Republic of the Philippines - Philippine Center for ...pcij.org/blog/wp-docs/MikeLuz2.pdf ·...
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REPUBLIC OF THE PHILIPPINES CIVIL SERVICE COMMISSION Constitution Hills, Quezon City
JUAN MIGUEL LUZ, Appellant, -versus- Case No. THE EXECUTIVE SECRETARY EDUARDO ERMITA, Appellee. x------------------------------------------x
Prefatory Statement
Integrity, competence, love of country and dedication to public
service are qualities expected of all public servants. Yet, those who
possess these are often not only unrewarded, but also punished for
standing up for their principles. In a government where politics can kill
a public servant’s dedication and enthusiasm for service, the principles
of merit, fitness, and security of tenure as well as the rules of the Civil
Service Commission are often on a collision course with the demands of
politics and politicians.
This Appeal by Juan Miguel Luz is a classic case of a good and
honest civil servant, a Career Service Executive Officer, who suffers the
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punishment of termination and later, a transfer, from no less than the
Office of the President for refusing to perform an unlawful act and for
doing what he believed was right.
The Appellant files this Appeal in the fervent hope that the
resolution of the issues in this case will enrich law and jurisprudence,
instill belief in justice and fairness and inspire the few who remain
vigilant in their fight against corruption.
The Case
This is an appeal from the Order of the Honorable Executive
Secretary reassigning Appellant Juan Miguel Luz, a Career Service
Executive Officer and Undersecretary, Finance & Administration of the
Department of Education (hereafter called “DepED”), to the Department
of Labor and Employment (hereafter called “DOLE”).
Timeliness of the Appeal
The Appellant received a copy of the Memorandum of the Appellee
Executive Secretary Eduardo Ermita (hereafter called “Executive
Secretary”) on 04 October 2005, hence this Appeal is being filed on time.
A certified true copy of this memorandum is attached as Annex “A”.
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The Parties
APPELLANT Juan Miguel Luz (hereafter called “Appellant”) is a
Filipino, of legal age, residing at 326 St. Joseph Street, North Concha
Cruz Circle, B.F. Executive Homes, Las Pinas City. He is a Career Service
Officer (CESO) and is fully qualified for the position of Undersecretary of
Education (Finance & Administration) which he is currently occupying.
A certified true copy of his CESO certification is attached as Annex “B”.
Appellant may be served with copies of pleadings, notices, orders and
other issuances of this Honorable Office through undersigned counsel.
APPELLEE Eduardo Ermita (hereafter referred to as the “Appellee”)
is the Executive Secretary who signed the order reassigning the Appellant
to the DOLE.
Facts of the Case
The Appellant’s Qualifications
1. Appellant has sterling qualifications for the position of
Undersecretary of the DepED. His previous employment with
Government prior to his position in the DepED was with the Presidential
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Management Staff (Office of the President) during the Administration of
President Corazon C. Aquino. Outside of government, the Appellant was
the associate director of Philippine Business for Social Progress
(hereafter referred to as “PBSP”), the largest social development NGO in
the country, and in was a professor at the Asian Institute of
Management, one of Asia’s leading business schools.
2. As the associate director of PBSP from 1985-87 and 1993-95,
he headed training, research and programs development and organized
and led the team that drafted the management plan for the Third
Elementary Education Project (TEEP) of the Department of Education,
Culture and Sports funded by the World Bank.
3. In 1987, he was appointed Presidential Staff Director of the
Presidential Management Staff in the Office of the Presient (hereafter
referred to as “PMS”) during the administration of President Corazon C.
Aquino, where he stayed until mid-1991. As head of the Regional
Operations Group and the Political Affairs Group, he worked on a
number of major projects including local government autonomy and the
establishment of the Autonomous Region in Muslim Mindanao. Because
of his experience with PBSP, he was tasked with setting up the newly
created President’s Social Fund (PSF), the source of the post-dated
checks that figured in the events antecedent to the Appellant’s
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“termination” and subsequent reassignment from the DepED to the
Department of Labor and Employment (“DOLE”).
4. In January 1991, Appellant became a Career Executive Service
Officer upon the general instruction of President Aquino that all
presidential appointees secure a CESO eligibility and rank to shield them
from the vagaries of political processes and changes in presidential
administrations and their particular concerns related to appointments.
(See Annex “B” hereof.)
5. After four years in government, Appellant returned to the
private sector. From 1995-97, he was vice president for corporate affairs
at the Far East Bank and Trust Company. From 1998 to February 2002,
he served as director of operations of the APEC Business Advisory
Council, the private sector advisory body to the APEC Leaders.
Concurrently, he was also an Associate Professor at the Asian Institute of
Management from 1997 to 2002.
