NUCESO AND OP-CESOAI SUPPORT THE -...
Transcript of NUCESO AND OP-CESOAI SUPPORT THE -...
NUCESO AND OP-CESOAI SUPPORT THE
“CAREER EXECUTIVE SERVICE ACT OF 2014”
Presented by:
ALBERTO A. BERNARDO, CPA, Esq., CESO I
Deputy Executive Secretary, Office of the President
and NUCESO Board Member
12 November 2014
I. COVERAGE
SEC. 3. Coverage. – This Act shall cover the Career
Executive Service which is consists of executive
/[managerial] class of the third level of the career
service in the Executive Branch of the government,
all of whom shall be appointed by the President,
and those occupying positions above division
chief level INVOLVING EXECUTIVE FUNCTIONS IN
DEPARTMENTS, ATTACHED AGENCIES, GOVERNMENT-
OWNED AND CONTROLLED CORPORATIONS AND
STATE UNIVERSITIES AND COLLEGES but are not
appointed by the President.
2 Office of the President Internal Audit Office
1. “(iii) Executive Category – This category
includes managerial positions involved in the
execution of laws, rules and regulations, both in
the national and local governments, in the
legislation of laws and ordinances, and in the
administration of justice. Appointive executive
positions require thorough knowledge acquired
through completion of at least a bachelor’s
degree. x x x.” [underscoring supplied] (Senate and House of Representatives Joint Resolution No. 4, “Joint Resolution Authorizing the President of the Philippines to Modify the Compensation and Position Classification System of Civilian Personnel and the Base Pay Schedule of Military and Uniformed Personnel in the Government, and for Other Purposes”, 17 June 2009)
I. COVERAGE
3 Office of the President Internal Audit Office
II. CAREER EXECUTIVE SERVICE BOARD
SEC. 4. Definition of Terms. As used in this
Act, the following terms shall be construed as
follows:
x x x
(b) Career Executive Service Board (CESB)
refers to the policy making body responsible
for the development, maintenance and
administration of the System, [under the
supervision of the] ATTACHED FOR POLICY AND
PROGRAM COORDINATION TO THE Civil Service
Commission [as provided herein].
4 Office of the President Internal Audit Office
1. “From its inception, the CESB was intended to be
an autonomous entity, albeit administratively
attached to respondent Commission. x x x
By said attachment, CESB was not made to fall
within the control of respondent Commission.
Under the Administrative Code of 1987, the
purpose of attaching one functionally inter-
related government agency to another is to attain
‘policy and program coordination.’” (underscoring
supplied) [Eugenio vs. CSC, G.R. No. 115863, 31 March 1995]
II. CAREER EXECUTIVE SERVICE BOARD
5 Office of the President Internal Audit Office
2. “Under our system of government, all Executive
departments, bureaus, and offices are under
the control of the President of the Philippines.
Section 17, Article VII of the Constitution
provides:
II. CAREER EXECUTIVE SERVICE BOARD
The President shall have control of all
the executive departments, bureaus, and
offices. He shall ensure that the laws be
faithfully executed. ” (emphasis in the case) [Rufino vs.
Endriga, G.R. No. 139554, 21 July 2006]
6 Office of the President Internal Audit Office
SEC. 4. Definition of Terms. As used in this
Act, the following terms shall be construed as
follows:
x x x
(e) Career Executive System (System) refers
to the system designed to professionalize and
promote career development among the
executive [and managerial personnel] of the third
level in the career service.
II. CAREER EXECUTIVE SERVICE BOARD
7 Office of the President Internal Audit Office
1. “(iii) Executive Category – This category
includes managerial positions involved in the
execution of laws, rules and regulations, both in
the national and local governments, in the
legislation of laws and ordinances, and in the
administration of justice. Appointive executive
positions require thorough knowledge acquired
through completion of at least a bachelor’s
degree. x x x.” [underscoring supplied] (Senate and House of Representatives Joint Resolution No. 4, “Joint Resolution Authorizing the President of the Philippines to Modify the Compensation and Position Classification System of Civilian Personnel and the Base Pay Schedule of Military and Uniformed Personnel in the Government, and for Other Purposes”, 17 June 2009)
II. CAREER EXECUTIVE SERVICE BOARD
8 Office of the President Internal Audit Office
IV. THIRD LEVEL POSITION
SEC. 4. Definition of Terms. - As used in this Act,
the following terms shall be construed as follows:
x x x
(h) Third level refers to the highest level in the
career service of the Civil Service System which
includes [positions in the executive and
managerial class] THE CLOSED CAREER POSITIONS;
CAREER EXECUTIVE SERVICE (CES) POSITIONS;
CAREER OFFICERS, OTHER THAN THOSE IN THE CES;
COMMISSIONED OFFICERS OF THE ARMED FORCES;
AND CAREER PERSONNEL OF GOVERNMENT-
OWNED OR CONTROLLED CORPORATIONS. . . .
