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Transcript of PUBCORP_MEETING1
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Sections 1 to 10 of the Local Government Code
Note: You may use any book for the subject
Cases:
Torralba vs. Sibagat, 147 SCRA 390
City of Pasig vs. Comelec, 314 SCRA 179
Sarangani vs. Comelec, 334 SCRA 379
Padilla vs. Comelec, 214 SCRA 735
Tobias vs. Abalos, 238 SCRA 106
TORRALBA V. MUN. OF SIBAGAT (1987)
Facts:
BP 56, creating the Municipality of Sibagat, Province of Agusan del Sur, is being challenged as violative of
Section 3 Article XI of the 1973 Constitution2. Petitioners are residents and taxpayers of Butuan City,
with petitioner, Clementino Torralba, being a member of the Sangguniang Panglunsod of the same City.
Respondent municipal officers are the local public officials of the new Municipality.
According to the petitioners, the Local Government Code must first be enacted to determine the criteria
for the creation, division, merger, abolition, or substantial alteration of the boundary of any province,
city, municipality, or barrio; and that since no Local Government Code had as yet been enacted as of the
date BP 56 was passed, that statute could not have possibly complied with any criteria when respondent
Municipality was created, hence, it is null and void.
Issue:
WON BP 56 is invalid
Held:
No Ratio: The absence of the Local Government Code at the time of its enactment did not curtail norwas it intended to cripple legislative competence to create municipal corporations. Section 3, Article XI
of the 1973 Constitution does not proscribe nor prohibit the modification of territorial and political
subdivisions before the enactment of the LGC. It contains no requirement that the LGC a condition sine
quanon for the creation of a municipality, in much the same way that the creation of a new municipality
does not preclude the enactment of a LGC. What the Constitutional provision means is that once said
Code is enacted, the creation, modification or dissolution of local government units should conform with
the criteria thus laid down. In the interregnum, before the enactment of such Code, the legislative
power remains plenary except that the creation of the new local government unit should be approved
by the people concerned in a plebiscite called for the purpose. The creation of the new Municipality of
Sibagat conformed to said requisite. A plebiscite was conducted and the people of the unit/units
affected endorsed and approved the creation of the new local government unit. The officials of the
new Municipality have effectively taken their oaths of office and are performing their functions. A de
jure entity has thus been created. It is a long-recognized principle that the power to create a municipal
corporation is essentially legislative in nature. In the absence of any constitutional limitations, a
legislative body may create any corporation it deems essential for the more efficient administration of
government.The creation of the new Municipality of Sibagat was a valid exercise of legislative power
then vested by the 1973 Constitution in the Interim Batasang Pambansa. There are significant
differences, however, in Tan vs Comelec and in this case: in the Tan case, the LGC already existed at the
time that the challenged statute was enacted on 3 December 1985; not so in the case at bar. Secondly,
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BP 885 in the Tan case confined the plebiscite to the "proposed new province" to the exclusion of the
voters in the remaining areas, in contravention of the Constitutional mandate and of the LGC that the
plebiscite should be held "in the unit or units affected." In contrast, BP 56 specifically provides for a
plebiscite "in the area or areas affected." Thirdly, in the Tan case, even the requisite area for the
creation of a new province was not complied with in BP Blg. 885. No such issue in the creation of the
new municipality has been raised here. And lastly, "indecent haste" attended the enactment of BP Blg.
885 and the holding of the plebiscite thereafter in the Tan case; on the other hand, BP 56 creating the
Municipality of Sibagat, was enacted in the normal course of legislation, and the plebiscite was held
within the period specified in that law.
Footnote 2 "Sec. 3. No province, city, municipality, or barrio may be created, divided, merged, abolished,
or its boundary sub- stantially altered, except in accordance with the criteria es- tablished in the Local
Government Code, and subject to the approval by a majority of the votes cast in a plebiscite in the unit
or units affected."
