Principles of Local Autonomy — PD 1869, because it is xxxxxxxx violates the avowed

allegedly contrary to morals, trend of the Cory government

1. Principle of Local Authority public policy and order, and away from monopolistic and
(Section 25, Article II and because — crony economy, and toward
Section 2, Article X of the free enterprise and
1987 Constitution) A. It constitutes a waiver of a privatization. (p. 2, Amended
right prejudicial to a third Petition; p. 7, Rollo)
Section 28. Subject to reasonable person with a right recognized
conditions prescribed by law, the by law. It waived the Manila Second Amended Petition,
State adopts and implements a City government's right to petitioners also claim that PD
policy of full public disclosure of impose taxes and license fees, 1869 is contrary to the declared
all its transactions involving public which is recognized by law; national policy "new restored
interest. democracy" and the people's
Xxxxxxxxxxx will as expressed in the 1987
Xxxxxxxxxxxxxxxxxxxxxxxxxx
Law has intruded into the Constitution. The decree is said
Section 2. The territorial and local government's right to to have a "gambling objective"
political subdivisions shall enjoy impose local taxes and license and therefore is contrary to
local autonomy. fees. This, in contravention of Sections 11, 12 and 13 of Article
the constitutionally enshrined II, Sec. 1 of Article VIII and Section
Cases: 3 (2) of Article XIV, of the
principle of local autonomy;
present Constitution (p. 3,
Basco v. PAGCOR (G.R. No.
xxxxxxxxxxxxxxxx Second Amended Petition; p. 21,
91649, May 14, 1991)
Rollo).
"The new PAGCOR — responding Violates the equal protection
clause of the constitution in xxxxxxxxxxxxxxx
through responsible gaming."
that it legalizes PAGCOR —
conducted gambling, while The procedural issue:
But the petitioners think
otherwise, that is why, they filed most other forms of gambling Whether petitioners, as taxpayers
the instant petition seeking to are outlawed, together with and practicing lawyers (petitioner)
annul the Philippine prostitution, drug trafficking can question and seek the
Amusement and Gaming and other vices; annulment of PD 1869 on the
Corporation (PAGCOR) Charter
alleged grounds mentioned xxxxxTo establish and operate malpractices and corruptions
above? clubs and casinos, for that are normally prevalent on
amusement and recreation, the conduct and operation of
including sports gaming pools, gambling clubs and casinos
The Philippine Amusements (basketball, football, lotteries, without direct government
and Gaming Corporation etc.) and such other forms of involvement. (Section 1, P.D.
(PAGCOR) was created by amusement and recreation 1869)
virtue of P.D. 1067-xxxxxx "to including games of chance,
which may be allowed by law To attain these objectives
establish, operate and maintain PAGCOR under its Charter's
gambling casinos” within the territorial jurisdiction of
the Philippines and which will: repealing clause, all laws,
Its operation was originally decrees, executive orders,
conducted in the well-known (1) generate sources of rules and regulations,
floating casino "Philippine additional revenue to fund inconsistent therewith, are
Tourist." The operation was infrastructure and socio-civic accordingly repealed,
considered a success for it projects, such as flood control amended or modified.
proved to be a potential programs, beautification,
sewerage and sewage xxxxxxxxxxx PAGCOR is the
source of revenue to fund third largest source of
infrastructure and socio- projects, Tulungan ng Bayan
Centers, Nutritional Programs, government revenue, next to
economic projects, thus, P.D. the Bureau of Internal
1399 was passed for PAGCOR Population Control and such
other essential public Revenue and the Bureau of
to fully attain this objective. Customs. Xxxxxxxxx
services;
Subsequently PAGCOR was PAGCOR was employing 4,494
created under P.D. 1869 to (2) create recreation and
integrated facilities which will employees in its nine (9)
enable the Government to casinos nationwide, directly
regulate and centralize all expand and improve the
country's existing tourist supporting the livelihood of
games of chance authorized Four Thousand Four Hundred
by existing franchise or attractions; and
Ninety-Four (4,494) families.
permitted by law xxxxxxxxxxx (3) minimize, if not totally
eradicate, all the evils, The petitioners, are
questioning the validity of
P.D. No. 1869. They allege hesitate to wield the axe and let it keeping with the Court's duty,
that the same is "null and fall heavily, as fall it must, on the under the 1987 Constitution, to
void" for being "contrary to offending statute (Lozano v. determine whether or not the
morals, public policy and public Martinez, supra). other branches of government
order," monopolistic and tends have kept themselves within the
toward "crony economy", and is All presumptions are indulged in limits of the Constitution and the
violative of the equal favor of constitutionality; one who laws and that they have not
protection clause and local attacks a statute alleging abused the discretion given to
autonomy as well as for running unconstitutionality must prove its them, the Court has brushed
counter to the state policies invalidity beyond a reasonable aside technicalities of
enunciated in Sections 11 doubt; that a law may work procedure and has taken
(Personal Dignity and Human hardship does not render it cognizance of this petition.
Rights), 12 (Family) and 13 (Role unconstitutional; that if any
of Youth) of Article II, Section 1 reasonable basis may be And even if, strictly speaking they
(Social Justice) of Article XIII and conceived which supports the are not covered by the definition,
Section 2 (Educational Values) of statute, it will be upheld and the it is still within the wide discretion
Article XIV of the 1987 challenger must negate all of the Court to waive the
Constitution. possible basis; requirement and so remove the
impediment to its addressing and
Ruling: The courts are not concerned with resolving the serious
the wisdom, justice, policy or constitutional questions raised.
Presumption of validity of a law; expediency of a statute and that a
liberal interpretation of the "the transcendental importance to
A statute is presumed to be constitution in favor of the the public of these cases demands
valid. Every presumption must constitutionality of legislation that they be settled promptly and
be indulged in favor of its should be adopted. definitely, brushing aside, if we
constitutionality. must technicalities of procedure."
The respondents are questioning We have since then applied the
Where it is clear that the the legal personality of petitioners
legislature or the executive for exception in many other cases.
to file the instant petition.
that matter, has over-stepped the We will now discuss the
limits of its authority under the Considering the importance to the substantive issues raised.
constitution, We should not public of the case at bar, and in
Gambling in all its forms, response to conditions and reliable source of much
unless allowed by law, is circumstances thus assuming the needed revenue for the cash
generally prohibited. But the greatest benefits. strapped Government. It
prohibition of gambling does provided funds for social
not mean that the Along with the taxing power and impact projects and subjected
Government cannot regulate it eminent domain, it is inborn in gambling to "close scrutiny,
in the exercise of its police the very fact of statehood and regulation, supervision and
power. sovereignty. It is a control of the Government".
fundamental attribute of With the creation of PAGCOR and
The concept of police power is government that has enabled the direct intervention of the
defined as the "state authority it to perform the most vital Government, the evil practices
to enact legislation that may functions of governance. and corruptions that go with
interfere with personal liberty gambling will be minimized if
or property in order to Marshall doctrine, refers it
succinctly as the plenary power not totally eradicated. Public
promote the general welfare." welfare, then, lies at the
of the state "to govern its
As defined, it consists of; citizens". bottom of the enactment of
PD 1896.
(1) An imposition or restraint upon What was the reason behind
liberty or property, the enactment of P.D. 1869?

