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MUNICIPAL CORPORATIONS (LOCAL GOVERNMENT UNITS)
A. PUBLIC CORPORATIONS
Q: What is the coce!t o" P#$%ic Co&!o&atios'A: A public corporation is one created by the state either by general or special
act for purposes of administrative of local government or rendering service in
the public interest.
It is one formed or organized for the government of portion of a state; it is
created by the state as its own agency for the accomplishment of parts of its
own public works. (Elliot !unicipal "orporation page #$
Q: o a&e !#$%ic co&!o&atios *isti+#ishe* "&o, !&i-ate
co&!o&atios'A: #. %ublic corporations are established for purposes connected with the
administration of civil or local governments; while private corporations are
created for private aim gain or bene&ts of its members.
'. %ublic corporations are creations of the state either by general or special
act; while private corporations are created by the will of the incorporators
with the recognizance of the state.
. %ublic corporations are involuntary conse)uence of the legislation; while
private corporations constitute a voluntary agreement by and among its
members.
Q: o is a !#$%ic co&!o&atio *isti+#ishe* "&o, a +o-e&,etoe*
o& cot&o%%e* co&!o&atio (GOCC)'A: *nlike a public corporation a +,"" is created as agencies of the state for
narrow and limited purpose. +,""s are created in order to render public
service or supply public want while public corporations are created for
purposes of administration of civil or local governments.
Q: What a&e the c%assi/catios o" !#$%ic co&!o&atios'A: -here are two classi&cations:
a. uasi/public corporations 0 which are created as agencies of the state for
narrow and limited purposes without the powers and liabilities of self/
governing corporations. -hey render public service or supply public wants.
b. !unicipal "orporations 0 it is a body politic and corporate constituted by the
incorporation of the inhabitants for purposes of local government thereof; it is
established by law partly as an agency of the state to assist in the civil
government of the country but chie1y to regulate and administer the local or
internal a2airs of the city town or district which is incorporated. (3illon
!unicipal "orporations 4olume ' pp. 56/57$
B. MUNICIPAL CORPORATIONS
Q: What is the *e/itio o" %oca% +o-e&,et'A: 8ocal government refers to a political subdivision of a nation or state which is
constituted by law and has substantial control of local a2airs. (*% 8aw "enter
"onstitution 9evision %roect %art II p. #'$
Q: What a&e the e%e,ets o" a ,#ici!a% co&!o&atio'
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A: #. A%e+a% c&eatio or incorporation;
'. A co&!o&ate a,e by which the arti&cial personality or legal entity is
known and in which all corporate acts are done;
. Iha$itats constituting the population who are invested with the political
and corporate power which are e. A !%ace o& te&&ito&0 within which the local government and corporate
functions are e
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Q: What is the *istictio o" !oe& o" cot&o% "&o, s#!e&-isio o-e&
LGUs' Who e2e&cises the,'A: "ongress retains control of the local government units although in
signi&cantly reduced degree now under our previous "onstitution. -he power
to create still includes the power to destroy. -he power to grant still includes
the power to withhold or recall. -he national legislature ("ongress$ is still theprincipal of local government units which cannot defy its will or modify or
violate it. ,urs is still a unitary form of government not a federal state. Ceing
so any form of autonomy granted to local governments will necessarily be
limited and con&ned within the e
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in a component city (e.g. Caybay "ity$ independent component city (e.g.
,rmoc "ity$ or a Highly *rbanized "ity (e.g. -acloban "ity$.
Q: Ca the !oe& to c&eate %oca% +o-e&,et #its $e *e%e+ate* $0
Co+&ess'In ?ema vs "omelec +9 #57 uly # 'DD6 ?" said: there is no provision
in the "onstitution that con1icts with the delegation to regional legislative
bodies of the power to create municipalities and barangays provided ?ection
#D Article @ of constitution is followed. However the creation of provinces
and cities is another matter. Any province that may hereafter be created or
any city whose population may hereafter increase to more than '5DDDD shall
be entitled in the immediately following election to at least one member of
the H,9. %ursuant to these provisions a province cannot be created without
creating a legislative district. -hus the power to create a province or a city
with a population of '5DDDD or more re)uires the power to create a
legislative district. Accordingly the delegation granted by congress to A9!!
to create provinces or cities is unconstitutional because congress cannotvalidly delegate the power to create legislative district for the H,9 since the
power to increase the allowable membership in the H,9 and to reapportion
legislative districts is vested e
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!unicipality : 5D s)uare kilometres"ity : #DD s)uare kilometres%rovince : 'DDD s)uare kilometres
"ompliance with the foregoing indicators (income population and land area$
shall be attested to by the 3epartment of Linance Fational ?tatistics ,=ce
and 8ands !anagement Cureau of the 3EF9.
