II. Constitutional And Legal Framework> B. RA 7160 [LGC]> 3.

Declaration of Policy [Sec 2, LGC 1]> Local Autonomy and National

Accountability

17. San Juan v Civil Service Commission

April 19, 1991 GUTIERREZ, JR., J

FACTS:
Petitioner Governor San Juan prays for the nullification of CSC resolutions upholding the appointment of respondent,
Almajose as Provincial Budget Officer (PBO) of Rizal in this petition for certiorari.
Previously, the position of PBO for Rizal was left vacant by its former holder.
Petitioner informed DBM Region IVs director, Abella that a certain Dalisay Santos assumed office as Acting PBO (Santo was
the Municipal BO of Taytay, Rizal before discharging functions of acting PBO). Futhermore, petitioner requested Abella to
endorse the appointment of Santos.
However, Abella recommended the appointment of Almajose on the basis of a comparative study of all MBOs of Rizal.
According to Abella, respondent was the most qualified since she was the only CPA among the contenders
DBM USec Cabuquit signed the appointment papers of Almajose
In a letter addressed to Sec Carague, petitioner reiterated the request to appoint Santos, unaware of the appointment
made by Cabuquit
DBM regional director Galvez wrote the petitioner that Santos and his other recommendees did not meet the minimum
requirements under Local Budget Circular No. 31 and w/n through oversight further required the petitioner to submit at
least three other qualified nominees
Petitioner, having been informed of Almajoses appointment protested on the ground that Cabuquit is not legally
authorized to appoint the PBO and that under EO 112, it is the governor, not the regional director, who has the power to
recommend nominees for the position
DBM issued a memo ruling that petitioners protest is not meritorious considering that DBM validly exercised its
prerogative in filling up the position since none of the petitioners nominees met the requirements.
Petitioners MR was denied by DBM Sec.
Subsequently, petitioner wrote the CSC reiterating his protest. CSC issued resolutions upholding Almajoses appointment,
hence this petition.

ISSUE/HOLDING/RATIO: W/N private respondent is lawfully entitled to discharge the functions of PBO pursuant to the
appointment made by DBMs USec upon recommendation of DBM Region IVs director. NO. Petition granted, appointment of
respondent Cecilia Almajose is nullified.

Petitioner: Sole right and privilege to recommend nominees belong to petitioner and the appointee should come only from his
nominees. [see Sec 1 of EO 1122] The phrase "upon recommendation of the local chief executive concerned" must be given
mandatory application in consonance with the state policy of local autonomy as guaranteed by the 1987 Constitution under Art.
II, Sec. 253 and Art. X, Sec. 24 thereof. His power to recommend cannot validly be defeated by a mere administrative issuance of
DBM.

1 Section 2. Declaration of Policy. (LGC)

(a) It is hereby declared the policy of the State that the territorial and political subdivisions of the State shall enjoy genuine and
meaningful local autonomy to enable them to attain their fullest development as self-reliant communities and make them more effective
partners in the attainment of national goals. Toward this end, the State shall provide for a more responsive and accountable local
government structure instituted through a system of decentralization whereby local government units shall be given more powers,
authority, responsibilities, and resources. The process of decentralization shall proceed from the national government to the local
government units.

(b) It is also the policy of the State to ensure the accountability of local government units through the institution of effective mechanisms
of recall, initiative and referendum.

(c) It is likewise the policy of the State to require all national agencies and offices to conduct periodic consultations with appropriate local
government units, nongovernmental and people's organizations, and other concerned sectors of the community before any project or
program is implemented in their respective jurisdictions.1aw

2 Sec 1 (EO 112). All budget officers of provinces, cities and municipalities shall be appointed henceforth by the Minister of Budget and
Management upon recommendation of the local chief executive concerned, subject to civil service law, rules and regulations, and they shall be
placed under the administrative control and technical supervision of the Ministry of Budget and Management.

3 Sec. 25 (Art II, 1987 Consti). The State shall ensure the autonomy of local governments
Respondent: As required by E.O. No. 112, the DBM Secretary may choose from among the recommendees of the Provincial
Governor who are thus qualified and eligible for appointment to the position. Notwithstanding, the recommendation of the local
chief executive is merely directory and not a condition sine qua non to the exercise by the Secretary of DBM of his appointing
prerogative. To rule otherwise would in effect give E.O. No. 112 a different interpretation or construction not intended therein,
taking into consideration that said officer has been nationalized and is directly under the control and supervision of the DBM
Secretary or through his duly authorized representative. It cannot be gainsaid that said national officer has a similar role in the
LGUhence, to preserve and maintain the independence of said officer from the LGU, he must be primarily the choice of the
national appointing official, and the exercise thereof must not be unduly hampered or interfered with, provided the appointee
finally selected meets the requirements for the position

SC: The issue involves the application of local autonomy; where a law is capable of two interpretations, one in favor of centralized
power and the other beneficial to local autonomy, the scales must be weighed in favor of autonomy. The exercise of greater local
autonomy is even more marked in the present Constitution. [see Art. II, Sec. 25 and Art. X, Sec. 2] Thus, when the CSC interpreted
the recommending power of the Provincial Governor as purely directory, it went against the letter and spirit of the constitutional
provisions on local autonomy. If the DBM Secretary jealously hoards the entirety of budgetary powers and ignores the right of local
governments to develop self-reliance and resoluteness in the handling of their own funds, the goal of meaningful local autonomy is
frustrated and set back.

The right given by Local Budget Circular No. 31 5 is ultra vires and is, accordingly, set aside. The DBM may appoint only from the list of
qualified recommendees nominated by the Governor. If none is qualified, he must return the list of nominees to the Governor
explaining why no one meets the legal requirements and ask for new recommendees who have the necessary eligibilities and
qualifications.

4 Sections 2 and 3 (Art X, 1987 Consti):

Sec. 2. The territorial and political subdivisions shall enjoy local autonomy.

Sec. 3. The Congress shall enact a local government code which shall provide for a more responsive and accountable local government
structure instituted through a system of decentralization with effective mechanisms of recall, initiative, and referendum, allocate among
the different local government units their powers, responsibilities, and resources, and provide for the qualifications, election,
appointment and removal, term, salaries, powers and functions and duties of local officials, and all other matters relating to the
organization and operation of the local units.

5
Sec. 6.0 (Local Budget Circular No. 31). The DBM reserves the right to fill up any existing vacancy where none of the nominees of
the local chief executive meet the prescribed requirements.