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RAMON M. ATIENZA v. JOSE T. VILLAROSA

FACTS:

The petitioner, Ramon M. Atienza, filed a petition for prohibition to enjoin the implementation of two memoranda issued by respondent Jose T. Villarosa, the Governor of Occidental Mindoro. The first memorandum required all purchase orders of the provincial legislative council to be approved by the Governor. The second memorandum terminated the contract of services of certain employees. The petitioner argued that these memoranda violated the separation of powers between the executive and legislative branches of the local government. The respondent Governor insisted on implementing the memoranda despite the petitioner's requests for further study.

In response, the petitioner filed a petition for prohibition before the Court of Appeals (CA) challenging the memoranda, claiming that they violated the Local Government Code of 1991. The CA dismissed the petition, upholding the authority of the respondent to issue the memoranda. The CA reasoned that the approval of purchase orders by the local chief executive is required whenever local funds are disbursed and that the authority of the Vice-Governor to sign warrants drawn against the public treasury is different from the approval of purchase orders. The CA also declared the issue on the second memorandum moot and academic.

The petitioner brought the case to the Supreme Court, arguing that the CA committed reversible error. The respondent maintained the validity of the memoranda, asserting that the approval of purchase orders is different from the Vice-Governor's authority to sign warrants. The respondent also defended the validity of the second memorandum, claiming that it was issued due to an excessive and bloated bureaucracy.

The constitutional issues raised in this case pertain to the scope of powers of the Governor and Vice-Governor under the Local Government Code of 1991. The Code aims to allocate powers, responsibilities, and resources among different local government units and establish qualifications, election procedures, and powers and duties of local officials. Its principles include the effective allocation of powers and the establishment of an accountable and efficient organizational structure for meeting the needs of communities.

ISSUES:

  1. Who between the Governor and Vice-Governor is authorized to approve purchase orders issued in connection with the procurement of supplies, materials, equipment, including fuel, repairs and maintenance of the Sangguniang Panlalawigan?

  2. Whether the Vice-Governor has the authority to approve purchase orders for the procurement of supplies, materials, or equipment necessary for the operation of the Sangguniang Panlalawigan.

  3. Whether the implementation of a Memorandum rendered the petition moot and academic.

  4. Whether the Governor has the authority to terminate or cancel the appointments of casual/job order employees of the Sangguniang Panlalawigan and the Office of the Vice-Governor.

  5. Whether or not the authority of the Vice-Governor to appoint the officials and employees of the Sangguniang Panlalawigan is limited to those employees whose salaries are derived from the funds appropriated for the Sangguniang Panlalawigan.

  6. Whether or not the Memoranda issued by the Governor, restricting the Vice-Governor from signing purchase orders and appointing casual and job order employees of the Sangguniang Panlalawigan, constitute undue interference with the latter's functions.

  7. Whether or not the respondent is entitled to the exemptions from estate tax provided under Section 87 (b) of the National Internal Revenue Code (NIRC) as a member of the religious sector.

  8. Whether or not the respondent is entitled to pay the reduced estate tax rate of 6% as provided under Section 84(B) of the NIRC.

RULING:

  1. The Vice-Governor has the authority to approve purchase orders issued in connection with the procurement of supplies, materials, equipment, including fuel, repairs, and maintenance of the Sangguniang Panlalawigan.

  2. The Vice-Governor has the authority to approve purchase orders for the procurement of supplies, materials, or equipment necessary for the operation of the Sangguniang Panlalawigan. The authority granted to the Vice-Governor to sign all warrants and approve disbursement vouchers includes the authority to approve purchase orders, as it is necessary to effectuate the object and purpose of the law.

  3. The implementation of a Memorandum does not render the petition moot and academic. The Court will decide a question otherwise moot and academic if it is "capable of repetition yet evading review." Similar memoranda may be issued by other local chief executives, so it is necessary to determine the authority of the Governor to terminate or cancel the appointments of casual/job order employees.