Q: What a&e the co*itios "o& the *i-isio o& ,e&+e& o" %oca%
+o-e&,et #its'A: #. -hey shall comply with the same re)uirements like income population and
land area. (?ection 9A #D$;
'. -he division shall not reduce the income population and land area of local
government unit or units concerned to less than the minimum re)uirements
of the "ode;
. -he income classi&cation of the original local government units or units
shall not fall below its current income classi&cation prior to such division.
(?ec. 6 9A #D$
Q: o is a LGU a$o%ishe*'A: An 8+* may be abolished when its income population or land area has been
irreversibly reduced to less than the minimum standards prescribed for its
creation as certi&ed by the national agencies mentioned. -he law or
ordinance abolishing a local government unit shall specify the province city
municipality or barangay with which the 8+* sought to be abolished will be
incorporated or merged (?ection 7 9A #D$.
Q: Is !%e$iscite a i*is!esa$%e &e9#i&e,et "o& the c&eatio8 *i-isio8
,e&+e&8 a$o%itio o& s#$statia% a%te&atio o" LGU $o#*a&ies'A: Kes. %lebiscite 9e)uirement 0 Fo creation division merger abolition or
substantial alteration of boundaries of 8+*s shall take e2ect unless approved
by a maority of the votes cast in a plebiscite called for the purpose in the
political unit or units directly a2ected. ?aid plebiscite shall be conducted by
the ",!E8E" within #'D days from the date of e2ectivity of the law or
ordinance e2ecting such action unless said law or ordinance &
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Fotably the re)uirement of population is not an indispensable re)uirement
but is merely an alternative addition to the indispensable income
re)uirement. (A)unio vs. ",!E8E" +9 Fo. #677 April ' 'D#D$
Q: What is the stat#s o" those ,#ici!a%ities c&eate* $0 the P&esi*et
th&o#+h a E2ec#ti-e O&*e&'In %elaez vs Auditor +eneral #5 ?"9A 57 ?" declared as unconstitutional
?ection 6 of 9evised Administrative "ode which authorized the %resident to
create municipalities through e
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Q: What a&e the %i,itatios o the e2e&cise o" the Gee&a% We%"a&e
C%a#se'A: #. -erritoriality 0 police power can be e August '# #77 the ?upreme "ourt
upheld as legitimate e
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bene&ts a limited number of persons. -he support for the poor has long been
an accepted e ?"9A '7> is authority for the
rule that the power to issue permits to operate cockpit is vested in the !ayorin line with the policy of local autonomy.
,rtigas vs Leati Cank 7> ?"9A 5 held that a zoning ordinance
reclassifying residential into commercial or light industrial area is a valid
e
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A: Kes. 8ocal government units shall have the power and authority to establish
an organization that shall be responsible for the e=cient and e2ective
implementation of their development plans program and obectives and
priorities; to create their own sources of revenue and to levy ta
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Q: What a&e so,e "#*a,eta% !&ici!%es +o-e&i+ the /acia%aai&s8 t&asactios8 a* o!e&atios o" %oca% +o-e&,et #its'
A: #. Fo money shall be paid out of the local treasury e5: the city council has the authority todetermine whether or not a certain street is still necessary for public use.
"ruz vs "A #5 ?"9A #>': the city mayor of !anila cannot by himselfwithdraw %adre 9ada as a public market. -he establishment and maintenanceof public markets is among the legislative powers of the city of !anila hencethe need for oint action by the ?anggunian and the mayor.
Q: Who e2e&cises the %e+is%ati-e !oe& o" the LGU'
A: 8ocal legislative power shall be e6 9A #D$
Q: Who sha%% !&esi*e o-e& the %oca% %e+is%ati-e $o*ies'A: -he vice governor shall be the presiding o=cer of the sangguniang
panlalawigan; the city vice mayor of the sangguniang panlungsod; the
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municipal vice mayor of the sangguniang bayan; and the punong barangayof the sangguniang barangay. -he presiding o=cer shall vote only to break atie. (?ection >7 (a$ 9A #D$
Q: What a&e the !&o*#cts o" %e+is%ati-e actios o" a %oca% Sa++#ia'A: ,rdinance 0 which prescribes a permanent rule of conduct.
