Case Summary (G.R. No. L-15633)
Factual Background of G.R. No. 185766
In March 2005, the PCSO Board appointed Josefina A. Sarsonas as Assistant Department Manager II of the Internal Audit Department under temporary status. PCSO General Manager issued a temporary appointment the same day. The CSC Field Office disapproved this appointment due to Sarsonas’s failure to meet the required third-level eligibility (Career Service Executive eligibility). Two qualified individuals were certified to have signified interest for the position. PCSO appealed multiple times, which were denied by CSC authorities including CSC-National Capital Region, culminating in a CSC resolution affirming disapproval. PCSO then elevated the case to the Court of Appeals, which reversed the CSC decision and upheld Sarsonas’s appointment. CSC’s motion for reconsideration was denied by CA.
Factual Background of G.R. No. 185767
In November 2004, the PCSO Board appointed Lemuel G. Ortega as Assistant Department Manager II of the Planning and Production Department, issuing a fourth renewal of his temporary appointment. CSC Field Office again disapproved this appointment, citing Ortega’s lack of eligibility and the presence of other qualified eligibles within PCSO who expressed interest. PCSO requested reconsideration citing Ortega’s extensive experience and competence, arguing the position did not require Career Service Executive eligibility as it was not a presidential appointee position. CSC-NCR affirmed disapproval, and the CSC issued resolutions denying the appointment. PCSO appealed to the CA which reversed the CSC resolutions and upheld Ortega’s appointment; the CA denied CSC’s motion for reconsideration.
Court of Appeals Ruling
The CA ruled that the CSC erred in classifying the Assistant Department Manager II position as requiring Career Executive Service (CES) eligibility. It held that the PCSO Board’s appointment was a policy decision and management prerogative beyond the CSC’s power of review. The CA reasoned the position was not among those listed under Section 7(3), Title I, Book V of the Administrative Code of 1987—i.e., positions that require presidential appointment and thus CES eligibility. Consequently, both Sarsonas’s and Ortega’s temporary appointments were proper. The CA further observed no protests from the other qualified eligibles to the appointments, and that the CSC cannot impose its own qualification standards over those determined by the appointing agency. The CA also emphasized that CSC’s authority is limited to ensuring appointees possess legal qualifications and eligibility, and that refusal to approve appointments when basic qualifications are met constitutes an undue encroachment of the appointing authority’s discretion.
Issue Presented
Whether the position of Assistant Department Manager II in the PCSO falls under the Career Executive Service (CES), thereby requiring third-level eligibility (Career Service Executive eligibility) and justification for CSC’s disapproval of temporary appointments of Sarsonas and Ortega.
Supreme Court Ruling and Legal Analysis
Adopting the reasoning in Office of the Ombudsman v. Civil Service Commission and Home Insurance Guarantee Corporation v. Civil Service Commission, the Court ruled that the CES covers only those officials appointed by the President of the Philippines. Since the Assistant Department Manager II position is not enumerated among the CES positions under Section 7(3), Book V, Title I of the Administrative Code of 1987, nor identified by the Career Executive Service Board as equivalent in rank, and since holders of such positions are appointed by the PCSO General Manager and not by the President, the position does not fall within the CES. Therefore, the appointments of Sarsonas and Ortega do not require third-level or CSE eligibility pursuant to the Civil Service Law and regulations.
The Administrative Code distinguishes three levels of career service:
- First-level positions (clerical and subprofessional),
- Second-level positions (professional, technical, scientific work), and
- Third-level positions (Career Executive Service), which are reserved for officers appointed by the President at ranks enumerated or identified by the CES Board.
The CSC’s own Resolution No. 100623 and Memorandum Circular No. 7 (2010) clarify that the CES includes only positions appointed by the President and enumerated in the Administrative Code or as equivalent by the CES Board. Other executive and managerial positions fall under the second level and do not require CES eligibility.
The Court reiterated prior rulings which held that to classify a position as CES
Case Syllabus (G.R. No. L-15633)
Case Overview and Procedural History
- This case involves consolidated petitions for review on certiorari under Rule 45 of the Rules of Court, filed by the Civil Service Commission (CSC).
- The petitions challenge two separate decisions and resolutions of the Court of Appeals (CA) concerning the legality of temporary appointments in the Philippine Charity Sweepstakes Office (PCSO).
- G.R. No. 185766 relates to the appointment of Josefina A. Sarsonas as Assistant Department Manager II of PCSO’s Internal Audit Department.
- G.R. No. 185767 concerns the appointment of Lemuel G. Ortega as Assistant Department Manager II of PCSO’s Planning and Production Department.
- Both CA decisions set aside CSC resolutions disapproving the appointments on the ground of lack of required eligibility.
- Motions for reconsideration filed by CSC before the CA were denied in both cases.
- The fundamental issue presented to the Supreme Court is whether the position of Assistant Department Manager II falls under the Career Executive Service (CES), and hence, if the CSC was correct in disapproving the temporary appointments for lack of third-level eligibility.
Facts of the Case
G.R. No. 185766 (Sarsonas Appointment)
- On March 16, 2005, the PCSO Board of Directors appointed Josefina A. Sarsonas as Assistant Department Manager II of the Internal Audit Department under temporary status.
- The PCSO General Manager issued the temporary appointment the same day.
- The CSC Field Office disapproved the appointment on April 26, 2005, citing Sarsonas’ failure to meet eligibility requirements.
- CSC mentioned two qualified eligibles, Mercedes Hinayon and Reynaldo Martin, who had expressed interest in the position.
- PCSO appealed to the CSC Regional Office and later to the national CSC, all of which affirmed the disapproval.
- PCSO’s motion for reconsideration before the CSC was denied.
- The CA subsequently reversed the CSC decision, ruling in favor of Sarsonas.
G.R. No. 185767 (Ortega Appointment)
- PCSO’s Board appointed Lemuel G. Ortega as Assistant Department Manager II of the Planning and Production Department on November 25, 2004.
- The General Manager issued a fourth renewal of Ortega’s temporary appointment.
- The CSC Field Office disapproved the appointment for similar reasons: failure to meet eligibility requirements and existence of qualified eligibles.
- PCSO requested reconsideration citing Ortega’s 39 years of experience and competence and argued that other qualified eligibles lacked the specific training required.
- CSC Regional Office and the national CSC upheld the disapproval and denied reconsideration.
- The CA later reversed and set aside the CSC resolutions, approving Ortega’s appointment.
Court of Appeals’ Ruling
- The CA ruled that the position of Assistant Department Manager II does not fall under the CES.
- It emphasized that CSC erred in requiring Career Service Executive (CSE) eligibility for the position.
- The CA held that the PCSO Board’s resolution to appoint Sarsonas was a policy decision and management prerogative beyond CSC’s review.
- Notably, the position of Assistant Department Manager II was not enumerated under the Administrative Code's CES positions nor identified by the Career Executive Service Board (CESB) as equivalent.
- Appointment was not directly by the President but by the PCSO General Manager, with Board approval, hence not a presidential appointment.
- The CA noted dissenting CSC Commissioner Buenaflor’s opinion criticizing CSC’s classification of such positions as third-level.
- Regarding qualified