LAW ON PUBLIC CORPORATIONS

SAN BEDA MEM.RY AID 2018

organizational structure . and operating improvement of the performance of local

mechanism that will meet the priority needs and government units and the quality of community
service requirements of its communities; life (LGC, Sec. 3).
3. Subject to civil .service law, rules, and
regulations, local officials and employees paid Principles of Local Autonomy
wholly or mainly from local funds shall be The principle of local autonomy under the 1987
appointed or re.moved, according to merit and Constitution simply means "decentralization" and it
fitness, by the appropriate appointing authority; does not make the local governments sovereign
4. The vesting of duty, responsibility, and within a State or an imperium in imperio (Basco v
accour:,tability in local government units shall be PAGCOR, G.R. No. 91649, May 14, 1991).
accompanied with provision for reasonably
adequate resources to discharge their powers The Philippines is still a unitary form of government,
and effectively carry out their functions: hence, not a federal state. Being so, any form of autonomy
they shall have the power to create and broaden granted to local governments wilr necessarily b~
their own. sources of revenue and the right to a limited and confined within the extent allowed by the
just share in national taxes and an equitable central authority (Lina v. Pano, G.R. No. 129093.
share in . the proceeds of the utilization and August 30, 2001).
development of the national wealth within their
respective areas; In a unitary system of government like the
5. Provinces with respect to component cities and Philippines, local governments can only be an intra
municipalities, and cities and municipalities with sovereign subdivision of one sovereign nation. Local
respect to component barangays, sh t in such a system can only mean a
that the acts of their compo: t units of deC,€HJt,ralizationof the function of
the ~co~e- of their pref 1\j
. <!~po rs ~g f;ltFijOY~r t (Lfrr('l5(-ia v Mange/in, G.R. No. 80391,
5 1
6.
funct,ons, - .) .r·•Y); r r=<·:;f,'\1
LGUs may group themselves-- -pnsofi~te·t »or--·
:rt/jr~~'¥ll1·
/~pPJ.
+ -
,,_ ...,J·•· L..--·"'· "' · '- :>
.
coordinate their e~orts, service · .d ongty~}:neans that local g_ov~~nme~tshave .
commonly beneficial to them; ,. · :,:91venby the Const1tut1onwhich may
7. The capabilities of LGUs, rtr ..;by the national government, but that
municipalities and baranga ft ~e. local governments may not pass
enhanced by providing them w ef ~trary to statute (BERNAS, supra at
to participate actively in the im 1-· ""
national programs and projects;
8. There shall be a continuing h llippine concept of local autonomy, the
enhance local autonomy not onl at' , rnment has not completely relinquished
1
enabling acts but also by admi . 1 ,•, " · ·-ers over local governments, including
organizational reforms; "!.;,__ -~ ·us regions. Only administrative powers
9. LGUs shall share with the national gov,e nt o · ·;cal affairs are delegated to political
the responsibility in the managementL ~ r · 1visions. The purpose of the delegation is to
maintenance of ecological balance within t~if <rt:,:~ke governance more directly responsive and
territorial jurisdiction, subject to the provisions of effective at the local levels (Pimentel, Jr. v. Ochoa,
this ·code and national policies; G.R. No. 195770, July 17, 2012).
10. Effective mechanisms for _ensuring the
accountability of local government units to their Concept of Association Unconstitutional .
respective constituents shall be strengthened in The international law concept of associative
order to .upgrade continually the quality of local relationship or association is formed when two states
leadership; of unequal power voluntarily establish durable links.
11. The realization of local autonomy shall be In the basic model, one state, the associate,
facilitated through improved coordination of delegates certain responsibilities to the other, the
national government policies and programs an principal, while maintaining its international status as
extension of adequate technical and material a state. Free associations represent a middle ground
assistance to less developed and deserving between integration and independence.
LGUs; .
12. The participation of the private sector in local T:he concept of association is not recognized under
governance, particularly in the delivery of basic the 1987 Constitution. No province, city, or
services, shall be encouraged to ensure the municipality, not even the ARMM, is recognized
viability of local autonomy as an alternative under our laws as having! an associative relationship
strategy for sustainable development; and, with the national government. It also implies the
13. The national government shall ensure that recognition of the associated entity as a state.
decentralization contributes to the continuing (Province of North Cotabato v. Government of the -

2018 SAN SEDA CENTRALIZED BAR OPERATIONS I 257