EN BANC
G.R. No. 213424, July 11, 2017
LAND BANK OF THE PHILIPPINES, Petitioner, v. COMMISSION ON AUDIT (COA), JANET D. NACION, ANTONIO L. CASTILLO, LEAH S. DAGUIO, VIRGINIA G. DATUKON, ELSA H. RAMOS-MAPILI, CECILIA C. RACIMO, FLORENTINA N. SAGABAEN, IRENE P. SALVANERA, NIMFA VILLAROMAN-SANTOS, TERESITA D. TEVES, AND LILIAN F. VARELA, Respondents.
D E C I S I O N
CARPIO, J.:
This is a petition for certiorari1 assailing the Decision2 dated 27 February 2012 and the Resolution3 dated 4 Apri1 2014 of the Commission on Audit (COA) in COA CP Case No. 2011-146. The COA affirmed the Decision4 dated 4 December 2008 of the COA Legal and Adjudication Office - Corporate (COA LAO-C) which disallowed (1) payments made by Land Bank of the Philippines (LBP) to MSA Academic Advancement Institute (MSA) representing refresher course and examination review fees, and (2) travel expenses incurred by bank officers in connection with the said refresher course.
Assistant Vice-President, Voltaire Pablo P. Pablo III, the head of LBP HRDD, wrote a Memorandum9 dated 3 November 2005 to Auditor Quirante explaining that the LBP Management Committee approved those who have already availed of the refresher course during its first run to take another training course for the second time in view of the CSEE/MATB unified third level examination which merged CES eligibility and CSEE examinations resulting to the addition and deletion of some subjects in the previous CSEE. Thus, the Management Committee agreed to offer the training course not only to first timers but also to those who have already availed of the first refresher course.
- Require the concerned officers to refund the review expenses amounting to P341,769.87 or P6,701.37 per participant (P1,286,663.01/192 participants, DV #046913). The Bank should consider providing the benefit only once for each officer to give chance to others.
- Instruct the concerned officers to file their application for leave since the attendance to the seminar of concerned officers should be considered personal.
- Require the participants from the field units to refund the traveling expenses including board and lodging claimed.8
Please be informed that payments for the CSEE/MATB review fees to MSA in the total amount of P1,778,100.51 have been disallowed in audit for lack of legal basis. The CSEE/MATB is an eligibility examination for personal enhancement and not to improve performance and job competency, hence, the payment for the review fees to MSA are considered unnecessary expenses in violation of COA Circular No. 85-55A dated September 8, 1985.12The venue and inclusive dates of the review classes corresponding to the amount disallowed are outlined13 as follows:
The amounts of P488,000.00, P1,286,663.01, and P3,437.50 refer to the payments of LBP to MSA for the refresher course fees of 122 LBP officers in November 2004, the refresher course fees of 192 LBP officers in July 2005, and for the venue rental in MSA Cebu City, respectively.
CV No. Amount Disallowed Venue Inclusive Dates 1037502 P 488,000.00 MSA Katipunan Nov. 6, 14 & 15, 2004 MSA Katipunan Nov. 7, 14 & 15, 2004 MSA Makati Nov. 3-4, 7-11 & 21, 2004 MSA Fairview Oct. 30, Nov. 6 & 13, 2004 MSA Cebu City Nov. 9-11, 2004 046913 P 1,286,663.01 MSA Cebu City July 2-5, 2005 Mindanao Training Resource Center July 8-12, 2005 MSA Makati/LBP Plaza July 11-15, 2005 MSA Katipunan/LBP Plaza July 11-15, 2005 LBP Buendia Branch/LBP Plaza July 11-15, 2005 146941 P 3,437.50 MSA Cebu City July 5, 2005 (venue rental)Total P 1,778,100.51
WHEREFORE, premises considered, this Commission hereby DENIES the Petition and AFFIRMS LAO-C Decision No. 2008-078 dated December 4, 2008 disallowing payments for the CSEE/MATB examination refresher course/review classes paid to MSA amounting to P1,778,100.[5]1 and various NDs issued by ATLs of appellant's branches representing travel expenses in the total amount of P98,562.00.23LBP filed a motion for reconsideration which was denied for lack of merit by the COA in a Resolution dated 4 April 2014.
