ASG Law

Tag: Provincial Treasurer

  • Mandamus and Local Governance: Ensuring the Operation of Newly Created Provinces in the Philippines

    The Supreme Court ruled that the Bureau of Local Government Finance (BLGF) must process the appointment of a provincial treasurer for Maguindanao del Norte. This decision ensures that the newly created province can effectively manage its finances and operate as a functional local government unit, emphasizing the importance of adhering to legal duties that facilitate governance and public service.

    Navigating the Aftermath: How a Post-Election Plebiscite Shaped a New Province’s Governance

    This case revolves around the creation of Maguindanao del Norte following a plebiscite conducted after the 2022 National and Local Elections. Republic Act No. 11550, which divided the Province of Maguindanao, stipulated that the provinces would be created upon the plebiscite’s approval. The central legal question is whether officials designated under the law’s transitory provisions could assume their roles given the plebiscite’s timing.

    The dispute arose when Governor Fatima Ainee L. Sinsuat requested the BLGF to designate Badorie M. Alonzo as the Provincial Treasurer of Maguindanao del Norte, a request that was met with resistance. The BLGF argued that Section 50 of Republic Act No. 11550, concerning the assumption of office by elected officials, only applied if the law was ratified before the May 2022 elections. This interpretation stalled the province’s ability to access its National Tax Allotment (NTA) share, thus impeding its operational capacity.

    The Supreme Court addressed the issue of whether the petition for mandamus was correctly filed directly before it, bypassing lower courts. The Court clarified that direct recourse is permissible when the issues are purely legal and imbued with public interest. In this case, the Court noted the importance of resolving the novel question of whether Section 50 of Republic Act No. 11550 remained operative despite the delayed plebiscite. It also emphasized the public interest in ensuring the proper governance and operation of Maguindanao del Norte.

    Building on this, the Court examined whether Fatima L. Ainee Sinsuat and Datu Sharifudin Tucao Mastura validly assumed the positions of Governor and Vice Governor of Maguindanao del Norte, respectively. The BLGF and MILG contended that Section 50 was inapplicable because the law’s ratification occurred after the 2022 elections, thus questioning the legitimacy of Sinsuat and Mastura’s assumption of office.

    The Supreme Court disagreed, stating that Sinsuat and Mastura validly assumed office, albeit in an acting capacity. The court interpreted that while Republic Act No. 11550 primarily addressed scenarios where ratification occurred before the elections, its silence on post-election ratification did not invalidate the law’s intent. The Court emphasized the need to give effect to the law’s transitory provisions to avoid a governance vacuum in the newly created provinces.

    Civil Code, Article 9. No judge or court shall decline to render judgment by reason of the silence, obscurity or insufficiency of the laws.

    This decision underscores the principle that courts must render judgment even when laws are silent or unclear. The Court further highlighted the significance of the plebiscite as an exercise of direct democracy, where the people’s will in creating the provinces should be respected.

    The 1987 Constitution, more than any of our previous Constitutions, gave more reality to the sovereignty of our people… Thus, the consent of the people of the local government unit directly affected was required to serve as a checking mechanism to any exercise of legislative power creating, dividing, abolishing, merging or altering the boundaries of local government units. It is one instance where the people in their sovereign capacity decide on a matter that affects them—direct democracy of the people as opposed to democracy thru people’s representatives. This plebiscite requirement is also in accord with the philosophy of the Constitution granting more autonomy to local government units.

    Miranda v. Aguirre, 373 Phil. 386 (1999)

    The Court then addressed the propriety of issuing a writ of mandamus to compel the BLGF to process the appointment of the Provincial Treasurer of Maguindanao del Norte. The requisites for mandamus were examined, focusing on whether the petitioner had a clear legal right, whether the defendant had a duty to perform a mandated act, and whether the act was ministerial rather than discretionary.

    The Court determined that Sinsuat, as Acting Governor, had a clear legal right to recommend the appointment of the Provincial Treasurer. Referring to Section 26(a) of Republic Act No. 11550, it states that the provincial treasurer shall be appointed by the Secretary of Finance from a list of at least three (3) ranking eligible recommendees of the provincial governor. Consequently, the BLGF was found to have a duty to process the recommendation, in accordance with Department of Finance (DOF) Personnel Order No. 477-2019.