6. As part of his community work, the Appellant served as
executive director of the Philippine National Museum Foundation, a
private sector foundation that raised funds for the renovation of the
National Museum in time for the country’s Centennial celebrations in
1998. He also served as trustee of the Heritage Conservation Society of
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the Philippines for two terms and is currently a trustee of Museo
Pambata ng Pilipinas.
7. With a Bachelor’s Degree in Liberal Arts from St. Mary’s College
of California1 , a La Salle Christian Brothers institution, and a Master’s
Degree in Public Administration from the John F. Kennedy School of
Government, Harvard University,2 Appellant has expertise in the fields of
community development, government policy, business strategy and
administration, and education management. This is the reason why
former DepED Secretary Edilberto de Jesus invited him to rejoin
government as Undersecretary of Education in late 2002. Appellant
accepted the offer because he wanted to serve his country by
contributing to reforms in the DepED, which in the mid-to-late-1990s
had the reputation of being one of the most corrupt agencies in
government.
8. Appellant reactivated his CESO rank as confirmed by the
Career Executive Service Board. He took charge of the Finance and
Administration of the DepED in November 2002. After Secretary de
Jesus left the DepED in August 2004, the Appellant continued to serve
1 He graduated magna cum laude and garnered two awards for academic excellence – James L. Hagerty Award (School of Liberal Arts) and St. Thomas Aquinas Award (Integral Program). 2 He was an Edward S. Mason Fellow in International Development.
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under former Secretary Florencio B. Abad and OIC Secretaries Ramon C.
Bacani and Fe A. Hidalgo, successively.
Appellant’s contributions to reform in the DepED
9. Appellant carried out major reforms in the areas of finance and
management systems. Notable among these were:
• Providing direct funding releases from the National
Treasury to fiscally-autonomous high schools and
school divisions through the Direct Release System;
• Establishing the DepED Procurement Service;
• Drafting of a new textbook policy, as well as designing
and organizing the National Textbook Delivery Program
to ensure the timely delivery of over 50 million quality
textbooks to close to 42,000 elementary schools;
• Decentralizing the payroll service of elementary school
teachers;
• Fixing the automatic payroll deduction system;
• Re-engineering the Department’s Provident Funds3 in
order to have a professional system
• Forming Brigada Eskwela (National Schools
Maintenance Week), a project undertaking minor
3 The Department Provident Fund has a nationwide portfolio of P1.1 Billion in 16 regions)
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repairs of schools involving various school
stakeholders, the local community, local government
units and the private sector. Brigada Eskwela
significantly minimized problems encountered during
school openings
10. Since 2002, education reforms, both in terms of financial
management and support to academic programs of schools, have helped
establish the image of the Department of Education as one of the five
least corrupt national agencies in the Social Weather Stations’ annual
Enterprise Survey. This has been cause for great pride in DepED
considering that it was formerly one of most corrupt agencies in the
survey prior to that period.4
11. In sum, the Appellant is a highly-educated, competent,
honest, and dedicated public servant. His knowledge, competence and
integrity enabled him to generate significant financial and material
support from the private sector for schools under the Department’s
Adopt-a-School program.
4 During the entire PGMA Administration, no procurement, personnel or financial scandal has rocked the Department. The lone scandal attributed to the Department involved a controversial error-laden textbook procured a decade ago but which are still in the schools. The Department recalled the textbook and put in place a tighter textbook evaluation process to prevent such errors from recurring in public school textbooks in the future.
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12. Then came a defining moment in the Appellant’s career in the
DepED. His integrity was put to a test when he was asked to accept
post-dated checks amounting to P 20 Million from the Office of the
President purportedly intended for a scholarship program of a
congressman. Believing that these were against government accounting
and auditing rules as they were devoid of documentation, he refused to
do what he considered as highly irregular and contrary to law. On
September 9, 2005, the Appellant decided to do the right thing and
returned the checks to Malacanang. As the events unfolded,
Malacanang lost no time in punishing him.
Terminated by Malacanang
13. Appellant’s worries started on 13 September 2005, when his
office received a letter from the Executive Secretary that read: “We wish
to thank you for your services as Undersecretary, Department of
Education, effective immediately”. A copy of this letter is attached as
Annex “C”. Stunned by what was apparently a termination letter, he
sent a query to the Civil Service Commission on 20 September 2005
asking whether or not he was terminated and if such was proper. A copy
of this letter is attached as Annex “D”.
14. On 21 September 2005 Civil Service Commission (hereafter
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referred to as “CSC”) Chairperson Karina Constantino-David wrote him a
letter stating that:
“For an undersecretary position, the qualifications are: Bachelor’s degree, three (3) years supervisory experience and Career Service Executive Eligibility (CSEE) or Career Executive Eligibility (CESE). Considering that you have met all the said requirements, the status of your appointment is permanent. As such, you have security of tenure to the said position. As a permanent official, you cannot be removed from your position by virtue of a mere letter. You may only be removed for cause as provided for by law, and after due process. Considering that the termination letter did not mention any cause or reason for your termination, it is obvious that the Office of the President was working under the mistaken assumption that your appointment was not permanent and thus, you may be separated from the service anytime or at a moment’s notice.”