9esolution 0 which is of temporary character or e
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-hus in -ayaban vs %eople +9 #5D#7> !arch 'DD the ?" upheld the
conviction by the ?C of !ayor -aliban et al for acting in evident bad faith
wullfully and unlawfully passing 9esolution no. 'D vesting in themselves the
power and authority to demolish the half &nished -inoc %ublic !arket
construction to the damage and preudice of the government. -he "ourtreected the contention that the subect demolition was a valid e7'$
Q: Who a&e the *ie&et %oca% chie" e2ec#ti-es'A: -he punong barangay shall be the chief e>> 9A #D$
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-he city mayor shall be the chief e5 9A #D$
Q: >e/e the *#a% !e&soa%it0 o" a LGU'A: ?ection #5 of 9A #D de&nes a local government and embodies the dual
personality of a local government unit as a subdivision or agency of thegovernment and as a corporate entity representing the inhabitants of itsterritory.
!unicipal corporations perform dual functions one governmental andanother corporate. In the e7$.
Q: What a&e the co&!o&ate !oe&s o" a LGU'A: 8ocal government units shall enoy full autonomy in the e6>$
Q: Ca a LGU ac9#i&e o& co-e0 &ea% o& !e&soa% !&o!e&ties' I" so8hat a&e the esta$%ishe* ?#&is!*ece'
A: Kes. -he local government unit may ac)uire real or personal tangible orintangible properties in any manner allowed by law e.g. sale donation etc.
-he local government unit may alienate only patrimonial property uponproper authority ("ity of Faga vs "A #767$. In the absence of proof that theproperty was ac)uired through corporate or private funds the presumption isthat it came from the ?tate upon the creation of the municipality and thus is
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governmental or public property (?alas vsarencio >6 ?"9A >; 9ebucovs4illegas 55 ?"9A 5$.
-own plazas are properties of public domain; they may be occupiedtemporarily but only for the duration of an emergency (Espirituvs%angasinan #D' %hil. 6$.
Q: Sice LGUs ca ete& ito cot&acts8 hat a&e the &e9#isites o" a-a%i* ,#ici!a% cot&act'
A: #. -he local government unit has the e
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!arket the "ity of !anila (because of !ayor CagatsingGs admission that the"ity still has control and supervision$ is solidarily liable for inuries sustainedby an individual who stepped on a rusted nail while the market was 1ooded.
+uilatcovs "ity of 3agupan ## ?"9A 6': liability of the "ity for inuries dueto defective road attaches even if the road does not belong the local
government unit as long as the "ity e
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Q: Who a&e *is9#a%i/e* "&o, i+ "o& !#$%ic oDce'A: a$ -hose sentenced by &nal udgment for the o2ense involving moral
turpitude or for an o2ense punishable by one (#$ year or more of imprisonment within two years after serving sentence.
b$ -hose removed from o=ce as a result of an administrative case;c$ those convicted by &nal udgment for violating the oath of allegiance to therepublic;d$ -hose with dual citizenshipe$ Lugitives from ustice in criminal or non/political cases here and abroad;f$ %ermanent residents in a foreign country or those who have ac)uired theright to reside abroad and continue to avail of the same rights after thee2ectivity of this code; and g$ -he insane or feeble/minded. (?ec. >D 9.A. Fo. #D$
Q: What is the te&, o" oDce o" a%% e%ecti-e oDcia%s e%ecte* a"te& theeecti-it0 o" the Loca% Go-e&,et Co*e'
A: -hey shall serve for three ($ years starting from noon of une D #77' orsuch date as may be provided for by law e 9.A. Fo. #D$
Q: o %o+ ,a0 a %oca% e%ecti-e oDcia% se&-e as s#ch'A : Fo local elective o=cial shall serve for more than three ($ consecutive terms
in the same position. 4oluntary renunciation of o=ce for any length of timeshall not be considered as an interruption in the continuity of service for thefull term for which the elective o=cial concerned was elected.
Q: What a&e the tests i *ete&,ii+ hethe& a ca*i*ate is*is9#a%i/e* $eca#se o" the ;te&, %i,it' E2!%ai.
