Former cities to appeal Supreme Court rule

DAVAO CITY, Philippines — Calling themselves the League of 16, the cities whose creation has been nullified by the Supreme Court will ask for a reconsideration of the decision. On Tuesday, the high court ruled as unconstitutional the creation of 16 cities under various laws passed by Congress. Mayor Marie Denise Michelle N. Rabat of Mati City in Davao Oriental said: "How do we unmake a city?" She noted Mati stands to lose its P277-million shares in national taxes proceeds on top of the need to lay off 600 employees who were hired when Mati City was created on June 19, 2007, the birthday of her father, the late mayor Francisco G. Rabat. Other cities that would have to revert as municipalities are Baybay (Leyte province), Bogo, Naga and Carcar (Cebu), Catbalogan and Borongan (Samar), Tandag (Surigao del Sur), Lamitan (Basilan), Tayabas (Quezon), Tabuk (Kalinga), Bayugan (Agusan del Sur), Batac (Ilocos Norte), Guihulngan (Negros Oriental), Cabadbaran (Agusan del Norte) and El Salvador (Misamis Oriental). Also to be affected by the high court decision is Mati’s health services, particularly the P10-million two-year maintenance of a wing at the Davao Oriental Provincial Hospital. But should the ruling be upheld, Ms. Rabat said Mati will resort to target higher income by developing its tourism and mining prospects. Mati, currently hosting three major consortia, has been identified as a major area for mining in the Davao Region. The mayor added big-ticket projects will also be affected since their budgets were based on the increased internal revenue allotment. One of the major ventures is the P5-million, five-year Rubber Industry Development Project. In its decision, the high court questioned Republic Act 9009 which increased the budget of a municipality to P100 million from P20 million if it wants to be converted into a city. The law amended the Local Government Code which puts the budget requirement at P20 million. - BusinessWorld