A copy of Chairperson Karina Constantino-David’s letter is attached as
Annex “E”.
15. On the same date, also responding to Appellant’s query,
Career Executive Service Board (hereafter referred to as “CESB”)
Executive Director Mary Ann Fernandez-Mendoza replied that since the
Appellant did not resign from his position, the letter from the Office of
the President could not be taken to mean termination from the service,
and that the Appellant may continue performing his functions as
Undersecretary of DepED. A copy of this letter is attached as Annex “F”.
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16. Appellant immediately prepared a letter informing the Office of
the President that he was going to continue to perform his duties and
functions as Undersecretary of DepED with no disrespect intended, and
his concerns were focused principally on continuing and expanding
education reforms. A copy of this letter is attached as Annex “G”.
17. Two days later, on 23 September 2005, Malacañang
announced to the media that appellant had been “terminated as
undersecretary (of education) but not as a CESO.” This was modified as
to be “a reassignment to some other government position of same rank.”
This was again modified by the Press Secretary, who stated that
Appellant had resigned as Undersecretary. On the evening of 26
September 2005, the Press Secretary was heard on radio stating that
appellant was being allowed to stay as Undersecretary of education.
Copies of the newspaper clippings are attached as Annexes “H”, “H-1”,
and “H-2”.
18. On 4 October 2005, Appellant received a Memorandum from
the Appellee dated that same day that read: “In the exigency of service,
you are hereby re-assigned from the Department of Education (DepED) to
the Department of Labor and Employment (DOLE) to a position at least
commensurate to your Career Executive Service (CES) rank.” (See
Annex “A”)
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Malacanang’s post dated checques
19. The termination letter of the Executive Secretary received on
13 September 2005 and the Memorandum dated 4 October 2005 were no
doubt sparked by the refusal of the Appellant to accept the POST-DATED
checks from the President’s Social Fund (hereafter referred to as “PSF”)
which were intended for the scholarship program of Congressman
Antonio Diaz (2nd District, Zambales).
20. On 23 August 2005, the DepED received a letter from
Congressman Diaz stating that President Arroyo had approved P20
Million from the PSF to be used for the congressman’s scholarship fund
in the 2nd District of Zambales. Included in the letter was the first P5
Million as a handwritten check drawn against an unmarked non-
commercial account in the Land Bank branch in Malacañang. A copy of
this letter and the proof that this check was deposited to the DepED
OSEC Trust Account is attached as Annexes “I” and “I-1.”
21. The DepED’s Chief Accountant, Mrs. Olivia San Pablo,
immediately called the Appellant to ask what to do with the check.
Baffled, he requested her to show him the check signed by Deputy
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Executive Secretary (DES) Susana Vargas with the handwritten amount
and name of the payee, the Department of Education. The check was
dated 21 August 2005, a Sunday.
22. Incredulous that Malacañang would issue such a handwritten
check, Appellant asked the accountant to call the office of DES Vargas to
inquire if this was in fact a genuine check. After Mrs. San Pablo reported
to him that the Office of the President confirmed the existence of the
check, the Appellant then called Congressman Diaz’s Chief of Political
Affairs staff, Ms. Cora Maestre, to inquire about the purpose of the
amount and the manner of the disbursement. According to Ms.
Maestre, the fund was to be distributed as “scholarship assistance” given
to each public high school student in the congressman’s district at a rate
of P350 per student, notwithstanding the fact that public education is
free and requires no payment of fees.
23. The Appellant was then told that the P5 Million should be
transferred to the Zambales division office which would, in turn, release
the money to the congressman’s office which would then distribute the
same to the student beneficiaries directly. To liquidate this amount, each
student was to have signed a list similar to a teachers payroll list when
the latter receive their payslips and paychecks from the division.
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24. In a telephone conversation, DES Vargas told the Appellant
that she was not privy to the President’s decisions on the PSF but that
the Fund was disbursed solely at the discretion of the President. Hence,
she continued, the scholarship project as discussed by the congressman
must have been in accordance with the President’s instructions.
25. Upon the request of DES Vargas, Appellant agreed to have the
first P5 Million check deposited into the DepED central office trust fund
but then instructed Ms. San Pablo, DepED chief accountant, not to
transfer any funds to the Division of Zambales until the Department
received in writing a clear program of work and the process of
disbursement and liquidation from the congressman’s office.
26. On 2 September 2005, three similar checks of equal amount
(P5.0 M each) were forwarded to the DepED accounting office from the
Presidential Management Staff for deposit and transfer to the same
division of Zambales. The dates on these post-dated checks were 3
September 2005, 3 December 2005, and 3 March 2006. A certified true
copy of these checks are attached as Annexes “J”. The Appellant
noticed that all three were similarly handwritten as the first check in
August though they now bore two signatures, those of DES Susana
Vargas and Erlinda Bautista de Leon as head of the PSF.
