nuceso and op-cesoai support the -...

NUCESO AND OP-CESOAI SUPPORT THE

“CAREER EXECUTIVE SERVICE ACT OF 2014”

Presented by:

ALBERTO A. BERNARDO, CPA, Esq., CESO I

Deputy Executive Secretary, Office of the President

and NUCESO Board Member

12 November 2014

I. COVERAGE

SEC. 3. Coverage. – This Act shall cover the Career

Executive Service which is consists of executive

/[managerial] class of the third level of the career

service in the Executive Branch of the government,

all of whom shall be appointed by the President,

and those occupying positions above division

chief level INVOLVING EXECUTIVE FUNCTIONS IN

DEPARTMENTS, ATTACHED AGENCIES, GOVERNMENT-

OWNED AND CONTROLLED CORPORATIONS AND

STATE UNIVERSITIES AND COLLEGES but are not

appointed by the President.

2 Office of the President Internal Audit Office

1. “(iii) Executive Category – This category

includes managerial positions involved in the

execution of laws, rules and regulations, both in

the national and local governments, in the

legislation of laws and ordinances, and in the

administration of justice. Appointive executive

positions require thorough knowledge acquired

through completion of at least a bachelor’s

degree. x x x.” [underscoring supplied] (Senate and House of Representatives Joint Resolution No. 4, “Joint Resolution Authorizing the President of the Philippines to Modify the Compensation and Position Classification System of Civilian Personnel and the Base Pay Schedule of Military and Uniformed Personnel in the Government, and for Other Purposes”, 17 June 2009)

I. COVERAGE


II. CAREER EXECUTIVE SERVICE BOARD

SEC. 4. Definition of Terms. As used in this

Act, the following terms shall be construed as

follows:

x x x

(b) Career Executive Service Board (CESB)

refers to the policy making body responsible

for the development, maintenance and

administration of the System, [under the

supervision of the] ATTACHED FOR POLICY AND

PROGRAM COORDINATION TO THE Civil Service

Commission [as provided herein].


1. “From its inception, the CESB was intended to be

an autonomous entity, albeit administratively

attached to respondent Commission. x x x

By said attachment, CESB was not made to fall

within the control of respondent Commission.

Under the Administrative Code of 1987, the

purpose of attaching one functionally inter-

related government agency to another is to attain

‘policy and program coordination.’” (underscoring

supplied) [Eugenio vs. CSC, G.R. No. 115863, 31 March 1995]



2. “Under our system of government, all Executive

departments, bureaus, and offices are under

the control of the President of the Philippines.

Section 17, Article VII of the Constitution

provides:


The President shall have control of all

the executive departments, bureaus, and

offices. He shall ensure that the laws be

faithfully executed. ” (emphasis in the case) [Rufino vs.

Endriga, G.R. No. 139554, 21 July 2006]


SEC. 4. Definition of Terms. As used in this

Act, the following terms shall be construed as

follows:

x x x

(e) Career Executive System (System) refers

to the system designed to professionalize and

promote career development among the

executive [and managerial personnel] of the third

level in the career service.











degree. x x x.” [underscoring supplied] (Senate and House of Representatives Joint Resolution No. 4, “Joint Resolution Authorizing the President of the Philippines to Modify the Compensation and Position Classification System of Civilian Personnel and the Base Pay Schedule of Military and Uniformed Personnel in the Government, and for Other Purposes”, 17 June 2009)



IV. THIRD LEVEL POSITION

SEC. 4. Definition of Terms. - As used in this Act,

the following terms shall be construed as follows:

x x x

(h) Third level refers to the highest level in the

career service of the Civil Service System which

includes [positions in the executive and

managerial class] THE CLOSED CAREER POSITIONS;

CAREER EXECUTIVE SERVICE (CES) POSITIONS;

CAREER OFFICERS, OTHER THAN THOSE IN THE CES;

COMMISSIONED OFFICERS OF THE ARMED FORCES;

AND CAREER PERSONNEL OF GOVERNMENT-

OWNED OR CONTROLLED CORPORATIONS. . . .



