BSP v.
COA
BSP contends that it is not a government-owned or
controlled corporation
Not all corporations, which are not government
owned or controlled, are considered private
corporations
There exists another distinct class of corporations or
chartered institutions which are otherwise known as
public corporations.
Limbona v. Mangelin
Decentralization of Admin the national government
does not lose supervision and control over the LGU
Decentralization of Power The local government
enjoys limited autonomy from the national
government, thus, minimum intervention from the
latter
Basco v. PAGCOR
Doctrine of Imperium in Imperio - a government,
power, or sovereignty within a government, power, or
sovereignty
Doesnt have an inherent power to tax
PAGCORs charter does not violate Local Autonomy
Doctrine of Supremacy of the National Government
over LGUs
Lina v. Pano
PCSO
Business permit was denied by Mayor
PCSOs terminal is valid
This does not mean that local governments may
actually enact ordinances that go against laws duly
enacted by Congress
Power of LGU to legislate and enact ordinances is
merely a delegated power coming from Congress.
Cordillera Board v. COA
Preparation to be Autonomous
EO 220 is valid
It does not create an autonomous region
It just merely provides for the transition measures in
the enactment of an organic act
MMDA v. Bel Air
MMDA has no power to enact ordinances for the
welfare of the community.
It is the LGUs, acting through their respective
legislative councils that possess legislative power and
police power
MMDA is a public corporation though
Demaala v. COA
Ordinance Additional 5% levy on real property tax
COA questioned the said Ordinance
Setting the rate of the additional levy for the special
education fund at less than 1% is within the taxing
power of local government units.
It is consistent with the guiding constitutional
principle of local autonomy.
Mandamus v. Romulo
Estrada required the submission of a proposal before
the release of the shares of LGUs
Art 10 Sec 7 states that there is no required proposal
The just share is automatically given
Pimentel v. Aguirre
Section 1 of AO 372, insofar as it "directs" LGUs to
reduce their expenditures by 25% is valid
Yes. As it is advisory only.
LGUs have the power to allocate resources in
accordance with their own priorities
Ganzon v. CA
Mayor Ganzon was suspended
He contends that the President cannot do that
because of local autonomy and the present
Constitution only gives supervisory powers to the
President
Supervision includes disciplinary action
Supervision means overseeing or the power or
authority of an officer to see that subordinate officers
perform their duties.
Control, on the other hand, means the power of an
officer to alter or modify or nullify of set aside what a
subordinate officer had done in the performance of
his duties and to substitute the judgment of the
former for that of the latter.
San Juan v. CSC
San Juans Provincial Budget Officer was vacant
Gov. appointed a person
DBM recommends another person
The DBM may appoint only from the list of qualified
recommendees nominated by the Governor.
If none is qualified, he must return the list of
nominees to the Governor
Concept of Local Autonomy
Supervision over Control
LLDA (Laguna Lake) v. CA
LLDA was granted exclusive Jurisdiction through a
RA
Then came 7160
The charter of the LLDA embodies a valid exercise of
police power for the purpose of protecting and
developing the Laguna Lake region, as opposed to the
Local Government Code, which grants powers to
municipalities to issue fishing permits for revenue
purposes.
GenSan v. COA
Early Retirement Program
Invalid Early benefits from GSIS and PAG-IBIG
Prov. Of Negros Occidental
Excess in the payments of Premiums
Valid
Fiscal Autonomy
ISSUE: It does not require approval from the
President
Villafuerte v. Robredo
20% was not allocated
DILG reiterating that 20% component of the IRA shall
be utilized for desirable social, economic and
environmental outcomes
Issuances were issued pursuant to the policy of
promoting good governance through transparency,
accountability and participation. The action of the
 respondent is certainly within the constitutional Comp. City 100 150,000 100M(RA9009
bounds of his power as alter ego of the President. )
Municipality 50 25,000 2.5M
League of Provinces v. DENR Barangay Province 2000
FTAA Barangay M. Mnla 5000
Power to control/regulate small scale mines
Exceptions:
Valid
Congress passed an exception creating the specific LGU
Navarro v. Ermita
Contiguous Requirement

Miranda v. Aguirre PUBLIC CORPORATION

Plebiscite Requirement? Yes. Because there is a
material Change. Definition of public corporation

Padilla v. COMELEC It is formed or organized for the government of a portion of the

State (Corporation Code)
Plebiscite Not only to the municipality that will
change, but as well to the whole province. Elements of a municipal corporation
1. A legal creation or incorporation
Mariano v. COMELEC 2. A corporate name by which the artificial personality or
Technicalities of the Metes and Bounds legal entity is known and in which all corporate acts are
Makati City to HUC done
3. Inhabitants constituting the population who are invested
Cawaling v. COMELEC with the political and corporate powers which are
Assailing the mode of Creation executed through duly constituted officers and agents
Merger is okay as long as it does not diminish the 4. A place or territory within which the local civil government
statutory requirement and corporate functions are exercised.