SECTION 1. Every official and employee of the government is an asset or resource to be valued, developed and utilized in the delivery of basic services to the public. Hence, the development and retention of a highly competent and professional workforce in the public service shall be the main concern of every department and agency.The records27 show that the LBP-HRDD recommended the approval of an external training program, the Professional Advancement Refresher Course by MSA, for the benefit of LBP's bank officers holding career executive positions with Pay Grade 9 and up. The course was approved by then LBP President and Chief Executive Officer Margarito B. Teves. The aim of the refresher course is to provide updated information on the enhancement of managerial and verbal skills, and on the analysis and interpretation of data which can assist the officers concerned in (1) effectively carrying out their respective duties and responsibilities, and (2) enhancing LBP's delivery of service to its clients.
Every department or agency shall therefore establish a continuing program for career and personnel development for all agency personnel at all levels, and shall create an environment or work climate conducive to the development of personnel skills, talents and values for better public service.
SEC. 2. Each department or agency shall prepare a career and personnel development plan which shall be integrated into a national plan by the Commission which shall serve as the basis for all career and personnel development activities in the government. The Career and Personnel Development Plan shall include provisions on merit promotion, performance evaluation; in-service training; overseas and local scholarships and training grants; suggestions, incentive award systems, provisions for welfare, counseling, recreation and similar services; and other human resource development interventions such as on the job training, counseling, coaching, job rotation, secondment, job swapping and others.
The instant refresher course is similar with other privileges granted by the CSC such as scholarships for graduate studies, board or bar examinations that could be availed only once by the prospective applicants. The reason for that policy is very obvious, that is, to give all qualified government employees equal chances to avail the said benefits/privileges and more importantly, to minimize government expenditures without compromising the right of the government employees to career advancements as guaranteed by the aforesaid CSC pronouncements.30With all these considerations on the benefits of the refresher course for the professional growth and advancement of the officers concerned, all the expenses in connection with the said refresher course should have been allowed by COA.
We wish to inform you that initially the training for the 3rd level examination was intended for those who have not previously availed of the first CSEE training course. This was presented to the Management Committee last June 14, 2005 for approval.Thus, with the approval of LBP's Management Committee, some bank officers were allowed to attend the CSEE training and refresher course for the second time in order to obtain more information on the new examination system. LBP's contention finds solace in Section 5, Rule VIII of the same Omnibus Rules which states:
However, during the deliberation, the following items were taken into account:Foregoing considered, the MANCOM agreed to offer the training course even to those who have availed of the first CSEE training course.31
- The examination, which took place last July 17, 2005, was a unified third level examination system which was called Career Executive Officer (CEO) Examination.
- Considering that it is a merger of the CES eligibility and CSEE conducted separately by the Career Executive Service Board and the Civil Service Commission respectively, there were subjects that were added and deleted as compared to the previous examinations (CSEE).
Sec. 5. The performance appraisal or evaluation system shall be integrated into the Integrated Human Resource Planning and Development System (IHRPDS) as a tool to enable employees to improve performance and assess their professional growth including determining the potentials and development needs of individual employees. Hence, if performance appraisal indicates development needs, the individuals concerned shall undergo training or other appropriate human resource development interventions designed to improve their performance and productivity. (Emphasis supplied)LBP provided assistance and further training to the concerned bank officers not only to improve their performance and job competency but also to keep the bank from losing competent officers and dissipating its manpower pooL There are no findings that LBP's Management Committee approved the subsequent training program only for the personal interests of the select LBP officers who did not pass the first CSEE examination. In fact, aside from the 51 officers, 141 other bank officers participated in and benefited from the second refresher course. From the two refresher courses conducted by MSA, a total of 263 bank officers gained knowledge and information that helped develop their managerial and analytical skills and enhanced their personal needs while maintaining and even upgrading the bank's standards of professionalism and excellence.