IT SHALL COVER [covering] all positions higher

than chief of division, CLASSIFIED AS EITHER:

A) POSITIONS IN THE EXECUTIVE CLASS, AND

B) POSITIONS IN THE HIGHLY TECHNICAL AND

SPECIALIZED CLASS, based on the position

classification system of the Department of Budget

and Management (DBM) and the GOVERNANCE

COMMISSION FOR GOVERNMENT-OWNED OR –

CONTROLLED CORPORATIONS (GCG), WITH THE

QUALIFICATIONS STANDARDS ESTABLISHED BY THE

DEPARTMENTS OR AGENCIES, TO BE APPROVED BY

THE Civil Service Commission.










degree. x x x.” [underscoring supplied] (Senate and House

of Representatives Joint Resolution No. 4, “Joint Resolution Authorizing the President of the Philippines to Modify the Compensation and Position Classification System of Civilian Personnel and the Base Pay Schedule of Military and Uniformed Personnel in the Government, and for Other Purposes”, 17 June 2009)



2. “SECTION 7. Career Service. – x x x

The Career Service shall include:

(2) Closed Career positions which are

scientific, or highly technical in nature; these

include the faculty and academic staff of

state colleges and universities, and scientific

and technical positions in scientific or

research institutions which shall establish and

maintain their own merit system; . . .

(1) Open Career positions x x x



2. (3) Positions in the Career Executive Service;

namely, Undersecretary, Assistant Secretary, x x x

and other officers of equivalent rank as may be

identified by the Career Executive Service

Board, all of whom are appointed by the

President;

(4) Career officers, other than those in the

Career Executive Service, who are appointed

by the President, such as the Foreign Service

Officers in the Department of Foreign Affairs; . . .



2. (5) Commissioned officers and enlisted

men of the Armed Forces which shall maintain

a separate merit system;

(6) Personnel of government-owned or

controlled corporations, whether per-forming

governmental or proprietary functions, who do

not fall under the non-career service; and

(7) Permanent laborers, x x x.” (underscoring

supplied) [Section 7, Chapter 2, Sub-title A, Title I, Book V, Executive

Order (EO) No. 292, s. 1987, the “Administrative Code of 1987,” 25 July

1987]



3. “Section 4. Science and Technology

Career System. - A career system for

science and technology personnel in the

service of the government which is

patterned after the Scientific Career

System (SCS) shall be formulated by the

DOST in coordination with the Civil Service

Commission.”(underscoring supplied)[Republic Act No. 8439 or “An Act Providing A Magna Carta For Scientists, Engineers, Researchers and Other Science and Technology Personnel in Government”, 22 December 1997]



4. “SEC. 3. Standards. - The Solicitor General shall have cabinet rank and the same qualifications for appointment, rank, prerogatives, salaries, allowances, benefits and privileges as the Presiding Justice of the Court of Appeals; an Associate Solicitor General, those of an Associate Justice of the Court of Appeals.


(Republic Act No. 9417 or “An Act To Strengthen the Office of the Solicitor General by Expanding and Streamlining its Bureaucracy, Upgrading Employee Skills and Augmenting Benefits, and Appropriating Funds Therefor and For Other Purposes” and its Implementing Rules and Regulations, 30 March 2007)

The qualification for appointment, rank, prerogatives, salaries, and privileges of Solicitors shall be the same as judges, specified as follows:

Senior State Solicitor Regional Trial Court Judge

State Solicitor II Metropolitan Trial Court Judge

State Solicitor I Municipal Trial Court in Cities Judge


5. “SEC. 3. Powers and Functions. The

Department of Budget and Management shall

assist the President in the x x x, achievement of

more economy, efficiency in the management

of government operations, administration of

compensation and position classification systems,

assessment of organizational effectiveness x x x.” [Section 3, Chapter 1, Title XVII, Book IV – The Executive Branch, EO 292, s. 1987, or the “Administrative Code 1987, 25 July 1987]



6. “(17) Functional Responsibilities – (a) In addition to the powers and functions provided in this Joint Resolution and Presidential Decree No. 985, as amended x x x, the DBM shall:

[Senate and House of Representatives Joint Resolution No. 4, “Joint Resolution Authorizing the President of the Philippines to Modify the Compensation and Position Classification System of Civilian Personnel and the Base Pay Schedule of Military and Uniformed Personnel in the Government, and for Other Purpose, 17 June 2009]

(i) Prepare and issue the guidelines, rules and regulations necessary to implement the modified Compensation and Position Classification System for all government personnel herein established consistent with the executive orders to be issued by the President; x x x.”

