19. Hon. Franklin Drilon, as Secretary of Justice (SoJ) vs.

Mayor Alfredo Lim, August 4, 1994

Facts: The SoJ (on appeal to him of four oil companies and a taxpayer) declared Ordinance No. 7794
(Manila Revenue Code) null and void for non-compliance with the procedure in the enactment of tax
ordinances and that certain provisions are contrary to law and public policy. RTC revoked the Secretary’s
resolution and sustained the ordinance. It declared Sec 187 of the LGC as unconstitutional because it
vests on the Secretary the power of control over LGUs in violation of the policy of local autonomy
mandated in the Constitution. The Secretary argues that it is constitutional and that the procedural
requirements had indeed not been observed for failure to submit a certified true copy of the challenged
decision in accord with Circular 1-88. However, on motion for reconsideration, the petition was
reinstated. Judge Rodolfo C. Palattao declared Section 187 of the LGC unconstitutional for empowering
the SoJ to review tax ordinances and to annul them. His conclusion was that the challenged section gave
to the Secretary the power of control and not of supervision only as vested by the Constitution in the
President of the Philippines.

Issue: Whether or not Section 187 of the Local Government Code is constitutional. YES

Ruling: Section 187 authorizes the SoJ to review only the constitutionality or legality of the tax ordinance
and, if warranted, to revoke it on either or both of these grounds. All he did in reviewing the said measure
was determine if the petitioners were performing their functions in accordance with law, that is, with the
prescribed procedure for the enactment of tax ordinances and the grant of powers to the city government
under the Local Government Code. As we see it, that was an act not of control but of mere supervision.
An officer in control lays down the rules in the doing of an act. If they are not followed, he may,
in his discretion, order the act undone or re-done by his subordinate or he may even decide to do it
himself. Supervision does not cover such authority. The supervisor or superintendent merely sees to it
that the rules are followed, but he himself does not lay down such rules, nor does he have the discretion to
modify or replace them. If the rules are not observed, he may order the work done or re-done but only to
conform to the prescribed rules. He may not prescribe his own manner for the doing of the act. He has no
judgment on this matter except to see to it that the rules are followed. In the opinion of the Court,
Secretary Drilon did precisely this, and no more nor less than this, and so performed an act not of control
but of mere supervision.

In case asked - - - (issue of non-compliance with the prescribed procedure in the enactment of the
Manila Revenue Code) Secretary Drilon declared that there were no written notices nor were copies of
the proposed ordinance published in three successive issues of a newspaper of general circulation
pursuant to Art. 276(a). No minutes were submitted neither were copies of the measure as approved
posted in prominent places in the city in accordance with Sec. 511(a) of the Local Government Code.
Finally, the Manila Revenue Code was not translated into Pilipino or Tagalog and disseminated among
the people for their information and guidance, conformably to Sec. 59(b) of the Code. Judge Palattao
found otherwise. He declared that all the procedural requirements had been observed in the enactment of
the Manila Revenue Code and that the City of Manila had not been able to prove such compliance before
the Secretary only because he had given it only five days within which to gather and present to him all the
evidence (consisting of 25 exhibits) later submitted to the trial court. The only exceptions are the posting
of the ordinance as approved but this omission does not affect its validity, considering that its publication
in three successive issues of a newspaper of general circulation will satisfy due process. It has also not
been shown that the text of the ordinance has been translated and disseminated, but this requirement
applies to the approval of local development plans and public investment programs of the local
government unit and not to tax ordinances.