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City of Caloocan vs Allarde GR. No. 107271, September 10, 2003 Corona, J.

Facts: Sometime in 1972, then Mayor of Caloocan abolished the position of Assistant City Administrator and 17 other positions from the plantilla of the local government of Caloocan. The Assistant City Administrator, Delfina Santiago and the 17 others assailed the legality of the abolition before the CFI of Caloocan. The abolition was declared to be illegal and ordered the reinstatement of all the dismissed employees and the payment of their back salaries and other emoluments. In 1986, the City Government of Caloocan paid Santiago in partial while her co-parties were paid in full. In 1987, the City appropriated funds for her unpaid back salaries which was included in Supplemental Budget No. 3 for the fiscal year 1987. Surprisingly, however, the City refused to release the money to Santiago. Santiago moved for a writ of execution which was granted by the CFI Judge. A garnishment was subsequently ordered against the Citys account in PNB. Issue: Whether or not the garnishment of the Citys funds in PNB was invalid inasmuch as these were public funds exempt from execution.

Held: No. The rule is and has always been that all government funds deposited in the PNB are government funds and may not be subject to garnishment or levy unless there is a corresponding appropriation as required by law. In the case at bar, the City Council of Caloocan already approved and passed an ordinance allocating the necessary amount for Santiagos back salaries. Thus this case falls within the exception. The city cannot also claim that the City Mayor did not authorize PNB to release the funds. The mayors signature approving the budget ordinance, which includes the payment of back salaries to respondent shows his assent to the appropriation of funds in favor of Santiago.

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