MANALAYSAY, KAROL M.

Dennis A. B. Funa Vs The Chairman, CSC, Francisco T. Duque III

G.R. No. 191672
Justice Bersamin

Facts:
• The then President, Arroyo issued EO 864 which allows the Chairman of CSC to
be the BOD/BOT of certain GOCCs.
• Petitioner asserts that EO 864 and Section 14, Chapter 3, Title I-A, Book V of EO
292 violate the independence of the CSC, which was constitutionally created to
be protected from outside influences and political pressures due to the
significance of its government functions. He further asserts that such
independence is violated by the fact that the CSC is not a part of the Executive
Branch of Government while the concerned GOCCs are considered
instrumentalities of the Executive Branch of the Government. In this situation, the
President may exercise his power of control over the CSC considering that the
GOCCs in which Duque sits as Board member are attached to the Executive
Department.
• Funa argues that Section 14, Chapter 3, Title I-A, Book V of EO 292 unduly and
unconstitutionally expands the role of the CSC, which is primarily centered on
personnel-related concerns involving government workers, to include insurance,
housing and health matters of employees in the government service. He
observes that the independence of the CSC will not be compromised if these
matters are instead addressed by entering into a memorandum of agreement or
by issuing joint circulars with the concerned agencies, rather than allowing a
member of the CSC to sit as a member of the governing Boards of these
agencies.
• Petitioner posits that EO 864 and Section 14, Chapter 3, Title I-A, Book V of EO
292 violate the prohibition imposed upon members of constitutional commissions
from holding any other office or employment. A conflict of interest may arise in
the event that a Board decision of the GSIS, PHILHEALTH, ECC and HDMF
concerning personnel-related matters is elevated to the CSC considering that
such GOCCs have original charters, and their employees are governed by CSC
laws, rules and regulations
Issue:

• Does the designation of Duque as member of the Board of Directors or Trustees

of the GSIS, PHILHEALTH, ECC and HDMF, in an ex officio capacity, impair the
independence of the CSC and violate the constitutional prohibition against the
MANALAYSAY, KAROL M.

holding of dual or multiple offices for the Members of the Constitutional

Commissions?
Ruling:
• The Court upholds the constitutionality of Sec 14, Chapter 3, Title I-A, Book V of
EO 292, but declares EO 864 unconstitutional and the designation of Duque in
an ex officio capacity as a member of the BOD/BOT of the GSIS, PHILHEALTH,
ECC and HDMF.
• The Court notes, however, that during the pendency of this petition, Duque’s
designation as Director or Trustee of the GSIS, PHILHEALTH, ECC and PHIC
could have terminated or been rendered invalid by the enactment of Republic Act
No. 10149, thus causing this petition and the main issue tendered herein moot
and academic.
• Appointed to any vacancy shall be only for the unexpired term of the
predecessor. The appointment of a director to fill such vacancy shall be in
accordance with the manner provided in Section 15 of this Act.
• Any provision of law to the contrary notwithstanding, all incumbent CEOs and
appointive members of the Board of GOCCs shall, upon approval of this Act,
have a term of office until June 30, 2011, unless sooner replaced by the
President: Provided, however, That the incumbent CEOs and appointive
members of the Board shall continue in office until the successor have been
appointed by the President.
• A moot and academic case is one that ceases to present a justiciable
controversy by virtue of supervening events, so that a declaration thereon would
be of no practical use or value.
• Nonetheless, this Court has exercised its power of judicial review in cases
otherwise rendered moot and academic by supervening events on the basis of
certain recognized exceptions, namely: (1) there is a grave violation of the
Constitution; (2) the case involves a situation of exceptional character and is of
paramount public interest; (3) the constitutional issue raised requires the
formulation of controlling principles to guide the Bench, the Bar and the public;
and (4) the case is capable of repetition yet evading review.
• To safeguard the independence of these Commissions, the 1987 Constitution,
among others, imposes under Section 2, Article IX-A of the Constitution certain
inhibitions and disqualifications upon the Chairmen and members to strengthen
their integrity, to wit:
• (a) Holding any other office or employment during their tenure;
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MANALAYSAY, KAROL M.

• The issue herein involves the first disqualification abovementioned, which is the
disqualification from holding any other office or employment during Duque’s
tenure as Chairman of the CSC.
• In relation to Section 7, paragraph (2), Article IX-B of the Constitution and the
Court’s pronouncement in Civil Liberties Union v. Executive Secretary.
• 7. x x x
• Unless otherwise allowed by law or the primary functions of his
position, no appointive official shall hold any other office or
employment in the Government or any subdivision, agency or
instrumentality thereof, including government-owned or controlled
corporations or their subsidiaries.
• Apart from violating the prohibition against holding multiple offices, Duque’s
designation as member of the governing Boards of the GSIS, PHILHEALTH,
ECC and HDMF impairs the independence of the CSC.
• The court declares EO 864 unconstitutional and the designation of CSC
Chairman Duque in an ex officio capacity as a member of the BOD/BOT of the
GSIS, PHILHEALTH, ECC AND HDMF unconstitutional because it impairs the
independence of CSC, it amounts to prohibited multiple offices and the provision
per diem is contrary to ex officio principles.