G.R. No. 257697 - San Miguel Corporation vs. Commissioner of Internal Revenue

Respondent Ramon S. Roco was appointed by President Fidel V. Ramos on August 26, 1996 as Regional Director of the Land Transportation Office (LTO) in Region V, a CES rank level V position.
He immediately assumed and discharged the duties of the office.
Joseph E. Estrada re-appointed Roco to the same position on February 8, 1999.
At the time of his appointments in 1996 and 1999, Roco was not a CES eligible.
On August 13, 1999, during his incumbency, he was conferred CES eligibility by the Career Executive Service Board.

On September 7, 1999, petitioner Luis Mario M. General, not a CES eligible, was appointed by President Estrada as Regional Director of the LTO in Region V, the same office held by Roco.
DOTC Undersecretary Herminio B. Coloma, Jr., Officer-in-Charge of the Department, issued a memorandum directing General to assume office immediately and ordered Roco to report to the Office of the Secretary for further instructions.
General assumed office on September 16, 1999.

Respondent Roco filed a petition for quo warranto before the Court of Appeals to challenge petitioner General’s appointment and prayed for issuance of a writ of preliminary injunction and/or temporary restraining order (TRO).
The Court of Appeals issued a TRO allowing Roco to re-assume office.
After 60 days without issuance of the preliminary injunction, General reassumed office.
On March 10, 2000, the Court of Appeals ruled in favor of Roco, affirming his appointment, nullifying General’s appointment, and ordering General to vacate the position.
On motion of Roco, the Court of Appeals issued a writ of execution pending appeal.
Two separate Rule 45 petitions for review were filed before the Supreme Court:

G.R. No. 143366 by General against Roco.
G.R. No. 143524 by the Solicitor General on behalf of the Executive Secretary and other DOTC officials against Roco.

On June 26, 2000, the Supreme Court issued a resolution directing maintenance of the status quo ante.
The two petitions were later consolidated.

Respondent Roco argued that CES eligibility alone suffices to acquire security of tenure; appointment to a CES rank is not necessary.
Petitioners contended that CES eligibility alone is insufficient and that appointment to the appropriate CES rank is required for security of tenure.

Section 27(1) of the Civil Service Law provides that permanent status requires compliance with all position requirements, including appropriate eligibility.
CES Board rules and regulations specify:

Conferment of CES eligibility upon passing CES examinations.
Appointment to CES rank by the President upon Board recommendation completes membership and confers security of tenure.
Six ranks in CES, with the rank corresponding to managerial responsibility and performance rating.

Integrated Reorganization Plan provisions on appointment, assignment, reassignment, and transfers in the CES emphasize appointment by the President from CES eligibles, with transfers allowed without loss of rank or salary.
Security of tenure pertains to rank and not the particular office or position.
CES officers may be reassigned or transferred without salary or rank reduction and may appeal unjustified reassignments to the President.

Whether CES eligibility alone confers security of tenure on a public official occupying a CES position.
Whether appointment to the appropriate CES rank is required in order to have security of tenure as a CES officer.
Whether respondent Roco, as a CES eligible but not appointed to the appropriate CES rank for the Regional Director position (CES rank level V), has security of tenure to hold the office.
Whether the appointment of petitioner General, a non-CES eligible, to the Regional Director position is valid.
Whether respondent Roco can interpose a quo warranto action to invalidate the appointment of petitioner General and retain the disputed office.