Funa v.

Duque III
G.R. No. 191672, November 25, 2014

Facts:

On January 11, 2010, then President Gloria Macapagal-Arroyo appointed Duque as

Chairman of the Civil Service Commission. 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),
whose complete text is quoted as follows:

EXECUTIVE ORDER NO. 864

INCLUSION OF THE CHAIRMAN OF THE CIVIL SERVICE COMMISSION IN THE BOARD OF

TRUSTEES/DIRECTORS OF THE GOVERNMENT SERVICE INSURANCE SYSTEM,
PHILIPPINE HEALTH INSURANCE CORPORATION, EMPLOYEES’ COMPENSATION
COMMISSION AND THE HOME DEVELOPMENT MUTUAL FUND.

Pursuant to EO 864, Duque was designated as a member of the Board of Directors or

Trustees of the following government-owned or government- controlled corporations
(GOCCs): (a) GSIS; (b) PHILHEALTH;(c) ECC; and (d) HDMF.

On April 8, 2010, petitioner Dennis A.B. Funa, in his capacity as taxpayer, concerned
citizen and lawyer, filed the instant petition challenging the constitutionality of EO 864, as
well as Section 14, Chapter 3, Title I-A, Book V of Executive Order No. 292 (EO 292),
otherwise known as The Administrative Code of 1987, and the designation of Duque as a
member of the Board of Directors or Trustees of the GSIS, PHIC, ECC and HDMF for being
clear violations of Section 1 and Section 2, Article IX-A of the 1987 Constitution.

Funa 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 claims
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. 
 Respondents maintain that Duque’s membership in the governing Boards of the
GSIS, PHILHEALTH, ECC and HDMF is constitutional. They explain that EO 864 and Section
14, Chapter 3, Title IA, Book V of EO 292 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. 14 Ultimately, these GOCCs are exempted
from the executive control of the President.15

As 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.16 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:

W/N 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 holding of dual or multiple
office or employment

HELD:

Yes. The Court upholds the constitutionality of Section 14, Chapter 3, Title I-A, Book
V of EO 292, but declares unconstitutional EO 864 and the designation of Duque in an ex
officio capacity as a member of the Board of Directors or Trustees of the GSIS,
PHILHEALTH, ECC and HDMF. 

Since the evident purpose of the framers of the 1987 Constitution is to impose a
stricter prohibition on the President, Vice-President, members of the Cabinet, their
deputies and assistants with respect to holding multiple offices or employment in the
government during their tenure, the exception to this prohibition must be read with equal
severity. On its face, the language of Section 13, Article VII is prohibitory so that it must be
understood as intended to bea positive and unequivocal negation of the privilege of holding
multiple government offices or employment. Verily, wherever the language used in the
constitution is prohibitory, it is to be understood as intended to be a positive and
unequivocal negation. The phrase "unless otherwise provided in this Constitution" must be
given a literal interpretation to refer only to those particular instances cited in the
Constitution itself, to wit: the Vice-President being appointed as a member of the Cabinet
under Section 3, par. (2),Article VII; or acting as President in those instances provided
under Section 7, pars. (2) and (3), Article VII; and, the Secretary of Justice being ex-officio
member of the Judicial and Bar Council by virtue of Section 8 (1), Article VIII.
 Being an appointive public official who does not occupy a Cabinet position (i.e.,
President, the Vice-President, Members of the Cabinet, their deputies and assistants),
Duque was thus covered by the general rule enunciated under Section 7, paragraph (2),
Article IX-B. He can hold any other office or employment in the Government during his
tenure if such holding is allowed by law or by the primary functions of his position.

RATIO DECIDENDI:  While all other appointive officials in the civil service are allowed to
hold other office or employment in the government during their tenure when such is
allowed by law or by the primary functions of their positions, members of the Cabinet, their
deputies and assistants may do so only when expressly authorized by the Constitution
itself. In other words, Section 7, Article IX-B is meant to lay down the general rule
applicable to all elective and appointive public officials and employees, while Section 13,
Article VII is meant to be the exception applicable only to the President, the Vice-President,
Members of the Cabinet, their deputies and assistants. Under Section 17, Article VII of the
Constitution, the President exercises control over all government offices in the Executive
Branch. An office that is legally not under the control of the President is not part of the
Executive Branch, hence when the CSC Chairman sits as a member of the governing Boards
of the GSIS, PHILHEALTH, ECC and HDMF, he may exercise powers and functions which are
not anymore derived from his position as CSC Chairman.