C OF THE PHILI sian ATTY. MARIBEL G. ALVAREZ-DOMADO. Counsel for Acting Municipal Mayor of Ditsaan-Ramain, Lanao del Sur, Anna Mahlyne A, Macarampat ALVAREZ DOMADO LAW OFFICE * 216 2"4 Floor, Mile Long Bldg. Amorsolo St. corner Javier St. 1223 Makati City ’ Dear Atty. Domado: | | This has reference to your letter dated 1 regarding the requirements before disbursement a ‘Allotment (IRA) from depository bank by acting M newly designated O[C-Municipal Treasurer, Abdul Ramain, Lanao del Sur may be effected, Acthe outset, may we re-state the following f In an Order datefi 04 September 2014 (appr Ombudsman, on 13 October 2014), the Offi Adiong (hereinaffer “Mayor Adiong’), the a Ditsaan-Ramain, Lanao del Su; under preve months without pay. In the same Order, the| SILG to implement the aforesaid order of susp i In compliance thereto, the Department issu 2014 to Atty. Anwar A. Malang, Regional Sec cause the immedjate Implementation of the Mayor Adiong is ¢oncerned; ‘The aforesaid order of suspension was implem On the same day, Vice-Mayor Anna Maly, ‘Mayor Macarampat) assumed as acting Mayor of the Internal Revenue Allotment (IRA) of National Bank (PNB),-Marawi City, Lanao d maintained with the Bank. You added that t! However, per your letter, acting Mayor Macas, her authority to |do so, was questioned by 1 bayan resolution authorizing he¥ to be'the sign, DILG Legal Opinion No. 03, s. 2035 2 3 tes 2015 2 January 2015 seeking legal opinion \d_ withdrawal of the Internal Revenue yyor Anna Mahlyne A. Macarampat and Iba, of the Municipality of Ditsaan- ictual antcedents: ved by Hon. Conchita Carpio Morales, fe of the Ombudsman placed Ali Untao ly elected mayor of the Municipality of ‘ative suspension for a period of six (6) Office of the Ombudsman directed the nsion against Mayor Adiong; da Memorandum dated 13 November fetary, DILG-ARMM, requesting him to oresaid Ombudsman Order insofar as mnted on 04 December 2014; eA, Macarampat (hereinafter “acting f the Municipality of Ditsaan-Ramain; mpat was not able to cause the release fhe Municipality of Ditsaan-Ramain as he Branch Manager of the Philippine 1 Sur Branch, for lack of sangguniang tory in the transactions in the account ie OIC-Municipal Treasurer Norhata P.i See so Samporna likewise did not.cogperatg.with acl _ i Macarampat and the O1 sdministrative expenses) jubmission of a sangguni ev portion of which reads: ‘Photocopy attached did not show any. courtesy to her and ret Mayor prompting acting Mayor Macara Government Finance (BLGF) the replaceme: the Office of its Regional Director, Datu Ali ting Mayor Macarampat as Ms. Samporna 'd to recognize her as acting Municipal to recommend to the Bureau of Local 1 of Ms. Samporna. The BLGF, through jozeid A. Sinsuat, granted the request of Ms. Macarampat and designated Mr, Abdul M. Iba (hereinafter “Mr. Iba”)as the new OIC-Municipal Treasurer of the Municipality XIII Special Personnel Order No. 123-2014 dat Acting Mayor Macarampat duly notified th furnishing copies of the Order for Preventivi y of Ditsaan-Ramain through BLGF R ited 23 December 2014; le PNB of her assumption to office by Suspension, the implementation order, and Certification recognizing her as the acting Mayor by the DILG-Acting Provincial Director Paisal C. Sani, her Assumption to | Branch Manager, of Marawi Gity forwarded Office, and Oath of Office. The PNB to its Central Office the issue on the authority of acting Mayor Macarampat to transact business with the bank; Bahena’), the le Bayan should be fought so thatthe bank maj one of the authorized signatories to the accoul IRA may be duly effected; h letter dated 08 January 2 only be recognized by the Subsequently, in Treasurer Iba may submission of thelcrtifed true copy of the BLL resolution authorizing him to transact with Republic Act No, Hence, your instant letter, Specifically, you pre seeking our legal opi “Municipal Treasurer Abdi jould be armed with a sanggunian resolution in orde nicipality. If required inds of the municipality|imaintained with PNB Mara on! Invreply to your] query,’ please be informe, 1g bayan resolution in favor ‘ithdrawal of the [RA frg Iready addressed a simijar concern in DILG-Opini In a letter dated 18 December 2014, Atty. Manuel C. Bahena, Jr. (hereinafter pl counsel of PNB, stated that the authorization of the Sanggui 7160 or the Local Governme| etc, but the unspecified 48 it possible, based on the fred or they ate both exempted to submit the said m depository bank is concet “Atty. niang, consider acting Mayor Macarampat as of the municipality and release of the 15, the PNB posits that O1C-Municipal bank as one of the signatories upon his GF Order, oath of office and sanggunian the bank pursuant to Section 311 of nt Code of 1991; mn on “xxx Whether the Acting Mayor IM, Iba, based on the circumstances, ¢r to withdraw, not only those fiunds for part or whole of the IRA of the circumstances that such requirement is resolution in order to withdraw the "i City Branch?” that insofar as the requirement on of the mayor before disbursement and ned, please be informed that this level mn No. 20-2006 dated 17 April 2006',legal opinion and/or Vice-President Renauld R. Villafuerte ol Department, Land Bank of the Philippines sistance regarding the letter of the Banking Legal Services BP), which stated that the city government is required to sybmit a Sangguniang Panlungsod Resolution designating the City Mayor as one of the au government account based on the bank acc, thorized signatories of the local sunt internal policy, which we shall herein quote, in part, thus: “For LGU: xxx b) Resolution issued by the Sangguntan of LGU concerned duly notarized incorporating the following: xxx officers authorized to sign and the nature and 7.14, 0101.18, Branch Manual, Adgust 2 requirement is consistent with Article 86 (vi) regulations of the Local Government Code a extent of such authority” (Item MW). It also stated that such of the