LEYNES v. COMMISSION ON AUDIT, GR No.

143596, December 11, 2003

(En Banc), Corona J.

Facts:

Petitioner Judge Tomas C. Leynes was a presiding judge of the MTC of the Municipality
of Naujun, Oriental Mindoro. As such, his salary, representation, and transportation allowance
(RATA) were drawn from the budget of the Supreme Court and in addition received a monthly
allowance of Php 944 from the local funds of said municipality starting 1984. Moreover,
Sangguniang Bayan of Naujan, approved Resolution No. 101, on May 1993 increasing petitioner
judges monthly allowance from Php 944 to Php 1, 600.

However, Provincial Auditor, Salvacion Dalisay directed the Mayor and the Sangguniang
bayan to stop the payment of the Php 1,600 RATA to the judge and to refund the amounts
previously paid to the latter on the basis of RA 7645 General Appropriations Act (1993) and
National Compensation Circular No. 67(1992) of the Department of Budget and Management.

COA upheld the opinion of Dalisay saying that Naujan failed to comply with the Local
Budget Circular No. 53 (1993) which outlined the conditions for grant of allowances to national
officials by LGUs.

Petitioner filed a motion for reconsideration of the above decision alleging that (1) the
municipality is empowered by RA 7160 Local Government Code (1991)4 to enact ordinances
granting allowances to judges in its territory as their finances allow, and (2) DBM cannot amend
a substantive law like the Local Government Code through mere budget circulars.

Motion was DIMISSED by COA alleging that RA 7160 (1991) was amended by RA
7645 (1993), NCC 67(1992) and LBC 53 (1993), hence this petition for certiorari.

Issue/s:

Whether or not the Municipality of Naujan, Oriental Mindoro can validly provide RATA
to its Municipal Judge in addition to that provided by the SC?

Ruling:

An administrative circular cannot supersede, abrogate, modify, or nullify a statute. A

statute is superior to an administrative circular, thus the latter cannot amend it. NCC 67 being a
circular cannot amend RA 7160. In construing NCC 67, we apply the principle of statutory
construction that statutes should be given effect as a whole. As a whole then, NCC 67s
prohibition refers to ANOTHER NATIONAL AGENCY. An LGU is NOT a national agency.
Its annual budget is fixed by its own legislative council.

The principle is expressed in the maxim generalia specialibus non derogant, a general
law does not nullify a specific or special law. Reason for this is that the legislature in passing a
special law considers and makes special provisions for the particular circumstances dealt with in
the special law. Thus a general law that is repugnant to a special law cannot be deemed as an
amendment if the legislature did not make any mention of its intention to amend. RA 7160
(1991) is a special law (exclusively deals with LGUS) while RA 7645 (1993) is a general law
(funds of all branches of national government). RA 7645 by mere implication could not have
amended RA 7160. Rather, RA 7160 should be taken as the exception to RA 7645.

LBC 53 (1993) on the other hand outrightly prohibited LGUs from ganrting allowances
to judges whenever such allowances are (1) granted by the national government or (2) similar to
the allowances granted by the national government. This is violative of RA 7160. As already
stated, a circular must conform to the law it seeks to implement and should not modify or amend
it.

Power of the Municipality of Naujan to grant the questioned allowance to Judge Leynes
in accordance to RA 7160 is AFFIRMED. Validity of Resolution No. 101 of Sangguniang
Bayan of Naujan is SUSTAINED. Petition is GRANTED. Assailed decision of COA is SET
ASIDE and Section 3, Par. E of LBC 53 (1993) is declared NULL and VOID.
1Section 36 RA 7645 General Appropriations Act of 1993. Representation and Transportation Allowances. The following
officials and those of equivalent rank as determined by the Department of Budget and Management (DBM) while in the actual
performance of their respective functions are hereby granted monthly commutable representation and transportation
allowances payable from the programmed appropriations provided for their respective offices, not exceeding the rates
indicated below...

2 National Compensation Circular 67, January 1, 1992, Department of Budget and Management. Funding Source: In all cases,
commutable and reimbursable RATA shall be paid from the amount appropriated for the purpose and other personal services
savings of the agency or project from where the officials and employees covered under this Circular draw their salaries. No
one shall be allowed to collect RATA from more than one source.

3 Section 3 Allowances. Local Budget Circular No. 53, September 1, 1993. Department of Budget and Management. LGUs
may grant allowances/additional comensation to the national government officials/employees assigned to their locality at rates
authorized by law, rules and regulations and subject to the following preconditions: (Par. E.) that similar allowances/additional
compensation are not granted by the national government to the officials/employees assigned to the LGU.

(The conflicting provisions of Section 447 of RA 7160 and Section 36 of RA 7645 have been harmonized by LBC 53 issued by
DBM which provided the implementing guidelines of Section 447 of RA 7160.

4 Section 447(a)(i)(xi) RA 7160 Local Government Code of 1991. (a) The sangguniang bayan as the legislative body of the
municipality, shall enact ordinances, approve resolutions and appropriate funds for the general welfare of the municipality and its
inhabitants...and shall (1) approve ordinances and pass resolutions necessary for an efficient and effective municipal government,
and in this connection shall: (xi) when the finances of the municipal government allow, provide for additional allowances
and other benefits to judges, prosecutors, public elementary and high school teachers, and other national government officials
stationed in or assigned to the municipality