Pasig v COMELEC
Facts:
On April 22, 1996, upon petition of the residents of Karangalan Village that they be segregated from its
mother Barangays Manggahan and Dela Paz, City of Pasig, and to be converted and separated into a
distinct barangay to be known as Barangay Karangalan, the City Council of Pasig passed and approved
Ordinance No. 21, Series of 1996, creating Barangay Karangalan in Pasig City.[1] Plebiscite on the
creation of said barangay was thereafter set for June 22, 1996. Meanwhile, on September 9, 1996, the
City of Pasig similarly issued Ordinance No. 52, Series of 1996, creating Barangay Napico in Pasig
City.[2] Plebiscite for this purpose was set for March 15, 1997. Immediately upon learning of such
Ordinances, the Municipality of Cainta moved to suspend or cancel the respective plebiscites scheduled,
and filed Petitions with the Commission on Elections (hereinafter referred to as COMELEC) on June 19,
1996 (UND No. 96-016)[3] and March 12, 1997 (UND No. 97-002), respectively. In both Petitions, the
Municipality of Cainta called the attention of the COMELEC to a pending case before the Regional Trial
Court of Antipolo, Rizal, Branch 74, for settlement of boundary dispute.[4] According to the Municipalityof Cainta, the proposed barangays involve areas included in the boundary dispute subject of said
pending case; hence, the scheduled plebiscites should be suspended or cancelled until after the said
case shall have been finally decided by the court. In UND No. 96-016, the COMELEC accepted the
position of the Municipality of Cainta and ordered the plebiscite on the creation of Barangay Karangalan
to be held in abeyance until after the court has settled with finality the boundary dispute involving the
two municipalities.[5] Hence, the filing of G.R. No. 125646 by the City of Pasig. The COMELEC, however,
ruled differently in UND No. 97-002, dismissing the Petition for being moot in view of the holding of the
plebiscite as scheduled on March 15, 1997 where the creation of Barangay Napico was ratified and
approved by the majority of the votes cast therein.[6] Hence, the filing of G.R. No. 128663 by the
Municipality of Cainta.
Issue:
Whether or not the plebiscites scheduled for the creation of Barangays Karangalan and Napico should
be suspended or cancelled in view of the pending boundary dispute between the two local
governments.
Held:
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A requisite for the creation of a barangay is for its territorial jurisdiction to be properly identified by
metes and bounds or by more or less permanent natural boundaries. Precisely because territorial
jurisdiction is an issue raised in the pending civil case, until and unless such issue is resolved with finality,
to define the territorial jurisdiction of the proposed barangays would only be an exercise in futility. The
Court also would be paving the way for potentially ultra vires acts of such barangays. Furthermore, the
Court did not agree that merely because a plebiscite had already been held in the case of the proposed
Barangay Napico, the petition of the Municipality of Cainta has already been rendered moot and
academic. The Supreme Court, therefore, ruled that the plebiscite on the creation of Barangay
Karangalan should be held in abeyance pending final resolution of the boundary dispute between the
City of Pasig and Municipality of Cainta by the RTC of Antipolo City. In the same vein, the plebiscite held
to ratify the creation of Barangay Napico, Pasig City, should be annulled and set aside.
Saranggani v COMELEC
Facts:
On September 15, 1997, a petition for annulment of several precincts and annulment of book of voters
in Madalum, Lanao Del Sur was filed with the COMELEC by, among others, Hadji Oblais R. Omar thru
counsel Atty. Nasib D. Yasin, herein private respondents. Among the precincts sought to be annulled was
Padian Torogan, subject matter of the present petition for certiorari. On September 18, 1997, the
COMELEC, thru the Clerk of the Commission sent telegrams to the respective Board of Election
Inspectors (BEI) of the questioned precincts in Madalum, Lanao Del Sur, including Padian Torogan, to file
their answer to the petition for abolition of precincts and annulment of book of voters. On October 31,
1997, the incumbent mayor of Madalum, Lanao Del Sur, Usman T. Sarangani, herein petitioner, together
with other oppositors who were allegedly barangay chairmen of the twenty- three (23) barangays the
"Books of Voters" and precincts of which were sought to be annulled and abolished, respectively, filed
an "Answer in Opposition" which included the affidavits of the barangay chairmen of the affected
precincts attesting to the fact that the move to annul the book of voters and abolish the questioned
election precincts were for the purpose of diminishing the bailiwicks of the incumbent mayor of
Madalum, Lanao del Sur. After hearing and submission of formal offer of exhibits and memoranda bythe parties, the COMELEC issued an Order dated February 11, 1998, referring the case to its Law
Department for appropriate investigation. The COMELEC - Law Department conformably issued a
memorandum dated April 29, 1998 directing Atty. Muslemin Tahir, the Provincial Election Supervisor of
Marawi City, Lanao del Sur "to conduct a rigorous incisive investigation on the alleged ghost precincts
and thereafter submit a report on the investigation conducted." Consequently, Atty. Tahir created a
TASK FORCE INVESTIGATION TEAM by virtue of a memorandum dated June 13, 1998 directing Election
Officers Casan Macadato, Sacrain Guro and Anuar Datudacula "to conduct ocular inspection on the
alleged twelve (12) ghost barangays in the Municipality of Madalum, Lanao Del Sur."
