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    Greater Balanga Development Corporation v. Municipalityof Balanga, Bataan (1998)

    Facts

    The case involves a parcel of land, Lot 261-B-6-A-3

    located behind the public market in the Municipalit ofBalan!a, "rovince of Bataan# $t is re!istered in the nameof %reater Balan!a &evelopment, 'orp#, o(ned andcontrolled b the 'amacho famil# The lot (as part of Lot261-B, formerl re!istered in the name of Aurora Ban)on'amacho, (hich (as later subdivided into certain lots,some of (hich (ere sold, others donated# *ive buers ofthe lot filed a civil case a!ainst 'amacho for partition anddeliver of titles#

    "etitioner applied for and (as !ranted a business

    permit b the +ffice of the Maor of Balan!a but failed tomention the eistence of the civil case for partition anddeliver of titles# The permit (as !ranted the privile!e ofa real estate dealer.privatel-o(ned market operator#/0o(ever, the an!!unian! Baan B passed 4esolution5o# 12 s-, annullin! the Maor7s permit issued to"etitioner, on the !round that the issue as to theo(nership of the lot caused aniet, uncertaint andrestiveness amon! the stallholders and traders in the lot,/and advisin! the Maor to revoke the permit to operate a

    public market#/ The Maor then revoked the permitthrou!h 8+ 5o# 1 s-#

    "etitioner filed this petition (ith praer for

    preliminar prohibitor and mandator in9unction orrestrainin! order and to reinstate the Maor7s permit andto curtail the municipalit7s collection of market andentrance fees from the lot occupants# 0e alle!es that: 1it didn7t violate an la(, thus, there7s no reason forrevocation of the permit; 2 4espondents failed to observedue process in the revocation; 3 the collection of marketfees is ille!al#

    +n the other hand, 4espondents assert that the Maor

    as the local chief eecutive has the po(er to issue, denor revoke permits# The claim that the revocation (as due

    to the violation b "etitioner of ection 3A-uries the applicant to state the tpe of business,profession, occupation, privile!es applied for#/"etitioner left this entr bank in its applicationform# $t is onl in the Maor7s permit itself thatpetitioner7s lines of business appear# 4evocation isnot 9ustified because "etitioner did not make anfalse statement therein#

    5either (as petitioner7s applin! for t(o

    businesses in one permit a !round for revocation#

    The second para!raph of ection 3A-uire t(o permits for their conduct oft(o or more businesses in one place, but onl thatseparate fees be paid for each business# %rantin!,ho(ever, that separate permits are actuallre>uired, the application form does not contain anentr as re!ards the number of businesses theapplicant (ishes to en!a!e in#

    The B7s 4esolution merel mentioned the plan to

    ac>uire the Lot for epansion of the Balan!a "ublicMarket ad9acent thereto# The B doesn7t actuallmaintain a public market on the area# ?ntil

    epropriation proceedin!s are instituted in court, thelando(ner cannot be deprived of its ri!ht over the land#

    +f course, the B has the dut in the eercise of its

    police po(ers to re!ulate an business sub9ect tomunicipal license fees and prescribe the conditionsunder (hich a municipal license alread issued ma berevoked B#"# Bl!# 33@, ec# 1 C1D CrD, but the Eaniet,uncertaint, restivenessE amon! the stallholders andtraders doin! business on a propert not o(ned b theMunicipalit cannot be a valid !round for revokin! thepermit of "etitioner#

    Also, the manner b (hich the Maor revoked the

    permit trans!ressed petitioner7s ri!ht to due process#The alle!ed violation of ection 3A-

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    !//0 23et3er or not %4 59, 63ic3 isentitle# 74n 4ct Creating t3e Municipalityof Dianaton in t3e rovince of $anao #el/ur7, +ut 63ic3 inclu#es +arrios locate# inanot3er province Cota+ato isunconstitutional for em+racing more t3anone su+:ect in t3e title

