Romualdez-Yap v.

CSC
Romualdez-Yap v. Civil Service Commission
225 SCRA 285

FACTS:
Petitioner, Conchita Romualdez-Yap, was appointed Senior VP assigned to Fund Transfer
Department (FTD) in the Philippine National Bank (PNB) on September 20, 1972. Between
1986 and 1987, she filed applications for leave of absence which were approved. Due to the
critical financial situation of the bank, departments, positions and functions were abolished
or merged. While on leave, EO 80 (Revised Charter of PNB) was approved in Dec 1986. The
EO authorized the reorganization and rehab of PNB. Pursuant to the EO, the Fund Transfer
Department was abolished. Consequently, petitioner was notified of her separation which said
to be effective Feb 16, “1986.”

In 1989, petitioner appealed to CSC. CSC chairman sustained the separation. Ms. Romualdez-
Yap said her separation was done in bad faith because it was made effective before the EO
was passed in Dec 3, 1986 and because of the restoration of the FTD in 1987.

ISSUE:
Is the reorganization of PNB, a government-owned or controlled corporation performing
ministrant functions, valid?

HELD:
Yes. Ministrant functions are those undertaken by way of advancing the general interests of
society and are merely optional. Commercial or universal banking is, ideally, not a
governmental but a private sector endeavor, an optional function of the government. There
are functions of the government which it may exercise to promote merely the welfare,
progress, and prosperity of the people. Thus, reorganization of such corporations like PNB is
valid so long as they are done in good faith as prescribed in the Dario v. Mison doctrine.
Accordingly, the reorganization of PNB is found to be done in good faith by the Court since
it is for the purpose of economy or to make bureaucracy more efficient; and that no dismissal
(in case of dismissal) or separation actually occurs because the position itself ceases to exist.