9 Office of the President Internal Audit Office
IV. THIRD LEVEL POSITION
IT SHALL COVER [covering] all positions higher
than chief of division, CLASSIFIED AS EITHER:
A) POSITIONS IN THE EXECUTIVE CLASS, AND
B) POSITIONS IN THE HIGHLY TECHNICAL AND
SPECIALIZED CLASS, based on the position
classification system of the Department of Budget
and Management (DBM) and the GOVERNANCE
COMMISSION FOR GOVERNMENT-OWNED OR –
CONTROLLED CORPORATIONS (GCG), WITH THE
QUALIFICATIONS STANDARDS ESTABLISHED BY THE
DEPARTMENTS OR AGENCIES, TO BE APPROVED BY
THE Civil Service Commission.
10 Office of the President Internal Audit Office
1. “(iii) Executive Category – This category
includes managerial positions involved in the
execution of laws, rules and regulations, both in
the national and local governments, in the
legislation of laws and ordinances, and in the
administration of justice. Appointive executive
positions require thorough knowledge acquired
through completion of at least a bachelor’s
degree. x x x.” [underscoring supplied] (Senate and House
of Representatives Joint Resolution No. 4, “Joint Resolution Authorizing the President of the Philippines to Modify the Compensation and Position Classification System of Civilian Personnel and the Base Pay Schedule of Military and Uniformed Personnel in the Government, and for Other Purposes”, 17 June 2009)
IV. THIRD LEVEL POSITION
11 Office of the President Internal Audit Office
2. “SECTION 7. Career Service. – x x x
The Career Service shall include:
(2) Closed Career positions which are
scientific, or highly technical in nature; these
include the faculty and academic staff of
state colleges and universities, and scientific
and technical positions in scientific or
research institutions which shall establish and
maintain their own merit system; . . .
(1) Open Career positions x x x
IV. THIRD LEVEL POSITION
12 Office of the President Internal Audit Office
2. (3) Positions in the Career Executive Service;
namely, Undersecretary, Assistant Secretary, x x x
and other officers of equivalent rank as may be
identified by the Career Executive Service
Board, all of whom are appointed by the
President;
(4) Career officers, other than those in the
Career Executive Service, who are appointed
by the President, such as the Foreign Service
Officers in the Department of Foreign Affairs; . . .
IV. THIRD LEVEL POSITION
13 Office of the President Internal Audit Office
2. (5) Commissioned officers and enlisted
men of the Armed Forces which shall maintain
a separate merit system;
(6) Personnel of government-owned or
controlled corporations, whether per-forming
governmental or proprietary functions, who do
not fall under the non-career service; and
(7) Permanent laborers, x x x.” (underscoring
supplied) [Section 7, Chapter 2, Sub-title A, Title I, Book V, Executive
Order (EO) No. 292, s. 1987, the “Administrative Code of 1987,” 25 July
1987]
IV. THIRD LEVEL POSITION
14 Office of the President Internal Audit Office
3. “Section 4. Science and Technology
Career System. - A career system for
science and technology personnel in the
service of the government which is
patterned after the Scientific Career
System (SCS) shall be formulated by the
DOST in coordination with the Civil Service
Commission.”(underscoring supplied)[Republic Act No. 8439 or “An Act Providing A Magna Carta For Scientists, Engineers, Researchers and Other Science and Technology Personnel in Government”, 22 December 1997]
IV. THIRD LEVEL POSITION
15 Office of the President Internal Audit Office
4. “SEC. 3. Standards. - The Solicitor General shall have cabinet rank and the same qualifications for appointment, rank, prerogatives, salaries, allowances, benefits and privileges as the Presiding Justice of the Court of Appeals; an Associate Solicitor General, those of an Associate Justice of the Court of Appeals.
IV. THIRD LEVEL POSITION
(Republic Act No. 9417 or “An Act To Strengthen the Office of the Solicitor General by Expanding and Streamlining its Bureaucracy, Upgrading Employee Skills and Augmenting Benefits, and Appropriating Funds Therefor and For Other Purposes” and its Implementing Rules and Regulations, 30 March 2007)
The qualification for appointment, rank, prerogatives, salaries, and privileges of Solicitors shall be the same as judges, specified as follows:
Senior State Solicitor Regional Trial Court Judge
State Solicitor II Metropolitan Trial Court Judge
State Solicitor I Municipal Trial Court in Cities Judge
16 Office of the President Internal Audit Office
5. “SEC. 3. Powers and Functions. The
Department of Budget and Management shall
assist the President in the x x x, achievement of
more economy, efficiency in the management
of government operations, administration of
compensation and position classification systems,
assessment of organizational effectiveness x x x.” [Section 3, Chapter 1, Title XVII, Book IV – The Executive Branch, EO 292, s. 1987, or the “Administrative Code 1987, 25 July 1987]
IV. THIRD LEVEL POSITION
17 Office of the President Internal Audit Office
6. “(17) Functional Responsibilities – (a) In addition to the powers and functions provided in this Joint Resolution and Presidential Decree No. 985, as amended x x x, the DBM shall:
[Senate and House of Representatives Joint Resolution No. 4, “Joint Resolution Authorizing the President of the Philippines to Modify the Compensation and Position Classification System of Civilian Personnel and the Base Pay Schedule of Military and Uniformed Personnel in the Government, and for Other Purpose, 17 June 2009]
(i) Prepare and issue the guidelines, rules and regulations necessary to implement the modified Compensation and Position Classification System for all government personnel herein established consistent with the executive orders to be issued by the President; x x x.”