    DOF Personnel Order No. 477-2019 outlines the procedure for evaluating and processing appointments of local treasurers, assigning the BLGF a crucial role in screening candidates. The court underscored that this role is ministerial, meaning the BLGF must perform it as prescribed without exercising discretionary judgment.

    There shall be constituted and established the BLGF Central HRMPSB for Local Treasurers, which shall be chaired by the BLGF Executive Director, and the BLGF Regional HRMPSB for Local Treasurers in every BLGF RO, which shall be chaired by the concerned BLGF Regional Director, to evaluate the qualifications and competence of all recommendees of the concerned LCE.

    DOF Personnel Order No. 477-2019

    The court differentiated between a ministerial duty and a discretionary one, explaining that a ministerial duty requires no exercise of judgment. Because Personnel Order No. 477-2019 did not grant the BLGF discretion in processing the governor’s recommendation, its neglect to do so was unlawful.

    Discretion, when applied to public functionaries, means a power or right conferred upon them by law of acting officially, under certain circumstances, according to the dictates of their own judgments and consciences, uncontrolled by the judgments or consciences of others. A purely ministerial act or duty, in contradistinction to a discretional act, is one which an officer or tribunal performs in a given state of facts, in a prescribed manner, in obedience to the mandate of legal authority, without regard to or the exercise of his [or her] own judgment, upon the propriety or impropriety of the act done.

    Sanson v. Barrios, 63 Phil. 198, 203 (1936)

    Finally, the Court considered the absence of other adequate remedies and the urgency of the situation, emphasizing that the absence of a provincial treasurer would cripple the newly created province. This justified the issuance of the writ of mandamus to ensure the province could function effectively.

    FAQs

    What was the key issue in this case? The central issue was whether the BLGF was obligated to process the appointment of a provincial treasurer for Maguindanao del Norte, given the post-election ratification of the law creating the province.
    Why did the Supreme Court take on this case directly? The Court accepted the case directly due to its purely legal nature, its status as a case of first impression, and its significant public interest implications for local governance.
    What is a writ of mandamus? A writ of mandamus is a court order compelling a government agency or official to perform a mandatory duty they are legally required to fulfill.
    What was BLGF’s argument for not processing the appointment? BLGF argued that Section 50 of Republic Act No. 11550, which outlines how officials assume office, did not apply because the law was ratified after the 2022 elections.
    How did the Court rule on the validity of the Governor and Vice Governor’s assumption of office? The Court ruled that the Governor and Vice Governor validly assumed office but only in an acting capacity, pending regular elections for those positions.
    What is the role of Department of Finance (DOF) Personnel Order No. 477-2019 in this case? This order outlines the procedure for processing appointments of local treasurers, mandating the BLGF to evaluate and screen candidates recommended by local chief executives.
    Why was the BLGF’s duty to process the appointment considered ministerial? The duty was ministerial because the BLGF was required to follow a prescribed procedure without exercising discretionary judgment in deciding whether to process the recommendation.
    What is the practical impact of this ruling? The ruling ensures that Maguindanao del Norte can access its NTA share and operate effectively as a local government unit by having a functioning provincial treasurer.

    In conclusion, the Supreme Court’s decision in this case clarifies the obligations of government agencies in facilitating the operation of newly created local government units. It reinforces the principle that ministerial duties must be performed as mandated by law, and it affirms the importance of upholding the will of the people expressed through democratic processes.

    For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

    Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
    Source: PROVINCE OF MAGUINDANAO DEL NORTE VS. BUREAU OF LOCAL GOVERNMENT FINANCE, G.R. No. 265373, June 26, 2023

  • Ordinance Enforceability: Publication as a Prerequisite for Valid Tax Collection

    The Supreme Court held that while a tax ordinance may be valid, it is not enforceable until it has been properly published to inform the public. This means local governments cannot collect new taxes or fees until the ordinance outlining them is made publicly available through publication or posting. This ruling protects citizens by ensuring they are aware of new financial obligations before being compelled to pay them.

    Market Vendors vs. Municipality: When Does a Tax Ordinance Take Effect?