(2) In order to foster the common It was enacted pursuant to the Petitioners contend that P.D.
good. It is not capable of an exact policy of the government to 1869 constitutes a waiver of
definition but has been, "regulate and centralize thru the right of the City of Manila
purposely, veiled in general terms an appropriate institution all to impose taxes and legal
to underscore its all- games of chance authorized fees; that the exemption
comprehensive embrace. by existing franchise or clause in P.D. 1869 is violative
permitted by law" (1st whereas of the principle of local
Its scope, ever-expanding to meet clause, PD 1869). As was autonomy.
the exigencies of the times, even subsequently proved, The
to anticipate the future where it Section 13 par. (2) of P.D. 1869
PAGCOR, was beneficial not which exempts PAGCOR, as the
could be done, provides enough just to the Government but to
room for an efficient and flexible franchise holder from paying
society in general. It is a
any "tax of any kind or form, municipal corporations" due which is a consequence of the
income or otherwise, as well to its "general legislative issuance of "licenses or
as fees, charges or levies of powers". permits" is no longer vested in
whatever nature, whether the City of Manila.
National or Local." Congress, therefore, has the
power of control over Local Local governments have no
Ruling: governments (Hebron v. Reyes, power to tax instrumentalities
G.R. No. 9124, July 2, 1950). And of the National Government.
Their contention is without merit. if Congress can grant the City PAGCOR is a government
(a) The City of Manila, being a of Manila the power to tax owned or controlled corporation
mere Municipal corporation certain matters, it can also with an original charter, PD
has no inherent right to provide for exemptions or 1869. All of its shares of stocks
impose taxes. Thus, "the even take back the power. are owned by the National
Charter or statute must Government. In addition to its
(c) The City of Manila's power corporate powers (Sec. 3, Title
plainly show an intent to to impose license fees on
confer that power or the II, PD 1869) it also exercises
gambling, has long been regulatory powers.
municipality cannot assume revoked. As early as 1975, the
it". Its "power to tax" power of local governments to PAGCOR has a dual role, to
therefore must always yield to regulate gambling thru the operate and to regulate
a legislative act which is grant of "franchise, licenses or gambling casinos. The latter
superior having been passed permits" was withdrawn by role is governmental, which
upon by the state itself which P.D. No. 771 and was vested places it in the category of an
has the "inherent power to exclusively on the National agency or instrumentality of the
tax" Government. Government. PAGCOR should be
(b) The Charter of the City of and actually is exempt from
Therefore, only the National local taxes. Otherwise, its
Manila is subject to control by Government has the power to
Congress. It should be stressed operation might be burdened,
issue "licenses or permits" for impeded or subjected to
that "municipal corporations the operation of gambling.
are mere creatures of control by a mere Local
Necessarily, the power to government.
Congress" which has the demand or collect license fees
power to "create and abolish
This doctrine emanates from to defeat an instrumentality Since PD 1869 remains an
the "supremacy" of the or creation of the very entity "operative" law until
National Government over which has the inherent power "amended, repealed or
local governments. to wield it. revoked" (Sec. 3, Art. XVIII, 1987
Constitution), its "exemption
Justice Holmes, made reference Petitioners also argue that the clause" remains as an
to the entire absence of power on Local Autonomy Clause of the exception to the exercise of
the part of the States to touch, in Constitution will be violated the power of local
that way (taxation) at least, the by P.D. 1869. governments to impose taxes
instrumentalities of the United and fees. It cannot therefore be
States (Johnson v. Maryland, 254 Ruling:
violative but rather is consistent
US 51) and it can be agreed that This is a pointless argument. with the principle of local
no state or political subdivision autonomy.
can regulate a federal Article X of the 1987 Constitution
instrumentality in such a way as provides that; “each local Besides, the principle of local
to prevent it from consummating government unit shall have autonomy under the 1987
its federal responsibilities, or even the power to create its own Constitution simply means
to seriously burden it in the source of revenue and to levy "decentralization". It does not
accomplishment of them. taxes, fees, and other charges make local governments
subject to such guidelines and sovereign within the state or
Otherwise, mere creatures of limitation “as the congress an "imperium in imperio."
the State can defeat National may provide”, consistent with
policies thru extermination of the basic policy on local Local Government has been
what local authorities may autonomy. Such taxes, fees and described as a political
perceive to be undesirable charges shall accrue exclusively subdivision of a nation or
activities or enterprise using to the local government”. state which is constituted by
the power to tax as "a tool for law and has substantial
regulation". The power of local government control of local affairs. In a
to "impose taxes and fees" is unitary system of government,
The power to tax which was called always subject to "limitations" such as the government under
by Justice Marshall as the "power which Congress may provide the Philippine Constitution,
to destroy" cannot be allowed by law. local governments can only be
an intra sovereign subdivision who may be accorded by RA 983), sweepstakes,
of one sovereign nation, it different treatment under the lotteries and races (RA 1169
cannot be an imperium in law as long as the as amended by B.P. 42) are
imperio. Local government in classification is not legalized under certain
such a system can only mean unreasonable or arbitrary. conditions, while others are
a measure of decentralization prohibited, does not render
of the function of government. A law does not have to the applicable laws, P.D. 1869
operate in equal force on all for one, unconstitutional.
What is settled is that the matter persons or things to be
of regulating, taxing or conformable to Article III, If the law presumably hits the
otherwise dealing with Section 1 of the Constitution. evil where it is most felt, it is
gambling is a State concern not to be overthrown because
and hence, it is the sole The "equal protection clause" there are other instances to
prerogative of the State to does not prohibit the which it might have been
retain it or delegate it to local Legislature from establishing applied. (Gomez v. Palomar, 25
governments. classes of individuals or SCRA 827)
objects upon which different
Petitioners next contend that P.D. rules shall operate. The On the issue of "monopoly,"
1869 violates the equal protection Constitution does not require however, the Constitution
clause of the Constitution, situations which are different provides that:
because "it legalized PAGCOR — in fact or opinion to be
conducted gambling, while most treated in law as though they Sec. 19. The State shall
gambling are outlawed together were the same. regulate or prohibit
with prostitution, drug trafficking monopolies when public
and other vices" Just how P.D. 1869 in legalizing interest so requires. No
gambling conducted by PAGCOR combinations in restraint of
We find no valid ground to is violative of the equal protection trade or unfair competition
sustain this contention. is not clearly explained in the shall be allowed. (Art. XII,
petition. The mere fact that National Economy and Patrimony)
The well-accepted meaning of the some gambling activities like
clause "equal protection of cockfighting (P.D 449) horse It should be noted that, as the
the laws" does not preclude racing (R.A. 306 as amended provision is worded, monopolies
classification of individuals are not necessarily prohibited
by the Constitution. The state Those who petition this Court to WHEREFORE, the petition is
must still decide whether declare a law, or parts thereof, DISMISSED for lack of merit.
public interest demands that unconstitutional must clearly
monopolies be regulated or establish the basis for such a
prohibited. declaration. Otherwise, their
petition must fail.
Again, this is a matter of policy
for the Legislature to decide. Parenthetically, We wish to state
that gambling is generally
They were rather “directives” immoral, and this is precisely so
addressed to the executive when the gambling resorted to is Lina v Pano (G.R. No. 129093,
and the legislature. excessive. This excessiveness August 30, 2001)