IV. THIRD LEVEL POSITION 18 Office of the President

Internal Audit Office

7. “SEC. 9. Position Titles and Salary Grades. –

All positions in the Position Classification

System, as determined by the GCG and as

approved by the President, shall be allocated

to their proper position titles and salary grades

in accordance with the Index of Occupational

Services, Position Titles and Salary Grades of

Compensation and Position Classification System,

which shall be prepared by the GCG and

approved by the President.” (underscoring supplied) [Chapter III, RA 10149 or the“Governance Act of 2011”, 6 June 2011]



(2) The establishment, administration and

maintenance of qualification standards shall

be the responsibility of the department or

agency, with the assistance and approval of

the Civil Service Commission and in consultation

with the Wage and Position Classification Office.”

8. “SEC. 22. Qualification Standards. – (1) x x x x x x

(underscoring supplied) [Section 22 (2), Chapter 5, Subtitle A, Title I,

Book V, Executive Order No. 292, or the “Administrative Code of 1987”,

25 July 1987, as amended]



9. “Since the responsibility for the establishment,

administration and maintenance of qualification

standards lies with the concerned department

or agency, the role of the CSC is limited to

assisting the department or agency with

respect to these qualification standards

and approving them. The CSC cannot

substitute its own standards for those of the

department or agency, specially in a case

like this in which an independent constitutional

body is involved.” (underscoring supplied) [Office of the Ombudsman vs. Civil Service Commission, G.R. No. 162215, 30 July

2007]



V. THE CAREER EXECUTIVE SYSTEM

SEC. 5. The Career Executive System. – The

System shall cover all executive and managerial

positions in the third level of the career service in

the Executive Branch, as defined in Section 4

hereof. Entry and advancement in the System

shall be governed by the principles of merit and

fitness and such other requirements, as may be

prescribed by the CESB. The System shall be

essentially characterized by the principles of merit

and fitness, security of tenure and mobility.










degree. x x x.”(underscoring supplied) [Senate and House

of Representatives Joint Resolution No. 4, “Joint Resolution Authorizing the President of the Philippines to Modify the Compensation and Position Classification System of Civilian Personnel and the Base Pay Schedule of Military and Uniformed Personnel in the Government, and for Other Purposes”, 17 June 2009]

V. THE CAREER EXECUTIVE SYSTEM


VI. CAREER EXECUTIVE SERVICE BOARD

SEC. 6. Career Executive Service Board (CESB). -

A Career Executive Service Board, hereinafter

referred to as the Board, [under the supervision of]

ATTACHED TO the Civil Service Commission, is

hereby created. It shall be A COLLEGIAL BODY

composed of [the Chairperson of the Commission

who shall serve as the Board’s ex-officio

Chairperson and of four (4)] SIX (6) ex-officio

members, namely: THE CHAIRPERSON OF THE

COMMISSION; THE EXECUTIVE SECRETARY OR

HIS/HER PERMANENT REPRESENTATIVE, HOLDING A

POSITION NOT LOWER THAN A DEPUTY EXECUTIVE

SECRETARY/ UNDERSECRETARY; . . .



THE Secretary of the Department of Budget

and Management (DBM) or his/her permanent

representative holding a position not lower

than an Undersecretary; the President of the

Development Academy of the Philippines (DAP);

he Dean of the National College of Public

Administration and Governance (NCPAG) of the

University of the Philippines; and the representative

of a duly accredited national federation or union

of CESOs. . . .



The Board shall also include three (3) members

to be appointed by the President for a term of

three (3) years, namely: a representative of a

nationwide association of personnel and/or

human resource practitioners in the private

sector; a representative of the Philippine

Association of Professional Regulatory Board

Members (PAPRBM) and a representative ]of the

Office of the President] FROM THE RANKS OF

RETIRED CAREER EXECUTIVE SERVICE OFFICERS.