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27. The DepED accountant reported to the Appellant that there
was no accompanying documentation with the checks, neither a Special
Allotment Release Order (SARO)5 nor a Notice of Cash Allocation (NCA)6.
Moreover, upon checking with both the Department of Budget and
Management (DBM) and the Commission on Audit (COA), she confirmed
that the acceptance of post-dated checks are against government rules
on accounting and auditing procedures. Upon the request of the
Appellant in a letter dated 06 September 2005, COA Assistant
Commissioner Arcadio Cuenco wrote a letter stating that:
“Please be informed that the issuance and/or receipt of post-dated checks by government agencies is prohibited under GAO Circular No. 68-110 dated October 10, 1968 pertinent portion of which states:
‘Checks presented for payment must be drawn by the payor himself and made payable to the agency or head of agency… Under no circumstance shall the following checks be accepted: (a) checks drawn payable to the name of the agency head or any of its officers, (b) indorsed checks, (c) postdated checks, (d) stale checks, and (e) out-of-town checks, except those which are drawn by the Government or its instrumentalities.’ ” (emphasis supplied)
A certified copy of the letter of the to COA is attached as Annex
“K”. A certified copy of the letter of the Commission on Audit to the
Appellant is attached as Annex “L”. 5 The SARO is the notice from the DBM to a department that informs the latter that funds are now allotted and can be obligated. In effect, the SARO provides the department with the authority to spend funds. 6 The NCA is the notice from the DBM that the cash has been deposited or transferred to the account of the department and can be drawn against. Only at this point in time can a check be prepared and/or released to the payee.
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28. On 6 September 2005, the Appellant received a letter from
Congressman Antonio Diaz dated 5 September 2005 requesting for the
transfer of the two cleared checks (21 August 2005 and 3 September
2005) from the DepED central office trust account to the DepED
Division Office of Iba, Zambales. A certified true copy of this letter is
attached as Annex “ M”.
29. Appellant called DES Vargas on 7 September 2005 to inquire
about the post-dated checks she signed personally delivered by the
congressman’s staff. Her reply was startling. She sounded perplexed by
the Appellant’s query and asked what the dates were on the checks.
When asked why she did not know the dates on the checks being the
signatory, she told the Appellant that she usually pre-signed blank
checks for the PSF but would give these directly to the President. She
said she was not privy thereafter to the details of the checks nor of the
projects for which they were intended. Furthermore, she could not
understand nor explain why two of the checks would be post-dated.
30. On the same day the DepED Chief Accountant called the
Appellant with another urgent matter. The Presidential Management
Staff called her and Mr. Mandy Ruiz, the department’s Chief Budget
Officer, to inquire if another PSF check could be deposited directly to the
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division of Zamboanga del Sur for the projects of Congressman Isidro
Real, thus by-passing the central office in an effort to cut down on the
overall “processing time” for the check.
31. On 08 September 2005, Ms. Maestre of Congressman Diaz’s
office came to inquire if DepEd had deposited the first two checks and if
these could already be transferred to the division office. The Appellant,
not wanting to veer from the proper accounting and auditing procedures,
decided to return the four checks to the President’s Social Fund
including the first one (21 August 2005) already deposited into the
DepED central office trust account and called the department’s Chief
Accountant, Chief Budget Officer and Cashier to his office. The official
receipt for the second check (3 September 2005) was cancelled since this
official receipt had not yet been given to the Office of the President/PMS
and the check had yet to be deposited into the department’s trust
account.
32. Early on 9 September 2005, Friday, a staff of PMS was in the
Appellant’s office waiting to pick up the three checks. The appellant
called Director Marietta Tamondong of the Presidential Management Staff
and informed her that the amount in the first check which had already
been deposited would likewise be returned to PSF but through a DepED
check. A certified copy of the letter documenting the return of the checks
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is attached as Annex “N”. That same day, Appellant informed OIC-
Secretary Fe Hidalgo of these developments and she concurred with his
decision.
33. The day before, Ms. Yvonne Chua of the Philippine Center for
Investigative Journalism (hereafter referred to as “PCIJ”), having heard of
the post-dated checks from her “Malacañang source,” came to see the
Appellant to confirm if there were in fact such checks received by the
Department. This was confirmed by the Appellant. On 11 September
2005, Sunday, she posted the story on the PCIJ weblog site which
became a source of news for other media organizations.
34. Deciding to return all of the checks that constituted the P20M
grant given to Congressman Diaz by the President through the
President’s Social Fund, the Appellant, on 10 September 2005 cancelled
the Disbursement Voucher for the first P5.0 M and instructed Mrs. San
Pablo, chief accountant, to return the amount to the PSF using a DepED
check. A certified copy of the cancelled voucher with the Appellant’s
marginal note (written instructions) is attached as Annex “O”.