IV. THIRD LEVEL POSITION 18 Office of the President
Internal Audit Office
7. “SEC. 9. Position Titles and Salary Grades. –
All positions in the Position Classification
System, as determined by the GCG and as
approved by the President, shall be allocated
to their proper position titles and salary grades
in accordance with the Index of Occupational
Services, Position Titles and Salary Grades of
Compensation and Position Classification System,
which shall be prepared by the GCG and
approved by the President.” (underscoring supplied) [Chapter III, RA 10149 or the“Governance Act of 2011”, 6 June 2011]
IV. THIRD LEVEL POSITION
19 Office of the President Internal Audit Office
(2) The establishment, administration and
maintenance of qualification standards shall
be the responsibility of the department or
agency, with the assistance and approval of
the Civil Service Commission and in consultation
with the Wage and Position Classification Office.”
8. “SEC. 22. Qualification Standards. – (1) x x x x x x
(underscoring supplied) [Section 22 (2), Chapter 5, Subtitle A, Title I,
Book V, Executive Order No. 292, or the “Administrative Code of 1987”,
25 July 1987, as amended]
IV. THIRD LEVEL POSITION
20 Office of the President Internal Audit Office
9. “Since the responsibility for the establishment,
administration and maintenance of qualification
standards lies with the concerned department
or agency, the role of the CSC is limited to
assisting the department or agency with
respect to these qualification standards
and approving them. The CSC cannot
substitute its own standards for those of the
department or agency, specially in a case
like this in which an independent constitutional
body is involved.” (underscoring supplied) [Office of the Ombudsman vs. Civil Service Commission, G.R. No. 162215, 30 July
2007]
IV. THIRD LEVEL POSITION
21 Office of the President Internal Audit Office
V. THE CAREER EXECUTIVE SYSTEM
SEC. 5. The Career Executive System. – The
System shall cover all executive and managerial
positions in the third level of the career service in
the Executive Branch, as defined in Section 4
hereof. Entry and advancement in the System
shall be governed by the principles of merit and
fitness and such other requirements, as may be
prescribed by the CESB. The System shall be
essentially characterized by the principles of merit
and fitness, security of tenure and mobility.
22 Office of the President Internal Audit Office
1. “(iii) Executive Category – This category
includes managerial positions involved in the
execution of laws, rules and regulations, both in
the national and local governments, in the
legislation of laws and ordinances, and in the
administration of justice. Appointive executive
positions require thorough knowledge acquired
through completion of at least a bachelor’s
degree. x x x.”(underscoring supplied) [Senate and House
of Representatives Joint Resolution No. 4, “Joint Resolution Authorizing the President of the Philippines to Modify the Compensation and Position Classification System of Civilian Personnel and the Base Pay Schedule of Military and Uniformed Personnel in the Government, and for Other Purposes”, 17 June 2009]
V. THE CAREER EXECUTIVE SYSTEM
23 Office of the President Internal Audit Office
VI. CAREER EXECUTIVE SERVICE BOARD
SEC. 6. Career Executive Service Board (CESB). -
A Career Executive Service Board, hereinafter
referred to as the Board, [under the supervision of]
ATTACHED TO the Civil Service Commission, is
hereby created. It shall be A COLLEGIAL BODY
composed of [the Chairperson of the Commission
who shall serve as the Board’s ex-officio
Chairperson and of four (4)] SIX (6) ex-officio
members, namely: THE CHAIRPERSON OF THE
COMMISSION; THE EXECUTIVE SECRETARY OR
HIS/HER PERMANENT REPRESENTATIVE, HOLDING A
POSITION NOT LOWER THAN A DEPUTY EXECUTIVE
SECRETARY/ UNDERSECRETARY; . . .
24 Office of the President Internal Audit Office
VI. CAREER EXECUTIVE SERVICE BOARD
THE Secretary of the Department of Budget
and Management (DBM) or his/her permanent
representative holding a position not lower
than an Undersecretary; the President of the
Development Academy of the Philippines (DAP);
he Dean of the National College of Public
Administration and Governance (NCPAG) of the
University of the Philippines; and the representative
of a duly accredited national federation or union
of CESOs. . . .
25 Office of the President Internal Audit Office
VI. CAREER EXECUTIVE SERVICE BOARD
The Board shall also include three (3) members
to be appointed by the President for a term of
three (3) years, namely: a representative of a
nationwide association of personnel and/or
human resource practitioners in the private
sector; a representative of the Philippine
Association of Professional Regulatory Board
Members (PAPRBM) and a representative ]of the
Office of the President] FROM THE RANKS OF
RETIRED CAREER EXECUTIVE SERVICE OFFICERS.
