‘Exploration deal unconstitutional’ | Joel R. San Juan

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‘Exploration deal unconstitutional’ | Joel R. San Juan
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The SC declared as unconstitutional the tripartite agreement for Joint Marine Seismic Undertaking (JMSU) entered into by the Philippine government with China and Vietnam during the term of President Gloria Macapagal-Arroyo in 2005. Know more:

The Supreme Court on Tuesday declared as unconstitutional the tripartite agreement for Joint Marine Seismic Undertaking entered into by the Philippine government with China and Vietnam during the term of President Gloria Macapagal-Arroyo in 2005.

Voting 12-2-1, the Court en banc ruled that the JMSU is unconstitutional for allowing wholly-owned foreign corporations to participate in the exploration of the country’s natural resources without observing the safeguards provided in Section 2, Article XII of the 1987 Constitution. Petitioners argued that the JMSU was illegal as it allowed foreign corporations wholly-owned by China and Vietnam to undertake large-scale exploration of the country’s petroleum resources, in violation of the of the Constitutional provision which reserves the EDU of natural resources to Filipino citizens, or corporations or associations at least 60 percent of whose capital is owned by such citizens.

The agreement covers 6 islands claimed and occupied by the Philippines in Spratly such as Pag-asa Island, Likas Island, Lawak Island, Kota Island, Patag Island and Panata Island. Citing the text of the fifth whereas clause of the JMSU, which states the Parties “expressed desire to engage in a joint research of petroleum resource potential of a certain area of the South China Sea as a pre-exploration activity,” the Court said that it is clear that the JMSU was executed for the purpose of determining if petroleum exists in the agreement area.

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