Professional Documents
Culture Documents
Funa v. Duque
Funa v. Duque
Duque
G.R. No. 191672
November 25, 2014
J. Bersamin
Facts:
• On January 11, 2010, then President Gloria Macapagal-Arroyo appointed Duque as Chairman of
the CSC. The Commission on Appointments confirmed Duque’s appointment on February 3,
2010.
• On February 22, 2010,President Arroyo issued Executive Order No. 864 (EO 864), appointing
the chairman of the CSC to the Board of Trustees/Directors of GSIS, Philhealth, ECC and the
HDMF. EO 292 was also mentioned in EO 864, to wit
“Section 14, Chapter 3, Title I-A, Book V of the Administrative Code of 1987
(Executive Order No. 292) expressly states that the Chairman of the CSC shall be a
member of the Board of Directors or of other governing bodies of government
entities whose functions affect the career development, employment, status, rights,
privileges, and welfare of government officials and employees, such as the
Government Service Insurance System, Foreign Service Board, Foreign Trade
Service Board, National Board for Teachers, and such other similar boards as may
be created by law”
Issue:
• Does the designation of Duque as member of the BOD/BOT 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 holding of dual or multiple offices for the Members of the
Constitutional Commissions?
Held:
• Yes, the designation of Duque as member of the BOD/BOT of GSIS, PHILHEALTH, ECC and
HDMF is unconstitutional.
• 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.
• While powers and functions associated with appointments, compensation and benefits affect the
career development, employment status, rights, privileges, and welfare of government officials
and employees, the GSIS, PHILHEALTH, ECC and HDMF are also tasked to perform other
corporate powers and functions that are not personnel-related. All of these powers and functions,
whether personnel-related or not, are carried out and exercised by the respective Boards of the
GSIS, PHILHEALTH, ECC and HDMF. Hence, when the CSC Chairman sits as a member of the
governing Boards of the GSIS, PHILHEALTH, ECC and HDMF, he may exercise these powers
and functions, which are not anymore derived from his position as CSC Chairman, such as
imposing interest on unpaid or unremitted contributions, issuing guidelines for the accreditation of
health care providers, or approving restructuring proposals in the payment of unpaid loan
amortizations.
• The Court also notes that Duque’s designation as member of the governing Boards of the GSIS,
PHILHEALTH, ECC and HDMF entitles him to receive per diem, a form of additional
compensation that is disallowed by the concept of an ex officio position by virtue of its clear
contravention of the proscription set by Section 2, Article IX-A of the 1987 Constitution. This
situation goes against the principle behind an ex officio position, and must, therefore, be held
unconstitutional.
• As provided in their respective charters, PHILHEALTH and ECC have the status of a government
corporation and are deemed attached to the Department of Health and the Department of Labor,
respectively. On the other hand, the GSIS and HDMF fall under the Office of the President. The
corporate powers of the GSIS, PHILHEALTH, ECC and HDMF are exercised through their
governing Boards, members of which are all appointed by the President of the Philippines.
Undoubtedly, the GSIS, PHILHEALTH, ECC and HDMF and the members of their respective
governing Boards are under the control of the President. As such, the CSC Chairman cannot be
a member of a government entity that is under the control of the President without impairing the
independence vested in the CSC by the 1987 Constitution.
• However, the Court holds that Duque is a de facto officer hence all official actions of Duque as a
Director or Trustee of the GSIS, PHILHEAL TH, ECC and HDMF, were presumed valid, binding
and effective as if he was the officer legally appointed and qualified for the office. This
clarification is necessary in order to protect the sanctity and integrity of the dealings by the public
with persons whose ostensible authority emanates from the State. Duque's official actions
covered by this clarification extend but are not limited to the issuance of Board resolutions and
memoranda approving appointments to positions in the concerned GOCCs, promulgation of
policies and guidelines on compensation and employee benefits, and adoption of programs to
carry out the corporate powers of the GSIS, PHILHEALTH, ECC and HDMF.