Dual nature of municipal corporations

Sema v. COMELEC 1. Governmental
Creation by ARMM of LGUs a. The municipal corporation acts as an agent of the
Yes. As long as it meets the statutory requirements State for the government of the territory and the
inhabitants within the municipal limits
provided for by law
b. It exercises by delegation a part of the sovereignty
Cotabato City did not meet it
of the State
2. Private/proprietary
League of Cities v. COMELEC a. It acts in a similar category as a business
The intent was to create not to abolish corporation, performing functions not strictly
RA 9009 cannot be retroactive in effect governmental or political
b. Those exercised for the special benefit and
Province of North Cotabato v. GRP advantage of the community.
Bangsamoro
MOA-AD violated the Constitution *Note: Local Government Code 15. Every LGU created or
Cannot create a State itself recognized under this Code is a body politic and corporate
a) Permanent Population endowed with powers to be exercised by it in conformity with
b) Defined Territory law. As such, it shall exercise powers as a POLITICAL
c) Government SUBDIVISION of the national government and as a
d) Capacity to enter relations CORPORATE ENTITY representing the inhabitants of its
territory.

Requisites for the Incorporation of a Municipal

Creation of LGUs
Corporation
1. Territory
General Rule:
2. Population
Sec 10 Art X
3. Charter
No province, city, municipality, or barangay may be created,
Requisites of a De Facto Municipal Corporation
divided, merged, abolished, or its boundary substantially
1. A valid law authorizing incorporation
altered, except in accordance with the criteria established in
2. An attempt in good faith to organize under it
the local government code and subject to approval by a
3. A colorable compliance with the law
majority of the votes cast in a plebiscite in the political units
4. An assumption of corporate powers
directly affected
An attack on Legal Existence
Statutory Requirements for Creation (Sec 7 of LGC)
A quo warranto proceeding brought by the State is the proper
remedy. It should be commenced within 5 years from the time
Area Populatio Income
the act complained of was committed.
n
Province 2000 250,000 20M
HUC 100 200,000 50M
Creation of Local Government Units (LGUs)
1. Authority to Create LGUs ( 6, LGC)
By law enacted by Congress
Province
City
Municipality
Any other political subdivision (A barangay
may also be created by law. See 386)
2. By ordinance passed by Sangguniang
Panlalawigan/Panlungsod
For barangay located within its territorial jurisdiction
3. Indicators for creation/conversion
a. Income
b. Population
c. Land Area
4. Plebiscite Requirement
a. It applies to the creation, division, merger,
abolition or substantial alteration of boundaries
of LGU.
b. Creation etc. should be approve by a majority of
the votes cast in a plebiscite called for the
purpose in the political unit or units directly
affected.
5. Beginning of Corporate Existence ( 14, LGC)
Corporate existence commences upon the election and
qualification of its chief executive and a majority of
members of the Sanggunian unless some other time
is fixed by the law or ordinance creating it.
Local Autonomy
Local autonomy can be considered a measure of
decentralization of the functions of government. Under the
principle of local autonomy and decentralization, LGUs have
more powers, authority, responsibilities and resources.
Decentralization
It is the devolution of national administration, not power, to
the local levels, in which local officials remain accountable to
the central government in the manner the law may provide.
Levels of Decentralization
1. Administrative Autonomy
a. The central government delegates administrative
powers to the political subdivisions.
b. Purposes
To broaden the local power base
To make the units more responsive and
accountable
To ensure the full development of LGUs into self-
reliant communities
To break the monopoly of the national
government over managing local affairs
To relieve the national government from the
burden of managing local affairs
2. Political Autonomy
a. Involves the abdication of political power in favor of
LGUs declared to be autonomous
b. It would amount to self-immolation because the
autonomous government would become
accountable to its constituency, not to the central
government.
Devolution
It refers to the act by which the national government confers
power and authority upon the various LGUs to perform specific
functions and responsibilities. ( 17, LGC). It is considered
mandatory under the LGC.
Distinction between Supervision and Control
1. Supervision
a. It means the overseeing or the power or authority
of an officer to see that the subordinate officers
perform their duties.
b. In relation to LGUS, the President only has the
power of supervision over LGUS. Thus, he cannot
interfere with the local governments as long as
they act within the scope of their authority.
c. Under the LGC (25), the President exercises
direct supervision over provinces, highly
urbanized cities and independent component
cities. He exercises indirect supervision over
component cities and municipalities through the
provinces. He also exercises indirect supervision
over barangays through the city or municipality
concerned.
2. Control
a. It means the power of an officer to alter or modify
or nullify or set aside what a subordinate officer
has done in the performance of his/her duties
and to substitute the judgment of the former for
that of the latter.
b. In relation to LGUs, it is Congress which
exercises control over them