Atienza vs Villarosa Gov.
Villarosa issued yet another Memo for the enforcement of the 2
G.R. No. 161081 / May 10, 2005 / Callejo, Sr., J./ Locgov Local Fiscal Administration
NATURE Petition for review on certiorari
PETITIONERS Ramon M. Atienza, in his capacity as Vice-Governor of
the Province of Occidental Mindoro
RESPONDENTS Jose T. Villarosa, in his capacity as Governor of the
Province of Occidental Mindoro
SUMMARY. Gov. Villarosa passed 2 contentious Memoranda: (1) making
all POs of the SPn subject to the Govs approval and (2) terminating all
employees of the SPn who were appointed by the Vice-Gov. SC held that
due to decentralization, the powers reside with the Vice-Gov. His signing
authority over POs of the SPn is evidenced by Sec.344 and 466(a)(1) by
doctrine of necessary implication, while his appointing authority over SPn
employees is under Sec.466(a)(2). The intent behind the change from the
BP 337 regime to the LGC of 1991 regime is the separation of powers
between executive and legislative, which includes the concepts of checks
& balances and independence of the legislative.
DOCTRINE. With R.A. No. 7160, the union of legislative and executive
powers in the office of the local chief executive under BP 337 has been
disbanded, so that either department now comprises different and non
intermingling official personalities with the end in view of ensuring a better
delivery of public service and provide a system of check and balance
between the two The avowed intent of R.A. No. 7160 is to vest on the
Sangguniang Panlalawigan independence in the exercise of its legislative
functions vis vis the discharge by the Governor of the executive
functions.
FACTS.
Gov. Villarosa promulgated 2 contentious Memoranda:
[MEMO 1]: all Purchase Orders (POs) issued in connection with the
procurement of supplies, materials and equipment of the Sangguniang
Panlalawigan (SPn) shall be approved by the Gov as the local chief
executive
Basis: DILG Opinion No. 148-1993 the
authority to sign POs of supplies, materials and
equipment of the Sanggunian belongs to the local
chief executive
[MEMO 2]: termination of all existing contract of employment
casual/ job-order basis entered into by Vice-Gov Atienza for being
unauthorized
To accommodate the Vice-Gov and the members of
the SPn, the Gov will allow 4 casual/job-order
employees for the Vice-Gov and 1 for each member
of the SPn. They were then directed to submit the
names of their recommendees1, subject to the
Govs approval.
1 No such word in the dictionary, but the Memo used this word
prior Memoranda. Vice-Gov. Atienza asked Gov. Villarosa to reconsider
and to make a deeper study, but it was unheeded so Vice-Gov
Atienza filed a petition for prohibition on the implementation of the 2
Memoranda, assailing GAD on the part of the Gov.
CA: ruled in favor of the Gov
[MEMO 1]: Sec.344 LGC2: approval of the disbursement voucher by
the local chief executive himself shall be required whenever local funds
are disbursed. Also, Sec.466(a)(1) relied upon by Vice-Gov. Atienza
is N/A because it speaks of a warrant, not POs. Finally, Sec.361 is N/A
because it refers to purchase requests (PRs), again, not the same as
POs.
[MEMO 2]: moot & academic because the termination had already
been effected.
Before resolving the issues, SC noted that both Gov. Villarosa and Vice-Gov.
Atienza already ceased to be the Gov and Vice-Gov because newly-elected
officials have already taken their oaths of office. But SC will decide this
case anyway to guide the bench, the bar and the public.
ISSUES & RATIO.
1.[MEMO 1] Who between the Gov and Vice-Gov is authorized to approve
purchase orders issued in connection with the procurement of supplies,
materials, equipment, including fuel, repairs and maintenance of the
SPn? VICE-GOVERNOR
P: 2 legal bases: (1) DILG Opinion No. 96-1995, as affirmed by the
COA, POs by the SPn need not be coursed through the Governor; and
(2) Secs.466 & 468 LGC provide for the separation of powers between
executive and legislative.
R: Last clause of Sec.344: the approval of the disbursement by the
local chief executive is required whenever local funds are disbursed.
SC:
2nd sentence of Sec.344 is the applicable provision: Vouchers and
payrolls shall be certified to and approved by the head of the
department or office who has administrative control of the fund
concerned[.] Since the Vice-Gov is the presiding officer of the SPn, he
has the administrative control of the funds of SPn and should have the
authority to approve POs, not the Gov. Contrary to CAs interpretation,
2 Sec. 344. Certification on, and Approval of, Vouchers. No money shall be disbursed unless
the local budget officer certifies to the existence of appropriation that has been legally made for
the purpose, the local accountant has obligated said appropriation, and the local treasurer
certifies to the availability of funds for the purpose. Vouchers and payrolls shall be certified
to and approved by the head of the department or office who has administrative
control of the fund concerned, as to validity, propriety and legality of the claim involved.