26 Office of the President Internal Audit Office
VI. CAREER EXECUTIVE SERVICE BOARD
1. Attachment of CES Board to the CSC for
policy and program coordination and the
ex-officio Chairman or member of CESB
coming from the CSC are sufficient
mechanisms that will integrate human
resource development programs of the CES
in all levels and ranks in the civil service.
27 Office of the President Internal Audit Office
2. “From its inception, the CESB was intended to
be an autonomous entity, albeit administratively
attached to respondent Commission. x x x By
said attachment, CESB was not made to fall
within the control of respondent Commission.
Under the Administrative Code of 1987, the
purpose of attaching one functionally inter-
related government agency to another is to
attain ‘policy and program coordination.’” (underscoring supplied) [Eugenio vs. CSC, G.R. No. 115863, 31 March
1995]
VI. CAREER EXECUTIVE SERVICE BOARD
28 Office of the President Internal Audit Office
3. “Under our system of government, all Executive
departments, bureaus, and offices are under
the control of the President of the Philippines.
Section 17, Article VII of the Constitution
provides:
The President shall have control of all
the executive departments, bureaus, and
offices. He shall ensure that the laws be
faithfully executed.” (emphasis in the case) [Rufino vs.
Endriga, G.R. No. 139554, 21 July 2006]
VI. CAREER EXECUTIVE SERVICE BOARD
29 Office of the President Internal Audit Office
4. It is further suggested that the ex-officio
members of the CES Board be increased from
four (4) to six (6). To address the issues on
discipline and sanction on unsatisfactory
performance, it is proposed that the Executive
Secretary or his/her permanent representative
- holding a position of not lower than a Deputy
Executive Secretary or Undersecretary, shall sit
as an ex-officio member of the Board.
VI. CAREER EXECUTIVE SERVICE BOARD
30 Office of the President Internal Audit Office
VII. POWERS AND FUNCTIONS OF THE BOARD
SEC. 7. Powers and Functions of Board. - The
Board shall be the policy-making body for the
System. It shall promulgate rules, standards and
procedures in the recruitment, selection, assignment
to positions, [attestation of appointment to CES
positions], conferment of ranks, classification,
compensation, mobility, performance management,
tour of duty, rewards and incentives, training and
career development of CESOs and CESEs. . . .
31 Office of the President Internal Audit Office
VII. POWERS AND FUNCTIONS OF THE BOARD
[Provided, That in the exercise of its power of
supervision, the Commission may motu
proprio review, revise or reverse any policy of
the Board within a period of thirty (30) days
from receipt of written notice thereof:
Provided, further, That if the Commission does
not act within the said period, the subject
policy of the Board shall be deemed as
presumptively approved by the Commission].
32 Office of the President Internal Audit Office
VII. POWERS AND FUNCTIONS OF THE BOARD
1. “The power to appoint is essentially executive
in nature, and the legislature may not interfere
with the exercise of this executive power
except in those instances when the Constitution
expressly allows it to interfere. x x x The
scope of the legislature’s interference in the
executive’s power to appoint is limited to the
power to prescribe the qualifications to an
appointive office. Congress cannot appoint a
person to an office in the guise of prescribing
qualifications to that office.” (underscoring supplied)
33 Office of the President Internal Audit Office
[Pimentel et. al. vs. Ermita et. Al., G.R. No. 164978, 13 October 2005]
VIII. SECURITY OF TENURE
SEC. 10. Security of Tenure. A CES incumbent
shall enjoy security of tenure in the CES based
on eligibility, INTEGRITY, AND PERFORMANCE
ACCOUNTABILITY. They shall not be suspended
nor dismissed except for cause and with due
process of law.
34 Office of the President Internal Audit Office
1. “Nananawagan po ako sa Kongreso: suriin
natin ang ating Civil Service Code at PD 1,
upang maisaayaos sa lalong madaling
panahon. Suportado ko ang pagbuo ng
mekanismong magbabalik sa dangal ng
serbisyo-publiko; na tanging mga tapat,
mahuhusay at may prinsipyong mga lingkod-
bayan lamang ang maaring makapasok at
manatili sa gobyerno.” (underscoring supplied) [Transcript
of the Fourth State of the Nation Address (Tagalog version) of
President Benigno S. Aquino III, 22 July 2013
VIII. SECURITY OF TENURE
35 Office of the President Internal Audit Office
2. “A Department/Agency shall determine
and officially adopt a percentage weight
allocation scheme based on the following
ranges:
[“Rule III, Section 2(E), CESB Resolution No. 661, “Guidelines/Rules and Regulations of the Career Executive Service Performance Evaluation System (CESPES), 23 January 2007]
Kinds of Milestones
Percentage of Weight Allocations for Different Positions/Levels Prescribed
by the CESB
Director I to III Director IV to Undersecretary
Leading and Innovating 30-50% 60-80%
Regular/Routing 50-70% 20-40%
TOTAL 100% 100%
VIII. SECURITY OF TENURE
36 Office of the President Internal Audit Office
3.1. “SEC. 8. Submission of Performance
Evaluation Reports. - The Secretary shall
formulate and enforce a system of
measuring and evaluating periodically
and objectively the performance of the
Department and submit the same annually
to the President.”(underscoring supplied) [Chapter 2,
Book IV - The Executive Branch, Executive Order (EO) No. 292 s. 1987, the “Administrative Code of 1987”, 25 July 1987, as amended]
VIII. SECURITY OF TENURE
37 Office of the President Internal Audit Office
3. Output/Outcome-Based
3.2. “SECTION 3. Harmonized RBPMS.