35. On 12 September 2005, the Appellant left for the United
States for a conference in New York City. That same day, the PCIJ blog
appeared in the Philippine Star. While the Appellant was in the United
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States, OIC-Secretary Fe Hidalgo received a letter from Cong. Antonio
Diaz dated 13 September requesting for the release of the first P5.0 M
(date 21 August 2005). This was eventually released upon the
instructions of OIC-Secretary Hidalgo. A certified true copy of Cong. Diaz’
letter is attached as Annex “P. After the release of this amount, the
DepED received a Deed of Donation for the same P5.0M signed by
Cabinet Secretary Ricardo Saludo and Undersecretary Ramon Bacani of
the DepED, notarized on 15 September 2005. A certified copy of this
Deed of Donation is attached as Annex “Q”.
36. The next day, on 13 September 2005, the DepED received the
letter of termination of the Appellant from the Executive Secretary. The
OIC-Secretary called the Appellant on 16 September 2005 while he was
still in New York to relay the news. It will be noted that the letter of
Cong. Diaz (See Annex N) was received by the DepEd on that same day,
13 September 2005.
37. On 4 October 2006, Appellant received a Memorandum signed
by Executive Secretary Eduardo Ermita “reassigning” him to the
Department of Labor and Employment (DOLE), without specifying a
position or a definite period. On the same day, the Appellant received a
letter from DOLE Secretary Patricia Santo Tomas dated 23 September
2005, stating that since the Appellant was being moved from the DepED,
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she was requesting that he be reassigned to her department. A certified
true copy of this letter is attached as Annex “R”.
38. Hence, the Appellant files this Appeal contesting his
reassignment to the DOLE.
Arguments/Issues
I.
APPELLANT WAS CONSTRUCTIVELY DISMISSED
II. THE ORDER REASSIGNING THE APPELLANT TO THE DOLE WAS DONE WITH GRAVE ABUSE OF DISCRETION, THEREFORE UNLAWFUL Appellant, a CESO, may be reassigned or transferred only if the following requirements are met: a) the reassignment or transfer must be in the interest of public service, b) without reduction in rank or salary, and c) no reassignment or transfer may be made oftener than every two years, d) the reassignment or transfer must be effected only upon the availability of a corresponding position.
III.
APPELLANT’S TRANSFER WAS DONE IN BAD FAITH, AND OBVIOUSLY FOR POLITICAL REASONS
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D i s c u s s i o n
I. Appellant was constructively dismissed
39. The 4 October 2005 Memorandum mandating the transfer of
Appellant states that :
“In the exigency of service, you are hereby re-assigned from the Department of Education (DepEd) to the Department of Labor and Employment (DOLE) to a position at least commensurate to your Career Executive Service rank.” (Emphasis supplied)
40. The Memorandum, although purportedly merely reassigning
the Appellant to the DOLE, was obviously meant to kick him out of
DepED because of his refusal to tow Malacanang’s line. Especially when
viewed in the context of the antecedent facts, this “transfer” or
“reassignment” is in reality a constructive dismissal because the
Memorandum does not specify what position the Appellant will occupy in
the DOLE and for how long he would be reassigned there.
41. Furthermore, there is at present no vacant or available position
of Undersecretary in the DOLE. Without such a position, the apparent
intent of Malacanang is to “float” the Appellant as a punishment, which
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is not allowed by the Civil Service Commission (See, CSC Resolution No.
548, Aug. 10, 2004). Because the purpose of the transfer order was to
put Appellant on “floating” status, the Appellant is deemed to be have
been constructively dismissed. This especially so since the Appellant
would then find his situation in the DOLE intolerable and humiliating
such that he would have to eventually resign from the government
service.
42. The Constitution guarantees that no officer or employee in the
Civil Service shall be dismissed except for cause as provided by law.7
This was blatantly violated by the Appellee, and his gross bad faith,
driven by political motive, is clear from the antecedent facts.
Furthermore, the Supreme Court has held in the case of Pastor vs. Pasig8
that an indefinite assignment, such as that of Appellant, is tantamount
to a constructive dismissal. In said case, petitioner, a budget officer, was
assigned to Office of the Municipal Administrator indefinitely. Her
assignment was allegedly pending the investigation of reports that she
issued advice of allotments without sufficient cash collection. In her ten-
year assignment, however, no investigation therefore was ever conducted.
The Supreme Court found such indefinite assignment as a form of
constructive dismissal which left petitioner virtually on a floating status.