    G8# 4A @< is null and void

    1# The constitutional provision contains duallimitations upon le!islative po(er# First#'on!ress is to refrain from con!lomeration,under one statute, of hetero!eneoussub9ects# Second# The title of the bill is tobe couched in a lan!ua!e sufficient to notifthe le!islators and the public and thoseconcerned of the import of the sin!le

    sub9ect thereof# +f relevance here is thesecond directive# The sub9ect of the statutemust be Eepressed in the titleE of the bill#This constitutional re>uirement Ebreathesthe spirit of command#E 'ompliance isimperative, !iven the fact that the'onstitution does not eact of 'on!ress theobli!ation to read durin! its deliberationsthe entire tet of the bill# $n fact, in thecase of 0ouse Bill 12@, (hich became 4A@uences of theproposed la( and its operation# And this, tolead them to in>uire into the bod of thebill, stud and discuss the same, takeappropriate action thereon, and, thus,prevent surprise or fraud upon thele!islators#

    3# The test of the sufficienc of a title is(hether or not it is misleadin!; and, (hichtechnical accurac is not essential, and thesub9ect need not be stated in epress terms(here it is clearl inferable from the detailsset forth, a title (hich is so uncertain thatthe avera!e person readin! it (ould not beinformed of the purpose of the enactmentor put on in>uir as to its contents, or (hich

    is misleadin!, either in referrin! to orindicatin! one sub9ect (here another ordifferent one is reall embraced in the act,or in omittin! an epression or indicationof the real sub9ect or scope of the act, isbad#

    # The title H EAn Act 'reatin! the Municipalitof &ianaton, in the Province of Lanao delSurE H pro9ects the impression that onl theprovince of Lanao del ur is affected b thecreation of &ianaton# 5ot the sli!htestintimation is there that communities in thead9acent province of 'otabato areincorporated in this ne( Lanao del urto(n# The phrase Ein the "rovince of Lanaodel ur,E read (ithout subtlet orcontortion, makes the title misleadin!,

    deceptive# *or, the kno(n fact is that thele!islation has a t(o-pron!ed purposecombined in one statute: 1 it creates themunicipalit of &ianaton purportedl fromt(ent-one barrios in the to(ns of Buti! andBalaba!an, both in the province of Lanaodel ur; and 2 it also dismembers t(omunicipalities in 'otabato, a provincedifferent from Lanao del ur#

    I# *inall, the title did not inform themembers of 'on!ress the full impact of thela(# +ne, it did not apprise the people inthe to(ns of Buldon and "aran! in 'otabatoand in the province of 'otabato itself thatpart of their territor is bein! taken a(afrom their to(ns and province and added tothe ad9acent "rovince of Lanao del ur# T(o,it kept the public in the dark as to (hatto(ns and provinces (ere actuall affectedb the bill#

    MMD4 v Bel'4ir

    ;illage

    4ssociation, !nc."osted on &ovem+er 18, 1

    G% 1

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    Falaaan Avenue (ould be demolished#

    4espondent instituted a petition for in9unction

    a!ainst petitioner, prain! for the issuance of a

    T4+ and preliminar in9unction en9oinin! the

    openin! of 5eptune treet and prohibitin! the

    demolition of the perimeter (all#

    !//0:

    =+5 MM&A has the authorit to open 5eptune

    treet to public traffic as an a!ent of the state

    endo(ed (ith police po(er#

    "$D:

    A Klocal !overnment is a political subdivision

    of a nation or state (hich is constituted b la(

    and has substantial control of local affairs/# $t is

    a bod politic and corporate/ one endo(ed(ith po(ers as a political subdivision of the

    5ational %overnment and as a corporate entit

    representin! the inhabitants of its territor

    L%' of 11#

    Our Congress delegated police power to the

    LGUs in Sec.16 of the LGC of 1991# $t

    empo(ers the san!!unian! panlala(i!an,

    panlun!sod and baan to enact or#inances,

    approve resolutions an# appropriate fun#s for

    t3e general 6elfare of t3e >province, city or

    municipality? an# its in3a+itantspursuant

    to ec#16 of the 'ode and in the proper eercise

    of the CL%?s corporate po(ersD provided under

    the 'ode#/

    There is no sllable in !" #$%& that grants the

    ''(" police power, let alone legislative power)

    Unli*e the legislative bodies of the LGUs+ there

    is no grant of authorit in !" #$%& that allows

    the ''(" to enact ordinances and regulations

    for the general welfare of the inhabitants of

    'etro 'anila) The ''(" is merel a

    ,development authorit-and not a political

    unit of governmentsince it is neither an L%? or

    a public corporation endo(ed (ith le!islative

    po(er# The ''(" Chairman is not an electiveofficial, but is merel appointed b the