The Organizational Performance Indicators
Framework (OPIF) and the Results Matrix (RM)
shall be the underlying frameworks for the
proposed RBPMS, which will be used by all
government agencies mandated to exercise
broad oversight over the performance of all
agencies in the government.” (underscoring supplied)
[Administrative Order No. 25, s. 2011, “Creating an Inter-agency
Task Force on the Harmonization of National Government
Performance Monitoring, Information and Reporting Systems”, 21
December 2011]
VIII. SECURITY OF TENURE
38 Office of the President Internal Audit Office
3. Output/Outcome-Based
in brackets supplied) [Administrative Order No. 25, s. 2011, “Creating an Inter-agency Task Force on the Harmonization of National Government Performance Monitoring, Information and Reporting Systems”, 21 December 2011]
3.3. “SECTION 4. Involvement of other Government
Oversight Offices. The Task Force shall involve
the Civil Service Commission (CSC) and the
Career Executive Service Board (CESB) in
order to align the Strategic Performance
Management [System] (SPMS) of CSC and
the Career Executive Service Performance
Evaluation System (CESPES) of CESB to the
proposed RBPMS. x x x.” (underscoring supplied; word
VIII. SECURITY OF TENURE
39 Office of the President Internal Audit Office
3. Output/Outcome-Based
3.4. “The PBB shall be characterized as a system
of ranking units and personnel within an
organization x x x on the following pillars:
i. Department’s Major Final Outputs;
ii. Department’s commitments to the
President which are supportive of the
priorities under EO 43; and
iii. Good governance conditions to be
determined by IATF under AO 25.” (underscoring supplied) [Section 2 (a), Executive Order No. 80,
“Directing the Adoption of a Performance-Based Incentive System
for Government Employees”, 20 July 2012]
VIII. SECURITY OF TENURE
40 Office of the President Internal Audit Office
3. Output/Outcome-Based
3.5. “PURPOSE. – The PES shall provide the framework for setting the organizational targets of a GOCC. x x x
(a)Determining the grant of Performance-Based Incentives;
(b)A component of the criteria for determining whether Appointive Directors are eligible for reappointment; and
(c) ‘Ascertain whether such GOCC should be reorganized, merged, streamlined, abolished or privatized . . .’” (emphasis and underscoring in the Memorandum Circular) [Item 2, GCG Memorandum Circular No. 2013-02, “Performance Evaluation System for the GOCC Sector”, 29 April 2013]
VIII. SECURITY OF TENURE
41 Office of the President Internal Audit Office
3. Output/Outcome-Based
3.6. “Section. 93. Grounds and Procedure for Dropping from the Rolls. - x x x
[underscoring supplied] (Rule 19, Revised Rules on Administrative Cases in the Civil Service, CSC Resolution No. 1101502, November 8, 2011)
1. An official or employee who is given two (2) consecutive unsatisfactory ratings may be dropped from the rolls after due notice. x x x
2. An official or employee, who for one evaluation period is rated poor in performance, may be dropped from the rolls after due notice. x x x. “
b. Unsatisfactory or Poor Performance
a. x x x
VIII. SECURITY OF TENURE
42 Office of the President Internal Audit Office
3. Output/Outcome-Based
3.7. “[T]he Office of the Secretary (OSEC) in a
Department or an equivalent unit in
Department-level agencies shall be
considered as one (1) delivery unit to
include the OSEC itself and all the Offices
of the Department Undersecretaries and
Assistant Secretaries.”(Item 3.11, IATF MC No. 2012-05
“Guidelines to Clarify the Eligibility and the Ranking of Personnel in Line with the Grant of Performance-Based Bonus (PBB) for FY 2012”, 14 January 2013)
VIII. SECURITY OF TENURE
43 Office of the President Internal Audit Office
3. Output/Outcome-Based
3.8. “Third level officials within the bureaus/
offices/delivery units (such as Bureau
Directors and Assistant Directors) may be
ranked in two ways, subject to the
recommendation of the PMG and the
Agency Head:
(underscoring supplied) [“Item 3.12, IATF M.C. No. 2012-1 “Guidelines on the Cascading of Department Performance Targets in line with Executive Order No. 80, 13 August 2012]
3.12.1. Include said officials in the ranking
of personnel within each bureau/
office/ delivery unit; or
3.12.2. Include said officials in the ranking
of the personnel within the OSEC.”