Moreover, the Supreme Court held that an employee’s illegal removal
7 Art. IX-B, Sec. 2(3), 1987 Constitution. 8 382 SCRA 232 (2002).
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cannot be carried out in the guise of a transfer for the good of public
service, thus:
“There is no question that we recognize the validity and indispensable necessity of the well established rule that for the good of public service and whenever public interest demands, [a] public official may be temporarily assigned or detailed to other duties even over his objection without necessarily violating his fundamental and legal rights to security of tenure in the civil service. But as we have already stated, “such cannot be undertaken when the transfer of the employee is with a view to his removal” and “if the transfer is resorted to as a scheme to lure the employee away from his permanent position” because “such attitude is improper as it would in effect result in a circumvention of the prohibition which safeguards the tenure of office of those who are in the civil service.”9
43. Similarly, in Gloria vs. Court of Appeals10 and Padolino vs.
Fernandez,11 the Supreme Court held that an indefinite assignment, i.e.
one which does not indicate a particular duration or does not appear to
be temporary, violates a civil servant’s security of tenure.
44. In addition, in Bentain vs. Court of Appeals,12 the Supreme
Court did not hesitate to declare a transfer motivated by purposes other
than the exigencies of public interest as tantamount to an illegal
dismissal. In the said case, petitioner, the Chief Security Officer of the
University of the Philippines was indefinitely assigned to work full time
on the UP Police Force operationalization project. After completing his
9 Citing Cruz. Vs. Navarro, 66 SCRA 79, 90 (1975). 10 338 SCRA 5. 11 342 SCRA 442. 12 G.R. No. 89452, June 9, 1992.
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work in the said project and after the university legal counsel
recommended that he be restored to his position as Chief Security
Officer, said position was immediately abolished. Noting the timeliness of
the abolition, the Supreme Court properly concluded that the order was
“issued to prevent petitioner from returning to his former position” and
ruled:
While a temporary transfer or assignment of personnel
is permissible even without the employee’s prior consent, it cannot be done when the transfer is a preliminary step toward his removal, or is a scheme to lure him away from his permanent position, or designed to indirectly terminate his service, or force his resignation. Such transfer would in effect circumvent the provision which safeguards the tenure of office of those who are in the Civil Service.”13
II. The order reassigning the Appellant to the DOLE was done with grave abuse of discretion, therefore unlawful.
45. Appellee cannot justify his action on the pretext that
Appellant’s transfer is covered by the mobility principle sanctioned by
this Honorable Commission. While we can grant that CESOs may be
transferred, this can only be done if several requirements are met, and
always in good faith. While the Appellee has the authority to transfer a
CESO, he cannot do so in grave abuse of discretion. The application of
13 Citing Sta. Maria vs. Lopez, 31 SCRA 651; Garcia vs. Lejano, 109 Phil. 116.
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the mobility principle to CESOs was specifically laid down in the Revised
Policy on Security of Tenure in the Career Executive Service (“Revised
Policy”),14 to wit:
“RESOLVED FURTHER, that notwithstanding the permanent status of appointment of a third level official, he/she is covered by the mobility principle enshrined under Article IV, Part III of the Integrated Reorganizational Plan, as approved by Presidential Decree No. 1, as amended, dated September 24, 1972, quoted herein as follows:
‘e. Assignments, Reassignments and Transfers
x x x x x x x x x Any provision of law to the contrary notwithstanding, members of the Career Executive Service may be reassigned or transferred from one position to another; provided that such reassignment or transfer is made in the interest of public service and involves no reduction in rank or salary; provided, further, that no member shall be reassigned or transferred oftener than every two years.’
RESOLVED FURTHERMORE, to ensure compliance to (sic) the above-quoted mobility principle, reassignment or transfer shall be effected only upon the availability of the corresponding position, it being understood that a “floating status” is not within the contemplation of this principle. Assignment to a CESO pool shall not be considered as a floating status.” (Emphasis supplied)
46. Based on the foregoing resolution, the reassignment or transfer
of a CESO must comply with the following requisites:
a. It must be made in the interest of public service; 14 Career Executive Service Board Resolution No. 548, August 10, 2004.
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b. It must involve no reduction in rank or salary;
c. It must not be made within two years from the employee’s
last transfer or reassignment; and
d. It must be effected only upon the availability of a
corresponding position.
47. The Office of the President, represented by the Appellee,
miserably failed to satisfy the first and the fourth requisite. Worse, its
action reeks of the unmistakable smell of malice. The Appellee’s mere
invocation of the clause “in the exigency of service” does not make the
Appellant’s transfer lawful, in the absence of any convincing proof
thereof. The burden of proof is on the part of the Appellee who seeks to
deprive the Appellant of his work, his right to property.
48. That Appellant is purportedly needed at the DOLE, as
Secretary Patricia Sto. Tomas claims in her letter to Appellee, is NOT an
“exigency of service” which warrants Appellant’s transfer. Secretary Sto.