If the executive and the necessarily depends not only on

On December 29, 1995,
legislature failed to heed the the financial resources of the
respondent Tony Calvento was
directives, the electorate gambler and his family but also on
appointed agent by the Philippine
could express their his mental, social, and spiritual
Charity Sweepstakes Office
displeasure with the failure of outlook on life.
(PCSO) to install Terminal OM 20
the executive and the However, the mere fact that some for the operation of lotto. He
legislature through the persons may have lost their asked Mayor Calixto Cataquiz,
language of the ballot. material fortunes, mental control, Mayor of San Pedro, Laguna, for a
physical health, or even their lives mayor's permit to open the lotto
Every law has in its favor the outlet. This was denied by Mayor
presumption of constitutionality. does not necessarily mean that
the same are directly attributable Cataquiz in a letter dated
Therefore, for PD 1869 to be to gambling. Gambling may have February 19, 1996. The ground for
nullified, it must be shown that been the antecedent, but certainly said denial was an ordinance
there is a clear and unequivocal not necessarily the cause. For the passed by the Sangguniang
breach of the Constitution, not same consequences could have Panlalawigan of Laguna entitled
merely a doubtful and equivocal been preceded by an overdose of Kapasiyahan Blg. 508, T. 1995
one. In other words, the grounds food, drink, exercise, work, and which was issued on September
for nullity must be clear and even sex. 18, 1995. The ordinance reads:
beyond reasonable doubt.
ISANG KAPASIYAHAN Philippine National Police (PNP) Paño, promulgated his decision
TINUTUTULAN ANG MGA "ILLEGAL Col. [illegible] na mahigpit na pag- enjoining the petitioners from
GAMBLING" LALO NA ANG LOTTO ibayuhin ang pagsugpo sa lahat implementing or enforcing
SA LALAWIGAN NG LAGUNA ng uri ng illegal na sugal sa buong resolution or Kapasiyahan Blg.
lalawigan ng Laguna lalo na ang 508, T. 1995. The dispositive
"Jueteng".3 portion of said decision reads:
SAPAGKA'T, ang sugal dito sa As a result of this resolution of WHEREFORE, premises
lalawigan ng Laguna ay talamak denial, respondent Calvento filed considered, defendants, their
na; a complaint for declaratory relief agents and representatives are
SAPAGKA'T, ang sugal ay with prayer for preliminary hereby enjoined from
nagdudulot ng masasamang injunction and temporary implementing or enforcing
impluwensiya lalo't higit sa mga restraining order. In the said resolution or kapasiyahan blg.
kabataan; complaint, respondent Calvento 508, T. 1995 of the Sangguniang
asked the Regional Trial Court of Panlalawigan ng Laguna
KUNG KAYA'T DAHIL DITO, at sa San Pedro Laguna, Branch 93, for prohibiting the operation of the
mungkahi nina Kgg. Kgd. Juan M. the following reliefs: (1) a lotto in the province of Laguna.
Unico at Kgg. Kgd. Gat-Ala A. preliminary injunction or
Alatiit, pinangalawahan ni Kgg. temporary restraining order, SO ORDERED.4
Kgd. Meliton C. Larano at buong ordering the defendants to refrain Petitioners filed a motion for
pagkakaisang sinangayunan ng from implementing or enforcing reconsideration which was
lahat ng dumalo sa pulong; Kapasiyahan Blg. 508, T. 1995; (2) subsequently denied in an Order
an order requiring Hon. Municipal dated April 21, 1997, which reads:
IPINASIYA, na tutulan gaya ng dito Mayor Calixto R Cataquiz to issue
ay mahigpit na TINUTUTULAN ang a business permit for the Acting on the Motion for
ano mang uri ng sugal dito sa operation of a lotto outlet; and (3) Reconsideration filed by
lalawigan ng Laguna lalo't higit an order annulling or declaring as defendants Jose D. Lina, Jr. and
ang Lotto; invalid Kapasiyahan Blg. 508, T. the Sangguniang Panlalawigan of
1995. Laguna, thru counsel, with the
IPINASIYA PA RIN na hilingin tulad
ng dito ay hinihiling sa opposition filed by plaintiff's
On February 10, 1997, the counsel and the comment thereto
Panlalawigang pinuno ng respondent judge, Francisco Dizon filed by counsel for the
defendants which were duly THE TRIAL COURT FAILED TO sought before it was implemented
noted, the Court hereby denies APPRECIATE THE ARGUMENT contrary to the express provisions
the motion for lack of merit. POSITED BY THE PETITIONERS of Sections 2 (c) and 27 of R.A.
THAT BEFORE ANY GOVERNMENT 7160.7
SO ORDERED.5 PROJECT OR PROGRAM MAY BE
IMPLEMENTED BY THE NATIONAL
AGENCIES OR OFFICES, PRIOR For his part, respondent Calvento
On May 23, 1997, petitioners filed CONSULTATION AND APPROVAL argues that the questioned
this petition alleging that the BY THE LOCAL GOVERNMENT resolution is, in effect, a
following errors were committed UNITS CONCERNED AND OTHER curtailment of the power of the
by the respondent trial court: CONCERNED SECTORS IS state since in this case the
REQUIRED. national legislature itself had
already declared lotto as legal and
I permitted its operations around
Petitioners contend that the the country.8 As for the allegation
assailed resolution is a valid policy that no prior consultations and
declaration of the Provincial approval were sought from the
THE TRIAL COURT ERRED IN
Government of Laguna of its sangguniang panlalawigan of
ENJOINING THE PETITIONERS
vehement objection to the Laguna, respondent Calvento
FROM IMPLEMENTING
operation of lotto and all forms of contends this is not mandatory
KAPASIYAHAN BLG. 508, T. 1995
gambling. It is likewise a valid since such a requirement is
OF THE SANGGUNIANG
exercise of the provincial merely stated as a declaration of
PANLALAWIGAN OF LAGUNA
government's police power under policy and not a self-executing
PROHIBITING THE OPERATION OF
the General Welfare Clause of provision of the Local Government
THE LOTTO IN THE PROVINCE OF
Republic Act 7160, otherwise Code of 1991.9 He also states that
LAGUNA.
known as the Local Government his operation of the lotto system is
Code of 1991.6 They also legal because of the authority
maintain that respondent's lotto given to him by the PCSO, which
II operation is illegal because no in turn had been granted a
prior consultations and approval franchise to operate the lotto by
by the local government were Congress.10
 Panlalawigan cannot nullify the the said game. It is but a mere
exercise of said authority by policy statement on the part of
The Office of the Solicitor General preventing something already the local council, which is not self-
(OSG), for the State, contends allowed by Congress. executing. Nor could it serve as a
that the Provincial Government of valid ground to prohibit the
Laguna has no power to prohibit a operation of the lotto system in
form of gambling which has been the province of Laguna. Even
authorized by the national The issues to be resolved now are
the following: (1) whether petitioners admit as much when
government.11 He argues that they stated in their petition that:
this is based on the principle that Kapasiyahan Blg. 508, T. 1995 of
ordinances should not contravene the Sangguniang Panlalawigan of
statutes as municipal Laguna and the denial of a
governments are merely agents of mayor's permit based thereon are 5.7. The terms of the Resolution
the national government. The valid; and (2) whether prior and the validity thereof are
local councils exercise only consultations and approval by the express and clear. The Resolution
delegated legislative powers concerned Sanggunian are is a policy declaration of the
which have been conferred on needed before a lotto system can Provincial Government of Laguna
them by Congress. This being the be operated in a given local of its vehement opposition and/or
case, these councils, as delegates, government unit. objection to the operation of
cannot be superior to the principal and/or all forms of gambling
or exercise powers higher than including the Lotto operation in
those of the latter. The OSG also The entire controversy stemmed the Province of Laguna.12
adds that the question of whether from the refusal of Mayor Cataquiz
gambling should be permitted is to issue a mayor's permit for the
for Congress to determine, taking operation of a lotto outlet in favor As a policy statement expressing
into account national and local of private respondent. According the local government's objection
interests. Since Congress has to the mayor, he based his to the lotto, such resolution is
allowed the PCSO to operate decision on an existing ordinance valid. This is part of the local
lotteries which PCSO seeks to prohibiting the operation of lotto government's autonomy to air its
conduct in Laguna, pursuant to its in the province of Laguna. The views which may be contrary to
legislative grant of authority, the ordinance, however, merely states that of the national government's.
province's Sangguniang the "objection" of the council to However, this freedom to exercise
contrary views does not mean programs, medical assistance and allows by law, such as lotto, a
that local governments may services and charities of national provincial board may not disallow
actually enact ordinances that go character, and as such shall have by ordinance or resolution.
against laws duly enacted by the general powers conferred in
Congress. Given this premise, the section thirteen of Act Numbered
assailed resolution in this case One thousand four hundred fifty- In our system of government, the
could not and should not be nine, as amended, and shall have power of local government units
interpreted as a measure or the authority: to legislate and enact ordinances
ordinance prohibiting the and resolutions is merely a
operation of lotto. delegated power coming from
A. To hold and conduct charity Congress. As held in Tatel vs.
sweepstakes races, lotteries, and Virac,13 ordinances should not
The game of lotto is a game of other similar activities, in such contravene an existing statute
chance duly authorized by the frequency and manner, as shall be enacted by Congress. The reasons
national government through an determined, and subject to such for this is obvious, as elucidated in
Act of Congress. Republic Act rules and regulations as shall be Magtajas v. Pryce Properties
1169, as amended by Batas promulgated by the Board of Corp.14
Pambansa Blg. 42, is the law Directors.
which grants a franchise to the
PCSO and allows it to operate the Municipal governments are only
lotteries. The pertinent provision This statute remains valid today. agents of the national
reads: While lotto is clearly a game of government. Local councils
chance, the national government exercise only delegated legislative
deems it wise and proper to powers conferred upon them by
SECTION 1. The Philippine Charity permit it. Hence, the Sangguniang Congress as the national
Sweepstakes Office. — The Panlalawigan of Laguna, a local lawmaking body. The delegate
Philippine Charity Sweepstakes government unit, cannot issue a cannot be superior to the principal
Office, hereinafter designated the resolution or an ordinance that or exercise powers higher than
Office, shall be the principal would seek to prohibit permits. those of the latter. It is a heresy to
government agency for raising Stated otherwise, what the suggest that the local government
and providing for funds for health national legislature expressly units can undo the acts of
Congress, from which they have be withdrawn by mere statute. By
derived their power in the first and large, however, the national
place, and negate by mere Nothing in the present legislature is still the principal of
ordinance the mandate of the constitutional provision enhancing the local government units, which
statute. local autonomy dictates a cannot defy its will or modify or
different conclusion. violate it.15

