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Corporation to be Known as the Boy Scouts of the Philippines, within the class of "public corporations" defined by paragraph

CASE DIGEST: BOY SCOUTS OF THE PHILIPPINES v. and to Define its Powers and Purposes" created the BSP as a 2, Article 44 of the Civil Code and governed by the law which
COMMISSION ON AUDIT. G.R. No.177131; June 7, 2011. "public corporation" creates it, pursuant to Article 45 of the same Code. DENIED.

FACTS: This case arose when the COA issued Resolution No. There are three classes of juridical persons under Article 44 of
99-011on August 19, 1999 ("the COA Resolution"), with the the Civil Code and the BSP, as presently constituted under
subject "Defining the Commissions policy with respect to the Republic Act No. 7278,falls under the second
audit of the Boy Scouts of the Philippines." In its whereas classification.Article 44 reads:
clauses, the COA Resolution stated that the BSP was created as
a public corporation under Commonwealth Act No. 111, as Art. 44. The following are juridical persons:
amended by Presidential Decree No. 460 and Republic Act No.
7278; that in Boy Scouts of the Philippines v. National Labor (1) The State and its political subdivisions;
Relations Commission, the Supreme Court ruled that the BSP, (2)Other corporations,institutions and entities for public
as constituted under its charter, was a "government-controlled interest or purpose created by law; their personality begins as
corporation within the meaning of Article IX(B)(2)(1) of the soon as they have been constituted according to law;
Constitution"; and that "the BSP is appropriately regarded as a (3) Corporations, partnerships and associations forprivate
government instrumentality under the 1987 Administrative interest or purposeto which the law grants a juridical
Code." The COA Resolution also cited its constitutional personality, separate and distinct from that of each
mandate under Section 2(1), Article IX (D).Finally, the COA shareholder, partner or member.
Resolution reads:
The BSP, which is a corporation created for a public interest or
NOW THEREFORE, in consideration of the foregoing premises, purpose, is subject to the law creating it under Article 45 of the
the COMMISSION PROPER HAS RESOLVED, AS IT DOES HEREBY Civil Code, which provides:
RESOLVE,to conduct an annual financial audit of the Boy
Scouts of the Philippines in accordance with generally accepted Art. 45.Juridical persons mentioned in Nos. 1 and 2 of the
auditing standards, and express an opinion on whether the preceding article are governed by the laws creating or
financial statements which include the Balance Sheet, the recognizing them.
Income Statement and the Statement of Cash Flows present
fairly its financial position and results of operations. Private corporations are regulated by laws of general
application on the subject.
xxxx
Partnerships and associations for private interest or purpose
BE IT RESOLVED FURTHERMORE, that for purposes of audit are governed by the provisions of this Code concerning
supervision,the Boy Scouts of the Philippines shall be classified partnerships.
among the government corporations belonging to the
Educational, Social, Scientific, Civic and Research Sectorunder The purpose of the BSP as stated in its amended charter shows
the Corporate Audit Office I, to be audited, similar to the that it was created in order to implement a State policy
subsidiary corporations, by employing the team audit approach declared in Article II, Section 13 of the Constitution, which
ISSUE: Does COA have jurisdiction over BSP? reads:

HELD: After looking at the legislative history of its amended Section 13. The State recognizes the vital role of the youth in
charter and carefully studying the applicable laws and the nation-building and shall promote and protect their physical,
arguments of both parties, [the Supreme Court found] that the moral, spiritual, intellectual, and social well-being. It shall
BSP is a public corporation and its funds are subject to the inculcate in the youth patriotism and nationalism, and
COA's audit jurisdiction. encourage their involvement in public and civic affairs.
Limbona vs. Mangelin (G.R. No. 80391) - Digest
The BSP Charter (Commonwealth Act No. 111, approved on Evidently, the BSP, which was created by a special law to serve Facts:
October 31, 1936), entitled "An Act to Create a Public a public purpose in pursuit of a constitutional mandate, comes
Petitioner, Sultan Alimbusar Limbona, was elected Speaker of to rebut their accusations. As it stands, the charges now are
the Regional Legislative Assembly or Batasang Pampook of leveled amount to mere accusations that cannot warrant
Central Mindanao (Assembly). On October 21, 1987 expulsion. Thus, the Court ordered reinstatement of the
Congressman Datu Guimid Matalam, Chairman of the petitioner.
Committee on Muslim Affairs of the House of Representatives,
invited petitioner in his capacity as Speaker of the Assembly of 2. The autonomous governments of Mindanao were organized
Region XII in a consultation/dialogue with local government in Regions 9 and 12 by Presidential Decree No. 1618. In
officials. Petitioner accepted the invitation and informed the relation to the central government, the Presidential Decree
Assembly members through the Assembly Secretary that there provides that “the President shall have the power of general
shall be no session in November as his presence was needed in supervision and control over the Autonomous Regions...” Now,
the house committee hearing of Congress. However, on autonomy is either decentralization of administration or
November 2, 1987, the Assembly held a session in defiance of decentralization of power. There is decentralization of
the Limbona's advice, where he was unseated from his administration when the central government delegates
position. Petitioner prays that the session's proceedings be administrative powers to political subdivisions in order to
declared null and void and be it declared that he was still the broaden the base of government power and in the process to
Speaker of the Assembly. Pending further proceedings of the make local governments “more responsive and accountable,”
case, the SC received a resolution from the Assembly expressly “and ensure their fullest development as self-reliant
expelling petitioner's membership therefrom. Respondents communities and make them more effective partners in the
argue that petitioner had "filed a case before the Supreme pursuit of national development and social progress.” At the
Court against some members of the Assembly on a question same time, it relieves the central government of the burden of
which should have been resolved within the confines of the managing local affairs and enables it to concentrate on
Assembly," for which the respondents now submit that the national concerns. The president exercises “general
petition had become "moot and academic" because of its supervision” over them, but only to “ensure that local affairs
resolution.  are administered according to law.” He has not control over
their acts in the sense that he can substitute their judgments
Issues: with his own. Decentralization of power, on the other hand,
1. Whether or not the expulsion of the petitioner involves an abdication of political power in the favor of local
(pending litigation) has made the case moot and government units declared to be autonomous. In that case, the
academic. autonomous government is free to chart its own destiny and
2. Are the so-called autonomous governments of shape its future with minimum intervention from central
Mindanao subject to the jurisdiction of the national authorities. 
courts? In other words, what is the extent of self-
government given to the two autonomous governments According to the Supreme Court, an examination of the very
of Region 9 and 12? Presidential Decree creating the autonomous governments of
Mindanao persuades us to believe that they were never meant
to exercise autonomy through decentralization of power. The
Ruling: Presidential Decree, in the first place, mandates that “the
President shall have the power of general supervision and
1. The Court does not agree that the case is moot and control over Autonomous Regions.” In the second place, the
academic simply by reason of the expulsion resolution that was Sangguniang Pampook, their legislative arm, is made to
issued. If the expulsion was done purposely to make the dischage chiefly administrative services. Thus, the SC assumes
petition moot and academic, it will not make it academic. On jurisdiction.
the ground of due process, the Court hold that the expulsion is
without force and effect. First, there is no showing that the Upon the facts presented, the Court finds two sessions held on BASCO v. PAGCOR, G.R. No. 91649 (Digested Case)
Sanggunian had conducted an investigation. It also does not November to be invalid. Wherefore, the petition is Granted. G.R. No. 91649             May 14, 1991
appear that the petitioner had been made aware that he was The petitioner is reinstated as Member and speaker of the
charged with graft and corruption before his colleagues. It Sanggunian.
cannot be said therefore that he was accorded any opportunity
ATTORNEYS HUMBERTO BASCO, EDILBERTO BALCE, governments to regulate gambling thru the grant of "franchise,
SOCRATES MARANAN AND LORENZO licenses or permits" was withdrawn by P.D. No. 771 and was
SANCHEZ,petitioners, v. PHILIPPINE AMUSEMENTS AND vested exclusively on the National Government. Furthermore,
GAMING CORPORATION (PAGCOR), respondent. LGUs' have no power to tax instrumentalities of the gov't such
as PAGCOR which exercises governmental functions of
regulating gambling activities.
Re: Principle of Local Autonomy
(3) No.  The clause does not preclude classification of
FACTS: The PH Amusement and Gaming Corp. was created by individuals who may be accorded different treatment under the
PD 1067-A and granted a franchise under PD 1067-B. law as long as the classification is not unreasonable or
Subsequently, under PD 1869, the Government enabled it to arbitrary. A law does not have to operate in equal force on all
regulate and centralize all games of chance authorized by persons or things to be conformable to Article III, Section 1 of
existing franchise or permitted by law, under declared policy. the Constitution. The Constitution does not require situations
But the petitioners think otherwise, that is why, they filed the which are different in fact or opinion to be treated in law as
instant petition seeking to annul the PAGCOR Charter — PD though they were the same.
1869, because it is allegedly contrary to morals, public policy
and order, and because of the following issues: (4) No. The judiciary does not settle policy issues. The Court
can only declare what the law is and not what the law should
ISSUES: be. Under our system of government, policy issues are within
(1) WON it waived the Manila City gov't's right to impose taxes the domain of the political branches of government and of the
and license fees, which is recognized by law. people themselves as the repository of all state power. On the
issue of monopoly, the same is not necessarily prohibited by
(2) WON it has intruded into the LGUs' right to impose local the Constitution. The state must still decide whether public
taxes and license fees, and thus contrary to the principle of interest demands that monopolies be "regulated" or prohibited.
local autonomy enshrined in the Constitution. Again, this is a matter of policy for the Legislature to decide.
The judiciary can only intervene when there are violations of
(3) WON it violates the equal protection clause as it allows the statutes passed by Congress regulating or prohibiting
some gambling acts but also prohibits other gaming acts. monopolies.

(4) WON it violates the Cory  gov't's policy of being away from
monopolistic and crony economy, and toward free enterprise
and privatization.

