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This case involves R.A. 920, which allocates P 85, 000.00 for the construction,
reconstruction, repair, extension and improvement of Pasig feeder road terminals.
However, at the time of passage, said feeder roads belonged to Zulueta, who was at
that time a senator, and passed through his subdivision. Zulueta offered to donate
said roads to the Municipality of Pasig, Rizal through a letter. The offer was accepted
but no deed of donation was executed thereafter. At the time of the passage of R.A.
920, the roads remained private. Congress passed R.A. 920 under the impression
that the roads were public. In an effort to legally appropriate the lands, Zulueta
executed a deed of donation for the lands in favor of the Republic of the Philippines
5 months after the passing of the Act. Said donation partook in the nature of a
contract with the Government since it was executed with onerous condition: The
within donation is hereby made upon the condition that the Government of the
Republic of the Philippines will use the parcels of land hereby donated for street
purposes only and for no other purposes whatsoever; it being expressly understood
that should the Government of the Republic of the Philippines violate the condition
hereby imposed upon it, the title to the land hereby donated shall, upon such
violation, ipso facto revert to the DONOR, JOSE C. ZULUETA.
Such contracts were unconstitutional, violating the fundamental provision
that prohibits members of Congress from directly or indirectly being financially
interested in any contract of the Government. Governor of Rizal, Pascual, initiated
the action to deem the deed of donation unconstitutional and void ab inito. He was
denied for having no locus standi and has stated no cause of action. The case at
hand is an appeal.
ISSUE/S
W/N the court had jurisdiction over the issue on tax and appropriation
W/N R.A. 920 is constitutional
HELD
"In accordance with the rule that the taxing power must be exercised for
public purposes only, discussed supra sec. 14, money raised by taxation can
be expanded only for public purposes and not for the advantage of private
individuals." (85 C.J.S. pp. 645-646; italics supplied.)
Explaining the reason underlying said rule, Corpus Juris Secundum states:
IMPORTANT LAWS/STATUTES/PROVISIONS/SECTIONS