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EN BANC

G.R. No. L-5057 July 31, 1953

JACINTO R. BOHOL, Petitioner-Appellant, vs. MAURO ROSARIO, as Provincial Auditor of Samar, and JOSE C. ORTEZA, as Provincial Treasurer of Samar, Respondents-Appellees.

Jacinto R. Bohol in his own behalf.
Solicitor General Pompeyo Diaz and Solicitor Pacifico P. de Castro for appellees.

TUASON, J.:

This was a proceeding for mandamus instituted in the Court of First Instance of Samar against Mauro Rosario, as provincial auditor, and Jose C. Orteza, as provincial treasurer, both of that province. By order of the court the petition was amended by including the Secretary of Finance as party respondent. Upon the trial of the case the application was denied, and the petitioner appealed.chanroblesvirtualawlibrary chanrobles virtual law library

Petitioner Jacinto R. Bohol is Secretary to the Provincial Governor of Samar. On July 19, 1950, his salary was raised from P3,120 to P3,600 a year "as an exceptional case under section 256 of the Revised Administrative Code," and on July 20, the raise was approved by the provincial board by appropriate resolution. But the Secretary of Finance, acting on the annual budget of the province, disapproved the petitioner's promotion with this comment: "The standard rate of salary fixed by this Department for the same position in a first class A province like Samar is P2,760 per annum. However, as it appears that the incumbent of this position is already receiving P3,120 per annum, this rate may be reduced to P2,760 per annum only upon vacancy of the position." On account of this disapproval, the provincial auditor refused to pass in audit, and the provincial treasurer to pay, the petitioner's voucher on the differential between the old and the new rates of compensation corresponding to the second half of July.chanroblesvirtualawlibrary chanrobles virtual law library

Commonwealth Act No. 78, approved October 26, 1936, transferred to the Secretary of Finance the powers and administrative supervision theretofore exercised by the Secretary of the Interior over the assessment of real property, appropriation, and other financial affairs of provincial, municipal and city governments, and over the offices of provincial, municipal and city treasurers and provincial and city assessors. In pursuance of this Act, Executive Order No. 167, series of 1938, was promulgated designating "the Secretary of Finance as the agency of the National Government for the supervision and control of the financial affairs of the provincial, city and municipal governments," and providing, among other matters, for the submission to the said Secretary, through the Secretary of the Interior, of the local budgets which are "to contain the plantilla of personnel."chanrobles virtual law library

Petitioner contends that Republic Act No. 528, approved on June 16, 1950, abrogated Executive Order No. 167 and that, moreover, that executive order is unconstitutional in that thereby the Chief Executive assumes control as well as supervision of local governments, whereas by section 10 (1) of Article VII of the Constitution the President only has "general supervision" over such governments.chanroblesvirtualawlibrary chanrobles virtual law library

Republic Act No. 528 amended section 2081 of the Revised Administrative Code so as to reads as follows:

SEC. 2081. Employment of subordinates. - The Provincial Board shall fix the number of assistants, deputies, clerks, and other employees for the various branches of the provincial government and in accordance with the Salary Law to fix the rates of salary or wage they shall receive.chanroblesvirtualawlibrary chanrobles virtual law library

After their number and compensation shall have been thus determined, the Provincial Governor shall, any provision of existing law to the contrary notwithstanding, appoint, upon recommendation of the chief provincial official concerned, all the subordinate officers and employees in the various branches of the provincial government whose salaries, compensation or wages are paid, wholly from provincial funds, in conformity with the provisions of the Civil Service Law, except those whose appointments are now or may hereafter be vested in the President or proper Department Head, teachers and other school employees and transient officials or employees who shall, as heretofore, be appointed by the proper chief of provincial office with the approval of the Department Head concerned: . . .

x x x           x x x           x x x

Assuming, without deciding, that this Act has superseded previous enactments and executive orders inconsistent therewith, yet, it will be noticed, the powers conferred on local entities by the statute are subject to the condition that they be exercised in accordance with the Salary Law and the Civil Service Law. Upon this assumption the question then arises, is petitioner's new salary of P3,600 yearly in conformity to the Salary Law? No question is raised as to the petitioner's civil service eligibility.chanroblesvirtualawlibrary chanrobles virtual law library