1. Attachment of CES Board to the CSC for

policy and program coordination and the

ex-officio Chairman or member of CESB

coming from the CSC are sufficient

mechanisms that will integrate human

resource development programs of the CES

in all levels and ranks in the civil service.


2. “From its inception, the CESB was intended to

be an autonomous entity, albeit administratively

attached to respondent Commission. x x x By

said attachment, CESB was not made to fall

within the control of respondent Commission.

Under the Administrative Code of 1987, the

purpose of attaching one functionally inter-

related government agency to another is to

attain ‘policy and program coordination.’” (underscoring supplied) [Eugenio vs. CSC, G.R. No. 115863, 31 March

1995]



3. “Under our system of government, all Executive

departments, bureaus, and offices are under

the control of the President of the Philippines.

Section 17, Article VII of the Constitution

provides:

The President shall have control of all

the executive departments, bureaus, and

offices. He shall ensure that the laws be

faithfully executed.” (emphasis in the case) [Rufino vs.

Endriga, G.R. No. 139554, 21 July 2006]



4. It is further suggested that the ex-officio

members of the CES Board be increased from

four (4) to six (6). To address the issues on

discipline and sanction on unsatisfactory

performance, it is proposed that the Executive

Secretary or his/her permanent representative

- holding a position of not lower than a Deputy

Executive Secretary or Undersecretary, shall sit

as an ex-officio member of the Board.



VII. POWERS AND FUNCTIONS OF THE BOARD

SEC. 7. Powers and Functions of Board. - The

Board shall be the policy-making body for the

System. It shall promulgate rules, standards and

procedures in the recruitment, selection, assignment

to positions, [attestation of appointment to CES

positions], conferment of ranks, classification,

compensation, mobility, performance management,

tour of duty, rewards and incentives, training and

career development of CESOs and CESEs. . . .



[Provided, That in the exercise of its power of

supervision, the Commission may motu

proprio review, revise or reverse any policy of

the Board within a period of thirty (30) days

from receipt of written notice thereof:

Provided, further, That if the Commission does

not act within the said period, the subject

policy of the Board shall be deemed as

presumptively approved by the Commission].



1. “The power to appoint is essentially executive

in nature, and the legislature may not interfere

with the exercise of this executive power

except in those instances when the Constitution

expressly allows it to interfere. x x x The

scope of the legislature’s interference in the

executive’s power to appoint is limited to the

power to prescribe the qualifications to an

appointive office. Congress cannot appoint a

person to an office in the guise of prescribing

qualifications to that office.” (underscoring supplied)


[Pimentel et. al. vs. Ermita et. Al., G.R. No. 164978, 13 October 2005]

VIII. SECURITY OF TENURE

SEC. 10. Security of Tenure. A CES incumbent

shall enjoy security of tenure in the CES based

on eligibility, INTEGRITY, AND PERFORMANCE

ACCOUNTABILITY. They shall not be suspended

nor dismissed except for cause and with due

process of law.


1. “Nananawagan po ako sa Kongreso: suriin

natin ang ating Civil Service Code at PD 1,

upang maisaayaos sa lalong madaling

panahon. Suportado ko ang pagbuo ng

mekanismong magbabalik sa dangal ng

serbisyo-publiko; na tanging mga tapat,

mahuhusay at may prinsipyong mga lingkod-

bayan lamang ang maaring makapasok at

manatili sa gobyerno.” (underscoring supplied) [Transcript

of the Fourth State of the Nation Address (Tagalog version) of

President Benigno S. Aquino III, 22 July 2013



2. “A Department/Agency shall determine

and officially adopt a percentage weight

allocation scheme based on the following

ranges:

[“Rule III, Section 2(E), CESB Resolution No. 661, “Guidelines/Rules and Regulations of the Career Executive Service Performance Evaluation System (CESPES), 23 January 2007]

Kinds of Milestones

Percentage of Weight Allocations for Different Positions/Levels Prescribed

by the CESB

Director I to III Director IV to Undersecretary

Leading and Innovating 30-50% 60-80%

Regular/Routing 50-70% 20-40%

TOTAL 100% 100%



3.1. “SEC. 8. Submission of Performance

Evaluation Reports. - The Secretary shall

formulate and enforce a system of

measuring and evaluating periodically

and objectively the performance of the

Department and submit the same annually

to the President.”(underscoring supplied) [Chapter 2,

Book IV - The Executive Branch, Executive Order (EO) No. 292 s. 1987, the “Administrative Code of 1987”, 25 July 1987, as amended]



3. Output/Outcome-Based

3.2. “SECTION 3. Harmonized RBPMS.