    "resident (ith the rank and privile!es of a

    cabinet member#

    $n sum, the ''(" has no power to enact

    ordinances for the welfare of the communit# !t

    is t3e $G0s, actin! throu!h their respective

    le!islative councils, t3at possess legislative

    po6er an# police po6er#

    The an!!unian! "anlun!sod of Makati 'it did

    not pass an ordinance or resolution orderin!

    the openin! of 5eptune treet, hence, its

    proposed openin! b the MM&A is ille!al#

    ./ SC!" /0$ 1 Political Law 1 Sufficient

    Standard 2est and Completeness 2est

    $n 16, "resident *erdinand Marcos issued

    eecutive orders creatin! 33 municipalities

    this (as purportedl pursuant to ection 6 of

    the 4evised Administrative 'ode (hich provides

    in part:

    2he President ma b e3ecutive order definethe boundar4 of an4 municipalit4 and ma

    change the seat of government within an

    subdivision to such place therein as the public

    welfare ma re5uire4

    The then Nice "resident, 8mmanuel "elae),

    as a tapaer, filed a special civil action to

    prohibit the auditor !eneral from disbursin!

    funds to be appropriated for the said

    municipalities# "elae) claims that the 8+s (ereunconstitutional# 0e said that ection 6 of the

    4A' had been impliedl repealed b ection 3 of

    4A 23@< (hich provides that barrios ma not

    be created or their boundaries altered nor their

    names chan!ed/ ecept b Act of 'on!ress#

    "elae) ar!ues: $f the "resident, under this ne(

    la(, cannot even create a barrio, ho( can he

    create a municipalit (hich is composed of

    several barrios, since barrios are units ofmunicipalitiesO/

    The Auditor %eneral countered that there (as

    no repeal and that onl barrios (ere barred

    from bein! created b the "resident#

    Municipalities are eempt from the bar and that

    a municipalit can be created (ithout creatin!

    barrios# 0e further maintains that throu!h ec#

    6 of the 4A', 'on!ress has dele!ated such

    po(er to create municipalities to the "resident#

    !//0 =hether or not 'on!ress has dele!ated

    the po(er to create barrios to the "resident b

    virtue of ec# 6 of the 4A'#

    "$D 5o# There (as no dele!ation

    here# Althou!h 'on!ress ma dele!ate to

    another branch of the !overnment the po(er to

    fill in the details in the eecution, enforcement

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    or administration of a la(, it is essential, to

    forestall a violation of the principle of

    separation of po(ers, that said la(: a be

    complete in itself H it must set forth therein

    the polic to be eecuted, carried out or

    implemented b the dele!ate H and b fi a

    standard H the limits of (hich are sufficientl

    determinate or determinable H to (hich the

    dele!ate must conform in the performance of

    his functions# $n this case, ec# 6 lacked an

    such standard# $ndeed, (ithout a statutor

    declaration of polic, the dele!ate (ould, in

    effect, make or formulate such polic, (hich is

    the essence of ever la(; and, (ithout the

    aforementioned standard, there (ould be no

    means to determine, (ith reasonable certaint,

    (hether the dele!ate has acted (ithin or

    beond the scope of his authorit#

    *urther, althou!h ec# 6 provides the >ualifin!

    clause as the public (elfare ma re>uire/

    (hich (ould mean that the "resident ma

    eercise such po(er as the public (elfare ma

    re>uire is present, still, such (ill not replace

    the standard needed for a proper dele!ation of

    po(er# $n the first place, (hat the phrase as

    the public (elfare ma re>uire/ >ualifies is the

    tet (hich immediatel precedes hence, the

    proper interpretation is the "resident ma

    chan!e the seat of !overnment (ithin an

    subdivision to such place therein as the public

    (elfare ma re>uire#/ +nl the seat of

    !overnment ma be chan!ed b the "resident

    (hen public (elfare so re>uires and 5+T the

    creation of municipalit#

    The upreme 'ourt declared that the po(er to

    create municipalities is essentiall and

    eminentl le!islative in character not

    administrative not eecutive#

    rovince of

    Batangas

    vs. %omulo"osted on &ovem+er , 1

    G% 15

    May , 5

    F4C=/:

    $n 1, then "resident 8strada issued 8+ 5o#

    establishin! the "ro!ram for &evolution

    Ad9ustment and 8>uali)ation/ to enhance the

    capabilities of L%?s in the dischar!e of the

    functions and services devolved to them throu!h

    the L%'#

    The +versi!ht 'ommittee under 8ecutive

    ecretar 4onaldo Pamora passed 4esolutions

    5o# +'&--uali)ation *und L%8* Q imposed

    conditions for the release thereof#

    !//0:

    =hether the assailed provisos in the %AAs of

    1, 2

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    thepower of control# Drilon v.

    $imdistin!uishes supervision from

    control: controllas down the rules in the

    doing of an act the officer has the discretion

    to order his subordinate to do or redo the act+

    or decide to do it

    himself; supervisionmerel sees to it that the

    rules are followedbut has no authorit to set

    down the rules or the discretion to

    modif7replace them#

    The entire process involvin! the distribution Q

    release of the L%8* is constitutionall

    impermissible# The L%8* is part of the $4A or

    9ust share/ of the L%?s in the national

    taes# /ec.-, 4rt.A of t3eConstitutionmandates that the :ust

    s3areshall beautomaticall released to the

    LGUs# ince the release is automatic, the LGUs

    aren6t re5uired to perform an act to receive

    the ,just share- it shall be releasedto them

    without need of further action# To sub9ect its

    distribution Q release to the va!aries of the

    implementin! rules Q re!ulations as sanctioned

    b the assailed provisos in the %AAs of 1-

    2uested the &irector of &BM to endorse theappointment of Ms# antos to the position of "B+# &BM4e!ional &irector found 'ecilia Alma9ose, amon! thenominees of the petitioner to be the most >ualified andrecommended to the &BM ecretar the appointment ofAlma9ose as "B+ of 4i)al, (hich the &BM ?ec si!ned theappointment papers of Alma9ose as "B+#

    ?pon learnin! of Alma9oses appointment, petitioner (rote&BM ec protestin! a!ainst the said appointment on the!rounds that the &BM ?sec is not le!all authori)ed toappoint the "B+, that Alma9ose lacks the re>uired 3 rs (orkseperience as provided in Local Bud!et 'ircular 5o# 31, andthat under 8+ 5o# 112, it is the "rovincial %overnor, not the4e!ional &irector or a 'on!ressman, (ho has the po(er torecommend nominees for the position of "B+#

    $?8:=hether or not the &BM has the po(er to appoint the "B+(ithout violatin! the principle of Local Autonom#

    4?L$5%:=e have to obe the clear mandate on local autonom# =herea la( is capable of t(o interpretations, one in favor ofcentrali)ed po(er in MalacaSan! and the other beneficial tolocal autonom, the scales must be (ei!hed in favor ofautonom#

    The 13I 'onstitution had no specific article on localautonom but distin!uished presidential control tosupervision:EThe "resident shall have control of all the eecutivedepartments, bureaus, or offices, eercise !eneralsupervision over all local !overnments as ma be provided bla(, and take care that the la(s be faithfull eecuted# ec#11, Article N$$, 13I 'onstitutionE

    The "resident controls the eecutive departments# 0e has nosuch po(er over local !overnments# 0e has onl supervisionand that supervision is both !eneral and circumscribed bstatute#

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    Article $$, # 2I, 1@ 'onstitution states:Eec# 2I# The tate shall ensure the autonom of local!overnments#E

    The 1 sections in Article , on Local %overnment not onlreiterate earlier doctrines but !ive in !reater detail theprovisions makin! local autonom more meanin!ful#Eec# 2# The territorial and political subdivisions shall en9olocal autonom#

    Eec# 3# The 'on!ress shall enact a local !overnment code(hich shall provide for a more responsive and accountablelocal !overnment structure instituted throu!h a sstem ofdecentrali)ation (ith effective mechanisms of recall,initiative, and referendum, allocate amon! the different local!overnment units their po(ers, responsibilities, andresources, and provide for the >ualifications, election,appointment and removal, term, salaries, po(ers andfunctions and duties of local officials, and all other mattersrelatin! to the or!ani)ation and operation of the local units#E

