ARTICLE 7 SECTION 17 CASE 6 OF 12
Resp COA: Congress may set limitations on exercise of autonomy and
DADOLE vs. COMMISSION ON AUDIT
DOCTRINE:
SUPERVISION (Pres): overseeing or power or authority to see that
subordinate officers perform their duties (CANNOT INTERFERE)
CONTROL (Cong): power to alter or modify or nullify or set aside what
subordinate officer has done in their performance of his duties and to
substitute the judgment of the former for that of the latter.
FACTS:
1. Sangguniang Panlungsod enacted yearly appropriation ordinance
a. 1986: Mandaue City RTC and MTC judges started receiving
monthly allowances of P1,260 each
b. 1991: increased amount to P1,500 each judge
2. March 1994: DBM issued Local Budget Circ No. 55 (LBC 55)
a. 2.3.2. “In light of the authority granted to the LGU under LGC
to provide for addt’l allowances and other benefits to national
gov’t officials and employees assigned in their locality, such
additional allowances in the form of honorarium at rates not
exceeding P1,000 in provinces and cities and P700 in
municipalities may be granted […]”
b. 5.0. “This circulation shall take effect immediately”
3. Mandaue City Auditor issued Notices of Disallowance to petitioners
a. Oct 1994: begin reduction to P1,000 allowance each and
reimbursement of amount received in excess from April-Sept
4. Petitioner judges argue that LBC is void and that yearly appropriation
ordinance providing for additional allowances to judges allowed by
SEC 458 PAR (a)(1)(xi) of LOCAL GOV’T CODE:
“the sangguniang panlungsod, as the legislative body of the city, shall
enact ordinances, approve resolutions and appropriate funds for the
general welfare of the city and its inhabitants pursuant to Sec 16 and
in the proper exercise of the corporate powers of the city as provided
under Sec 22, and shall”
(1)[…](xi) when finances of the city gov’t allow, provide for add’l
allowances and other benefits to judges, prosecutors, public elem/HS
teachers, and other nat’l gov’t officials stationed in or assigned to city
5. SolGen filed manifestation supporting position of petitioner judges
6.
it is for Pres (thru DBM) to check whether these legislative limits are
being followed by LGU (uniform max amt to enforce condition of law)
a. That SEC 458 on authorizing disbursement of addt’l
allowances and benefits to judges “subject to the condition that
the finances of the city government should allow the same”
b. Assuming arguendo that LBC 55 void, still prohibited, it being
from Internal Revenue Allotment (IRA) w/o mention for such
ISSUES:
1. W/N LBC 55 void for going beyond supervisory powers of Pres YES
2. W/N LBC 55 void for not having been published YES
3. W/N yearly appropriation ordinance contravenes approp law NO
RULING:
1. DBM over-stepped its power of supervision by imposing a
prohibition that did not correspond with law it sought to implement
a. PIMENTEL v AGUIRRE qtd MONDANO v SILVOSA
i. SUPERVISION (Pres): overseeing or power or
authority to see that subordinate officers perform
their duties (CANNOT INTERFERE)
ii. CONTROL (Cong): power to alter or modify or
nullify or set aside what subordinate officer has done
in their performance of his duties and to substitute
the judgment of the former for that of the latter
iii. Heads of political subdivisions are elected by the
people, to whom they are directly accountable (not
alter egos of Pres) :. Subject to supervision only
b. President can only interfere in affairs and activities of LGU if
s/he finds that the latter has acted contrary to law
c. Setting a uniform amount for grant inappropriate way of
enforcing criterion found in SEC 458 OF LGC
i. “when the finances of the city gov’t allow” does not
authorize setting a definite max limit but rather is
dependent on whether revenues of said city gov’t
exceeded its annual expenditures
2. Administrative circular to enforce/implement law :. need publish
a. TANADA v TUVERA
 i. Admin Rules/Reg: must be published if their
purpose is to enforce and implement existing law
ii. Interpretative regulations: regulate only personnel
of admin agency and the public; need not be
published

3. Failed to show Mandaue deducted the subject allowances from IRA

and not from city’s own revenues
a. PLUS did not conducted formal review of approp ordinances
i. SEC 327 LGC: “If within 90 days from receipt of copies of
such ordinance, the sangguniang panlalawigan takes no
action thereon, the same shall be deemed to have been
reviewed in accordance with law and shall continue to be
in full force and effect.”