HELD:
(1) No. The fact that PAGCOR, under its charter, is exempt from
paying tax of any kind is not violative of the principle of local
autonomy. LGUs' have no inherent right to impose taxes. LGUs'
power to tax must always yield to a legislative act which is
superior having been passed by the state itself which has the
inherent power to tax. The charter of LGUs is subject to control
by Congress as they are mere creatures of Congress.
Congress, therefore, has the power of control over LGUs. And if
Congress can grant the City of Manila the power to tax certain
matters, it can also provide for exemptions or even take back
the power.
Lina, Jr. v. Paño, G.R. No. 129093, [August 30, 2001]
(2) No. LGUs' right to impose license fees on "gambling", has
long been revoked. As early as 1975, the power of local
DOCTRINE: The game of lotto is a game of chance duly ang “Jueteng”. 3 power, the national legislature.
authorized by the national government through an Act of
Congress. Republic Act 1169, as amended by Batas Pambansa As a result of this resolution of denial, respondent Calvento The game of lotto is a game of chance duly authorized by the
Blg. 42, is the law which grants a franchise to the PCSO and filed a complaint for declaratory relief with prayer for national government through an Act of Congress. Republic Act
allows it to operate the lotteries. This statute remains valid preliminary injunction and temporary restraining order. In the 1169, as amended by Batas Pambansa Blg. 42, is the law
today. While lotto is clearly a game of chance, the national said complaint, respondent Calvento asked the Regional Trial which grants a franchise to the PCSO and allows it to operate
government deems it wise and proper to permit it. Hence, the Court of San Pedro Laguna, Branch 93, for the following reliefs: the lotteries. This statute remains valid today. While lotto is
Sangguniang Panlalawigan of Laguna, a local government unit, (1) a preliminary injunction or temporary restraining order, clearly a game of chance, the national government deems it
cannot issue a resolution or an ordinance that would seek to ordering the defendants to refrain from implementing or wise and proper to permit it. Hence, the Sangguniang
prohibit permits. Stated otherwise, what the national enforcing Kapasiyahan Blg. 508, T. 1995; (2) an order requiring Panlalawigan of Laguna, a local government unit, cannot issue
legislature expressly allows by law, such as lotto, a provincial Hon. Municipal Mayor Calixto R. Cataquiz to issue a business a resolution or an ordinance that would seek to prohibit
board may not disallow by ordinance or resolution. permit for the operation of a lotto outlet; and (3) an order permits. Stated otherwise, what the national legislature
annulling or declaring as invalid Kapasiyahan Blg. 508, T. 1995. expressly allows by law, such as lotto, a provincial board may
not disallow by ordinance or resolution.
FACTS: On December 29, 1995, respondent Tony Calvento On February 10, 1997, the respondent judge, Francisco Dizon
was appointed agent by the Philippine Charity Sweepstakes Paño, promulgated his decision enjoining the petitioners from In our system of government, the power of local government
Office (PCSO) to install Terminal OM 20 for the operation of implementing or enforcing resolution or Kapasiyahan Blg. 508, units to legislate and enact ordinances and resolutions is
lotto. He asked Mayor Calixto Cataquiz, Mayor of San Pedro, T. 1995. merely a delegated power coming from Congress. Ours is still a
Laguna, for a mayor’s permit to open the lotto outlet. This was unitary form of government, not a federal state. Being so, any
denied by Mayor Cataquiz in a letter dated February 19, 1996. form of autonomy granted to local governments will
The ground for said denial was an ordinance passed by the necessarily be limited and confined within the extent allowed
Sangguniang Panlalawigan of Laguna entitled Kapasiyahan Blg. ISSUE: WON the local government may deny the by the central authority. Besides, the principle of local
508, T. 1995 which was issued on September 18, 1995. The operation of lotto in the said locality. autonomy under the 1987 Constitution simply means
ordinance reads: “decentralization.” It does not make local governments
sovereign within the state.
ISANG KAPASIYAHAN TINUTUTULAN ANG MGA “ILLEGAL HELD: NO. The ordinance, Kapasiyahan Blg. 508, T. 1995 of
GAMBLING” LALO NA ANG LOTTO SA LALAWIGAN NG LAGUNA the Sangguniang Panlalawigan of Laguna, merely states the
“objection” of the council to the operation of lotto. It is but a
SAPAGKA’T, ang sugal dito sa lalawigan ng Laguna ay talamak mere policy statement on the part of the local council, which is
na; not self-executing. Nor could it serve as a valid ground to
prohibit the operation of the lotto system in the province of
SAPAGKA’T, ang sugal ay nagdudulot ng masasamang Laguna. Even petitioners admit this in their petition. As a policy
impluwensiya lalo’t higit sa mga kabataan; statement expressing the local government’s objection to the
lotto, such resolution is valid. This is part of the local
KUNG KAYA’T DAHIL DITO, at sa mungkahi nina Kgg. Kgd. Juan government’s autonomy to air its views which may be contrary
M. Unico at Kgg. Kgd. Gat-Ala A. Alatiit, pinangalawahan ni Kgg. to that of the national government’s. However, this freedom to
Kgd. Meliton C. Larano at buong pagkakaisang sinangayunan exercise contrary views does not mean that local governments
ng lahat ng dumalo sa pulong; may actually enact ordinances that go against laws duly
enacted by Congress. Given this premise, the assailed
IPINASIYA, na tutulan gaya ng dito ay mahigpit na resolution in this case could not and should not be interpreted
TINUTUTULAN ang ano mang uri ng sugal dito sa lalawigan ng as a measure or ordinance prohibiting the operation of lotto. To
Laguna lalo’t higit ang Lotto; conclude our resolution of the first issue, respondent mayor of
San Pedro cannot avail of Kapasiyahan Bilang 508, Taon 1995,
IPINASIYA PA RIN na hilingin tulad ng dito ay hinihiling sa of the Provincial Board of Laguna as justification to prohibit G.R. No. 79956 January 29, 1990
