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Pamantasan ng Lungsod ng Maynila

College of Law

Public Corporations
Atty. Joey Lina

Compiled Exam Questions with Answers

QUIZ (July 28, 2016)

1. Can the province of Laguna enter into a trade agreement with Fujian province of the Peoples
Republic of China?

2. Can a barangay establish a tertiary hospital within the territory of the barangay?

3. Can a provincial governor refuse a directive of the office of the President for the provincial
government to set up a drug rehabilitation center for drug addicts?

Answer: Yes.

4. Can a citizen whose car was damages because of large potholes on city roads sue the city

Answer: Yes. Under Article 2189 of the Civil Code, Provinces, cities and municipalities shall be
liable for damages for the death of, or injuries suffered by, any person by reason of the
defective condition of roads, streets, bridges, public buildings, and other public works under
their control or supervision.

It is not even necessary that the defective road, or street belong to the province, city or
municipality for the liability to attach. It is enough that they exercise control or supervision
over the defective road or street

5. Can a local government stop a national government project within the LGU territory?

6. When there is a conflict between a national law and an LGU ordinance, which shall prevail?

7. A contract was entered between a city mayor and a helicopter company to purchase a helicopter
from the latter for use of the city government during man-made calamities. Is the contract valid?

8. Upon the request of an LGU for funds to finish the construction of a bridge, the President released
the needed amount. Later, the office of the President sent a notice to the LGU that the amount
released would be deducted from the share of the LGU from the Internal Revenue allotment. What
will be your advice to the LGU on this matter?

9. Is it legal for LGUs to contribute funds for a common project that will benefit their constituents?

10. A church wants to undertake a project for the poor but it lacks funds. It solicits or asks funds from
the LGU. If youre the Chief Executive of the LGU, what will be your response to the churchs

Brigola L, Fernandez A, Hernandez M, Juarez S, Pagtabunan A.

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MIDTERM (August 2016)

A. Whats the relationship between the national and local governments? Explain.

B. Can local governments stop national government projects from being implemented in their
territories? Why?

A. Can a mayor reject the qualified nominees for Chief of police submitted to him for appointment
by a provincial police director?

R.A. No. 6975, DILG Code

Section 51. Powers of Local Government Officials Over the PNP Units or Forces. Governors and
mayors shall be deputized as representatives of the Commission in their respective territorial jurisdiction.
As such, the local executives shall discharge the following functions:

(a) Provincial Governor (1) Power to Choose the Provincial Director. The provincial governor
shall choose the provincial director from a list of three (3) eligible recommended by the PNP
regional director.

(2) Overseeing the Provincial Public Safety Plan Implementation. The governor, as
chairman of the provincial peace and order council, shall oversee the implementation of the
provincial public safety plan, which is prepared taking into consideration the integrated
community safety plans, as provided under paragraph (b) (2) of this section.

(b) City and Municipal Mayors (1) Operational Supervision and Control. The city and municipal
mayors shall exercise operational supervision and control over PNP units in their respective
jurisdiction except during the thirty (30) day period immediately preceding and the thirty (30) days
following any national, local and barangay elections. During the said period, the local police forces
shall be under the supervision and control of the Commission on Elections.

The term "operational supervision and control" shall mean the power to direct, superintend,
oversee and inspect the police units and forces.

It shall include the power to employ and deploy units or elements of the PNP, through the
station commander, to ensure public safety and effective maintenance of peace and order
within the locality. For this purpose, the term "employ" and "deploy" shall mean as follows:

Brigola L, Fernandez A, Hernandez M, Juarez S, Pagtabunan A.

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"Employ" refers to utilization of units or elements of the PNP for purposes of protection of
lives and properties, enforcement of laws, maintenance of peace and order, prevention of
crimes, arrest of criminal offenders and bringing the offenders to justice, and ensuring
public safety, particularly in the suppression of disorders, riots, lawless violence, rebellious
seditious conspiracy, insurgency, subversion or other related activities.

"Deploy" shall mean the orderly organized physical movement of elements or units of the
PNP within the province, city or municipality for purposes of employment as herein defined.

(2) Integrated Community Safety Plans. The municipal/city mayor shall, in coordination
with the local peace and order council of which he is the chairman pursuant to Executive
Order No. 309, as amended, develop and establish an integrated area/community public
safety plan embracing priorities of action and program thrusts for implementation by the
local PNP stations.

It shall, likewise, be the duty of the city or municipal mayor to sponsor periodic seminars for
members of the PNP assigned or detailed in his city or municipality in order to update them
regarding local ordinances and legislations.

(3) Administrative Disciplinary Powers. In the areas of discipline, city and municipal
mayors shall have the powers to impose, after due notice and summary hearings,
disciplinary penalties for minor offenses committed by members of the PNP assigned to their
respective jurisdictions, as provided in Section 41 of this Act.

(4) Other Powers. In addition to the aforementioned powers, city and municipal mayors
shall have the following authority over the PNP units in their respective jurisdictions:

(i) Authority to choose the chief of police from a list of five (5) eligibles
recommended by the provincial police director, preferably from the same province,
city or municipality.