Tomas’ letter itself belies any pretense that the transfer order of the
Appellant was in the interest of public service. On the contrary, said
letter acknowledges that Appellee already sought to remove Appellant
from the DepED from the very start, and upon knowing the same,
Secretary Sto. Tomas requested that the Appellant be transferred to her
department, perhaps intending to make the transfer less painful for the
Appellant, or at least, so that he has a friendly Secretary to work with,
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considering that she and the Appellant are both alumni of the Kennedy
School of Government.
49. In fact, Secretary Sto. Tomas made the request to the Appellee
only because she had been informed of Appellant’s removal from the
DepEd. Obviously, the DOLE Secretary’s alleged request is a mere
afterthought intended to subterfuge Appellee’s original plan to get rid of
Appellant.
50. The reassignment of the Appellant therefore, can in no way be
seen as “in the interest of public service.” The truth is, the public will be
better served if Appellant remains as DepEd Undersecretary. The Office
of the President is well aware that until now, the DepED is without a
Secretary. DepED is mandated to have four (4) undersecretaries and four
(4) assistant secretaries.15 However, DepEd presently has only three (3)
undersecretaries, only two (2) of whom are functioning as such since the
third is the officer-in-charge of the department. Of the two functioning
undersecretaries, one is co-terminus or non-career.
51. On the other hand, the DOLE has three (3) career
undersecretaries, one of whom assumed office only last 30 September
2005. There is no vacant or available Undersecretary position in the
DOLE. In addition, DOLE is allowed three (3) plantilla Assistant
Secretary positions, two (2) of which are already filled-up. 15 Republic Act No. 9155, Governance of Basic Education Act of 2001.
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52. The fourth requisite for a lawful transfer of a CESO was
likewise violated by the Appellee. If the Appellant is transferred to
DOLE, he will be placed in a humiliating situation because he will not get
the same rank and status of Undersecretary. Given the situation of both
departments, how can the DOLE’s need for Appellant’s services take
priority over that of the DepEd?
53. Moreover, the Office of the President could not possibly be
blind to the successful reforms spearheaded by the Appellant in the
DepEd, particularly on fiscal and administrative management. With
Appellant’s outstanding performance, his transfer to another department
with a completely different and unrelated function for which he was not
trained all the more becomes illogical.
54. It is therefore not difficult to conclude that Appellant’s honesty,
professionalism and independence in the performance of his duties as
the Undersecretary in charge of the finances of the government agency
with the biggest budget, having P112 Billion as of 2004, prompted the
Office of the President to underhandedly remove him from the DepEd.
And for what purpose? Not only to punish him, but to serve also as a
lesson to others who may be of like mind.
55. While the transfer of Career Executive Service Officers is
allowed, this can be lawfully done only if the above-mentioned
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requirements are existing, and always in good faith. We can be guided
by a case with similar issues involving the transfer of Atty. Virgina L.
Trinidad, CESO IV, who was an Assistant Commissioner in the Bureau of
Internal Revenue, who was reassigned to a position that does not exist.
In the case of Trinidad, Virginia L. Re Appeal, Reassignment, the CSC
ruled in favor of the Appellant in its Resolution No. 030669 ( 10 June
2003), stating that:
“ While it is true that reassignment is a management prerogative which the Commission does not normally interfere with, the same is true only, as held in CSC Resolution No. 96-3651, absent the showing of grave abuse of discretion. In other words, grave abuse of discretion must be clearly shown in order that the Commission may take up the cudgels for the employee reassigned (MONTIEL, Rolando, CSC Resolution No. 94-1006, February 17, 1994. The authority under the law is not intended as a convenient weapon for the appointing authority to harass or oppress a subordinate on the pretext of advancing and promoting public interest (INHAYES, Oscar J., CSC Resolution No. 98-16-08, June 24, 1998).”
III. Appellant’s transfer was done in bad faith, and obviously for political reasons 56. A careful examination of the events that transpired prior to
Appellant’s transfer clearly shows that Appellee’s act was tainted with
bad faith, motivated by purely political reasons. Quite clearly, the
Appellant was removed because he was an obstacle to the wishes of the
President that she distributes the Presidential Social Fund with no
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restrictions, and even when funds are not available, hence the post-dated
checks. The Palace demands blind obedience, and this the Appellant
could not give.
57. Appellee very well knew that Appellant is a CESO with a
constitutionally guaranteed right to security of tenure, yet it sought to
dismiss Appellant through a termination letter dated 13 September 2005,
only four (4) days after Appellant decided to transfer back to the PSF the
three (3) checks supposedly for Congressman Diaz. The timing betrays
Malacanang’s political motives behind Appellant’s termination.
58. Both the CSC and the CESB have written the Appellant that
termination of a CESO without cause and due process of law is illegal.
Hence, in a desperate and fraudulent attempt to lend a semblance of
legality to Appellant’s removal from the DepEd, Malacanang qualified on
23 September 2005, i.e. ten (10) days after the issuance of the
termination letter, that Appellant was “terminated as undersecretary (of
education) but not as CESO” (Annex “I” hereof). Malacanang later
changed its stance and disguised the termination as “a reassignment to
some other government position of the same rank”.
