Topic Author Case Title GR No

CONSTITUTIONAL LAW 1
TOPIC CONSTITUTIONAL COMMISSIONS: CSC - DISQUALIFICATIONS AUTHOR 6_Loda
CASE FUNA V. DUQUE 191672

GR NO
TITLE
TICKLER EO 864: CSC Chairman board member of GOCCs DATE November 25, 2014
DOCTRINE No Member of a Constitutional Commission shall, during his tenure, hold any other office or employment.
Neither shall he engage in the practice of any profession or in the active management or control of any business
which in any way may be affected by the functions of his office, nor shall he be financially interested, directly or
indirectly, in any contract with, or in any franchise or privilege granted by the Government, any of its subdivisions,
agencies, or instrumentalities, including government-owned or controlled corporations or their subsidiaries.
FACTS Summarized Facts:

 Jan. 11, 2010: Pres. Arroyo appointed Duque as chairman of CSC, confirmed by the Commission on
Appointments o
 Feb. 22, 2010: Arroyo issued EO 864, providing for the inclusion of the chairman of the civil service
commission in the board of trustees/directors of the GSIS, PhilHealth, Employees’ Compensation
Commission (ECC) And The Home Development Mutual Fund (HDMF)
 Pursuant to EO, Duque was designated as member of the Board of Directors or Trustees of the said
GOCCs
 Funa filed petition assailing constitutionality of the EO, as well as of Sec 14, Chap. 3, Title I-A, Book V of
the 1987 Admin Code, also contending that designation of Duque n said positions in the GOCCs
(Petitioner’s Points)
a) 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
b) Mentioned Provision of Admin Code 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
c) Charters of the GSIS, PHILHEALTH, ECC and HDMF do not mention that the CSC Chairman sits as a
member of their governing Boards in an ex-officio capacity. Such being the case, the President may not
amend the charters, which are enacted by Congress, by the mere issuance of an executive order
d) Provision of Admin Code violate the prohibition imposed upon members of constitutional commissions
from holding any other office or employment. A conflict of interest may arise
(Respondent’s Points)
a) Admin Code preserve the independence of the CSC considering that GOCCs with original charters such
as the GSIS, PHILHEALTH, ECC and HDMF are excluded from the supervision and control that secretaries
and heads exercise over the departments to which these GOCCs are attached. Ultimately, these GOCCs
are exempted from the executive control of the President.
b) Admin Code indicates that the CSC Chairman’s membership in the governing bodies mentioned therein
merely imposes additional duties and functions as an incident and necessary consequence of his
appointment as CSC Chairman.
c) Charters of the GSIS, PHILHEALTH, ECC and HDMF, are consistent with each other. While the charters of
these GOCCs do not provide that CSC Chairman shall be a member of their respective governing Boards,
there is likewise no prohibition mentioned under said charters.
d) To the matter of conflict of interest, respondents point out that Duque is just one member of the CSC,
or of the Boards of the GSIS, PHILHEALTH, ECC and HDMF, such that matters resolved by these bodies
may be resolved with or without Duque’s participation. Respondents submit that the prohibition against
holding any other office or employment under Section 2, Article IX-A of the 1987 Constitution does not
cover positions held without additional compensation in ex officio capacities.
ISSUE/S  Substantive
1. WON 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
2. WON said designation of Duque, although in an ex-officio capacity violated the constitutional prohibition
against the holding of dual or multiple offices for the Members of the Constitutional Commissions
RULING/S  Substantive
1. YES. The Court partially granted the petition.
Section 2, Article IX-A of the 1987 Constitution, provides:
Section 2. No Member of a Constitutional Commission shall, during his tenure, hold any other office or
employment. Neither shall he engage in the practice of any profession or in the active management
or control of any business which in any way may be affected by the functions of his office, nor shall he
be financially interested, directly or indirectly, in any contract with, or in any franchise or privilege
granted by the Government, any of its subdivisions, agencies, or instrumentalities, including
government-owned or controlled corporations or their subsidiaries.
This is intended to safeguard the independence of Constitutional Commissions, provided for in Section
1, Article IX-A of the 1987 Constitution. Although their respective functions are essentially executive in
nature, they are not under the control of the President in the discharge of such functions. Each of the
Constitutional Commissions conducts its own proceedings under the applicable laws and its own rules
and in the exercise of its own discretion. Its decisions, orders and rulings are subject only to review on
certiorari by the Court as provided by Section 7, Article IX-A of the 1987 Constitution.
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. The Court finds
it imperative to interpret this disqualification in relation to Section 7, paragraph (2), Article IX-B of the
Constitution. Section 7, paragraph (2),Article IX-B reads:
Section 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.
Moreover, GSIS, PhilHealth, Employees’ Compensation Commission (ECC) And The Home Development
Mutual Fund (HDMF) have a 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.
2. YES.
Given that Funa was designated as an ex-officio member, the Court reviewed the duties of the CSC
Chairman in relation to the functions of the members of the Board of Trustees for each GOCC mentioned.
The Court found that the GSIS, PHILHEALTH, ECC and HDMF are vested by their respective charters with
various powers and functions to carry out the purposes for which they were created. 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.
Furthermore, 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.
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CONSTITUTIONAL LAW 1

TOPIC CONSTITUTIONAL COMMISSIONS: CSC - DISQUALIFICATIONS AUTHOR 6_Loda

CASE FUNA V. DUQUE 191672

FACTS Summarized Facts:

Section 2, Article IX-A of the 1987 Constitution, provides:

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