Municipal corporations owe their

origin to, and derive their powers The basic relationship between Ours is still a unitary form of
and rights wholly from the the national legislature and the government, not a federal state.
legislature. It breathes into them local government units has not Being so, any form of autonomy
the breath of life, without which been enfeebled by the new granted to local governments will
they cannot exist. As it creates, so provisions in the Constitution necessarily be limited and
it may destroy. As it may destroy, strengthening the policy of local confined within the extent allowed
it may abridge and control. Unless autonomy. Without meaning to by the central authority. Besides,
there is some constitutional detract from that policy, we here the principle of local autonomy
limitation on the right, the confirm that Congress retains under the 1987 Constitution
legislature might, by a single act, control of the local government simply means "decentralization".
and if we can suppose it capable units although in significantly It does not make local
of so great a folly and so great a reduced degree now than under governments sovereign within the
wrong, sweep from existence all our previous Constitutions. The state or an "imperium in
of the municipal corporations in power to create still includes the imperio".16
the state, and the corporation power to destroy. The power to
could not prevent it. We know of grant still includes the power to
no limitation on the right so far as withhold or recall. True, there are
certain notable innovations in the To conclude our resolution of the
the corporation themselves are first issue, respondent mayor of
concerned. They are, so to phrase Constitution, like the direct
conferment on the local San Pedro, cannot avail of
it, the mere tenants at will of the Kapasiyahan Bilang 508, Taon
legislature (citing Clinton vs. government units of the power to
tax (citing Art. X, Sec. 5, 1995, of the Provincial Board of
Ceder Rapids, etc. Railroad Co., Laguna as justification to prohibit
24 Iowa 455). Constitution), which cannot now
lotto in his municipality. For said
resolution is nothing but an concerned sectors of the charitable institution, the PCSO.
expression of the local legislative community before any project or Though sanctioned by the national
unit concerned. The Board's program is implemented in their government, it is far fetched to
enactment, like spring water, respective jurisdictions. say that lotto falls within the
could not rise above its source of contemplation of Sections 2 (c)
power, the national legislature. and 27 of the Local Government
SECTION 27. Prior Consultations Code.
Required. — No project or
As for the second issue, we hold program shall be implemented by
that petitioners erred in declaring government authorities unless the Section 27 of the Code should be
that Sections 2 (c) and 27 of consultations mentioned in read in conjunction with Section
Republic Act 7160, otherwise Section 2 (c) and 26 hereof are 26 thereof.17 Section 26 reads:
known as the Local Government complied with, and prior approval
Code of 1991, apply mandatorily of the sanggunian concerned is
in the setting up of lotto outlets obtained; Provided, that SECTION 26. Duty of National
around the country. These occupants in areas where such Government Agencies in the
provisions state: projects are to be implemented Maintenance of Ecological
shall not be evicted unless, Balance. - It shall be the duty of
appropriate relocation sites have every national agency or
SECTION 2. Declaration of Policy. been provided, in accordance with government-owned or controlled
—... the provisions of the Constitution. corporation authorizing or
involved in the planning and
implementation of any project or
(c) It is likewise the policy of the From a careful reading of said program that may cause pollution,
State to require all national provisions, we find that these climatic change, depletion of non-
agencies and offices to conduct apply only to national programs renewable resources, loss of crop
periodic consultations with and/or projects which are to be land, range-land, or forest cover,
appropriate local government implemented in a particular local and extinction of animal or plant
units, non-governmental and community. Lotto is neither a species, to consult with the local
people's organizations, and other program nor a project of the government units,
national government, but of a nongovernmental organizations,
and other sectors concerned and Obviously, none of these effects nor requires any act of
explain the goals and objectives will be produced by the implementation. It provides no
of the project or program, its introduction of lotto in the sufficient legal basis for
impact upon the people and the province of Laguna. respondent mayor's refusal to
community in terms of issue the permit sought by private
environmental or ecological respondent in connection with a
balance, and the measures that Moreover, the argument regarding legitimate business activity
will be undertaken to prevent or lack of consultation raised by authorized by a law passed by
minimize the adverse effects petitioners is clearly an Congress.
thereof. afterthought on their part. There
is no indication in the letter of
Mayor Cataquiz that this was one WHEREFORE, the petition is
Thus, the projects and programs of the reasons for his refusal to DENIED for lack of merit. The
mentioned in Section 27 should be issue a permit. That refusal was Order of the Regional Trial Court
interpreted to mean projects and predicated solely but erroneously of San Pedro, Laguna enjoining
programs whose effects are on the provisions of Kapasiyahan the petitioners from implementing
among those enumerated in Blg. 508, Taon 1995, of the or enforcing Resolution or
Section 26 and 27, to wit, those Sangguniang Panlalawigan of Kapasiyahan Blg. 508, T. 1995, of
that: (1) may cause pollution; (2) Laguna. the Provincial Board of Laguna is
may bring about climatic change; hereby AFFIRMED. No costs.
(3) may cause the depletion of
non-renewable resources; (4) may In sum, we find no reversible error
result in loss of crop land, range- in the RTC decision enjoining SO ORDERED.
land, or forest cover; (5) may Mayor Cataquiz from enforcing or
eradicate certain animal or plant implementing the Kapasiyahan
species from the face of the Blg. 508, T. 1995, of the
planet; and (6) other projects or Limbona v. Mangelin (G.R. No.
Sangguniang Panlalawigan of 80391, February 28, 1989)
programs that may call for the Laguna. That resolution expresses
eviction of a particular group of merely a policy statement of the The acts of the Sangguniang
people residing in the locality Laguna provincial board. It Pampook of Region XII are
where these will be implemented. possesses no binding legal force
assailed in this petition. The del Sur but they later withdrew The result of the conference,
antecedent facts are as follows: from the aforesaid election and consultations and dialogues would
thereafter resumed again their hopefully chart the autonomous
positions as members of the governments of the two regions
1. On September 24, 1986, Assembly. as envisioned and may prod the
petitioner Sultan Alimbusar President to constitute
Limbona was appointed as a immediately the Regional
member of the Sangguniang 4. On October 21, 1987 Consultative Commission as
Pampook, Regional Autonomous Congressman Datu Guimid mandated by the Commission.
Government, Region XII, Matalam, Chairman of the
representing Lanao del Sur. Committee on Muslim Affairs of
the House of Representatives, You are requested to invite some
invited Mr. Xavier Razul, Pampook members of the Pampook
2. On March 12, 1987 petitioner Speaker of Region XI, Zamboanga Assembly of your respective
was elected Speaker of the City and the petitioner in his assembly on November 1 to 15,
Regional Legislative Assembly or capacity as Speaker of the 1987, with venue at the Congress
Batasang Pampook of Central Assembly, Region XII, in a letter of the Philippines. Your presence,
Mindanao (Assembly for brevity). which reads: unstinted support and cooperation
is (sic) indispensable.

