EN BANC EMMANUEL PELAEZ, petitioner, vs. THE AUDITOR GENERAL, respondent. G.R. No. L- !

" # De$e%&er ', ()*#

DOCTRINAL RULE+ ,%-ni$ip./ $orpor.tions .re purely the creatures of statutes .,

0ACT1+ B2 virt-e o3 se$tion *" o3 t4e Revised Ad%inistr.tive Code, t4e presidents o3 t4e P4i/ippines in e5er$ised its e5e$-tive po6er iss-ed e5e$-tive orders $re.tin7 sever./ %-ni$ip./ities in di33erent p/.$es in t4e P4i/ippines. T4e 8i$e President o3 P4i/ippines E%%.n-e/ Pe/.e9 .s . t.5p.2er, instit-ted . spe$i./ $ivi/ .$tion, 3or . 6rit o3 pro4i&ition 6it4 pre/i%in.r2 in:-n$tion, .7.inst t4e A-ditor Gener./, to restr.in 4i%, .s 6e// .s 4is represent.tives .nd .7ents, 3ro% p.ssin7 in .-dit o3 .n2 s.id e5pendit-re e5e$-tive o3 p-&/i$ 3-nds in .n2 i%p/e%ent.tion orders .nd;or

dis&-rse%ent &2 s.id %-ni$ip./ities. T4e 8i$e-President $ontends t4.t t4e President 4.s no po6er to $re.te . %-ni$ip./it2 &2 e5e$-tive order. It is .r7-ed t4.t 1e$tion *" o3 t4e Revised Ad%inistr.tive Code o3 ()(<, so 3.r .s it p-rports to 7r.nt .n2 s-$4 po6er, is inv./id or, .t t4e /e.st, ./re.d2 repe./ed, in /i74t o3 t4e P4i/ippine Constit-tion .nd Rep-&/i$ A$t !<= >T4e B.rrio C4.rter?

T4e 8i$e President 3-rt4er .//e7es t4.t ,I3 t4e President, -nder t4is ne6 /.6, $.nnot even $re.te . &.rrio, $.n 4e $re.te . %-ni$ip./it2 64i$4 is $o%posed o3 sever./ barrios , sin$e barrios .re -nits o3 %-ni$ip./ities@, Respondent .ns6ers in t4e .33ir%.tive, -pon t4e t4eor2 t4.t . ne6 %-ni$ip./it2 $.n &e $re.ted 6it4o-t $re.tin7 ne6 &.rrios, s-$4 .s, &2 p/.$in7 o/d &.rrios -nder t4e :-risdi$tion o3 t4e ne6 %-ni$ip./it2. I11UE+ A4et4er or not t4e President o3 t4e P4i/ippines, in t4e e5er$ise o3 its e5e$-tive po6er $.n $re.te %-ni$ip./ities.

HELD+ 1e$tion (= >(? o3 Arti$/e 8II o3 o-r 3-nd.%ent./ /.6 ord.ins+ T4e President s4.// 4.ve $ontro/ o3 .// t4e e5e$-tive dep.rt%ents, &-re.-s, or o33i$es, e5er$ise 7ener./ s-pervision over .// /o$./ 7overn%ents .s %.2 &e provided &2 /.6, .nd t.Be $.re t4.t t4e /.6s &e 3.it43-//2 e5e$-ted. T4e po6er o3 $ontro/ -nder t4is provision i%p/ies t4e ri74t o3 t4e President to interfere in the exercise of such discretion .s %.2 &e vested &2 /.6 in t4e o33i$ers o3 t4e e5e$-tive dep.rt%ents, &-re.-s, or o33i$es o3 t4e n.tion./ 7overn%ent, .s 6e// .s to .$t in /ie- o3 s-$4 o33i$ers. T4is po6er is denied &2 t4e Constit-tion to t4e E5e$-tive, inso3.r .s /o$./ 7overn%ents .re $on$erned. In s4ort, even i3 it did ent.i/ .n -nd-e de/e7.tion o3 /e7is/.tive po6ers, .s it $ert.in/2 does, s.id 1e$tion *", .s p.rt o3 t4e

Revised Ad%inistr.tive Code, .pproved on M.r$4 (=, ()(<, %-st &e dee%ed repe./ed &2 t4e s-&seC-ent .doption o3 t4e Constit-tion, in ()!#, 64i$4 is -tter/2 in$o%p.ti&/e .nd in$onsistent 6it4 s.id st.t-tor2 en.$t%ent. 7 AHERE0ORE, t4e E5e$-tive Orders in C-estion .re 4ere&2 de$/.red n-// .nd void ab initio .nd t4e respondent per%.nent/2 restr.ined 3ro% p.ssin7 in .-dit .n2 e5pendit-re o3 p-&/i$ 3-nds in i%p/e%ent.tion o3 s.id E5e$-tive Orders or .n2 dis&-rse%ent &2 t4e %-ni$ip./ities .&ove re3erred to. It is so ordered.