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PHILIPPINE SUPREME COURT DECISIONS

EN BANC

[G.R. No. 167807 : December 06, 2011]

MANOLITO AGRA, EDMUNDO P. AGUILAR, IMELDA I. AMERICA, EVELYN R. CONCEPCION, DIOSDADO A. CORSIGA, PERCIVAL G. CRISOSTOMO, CESAR E. FAELDON, MA. REGINA C. FILOTEO, ZARINA O. HIPOLITO, JANICE F. MABILOG, ROBERTO MARTINEZ, JONATHAN MENDROS, NORMAN MIRASOL, EDRICK V. MOZO, LORENZO A. PENOLIAR, LOURDES QUINTERO, GLORIA GUDELIA SAMBO, DEMOSTHENES V. ERENO, RHONEIL LIBUNAO, ILUGEN P. MABANSAG, JOSEPHINE MAGBOO, MADELEINE ANN B. BAUTISTA, ULYSSES C. BIBON, ANGELINA RAMOS, EDUARDO M. SUMAYOD, DOMINGO TAMAYO, HERACLEA M. AFABLE, ANNA LISSA CREENCIA, CHONA O. DELA CRUZ, MERCY NANETTE C. IBOY, JEAN A. LUPANGO, MARIE DELA O. NA-OBRE, PERLA LUZ OCAMPO, ROUCHELLEJANE PAYURAN, ABIGAIL E. PORMENTO, THERESITA A. RIVERA, MILAGROS ROBLES, JOSEPHINE ROSILLO, ARSENIA M. SACDALAN, PRECILA TUBIO, IRENE H. VIRAY, WILFREDO O. BUCSIT, BONIFACIO DAVID, ROSARIO P. DIZON, EXEQUIEL EVALE, JR., RONALD M. MANALO, HENRIETTA A. MARAMOT, FELICISIMO U. PULA, JONAS F. SALVADOR, ERNESTO SILVANO, JR., ENRICO G. VELGADO, FEDERICO VILLAR, JR., ARNEL C. ABEN, ABDULMALIK BACARAMAN, VIRGINIA BORJA, ANTONIO CARANDANG, JR., RINA RIEL DOLINA, MANOLITO FAJARDO, ARVIN B. GARDUQUE, CAYETANO JUAREZ, MA. SHERYL LABONETE, HERCONIDA T. LAZARO, MARITESS MARTINEZ, AURELIO L. MENDOZA, ARNEL M. NOGOT, GERARDO G. POMOY, DENCIO RAMOS, CORAZON TAGUDIN, ANAFEL B. TIO, AGATONA S. ZALATAR, MARGIE EULALIA CALMA, RENEE D. MELLA, ARLIQUIN AMERICA, DEANNA B. AYSON, GERALDINE J. CALICA, CHESTER FERNANDEZ, LUISA I. HERNANDEZ, CYNTHIA E. LISONDRA, ALONA S. LLVATA, CLAIRE P. QUETUA, ROSEMARIE S. QUINTOS, RUTH S. RAMIREZ, LINO VERMUDO, JR., ROLANDO R. APOLONIO, CELIA I. ACCAD, MA. ALMA AYOS, PAMELA CASTILLO, ARNOLD DUPA, LAURENCE FELICIANO, LEANDRO P. LIBRANDO, MARILOU B. LOPEZ, AMELITA P. LUCERO, ESTERBELLE T. SIBALA, JONA ANDAL, ANDRES RATIO, MA. THERESA Q. MALLANO, DANILO P. LIGUA, JOY ABOGADO, VIRGINIA C. STA. ANA, ALBERNARD BAUTISTA, JUBANE DE PEDRO, PAUL DINDO C. DELA CRUZ, ALEJO B. INCISO, SHERWIN MAÑADA, JESUS T. OBIDOS, JOEL B. ARELLANO, ALFREDO CABRERA, MARY LYNN E. GELLOR, JOHN JOSEPH M. MAGTULOY, MICHELLE MONTEMAYOR, RHINA ANGUE, NORBERTO BAYAGA, JR., JUSTINO CALVEZ, EDWIN CONCEPCION, ALAN JOSEPH IBE, CESAR JACINTO, JOSERITA MADRID, IRENE MARTIN, GINA T. QUINDO, RENATO SUBIJANO, NIELMA E. VERZOSA, ALL NATIONAL ELECTRIFICATION ADMINISTRATION EMPLOYEES, REPRESENTED BY REGINA FILOTEO, PETITIONERS, VS. COMMISSION ON AUDIT, RESPONDENT.

D E C I S I O N


LEONARDO-DE CASTRO, J.:

This is a special civil action via certiorari under Rule 65 in relation to Rule 64 of the 1997 Revised Rules of Civil Procedure from the Decision 1 of the Commission on Audit (COA) No. 2003-134 dated October 9, 2003, which denied the grant of rice allowance to employees of the National Electrification Administration (NEA) who were hired after June 30, 1989 (petitioners) and COA's Resolution 2 No. 2005-010 dated February 24, 2005, which likewise denied petitioners' Motion for Reconsideration.

On July 1, 1989, Republic Act No. 6758 (the Compensation and Position Classification Act of 1989) took effect, Section 12 of which provides:

Sec.  12. Consolidation of Allowances and Compensation. ” All allowances, except for representation and transportation allowances; clothing and laundry allowances; subsistence allowance of marine officers and crew on board government vessels and hospital personnel; hazard pay; allowances of foreign service personnel stationed abroad; and such other additional compensation not otherwise specified herein as may be determined by the DBM, shall be deemed included in the standardized salary rates herein prescribed. Such other additional compensation, whether in cash or in kind, being received by incumbents only as of July 1, 1989 not integrated into the standardized salary rates shall continue to be authorized.

Existing additional compensation of any national government official or employee paid from local funds of a local government unit shall be absorbed into the basic salary of said official or employee and shall be paid by the National Government.  (Emphasis ours.)

Pursuant to its authority to implement Republic Act No. 6758 under Section 23 thereof, the Department of Budget and Management (DBM) on October 2, 1989 issued Corporate Compensation Circular No. 10 (DBM-CCC No. 10), otherwise known as the Implementing Rules and Regulations of  R.A. No. 6758.
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