On June 18, 1998, an ocular inspection was conducted on the alleged ghost precincts yielding the
following results –
"At 12:10 pm, the Task Force Investigation Team from the COMELEC accompanied by traditional leaders,
political leaders, many concerned residents of this town, a representative from the Lanao del Sur
Provincial Statistics Office, Mr. Lacson Abdullah, and a Team from the DILG-ARMM, Lanao del Sur,
arrived in the area supposedly Barangay Padian Torogan with these comments and observations:
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"It appears that in this area there are only two structures: One is a concrete house with no roof, and the
other is a wooden structure without walls and roof. This obviously mean that no single human being
could possibly reside in these two structures.
"Also, it came out that the name Padian-Torogan means a cemetery not a residential place. So this
contradicts the records being brought by the COMELEC Team from the Census saying that the area has
45 households with a total population of 285. (Ref. Municipal census Report as of September 1, 1995).
"Besides, no less than the Chairman of the COMELEC Investigating Team asked the people around who
among them is a resident or a registered voter in the so-called Barangay Padian-Torogan, and no one
answered affirmatively.
"Then at 12:50 PM, the COMELEC Investigating Team still with the people mentioned above are in
Barangay Lumbac to look for the other supposed Barangay named Rakutan, and found this observations.
x x x.....x x x.....x x x
"By the way, unfortunately, at the peak of this ocular inspection, the Madalum Municipal Chief of Police
Mahdi Mindalano, armed with UZI pistolized Machine Gun, arrived at the scene at exactly 12:55 pmboarding an orange Mitsubishi car with four armed bodyguards, the (sic) confronted the Team Leader of
the COMELEC Investigating Group and angrily insisted to stop the ocular inspection.
"This STACOM Mindalano, in warning a photographer not to take a shot on him, pointed his pistolized
Rifle to this man when the photographer positioned his camera to take a picture of him while he is
arguing with the investigating leader, Mr. CASAN MACADATO.
"Moving camera film and several pictures are added hereto for further information and as exhibits. Also
attached hereof are the names and signatures of among the more-or-less one hundred people who
observed the conduct of this ocular inspection.
(NOTE: This writer, Mr. Khalil Y. Alawi, is a member of the five (5) man Committee from the DILG-ARMM,Lanao del Sur created in respect to the Memo/Invitation from the COMELEC Provincial Office of Lanao
del Sur dated June 15, 1998 signed by Mr. CASAN MACADATO, EO II, Chief Investigation Team. Mr.
Macadato designated verbally and in public Mr. ALAWI to be his Secretary during this investigation, and
of course, the (sic) with the consent of the DILG Team).
"I hereby certify that the foregoing are true and correct to the best of my knowledge.
Prepared by: (sgd) Khalil Y. Alawi
Member, DILG Team
Submitted by: (sgd) Casan Macadato
Election Officer II
Chairman, Task Force Investigation Team"
On the basis of the foregoing, Election Officer Casan Macadato submitted to the Provincial Election
Supervisor of COMELEC in Marawi City its 1st Indorsement dated June 19, 1998 reporting the results of
the ocular inspection that Padian Torogan and Rakutan were uninhabited.
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On June 29, 1998, the COMELEC issued the assailed Order finding "Padian Torogan as ghost precinct."
The dispositive portion of the COMELEC Order reads:
"ACCORDINGLY, the Commission En Banc:
(1) resolves to GRANT the request and hereby:
(a).....DIRECTS the Task Force Investigating Team created pursuant to the Order of the Commission en
banc dated February 11, 1998, to continue the conduct of ocular inspection and investigation as
contained in the original directive of the Law Department dated April 29, 1998;
(b).....RECOMMENDS to the PNP Director and the Regional Director of the Philippine National police, (1)
to immediately relieve and transfer Chief of Police Mahdi Mindalano of Madalum, Lanao del Sur and
transfer him to an area where it will be extremely difficult for him to return to Mandalum and do further
damage to effort of the Commission to investigate ghost precincts in said area considering the urgency
of said investigation. (2) to look into the possibility of involvement of other policement (sic) in Madalum
in the aforestated criminal mischief of the Police Station Commander or their possible partisanship.
