FACTS: Pres. Aquino signed E. O. No. 1 establishing Philippine Truth Commission of 2010 (PTC) dated July 30, 2010. PTC is a mere ad hoc body formed under the Office of the President with the primary task to investigate reports of graft and corruption committed by third-level public officers and employees, their co-principals, accomplices and accessories during the previous administration, and to submit its finding and recommendations to the President, Congress and the Ombudsman. PTC has all the powers of an investigative body. But it is not a quasi-judicial body as it cannot adjudicate, arbitrate, resolve, settle, or render awards in disputes between contending parties. All it can do is gather, collect and assess evidence of graft and corruption and make recommendations. It may have subpoena powers but it has no power to cite people in contempt, much less order their arrest. Although it is a fact-finding body, it cannot determine from such facts if probable cause exists as to warrant the filing of an information in our courts of law. Petitioners asked the Court to declare it unconstitutional and to enjoin the PTC from performing its functions.
ISSUE: Whether or not E.O. No. 1 violates the principle of separation of powers by usurping the powers of Congress to create and to appropriate funds for public offices, agencies and commissions;
RATIO DECIDENDI: There will be no appropriation but only an allotment or allocations of existing funds already appropriated. There is no usurpation on the part of the Executive of the power of Congress to appropriate funds. There is no need to specify the amount to be earmarked for the operation of the commission because, whatever funds the Congress has provided for the Office of the President will be the very source of the funds for the commission. The amount that would be allocated to the PTC shall be subject to existing auditing rules and regulations so there is no impropriety in the funding.