A: Lor purposes of determining the resulting dis)uali&cation brought about bythe /term limit it is not enough that an individual has served threeconsecutive terms in an elective local o=ce he must also have been electedto the same position for the same number of times. -here should beconcurrence of two conditions for the application of the dis)uali&cation: #$that the o=cial concerned has been elected for three consecutive terms inthe same local government post and '$ that he has fully served threeconsecutive terms.
Q: The ;te&, %i,it has to !a&ts. E2!%ai.A: -he &rst part provides that an elective local o=cial cannot serve for more
than consecutive terms. -he clear intent is that only consecutive termscount in determining the /term limit rule. -he second part states thatvoluntary renunciation of o=ce for any length of time does not interrupt thecontinuity of service. -he clear intent is that involuntary severance fromo=ce for any length of time interrupts continuity of service and prevents theservice before and after the interruption from being oined together to form acontinuous service or consecutive terms.After the consecutive terms an elective local o=cial cannot seekimmediate re/election for a fourth term. -he prohibited election refers to thene
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evil of a single person accumulating e
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appointment without such nomination and certi&cation shall be null and voidab initio and shall be ground for administrative action against the o=cialsresponsible therefor;
c) in case the permanent vacancy is caused by a sanggunian member whodoes not belong to any political party the local chief e
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after the e> ?ec.s. D and # of the 8ocal +overnment "ode wereamended and the %reparatory 9ecall Assembly has been eliminated as a
mode of initiating recall of elective local government o=cials.
P&oce*#&e "o& iitiati+ &eca%%. 9ecall of a provincial city municipal orbarangay o=cial shall be initiated upon petition by at least '5N of the totalnumber of registered voters in the local government unit concerned duringthe election in which the local o=cial sought to be recalled was elected.
a) A written petition for recall duly signed before the election registrar or hisrepresentative and in the presence of a representative of the petitioner andrepresentative of the o=cial sought to be recalled and in a public place inthe province city municipality or barangay as the case may be shall be&led with the "omelec through its o=ce in the local government unitconcerned. -he ",!E8E" or its duly authorized representative shall causethe publication of the petition in a public and conspicuous place for a periodof not less than #D days or more than 'D days for the purpose of verifyingthe authenticity and genuineness of the petition and the re)uired percentageof voters.
In Angobung v. Comelec, G.R. No. 126571, March 5, 1997,the Sureme Court un!er"core! the nee! #or a et$t$on "$gne! b% at lea"t 25& o# the totalnumber o# reg$"tere! voter" $n the con"t$tuenc% $n or!er to val$!l% $n$t$ate arecall elect$on. 'hu", (here the et$t$on $" "$gne! onl% b% the et$t$oner an!!oe" not even bear the name" o# the c$t$)en" (ho have allege!l% lo"t con*!ence $n the ubl$c o+c$al, then the et$t$on "houl! be !$"m$""e!.
$) *pon the lapse of the aforesaid period the "omelec or its duly authorizedrepresentative shall announce the acceptance of candidates to the positionand thereafter prepare the list of candidates which shall include the name of the o=cial sought to be recalled.
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Election on 9ecall. *pon the &ling of a valid petition for recall with theappropriate local o=ce of the "omelec the "ommission or its duly authorizedrepresentative shall set the date for the election on recall which shall not belater than D days after the &ling of the resolution or petition in the case of the barangay city or municipal o=cials and >5 days in the case of provincialo=cials. -he o=cial or o=cials sought to be recalled shall automatically be
considered as duly registered candidate or candidates to the pertinentpositions and like other candidates shall be entitled to be voted upon(?ec.# 9.A.#D$
E2ectivity of 9ecall. -he recall of an elective local o=cial shall be e2ectiveonly upon the election and proclamation of a successor in the person of thecandidate receiving the highest number of votes cast during the election onrecall. ?hould the o=cial sought to be recalled receive the highest number of votes con&dence in him is thereby a=rmed and he shall continue in o=ce(?ec.' 9.A. Fo. #D#$
%rohibition from resignation. -he elective local o=cial sought to be recalled
shall not be allowed to resign while the recall process is in progress.