SEC. 7. In establishing a continuing program for the development of personnel, each department or agency or local government unit shall:COA maintains that the CSEE/MATB refresher course is akin to either the Middle Management Development Program or Executive Development Program which should have been conducted by the LBP's own Organization Development Department (ODD).
x x x x
(b) Design, implement and evaluate in-service training and development programs solely or in coordination with the Commission and/or other government agencies and institutions. Such programs shall include the following:
x x x x
Middle Management Development Program - refers to a set or series of planned human resource interventions and training courses designed to provide division chiefs and other officials of comparable rank with management and administrative skills and to prepare them for greater responsibilities.
x x x x
Executive Development Program - refers to activities and experiences, and continuing education intended to enhance the managerial skills of government officials or executives who belong to the 3rd level.
SEC. 7. In establishing a continuing program for the development of personnel, each department or agency or local government unit shall:LBP's then HRDD recommended to the. LBP President a training program for its bank officers to be conducted by an outside service provider like MSA. Absent any findings to the contrary and given the needs of the bank at the time, the Professional Advancement Refresher Course, which MSA conducted for the benefit ofLBP's bank officers, can be considered as a human resource development opportunity and activity or an alternative approach to improving job performance which is allowed and sanctioned under the civil service rules.
x x x x
(d) Provide other human resource development opportunities and activities which shall include training and scholarship grants, both local and foreign. In addition, shall utilize alternative strategies or approaches for improving job performance such as coaching, counseling, job rotation, on-the-job training and others. (Emphasis supplied)
In the present case, LBP at the time was under a growing pressure to keep its third level positions occupied only by officers with the appropriate eligibility and had to deal with anxious and demoralized pool of officers whose appointments were on the line. The 263 officers who participated in the said refresher course were all occupying Assistant Department Manager or Manager positions. While it is true that CSC MC No. 20 does not require LBP to hire service providers to train its temporary appointees for eligibilityMEMORANDUM CIRCULAR
TO: ALL HEADS OF DEPARTMENTS, BUREAUS AND AGENCIES OF THE NATIONAL AND LOCAL GOVERNMENTS, INCLUDING GOVERNMENT-OWNED AND/OR CONTROLLED CORPORATIONS WITH ORIGINAL CHARTERS
SUBJECT: REVISED POLICIES ON TEMPORARY APPOINTMENTS AND PUBLICATIONS OF VACANT POSITIONS
The Civil Service Commission (CSC) as the central personnel agency of the government, promulgates policies, standards and guidelines to promote merit and fitness in the recruitment and selection of officials and employees in the career service at all levels.
The Commission has noted that, there is a growing complaint relative to the issuance of temporary appointments, including the termination and replacement of temporary appointees, especially in the third level. As such, the policies governing the issuance of temporary appointments and the publication of vacant positions need to be revisited to maintain merit and fitness in the civil service and at the same time to protect the rights of government employees holding temporary appointments.
In answer thereto, the Commission has promulgated CSC Resolution No. 02-1136 dated September 5, 2002 prescribing the Revised Policies on Temporary Appointments and Publication of Vacant Positions which provides, as follows:
1. The revised policies on temporary appointments shall cover all positions in the first, second and third levels of the career service.
2. Appointees under temporary status do not have security of tenure and may be separated from the service, with or without cause. As such, they shall not be considered illegally terminated and hence, not entitled to claim back wages and/or salaries and ask for reinstatement to their positions.
3. Appointees under temporary status may be terminated without necessarily being replaced by another. Temporary appointees may also he replaced within the nvelve month period by qualified eligibles or even by non-eligibles.
A 30-day written notice signed by the appointing authority shall be given to the temporary appointee prior to termination/removal or replacement.
4. Appointees to Career Executive Service (CES) positions who do not possess any CES/CSEE eligibility but who were issued permanent appointments prior to the effectivity of CSC AfC No. 46, s.1993 on November 26, 1993, which require a CES eligibility for third level positions or the conversion of their positions to CES positions, enjoy vested right to the position under permanent status; provided that upon transfer or promotion to other positions which require a third level eligibility, the rules on temporary appointments shall apply.