VIII. SECURITY OF TENURE
44 Office of the President Internal Audit Office
3. Output/Outcome Based
IX. COMPENSATION
SEC. 11. Compensation. – A CESO shall
be compensated according to rank and
performance. In case a CESO occupies a position
whose salary grade is higher than that of the rank
the CESO is holding, the CESO shall receive the
difference between the salary grade of the
position and the rank. The Board, in coordination
with the [Commission] CSC, the GCG and the
DBM, shall develop and periodically review a
compensation plan for CESOs. The employing
agency shall provide the funds to pay the salary,
fringe benefits and allowances of the CESO.
45 Office of the President Internal Audit Office
1. “SEC. 9. Position Titles and Salary Grades.—All
positions in the Positions Classification System, as
determine by the GCG and as approved by the
President, shall be allocated to their proper
position titles and salary grades in accordance
with n Index of Occupational Services, Position
Titles and Salary Grades of the Compensation
and Position Classification System, which shall be
prepared by the GCG and approved by the
President.” (underscoring supplied) [Chapter III, RA 10149, “GOCC
Governance Act of 2011”, 6 June 2011]
IX. COMPENSATION
46 Office of the President Internal Audit Office
X. FUNCTIONAL EXPERTISE
SEC. 12. Rank System in the Career Executive Service. – [A CESO shall be appointed in accordance with the rank system, which shall be established and determined by the Board.] THE BOARD SHALL ESTABLISH THE RANK CLASSIFICATION IN THE CES. THE Rank classification shall be based on [proven competence and qualifications] FUNCTIONAL EXPERTISE such as appropriate [academic and professional] EXECUTIVE AND TECHNICAL background, broad levels of responsibility and other relevant considerations as may be prescribed by the Board. THE BOARD SHALL RECOMMEND TO THE PRESIDENT THE CONFERMENT OF CESO RANK TO QUALIFIED CESES ACCORDING TO THE ESTALBISHED RANK CLASSIFICATION SYSTEM.
47 Office of the President Internal Audit Office
1. “The mandatory tour of duty not only
interferes with the power of the President
to assign officials to or retain officials in
positions to which they may be best
qualified or effective, but simultaneously
ignores the functional expertise, qualification
and performance of officials in the Career
Executive Service.”(Veto Message of President Benigno
S. Aquino, III, on S. No. 3215/H. No. 6877, 24 May 2013)
X. FUNCTIONAL EXPERTISE
48 Office of the President Internal Audit Office
2. “e. Assignments, Reassignments and Transfers.
Depending upon their ranks, members of
the Service shall be assigned to occupy
positions Undersecretary, Assistant Secretary,
x x x on the basis of the members’
functional expertise…..” (underscoring original in the case; emphasis supplied) [Cuevas vs. Bacal, G.R No. 139382, 6 December 2000; Item No. 5, Article IV, Part III, Volume I, PD No. 1, otherwise known as the “Integrated Reorganization Plan”, 24 September 1972, as amended]
X. FUNCTIONAL EXPERTISE
49 Office of the President Internal Audit Office
3. “f. Functional Groupings. Members of the
Career Executive Service shall be
divided into a number of broad
functional groupings based on the
subject matter of specialization, not
on the particular department in which
the work is done.” (underscoring original in the law; emphasis supplied) [Item No. 5, Article IV (Career
Executive Service), Part III (Civil Service), Volume I, Presidential Decree No. 1, otherwise known as the “Integrated Reorganization Plan”, 24 September 1972, as amended]
X. FUNCTIONAL EXPERTISE
50 Office of the President Internal Audit Office
4. “Skilled in both techniques and
processes of management, these
career executive will act as catalyst for
administrative efficiency and as
agencies of administrative innovation.” (Article IV, Chapter 1, Part III, Summary Justifications and
Supporting Tables, Volume II, PD No. 1, “Reorganizing the Executive Branch of the National Government”, 24 September 1972, as amended)
X. FUNCTIONAL EXPERTISE
51 Office of the President Internal Audit Office
5. “SECTION 1. Purpose and Number of
Departments. - The Executive Branch
shall have such Departments as are
necessary for the functional distribution
of the work of the President and for the
performance of their functions.” (underscoring supplied) [Chapter I, Book IV – The Executive Branch, Executive Order No. 292 , s. 1987 or the “Administrative Code of 1987”, 25 July 1987, as amended]
X. FUNCTIONAL EXPERTISE
52 Office of the President Internal Audit Office
(a) x x x
6. “SEC. 39. Secretary’s Authority. – (1) The Secretary shall have supervision and control over the bureaus, offices, and agencies under him, subject to the following guidelines:
(b) With respect to functions involving discretion, experienced judgment or expertise vested by law upon a subordinate agency, control shall be exercised in accordance with said law; and
x x x.” (underscoring supplied) [Chapter 8, Book IV – The Executive Branch,
Executive Order (EO) No. 292 s. 1987, the “Administrative Code of
1987”, 25 July 1987, as amended]
X. FUNCTIONAL EXPERTISE
53 Office of the President Internal Audit Office
7. “Mandating additional duties and functions
to the President, Vice-President, Cabinet
Members, their deputies or assistants which
are not inconsistent with those already
prescribed by their offices or appointments
by virtue of their special knowledge, expertise
and skill in their respective executive offices is
a practice long-recognized in many
jurisdictions. . . .
