Practice question
A bill creates a subsidiary wholly owned by a government corporation and directs it to invest public funds. To attract commercial partners, the bill states that neither the subsidiary nor those investments may ever be examined by COA. Which constitutional objection is decisive?
- Commercial activity automatically makes the public money private.
- Only the subsidiary's directors may decide the reach of constitutional audit.
- Article IX-D, Section 3 forbids laws exempting government entities or subsidiaries in any guise, or investments of public funds, from COA jurisdiction.
- COA may audit only cash held inside its own building.
- An audit exemption is valid whenever a statute uses the word subsidiary.
Legal references
- 1987 Constitution, Article IX D Section 3: https://lawphil.net/consti/cons1987.html
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