    The ri!ht !iven b Local Bud!et 'ircular 5o# 31 (hich states:ec# 6#< H The &BM reserves the ri!ht to fill up an eistin!vacanc (here none of the nominees of the local chief

    eecutive meet the prescribed re>uirements#

    is ultra vires and is, accordin!l, set aside# The &BM maappoint onl from the list of >ualified recommendeesnominated b the %overnor# $f none is >ualified, he mustreturn the list of nominees to the %overnor eplainin! (h noone meets the le!al re>uirements and ask for ne(recommendees (ho have the necessar eli!ibilities and>ualifications#

    Tano vs ocrates9atural and :nvironmental Laws; Constitutional

    Law; !egalian (octrine%4 5o# 11uaticor!anisms for I ears, in and comin! from"ala(an (aters#"etitioners filed a special civil action forcertiorari and prohibition, prain! that thecourt declare the said ordinances andresolutions as unconstitutional on the !roundthat the said ordinances deprived them of thedue process of la(, their livelihood, and undul

    restricted them from the practice of theirtrade, in violation of ection 2, Article $$ andections 2 and @ of Article $$$ of the 1@'onstitution#

    !//0:Are the challen!ed ordinances unconstitutionalO

    "$D:5o# The upreme 'ourt found the petitionerscontentions baseless and held that the

    challen!ed ordinances did not suffer from aninfirmit, both under the 'onstitution andapplicable la(s# There is absolutel no sho(in!that an of the petitioners >ualifies as asubsistence or mar!inal fisherman# Besides,ection 2 of Article $$ aims primaril not tobesto( an ri!ht to subsistence fishermen, butto la stress on the dut of the tate to protect

    the nations marine (ealth# The so-calledpreferential ri!ht/ of subsistence or mar!inalfishermen to the use of marine resources is notat all absolute#$n accordance (ith the 4e!alian &octrine,marine resources belon! to the state andpursuant to the first para!raph of ection 2,Article $$ of the 'onstitution, theireploration, development andutili)ation###shall be under the full control andsupervision of the tate#

    $n addition, one of the devolved po(ers of theL'% on devolution is the enforcement of fisherla(s in municipal (aters includin! theconservation of man!roves# This necessarilincludes the enactment of ordinances toeffectivel carr out such fisher la(s (ithinthe municipal (aters# $n li!ht of the principlesof decentrali)ation and devolution enshrined inthe L%' and the po(ers !ranted therein to L%?s(hich un>uestionabl involve the eercise ofpolice po(er, the validit of the >uestioned

    ordinances cannot be doubted#

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    %#4# 5o# 16 Ma 1, 11Basco vs# "A%'+4

    0#B# Basco Q Associates for petitioners Nalmonte

    La( +ffices collaboratin! counsel for

    petitionersA!uirre, Laborte and 'apule forrespondent "A%'+4

    *acts:

    UThe "hilippine Amusements and %amin!

    'orporation "A%'+4 (as created b virtue of

    "# 1ual "rotection 'lause

    Municipal 'orporation Local Autonom

    $mperium in $mperio

    $n 1@@, the "hilippine Amusements and %amin!

    'orporation "A%'+4 (as created b "residential

    &ecree 1ual protection clause

    and b it violates the local autonom clause of theconstitution#

    Basco et al ar!ued that "& 16 violates the e>ual

    protection clause because it le!ali)es "A%'+4-

    conducted !amblin!, (hile most other forms of

    !amblin! are outla(ed, to!ether (ith

    prostitution, dru! traffickin! and other vices#

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    Anent the issue of local autonom, Basco et al

    contend that "# 16 forced cities like Manila to

    (aive its ri!ht to impose taes and le!al fees as

    far as "A%'+4 is concerned; that ection 13 par#

    2 of "# 16 (hich eempts "A%'+4, as the

    franchise holder from pain! an ta of an kind

    or form, income or other(ise, as (ell as fees,

    char!es or levies of (hatever nature, (hether

    5ational or Local/ is violative of the local

    autonom principle#

    $?8:

    1# =hether or not "& 16 violates the e>ual

    protection clause#

    2# =hether or not "& 16 violates the local

    autonom clause#

    08L&:

    1# 5o# Just ho( "& 16 in le!ali)in! !amblin!

    conducted b "A%'+4 is violative of the e>ual

    protection is not clearl eplained in Bascos

    petition# The mere fact that some !amblin!

    activities like cockfi!htin! "& horse racin!

