Alecha and Tapitan vs. Pasion et. al. , G.R. 164546, January 19, 2010

Can a fifth class municipality adopt the salary scheme of special cities and first class provinces for its municipal officials?

A fifth class municipality like Midsalip is not absolutely prohibited from adopting a salary schedule equivalent to that of a special city or first class province. Local Budget Circular 64 dated January 1, 1997 in conjunction with Section 11 of Local Budget Circular 56 allows Local Government Units (LGUs) lower than special cities or first class province,

To adopt their salary scheme if the LGU is financially capable;

The salary schedule is to be applied uniformly to all positions; it is not higher than that being adopted by the national government;

The salary grade allocation and salary steps of personnel are retained;

The adoption of higher salary schedule is within the limitation of the Local Government Code;

The salary schedule is not higher than that of the province where the municipality belong and the adoption o the higher schedule shall not in any manner alter the existing classification of the LGU concerned.

It is beyond cavil that Midsalip Municipality has complied with said conditions. It has financial capability as shown by its savings five years into the implementation of the higher salary schedule and the certified statement of savings of unobligated balances issued by the Municipal Treasurer and Accountant. Th local budget ordinance was approved by the Sanggunian, the DBM and the COA.

Raised, the abuse of discretion to be grave as to amount to lack or excess of jurisdiction must be so patent and gross as to be equivalent to an evasion of a positive duty or virtual refusal to perform a duty enjoined by law, or to act at all in contemplation of law, as where the power is exercised in an arbitrary manner by reason of passion or hostility. There is nothing of that sort here.

In sum no grave abuse of discretion was committed by the Ombudsman in dismissing the letter complaint of Poldo and Celso. Its findings are duly supported by evidence. Its findings should be accorded not only with respect but even with finality when supported by substantial evidence even if not overwhelming or preponderant as it is equipped with more expertise.