  4. The Governor does not have the authority to terminate or cancel the appointments of casual/job order employees of the Sangguniang Panlalawigan and the Office of the Vice-Governor. The powers granted to the Governor under Section 465 of Rep. Act No. 7160 do not include the authority to make such terminations or cancellations.

  5. Yes, the authority of the Vice-Governor to appoint the officials and employees of the Sangguniang Panlalawigan is limited to those employees whose salaries are paid out of the funds appropriated for the Sangguniang Panlalawigan. The Governor retains the authority to appoint employees whose salaries are charged against the provincial funds.

  6. Yes, the Memoranda issued by the Governor, which excluded the Vice-Governor from signing purchase orders and appointing casual and job order employees of the Sangguniang Panlalawigan, constitute undue interference with the latter's functions. The implementation of the Memoranda should be permanently enjoined.

  7. Yes, the respondent is entitled to the exemptions from estate tax provided under Section 87 (b) of the NIRC as a member of the religious sector. The Court held that the phrase "institutions, associations, or corporations organized and operated exclusively for religious, charitable, scientific, athletic, or cultural purposes" includes religious organizations. Hence, the properties owned and administered by the respondent, a religious organization, are exempt from estate tax.

  8. No, the respondent is not entitled to pay the reduced estate tax rate of 6% as provided under Section 84(B) of the NIRC. The Court ruled that the respondent failed to prove that it is engaged in an industry or business regularly carried on, which is a prerequisite to avail of the reduced estate tax rate. Since the respondent is not engaged in an industry or business, it is not entitled to the reduced tax rate.

PRINCIPLES:

  • Rep. Act No. 7160 was enacted to provide for a more responsive and accountable local government structure instituted through decentralization.

  • Provinces and cities/municipalities shall ensure that the acts of their component units are within the scope of their prescribed powers and functions.

  • The Vice-Governor, as the presiding officer of the Sangguniang Panlalawigan, has administrative control of the funds of the said body.

  • Disbursement vouchers for expenditures appropriated for the operation of the Sangguniang Panlalawigan shall be approved by the provincial Vice-Governor.

  • Doctrine of necessary implication: It states that what is implied in a statute is as much a part thereof as that which is expressed. Every statute is understood, by implication, to contain all such provisions as may be necessary to effectuate its object and purpose, or to make effective rights, powers, privileges, or jurisdiction which it grants, including collateral and subsidiary consequences that can be inferred from its terms.

  • The authority to approve disbursement vouchers and authorize payment for supplies, materials, or equipment includes the authority to approve purchase orders to cause the delivery of the said supplies, materials, or equipment.

  • Courts may decide a question that is otherwise moot and academic if it is capable of repetition yet evading review.

  • The Governor does not have the authority to terminate or cancel the appointments of casual/job order employees of the Sangguniang Panlalawigan and the Office of the Vice-Governor. The powers granted to the Governor under Rep. Act No. 7160 do not include such authority.

  • The Vice-Governor has the authority to appoint officials and employees of the Sangguniang Panlalawigan whose salaries are paid out of the funds appropriated for the Sangguniang Panlalawigan. (Section 466(a)(2) of Republic Act No. 7160)

  • The Governor retains the authority to appoint employees whose salaries are charged against the provincial funds. (Section 465(b)(v) of Republic Act No. 7160)

  • The intent of Republic Act No. 7160 is to vest independence in the Sangguniang Panlalawigan in the exercise of its legislative functions, without undue interference from the Governor in his executive functions.

  • Memoranda issued by the Governor that restrict the Vice-Governor's functions and interfere with the legislative independence of the Sangguniang Panlalawigan are null and void.

  • The phrase "institutions, associations, or corporations organized and operated exclusively for religious, charitable, scientific, athletic, or cultural purposes" under Section 87(b) of the NIRC includes religious organizations.

  • To avail of the reduced estate tax rate of 6% under Section 84(B) of the NIRC, the taxpayer must prove that it is engaged in an industry or business regularly carried on.