[Answer/discuss the question below, or see 2017 bar exam Political Law Instructions; 2017 Political Law Questions: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 13, 14, and 15; See also 2017 Bar Exam: Information, Discussions, Tips, Questions and Results]
The Congress establishes by law Philippine Funds, Inc., a private corporation, to receive foreign donations coming from abroad during national and local calamities and disasters, and to enable the unhampered and speedy disbursements of the donations through the mere action of its Board of Directors. Thereby, delays in the release of the donated funds occasioned by the stringent rules of procurement would be avoided. Also, the releases would not come under the jurisdiction of the Commission on Audit (COA).
(a) Is the law establishing Philippine Funds, Inc. constitutional? Explain your answer. (3%)
(b) Can the Congress pass the law that would exempt the foreign grants from the jurisdiction of the COA? Explain your answer. (3%)