II. Constitutional And Legal Framework> B. RA 7160 [LGC]> 3.

Declaration of Policy [Sec 2,

LGC1]> Local Autonomy and National Accountability
San Juan v Civil Service Commission
April 19, 1991 GUTIERREZ, JR., J
FACTS:
Petitioner Governor San Juan prays for the nullification of CSC resolutions upholding the
appointment of respondent, Almajose as Provincial Budget Officer (PBO) of Rizal in this petition for
certiorari.
Previously, the position of PBO for Rizal was left vacant by its former holder.
Petitioner informed DBM Region IVs director, Abella that a certain Dalisay Santos assumed office as
Acting PBO (Santo was the Municipal BO of Taytay, Rizal before discharging functions of acting
PBO). Futhermore, petitioner requested Abella to endorse the appointment of Santos.
However, Abella recommended the appointment of Almajose on the basis of a comparative study of
all MBOs of Rizal. According to Abella, respondent was the most qualified since she was the only
CPA among the contenders
DBM USec Cabuquit signed the appointment papers of Almajose
In a letter addressed to Sec Carague, petitioner reiterated the request to appoint Santos, unaware
of the appointment made by Cabuquit
DBM regional director Galvez wrote the petitioner that Santos and his other recommendees did not
meet the minimum requirements under Local Budget Circular No. 31 and w/n through oversight
further required the petitioner to submit at least three other qualified nominees
Petitioner, having been informed of Almajoses appointment protested on the ground that Cabuquit
is not legally authorized to appoint the PBO and that under EO 112, it is the governor, not the
regional director, who has the power to recommend nominees for the position
DBM issued a memo ruling that petitioners protest is not meritorious considering that DBM validly
exercised its prerogative in filling up the position since none of the petitioners nominees met the
requirements.
Petitioners MR was denied by DBM Sec.
Subsequently, petitioner wrote the CSC reiterating his protest. CSC issued resolutions upholding
Almajoses appointment, hence this petition.

Section 2. Declaration of Policy. (LGC)(a) It is hereby declared the policy of the State that the territorial
and political subdivisions of the State shall enjoy genuine and meaningful local autonomy to enable them to
attain their fullest development as self-reliant communities and make them more effective partners in the
attainment of national goals. Toward this end, the State shall provide for a more responsive and accountable
local government structure instituted through a system of decentralization whereby local government units
shall be given more powers, authority, responsibilities, and resources. The process of decentralization shall
proceed from the national government to the local government units.

(b) It is also the policy of the State to ensure the accountability of local government units through the
institution of effective mechanisms of recall, initiative and referendum.

(c) It is likewise the policy of the State to require all national agencies and offices to conduct periodic
consultations with appropriate local government units, nongovernmental and people's organizations, and other
concerned sectors of the community before any project or program is implemented in their respective
jurisdictions.1aw

ISSUE/HOLDING/RATIO: W/N private respondent is lawfully entitled to discharge the functions

of PBO pursuant to the appointment made by DBMs USec upon recommendation of DBM
Region IVs director. NO. Petition granted, appointment of respondent Cecilia Almajose is nullified.
Petitioner: Sole right and privilege to recommend nominees belong to petitioner and the appointee
should come only from his nominees. [see Sec 1 of EO 112 2] The phrase "upon recommendation of
the local chief executive concerned" must be given mandatory application in consonance with
the state policy of local autonomy as guaranteed by the 1987 Constitution under Art. II, Sec.
253 and Art. X, Sec. 24 thereof. His power to recommend cannot validly be defeated by a mere
administrative issuance of DBM.
Respondent: As required by E.O. No. 112, the DBM Secretary may choose from among the
recommendees of the Provincial Governor who are thus qualified and eligible for appointment to the
position. Notwithstanding, the recommendation of the local chief executive is merely directory and
not a condition sine qua non to the exercise by the Secretary of DBM of his appointing prerogative. To rule
otherwise would in effect give E.O. No. 112 a different interpretation or construction not intended therein,
taking into consideration that said officer has been nationalized and is directly under the control and
supervision of the DBM Secretary or through his duly authorized representative. It cannot be gainsaid that
said national officer has a similar role in the LGUhence, to preserve and maintain the independence
of said officer from the LGU, he must be primarily the choice of the national appointing official,
and the exercise thereof must not be unduly hampered or interfered with, provided the
appointee finally selected meets the requirements for the position
SC: The issue involves the application of local autonomy; where a law is capable of two
interpretations, one in favor of centralized power and the other beneficial to local autonomy, the scales
must be weighed in favor of autonomy. The exercise of greater local autonomy is even more marked in the
present Constitution. [see Art. II, Sec. 25 and Art. X, Sec. 2] Thus, when the CSC interpreted the
recommending power of the Provincial Governor as purely directory, it went against the letter
and spirit of the constitutional provisions on local autonomy. If the DBM Secretary jealously hoards
the entirety of budgetary powers and ignores the right of local governments to develop self-reliance and
resoluteness in the handling of their own funds, the goal of meaningful local autonomy is frustrated and
set back.
The right given by Local Budget Circular No. 31 5 is ultra vires and is, accordingly, set aside. The DBM may
appoint only from the list of qualified recommendees nominated by the Governor. If none is qualified, he
must return the list of nominees to the Governor explaining why no one meets the legal requirements and
ask for new recommendees who have the necessary eligibilities and qualifications.

2 Sec 1 (EO 112). All budget officers of provinces, cities and municipalities shall be appointed henceforth by the

Minister of Budget and Management upon recommendation of the local chief executive concerned, subject to
civil service law, rules and regulations, and they shall be placed under the administrative control and technical
supervision of the Ministry of Budget and Management.

3 Sec. 25 (Art II, 1987 Consti). The State shall ensure the autonomy of local governments

4 Sections 2 and 3 (Art X, 1987 Consti):

Sec. 2. The territorial and political subdivisions shall enjoy local autonomy.
Sec. 3. The Congress shall enact a local government code which shall provide for a more responsive and
accountable local government structure instituted through a system of decentralization with effective
mechanisms of recall, initiative, and referendum, allocate among the different local government units their
powers, responsibilities, and resources, and provide for the qualifications, election, appointment and removal,
term, salaries, powers and functions and duties of local officials, and all other matters relating to the
organization and operation of the local units.

5 Sec. 6.0 (Local Budget Circular No. 31). The DBM reserves the right to fill up any existing
vacancy where none of the nominees of the local chief executive meet the prescribed
requirements.