    In Teodoro Berdin, Vicente Alegarbes, and Abelardo de Vera vs. Hon. Eufracio A. Mascariñas, the central issue revolved around the validity and enforceability of Tax Ordinance No. 88-11-36, enacted by the Sangguniang Bayan of Tubigon, Bohol. Petitioners, representing the Tubigon Market Vendors Association, challenged the ordinance, arguing it was invalid due to the lack of public hearings and proper publication. The Supreme Court, while affirming the ordinance’s validity, emphasized the crucial role of publication as a prerequisite for its enforceability.

    The case unfolded as the petitioners questioned the increased taxes and fees imposed by the municipality through Tax Ordinance No. 88-11-36. They requested a copy of the ordinance and protested its implementation, arguing that it was enacted without the necessary public hearings and proper publication as required by the Local Tax Code. Their requests and protests eventually led to a legal battle, culminating in a Supreme Court decision that clarified the requirements for a valid and enforceable tax ordinance. The Supreme Court tackled several key issues, primarily focusing on the necessity of public hearings, the impact of non-publication, and the exhaustion of administrative remedies. This decision significantly underscores the importance of procedural compliance in local tax legislation.

    The petitioners raised concerns regarding the absence of public hearings before the enactment of Tax Ordinance No. 88-11-36, citing Sections 49 and 50 of the Local Tax Code. These sections mandate public hearings for tax ordinances that impose taxes or fees on subjects not specifically enumerated in the Code. The court acknowledged that some taxes and fees under the ordinance fell into this category, necessitating a public hearing. However, the Court noted that the petitioners failed to provide evidence proving that no public hearing occurred. This is a significant point because, the Court stated, “Petitioners, as the party asserting a negative allegation, had the burden of proving lack of public hearing.”

    Building on this principle, the Court emphasized that the burden of proof rested on the petitioners to demonstrate the absence of a public hearing. The Court further stated, “Although the Sangguniang Bayan had the control of records or the better means of proof regarding the facts alleged and respondent public officials assumed an uncooperative stance to petitioners’ request for copies of the Minutes of their deliberation, petitioners are not relieved from this burden.” This aspect of the decision underscores the importance of presenting concrete evidence to support claims of procedural lapses in legislative enactments.

    A critical aspect of the Supreme Court’s decision focused on the publication requirement stipulated in Section 43 of the Local Tax Code. This section mandates that certified true copies of tax ordinances be published for three consecutive days in a newspaper or publication widely circulated within the local government’s jurisdiction. Alternatively, the ordinance must be posted in the local legislative hall and two other conspicuous places within the locality. The Court recognized that while non-compliance with the publication requirement does not render the tax ordinance null and void, it is a condition precedent for its enforceability. The absence of evidence proving publication or posting led the Court to rule in favor of the petitioners. It directed the Sangguniang Bayan of Tubigon, Bohol, to publish Tax Ordinance No. 88-11-36, Tax Ordinance No. 89-10-49, and Municipal Revenue Ordinance No. 90-01-54. Before publication, taxes may still be collected based on old tax rates previously imposed.

    The importance of exhausting administrative remedies before seeking judicial intervention was also a significant point of discussion in the case. The Local Tax Code provides avenues for taxpayers to question tax ordinances, either through review by the Provincial Treasurer or Secretary of Finance, formal protest with the Secretary of Finance, or referral to the Provincial Fiscal for legal opinion. The Court found that the petitioners failed to fully exhaust these administrative remedies, particularly concerning issues that should have been raised with the Provincial Fiscal or the Secretary of Finance. This failure underscored the principle that courts should only intervene when administrative bodies have had the opportunity to resolve the issues. The Court recognized that the petitioners should have sought the opinion of the Provincial Fiscal regarding certain issues and filed a formal protest with the Secretary of Finance on others, prior to elevating the matter to the courts.

    Moreover, the Court addressed the petitioners’ claim that the impositions under Tax Ordinance No. 88-11-36 exceeded the limits allowed by the Local Tax Code. It noted that the Provincial Treasurer had already addressed these concerns, suspending some provisions of the ordinance for non-compliance and that the enactment of Municipal Revenue Ordinance No. 90-01-54 corrected these issues. The Court upheld the presumption of regularity in official conduct, affirming the Provincial Treasurer’s findings. This aspect of the ruling highlights the deference courts give to administrative bodies in matters within their expertise. The enactment and subsequent review by the Provincial Treasurer and Municipal Council was ruled to be in line with Section 44 of the Local Tax Code. The court stated “Moreover, as the presumption of regularity of official conduct was not overcome by petitioners, the findings of the Provincial Treasurer must be upheld.”