Panlalawigang pinuno ng Philippine National Police (PNP) Col. lotto in his municipality. For said resolution is nothing but an
[illegible] na mahigpit na pag-ibayuhin ang pagsugpo sa lahat expression of the local legislative unit concerned. The Board’s
ng uri ng illegal na sugal sa buong lalawigan ng Laguna lalo na enactment, like spring water, could not rise above its source of
CORDILLERA BROAD COALITION, petitioner,  FACTS: under E.O. No. 220 and its transitory nature is reinforced in Art.
vs. XXI of R.A. No. 6766.
COMMISSION ON AUDIT, respondent. In April 1986, just after the EDSA Revolution, Fr.
Conrado M. Balweg, S.V.D., broke off on ideological grounds ISSUES:
G.R. No. 82217 January 29, 1990 from the Communist Party of the Philippines (CPP) and its
military arm the New People's Army. (NPA). I Whether or not the issuance of E.O. No. 220 by the President
LILIA YARANON and BONA BAUTISTA, assisted by their has pre-empted Congress from its mandated task of enacting
spouses, BRAULIO D. YARANON and DEMETRIO D. After President Aquino was installed into office by an organic act and created an autonomous region in the
BAUTISTA, JR., respectively; JAMES BRETT and SINAI C. People Power, she advocated a policy of national reconciliation. Cordilleras.
HAMADA, petitioners,  The Cordillera People’s Liberation Army (CPLA) heeded this call
vs. of the President. After the preliminary negotiations, President II Whether or not CAR is a territorial and political subdivision.
THE COMMISSION ON AUDIT, HON. CATALINO Aquino and some members of her Cabinet flew to Mt. Data in
MACARAIG, Executive Secretary, HON. VICENTE JAYME, the Mountain Province on September 13, 1986 and signed with
Secretary of Finance, HON. GUILLERMO N. CARAGUE, Fr. Conrado M. Balweg (As Commander of the CPLA) and Ama III Whether or not the creation of the CAR contravened the
Secretary of Budget and Management, and HON. Mario Yag-ao (as President of Cordillera Bodong Administration, constitutional guarantee of the local autonomy for the
ROSALINA S. CAJUCOM, OIC National Treasurer, the civil government of the CPLA) a ceasefire agreement that provinces (Abra, Benguet, Ifugao, Kalinga-Apayao and
respondents. signified the cessation of hostilities (WHEREAS No. 7, E.O. 220). Mountain Province) and city (Baguio City) which compose the
CAR.
Background of the case: On March 27, 1987, Ambassador Pelaez [Acting as
Chief Negotiator of the government], in pursuance of the
In these consolidated petitions, the constitutionality of September 13, 1986 agreement, flew to the Mansion House,
Executive Order No. 220, dated July 15, 1987, which created Baguio City, and signed with Fr. Balweg (as Chairman of the RULING:
the (Cordillera Administrative Region, is assailed on the Cordillera panel) a joint agreement.
primary ground that it pre-empts the enactment of an organic I The Supreme Court held in the negative. A reading of E.O. No.
act by the Congress and the creation of' the autonomous Pursuant to the above joint agreement, E.O. 220 was 220 will reveal that it does not create the autonomous region
region in the Cordilleras conditional on the approval of the act drafted and signed into law by the President. contemplated in the Constitution. It merely provides for
through a plebiscite. transitory measures in anticipation of the enactment of an
Executive Order No. 220, issued by the President in the organic act and the creation of an autonomous region. In short,
Relative to the creation of autonomous regions, the exercise of her legislative powers under Art. XVIII, sec. 6 of the it prepares the ground for autonomy. This does not necessarily
constitution, in Article X, provides: 1987 Constitution, created the Cordillera Administrative Region conflict with the provisions of the Constitution on autonomous
(CAR) , which covers the provinces of Abra, Benguet, Ifugao, regions. The President, in 1987 still exercising legislative
Kalinga-Apayao and Mountain Province and the City of Baguio powers, as the first Congress had not yet convened, saw it fit
AUTONOMOUS REGIONS to provide for some measures to address the urgent needs of
[secs. 1 and 2]. It was created to accelerate economic and
social growth in the region and to prepare for the the Cordilleras in the meantime that the organic act had not
Sec. 18. The Congress shall enact an organic act for establishment of the autonomous region in the Cordilleras [sec. yet been passed and the autonomous region created. These
each autonomous region with the assistance and participation 3]. The CAR shall have a Cordillera Regional Assembly as a measures we find in E.O. No. 220
of the regional consultative commission composed of policy-formulating body and a Cordillera Executive Board as an
representatives appointed by the President from a list of implementing arm [secs. 7, 8 and 10]. The CAR and the The transitory nature of the CAR does not necessarily mean
nominees from multi-sectoral bodies. The organic act shall Assembly and Executive Board shall exist until such time as that it is, as petitioner Cordillera Broad Coalition asserts, "the
define the basic structure of government for the region the autonomous regional government is established and interim autonomous region in the Cordilleras."
consisting of the executive department and legislative organized [sec. 17].
assembly, both of which shall be elective and representative of
the constituent political units. The organic acts shall likewise The Constitution provides for a basic structure of government
provide for special courts with personal, family and property During the pendency of this case, Republic Act No. 6766 in the autonomous region composed of an elective executive
law jurisdiction consistent with the provisions of this entitled "An Act Providing for an Organic Act for the Cordillera and legislature and special courts with personal, family and
Constitution and national laws. Autonomous Region," was enacted and signed into law. The property law jurisdiction [Art. X, sec. 18]. Using this as a guide,
Act recognizes the CAR and the offices and agencies created we find that E.O. No. 220 did not establish an autonomous