X. FUNCTIONAL EXPERTISE
54 Office of the President Internal Audit Office
X. FUNCTIONAL EXPERTISE
7. It is a practice justified by the demands of
efficiency, policy direction, continuity and
coordination among the different offices
in the Executive Branch in the discharge
of its multifarious tasks of executing and
implementing laws affecting national interest
and general welfare and delivering basic
services to the people.”’(underscoring supplied) [Civil Liberties Union vs. Executive Secretary, G.R. No. 83896, 22 February 1991]
55 Office of the President Internal Audit Office
8. “Factual findings of administrative agencies
are generally respected and even accorded
finality because of the special knowledge and
expertise gained by these agencies from
handling matters falling under their specialized
jurisdiction.” (underscoring supplied) [Modesto vs. Urbina, G.R.
No. 189859, 18 October 2010]
X. FUNCTIONAL EXPERTISE
56 Office of the President Internal Audit Office
9. “(iii) Executive Category – This category
includes managerial positions involved in the
execution of laws, rules and regulations, both in
the national and local governments, in the
legislation of laws and ordinances, and in the
administration of justice. Appointive executive
positions require thorough knowledge acquired
through completion of at least a bachelor’s
degree. x x x.” [underscoring supplied] (Senate and House of Representatives Joint Resolution No. No. 4, “Joint Resolution Authorizing the President of the Philippines to Modify the Compensation and Position Classification System of Civilian Personnel and the Base Pay Schedule of Military and Uniformed Personnel in the Government, and for Other Purposes”, 17 June 2009)
X. FUNCTIONAL EXPERTISE
57 Office of the President Internal Audit Office
10. “’Section 4. Fundamental principles. – Financial
transactions and operations of any government
agency shall be governed by the fundamental
principles set forth hereunder, to wit:
(8) Generally accepted principles and
practices of accounting as well as of sound
management and fiscal administration shall be
observed, provided that they do not contravene
existing laws and regulations.’”(underscoring supplied) [Yap
x x x
vs. Commission on Audit, G.R. No. 158562, April 23, 2010, quoting Presidential Decree (PD) No. 1445, the “Government Auditing Code of the Philippines”, 11 June 1978, as amended]
X. FUNCTIONAL EXPERTISE
58 Office of the President Internal Audit Office
11. “’[F]ailed to uphold the law and provide
a sound legal assistance and support to
the mayor in carrying out the delivery of
basic services and provisions of adequate
facilities when he advised [the mayor] to
proceed with the construction of the subject
projects without prior competitive bidding.’” [underscoring supplied; words in parentheses in the case] (Salumbides vs. Ombudsman, G.R. No. 180917, April 23, 2010)
X. FUNCTIONAL EXPERTISE
59 Office of the President Internal Audit Office
12. “Occupying an executive position, respondent
is required to exercise diligence in the highest
degree in the performance of his duties.
Respondent cannot pass responsibility to other
Division which in the first place, he has
supervision and control of, pursuant to Section
31 of RA 4850.” (underscoring supplied) [Office of the President
vs. Cataquiz, G.R. No. 183445, September 14, 2011]
X. FUNCTIONAL EXPERTISE
60 Office of the President Internal Audit Office
13. “In signing the contract, without verifying
compliance of existing laws, respondent falls
short of the required competence expected
of him in the performance of his official
functions. Incompetence, has been defined
as ‘lack of ability, legal qualification or fitness
to discharge the required duty; want of
physical or intellectual or moral fitness.’” (underscoring supplied) [Office of the President vs. Cataquiz, G.R. No. 183445, September 14, 2011]
X. FUNCTIONAL EXPERTISE
61 Office of the President Internal Audit Office
14. ”SEC. 19. Fiduciary Duties of the
Board and Officers. – x x x
(underscoring supplied) [Chapter IV, Republic Act 10149,
“GOCC Governance Act of 2011”, 6 June 2011]
(b) Act with due care,
extraordinary diligence, skill and good
faith in the conduct of the business of
the GOCC;
x x x
x x x.”