3. Said Assembly is composed of The Committee on Muslim Affairs

eighteen (18) members. Two of well undertake consultations and 5. Consistent with the said
said members, respondents dialogues with local government invitation, petitioner sent a
Acmad Tomawis and Pakil officials, civic, religious telegram to Acting Secretary
Dagalangit, filed on March 23, organizations and traditional Johnny Alimbuyao of the Assembly
1987 with the Commission on leaders on the recent and present to wire all Assemblymen that
Elections their respective political developments and other there shall be no session in
certificates of candidacy in the issues affecting Regions IX and November as "our presence in the
May 11, 1987 congressional XII. house committee hearing of
elections for the district of Lanao Congress take (sic) precedence
over any pending business in MATALAM FOLLOWS UNQUOTE
batasang pampook ... ." REGARDS.
8. Sinsuat, Bimbo

6. In compliance with the 7. On November 2, 1987, the

aforesaid instruction of the Assembly held session in defiance 9. Tomawis, Acmad
petitioner, Acting Secretary of petitioner's advice, with the
Alimbuyao sent to the members of following assemblymen present:
the Assembly the following 10. Tomawis, Jerry
telegram:
1. Sali, Salic
After declaring the presence of a
TRANSMITTING FOR YOUR quorum, the Speaker Pro-Tempore
INFORMATION AND GUIDANCE 2. Conding, Pilipinas (sic) was authorized to preside in the
TELEGRAM RECEIVED FROM session. On Motion to declare the
SPEAKER LIMBONA QUOTE seat of the Speaker vacant, all
CONGRESSMAN JIMMY MATALAM Assemblymen in attendance voted
CHAIRMAN OF THE HOUSE 3. Dagalangit, Rakil in the affirmative, hence, the chair
COMMITTEE ON MUSLIM AFFAIRS declared said seat of the Speaker
REQUESTED ME TO ASSIST SAID vacant. 8. On November 5, 1987,
COMMITTEE IN THE DISCUSSION 4. Dela Fuente, Antonio the session of the Assembly
OF THE PROPOSED AUTONOMY resumed with the following
ORGANIC NOV. 1ST TO 15. HENCE Assemblymen present:
WERE ALL ASSEMBLYMEN THAT
5. Mangelen, Conte
THERE SHALL BE NO SESSION IN
NOVEMBER AS OUR PRESENCE IN
1. Mangelen Conte-Presiding
THE HOUSE COMMITTEE HEARING
Officer
OF CONGRESS TAKE PRECEDENCE 6. Ortiz, Jesus
OVER ANY PENDING BUSINESS IN
BATASANG PAMPOOK OF
2. Ali Salic
7. Palomares, Diego
 12. Sinsuat, Bimbo

3. Ali Salindatu HON. SALIC ALI: I second the

motions.
13. Tomawis, Acmad

4. Aratuc, Malik
PRESIDING OFFICER: Any
14. Tomawis, Jerry comment or objections on the two
5. Cajelo, Rene motions presented? Me chair
hears none and the said motions
An excerpt from the debates and are approved. ...
proceeding of said session reads:
6. Conding, Pilipinas (sic)