regional government. It created a region, covering a specified xxx xxx xxx for an autonomous regional government with a basic structure
area, for administrative purposes with the main objective of consisting of an executive department and a legislative
coordinating the planning and implementation of programs and Sec. 10. No province, city, municipality, or assembly and special courts with personal, family and property
services. barangay may be created, divided, merged, law jurisdiction in each of the autonomous regions [Art. X, sec.
abolished, or its boundary substantially altered, 18].
The bodies created by E.O. No. 220 do not supplant the except in accordance with the criteria
existing local governmental structure, nor are they established in the local government code and As we have said earlier, the CAR is a mere transitory
autonomous government agencies. They merely constitute the subject to approval by a majority of the votes coordinating agency that would prepare the stage for political
mechanism for an "umbrella" that brings together the existing cast in a plebiscite in the political units directly autonomy for the Cordilleras. It fills in the resulting gap in the
local governments, the agencies of the National Government, affected. process of transforming a group of adjacent territorial and
the ethno-linguistic groups or tribes, and non-governmental political subdivisions already enjoying local or administrative
organizations in a concerted effort to spur development in the The CAR is not a public corporation or a territorial and autonomy into an autonomous region vested with political
Cordilleras. political subdivision. It does not have a separate juridical autonomy.
personality, unlike provinces, cities and municipalities. Neither
Subsequent to the issuance of E.O. No. 220, the Congress, is it vested with the powers that are normally granted to public
after it was convened, enacted Republic Act No. 6658 which corporations, e.g. the power to sue and be sued, the power to
created the Cordillera Regional Consultative Commission. The own and dispose of property, the power to create its own
President then appointed its members. The commission sources of revenue, etc. As stated earlier, the CAR was created
prepared a draft organic act which became the basis for the primarily to coordinate the planning and implementation of
deliberations of the Senate and the House of Representatives. programs and services in the covered areas.
The result was Republic Act No. 6766, the organic act for the
Cordillera autonomous region, which was signed into law on The CAR may be considered more than anything else as a
October 23, 1989. A plebiscite for the approval of the organic regional coordinating agency of the National Government,
act, to be conducted shortly, shall complete the process similar to the regional development councils which the
outlined in the Constitution. President may create under the Constitution [Art. X, sec. 14].
These councils are "composed of local government officials,
In the meantime, E.O. No. 220 had been in force and effect for regional heads of departments and other government offices,
more than two years and we find that, despite E.O. No. 220, and representatives from non-governmental organizations
the autonomous region in the Cordilleras is still to be created, within the region for purposes of administrative
showing the lack of basis of petitioners' assertion. Events have decentralization to strengthen the autonomy of the units
shown that petitioners' fear that E.O. No. 220 was a "shortcut" therein and to accelerate the economic and social growth and
for the creation of the autonomous region in the Cordilleras development of the units in the region." [Ibid.] In this wise, the
was totally unfounded. CAR may be considered as a more sophisticated version of the
regional development council.
II The SC found that E.O. No. 220 did not create a new
territorial and political subdivision or merge existing ones into III The Supreme Court held that the creation of CAR did not
a larger subdivision. contravene the constitutional guarantee of local autonomy for
the provinces. It must be clarified that the constitutional
The Constitution provides in Article X: guarantee of local autonomy in the Constitution [Art. X, sec. 2]
refers to the administrative autonomy of local government
units or, cast in more technical language, the decentralization
Section 1. The territorial and political of government authority.On the other hand, the creation of
subdivisions of the Republic of the Philippines AQUILINO Q. PIMENTEL v. EXECUTIVE SECRETARY
autonomous regions in Muslim Mindanao and the Cordilleras, PAQUITO N. OCHOA, GR No. 195770, 2012-07-17
are the provinces, cities, municipalities, and which is peculiar to the 1987 Constitution contemplates the
barangays. There shall be autonomous regions grant of political autonomy and not just administrative Facts:
in Muslim Mindanao and the Cordilleras as autonomy these regions. Thus, the provision in the Constitution
hereinafter provided.
In 207, the DSWD embarked on a poverty reduction strategy City/Municipal level to better execute Program objectives and Section 3. The Congres shall enact a local government code
with the poorest of the poor as target beneficiaries.[2] Dubed " functions... d. Coordinate with various concerned government which shall provide for a more responsive and accountable
Ahon Pamilyang Pilipino, " it was pre-pilotested in the agencies at the local level, sectoral representatives and NGO local government structure instituted through a system of
municipalities of Sibagat and Esperanza in Agusan del Sur; to ensure effective Program implementation... e. Prepare decentralization with effective mechanisms of recall, initiative,
the... municipalities of Lopez Jaenand Bonifacio in Misamis reports on issues and concerns regarding Program and referendum,... allocate among the different local
Occidental, the Caraga Region; and the cities of Pasay and implementation and submit to the Regional Advisory government units their powers, responsibilities, and resources,
Calocan[3] upon the release of the amount of P 50 Million Committee, and... f. Hold monthly committee meetings and provide for the qualifications , election, appointment and
Pesos under a Special Allotment Release Order (SARO) issued removal, term, salaries, powers and functions and duties of
by the Department of Budget... and Management. Congress, for its part, sought to ensure the success of the local officials, and all other maters relating to the...
CCTP by providing it with funding under the GA of 208 in the organization and operation of the local units.
On July 16, 208, the DSWD issued Administrative Order No. 16, amount of Two Hundred Ninety - Eight Million Five Hundred
series of 208 (A.O. No. 16, s. 208),[5] setting the implementing Fifty Thousand Pesos ( P 298,50,0.0). xxx
guidelines for the project renamed "Pantawid Pamilyang
Pilipino Program " (4Ps), upon the following stated objectives, This budget allocation increased tremendously to P 5 Billion Section 14. The President shall provide for regional
to... wit: development councils or other similar bodies composed of local
Pesos in 209, with the amount doubling to P 10 Billion Pesos in government officials, regional heads of departments and other
To improve preventive health care of pregnant women and 2010. But the biggest allotment given to the CCTP was in the government offices, and representatives from non -
young children GA of 201 at Twenty One Billion One Hundred Ninety - Four governmental organizations within the... regions for purposes
Million One Hundred Seventeen Thousand Pesos ( P of administrative decentralization to strengthen the autonomy
To increase enrollment/attendance of children at elementary 21,194,17,0.0). of the units therein and to accelerate the economic and social
level growth and development of the units in the region.
Petitioner Aquilino Pimentel, Jr., a former Senator, joined by
(Underscoring supplied)
To reduce incidence of child labor Sergio Tadeo, incumbent President of the Association of
Barangay Captains of Cabanatuan City, Nueva Ecija, and In order to fully secure to the LGUs the genuine and
To raise consumption of poor households on nutrient dense Nelson Alcantara, incumbent Barangay Captain of Barangay meaningful autonomy that would develop them into self -
foods Sta. Monica, Quezon City , challenges before the reliant communities and effective partners in the attainment of
To encourage parents to invest in their children's (and their national goals, [16] Section 17 of the Local Government Code
Court the disbursement of public funds and the implementation
own) future vested upon the LGUs... the duties and functions pertaining to
of the CCTP which are alleged to have encroached into the
the delivery of basic services and facilities, as follows:
local autonomy of the LGUs.
To encourage parent's participation in the growth and
development of young children, as well as involvement in the SECTION 17. Basic Services and Facilities. (a) Local
Issues:
community government units shall endeavor to be self - reliant and shall
THE P 21 BILLION CTP BUDGET ALLOCATION UNDER THE DSWD continue exercising the powers and discharging the duties and
Under A.O. No. 16, s. 208, the DSWD also institutionalized a IN THE GA FY 201 VIOLATES ART. II, SEC. 25 & ART. X, SEC. 3 functions currently vested upon them. They shall also
coordinated inter - agency network among the Department of OF THE 1987 CONSTITUTION IN RELATION TO SEC. 17 OF THE discharge the functions and... responsibilities of national
Education (DepEd), Department of Health (DOH), Department LOCAL GOVERNMENT CODE OF 191 BY PROVIDING FOR THE agencies and offices devolved to them pursuant to this Code.
of Interior and Local Government (DILG), the National Anti - RECENTRALIZATION OF THE NATIONAL Local government units shall like wise exercise such other
Poverty Commission (NAPC) and the local... government units powers and discharge such other f unctions and responsibilities
(LGUs), identifying specific roles an d functions in order to GOVERNMENT IN THE DE LIVERY OF BASIC SERVICES ALREADY as are necessary, appropriate, or incidental to efficient and...
ensure effective and efficient implementation of the CCTP . As DEVOLVED TO THE LGUS. effective provision of the basic services and facilities
the DSWD takes on the role of lead implementing agency that enumerated herein.
must "oversee and coordinate the implementation, monitoring Ruling:
and evaluation of... the program," the concerned LGU as (b) Such basic services and facilities include, but are not
The Constitution declares it a policy of the State to ensure the limited to, x x x.
partner agency is particularly tasked to... a. Ensure availability
autonomy of local governments[14] and even devotes a ful
of the supply side on health and education in the target areas.
article on the subject of local governance[15] which includes While the aforementioned provision charges the LGUs to take
b. Provide necessary technical assistance for Program the following pertinent provisions: on the functions and responsibilities that have already been
implementation... c. Coordinate the devolved upon them from the national agencies on the aspect
implementation/operationalization of sectoral activities at the of providing for basic services and facilities in their respective
jurisdictions , paragraph (c)... of the same provision provides a from taking a direct hand in the... formulation and
categorical exception of cases involving nationally - funded implementation of national development programs especially
projects, facilities, programs and services, thus: where it is implemented locally in coordination with the LGUs
concerned.
(c) Notwithstanding the provisions of subsection (b) hereof,
public works and infrastructure projects and other facilities,
programs and services funded by the National Government
under the annual General Appropriations Act, other special
laws, pertinent executive... orders, and those wholly or
partially funded from foreign sources, are not covered under
this Section, except in those cases where the local government
unit concerned is duly designated as the implementing agency
for such projects, facilities, programs and services.

(Underscoring supplied)

The essence of this express reservation of pow er by the


national government is that, unles an LGU is particularly
designated as the implementing agency, it has no power over
a program for which funding has ben provided by the national
government under the anual general... apropriations act, even
if t he program involves the delivery of basic services within
the jurisdiction of the LGU.

Indeed, a complete relinquishment of central government


powers on the matter of providing basic facilities and services
cannot be implied as the Local Government Code itself weighs
against it. The national government is, thus, not precluded
from taking a direct hand in the... formulation and
implementation of national development programs especially
where it is implemented locally in coordination with the LGUs
concerned.

Petitioners have failed to discharge the burden of... proving the


invalidity of the provisions under the GAA of 2011.

The allocation of a P21 billion budget for an intervention


program formulated by the national government itself but
implemented in partnership with the local government units to
achieve the common national goal... development and social
progress can by no means be an encroachment upon the
autonomy of local governments. LLDA v. CA, et al., G.R. Nos. 120865-71, Dec. 7,1995
Principles:
Facts: Executive Order No. 927 was issued to further define
Indeed, a complete relinquishment of central government and enlarge the functions and powers of the Laguna Lake
powers on the matter of providing basic facilities and services Development Authority (LLDA) and named and enumerated the
cannot be implied as the Local Government Code itself weighs towns, cities and provinces encompassed by the term "Laguna
against it. The national government is, thus, not precluded
de Bay Region." EO 927 also included in particular the sharing
of fees. Then came Republic Act No. 7160, the Local Supreme Court. Impleaded as parties-respondents are the for the use of all surface water for any projects or activities in
Government Code of 1991. The municipalities in the Laguna various regional trial courts and respective private parties, and or affecting the said region, including navigation, construction,
Lake Region interpreted the provisions of this law to mean that the municipalities and/or respective Mayors of Binangonan, and operation of fishpens, fish enclosures, fish corrals and the
the newly passed law gave municipal govemments the Taguig and Jala-jala, who issued permits for the construction like. On the other hand, RA 7160 has granted to the
exclusive jurisdiction to issue fishing privileges within their and operation of fishpens in Laguna de Bay. The petition municipalities the exclusive authority to grant fishery privileges
municipal waters because R.A. 7160 provides that sought to nullifu the TROs issued, permanent prohibition in municipal waters. The Sangguniang Bayan may grant fishery
municipalities shall have the exclusive authority to grant against the trial courts from exercising jurisdiction over the privileges to erect fish corrals, oyster, mussels or other aquatic
fishery privileges in the municipal waters and impose rental cases involving the LLDA which is a coequal body and judicial beds or bangus fry area within a definite zone of the municipal
fees or charges therefor. Municipal governments then assumed pronouncement that RA 7160 did not repeal, alter or modifu waters. The Court held that the provisions of RA 7160 do not
the authority to issue fishing privileges and fishpen permits. the provisions of RA 4850 empowering the LLDA to issue necessarily repeal the aforementioned laws creating the LLDA
Big fishpen operators took advantage of the occasion to permits for fishpens, fishcages and other aquaculture and granting the latter water rights authority over Laguna de
establish fishpens and fishcages to the consternation of the structures in Laguna de Bay and that the LLDA is the Bay and the lake region as it does not contain any express
LLDA. government agency vested with exclusive authority to issue provision which categorically expressly repeal the charter of
said permits. The SC referred the case to the CA. MDG-F 1919: the Authority. There was no intent on the part of the legislature
Unregulated fishpens and fishcages, occupied almost one-third Enhancing Access to and Provision of Water Services with the to repeal RA 4850 and its amendments. The repeal of laws
of the entire lake water surface area, increasing the occupation Active Participation of the Poor for the Compilation and should be made clear and expressed. The LLDA charter
drastically from 7,000 hectares in 1990 to almost 21,000 Analysis of Jurisprudence on Water Supply Case Digests with of constitutes a special law. RA 7160, the Local Government Code
hectares in 1995. The Mayor's permit to construct fishpens and Appellate Court's Ruling: The CA dismissed the LLDA of 1991, is a general law. The enactment of a later legislation
fishcages were all undertaken in violation of the policies consolidated petitions and held that: (a) LLDA is not among which is a general law cannot be construed to have repealed a
adopted by the LLDA on fishpen zoning and the Laguna Lake those quasi-judicial agencies of government whose decision or special law. Where there is a conflict between a general law
carrying capacity. The implementation by the lakeshore order are appealable only to the Court of Appeals; (b) the LLDA and a special statute, the special statute should prevail since it
municipalities of separate independent policies in the operation charter does vest LLDA with quasi-judicial functions insofar as evinces the legislative intent more clearly than the general
of fishpens and fishcages within their claimed territorial fishpens are concerned; (c) the provisions of the LLDA charter statute. The special law is to be taken as an exception to the
municipal waters in the lake and their indiscriminate grant of insofar as fishing privileges in Laguna de Bay are concemed general law in the absence of special circumstances forcing a
fishpens permits saturated the lake area with fishpens, and had been repealed by the Local Government Code of 1991; (d) contrary conclusion. This is because implied repeals are not
aggravated the current environmental problems and ecological in view of the aforesaid repeal, the power to grant permits favored and as much as possible, effect must be given to all
stress of Laguna Lake. LLDA served notice that the fishpens, devolved to respective local government units concerned. enactments of the legislature. A special law cannot be
fishcages and other aquaculture structures which were not repealed, amended or altered by a subsequent general law by
registered or has no pending application with LLDA are mere implication. Thus, it has to be concluded that the LLDA
considered illegal, and as such are subject to demolition. A charter should prevail over the Local Government Code of
month after, LLDA sent notices to the concerned owners of the Issue: Which agency of the Government - the Laguna Lake 1991. Considering the reasons behind the establishment of the
illegally constructed fishpens, fishcages and other aqua-culture Development Authority or the towns and municipalities Authority, which are environmental protection, navigational
structures advising them to dismantle their respective comprising the region - should exercise jurisdiction over the safety, and sustainable development, there is every indication
structures within 10 days from receipt thereof, otherwise, Laguna Lake and its environs insofar as the issuance of permits that the legislative intent is for LLDA to proceed with its
demolition shall be effected. The affected fishpen owners filed for fishery privileges is concerned? mission.
injunction cases against the LLDA before various regional trial
courts. LLDA filed motions to dismiss the cases against it on The power of the LGUs to issue fishing privileges was clearly
jurisdictional ground but were invariably denied. Meanwhile, granted for revenue purposes. On the other hand, the power of
Supreme Court's Ruling: The LLDA should prevail over the
temporary reskaining order/writs of preliminary mandatory the LLDA to grant permits for fishpens, fishcages and other
LGUs insofar as the issuance of permits for fishery privileges is
injunction were issued enjoining the LLDA from demolishing aqua-culture structures is for the purpose of effectively
concerned. RA 4850, PD 813, and EO 927 specifrcally provide
the fishpens and similar structures in question. The LLDA filed regulating and monitoring activities in the Laguna de Bay
that the LLDA shall have exclusive jurisdiction to issue permits
a petition for certiorari, prohibition and injunction before the region and for lake quality control and management. It does
partake of the nature of police power which is the most
pervasive, the least limitable and the most demanding of all
State powers including the power of taxation. Accordingly, the
LLDA charter, which MDG-F 1919: Enhancing Access to and
Provision of Water Seryices with the Active Participation of the
Poor for the Compilation and Analysis of Jurisprudence on
Water Supply Case Digests with Analysis of Development
lmplications embodies a valid exercise of police power, should
prevail over the Local Government Code of 1991 on matters
affecting Lagmade Bay. LLDA has express powers as a
regulatory and quasi-judicial body in respect to pollution cases
with authority to issue a "cease and desist order" and on
matters affecting the construction of illegal fishpens, fishcages
and other aqua-culture structures in Laguna de -nay. However,
the LLDA is not co-equal to the RTCs. On actions necessitating
the resolution of legal questions affecting the powers of the
LLDA as provided for in its charter, the RTCs have jurisdiction.

The Local Government Code of 1991 has not repealed the


provisions of the charter of the LLDA. Thus, the LLDA has the
exclusive jurisdiction to issue permits for the enjoyment of
fishery privileges in Laguna de Bay to the exclusion of
municipalities situated therein and the authority to exercise
such powers as are by its charter vested on it. Removal from
the LLDA of the aforesaid licensing authority will render
nugatory its avowed purpose of protecting and developing the
Laguna Lake Region. Otherwise stated, the abrogation of this
power would render useless its reason for being and will in
effect denigrate, if not abolish, the LLDA. The Local
Government Code of 1991 had never intended to do this. J.
Padilla's concuting opinion: While the exclusive jurisdiction to
determine whether or not projects or activities in the lake area
should be allowed, as well as their regulation, is with the LLDA,
once the LLDA grants a permit, the permittee may still be MMDA vs. Bel-Air Village Association (G.R. No. 135962)
subjected to an additional local permit or license for revenue
purposes of the LGUs concerned. Facts:
On December 30, 1995, respondent received from petitioner a
notice requesting the former to open its private road, Neptune
Street, to public vehicular traffic starting January 2, 1996. On
the same day, respondent was apprised that the perimeter
separating the subdivision from Kalayaan Avenue would be
demolished.
Respondent instituted a petition for injunction against The Sangguniang Panlungsod of Makati City did not pass any police powers? (2) Is passage of an ordinance a condition
petitioner, praying for the issuance of a TRO and preliminary ordinance or resolution ordering the opening of Neptune precedent before the MMDA may order the opening of
injunction enjoining the opening of Neptune Street and Street, hence, its proposed opening by the MMDA is illegal. subdividion roads to public traffic? (3) Is Bel-Air estopped from
prohibiting the demolition of the perimeter wall. The trial court denying the authority of MMDA? (4)Was Bel-Air denied of due
denied issuance of a preliminary injunction.  On appeal, the Wherefore, the petition is denied. process despite the several meetings held between MMDA and
appellate court ruled that the MMDA has no authority to order Bel-Air? (5) Has Bel-Air come to court with unclean hands?
the opening of Neptune Street, and cause the demolition of its
perimeter walls. It held that the authority is lodged in the City G.R. No. 135962 Case Digest MMDA: it has the authority to open Neptune St. because it is an
Council of Makati by ordinance.  G.R. No. 135962, March 27, 2000 agent of the Government endowed with police power in the
Metropolitan Manila Development Authority, petitioner delivery of basic services in Metro Manila. From the premise of
MMDA said it has the authority to open Neptune St. because it vs Bel-Air Village Association, Inc., respondent police powers, it follow then that it need not for an ordinance
is an agent of the Government endowed with police power in POnente: Puno to be enacted first. 
the delivery of basic services in Metro Manila. From the
premise of police powers, it follow then that it need not for an Facts:  **Police power is an inherent attribute of sovereignty. Police
ordinance to be enacted first.  power is lodged primarily in the National Legislature, which the
MMDA is a government agency tasked with the delivery of latter can delegate to the President and administrative boards,
Hence this petition. basic services in Metro Manila. Bel-Air is a non-stock, non-profit LGU or other lawmaking bodies.
corporation whose members are homeowners of Bel-Air
Issue: Villagee in Makati City. Bel-Air is the registered owner of the **LGU is a political subdivision for local affairs. Which has a
Does MMDA has the mandate to open Neptune Street to public Neptune Street, a road inside Bel-Air Village. legislative body empowered to enact ordinances, approved
traffic pursuant to its regulatory and police powers? resolutions and appropriate funds for the general welfare of the
December 30, 1995 Bel-Air received a notice from MMDA province/city/municipality. 
Ruling: requesting Bel-Air to open Neptune St. to public vehicular
According to SC, Police power is an inherent attribute of traffic. On the same day, MMDA apprised that the perimeter **Metro Manila is declared as a special development and
sovereignty. Police power is lodged primarily in the National wall separating the subdivision from the adjacent Kalayaan administrative region in 1995. And the administration of metro-
Legislature, which the latter can delegate to the President and Avenue would be demolished. wide basic services is under the MMDA.Which includes,
administrative boards, LGU or other lawmaking bodies. transport and traffice management. It should be noted that
January 2, 1996, MMDA instituted a case for injunction against MMDA are limited to the acts: formulation, coordination,
LGU is a political subdivision for local affairs. Which has a Bel-Air; and prayed for a TRO and preliminary injunction regulation, implementation, preparation, management,
legislative body empowered to enact ordinances, approved enjoining Neptune St. and prohibiting the demolition of the monitoring, setting of policies and installation of a system and
resolutions and appropriate funds for the general welfare of the perimeter wall. Court issued a TRO the next day. administration. MMDA was not granted with legislative power.
province/city/municipality.
After due hearing, RTC denied the issuance of a preliminary Ruling:
The MMDA is, as termed in the charter itself, "development injunction. MMDA question the denial and appealed to the CA. (1) The basis for the proposed opening of Neptune Street is
authority." All its functions are administrative in nature.The CA conducted an ocular inspection of Neptune St. then issued a contained in the notice of December 22, 1995 sent by
powers of the MMDA are limited to the following acts: writ of preliminary injunction enjoining the MMDA proposed petitioner to respondent BAVA, through its president. The
formulation, coordination, regulation,implementation, action.  notice does not cite any ordinance or law, either by the
preparation, management, monitoring, setting of policies, Sangguniang Panlungsod of Makati City or by the MMDA, as the
installation of a system and administration. There is no syllable On January 27, 1997, appellate court rendered a decision legal basis for the proposed opening of Neptune St.
in R.A. No. 7924 that grants the MMDA police power, let alone finding MMDA no authority to order the opening of Neptune St.
legislative power It held that the authority is in the City Council of Makati by (2) The MMDA is not the same entity as the MMC in Sangalang.
ordinance. Although the MMC is the forerunner of the present MMDA, an
In sum, the MMDA has no power to enact ordinances for the examination of Presidential Decree (P. D.) No. 824, the charter
welfare of the community. It is the LGUs, acting through their The motion for reconsideration is denied hence this recourse. of the MMC, shows that the latter possessed greater powers
respective legislative councils, that possess legislative power which were not bestowed on the present MMDA.
and police power. Issues: (1) MMDA has the authority to mandate the opening of
Neptune St. to public traffic pursuant to its regulatory and (3) Under the 1987 Constitution, the local government units
became primarily responsible for the governance of their
respective political subdivisions. The MMA's jurisdiction was
limited to addressing common problems involving basic
services that transcended local boundaries. It did not have
legislative power.

Petition Denied. 

G.R. No. 149848             November 25, 2004

ARSADI M. DISOMANGCOP and RAMIR M.


DIMALOTANG, petitioners,
vs.
THE SECRETARY OF THE DEPARTMENT OF PUBLIC
WORKS AND HIGHWAYS SIMEON A. DATUMANONG and
THE SECRETARY OF BUDGET and MANAGEMENT EMILIA
T. BONCODIN, respondents.

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