The authority of mayors to close down business establishments operating without business licenses and permits is beyond question. The law expressly provides for such authority.
But mayors must also observe due process in exercising these powers, which means that the mayor must give the establishment enough notice and opportunity to be heard.
The City Mayor of Dumaguete had no authority to close down Zanzibar without due process of law. He cannot take refuge under the Local Government Code which has no provision expressly or impliedly granting the mayor authority to close down private commercial establishments without notice and hearing.
There is no provision in this law expressly or impliedly granting the mayor authority to close down private commercial establishments without notice and hearing, and even if there is, such provision would be void. (Lim vs. CA: 111397, Aug. 12, 2002; J. Carpio, 3rd Division)
The regulatory powers granted to local government units must always be exercised in accordance with law, with utmost observance of the rights of the people to due process and equal protection of the law.
Such power cannot be exercised whimsically, arbitrarily or despotically.
In the instant case, Zanzibar’s property rights should be protected under the due process clause of the Constitution. That is why the City gave them enough time to correct its deficiencies to be compliant with existing laws, rules, and regulations.
Compliance is key when doing business.
On Jan. 4, the Office of the City Administrator issued a Notice of Closure to Lorraine Kay A. Rosal, proprietor of Zanzibar Restaurant & Lounge, for operating without the necessary Mayor’s/Business Permit as mandatorily required by the 1997 Omnibus Tax Ordinance of the City of Dumaguete, specifically Section 68 (a).
The establishment was asked to take immediate measures to comply with the requirements stipulated in Ordinance within seven days from receipt of the notice, which was received the same day.
The following day, Jan. 5, the lawyer of Zanzibar personally came to see me being City Administrator, asking for reconsideration. By Jan. 6, the Office of the City Administrator received a letter requesting the City to give Zanzibar an extension of 90 days (three months) to comply with the engineering and fire safety requirements. The letter was referred to Neil Rey Lagahit, City legal officer, for appropriate action.
My personal stand on the matter was that the establishment be ordered closed after seven days, if the requirements were not complied with by then. Zanzibar should not be allowed to operate even while it needed 90 days to renovate the building.
The Zanzibar representative informed us they had requested the building owner, La Dem Properties Corp. (Demetrio Larena family), to renovate the building, following the advice in 2015 from the City Engineer’s Office and Fire officials, but that they did not get the nod.
As of Jan. 6, the letter said, the building owners had approved the advice for renovation.
Zanzibar was acquired in 2014 by the current owner, Rosal, from the previous owner, Lorefe Garunggay, who also failed to comply with the requirements necessary for the issuance of a Mayor’s Permit.
Since the establishment is engaged in the selling of food and drinks, its cook, servers, and other staff are required to undergo a food handling seminar, and secure the health certificate (after a chest x-ray, stool exam, and other laboratory examinations), pursuant to the provision of PD 522, PD 856, and City Ordinance No. 79 of 1974.
Furthermore, to make sure the business establishment follows the sanitation standards, a Sanitary Permit from the City Health Office is also required. Unfortunately, they failed to get such a requirement.
A Mayor’s Permit shall be issued only when these requirements, among others, are complied with: Certificate of Occupancy, Fire Safety Inspection Certificate, Health Certificate, and Sanitary Permit.
The Occupancy certificate shall state that after final inspection, it is found that the building or structure occupied complies with the provisions of the National Building Code (PD 1096). It means that the structure, as well as the accessory facilities of the establishment, conform in all respects with the principles of safe construction, and must be suited to the purpose for which it is designed.
As provided in the Code, no building or structure shall be used or occupied until the Building Official (City Engineer) has issued a Certificate of Occupancy.
The Fire Safety Inspection Certificate shall state that the building has substantially complied with fire safety and protection requirements of the Fire Code of the Philippines of 2008 and its Implementing Rules and Regulations.
For failure to comply the above requirements despite the adequate time granted by the City government to the owners, the erring Zanzibar was ordered closed on Jan. 14. Zanzibar is now closed for business.
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Author’s email: wea_129@yahoo.com