Executive Order No. 94, series of 1947, "reorganizing the different departments, bureaus, offices, and agencies of the Government of the Republic of the Philippines, etc." and issued by virtue of Republic Act No. 51, entitled "An act authorizing the President of the Philippines to reorganize within one year the different executive departments, bureaus, offices, agencies and other instrumentalities of the Government, including the corporations owned or controlled by it," amending Commonwealth Act No. 402, the Salary Law, and classifies into 15 grades, with salaries ranging from P2,400 to P6,000 per annum, chiefs of divisions, chiefs of sections, supervisory positions and positions of equal ranks, the rates of compensation being based on the nature of work performed, "latitude for the exercise of independent judgment," the importance and size of divisions or sections, on the technical, professional and experience of the incumbents, and the like.chanroblesvirtualawlibrary chanrobles virtual law library

Petitioner alleges in his petition that his position as secretary to the provincial governor "requires and imposes on him the exercise and performance of judgment and functions falling under Grade 1 which prescribes a salary of P6,000 per annum." He stated in his memorandum in the court below that he is "the administrative head or chief of the Office of the Governor," "required to perform the administrative direction and with a very wide latitude for the exercise of independent judgment." And in his brief filed in this instance the claim is made that he "supervises the personnel of such (Governor's) office and the provincial jail," "is also the head of the local and municipal divisions in Samar," and "carries out confidential measures required of him by the Governor." He says in addition that "he is a lawyer of long experience in practice."chanrobles virtual law library

On the other side, it is asserted that the petitioner's position comes under Grade 13 for which the compensation authorized is P2,760 per annum.chanroblesvirtualawlibrary chanrobles virtual law library

The classification of positions by Executive Order No. 94, series of 1947, is loose and the demarcation lines between the grades quite indefinite. But it is fairly certain that, giving petitioner the full extent and benefit of his description on his job, the Secretary of Finance has not departed from the standard set by the schedules of salaries laid down in the executive order just mentioned, in placing petitioner's position within Grades 12-15. Actually, it has been seen, he is allowed the salary provided for Grade 11, which we believe calls for a latitude of independent judgment, technical training and experience, and supervisory work and ability well above those demonstrated by the allegations.chanroblesvirtualawlibrary chanrobles virtual law library

The claim that the position of secretary to the provincial governor of a first class A province comes within Grades 1-8, inclusive, is at best highly controversial. But granting again, for the purpose of this case, that by a very liberal interpretation petitioner could qualify under any of these grades as well as Grades 12 to 15, the opinion of the Secretary of Finance, nevertheless, should be entitled to respect and preference in case of overlapping of grades and their definitions and of divergence of views, this official being the instrumentality charged with supervising the allocation of salaries in local governments. He is to judge the kind and degree of ability, experience, training and other circumstances needed to discharge the duties of each position. It is a manifest policy of Congress that there be a central authority to establish uniformity in the emoluments of officers and employees of equal ranks in the numerous provinces and other local entities. Determination of the rates of compensation of such officers and employees cannot be left to the will and discretion of each provincial board or city or municipal council, if there is to be "standardization of salaries," "equal distribution of funds for salary expenses among the different provincial offices," or security of "the financial solvency and stability of the provinces," as provided by Executive Order No. 167, series of 1938.chanroblesvirtualawlibrary chanrobles virtual law library

From the standpoint of the Constitution to which the petitioner would cast this case, we perceive no valid objection to the intervention by the Secretary of Finance in the application and enforcement of the Salary Law. Classification through the President of government positions is a legislative prerogative, and the President's designation by executive order of his chief financial officer to see that the classification and the Salary Law are observed by local governments, is a legitimate exercise of the power of super- vision vested in the Chief Executive by section 10(1), Article VII, of the Constitution.chanroblesvirtualawlibrary chanrobles virtual law library

Finding no reversible error in the dismissal of the proceeding by the court below, the appealed decision is hereby affirmed, with costs against the appellant.chanroblesvirtualawlibrary chanrobles virtual law library

Paras, C.J., Pablo, Bengzon, Padilla, Montemayor, Reyes, Jugo, Bautista Angelo and Labrador, JJ., concur.