(c).....RECOMMENDS to AFP Regional Command, Armed Forces of the Philippines, to immediately assignsufficient number of men to maintain peace and order in the Municipality of Madalum, Lanao del Sur,
and to escort and secure the safety of the COMELEC Investigating Team during the conduct of ocular
inspections and investigations.
(2) finds Padian Torogan as ghost precinct and shall be excluded from the special election to be
conducted in Madalum.
(3) Order the Investigating Team, thru Macadatu, to immediately resume the investigation, the
remaining ghost precincts in Madalum and to submit its findings to the Commission with dispatch,
allowing it to submit partial findings if necessary.
The Law Department of this Commission is hereby directed to implement this order.
SO ORDERED." (emphasis supplied)
On November 3, 1998, Sultan Usman Sarangani, Soraida M. Sarangani and Hadji Nor Hassan, in their
respective capacity as former Municipal Mayor, incumbent Mayor and Vice-Mayor of Madalum filed the
instant petition for certiorari and mandamus urging us to nullify the Order issued by the COMELEC, for
having been issued with grave abuse of discretion. Likewise, petitioners moved to consolidate this case
with G.R. No. 134456 entitled "Sultan Sarangani, et. al vs. COMELEC, et. al" alleging that G.R. No. 134456
also involves a COMELEC decision declaring the precinct corresponding to eight (8) barangays in
Madalum, Lanao del Sur as ghosts precincts.
In a resolution issued by this Court on January 19, 1999, we denied the motion to consolidate,
considering that G.R. No. 134456 had already been dismissed in our resolutions of August 4, 1998 and
August 18, 1998.
Issue:
Whether or not the respondent COMELEC committed grave abuse of discretion in declaring Padian-
Torogan as ghost precinct.
Held:
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It must be noted that under the Omnibus Election Code, there should be at least one precinct per
barangay.[13] In designating election precincts, the COMELEC usually refers to them by number.
Nevertheless, the determination of whether a certain election precinct actually exists or not and
whether the voters registered in said precinct are real voters is a factual matter. On such issue, it is a
time-honored precept that factual findings of the COMELEC based on its own assessments and duly
supported by evidence, are conclusive upon this Court, more so, in the absence of a substantiated attack
on the validity of the same.[14] Upon review of the records, the Court finds that the COMELEC had
exerted efforts to investigate the facts and verified that there were no public or private buildings in the
said place, hence its conclusion that there were no inhabitants. If there were no inhabitants, a fortiori,
there can be no registered voters, or the registered voters may have left the place. It is not impossible
for a certain barangay not to actually have inhabitants considering that people migrate. A barangay may
officially exist on record and the fact that nobody resides in the place does not result in its automatic
cessation as a unit of local government. Under the Local Government Code of 1991, the abolition of a
local government unit (LGU) may be done by Congress in the case of a province, city, municipality, or
any other political subdivision.[15] In the case of a barangay, except in Metropolitan Manila area and in
cultural communities, it may be done by the Sangguniang Panlalawigan or Sangguniang
Panglungsod concerned subject to the mandatory requirement of a plebiscite[16] conducted for the
purpose in the political units affected. The findings of the administrative agency cannot be reversed onappeal or certiorari particularly when no significant facts and circumstances are shown to have been
overlooked or disregarded which when considered would have substantially affected the outcome of
the case. The COMELEC has broad powers to ascertain the true results of an election by means available
to it.[17] The assailed order having been issued pursuant to COMELEC’s administrative powers and in
the absence of any finding of grave abuse of discretion in declaring a precinct as non-existent, said order
shall stand. Judicial interference is unnecessary and uncalled for.[18] No voter is disenfranchised
because no such voter exist. The sacred right of suffrage guaranteed by the Constitution[19]is not
tampered when a list of fictitious voters is excluded from an electoral exercise. Suffrage is conferred by
the Constitution only on citizens who are qualified to vote and are not otherwise disqualified by law. On
the contrary, such exclusion of non-existent voters all the more protects the validity and credibility of
the electoral process as well as the right of suffrage because the "electoral will" would not be renderednugatory by the inclusion of some ghost votes. Election laws should give effect to, rather than frustrate
the will of the people.
