GARCIA VS.

BOARD OF INVESTMENTS

Facts:

Taiwanese investors established the Bataan Petrochemical Corp. (BPC), which was
granted a certificate of registration by the respondent Board of Investments (BOI) as a
new domestic petrochemical manufacturer. BPC then suggested amending its initial
registration to include, among other things, changing the feedstock from naphtha alone
to "naphtha and/or LPG" and relocating the work site from Bataan to Batangas. It
should be emphasized that a wholly government-owned firm in Batangas produces 60%
of the national production of naphtha, whilst Shell produces insufficiently locally,
needing importation. It should also be emphasized that the original intended location in
Bataan is administered, managed, and owned by the Philippine National Oil Company
(PNOC), allowing the government to participate in the business if the project proceeds
there. Despite strong resistance from Congress and President Aquino's stated preference
for the original plant site, the BOI authorized the proposed revisions, noting that "the
BOI or the government for that matter could only recommend as to where the project
should be built." The BOI acknowledges and respects the principle that the final choice
remains with the proponent.
 

Issue:

Whether or not the BOI commit a grave abuse of discretion when it yielded to the wishes of the
investor, notwithstanding national interest.

Ruling:

Yes, the BOI commit a grave abuse of discretion when it yielded to the wishes of the investor,
notwithstanding national interest.

In the light of all the clear advantages manifest in the plant’s remaining in Bataan,
practically nothing is shown to justify the transfer to Batangas except a near-absolute
discretion given by BOI to investors not only to freely choose the site but to transfer it
from their own first choice for reasons which remain murky to say the least. This is a
repudiation of the independent policy of the govt expressed in numerous laws and the
Constitution to run its own affairs the way it deems best for the national interest. The
devt of a self-reliant and independent national economy effectively controlled by
Filipinos is mandated in Art II, Sec 19 of the Constitution. In this case, it is but an
ordinary investor whom the BOI allows to dictate what we shall do with our heritage.