X. FUNCTIONAL EXPERTISE
62 Office of the President Internal Audit Office
15. ”SEC. 21. Care, Diligence and Skill in the
Conduct of the Business of the GOCC. -
The members of the Board and the Officers
must exercise extraordinary diligence in the
conduct of the business and in dealing with
the properties of the GOCC. Such degree of
diligence requires using the utmost diligence
of very cautious person with due regard for
all circumstances.” (underscoring supplied) [Chapter IV,
Republic Act 10149, “GOCC Governance Act of 2011”, 6 June
2011]
X. FUNCTIONAL EXPERTISE
63 Office of the President Internal Audit Office
16. “SECTION 1. Definition of Terms. – x x x
x x x
‘Extraordinary Diligence’ x x x when
Directors and Officers act using the utmost
diligence of a very cautious person taking
into serious consideration all the prevailing
circumstances and Material Facts, giving
due regard to the legitimate interests of all
affected Stakeholders.’
x x x.” [GCG Memorandum Circular No. 2012-07, “Code of Corporate Governance for GOCCs”, 28 November 2012, citing Sections 19 and 21 of RA No. 10149, “GOCC Governance Act of 2011”, 6 June 2011]
X. FUNCTIONAL EXPERTISE
64 Office of the President Internal Audit Office
17. “SECTION 1. Definition of Terms. – x x x
x x x
‘Material Information’ (‘Material Fact’) x x x
important in determining whether: (1) to buy, sell,
hold or otherwise transact with the securities issued
by a GOCC; or (2) to the exercise with reasonable
prudence voting rights related to securities held
with such GOCC, or relating to corporate acts,
contracts and transactions which would adversely
affect the operations of the GOCC.
(underscoring supplied) [GCG Memorandum Circular No. 2012-07, “Code of Corporate Governance for GOCCs”, 28 November 2012, citing Rule 3, Implementing Rules and Regulations to the Securities Regulation Code, as amended, 13 February 2004]
x x x.”
X. FUNCTIONAL EXPERTISE
65 Office of the President Internal Audit Office
18. ”SEC. 26. Duty of Diligence. – x x x
x x x
Every Director or Officer, by the act of
accepting such position in the GOCC, affirms
and agrees: (1) to have a working knowledge
of the statutory and regulatory requirements
affecting the GOCC x x x and (2) to always
keep himself informed of industry developments
and business trends in order to safeguard the
GOCC’s interests and preserve its competitiveness.” [GCG Memorandum Circular No. 2012-07, “Code of Corporate Governance for GOCCs”, 28 November 2012]
X. FUNCTIONAL EXPERTISE
66 Office of the President Internal Audit Office
19. “[P]etitioner cannot find solace in the defense
of good faith since not only are senior
government officials, such as the petitioner’s
concerned officials herein, expected to
update their knowledge on laws that may
affect the performance of their functions, but
the laws subject of this case are of such clarity
that the concerned officials could not have
mistaken one for the other.” (underscoring supplied) [Development Bank of the Philippines vs. COA, G.R. No. 202733, September, 30, 2014]
X. FUNCTIONAL EXPERTISE
67 Office of the President Internal Audit Office
20. “We find it rather difficult to believe that
officials holding positions of such rank and
stature, as Chairman x x x and Director x x x,
in this case, would fail to comply with a plain
and uncomplicated order, which has long
been in effect as early as 1995, almost
a decade before their respective travels.” [Development Bank of the Philippines vs. COA, G.R. No. 202733,
September, 30, 2014]
X. FUNCTIONAL EXPERTISE
68 Office of the President Internal Audit Office
21. “We have tasked the DOST to assemble a
body of experts who can critically assess
supplier’s pitches x x x Our operating
principles: the right identification of the
root of the problem; the careful study
and deliberation, grounded on correct
methodology, to arrive at the best
solution.” (Transcript of the President’s Speech [English Version] during the Fourth State of the Nation Address, 22 July 2013)
X. FUNCTIONAL EXPERTISE
69 Office of the President Internal Audit Office
XI. MOBILITY
SEC. 15. Mobility in the Career Executive Service. – A CESO may be assigned to any
position in the System without diminution in rank
and salary BASED ON FUNCTIONAL EXPERTISE. The
tour of duty of a CESO [shall] MAY be for a period
of three (3) years. During this period, the CESO
shall not be transferred to another office or
position without consent. [In filling a vacancy, the
head of the agency shall give preference and
priority to those who have been appointed to
rank or conferred CES eligibility. The Board shall
provide information on vacancies, an updated
list of available qualified persons who may be
assigned, and such other mechanisms to assist
the head of agency in the process of selection.]
70 Office of the President Internal Audit Office
1. “The mandatory tour of duty not only
interferes with the power of the President to
assign officials to or retain officials in
positions to which they may be best
qualified or effective, but simultaneously
ignores the functional expertise, qualification
and performance of officials in the Career
Executive Service.” (Veto Message of President Benigno
S. Aquino, III, on S. No. 3215/H. No. 6877, 24 May 2013)
XI. MOBILITY
71 Office of the President Internal Audit Office
2. “SEC. 2. Declaration of Policy. – It is the
policy of the State under Article IX, B.
Section 3 1987 Philippine Constitution to
establish a career service and to provide
the public sector with a well-selected and
development-oriented corps of public
managers who posses the necessary
expertise and responsive leadership x x x.” (underscoring supplied) [Committee on Civil Service and
Government Reorganization draft version on “Career
Executive Service Act of 2014”]
XI. MOBILITY
72 Office of the President Internal Audit Office
73 Office of the President Internal Audit Office
73 Office of the President Internal Audit Office
74 Office of the President Internal Audit Office
Thank you!