Twelve (12) members voted in

HON. DAGALANGIT: Mr. Speaker, favor of the motion to declare the
7. Dagalangit, Rakil Honorable Members of the House, seat of the Speaker vacant; one
with the presence of our abstained and none voted against.
colleagues who have come to 1
8. Dela Fuente, Antonio attend the session today, I move
to call the names of the new
comers in order for them to cast Accordingly, the petitioner prays
their votes on the previous motion for judgment as follows:
9. Ortiz, Jesus
to declare the position of the
Speaker vacant. But before doing
so, I move also that the
10 Palomares, Diego designation of the Speaker Pro WHEREFORE, petitioner
Tempore as the Presiding Officer respectfully prays that-
and Mr. Johnny Evangelists as
11. Quijano, Jesus Acting Secretary in the session
last November 2, 1987 be (a) This Petition be given due
reconfirmed in today's session. course;
 Petitioner likewise prays for such usurpation of the power of the
other relief as may be just and Assembly," 5 that the petitioner
(b) Pending hearing, a restraining equitable. 2 "had recently caused withdrawal
order or writ of preliminary of so much amount of cash from
injunction be issued enjoining the Assembly resulting to the non-
respondents from proceeding with payment of the salaries and
their session to be held on Pending further proceedings, this
Court, on January 19, 1988, emoluments of some Assembly
November 5, 1987, and on any [sic]," 6 and that he had "filed a
day thereafter; received a resolution filed by the
Sangguniang Pampook, case before the Supreme Court
"EXPECTING ALIMBUSAR P. against some members of the
LIMBONA FROM MEMBERSHIP OF Assembly on question which
(c) After hearing, judgment be THE SANGGUNIANG PAMPOOK should have been resolved within
rendered declaring the AUTONOMOUS REGION XII," 3 on the confines of the Assembly," 7
proceedings held by respondents the grounds, among other things, for which the respondents now
of their session on November 2, that the petitioner "had caused to submit that the petition had
1987 as null and void; be prepared and signed by him become "moot and academic". 8
paying [sic] the salaries and
emoluments of Odin Abdula, who
(d) Holding the election of was considered resigned after The first question, evidently, is
petitioner as Speaker of said filing his Certificate of Candidacy whether or not the expulsion of
Legislative Assembly or Batasan for Congressmen for the First the petitioner (pending litigation)
Pampook, Region XII held on District of Maguindanao in the last has made the case moot and
March 12, 1987 valid and May 11, elections. . . and nothing academic.
subsisting, and in the record of the Assembly will
show that any request for
reinstatement by Abdula was ever We do not agree that the case has
made . . ." 4 and that "such action been rendered moot and
(e) Making the injunction
of Mr. Lim bona in paying Abdula academic by reason simply of the
permanent.
his salaries and emoluments expulsion resolution so issued.
without authority from the For, if the petitioner's expulsion
Assembly . . . constituted a was done purposely to make this
petition moot and academic, and settled." 11 Certainly, that other Assemblymen against the
to preempt the Court, it will not avowed wanting or desire to petitioner arising from what the
make it academic. thresh out and settle, no matter former perceive to be abduracy
how conciliatory it may be cannot on the part of the latter. Indeed, it
be a substitute for the notice and (the resolution) speaks of "a case
On the ground of the immutable hearing contemplated by law. [having been filed] [by the
principle of due process alone, we petitioner] before the Supreme
hold that the expulsion in Court . . . on question which
question is of no force and effect. While we have held that due should have been resolved within
In the first place, there is no process, as the term is known in the confines of the Assemblyman
showing that the Sanggunian had administrative law, does not act which some members claimed
conducted an investigation, and absolutely require notice and that unnecessarily and unduly assails
whether or not the petitioner had a party need only be given the their integrity and character as
been heard in his defense, opportunity to be heard, 12 it representative of the people" 13
assuming that there was an does not appear herein that the an act that cannot possibly justify
investigation, or otherwise given petitioner had, to begin with, been expulsion. Access to judicial
the opportunity to do so. On the made aware that he had in fact remedies is guaranteed by the
other hand, what appears in the stood charged of graft and Constitution, 14 and, unless the
records is an admission by the corruption before his collegues. It recourse amounts to malicious
Assembly (at least, the cannot be said therefore that he prosecution, no one may be
respondents) that "since was accorded any opportunity to punished for seeking redress in
November, 1987 up to this rebut their accusations. As it the courts.
writing, the petitioner has not set stands, then, the charges now
foot at the Sangguniang levelled amount to mere
Pampook." 9 "To be sure, the accusations that cannot warrant We therefore order reinstatement,
private respondents aver that expulsion. with the caution that should the
"[t]he Assemblymen, in a past acts of the petitioner indeed
conciliatory gesture, wanted him warrant his removal, the
to come to Cotabato City," 10 but In the second place, (the Assembly is enjoined, should it
that was "so that their differences resolution) appears strongly to be still be so minded, to commence
could be threshed out and a bare act of vendetta by the proper proceedings therefor in
line with the most elementary The autonomous governments of
requirements of due process. And Mindanao were organized in
while it is within the discretion of Regions IX and XII by Presidential (2) Foreign relations;
the members of the Sanggunian Decree No. 1618 15 promulgated
to punish their erring colleagues, on July 25, 1979. Among other
their acts are nonetheless subject things, the Decree established (3) Foreign trade;
to the moderating band of this "internal autonomy" 16 in the two
Court in the event that such regions "[w]ithin the framework of
discretion is exercised with grave the national sovereignty and
(4) Currency, monetary affairs,
abuse. territorial integrity of the Republic
foreign exchange, banking and
of the Philippines and its
quasi-banking, and external
Constitution," 17 with legislative
borrowing,
It is, to be sure, said that precisely and executive machinery to
because the Sangguniang exercise the powers and
Pampook(s) are "autonomous," responsibilities 18 specified
therein. (5) Disposition, exploration,
the courts may not rightfully
development, exploitation or
intervene in their affairs, much
utilization of all natural resources;
less strike down their acts. We
come, therefore, to the second It requires the autonomous
issue: Are the so-called regional governments to
autonomous governments of "undertake all internal (6) Air and sea transport
Mindanao, as they are now administrative matters for the
constituted, subject to the respective regions," 19 except to
jurisdiction of the national courts? "act on matters which are within (7) Postal matters and
In other words, what is the extent the jurisdiction and competence telecommunications;
of self-government given to the of the National Government," 20
two autonomous governments of "which include, but are not limited
Region IX and XII? to, the following:
(8) Customs and quarantine;

(1) National defense and security;

(9) Immigration and deportation; the base of government power intervention from central
and in the process to make local authorities. According to a
governments "more responsive constitutional author,
(10) Citizenship and and accountable," 23 "and ensure decentralization of power
naturalization; their fullest development as self- amounts to "self-immolation,"
reliant communities and make since in that event, the
them more effective partners in autonomous government
the pursuit of national becomes accountable not to the
(11) National economic, social and development and social progress." central authorities but to its
educational planning; and 24 At the same time, it relieves constituency. 28
the central government of the
burden of managing local affairs
(12) General auditing. 21 and enables it to concentrate on But the question of whether or not
national concerns. The President the grant of autonomy Muslim
exercises "general supervision" 25 Mindanao under the 1987
over them, but only to "ensure Constitution involves, truly, an
In relation to the central
that local affairs are administered effort to decentralize power rather
government, it provides that
according to law." 26 He has no than mere administration is a
"[t]he President shall have the
control over their acts in the question foreign to this petition,
power of general supervision and
sense that he can substitute their since what is involved herein is a
control over the Autonomous
judgments with his own. 27 local government unit constituted
Regions ..." 22
prior to the ratification of the
present Constitution. Hence, the
Decentralization of power, on the Court will not resolve that
Now, autonomy is either
other hand, involves an abdication controversy now, in this case,
decentralization of administration
of political power in the favor of since no controversy in fact exists.
or decentralization of power.
local governments units declare to We will resolve it at the proper
There is decentralization of
be autonomous . In that case, the time and in the proper case.
administration when the central
autonomous government is free to
government delegates
chart its own destiny and shape
administrative powers to political
its future with minimum
subdivisions in order to broaden
Under the 1987 Constitution, local heritage, economic and social are beyond our jurisdiction. But if
government units enjoy autonomy structures, and other relevant it is autonomous in the former
in these two senses, thus: characteristics within the category only, it comes
framework of this Constitution and unarguably under our jurisdiction.
the national sovereignty as well as An examination of the very
Section 1. The territorial and territorial integrity of the Republic Presidential Decree creating the
political subdivisions of the of the Philippines. 31 autonomous governments of
Republic of the Philippines are the Mindanao persuades us that they
provinces, cities, municipalities, were never meant to exercise
and barangays. Here shall be An autonomous government that autonomy in the second sense,
autonomous regions in Muslim enjoys autonomy of the latter that is, in which the central
Mindanao ,and the Cordilleras as category [CONST. (1987), art. X, government commits an act of
hereinafter provided. 29 sec. 15.] is subject alone to the self-immolation. Presidential
decree of the organic act creating Decree No. 1618, in the first
it and accepted principles on the place, mandates that "[t]he
effects and limits of "autonomy." President shall have the power of
Sec. 2. The territorial and political general supervision and control
subdivisions shall enjoy local On the other hand, an
autonomous government of the over Autonomous Regions."33 In
autonomy. 30 the second place, the
former class is, as we noted,
under the supervision of the Sangguniang Pampook, their
national government acting legislative arm, is made to
xxx xxx xxx through the President (and the discharge chiefly administrative
Department of Local services, thus:
Government). 32 If the
See. 15. Mere shall be created Sangguniang Pampook (of Region
autonomous regions in Muslim XII), then, is autonomous in the SEC. 7. Powers of the
Mindanao and in the Cordilleras latter sense, its acts are, Sangguniang Pampook. The
consisting of provinces, cities, debatably beyond the domain of Sangguniang Pampook shall
municipalities, and geographical this Court in perhaps the same exercise local legislative powers
areas sharing common and way that the internal acts, say, of over regional affairs within the
distinctive historical and cultural the Congress of the Philippines framework of national
development plans, policies and The President shall exercise such
goals, in the following areas: powers as may be necessary to
(7) Maintenance, operation and assure that enactment and acts of
administration of schools the Sangguniang Pampook and
established by the Autonomous the Lupong Tagapagpaganap ng
(1) Organization of regional Region;
administrative system; Pook are in compliance with this
Decree, national legislation,
policies, plans and programs.
(8) Establishment, operation and
(2) Economic, social and cultural maintenance of health, welfare
development of the Autonomous and other social services,
Region; The Sangguniang Pampook shall
programs and facilities; maintain liaison with the Batasang
Pambansa. 34