5. Appointees to CES positions who do not possess any CES/CSEE eligibility but were issued permanent appointments after the effectivity of CSC MC No. 46, s.1993 but prior to the promulgation of this Resolution, with or without a condition at the back of their appointments that they will not enjoy security of tenure are considered on a temporary status. They are not required to be issued new appointments except upon transfer or promotion to other positions which require third level eligibility. In such case,they will be issued temporary appointments.
6. Vacant positions in all levels in the career service shall be published in the Bulletin of Vacancies in the Civil Service or through other modes of publication. Published vacant positions shall likewise be posted in at least three conspicuous places in the agency for at least ten (10) working days. For local government units, filling of vacant positions shall be made after fifteen (15) calendar days from their posting and publication as provided under RA 7160 (Local Government Code of 1991).The following positions are exempt from the publication and posting requirements:
Primarily confidential positions;
Positions which are policy determining;
Highly technical positions;
Coterminous with the appointing authority or limited to the duration of a particular project; and
Positions to be filled by existing regular employees in the agency in case of reorganization.
7. All government entities are enjoined to publish non-career positions such as casuals and contractuals including job orders and contracts of services.
8. All positions occupied by holders of temporary appointments shall be published and posted every six months, reckoned from the date the vacant position was last published, simultaneously with the other existing vacant positions.
9. In the appointment of casual and contractual employees, agency heads are enjoined to appoint those who possess civil service eligibilities.
All other existing Civil Service Commission issuances which are inconsistent herewith, are deemed repealed or amended.
This Memorandum Circular shall take effect fifteen (15) days after its publication in a newspaper of general circulation.
The term pertains to expenditures which could not pass the test of prudence or the diligence of a good father of a family, thereby denoting non-responsiveness to the exigencies of the service. Unnecessary expenditures are those not supportive of the implementation of the objectives and mission of the agency relative to the nature of its operation. This would also include incurrence of expenditure not dictated by the demands of good government, and those the utility of which can not be ascertained at a specific time. An expenditure that is not essential or that which can be dispensed with without loss or damage to property is considered unnecessary. The mission and thrusts of the agency incurring the expenditures must be considered in determining in whether or not an expenditure is necessary.Under the Declaration of Policies of the same COA circular, there are several factors which determine whether an expenditure is unnecessary. Item 2.2 of COA Circular No. 85-55-A states:
2.2 The service mission, size, systems, structure, strategy, skills, style, spirit and financial performance of government agency are the primary considerations in determining whether or not their expenditures are irregular, unnecessary, excessive or extravagant.In National Center for Mental Health Management v. COA,34 we quoted then COA Chairperson Francisco Tantuico, Jr. that "the terms 'irregular,' 'unnecessary,' 'excessive,' and 'extravagant,' when used in reference to expenditures of funds or uses of property, are relative. The determination of which expenditure of funds or use of property belongs to this or that type is situational. Circumstances of time and place, behavioral and ecological factors, as well as political, social and economic conditions, would influence any such determination. Viewed from this perspective, transactions under audit are to be judged on the basis of not only the standards of legality but also those of regularity, necessity, reasonableness and moderation."
Endnotes:
1 Under Rule 65 of the 1997 Revised Rules of Civil Procedure.
2Rollo, pp. 31-40. Penned by Chairperson Ma. Gracia M. Pulido Tan, with Commissioners Juanito G. Espino, Jr. and Heidi L. Mendoza concurring.
3 Id. at 42.
4 Id. at 43-48.
5 CSC MC No. 20, in promulgating CSC Resolution No. 02-1136 (dated 5 September 2002), deals with the revised policies on temporary appointments and publication of vacant positions; signed on 23 September 2002.