Except in cases of disbursements involving regularly recurring administrative expenses such as
payrolls for regular or permanent employees, expenses for light, water, telephone and telegraph
services, remittances to government creditor agencies such as the GSIS, SSS, LBP, DBP, National
Printing Office, Procurement Service of the DBM and others, approval of the disbursement
voucher by the local chief executive himself shall be required whenever local funds
are disbursed.
 the last clause cannot prevail over the more specific clause found in
the 2nd sentence of Sec.344.
Sec.39 of the Manual on New Govt Accounting System for
LGUs, prepared by COA, disbursement vouchers for expenditures
appropriated for the operation of the SPn shall be approved by the
Vice-Gov.
Doctrine of necessary implication: While the LGC is silent as to the
approving authority for POs, it may be said that the authority of the
Vice-Gov to sign all warrants drawn on the provincial treasury for all
expenditures appropriated for the operation of the SPn,3 as well as to
approve disbursement vouchers4 relating thereto necessarily includes
the authority to approve POs covering the same.
DEFINITIONS:
Warrant: an order directing the treasurer of the municipality to pay
money out of funds in city treasury which are or may become available
for purpose specified to designated persons
Voucher: a document which shows that services have been performed
or expenses incurred
PO: authorization by the issuing party for the recipient to provide
materials or services for which issuing party agrees to pay; it is an offer
to buy which becomes binding when those things ordered have been
provided
JUSTIFICATION OF THE APPLICATION OF DOCTRINE:
When an authorized person approves a disbursement voucher, he
certifies to the correctness of the entries, e.g. that the expenses
incurred were necessary and lawful, the supporting documents are
complete and the availability of cash therefor. Further, the person who
performed the services or delivered the supplies, materials or
equipment is entitled to payment.
On the other hand, the terms and conditions for the procurement of
supplies, materials or equipment, in particular, are contained in a PO.
The tenor of a PO basically directs the supplier to deliver the articles
enumerated and subject to the terms and conditions specified therein.
Hence, the express authority to approve disbursement vouchers and,
in effect, authorize the payment of money claims for supplies,
materials or equipment, necessarily includes the authority to approve
POs to cause the delivery of the said supplies, materials or equipment.
Bottomline: the authority sign warrants and approve disbursement
vouchers are greater and necessarily includes the authority to approve
POs for the operation of SPn.
2. [MEMO 2] Does Gov. Villarosa, as local chief executive, have the
authority to terminate or cancel the appointments of casual/job order
employees of the SPn Members and the Office of the Vice-Gov? NO.
General v. Specific
3 Vice-Govs authority to sign warrants found in Sec.466(a)(1) LGC
4 Vice-Govs authority to approve disbursement vouchers found in Sec.344 LGC
Under Sec.465(b)(v) LGC, the Gov has the broad power to appoint all
officials and employees whose salaries and wages are wholly or mainly
paid out of provincial funds. However, under Sec.466(a)(2), Vice-Gov
has the specific authority to appoint all officials and employees of the
SPn.
Why the diff?
The reason for the distinction between the Govs and the Vice-Govs
power to appoint is because in the latter, the salaries of these
employees are derived from the appropriation specifically for the SPn,
while in the former, their salaries are paid out of the Provincial funds.
As applied, while it does not appear whether the salaries of the
employees subject of controversy will be paid out of the Provincial
funds or SPn funds, still, Memo 2 cannot be upheld because it is a clear
encroachment of Sec.466(a)(2).
Intent of the law LGC of 1991
Under BP 337, the Gov was the presiding officer of the SPn. However,
with the enactment of the LGC of 1991, citing Pimentel, the idea of
making the Vice-Gov as the presiding officer of the SPn is to distribute
powers among elective local officials so that the legislative, which is
the Sanggunian, can properly check the executive, which is the
Governor or the Mayor and vice versa and exercise their functions
without any undue interference from one by the other.
The avowed intent of LGC is to vest on the SPn independence in the
exercise of its legislative functions vis-a-vis the discharge by the Gov of
the executive functions.
As applied, the Memo 2 constituted undue interference with the Vice-
Govs functions.
DECISION.
Petition granted.