(3) Agricultural, commercial and (9) Preservation and development

industrial programs for the of customs, traditions, languages
Autonomous Region; Hence, we assume jurisdiction.
and culture indigenous to the And if we can make an inquiry in
Autonomous Region; and the validity of the expulsion in
question, with more reason can
(4) Infrastructure development for we review the petitioner's removal
the Autonomous Region; (10) Such other matters as may as Speaker.
be authorized by law,including the
enactment of such measures as
(5) Urban and rural planning for may be necessary for the Briefly, the petitioner assails the
the Autonomous Region; promotion of the general welfare legality of his ouster as Speaker
of the people in the Autonomous on the grounds that: (1) the
Region. Sanggunian, in convening on
(6) Taxation and other revenue- November 2 and 5, 1987 (for the
raising measures as provided for sole purpose of declaring the
in this Decree; office of the Speaker vacant), did
so in violation of the Rules of the "a recess when arguments get not be called, it does not appear
Sangguniang Pampook since the heated up so that protagonists in that the respondents called his
Assembly was then on recess; and a debate can talk things out attention to this mistake. What
(2) assuming that it was valid, his informally and obviate dissenssion appears is that instead, they
ouster was ineffective [sic] and disunity. 37 The Court opened the sessions themselves
nevertheless for lack of quorum. agrees with the respondents on behind his back in an apparent act
this regard, since clearly, the of mutiny. Under the
Rules speak of "short intervals." circumstances, we find equity on
Upon the facts presented, we hold Secondly, the Court likewise his side. For this reason, we
that the November 2 and 5, 1987 agrees that the Speaker could not uphold the "recess" called on the
sessions were invalid. It is true have validly called a recess since ground of good faith.
that under Section 31 of the the Assembly had yet to convene
Region XII Sanggunian Rules, on November 1, the date session
"[s]essions shall not be suspended opens under the same Rules. 38 It does not appear to us,
or adjourned except by direction Hence, there can be no recess to moreover, that the petitioner had
of the Sangguniang Pampook," 35 speak of that could possibly resorted to the aforesaid "recess"
but it provides likewise that "the interrupt any session. But while in order to forestall the Assembly
Speaker may, on [sic] his this opinion is in accord with the from bringing about his ouster.
discretion, declare a recess of respondents' own, we still This is not apparent from the
"short intervals." 36 Of course, invalidate the twin sessions in pleadings before us. We are
there is disagreement between question, since at the time the convinced that the invitation was
the protagonists as to whether or petitioner called the "recess," it what precipitated it.
not the recess called by the was not a settled matter whether
petitioner effective November 1 or not he could. do so. In the
through 15, 1987 is the "recess of second place, the invitation
tendered by the Committee on In holding that the "recess" in
short intervals" referred to; the question is valid, we are not to be
petitioner says that it is while the Muslim Affairs of the House of
Representatives provided a taken as establishing a precedent,
respondents insist that, to all since, as we said, a recess can not
intents and purposes, it was an plausible reason for the
intermission sought. Thirdly, be validly declared without a
adjournment and that "recess" as session having been first opened.
used by their Rules only refers to assuming that a valid recess could
In upholding the petitioner herein,
we are not giving him a carte Region XII; and (2) REINSTATE him Act No. 6734 (R.A. 6734), entitled
blanche to order recesses in the as Speaker thereof. No costs. “An Act Providing for An Organic
future in violation of the Rules, or Act for the Autonomous Region in
otherwise to prevent the lawful Muslim Mindanao,” was enacted
meetings thereof. SO ORDERED. and signed into law on 1 August
1989. The law called for the
holding of a plebiscite in the
Neither are we, by this disposition, provinces of Basilan, Cotabato,
discouraging the Sanggunian from Davao del Sur, Lanao del Norte,
reorganizing itself pursuant to its Lanao del Sur, Maguindanao,
Disomangcop v. Datumanong
lawful prerogatives. Certainly, it Palawan, South Cotabato, Sultan
(G.R. No. 149848, 25
can do so at the proper time. In Kudarat, Sulu, Tawi-Tawi,
November 2004)
the event that be petitioner Zamboanga del Norte, and
should initiate obstructive moves, Facts: Challenged in the instant Zamboanga del Sur, and the cities
the Court is certain that it is petition for certiorari, prohibition of Cotabato, Dapitan, Dipolog,
armed with enough coercive and mandamus with prayer for a General Santos, Iligan, Marawi,
remedies to thwart them. 39 temporary restraining order Pagadian, Puerto Princesa and
and/or writ of preliminary Zamboanga. In the plebiscite, only
injunction are the constitutionality four (4) provinces voted for the
and validity of Republic Act No. creation of an autonomous region,
In view hereof, we find no need in 8999 entitled “An Act Establishing namely: Lanao del Sur,
dwelling on the issue of quorum. An Engineering District in the First Maguindanao, Sulu and Tawi-Tawi.
District of the Province of Lanao These provinces became the
del Sur and Appropriating Funds Autonomous Region in Muslim
WHEREFORE, premises Therefor,” and Department of Mindanao (ARMM). The law
considered, the petition is Public Works and Highways contains elaborate provisions on
GRANTED. The Sangguniang (DPWH) Department Order No. the powers of the Regional
Pampook, Region XII, is ENJOINED 119 on the subject, “Creation of Government and the areas of
to (1) REINSTATE the petitioner as Marawi Sub-District Engineering jurisdiction which are reserved for
Member, Sangguniang Pampook, Office.” Pursuant to the the National Government.
constitutional mandate, Republic President Aquino issued E.O. 426,
entitled “Placing the Control and revocation of D.O. 119 and the
Supervision of the Offices of the nonimplementation of R.A. 8999.
DPWH within the ARMM under the No action, however, was taken on Issue: WON DPWH Department
Autonomous Regional the petition. Petitioners alleged Order No. 119 was valid Held: NO.
Government, and for other that D.O. 119 was issued with D.O. 119 creating the Marawi Sub-
purposes.” Nearly nine (9) years grave abuse of discretion and that District Engineering Office which
later, then DPWH Secretary it violates the constitutional has jurisdiction over infrastructure
Gregorio R. Vigilar issued D.O. 119 autonomy of the ARMM. They projects within Marawi City and
(Creation of Marawi Sub-District point out that the challenged Lanao del Sur is violative of the
Engineering Office which shall Department Order has tasked the provisions of E.O. 426. The
have jurisdiction over all national Marawi Sub-District Engineering Executive Order was issued
infrastructure projects and Office with functions that have pursuant to R.A. 6734—which
facilities under the DPWH within already been devolved to the initiated the creation of the
Marawi City and the province of DPWH-ARMM First Engineering constitutionally-mandated
Lanao del Sur.) Almost two years District in Lanao del Sur. autonomous region and which
later, President Estrada approved Petitioners also contend that R.A. defined the basic structure of the
and signed into law R.A. 8999 8999 is a piece of legislation that autonomous government. E.O.
(establishing engineering district was not intelligently and 426 sought to implement the