59. Malacanang’s cover-up did not end with its conflicting
declarations. Knowing that the termination (disguised as reassignment)
is patently illegal, Malacanang deviously made it appear that Appellant
resigned and that it merely allowed Appellant to continue its services as
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some form of accommodation. Worse, Malacanang declared all these
through press releases, obviously to humiliate Appellant before the
public.
60. This Honorable Commission should not and cannot sanction
such dismissal tainted by bad faith. Just like any other employer, the
government cannot transfer an employee as a result of discrimination, in
bad faith or as a form of punishment without sufficient cause.16 As this
Honorable Commission has consistently ruled, “(t)he authority (to
transfer employees) under the law is not intended to harass or oppress a
subordinate on the pretext of advancing and promoting public interest”17.
61. The Supreme Court has protected government employees from
political vendetta. In Pangilinan vs. Maglaya,18 the Acting Executive
Director of the Land Transportation Office was separated from service the
day after his public exposes on the anomalies involving his superiors and
his threat to file cases against them. Although the Supreme Court
admitted that it was constrained by law to uphold the termination of a
temporary employee, it did not hesitate to express its disapproval of the
real political motives behind dismissals and declare that the removal, in
fact, constitutes grave abuse of discretion:
16 Philippine American Life and General Insurance Co. vs. Gramaje, G.R. No. 156963, November 11, 2004. 17 Civil Service Commission Resolution No. 030669, June 10, 2003 citing CSC Resolution No. 98-16-08, June 24, 1998. 18 G.R. No. 104216, August 20, 1993.
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“It is not difficult to see that the petitioner was replaced because of his expos and his threat to bring charges against his superiors. His relief was clearly an act of punishment if not personal vengeance. This is not denied. The respondents, while invoking the law to justify his separation, have made no effort whatsoever to justify their motives.
x x x x x x x x x It would be a sorry day, indeed, if a civil servant could be summarily removed from his position for the "sin" of complaining about the irregularities of his superiors. This would not only impair the integrity of the civil service but also undermine the campaign to encourage the public, including those in the civil service, to expose and denounce venality in government. Pangilinan's denunciation of the non-reflective license plates was not the act of a rabble-rouser or a publicity-seeker. The record shows that he quietly brought the matter to the attention of his superiors, giving reasons for his misgivings. They took no action. Feeling frustrated, he sought the attention of the media and told them of his objection to the non-reflective license plates. He cited the laws that he claimed had been violated. He narrated his efforts to prevent their violation. He spoke of the indifference of his superiors. In doing all these, he was exercising his right as a citizen, and especially as a civil servant, to denounce official misconduct and improve the public service.
x x x x x x x x x Pangilinan was separated the day immediately following his press conference. The Court sees the action as a retaliation. The public respondents say they were merely terminating his incumbency in accordance with existing law. The Court sees that termination as a punishment. Under the expanded definition of judicial power in Article VIII, Section 1, of the Constitution, the Court can declare the acts of the public respondents as tainted
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with grave abuse of discretion and therefore invalid.” (Emphasis supplied)
62. In this case, Appellant faces a formidable opponent, and
powerless, he can only take refuge in the arms of the law. Under a Rule
of Law not even the highest officer of the land should be allowed to
disregard the Constitution, the law and the rights of civil servants. No
amount of political power nor threat of punishment should be able to
intimidate civil servants into loyal submission, blind obedience, and
conspiracy to commit unlawful acts.
Prayer WHEREFORE, in view of the foregoing, it is respectfully prayed
that the Order dated 4 October 2005 signed by the Appellee, ordering
Appellant’s transfer to the DOLE be nullified as illegal and that Appellant
be retained as Undersecretary for Finance and Administration of the
Department of Education.
The Appellant prays for other relief that are just and
equitable in the premises.
Quezon City, 14 October 2005.
Counsel for Appellant:
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ROWENA V. GUANZON PTR No. 01321430 1-17-04 Cadiz City IBP Lifetime Member 1020636 8-20-04 Bacolod City Roll of Attorney No. 33534
DAMCELLE S. TORRES PTR NO. 9437561/1-05-2005/ Makati
IBP NO. 631983/1-05-2005 Laguna Roll of Attorney No. 49400
MAE NIÑA REYES
Suite 311 Centro Plaza Scout Torillo corner Scout Madrinan South Triangle, Quezon City 1103 Copy furnished: Registered Mail No. ___ Secretary Eduardo Ermita Date __________________ Office of the Executive Secretary Malacanang Palace Manila City
EXPLANATION ON MODE OF SERVICE
For lack of personnel, a copy of foregoing Memorandum on Appeal was served by registered mail, rather than by the preferred mode of personal service.
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DAMCELLE S. TORRES
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