The Organizational Performance Indicators

Framework (OPIF) and the Results Matrix (RM)

shall be the underlying frameworks for the

proposed RBPMS, which will be used by all

government agencies mandated to exercise

broad oversight over the performance of all

agencies in the government.” (underscoring supplied)

[Administrative Order No. 25, s. 2011, “Creating an Inter-agency

Task Force on the Harmonization of National Government

Performance Monitoring, Information and Reporting Systems”, 21

December 2011]




in brackets supplied) [Administrative Order No. 25, s. 2011, “Creating an Inter-agency Task Force on the Harmonization of National Government Performance Monitoring, Information and Reporting Systems”, 21 December 2011]

3.3. “SECTION 4. Involvement of other Government

Oversight Offices. The Task Force shall involve

the Civil Service Commission (CSC) and the

Career Executive Service Board (CESB) in

order to align the Strategic Performance

Management [System] (SPMS) of CSC and

the Career Executive Service Performance

Evaluation System (CESPES) of CESB to the

proposed RBPMS. x x x.” (underscoring supplied; word




3.4. “The PBB shall be characterized as a system

of ranking units and personnel within an

organization x x x on the following pillars:

i. Department’s Major Final Outputs;

ii. Department’s commitments to the

President which are supportive of the

priorities under EO 43; and

iii. Good governance conditions to be

determined by IATF under AO 25.” (underscoring supplied) [Section 2 (a), Executive Order No. 80,

“Directing the Adoption of a Performance-Based Incentive System

for Government Employees”, 20 July 2012]




3.5. “PURPOSE. – The PES shall provide the framework for setting the organizational targets of a GOCC. x x x

(a)Determining the grant of Performance-Based Incentives;

(b)A component of the criteria for determining whether Appointive Directors are eligible for reappointment; and

(c) ‘Ascertain whether such GOCC should be reorganized, merged, streamlined, abolished or privatized . . .’” (emphasis and underscoring in the Memorandum Circular) [Item 2, GCG Memorandum Circular No. 2013-02, “Performance Evaluation System for the GOCC Sector”, 29 April 2013]




3.6. “Section. 93. Grounds and Procedure for Dropping from the Rolls. - x x x

[underscoring supplied] (Rule 19, Revised Rules on Administrative Cases in the Civil Service, CSC Resolution No. 1101502, November 8, 2011)

1. An official or employee who is given two (2) consecutive unsatisfactory ratings may be dropped from the rolls after due notice. x x x

2. An official or employee, who for one evaluation period is rated poor in performance, may be dropped from the rolls after due notice. x x x. “

b. Unsatisfactory or Poor Performance

a. x x x




3.7. “[T]he Office of the Secretary (OSEC) in a

Department or an equivalent unit in

Department-level agencies shall be

considered as one (1) delivery unit to

include the OSEC itself and all the Offices

of the Department Undersecretaries and

Assistant Secretaries.”(Item 3.11, IATF MC No. 2012-05

“Guidelines to Clarify the Eligibility and the Ranking of Personnel in Line with the Grant of Performance-Based Bonus (PBB) for FY 2012”, 14 January 2013)




3.8. “Third level officials within the bureaus/

offices/delivery units (such as Bureau

Directors and Assistant Directors) may be

ranked in two ways, subject to the

recommendation of the PMG and the

Agency Head:

(underscoring supplied) [“Item 3.12, IATF M.C. No. 2012-1 “Guidelines on the Cascading of Department Performance Targets in line with Executive Order No. 80, 13 August 2012]

3.12.1. Include said officials in the ranking

of personnel within each bureau/

office/ delivery unit; or

3.12.2. Include said officials in the ranking

of the personnel within the OSEC.”