    The Court also noted that the petitioners had engaged in forum shopping by simultaneously seeking the same relief of suspending the ordinance in multiple forums. Despite this, the Court addressed the substantive issues, underscoring the significance of publication for the enforceability of tax ordinances. The Court clarified that the right to access information is not absolute and may be subject to reasonable regulations, such as the requirement to pay for the reproduction costs of voluminous documents. This ensures that while citizens have the right to information, government offices can manage the administrative burden of providing it. Additionally, the Supreme Court highlighted the role of the Secretary of Finance. The Court stated that the Assistant Regional Director, DOF Regional Office No. 7, Cebu City is the alter ego of the Secretary of Finance. By an expanded application of the doctrine of qualified political agency, “the President’s power of control is directly exercised by him over the members of the Cabinet who, in turn, and by his authority, control the bureaus and other offices under their respective jurisdictions in the executive department.”

    FAQs

    What was the key issue in this case? The central issue was whether Tax Ordinance No. 88-11-36 was valid and enforceable, considering the claims of lack of public hearings and proper publication. The Supreme Court focused on whether publication was a prerequisite for the enforceability of the ordinance.
    What did the Supreme Court rule regarding the publication of tax ordinances? The Court ruled that while the absence of publication does not invalidate a tax ordinance, it is a condition precedent to its enforceability. Without proper publication, the local government cannot enforce the new tax rates imposed by the ordinance.
    What is the required method of publication for tax ordinances? The Local Tax Code requires that certified true copies of the tax ordinance be published for three consecutive days in a newspaper or publication widely circulated within the local government’s jurisdiction. Alternatively, it can be posted in the local legislative hall and two other conspicuous places.
    What is the significance of public hearings for tax ordinances? Public hearings are required for tax ordinances that impose taxes or fees on subjects not specifically enumerated in the Local Tax Code. This ensures that the public has an opportunity to voice their concerns and provide input before the enactment of the ordinance.
    What is the role of the Provincial Treasurer in reviewing tax ordinances? The Provincial Treasurer has the authority to review and suspend the effectivity of any tax ordinance if it is deemed unjust, excessive, oppressive, or contrary to declared national economic policy. The role is crucial for ensuring local tax laws comply with standards set by the state.
    What should a taxpayer do if they believe a tax ordinance is illegal? A taxpayer can question the legality of a tax ordinance through administrative remedies provided in the Local Tax Code. These include seeking a legal opinion from the Provincial Fiscal or filing a formal protest with the Secretary of Finance before seeking judicial intervention.
    What happens if a tax ordinance is not properly published? If a tax ordinance is not properly published, the local government cannot enforce the new tax rates imposed therein. However, taxes may still be collected at the old rates previously imposed.
    Who has the burden of proving the lack of public hearing? The party asserting the negative allegation, typically the taxpayer, has the burden of proving the lack of public hearing. This highlights the importance of evidence in claims of procedural lapses.
    What is the effect of non-exhaustion of administrative remedies? Failure to exhaust administrative remedies before seeking judicial intervention may result in the dismissal of the case. The courts generally require that administrative bodies be given the opportunity to resolve the issues first.

    In conclusion, Teodoro Berdin, Vicente Alegarbes, and Abelardo de Vera vs. Hon. Eufracio A. Mascariñas serves as a reminder of the importance of procedural compliance in local tax legislation, particularly the necessity of proper publication for the enforceability of tax ordinances. While local governments have the power to impose taxes, this power is not unfettered and must be exercised within the bounds of the law, ensuring that citizens are informed of their obligations. Without publication of these tax ordinances, municipalities may only collect taxes based on the old tax rates. This landmark ruling reinforces the taxpayers’ right to due process and information, promoting transparency and accountability in local governance.

    For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

    Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
    Source: TEODORO BERDIN VS. HON. EUFRACIO A. MASCARIÑAS, G.R. NO. 135928, July 06, 2007