    4A 3ual protection of the

    la(s#/ The clause does not preclude classification

    of individuals (ho ma be accorded different

    treatment under the la( as lon! as theclassification is not unreasonable or arbitrar# A

    la( does not have to operate in e>ual force on all

    persons or thin!s to be conformable to Article $$$,

    ec 1 of the 'onstitution# The e>ual protection

    clause/ does not prohibit the Le!islature from

    establishin! classes of individuals or ob9ects upon

    (hich different rules shall operate# The

    'onstitution does not re>uire situations (hich are

    different in fact or opinion to be treated in la( as

    thou!h the (ere the same#

    2# 5o# ection I, Article 1< of the 1@

    'onstitution provides:

    :ach local government unit shall have the power

    to create its own source of revenue and to lev

    ta3es+ fees+ and other charges subject to such

    guidelines and limitation as the congress ma

    provide+ consistent with the basic polic on local

    autonom) Such ta3es+ fees and charges shall

    accrue e3clusivel to the local government)

    A close readin! of the above provision does not

    violate local autonom particularl on tain!

    po(ers as it (as clearl stated that the tain!

    po(er of L%?s are sub9ect to such !uidelines and

    limitation as 'on!ress ma provide#

    *urther, the 'it of Manila, bein! a mere

    Municipal corporation has no inherent ri!ht to

    impose taes# The 'harter of the 'it of Manila is

    sub9ect to control b 'on!ress# $t should be

    stressed that municipal corporations are mere

    creatures of 'on!ress/ (hich has the po(er to

    create and abolish municipal corporations/ due

    to its !eneral le!islative po(ers/# 'on!ress,

    therefore, has the po(er of control over Local

    !overnments# And if 'on!ress can !rant the 'it of

    Manila the po(er to ta certain matters, it can

    also provide for eemptions or even take back the

    po(er#

    *urther still, local !overnments have no po(er to

    ta instrumentalities of the 5ational %overnment#

    "A%'+4 is a !overnment o(ned or controlled

    corporation (ith an ori!inal charter, "& 16# All

    of its shares of stocks are o(ned b the 5ational

    %overnment# +ther(ise, its operation mi!ht be

    burdened, impeded or sub9ected to control b amere Local !overnment#

    This doctrine emanates from the supremac/ of

    the 5ational %overnment over local !overnments#

    %

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    "$D Ges# %an)on is under the impression that the

    'onstitution has left the "resident mere supervisor

    po(ers, (hich supposedl ecludes the po(er of

    investi!ation, and denied her control, (hich alle!edl

    embraces disciplinar authorit# $t is a mistaken

    impression because le!all, supervision/ is not

    incompatible (ith disciplinar authorit#

    The ' had occasion to discuss the scope and etent of

    the po(er of supervision b the "resident over local

    !overnment officials in contrast to the po(er of control

    !iven to him over eecutive officials of our !overnment

    (herein it (as emphasi)ed that the t(o terms, control

    and supervision, are t(o different thin!s (hich differ one

    from the other in meanin! and etent# $n administration

    la( supervision means overseein! or the po(er or

    authorit of an officer to see that subordinate officers

    perform their duties# $f the latter fail or ne!lect to fulfill

    them the former ma take such action or step as

    prescribed b la( to make them perform their duties#

    'ontrol, on the other hand, means the po(er of an officer

    to alter or modif or nullif of set aside (hat a

    subordinate officer had done in the performance of his

    duties and to substitute the 9ud!ment of the former for

    that of the latter#/ But from this pronouncement it cannot

    be reasonabl inferred that the po(er of supervision of

    the "resident over local !overnment officials does not

    include the po(er of investi!ation (hen in his opinion the

    !ood of the public service so re>uires#

    The ecretar of Local %overnment, as the alter e!o of

    the president, in suspendin! %an)on is eercisin! a valid

    po(er# 0e ho(ever overstepped b imposin! a 6