Padilla v COMELEC
Facts:
Pursuant to RA 7155, creating the Municipality of Tulay na Lupa in the province of Camarines Norte to
be composed of Barangays Tulay-naLupa, Lugui, San Antonio, Mabilo I, Napaod, Bayan-bayn, Mataulang,
Pag-asa, Maot, and Calabasa, all in the Municipalty of Labo, some province, COMELEC scheduled a
plebiscite was conducted throughout the municipality of Labo and majority voted against the creation of
the Municipality of Tulay-na-Lupa. Petitioner prayed that the plebiscite conducted to set aside with the
contention that such plebiscite was a complete failure.
Issue:
Whether or not the plebiscite conducted in the areas comprising the proposed Municipality of Tulay na
Lupa and the remaining areas of the mother Municipality of Labo is valid.
Held:
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COMELEC did not commit grave abuse of discretion and the result of the plebiscite rejecting the creation
of the new municipality of Tulay-na-Lupa is valid. It stands to reason that when the law states that the
plebiscite shall be conducted “in the political units directly affected,” it means that residents of the
political entity who would be economically dislocated by the separation of a portion thereof have a right
to vote in said plebiscite. Evidently, what is contemplated by the phrase “political units directly affected”
is the plurality of the political units which would participate in the plebiscite.
Tobias v Abalos
Facts:
Invoking their rights as taxpayers and as residents of Mandaluyong, herein petitioners assail the
constitutionality of Republic Act No. 7675, otherwise known as "An Act Converting the Municipality of
Mandaluyong into a Highly Urbanized City to be known as the City of Mandaluyong." Prior to the
enactment of the assailed statute, the municipalities of Mandaluyong and San Juan belonged to only
one legislative district. Hon. Ronaldo Zamora, the incumbent congressional representative of this
legislative district, sponsored the bill which eventually became R.A. No. 7675. President Ramos signed
R.A. No. 7675 into law on February 9, 1994. Pursuant to the Local Government Code of 1991, a
plebiscite was held on April 10, 1994. The people of Mandaluyong were asked whether they approved of
the conversion of the Municipality of Mandaluyong into a highly urbanized city as provided under R.A.
No. 7675. The turnout at the plebiscite was only 14.41% of the voting population. Nevertheless, 18,621
voted "yes" whereas 7,911 voted "no." By virtue of these results, R.A. No. 7675 was deemed ratified and
in effect. Petitioners now come before this Court, contending that R.A. No. 7675, specifically Article VIII,
Section 49 thereof, is unconstitutional for being violative of three specific provisions of the Constitution.
Issue:
WON RA 7675 is in:
1. Violation of Article VI, Section 26(1) of the Constitution regarding 'one subject one bill rule".
2. Violation of Article VI, Sections 5(1) and (4) as to the number of members of the Congress to 250 and
reappropriating the legislative districts.
Held:
Applying liberal construction the Supreme Court dismissed the contention of constitutionality pertaining
to Art VI 26(1) saying "should be given a practical rather than a technical construction. It should be
sufficient compliance with such requirement if the title expresses the general subject and all the
provisions are germane to that general subject." As to Article VI Sec 5(1), the clause "unless otherwise
provided by law" was enforced justifying the act of the legislature to increase the number of the
members of the congress. Article VI Sec 5 (4) was also overruled as it was the Congress itself which
drafted the bill reapportioning the legislative district. In view of the foregoing facts, the petition was
dismissed for lack of merit.
CHAPTER 1. - THE CODE: POLICY AND APPLICATION
SECTION 1. Title. - This Act shall be known and cited as the "Local Government Code of 1991".
SEC. 2. Declaration of Policy. –
(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
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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, non-governmental and people's
organizations, and other concerned sectors of the community before any project or program is
implemented in their respective jurisdictions.