in Lanao del Sur). Congress later thoroughly studied, and that the transfer of the control and
passed R.A. 9054, entitled “An Act explanatory note to House Bill No. supervision of the DPWH within
to Strengthen and Expand the 995 (H.B. 995) from which the law the ARMM to the Autonomous
Organic Act for the Autonomous originated is questionable. Regional Government. In
Region in Muslim Mindanao, Petitioners assert as well that particular, it identified four (4)
Amending for the Purpose prior to the sponsorship of the District Engineering Offices in
Republic Act No. 6734, entitled An law, no public hearing nor each of the four (4) provinces,
Act Providing for the Autonomous consultation with the DPWH-ARMM namely: Lanao del Sur,
Region in Muslim Mindanao, as was made. The House Committee Maguindanao, Sulu and Tawi-Tawi.
Amended.” On 23 July 2001, on Public Works and Highways Accordingly, the First Engineering
petitioners addressed a petition to (Committee) failed to invite a District of the DPWHARMM in
DPWH Secretary Simeon single official from the affected Lanao del Sur has jurisdiction over
Datumanong, seeking the agency. the public works within the
province. The office created under
D.O. 119, having essentially the increased its subscriber rates from CATV operators within its
same powers, is a duplication of P88.00 to P180.00 per month. As territorial jurisdiction? HELD: NO.
the DPWH-ARMM First Engineering a result, respondent Mayor wrote The resolution is an enactment of
District in Lanao del Sur formed petitioner a letter threatening to an LGU acting only as agent of the
under the aegis of E.O. 426. The cancel its permit unless it secures national legislature. There is no
department order, in effect, takes the approval of respondent law authorizing
back powers which have been Sangguniang Panlungsod,
previously devolved under the pursuant to Resolution No. 210.
said executive order. D.O. 119 Respondent argues that LGUs to grant franchises to
runs counter to the provisions of Resolution was enacted pursuant operate CATV. Whatever authority
E.O. 426. to Sec. 177 (c) & (d) of BP 337 the LGUs had before, the same
(LGC of 1983) which authorizes had been withdrawn when
Batangas CATV, Inc. v. Court LGUs to regulate businesses and
of Appeals (G.R. No. 138810, President Marcos issued PD 1512
is in the nature of a contract terminating all franchises, permits
29 September 2004) between Petitioner and or certificates for the operation of
FACTS: On July 28, 1986, Respondent. Petitioner then filed CATV system previously granted
respondent Sangguniang with the RTC, Branch 7, Batangas by local governments. Today,
Panlungsod enacted Resolution City, a petition for injunction pursuant to Sec. 3 of EO 436 only
No. 210 granting petitioner a alleging that respondent persons, associations,
permit to construct, install, and Sangguniang Panlungsod has no partnerships, corporations or
operate a CATV system in authority to regulate the cooperatives granted a Provisional
Batangas City. Section 8 of the subscriber rates charged by CATV Authority or Certificate of
Resolution provides that petitioner operators because under Authority by the NTC may install,
is authorized to charge its Executive Order No. 205, the operate and maintain a cable
subscribers the maximum rates National Telecommunications television system or render cable
specified therein, “provided, Commission (NTC) has the sole television service within a service
however, that any increase of authority to regulate the CATV area. It is clear that in the
rates shall be subject to the operation in the Philippines. absence of constitutional or
approval of the Sangguniang ISSUE: Whether a local legislative authorization,
Panlungsod. Sometime in government unit (LGU) regulate municipalities have no power to
November 1993, petitioner the subscriber rates charged by grant franchises. Consequently,
the protection of the operation maybe regulated by
constitutional provision as to LGUs under the general welfare
impairment of the obligation of a clause. This is primarily because telecommunications, it is
contract does not extend to the CATV system commits the recognized that many areas in the
privileges, franchises and grants indiscretion of crossing public Philippines are still unserved or
given by a municipality in excess properties. (It uses public underserved. Thus, to encourage
of its powers, or ultra vires. The properties in order to reach private sectors to venture in this
general welfare clause is the subscribers.) The physical realities field and be partners of the
delegation in statutory form of the of constructing CATV system the government in stimulating the
police power of the State to LGUs. use of public streets, rights of growth and development of
Through this, LGUs may prescribe ways, the founding of structures, telecommunications, the State
regulations to protect the lives, and the parceling of large regions promoted the policy of
health, and property of their allow an LGU a certain degree of deregulation. The fifth Whereas
constituents and maintain peace regulation over CATV operators. Clause of E.O. No. 436 states:
and order within their respective This is the same regulation that it
territorial jurisdictions. exercises over all private
Accordingly, we have upheld enterprises within its territory. 1. The apparent defect in
enactments providing, for Resolution No. 210 is that it
instance, the regulation of contravenes E.O. No. 205 and E.O.
gambling, the occupation of rig But, while we recognize the LGUs No. 436 insofar as it permits
drivers, the installation and power under the general welfare respondent Sangguniang
operation of pinball machines, the clause, we cannot sustain Panlungsod to usurp a power
maintenance and operation of Resolution No. 210. We are exclusively vested in the NTC, i.e.,
cockpits, the exhumation and convinced that respondents the power to fix the subscriber
transfer of corpses from public strayed from the well recognized rates charged by CATV operators.
burial grounds, and the operation limits of its power. The flaws in The fixing of subscriber rates is
of hotels, motels, and lodging Resolution No. 210 are: (1) it definitely one of the matters
houses as valid exercises by local violates the mandate of existing within the NTCs exclusive domain.
legislatures of the police power laws and (2) it violates the States 2. Deregulation is the reduction of
under the general welfare clause. deregulation policy over the CATV government regulation of
Like any other enterprise, CATV industry. business to permit freer markets
and competition.[50] Oftentimes, Judge Dadole v. Commission
the State, through its regulatory on Audit (G.R. No. 125350,
agencies, carries out a policy of December 3, 2002)
deregulation to attain certain
objectives or to address certain Pimentel v. Aguirre, et al.
problems. In the field of (G.R. No. 132988, July 19,
2000), in relation to

Secs. 284-294, LGC.

WHEREAS, professionalism and
self-regulation among existing Province of Batangas v.
operators, through a nationally Romulo (G.R. No. 152774, 27
recognized cable television May 2004)
operators association, have ACORD v. Zamora (G.R. No.
enhanced the growth of the cable 144256, 08 June 2005)
television industry and must
therefore be maintained along Kida v. Senate of the
with minimal reasonable Philippines (G.R. No. 196271,
government regulations; When 18 October 2011;
the State declared a policy of
deregulation, the LGUs are bound Resolution dated 28 February
to follow. Verily, in the case at 2012)
bar, petitioner may increase its
Gov. Villafuerte, Jr. and Prov.
subscriber rates without
of Camsur v. Robredo, G.R.
respondents approval. PETITION
No. 195390, 10
GRANTED.
December 2014
2. Power of the President over
LGUs (Sec. 4, Art. X 1987
Constitution)

Cases: