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Ordinances and Revenue Measures Mandatory Public Hearings, Secretary of Justice Had, On Appeal To Him of

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DRILON VS. LIM G.R. No. 112497, August 4 1994 FACTS: Pursuant to Section 187 of t e !

oca" Go#ern$ent Co%e or t e Procedure For Approval And Effectivity Of Tax Ordinances And Revenue Measures; Mandatory Public Hearings , Secretar& of 'ustice a%, on a((ea" to i$ of four oi" co$(anies an% a ta)(a&er, %ec"are% *r%inance No. 7794, ot er+ise ,no+n as t e -ani"a Re#enue Co%e, nu"" an% #oi% for non.co$("iance +it t e (rescri/e% (roce%ure in t e enact$ent of ta) or%inances an% for containing certain (ro#isions contrar& to "a+ an% (u/"ic (o"ic&. 0n a (etition, t e Regiona" Tria" Court of -ani"a re#o,e% t e Secretar&1s reso"ution an% sustaine% t e or%inance, o"%ing inter a"ia t at t e (roce%ura" re2uire$ents a% /een o/ser#e%. 0nstea%, it %ec"are% Section 187 of t e !oca" Go#ern$ent Co%e as unconstitutiona" /ecause of its #esture in t e Secretar& of 'ustice of t e (o+er of contro" o#er "oca" go#ern$ents in #io"ation of t e (o"ic& of "oca" autono$& $an%ate% in t e Constitution an% of t e s(ecific (ro#ision t erein conferring on t e Presi%ent of t e P i"i((ines on"& t e (o+er of su(er#ision o#er "oca" go#ern$ents. 3& citing t e %istinction /et+een contro" an% su(er#ision, t e "o+er court4s conc"u%e% t at t e c a""enge% section ga#e t e Secretar& t e (o+er of contro" an% not of su(er#ision on"& as #este% /& t e Constitution in t e Presi%ent of t e P i"i((ines. T is +as, in is #ie+, a #io"ation not on"& of Artic"e 5, s(ecifica""& Section 4 t ereof, 7 an% of Section 6 on t e ta)ing (o+ers of "oca" go#ern$ents, 8 an% t e (o"ic& of "oca" autono$& in genera". 0SS78: 9 et er or not Section 187 of t e !oca" Go#ern$ent Co%e is unconstitutiona". :8!;: T e <u%g$ent of t e Regiona" Tria" Court is re#erse% insofar as it %ec"are% Section 187 of t e !oca" Go#ern$ent Co%e unconstitutiona" an% affir$e% t e fin%ings of t e (roce%ura" re2uire$ents in t e enact$ent of t e -ani"a Re#enue Co%e a#e /een o/ser#e%. Section 187 aut ori=es t e Secretar& of 'ustice to re#ie+ on"& t e constitutiona"it& or "ega"it& of t e ta) or%inance an%, if +arrante%, to re#o,e it on eit er or /ot of t ese groun%s. 9 en e a"ters or $o%ifies or sets asi%e a ta) or%inance, e is not a"so (er$itte% to su/stitute is o+n <u%g$ent for t e <u%g$ent of t e "oca" go#ern$ent t at enacte% t e $easure. Secretar& ;ri"on %i% set asi%e t e -ani"a Re#enue Co%e, /ut e %i% not re("ace it +it is o+n #ersion of + at t e Co%e s ou"% /e. :e %i% not (ronounce t e or%inance un+ise or unreasona/"e as a /asis for its annu"$ent. :e %i% not sa& t at in is <u%g$ent it +as a /a% "a+. 9 at e foun% on"& +as t at it +as i""ega". A"" e %i% in re#ie+ing t e sai% $easure +as %eter$ine if t e (etitioners +ere (erfor$ing t eir functions in accor%ance +it "a+, t at is, +it t e (rescri/e% (roce%ure for t e enact$ent of ta) or%inances an% t e grant of (o+ers to t e cit& go#ern$ent un%er t e !oca" Go#ern$ent Co%e. T e Court fin%s t at Secretar& ;ri"on a% (erfor$e% an act not of contro" /ut of $ere su(er#ision. An officer in control "a&s %o+n t e ru"es in t e %oing of an act. 0f t e& are not fo""o+e%, e $a&, in is %iscretion, or%er t e act un%one or re.%one /& is su/or%inate or e $a& e#en %eci%e to %o it i$se"f. 9 i"e in s upervision, it $ere"& sees to it t at t e ru"es are fo""o+e%, /ut e i$se"f %oes not "a& %o+n suc ru"es, nor %oes e a#e t e %iscretion to $o%if& or re("ace t e$. 0f t e ru"es are not o/ser#e%, e $a& or%er t e +or, %one or re.%one /ut on"& to confor$ to t e (rescri/e% ru"es. :e $a& not (rescri/e is o+n $anner for t e %oing of t e act. :e as no <u%g$ent on t is $atter e)ce(t to see to it t at t e ru"es are fo""o+e%.

GANZON v CA (1991) Facts: T e (etitions of -a&or Gan=on originate% fro$ a series of a%$inistrati#e co$("aints, ten in nu$/er, fi"e% against i$ /& #arious cit& officia"s so$eti$e in 1988, on #arious c arges, a$ong t e$, a/use of aut orit&, o((ression, gra#e $iscon%uct, %isgracefu" an% i$$ora" con%uct, inti$i%ation, cu"(a/"e #io"ation of t e Constitution, an% ar/itrar& %etention. Fin%ing (ro/a/"e groun%s an% reasons, t e res(on%ent >Sec of !oca" Go#ern$ent? issue% a (re#enti#e sus(ension or%er for a (erio% of si)t& %a&s. 0n t e ot er case, res(on%ent or%ere% (etitioner1s secon% (re#enti#e sus(ension for anot er si)t& >@A? %a&s. T e (etitioner +as a/"e to o/tain a restraining or%er an% a +rit of (re"i$inar& in<unction in t e RTC. T e secon% (re#enti#e sus(ension +as not enforce%. A$i%st t e t+o successi#e sus(ensions, -a&or Gan=on institute% an action for (ro i/ition against t e res(on%ent in t e RTC. Present"&, e institute% an action for (ro i/ition, in t e res(on%ent CA. -ean+ i"e, t e res(on%ent issue% anot er or%er, (re#enti#e"& sus(en%ing -a&or Gan=on for anot er si)t& %a&s, t e t ir% ti$e in t+ent& $ont s, an% %esignating $eanti$e Bice.-a&or -ansueto -a"a/or as acting $a&or. 7n%aunte%, -a&or Gan=on co$$ence% /efore t e CA, a (etition for (ro i/ition. T e CA ren%ere% <u%g$ent %is$issing t e cases. Issue: 9*N t e Secretar& of !oca" Go#ern$ent, as t e Presi%ent1s a"ter ego, can sus(en% an% or re$o#e "oca" officia"s. Held: Ces. Rat !: 0t is t e (etitioners1 argu$ent t at t e 1987 Constitution no "onger a""o+s t e Presi%ent, as t e 19D6 an% 197D Constitutions %i%, to e)ercise t e (o+er of sus(ension an%Eor re$o#a" o#er "oca" officia"s. Accor%ing to /ot (etitioners, t e Constitution is $eant, first, to strengt en se"f.ru"e /& "oca" go#ern$ent units an% secon%, /& %e"eting t e ( rase Fas $a& /e (ro#i%e% /& "a+,F to stri( t e Presi%ent of t e (o+er of contro" o#er "oca" go#ern$ents. 0t is a #ie+, so t e& conten%, t at fin%s su((ort in t e %e/ates of t e Constitutiona" Co$$ission. T e issue consists of t ree 2uestions: >1? ;i% t e 1987 Constitution, in %e"eting t e ( rase Fas $a& /e (ro#i%e% /& "a+F inten% to %i#est t e Presi%ent of t e (o+er to in#estigate, sus(en%, %isci("ine, an% or re$o#e "oca" officia"sG >2? :as t e Constitution re(ea"e% Sections @2 an% @D of t e !oca" Go#ern$ent Co%eG >D? 9 at is t e significance of t e c ange in t e constitutiona" "anguageG 0t is t e consi%ere% o(inion of t e Court t at not+it stan%ing t e c ange in t e constitutiona" "anguage, t e c arter %i% not inten% to %i#est t e "egis"ature of its rig t . or t e Presi%ent of er (rerogati#e as conferre% /& e)isting "egis"ation to (ro#i%e a%$inistrati#e sanctions against "oca" officia"s. 0t is our o(inion t at t e o$ission >of Fas $a& /e (ro#i%e% /& "a+F? signifies not ing $ore t an to un%erscore "oca" go#ern$ents1 autono$& fro$ congress an% to /rea, Congress1 Fcontro"F o#er "oca" go#ern$ent affairs. T e Constitution %i% not, o+e#er, inten%, for t e sa,e of "oca" autono$&, to %e(ri#e t e "egis"ature of a"" aut orit& o#er $unici(a" cor(orations, in (articu"ar, concerning %isci("ine Autono$& %oes not, after a"", conte$("ate $a,ing $ini. states out of "oca" go#ern$ent units, as in t e fe%era" go#ern$ents of t e 7SA. Autono$&, in t e constitutiona" sense, is su/<ect to t e gui%ing star, t oug not contro", of t e "egis"ature, a"/eit t e "egis"ati#e res(onsi/i"it& un%er t e Constitution . an% as t e Fsu(er#ision c"auseF itse"f suggest . is to +ean "oca" go#ern$ent units fro$ o#er %e(en%ence on t e centra" go#ern$ent. 0t is note+ort & t at un%er t e C arter, F"oca" autono$&F is not instant"& se"f.e)ecuting, /ut su/<ect to, a$ong ot er t ings, t e (assage of a "oca" go#ern$ent co%e, a "oca" ta) "a+, inco$e %istri/ution "egis"ation, an% a nationa" re(resentation "a+, an% $easures %esigne% to rea"i=e autono$& at t e "oca" "e#e". 0t is a"so note+ort & t at in s(ite of autono$&, t e Constitution ("aces t e "oca" go#ern$ent un%er t e genera" su(er#ision of t e 8)ecuti#e. 0t is note+ort & fina""&, t at t e C arter a""o+s Congress to inc"u%e in t e "oca" go#ern$ent co%e (ro#isions for re$o#a" of "oca" officia"s, + ic suggest t at Congress $a& e)ercise re$o#a" (o+ers, an% as t e e)isting !oca" Go#ern$ent Co%e as %one, %e"egate its e)ercise to t e Presi%ent. T e %e"etion of Fas $a& /e (ro#i%e% /& "a+F +as $eant to stress, su/ si"encio, t e o/<ecti#e of t e fra$ers to strengt en "oca" autono$& /& se#ering congressiona" contro" of its affairs, as o/ser#e% /& t e Court of A((ea"s, "i,e t e (o+er of "oca" "egis"ation. T e Constitution %i% not ing $ore, o+e#er, an% insofar as e)isting "egis"ation aut ori=es t e Presi%ent >t roug t e Secretar& of !oca" Go#ern$ent? to (rocee% against "oca" officia"s a%$inistrati#e"&, t e Constitution contains no (ro i/ition. T e (etitioners are un%er t e i$(ression t at t e Constitution as "eft t e Presi%ent $ere su(er#isor& (o+ers, + ic su((ose%"& e)c"u%es t e (o+er of in#estigation, an% %enie% er contro", + ic a""ege%"& e$/races %isci("inar& aut orit&. 0t is a $ista,en

i$(ression /ecause "ega""&, Fsu(er#isionF is not inco$(ati/"e +it %isci("inar& aut orit& T e Court %oes not /e"ie#e t at t e (etitioners can rig tfu""& (oint to t e %e/ates of t e Constitutiona" Co$$ission to %efeat t e Presi%ent1s (o+ers. T e Court /e"ie#es t at t e %e"i/erations are /& t e$se"#es inconc"usi#e, /ecause a"t oug Co$$issioner 'ose No""e%o +ou"% e)c"u%e t e (o+er of re$o#a" fro$ T e (resi%ent, co$$issioner /"as o("e +ou"% not.T e Court is conse2uent"& re"uctant to sa& t at t e ne+ Constitution as re(ea"e% t e !oca" Go#ern$ent Co%e, 3atas 3"g. DD7. As +e sai%, Fsu(er#isionF an% Fre$o#a"F are not inco$(ati/"e ter$s an% one $a& stan% +it t e ot er not+it stan%ing t e stronger e)(ression of "oca" autono$& un%er t e ne+ C arter. 9e a#e in%ee% e"% t at in s(ite of t e a((ro#a" of t e C arter, 3atas 3"g. DD7 is sti"" in force an% effect. As t e Constitution itse"f %ec"ares, "oca" autono$& $eans Fa $ore res(onsi#e an% accounta/"e "oca" go#ern$ent structure institute% t roug a s&ste$ of %ecentra"i=ation.F T e Constitution, as +e o/ser#e%, %oes not ing $ore t an to /rea, u( t e $ono(o"& of t e nationa" go#ern$ent o#er t e affairs of "oca" go#ern$ents an% as (ut /& (o"itica" a% erents, to F"i/erate t e "oca" go#ern$ents fro$ t e i$(eria"is$ of -ani"a.F Autono$&, o+e#er, is not $eant to en% t e re"ation of (artners i( an% inter%e(en%ence /et+een t e centra" a%$inistration an% "oca" go#ern$ent units, or ot er+ise, to us er in a regi$e of fe%era"is$. T e C arter as not ta,en suc a ra%ica" ste(. !oca" go#ern$ents, un%er t e Constitution, are su/<ect to regu"ation, o+e#er "i$ite%, an% for no ot er (ur(ose t an (recise"&, a"/eit (ara%o)ica""&, to en ance se"f.go#ern$ent. As +e o/ser#e% in one case, %ecentra"i=ation $eans %e#o"ution of nationa" a%$inistration . /ut not (o+er . to t e "oca" "e#e"s. T us: No+, autono$& is eit er %ecentra"i=ation of a%$inistration or %ecentra"i=ation of (o+er. T ere is %ecentra"i=ation of a%$inistration + en t e centra" go#ern$ent %e"egates a%$inistrati#e (o+ers to (o"itica" su/%i#isions in or%er to/roa%en t e /ase of go#ern$ent (o+er an% in t e (rocess to $a,e "oca" go#ern$ents F$ore res(onsi#e an% accounta/"e,F an% Fensure t eir fu""est %e#e"o($ent as se"f. re"iant co$$unities an% $a,e t e$ $ore effecti#e (artners in t e (ursuit of nationa" %e#e"o($ent an% socia" (rogress.F At t e sa$e ti$e, it re"ie#es t e centra" go#ern$ent of t e /ur%en of $anaging "oca" affairs an% ena/"es it to concentrate on nationa" concerns. T e Presi%ent e)ercises Fgenera" su(er#isionF o#er t e$, /ut on"& to Fensure t at "oca" affairs are a%$inistere% accor%ing to "a+.F :e as no contro" o#er t eir acts in t e sense t at e can su/stitute t eir <u%g$ents +it is o+n. ;ecentra"i=ation of (o+er, on t e ot er an%, in#o"#es an a/%ication of (o"itica" (o+er in t e fa#or of "oca" go#ern$ents units %ec"are% to /e autono$ous, 0n t at case, t e autono$ous go#ern$ent is free to c art its o+n %estin& an% s a(e its future +it $ini$u$ inter#ention fro$ centra" aut orities. Accor%ing to a constitutiona" aut or, %ecentra"i=ation of (o+er a$ounts to Fse"f.i$$o"ation,F since in t at e#ent, t e autono$ous go#ern$ent /eco$es accounta/"e not to t e centra" aut orities /ut to its contituenc&. Issue:9*N t e se#era" sus(ensions i$(ose% u(on -a&on Gan=on are (ro(er Held:No. Rat !: T e successi#e si)t&.%a& sus(ensions i$(ose% on -a&or Gan=on is a"/eit anot er $atter. 9 at /ot ers t e Court, an% + at in%ee% "oo$s #er& "arge, is t e fact t at since t e -a&or is facing ten a%$inistrati#e c arges, t e -a&or is in fact facing t e (ossi/i"it& of @AA %a&s of sus(ension, in t e e#ent t at a"" ten cases &ie"% (ri$a facie fin%ings. T e Court is not of course to"erating $isfeasance in (u/"ic office >assu$ing t at Gan=on is gui"t& of $isfeasance? /ut it is certain"& anot er 2uestion to $a,e i$ ser#e @AA %a&s of sus(ension, + ic is effecti#e"&, to sus(en% i$ out of office. T e ("ain trut is t at t is Court as /een i"" at ease +it sus(ensions, for t e a/o#e reasons, an% so a"so, /ecause it is out of t e or%inar& to a#e a #acanc& in "oca" go#ern$ent. T e so"e o/<ecti#e of a sus(ension, as +e a#e e"%, is si$("& Fto (re#ent t e accuse% fro$ a$(ering t e nor$a" cause of t e in#estigation +it is inf"uence an% aut orit& o#er (ossi/"e +itnessesF or to ,ee( i$ off Ft e recor%s an% ot er e#i%ence.F 0t is a $eans, an% no $ore, to assist (rosecutors in fir$ing u( a case, if an&, against an erring "oca" officia". 7n%er t e !oca" Go#ern$ent Co%e, it can not e)cee% si)t& %a&s, + ic is to sa& t at it nee% not /e e)act"& si)t& %a&s "ong if a s orter (erio% is ot er+ise sufficient, an% + ic is a"so to sa& t at it oug t to /e "ifte% if (rosecutors a#e ac ie#e% t eir (ur(ose in a s orter s(an. Sus(ension fina""& is te$(orar&, an% as t e !oca" Go#ern$ent Co%e (ro#i%es, it $a& /e i$(ose% for no $ore t an si)t& %a&s. As +e e"%, a "onger sus(ension is un<ust an% unreasona/"e, an% not ing "ess t an t&rann&. 9e reiterate t at +e are not (rec"u%ing t e Presi%ent, t roug t e Secretar& of 0nterior fro$ e)ercising a "ega" (o+er, &et +e are of t e o(inion t at t e Secretar& of 0nterior is e)ercising t at (o+er o((ressi#e"&, an% nee%"ess to sa&, +it a gra#e a/use of %iscretion.

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