SEC. 3. Operative Principles of Decentralization. - The formulation and implementation of policies and
measures on local autonomy shall be guided by the following operative principles:
(a) There shall be an effective allocation among the different local government units of their
respective powers, functions, responsibilities, and resources;
(b) There shall be established in every local government unit an accountable, efficient, anddynamic organizational structure and operating mechanism that will meet the priority needs
and service requirements of its communities;
(c) Subject to civil service law, rules and regulations, local officials and employees paid wholly or
mainly from local funds shall be appointed or removed, according to merit and fitness, by the
appropriate appointing authority;
(d) The vesting of duty, responsibility, and accountability in local government units shall be
accompanied with provision for reasonably adequate resources to discharge their powers and
effectively carry out their functions; hence, they shall have the power to create and broaden
their own sources of revenue and the right to a just share in national taxes and an equitable
share in the proceeds of the utilization and development of the national wealth within their
respective areas;(e) Provinces with respect to component cities and municipalities, and cities and municipalities
with respect to component barangays, shall ensure that the acts of their component units are
within the scope of their prescribed powers and functions;
(f) Local government units may group themselves, consolidate or coordinate their efforts,
services, and resources for purposes commonly beneficial to them;
(g) The capabilities of local government units, especially the municipalities and barangays, shall
be enhanced by providing them with opportunities to participate actively in the implementation
of national programs and projects;
(h) There shall be a continuing mechanism to enhance local autonomy not only by legislative
enabling acts but also by administrative and organizational reforms;
(i) Local government units shall share with the national government the responsibility in the
management and maintenance of ecological balance within their territorial jurisdiction, subject
to the provisions of this Code and national policies;
(j) Effective mechanisms for ensuring the accountability of local government units to their
respective constituents shall be strengthened in order to upgrade continually the quality of local
leadership;
(k) The realization of local autonomy shall be facilitated through improved coordination of
national government policies and programs and extension of adequate technical and material
assistance to less developed and deserving local government units;
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(l) The participation of the private sector in local governance, particularly in the delivery of basic
services, shall be encouraged to ensure the viability of local autonomy as an alternative strategy
for sustainable development; and
(m) The national government shall ensure that decentralizatioontributes to the continuing
improvement of the performance of local government units and the quality of community life.
SEC. 4. Scope of Application. - This Code shall apply to all provinces, cities, municipalities, barangays, and
other political subdivisions as may be created by law, and, to the extent herein provided, to officials,
offices, or agencies of the national government.
SEC. 5. Rules of Interpretation. - In the interpretation of the provisions of this Code, the following rules
shall apply:
(a)Any provision on a power of a local government unit shall be liberally interpreted in its favor,
and in case of doubt, any question thereon shall be resolved in favor of devolution of powers
and of the lower local government unit. Any fair and reasonable doubt as to the existence of the
power shall be interpreted in favor of the local government unit concerned;
(b) In case of doubt, any tax ordinance or revenue measure shall be construed strictly against
the local government unit enacting it, and liberally in favor of the taxpayer. Any tax exemption,incentive or relief granted by any local government unit pursuant to the provisions of this Code
shall be construed strictly against the person claiming it.
(c) The general welfare provisions in this Code shall be liberally interpreted to give more powers
to local government units in accelerating economic development and upgrading the quality of
life for the people in the community;
(d) Rights and obligations existing on the date of effectivity of this Code and arising out of
contracts or any other source of prestation involving a local government unit shall be governed
by the original terms and conditions of said contracts or the law in force at the time such rights
were vested; and
(e)In the resolution of controversies arising under this Code where no legal provision or
jurisprudence applies, resort may be had to the customs and traditions in the place where thecontroversies take place.
CHAPTER 2. - GENERAL POWERS AND ATTRIBUTES OF LOCAL GOVERNMENT UNITS
SEC. 6. Authority to Create Local Government Units. - A local government unit may be created, divided,
merged, abolished, or its boundaries substantially altered either by law enacted by Congress in the case
of a province, city, municipality, or any other political subdivision, or by ordinance passed by the
sangguniang panlalawigan or sangguniang panlungsod concerned in the case of a barangay located
within its territorial jurisdiction, subject to such limitations and requirements prescribed in this Code.
SEC. 7. Creation and Conversion. - As a general rule, the creation of a local government unit or its
conversion from one level to another level shall be based on verifiable indicators of viability and
projected capacity to provide services, to wit:
(a) Income. - It must be sufficient, based on acceptable standards, to provide for all essential
government facilities and services and special functions commensurate with the size of its
population, as expected of the local government unit concerned;
(b) Population. - It shall be determined as the total number of inhabitants within the territorial
jurisdiction of the local government unit concerned; and
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