover police agents, informers and drug suspects may not be disclosed publicly until after the operation is concluded.   However, during the trial, the identity of the undercover police agents and informers must be disclosed if their testimony is introduced in evidence.

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