QuestionsQuestions (CSC MEMORANDUM CIRCULAR NO. 32)
It promotes a high standard of ethics in public service. Public officials and employees must discharge duties with utmost responsibility, integrity, competence, and loyalty; act with patriotism and justice; lead modest lives; and uphold public interest over personal interest.
The CSC recognized that some government employees engaged in entrepreneurial activities to augment income and cope with the rising cost of living, raising concerns about compliance with R.A. 6713.
Entrepreneurship may be allowed subject to specific conditions: strict compliance with Section 7 paragraphs (a), (b), and (c) of R.A. 6713; and other conditions regarding conflict with official functions, time, and non-use of government resources.
Public officials and employees shall not, directly or indirectly, have any financial or material interest in any transaction requiring the approval of their office.
During incumbency, public officials and employees shall not: (1) own, control, manage, or accept employment as officer/employee/consultant/counsel/broker/agent/trustee/nominee in a private enterprise regulated, supervised, or licensed by their office unless expressly allowed by law; or (2) engage in private practice of their profession unless authorized by the Constitution or law and provided it does not conflict or tend to conflict with official functions; or (3) recommend any person for a position in a private enterprise with regular or pending official transactions with their office.
The entrepreneurial activity/business must not conflict or tend to conflict with the official functions of the public official or employee.
The conduct of business/economic ventures shall not be done during office hours nor within the required forty (40) hour work a week period.
The public official/employee shall not, in any manner, use government resources, facilities, equipment, or supplies in the conduct of business/economic ventures.
No. It allows entrepreneurship provided the employee strictly complies with R.A. 6713 (especially Section 7) and the other conditions stated in the Circular.
Examples include working as real estate or insurance agents; direct selling of commodities and merchandise; operating retail stores; managing a farm; and contracting out specialized services.
It may violate Section 7(a) of R.A. 6713 because having a financial or material interest in any transaction requiring approval of their office is unlawful.
Only if authorized by the Constitution or law, and provided that the private practice will not conflict or tend to conflict with their official functions.
It means the general rule forbids participation in such private enterprises, but an exception exists only when a specific law expressly permits the employee’s involvement despite the regulatory/supervisory connection.
It prohibits recommending any person to any position in a private enterprise that has a regular or pending official transaction with the employee’s office.
Because R.A. 6713 and the Circular’s conditions may not be the only relevant rules; other Civil Service laws and regulations can further define permissible or prohibited conduct.
They must ensure: no financial/material interest in transactions needing their office’s approval; no prohibited outside employment/practice/instances of recommending; no conflict with official functions; conduct business only outside office hours and beyond the 40-hour work week; and never use government resources, facilities, equipment, or supplies.