(ii) Authority to recommend the transfer, reassignment or detail of PNP members

outside of their respective city or town residences; and

(iii) Authority to recommend, from a list of eligibles previously screened by the peace
and order council, the appointment of new members of the PNP to be assigned to
their respective cities or municipalities without which no such appointment shall be

B. Can a mayor be charged with usurpation of authority if he/she leads the anti-drug campaign in
his LGU and not the Chief of police?

A. What happens to the agencies whose functions have been devolved to LGUs? Are they
B. What must Congress do in case nothing happens to these agencies?

A. An LGU owns a warehouse which can store palay, can the LGU rent it out to poor farmers for a
B. Give 3 examples of taxes that LGUs may impose and 3 examples of taxes that they cannot

A. The Provincial Governor disallowed a barangay ordinance, can the mayor who has jurisdiction
over the barangay protest the Governors action?
B. Calamba, a component first class city refuses to submit its budget to the Provincial Sanggunian
of Laguna. Can it validly do so?
A. The Province of Laguna imposed a tax on the business of Meralco for calendar year 2016. Can
Meralco oppose it on the ground that it has already paid its franchise tax and that the latter is
in lieu of all taxes that local governments can impose on it? Why?

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B. A GOCC opposed the community tax that the city government of Calamba imposed on it. Will
the GOCCs opposition succeed on the ground that it is exempted from the tax as it is an
instrumentality of government? Why?

7. In a barangay in Makati, a ballroom dancing hall was being planned by the barangay government.
No government land was available in the barangay. A piece of land within a gated village was to be
expropriated through an ordinance for the purpose. Can the project be pursued legally? Why?

A. In the name of national interest, and to make the campaign against illegal drugs successful, the
President ordered the PNP Director General to suspend the submission indefinitely of qualified
police officers to the provincial and city and municipal mayors for appointment as provincial
directors and city/municipal chiefs of police respectively. Is the President justified in issuing the
B. The national government insists that a bridge be constructed in a municipal road despite the
opposition of the barangay captain having jurisdiction over the said municipal road which
passes through the barangay. How will you resolve this stalemate?

A. The municipality of Victoria Laguna wants to reclassify some agricultural lands into other uses.
What will be your advice to the Victoria mayor on how to proceed with this undertaking?

B. MMDA, for easing traffic in Makati, passed a resolution to open Dasmarinas Village roads to
non-resident private vehicle owners. Will the MMDAs resolution be legal?

10. With the devolved functions from the national to local governments in place under the Local
Government Code of 1991, what are your suggestions on how to make the LGUs more responsive
to the needs of their inhabitants?

QUIZ (September 8, 2016)

1. Can LGUs levy taxes other than those listed under the Local Government Code of 1991? If yes, give
at least 5 examples. Use your creative minds. (20 points)

2. How can you make sure that LGUs, which host factories and plantations but not the business
principal office, get their fair share of the taxes on business? (20 points)

Section 150. Situs of the Tax. -

(a) For purposes of collection of the taxes under Section 143 of this Code, manufacturers,
assemblers, repackers, brewers, distillers, rectifiers and compounders of liquor, distilled spirits and
wines, millers, producers, exporters, wholesalers, distributors, dealers, contractors, banks and
other financial institutions, and other businesses, maintaining or operating branch or sales outlet
elsewhere shall record the sale in the branch or sales outlet making the sale or transaction, and the
tax thereon shall accrue and shall be paid to the municipality where such branch or sales outlet is
located. In cases where there is no such branch or sales outlet in the city or municipality where the
sale or transaction is made, the sale shall be duly recorded in the principal office and the taxes due
shall accrue and shall be paid to such city or municipality.

(b) The following sales allocation shall apply to manufacturers, assemblers, contractors, producers,
and exporters with factories, project offices, plants, and plantations in the pursuit of their business:

(1) Thirty percent (30%) of all sales recorded in the principal office shall be taxable by the
city or municipality where the principal office is located; and

(2) Seventy percent (70%) of all sales recorded in the principal office shall be taxable by
the city or municipality where the factory, project office, plant, or plantation is located.

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(c) In case of a plantation located at a place other than the place where the factory is located, said
seventy percent (70%) mentioned in subparagraph (b) of subsection (2) above shall be divided as

(1) Sixty percent (60%) to the city or municipality where the factory is located; and

(2) Forty percent (40%) to the city or municipality where the plantation is located.

(d) In cases where a manufacturer, assembler, producer, exporter or contractor has two (2) or
more factories, project offices, plants, or plantations located in different localities, the seventy
percent (70%) sales allocation mentioned in subparagraph (b) of subsection (2) above shall be
prorated among the localities where the factories, project offices, plants, and plantations are
located in proportion to their respective volumes of production during the period for which the tax
is due.

(e) The foregoing sales allocation shall be applied irrespective of whether or not sales are made in
the locality where the factory, project office, plant, or plantation is located.

3. In your own words, describe how real properties are taxed. What are the taxpayers remedies if
taxes on real properties are oppressive? What can government do to collect real property taxes
from those who do not pay the tax? (20 points)

4. If you are to pay real property tax and you are told how much is the tax, how can you make sure
that you are paying the right amount of tax? (20 points)

5. Some LGUs in urban areas have wider local tax base, e.g. real property, big business; others have
little, e.g. agricultural land, small business. Is there a need to change the sharing of national taxes
among the LGUs? (20 points)

Brigola L, Fernandez A, Hernandez M, Juarez S, Pagtabunan A.

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