G.R. No.
199439          April 22, 2014
CITY OF GENERAL SANTOS, represented by its Mayor, HON. DARLENE MAGNOLIA R. ANTONINO-
CUSTODIO Petitioner,
vs.
COMMISSION ON AUDIT, Respondent.
Facts:
Then mayor of General Santos City, Pedro B. Acharon, Jr., issued Executive Order No. 40, series of 2008,
creating management teams pursuant to its organization development program. This was patterned
after Executive Order No. 366 dated October 4, 2004 entitled Directing a Strategic Review of the
Operations and Organizations of the Executive Branch and Providing Options and Incentives for
Government Employees who may be Affected by the Rationalization of the Functions and Agencies of
the Executive Branch and its implementing rules and regulations
Issue:
Does the constitutional mandate for local grant give the local governments the power to streamline and
reorganize as well as the authority to create a separate or supplementary retirement benefit?
Ruling:
Yes. The constitutional mandate for local autonomy supports petitioner city’s issuance of Executive
Order No. 40, series of 2008, creating change management teams as an initial step for its organization
development masterplan.
Local autonomy also grants local governments the power to streamline and reorganize. This power is
inferred from Section 76 of the Local Government Code on organizational structure and staffing pattern,
and Section 16 otherwise known as the general welfare clause
Notes--
Section 76. Organizational Structure and Staffing Pattern. - Every local government unit shall design and
implement its own organizational structure and staffing pattern taking into consideration its service
requirements and financial capability, subject to the minimum standards and guidelines prescribed by
the Civil Service Commission.
Section 16. General Welfare. - Every local government unit shall exercise the powers expressly granted,
those necessarily implied there from, as well as powers necessary, appropriate, or incidental for its
efficient and effective governance, and those which are essential to the promotion of the general
welfare. Within their respective territorial jurisdictions, local government units shall ensure and support,
among other things, the preservation and enrichment of culture, promote health and safety, enhance
the right of the people to a balanced ecology, encourage and support the development of appropriate
and self-reliant scientific and technological capabilities, improve public morals, enhance economic
prosperity and social justice, promote full employment among their residents, maintain peace and
order, and preserve the comfort and convenience of their inhabitants.