6 See CSC MC No. 20. It is stated in said circular that appointees in the third level or Career Executive Service (CES) positions require a CES eligibility or Career Service Executive Eligibility (CSEE) as a requirement tor permanent appointment to enjoy security of tenure. If any of these officers whose appointments were under temporary status are transferred or promoted to other positions which require third level eligibility, the rules on temporary appointment shall apply to them. The pertinent provisions of the circular state:
1. The revised policies on temporary appointments shall cover all positions in the first, second and third levels of the career service.
2. Appointees under temporary status do not have security of tenure and may be separated from the service, with or without cause. As such, they shall not be considered illegally terminated and hence, not entitled to claim back wages and/or salaries and ask for reinstatement to their positions.
3. Appointees under temporary status may be terminated without necessarily being replaced by another. Temporary appointees may also be replaced within the twelve month period by qualified eligibles or even by non-eligibles.
A 30-day written notice signed by the appointing authority shall be given to the temporary appointee prior to termination/removal or replacement.
4. Appointees to Career Executive Service (CES) positions who do not possess any CES/CSEE eligibility but who were issued permanent appointments prior to the effectivity of CSC MC No. 46, s.1993 on November 26, 1993, which require a CES eligibility for third level positions or the conversion of their positions to CES positions, enjoy vested right to the position under permanent status; provided that upon transfer or promotion to other positions which require a third level eligibility, the rules on temporary appointments shall apply.
5. Appointees to CES positions who do not possess any CES/CSEE eligibility but were issued permanent appointments after the effectivity of CSC MC No. 46, s.1993 but prior to the promulgation of this Resolution, with or without a condition at the back of their appointments that they will not enjoy security of tenure are considered on a temporary status. They are not required to be issued new appointments except upon transfer or promotion to other positions which require third level eligibility. In such case, they will be issued temporary appointments.
x x x x
7Rollo, pp. 115-117.
8 Id. at 117.
9 Id. at 118.
10 Id. at 119.
11 Id. at 49-56.
12 Id. at 49.
13 Id. at 121.
14 Id. at 120-121.
15 Id. at 59-85.
16 SEC. 5. Form and contents of petition.- The petition shall be verified and filed in eighteen (18) legible copies. The petition shall name the aggrieved party as petitioner and shall join as respondents the Commission concerned and the person or persons interested in sustaining the judgment, final order or resolution a quo. x x x.
17 12. The Director, Legal and Adjudication Office for the sector shall act on appeals filed by the aggrieved parties from the disallowances or charges in the form of a decision within thirty (30) days from receipt thereof. He shall entertain only one motion for reconsideration of his decision which he shall act upon within fifteen days from receipt.
18 Guidelines on the Delineation of the Auditing and Adjudication Functions. Issued on 26 August 2002.
19Rollo, pp. 122-142.
20 SECTION 30. Career and Personnel Development. - The development and retention of a competent and efficient work force in the public service is a primary concern of government. It shall be the policy of the government that a continuing program of career and personnel development be established for all government employees at all levels. An integrated national plan for career and personnel development shall serve as the basis for all career and personnel development activities in the government
21 SECTION 31. Career and Personnel Development Plans. - Each department or agency shall prepare a career and personnel development plan which shall be integrated into a national plan by the Commission. Such career and personnel development plans which shall include provisions on merit promotions, performance evaluation, in-service training, including overseas and local scholarships and training grants, job rotation, suggestions and incentive award systems, and such other provisions for employees' health, welfare, counseling, recreation and similar services.
22 Signed on 25 July 1987.
23Rollo, pp. 38-39.
24Sanchez v. Commission on Audit, 575 Phil. 428, 446 (2008).
25Rollo, p. 47.
26 CSC Resolution No. 91-1631, approved on 27 December 1991.
27Rollo, pp. 172-174.
28 Id. at 46.
29 Id.
30 Id.
31 Id. at 118.
32 284 Phil. 52, 64 (1992).
33 Amended Rules and Regulations on the Prevention of Irregular, Unnecessary, Excessive or Extravagant Expenditures of Uses of Funds and Property. Took effect on 8 September 1985.
34 333 Phil. 222, 239 (1996).