: A&e the&e %i,itatios o Reca%% E%ectio'A: 8imitations on 9ecall (sec. > 9.A. #D$
a$ Any elective local o=cial may be the subect of a recall election only onceduring his term of o=ce for loss of con&dence.
b$ Fo recall shall take place within one year from the date of theo=cialRsassumption to o=ce or one year immediately preceding a a regular localelection.
In ara" v. Comelec, G.R. No. 12-169, November , 1996 $t (a" hel! that theSanggun$ang/abataan 0S/ elect$on $" not a regular elect$on ($th$n thecontemlat$on o# the ocal Govemment Co!e a" (oul! bar the hol!$ng o# arecall elect$on. Ne$ther ($ll the recall elect$on o# the Ma%or be barre! b% thebaranga% elect$on". lnAngobung v. Comelec, "ura., It (a" hel! that the3regular local elect$on3 re#erre! to $n Sec. 7, ocal Government Co!e, mean"that the aroach$ng local elect$on mu"t be one (here the o"$t$on o# theo+c$al to be recalle! $" actuall% conte"te! an! to be *lle! b% the electorate.
E. >isci!%ie o" Loca% ODcia%s
: State the +&o#*s "o& the *isci!%ie8 s#s!esio o& &e,o-a% "&o,oDce o" a0 %oca% e%ecti-e oDcia%.
A: An elective local o=cial may be disciplined suspended or removed fromo=ce on any of the following grounds:
a$ 3isloyalty to the 9epublic of the %hilippinesb$ "ulpable violation of the "onstitutionc$ 3ishonesty oppression misconduct in o=ce gross negligence or dereliction
of duty;d$ "ommission of any o2ense involving moral turpitude or an o2ense punishable
by at least prision mayor.e$ Abuse of authorityf$ *nauthorized absence for #5 consecutive working days e
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h$ ?uch other grounds as may be provided in the 8ocal +overnment "ode andother laws.
: Whe&e sha%% a a*,iist&ati-e co,!%ait a+aist a %oca% oDcia% $e/%e*'
A: #$ A complaint against any elective o=cial of a province a highly urbanized
city an independent component city or component city shall be &led beforethe ,=ce of the %resident
'$ A complaint against any elective o=cial of a municipality shall be &ledbefore the sangguniang panlalawigan whose decision shall be appealed tothe o=ce of the %resident;
$ A complaint against any elective barangay o=cial shall be &led before thesangguniang panglungsod or sangguniang bayan concerned whose decisionshall be &nal and e
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e%ecti-e oDcia%s o" !&o-ices a* hi+h%0 #&$ai1e* cities. The OSGCote*e* that *es!ite s#ch %a8 the co*e *i* ot ith*&a "&o,the O,$#*s,a the *isci!%ia&0 !oe& o-e& s#ch oDcia%s co"e&&e*#!o it #*e& R.A. No. 6557. Is the cotetio co&&ect' Wh0'
A: Kes. -here is nothing in the 8ocal +overnment "ode to indicate that it hasrepealed whether e
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: S#!!ose a ,a0o& as !&e-eti-e%0 s#s!e*e* $0 the Go-e&o&8 is heetit%e* to his sa%a&0 *#&i+ that !e&io*'
A: Fo the law says that the o=cial preventively suspended from o=ce shallreceive no salary or compensation during such period. -he reason is that heis not performing his duties as a public servant.
: S#!!ose the ,a0o& as e2oe&ate* a* &eistate*8 i%% he &ecei-ehis $ac< sa%a&ies'
A: Kes because the law provides that upon subse)uent e
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operates as a condonation of the o=cerGs previous misconduct to the e
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local "hief e
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dishonesty oppression or grave misconduct or neglect in the performance of duty or if there is reason to believe that the respondent is guilty of thecharges which would warrant removal from the service
Q: Whe ,a0 a a!!oiti-e oDcia% etit%e* to $ac< sa%a&ies'A : In %laza v. "A +.9. Fo. #6>> anuary #6'DD6. -he ?upreme "ourt upheld
the validity of the act of +overnor 3emocrito %laza preventively suspendingthe respondents who were being investigated for administrative complaintslodged against them. -he suspension is not unusti&ed; it is one of thesacri&ce which holding a public o=ce re)uires for the public good. -o beentitled to back salaries private respondents must not only be foundinnocent of the charges but their suspension must likewise be unusti&ed.
Q: What is the e2tet o" the *isci!%ia&0 ?#&is*ictio o" the Loca% Chie" E2ec#ti-e'
A: E