SURIGAO DEL NORTE, Philippines — In a landmark decision hailed as a victory for Indigenous Peoples’ rights, the Supreme Court (SC) 𝘌𝘯 𝘉𝘢𝘯𝘤 has upheld the disallowance of funds meant for the Mamanwa Tribes’ socio-economic programs in Surigao del Norte that were instead used by the National Commission on Indigenous Peoples (NCIP) Regional Office for its own operational expenses.
The ruling reinforces the principle that trust funds held by government agencies must be used strictly for the purpose for which they were created, affirming the Mamanwa’s right to benefit directly from funds intended for their welfare and development.
In a decision penned by retired Associate Justice Mario V. Lopez, the SC stressed that diverting trust funds violates Presidential Decree No. 1445, or the Government Auditing Code of the Philippines, and undermines the intent of agreements protecting Indigenous Cultural Communities (ICCs).
The case stemmed from a 2009 Memorandum of Agreement (MOA) between Taganito Mining Corporation (TMC), Taganito HPAL Nickel Corporation (THPAL), the Mamanwa Tribes of Taganito and Urbiztondo, and NCIP Region XIII. The mining companies committed to provide financial assistance exclusively for socio-economic projects benefiting the Mamanwa communities, with the funds to be held in trust by the NCIP.
However, a subsequent audit by the Commission on Audit (COA) revealed that the NCIP Regional Office had used over ₱1.5 million of the funds for its operational needs in 2013 and 2014—including rent, maintenance, equipment, and communication expenses—contrary to the MOA’s stipulations. COA issued several Notices of Disallowance, prompting appeals from regional officials.
While the NCIP argued that the use of the funds was later supported by Resolusyon No. 14 from tribal leaders and a 2015 Addendum to the MOA, the High Court ruled that neither document could legally alter the original agreement. The Court emphasized that the tribal resolution was merely a recommendation, not a valid amendment to the trust arrangement, and that the Addendum could not retroactively legalize the misuse of funds.
“The tribal resolution alone cannot validly change the trust agreement under the MOA,” the Court stated, adding that allowing such post hoc justifications “would set a dangerous precedent” and open the door to fund misuse in other cases involving Indigenous Peoples.
The SC’s decision underscores that financial assistance provided under mining agreements must serve the intended purpose of improving Indigenous Peoples’ socio-economic conditions, as outlined in the Free and Prior Informed Consent (FPIC) Guidelines under NCIP Administrative Order No. 1, Series of 2006.
For Indigenous communities across the country, the ruling is seen as a significant affirmation of their rights to transparency, accountability, and self-determination in the management of trust funds meant for their welfare. It ensures that such funds cannot be diverted for bureaucratic use or convenience, safeguarding the integrity of agreements forged to mitigate the impacts of mining operations on ancestral lands.
The Supreme Court found NCIP official Ligaya Q. De Guzman liable for approving the disallowed transactions without legal basis but cleared Roselle A. Corvera-Cirunay, who had merely certified the availability of funds.
For many Indigenous advocates, the decision sends a powerful message: government agencies entrusted with funds for Indigenous Peoples must act as stewards—not beneficiaries—of these resources.
The ruling, promulgated on May 20, 2025, in G.R. No. 278177 (Roselle A. Corvera-Cirunay and Ligaya Q. De Guzman v. the Commission on Audit et al.), stands as a milestone in the continuing struggle of Indigenous communities for financial justice and respect for their ancestral rights.