3. Output/Outcome Based

IX. COMPENSATION

SEC. 11. Compensation. – A CESO shall

be compensated according to rank and

performance. In case a CESO occupies a position

whose salary grade is higher than that of the rank

the CESO is holding, the CESO shall receive the

difference between the salary grade of the

position and the rank. The Board, in coordination

with the [Commission] CSC, the GCG and the

DBM, shall develop and periodically review a

compensation plan for CESOs. The employing

agency shall provide the funds to pay the salary,

fringe benefits and allowances of the CESO.


1. “SEC. 9. Position Titles and Salary Grades.—All

positions in the Positions Classification System, as

determine by the GCG and as approved by the

President, shall be allocated to their proper

position titles and salary grades in accordance

with n Index of Occupational Services, Position

Titles and Salary Grades of the Compensation

and Position Classification System, which shall be

prepared by the GCG and approved by the

President.” (underscoring supplied) [Chapter III, RA 10149, “GOCC

Governance Act of 2011”, 6 June 2011]

IX. COMPENSATION


X. FUNCTIONAL EXPERTISE

SEC. 12. Rank System in the Career Executive Service. – [A CESO shall be appointed in accordance with the rank system, which shall be established and determined by the Board.] THE BOARD SHALL ESTABLISH THE RANK CLASSIFICATION IN THE CES. THE Rank classification shall be based on [proven competence and qualifications] FUNCTIONAL EXPERTISE such as appropriate [academic and professional] EXECUTIVE AND TECHNICAL background, broad levels of responsibility and other relevant considerations as may be prescribed by the Board. THE BOARD SHALL RECOMMEND TO THE PRESIDENT THE CONFERMENT OF CESO RANK TO QUALIFIED CESES ACCORDING TO THE ESTALBISHED RANK CLASSIFICATION SYSTEM.


1. “The mandatory tour of duty not only

interferes with the power of the President

to assign officials to or retain officials in

positions to which they may be best

qualified or effective, but simultaneously

ignores the functional expertise, qualification

and performance of officials in the Career

Executive Service.”(Veto Message of President Benigno

S. Aquino, III, on S. No. 3215/H. No. 6877, 24 May 2013)



2. “e. Assignments, Reassignments and Transfers.

Depending upon their ranks, members of

the Service shall be assigned to occupy

positions Undersecretary, Assistant Secretary,

x x x on the basis of the members’

functional expertise…..” (underscoring original in the case; emphasis supplied) [Cuevas vs. Bacal, G.R No. 139382, 6 December 2000; Item No. 5, Article IV, Part III, Volume I, PD No. 1, otherwise known as the “Integrated Reorganization Plan”, 24 September 1972, as amended]



3. “f. Functional Groupings. Members of the

Career Executive Service shall be

divided into a number of broad

functional groupings based on the

subject matter of specialization, not

on the particular department in which

the work is done.” (underscoring original in the law; emphasis supplied) [Item No. 5, Article IV (Career

Executive Service), Part III (Civil Service), Volume I, Presidential Decree No. 1, otherwise known as the “Integrated Reorganization Plan”, 24 September 1972, as amended]



4. “Skilled in both techniques and

processes of management, these

career executive will act as catalyst for

administrative efficiency and as

agencies of administrative innovation.” (Article IV, Chapter 1, Part III, Summary Justifications and

Supporting Tables, Volume II, PD No. 1, “Reorganizing the Executive Branch of the National Government”, 24 September 1972, as amended)



5. “SECTION 1. Purpose and Number of

Departments. - The Executive Branch

shall have such Departments as are

necessary for the functional distribution

of the work of the President and for the

performance of their functions.” (underscoring supplied) [Chapter I, Book IV – The Executive Branch, Executive Order No. 292 , s. 1987 or the “Administrative Code of 1987”, 25 July 1987, as amended]



(a) x x x

6. “SEC. 39. Secretary’s Authority. – (1) The Secretary shall have supervision and control over the bureaus, offices, and agencies under him, subject to the following guidelines:

(b) With respect to functions involving discretion, experienced judgment or expertise vested by law upon a subordinate agency, control shall be exercised in accordance with said law; and

x x x.” (underscoring supplied) [Chapter 8, Book IV – The Executive Branch,

Executive Order (EO) No. 292 s. 1987, the “Administrative Code of

1987”, 25 July 1987, as amended]



7. “Mandating additional duties and functions

to the President, Vice-President, Cabinet

Members, their deputies or assistants which

are not inconsistent with those already

prescribed by their offices or appointments

by virtue of their special knowledge, expertise

and skill in their respective executive offices is

a practice long-recognized in many

jurisdictions. . . .




