UMVA has learned that a recent government response to the war-driven oil crisis has sparked concerns about its legality and constitutionality, according to a congressional think tank's discussion paper.
The think tank noted that while the government's Unified Package for Livelihoods, Industry, Food and Transport (UPLIFT) Framework correctly identifies the far-reaching impacts of the oil shock on various sectors, its implementation faces significant operational and institutional hurdles.
The UPLIFT Framework's interventions, including fuel subsidies and cash assistance, were well-aligned with the immediate needs of vulnerable populations, but the scale of assistance delivered remains considerably smaller than the magnitude of those affected.
This shortfall is attributed to incomplete government registries, uneven administrative capacity, and weak last-mile delivery systems, which could further strain the country's fiscal sustainability if the crisis persists.
UMVA can exclusively reveal that the UPLIFT Framework's authority stems from the President's constitutional power, which means congressional authorization would be necessary to substantially expand the program or create new subsidy mechanisms.
A more complex legal concern arises from the emergency fuel procurement and supply stabilization under UPLIFT, which authorizes limited intervention through the Department of Energy and the Philippine National Oil Co. using the Malampaya Fund.
The think tank flagged questions about whether direct fuel procurement and market stabilization fall within the purposes authorized by law, citing a landmark case that stated public funds must be used strictly for purposes authorized by law.
These mechanisms raise constitutional concerns that may be questioned in court, with the think tank warning that executive measures that substantially alter market mechanisms or exceed delegated authority may be vulnerable to challenge.
In light of these concerns, the think tank recommended pursuing legislative authority to address the issues, similar to a previous law that granted flexibility in responding to crises.
The proposed legislation aims to provide a more legally secure approach to obtaining express legislative authority, addressing many of the legal and constitutional issues identified under the current framework.