Implementing Rules and 7160), which states that the Mayor may ‘spon authorization of the Sangguniang Bayan, represents the city in all its transagtion, and sign on its be obligations, and. s#ch ather documents made p walf all bonds, contracts, and irsuant to law or ordinance" With alt due respect, we would the 10 take exceptions on the aforementioned premise. We are of the h Panlungsod Re designating the City to the LGU account is not anymore necessary 4 Moreover, the juoti jon_of Articl xxx the Mayor may represent the cits and sign bonds, Fontracts, obligations and | ‘ble view that the Sangguniang favor as the authorized signatory 1s it is not even required by law. e 86 (vi) of the Implementing Code appears to be erroneous. in all its business transactions ich other documents relevant thereto, even Without a prior authorization froin the Sangguniang Panlungsod, for as long as there is either a La W or ORDINANCE that authorizes him/her {0 do so. The said. two (2) other ednditions| serve as the exception to the general rule found in Section 23 (¢) of the Loca In this regard, worthy of considerat Which provides the “local treasurers shall mai name of theit respective local government government-owned, located in or nearest Government Code. in is Section 311 of RA 7160, tain depository accounts in the units with banks, preferably to their respective areas of Jurisdiction. Earnings of these depository acdounts shall accrue exclusively thereto". Relatively, Section 345 of the Local Government Code provides that “(hecks in settlement of obligations shall be drawn by the local treasurer and countersigned by the local administrator”. Als. Section 344 of the same Code Provides that, except in cases of disbursements involving regularly recurring administrative expenses, approval of the dish rsement voucher by the local chief executive himself shall be required whenpver local funds are disbursed. It is settled chat a youcher is a document which| shows that services have been performed or expenses incurred, When an thorized person approves a disbursement voucher, he certifies to the correctness of the entries therein, myj fometpeose yet eeenaamnang sinha thev expenses, incurred, were necessary and lawful, the r | “supporting documents are complete and the availability of cash therefor. It ‘hus bears to emphasize that under the law] while it is required that the City Mayor shall sign or approve’ the disbursement voucher, it is not, however, required that the City Mayot be the one to sign and draw the checks since the checks in settlement of obligations are diawn by the local treasurers and countersigned by the local administrators. Hence, we are ina quandary as to the internal policy of the bank in requiring that a Sangguniang Panlungsod Resolution be passed to designate the City: Mayor as the authorized signatory of the LGU a As clearly shown above, the City Mayor, as the Local Chief Executive, is vested with powers as set forth by law. The LGU is likewise empowered and required by law to dmaintain an account with a depository bank, preferably a government-owned. The LGU concerned would then act for that purpose, through the Mayor, not | by virtue of a sanggunian authgrity but by 1e of an authority conferred by The abovementioned provisions of law are sufficient Jegal bases and authority for it maintain_an account with any government-owned bank wit of a Sangguniang Panlungsod Resolution ing the authorized signatories since the law already 1s where a Board Resolution is that there is no more need for a pect to LGUs considering that the provided for-it.| Unlike private corporatio juired for the pury we are of the vier | Sangguniang Ps Resolution with powers of the GUs in general are already Properly delinea ng. the wisdom of the internal policy of that bank, we, however, res illy request that said internal policy be revisited and prejudice i sic services to the constituents, but also because the Ia juire the subject sanggunian resolution,” With regard to the case)of Mr, Iba, the newly designated Officer-in-Charge of the fice of the Municipa} ‘Treasurer, we are also of the view that the requirement of eon Resolution may bexdispensed with in view of the expressed, provisions of Section 11 in relation to Section}345 of the Logal Government Code of 1991, thus cal epository accoupts i ae Jocal government units with banks, prea government-owned, located in or nearest to their respective areas pf jurisdiction. Earnings of each depository account shall accrue exclusivel} chexeto.| pepe een | | cep Section, 345, Officials, Authorized, to Draw Checks in Settlement of Jn case of temporaty absence or incapacity of the foregoing officials, these duties shall devolve upon their immediate assistants.” (Emphasis Supplied) | Along this line, Section 470 of the Local Government Code of 1991 provides that the municipal treasurer shall be appointed by the Se¢retary of Finance. ‘The Department of Finance, through BLGF-Region XII issued its Special Personnel Order No. 123-2014 dated 23. December 2014 designating Mr. Iba as the new |Officer-in-Charge of the Office of the Municipal Treasurer. While: it is true, as claimed by Atty. Bahéna that the aforesaid designation of Mr, Iba is still subject"to copfirmation by the OIC-Executive Director of the BLGF, the Department shall recognize such BLGF R-XII Special Personnel Order pursuant to the presumption of regularity in the discharge of pne’s official duties-and functions. Well entrenched in jurisprudence is the time honored principle that the law bestows upon a public official the presumption|of regularity in the discharge of one’s official duties and functions. | ‘We hope to have addressed your concern accprdingly. | ’ Very truly yours, | AUSTERE A. PANADERO. Undersecretary ov aM Copy tends iv Whuesit ATTY. ANWAR A. Ma Regn Sezetry,D ARMIN Complex. Ct ATTY. MANUEL BAHEBA Chie Lest Counc | Plppine Natal Bank Pr: Dido Macspga Paty City 1 ” Nfs