7. It is a practice justified by the demands of

efficiency, policy direction, continuity and

coordination among the different offices

in the Executive Branch in the discharge

of its multifarious tasks of executing and

implementing laws affecting national interest

and general welfare and delivering basic

services to the people.”’(underscoring supplied) [Civil Liberties Union vs. Executive Secretary, G.R. No. 83896, 22 February 1991]


8. “Factual findings of administrative agencies

are generally respected and even accorded

finality because of the special knowledge and

expertise gained by these agencies from

handling matters falling under their specialized

jurisdiction.” (underscoring supplied) [Modesto vs. Urbina, G.R.

No. 189859, 18 October 2010]











degree. x x x.” [underscoring supplied] (Senate and House of Representatives Joint Resolution No. No. 4, “Joint Resolution Authorizing the President of the Philippines to Modify the Compensation and Position Classification System of Civilian Personnel and the Base Pay Schedule of Military and Uniformed Personnel in the Government, and for Other Purposes”, 17 June 2009)



10. “’Section 4. Fundamental principles. – Financial

transactions and operations of any government

agency shall be governed by the fundamental

principles set forth hereunder, to wit:

(8) Generally accepted principles and

practices of accounting as well as of sound

management and fiscal administration shall be

observed, provided that they do not contravene

existing laws and regulations.’”(underscoring supplied) [Yap

x x x

vs. Commission on Audit, G.R. No. 158562, April 23, 2010, quoting Presidential Decree (PD) No. 1445, the “Government Auditing Code of the Philippines”, 11 June 1978, as amended]



11. “’[F]ailed to uphold the law and provide

a sound legal assistance and support to

the mayor in carrying out the delivery of

basic services and provisions of adequate

facilities when he advised [the mayor] to

proceed with the construction of the subject

projects without prior competitive bidding.’” [underscoring supplied; words in parentheses in the case] (Salumbides vs. Ombudsman, G.R. No. 180917, April 23, 2010)



12. “Occupying an executive position, respondent

is required to exercise diligence in the highest

degree in the performance of his duties.

Respondent cannot pass responsibility to other

Division which in the first place, he has

supervision and control of, pursuant to Section

31 of RA 4850.” (underscoring supplied) [Office of the President

vs. Cataquiz, G.R. No. 183445, September 14, 2011]



13. “In signing the contract, without verifying

compliance of existing laws, respondent falls

short of the required competence expected

of him in the performance of his official

functions. Incompetence, has been defined

as ‘lack of ability, legal qualification or fitness

to discharge the required duty; want of

physical or intellectual or moral fitness.’” (underscoring supplied) [Office of the President vs. Cataquiz, G.R. No. 183445, September 14, 2011]



14. ”SEC. 19. Fiduciary Duties of the

Board and Officers. – x x x

(underscoring supplied) [Chapter IV, Republic Act 10149,

“GOCC Governance Act of 2011”, 6 June 2011]

(b) Act with due care,

extraordinary diligence, skill and good

faith in the conduct of the business of

the GOCC;

x x x

x x x.”



15. ”SEC. 21. Care, Diligence and Skill in the

Conduct of the Business of the GOCC. -

The members of the Board and the Officers

must exercise extraordinary diligence in the

conduct of the business and in dealing with

the properties of the GOCC. Such degree of

diligence requires using the utmost diligence

of very cautious person with due regard for

all circumstances.” (underscoring supplied) [Chapter IV,

Republic Act 10149, “GOCC Governance Act of 2011”, 6 June

2011]



16. “SECTION 1. Definition of Terms. – x x x

x x x

‘Extraordinary Diligence’ x x x when

Directors and Officers act using the utmost

diligence of a very cautious person taking

into serious consideration all the prevailing

circumstances and Material Facts, giving

due regard to the legitimate interests of all

affected Stakeholders.’

x x x.” [GCG Memorandum Circular No. 2012-07, “Code of Corporate Governance for GOCCs”, 28 November 2012, citing Sections 19 and 21 of RA No. 10149, “GOCC Governance Act of 2011”, 6 June 2011]



17. “SECTION 1. Definition of Terms. – x x x

x x x

‘Material Information’ (‘Material Fact’) x x x

important in determining whether: (1) to buy, sell,

hold or otherwise transact with the securities issued

by a GOCC; or (2) to the exercise with reasonable

prudence voting rights related to securities held

with such GOCC, or relating to corporate acts,

contracts and transactions which would adversely

affect the operations of the GOCC.

(underscoring supplied) [GCG Memorandum Circular No. 2012-07, “Code of Corporate Governance for GOCCs”, 28 November 2012, citing Rule 3, Implementing Rules and Regulations to the Securities Regulation Code, as amended, 13 February 2004]

x x x.”



18. ”SEC. 26. Duty of Diligence. – x x x

x x x

Every Director or Officer, by the act of

accepting such position in the GOCC, affirms

and agrees: (1) to have a working knowledge

of the statutory and regulatory requirements

affecting the GOCC x x x and (2) to always

keep himself informed of industry developments

and business trends in order to safeguard the

GOCC’s interests and preserve its competitiveness.” [GCG Memorandum Circular No. 2012-07, “Code of Corporate Governance for GOCCs”, 28 November 2012]



19. “[P]etitioner cannot find solace in the defense

of good faith since not only are senior

government officials, such as the petitioner’s

concerned officials herein, expected to

update their knowledge on laws that may

affect the performance of their functions, but

the laws subject of this case are of such clarity

that the concerned officials could not have

mistaken one for the other.” (underscoring supplied) [Development Bank of the Philippines vs. COA, G.R. No. 202733, September, 30, 2014]



20. “We find it rather difficult to believe that

officials holding positions of such rank and

stature, as Chairman x x x and Director x x x,

in this case, would fail to comply with a plain

and uncomplicated order, which has long

been in effect as early as 1995, almost

a decade before their respective travels.” [Development Bank of the Philippines vs. COA, G.R. No. 202733,

September, 30, 2014]



21. “We have tasked the DOST to assemble a

body of experts who can critically assess

supplier’s pitches x x x Our operating

principles: the right identification of the

root of the problem; the careful study

and deliberation, grounded on correct

methodology, to arrive at the best

solution.” (Transcript of the President’s Speech [English Version] during the Fourth State of the Nation Address, 22 July 2013)



XI. MOBILITY

SEC. 15. Mobility in the Career Executive Service. – A CESO may be assigned to any

position in the System without diminution in rank

and salary BASED ON FUNCTIONAL EXPERTISE. The

tour of duty of a CESO [shall] MAY be for a period

of three (3) years. During this period, the CESO

shall not be transferred to another office or

position without consent. [In filling a vacancy, the

head of the agency shall give preference and

priority to those who have been appointed to

rank or conferred CES eligibility. The Board shall

provide information on vacancies, an updated

list of available qualified persons who may be

assigned, and such other mechanisms to assist

the head of agency in the process of selection.]


1. “The mandatory tour of duty not only

interferes with the power of the President to

assign officials to or retain officials in

positions to which they may be best

qualified or effective, but simultaneously

ignores the functional expertise, qualification

and performance of officials in the Career

Executive Service.” (Veto Message of President Benigno

S. Aquino, III, on S. No. 3215/H. No. 6877, 24 May 2013)

XI. MOBILITY


2. “SEC. 2. Declaration of Policy. – It is the

policy of the State under Article IX, B.

Section 3 1987 Philippine Constitution to

establish a career service and to provide

the public sector with a well-selected and

development-oriented corps of public

managers who posses the necessary

expertise and responsive leadership x x x.” (underscoring supplied) [Committee on Civil Service and

Government Reorganization draft version on “Career

Executive Service Act of 2014”]

XI. MOBILITY


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