SAMSON VS RESTRIVERA

Petitioner is a government employee, being a department head of the Poplation !ommission "ith offi#e at the Provin#ial
!apitol, Tre#e Martire$ !ity, !avite%
&''(, Petitioner agreed to help her friend, respondent )lia A% Restrivera, to have the latter*s land lo#ated in !armona registered
nder the Torrens System% Petitioner said that the e+penses "old rea#h P(,',''' and a##epted P,',''' to #over the initial
e+penses for the titling%
Pet failed to a##omplish her tas- be#ase it "as fond ot that the land is government property% .hen petitioner failed to retrn
the P,',''', respondent sed her for estafa%
Respondent also filed an administrative #omplaint for grave mis#ond#t or #ond#t nbe#oming a pbli# offi#er against
petitioner before the Offi#e of the Ombdsman%
OM/0 gilty of violating Se#tion 12b3 of R%A% No% 45(6 and sspended her from offi#e for si+ months "ithot pay7 petitioner failed
to abide by the standard in Se#tion 12b3 of R%A% No% 45(6 and deprived the government of the benefit of #ommitted servi#e
"hen she embar-ed on her private interest to help respondent se#re a #ertifi#ate of title over the latter*s land%
M8R0 RE9:!E9 PENA;T< to 6 months7 a##eptan#e of respondent*s payment #reated a per#eption that petitioner is a fi+er%
Se#tion 12b3 of R%A% No% 45(60 pbli# offi#ials shall endeavor to dis#orage "rong per#eptions of their roles as dispensers or
peddlers of nde patronage%7 .hile it may be tre that =petitioner> did not a#tally deal "ith the other government agen#ies
for the pro#essing of the titles% her mere a#t in a##epting the money from the "ith the assran#e that she "old "or- for the
issan#e of the title is already enogh to #reate a per#eption that she is a fi+er7 8rther, her a#t to restore the amont of
=P,','''> "as to avoid possible san#tions 2only done "hen estafa #ase "as filed3 CA affirmed%
isse (0 .ON OM/ has ?risdi#tion, in vie" of the fa#t that the a#t #omplained of involves a private deal bet"een pet and resp%
yes%
Se#tion (62(3 Arti#le @I of the (AB5 !onstittion states that the Ombdsman #an investigate on its o"n or on #omplaint by any
person any a#t or omission of any pbli# offi#ial or employee "hen s#h a#t or omission appears to be illegal, n?st, or
improper%
:nder Se#tion (4(1 of R%A% No% 455', other"ise -no"n as the Ombdsman A#t of (ABA, the ?risdi#tion of the
Ombdsman en#ompasses all -inds of malfeasan#e, misfeasan#e, and nonfeasan#e #ommitted by any pbli# offi#er
or employee dring hisCher tenre%
Se#tion (A(, of R%A% No% 455' also states that the Ombdsman shall a#t on all #omplaints relating, bt not limited, to
a#ts or omissions "hi#h are nfair or irreglar%
Ths, even if the #omplaint #on#erns an a#t of the pbli# offi#ial or employee "hi#h is not servi#eD#onne#ted, the #ase
is "ithin the ?risdi#tion of the Ombdsman% The la" does not Ealify the natre of the illegal a#t or omission of the
pbli# offi#ial or employee that the Ombdsman may investigate% It does not reEire that the a#t or omission be related
to or be #onne#ted "ith or arise from the performan#e of offi#ial dty% Sin#e the la" does not distingish, neither
shold "e%
isse &0 .ON She is administratively liable, even if she the #ase for estafa "as dismissed% <ES%
fll te+t of Se#tion 1 of R%A% No% 45(60
SE!% 1% Norms of !ond#t of Pbli# Offi#ials and Employees% D 2A3 Every pbli# offi#ial and employee shall observe the
follo"ing as standards of personal #ond#t in the dis#harge and e+e#tion of offi#ial dties0
2a3 !ommitment to pbli# interest% D Pbli# offi#ials and employees shall al"ays phold the pbli# interest over and
above personal interest% All government resor#es and po"ers of their respe#tive offi#es mst be employed and sed
effi#iently, effe#tively, honestly and e#onomi#ally, parti#larly to avoid "astage in pbli# fnds and revenes%
2b3 Professionalism% D Pbli# offi#ials and employees shall perform and dis#harge their dties "ith the highest degree
oe+#ellen#e, professionalism, intelligen#e and s-ill% They shall enter pbli# servi#e "ith tmost devotion and dedi#ation
to dty% They shall endeavor to dis#orage "rong per#eptions of their roles as dispensers or peddlers of nde
patronage%
2#3 )stness and sin#erity% D Pbli# offi#ials and employees shall remain tre to the people at all times% They mst a#t
"ith ?stness and sin#erity and shall not dis#riminate against anyone, espe#ially the poor and the nderprivileged%
They shall at all times respe#t the rights of others, and shall refrain from doing a#ts #ontrary to la", good morals, good
#stoms, pbli# poli#y, pbli# order, pbli# safety and pbli# interest% They shall not dispense or e+tend nde favors
on a##ont of their offi#e to their relatives "hether by #onsanginity or affinity e+#ept "ith respe#t to appointments of
s#h relatives to positions #onsidered stri#tly #onfidential or as members of their personal staff "hose terms are
#oterminos "ith theirs
2d3 Politi#al netrality% D Pbli# offi#ials and employees shall provide servi#e to everyone "ithot nfair dis#rimination
and regardless of party affiliation or preferen#e%
2e3 Responsiveness to the pbli#% D Pbli# offi#ials and employees shall e+tend prompt, #orteos, and adeEate
servi#e to the pbli#% :nless other"ise provided by la" or "hen reEired by the pbli# interest, pbli# offi#ials and
employees shall provide information on their poli#ies and pro#edres in #lear and nderstandable langage, ensre
openness of information, pbli# #onsltations and hearings "henever appropriate, en#orage sggestions, simplify
and systemati$e poli#y, rles and pro#edres, avoid red tape and develop an nderstanding and appre#iation of the
so#ioe#onomi# #onditions prevailing in the #ontry, espe#ially in the depressed rral and rban areas%
2f3 Nationalism and patriotism% D Pbli# offi#ials and employees shall at all times be loyal to the Repbli# and to the
8ilipino people, promote the se of lo#allyDprod#ed goods, resor#es and te#hnology and en#orage appre#iation
and pride of #ontry and people% They shall endeavor to maintain and defend Philippine sovereignty against foreign
intrsion%
2g3 !ommitment to demo#ra#y% D Pbli# offi#ials and employees shall #ommit themselves to the demo#rati# "ay of life
and vales, maintain the prin#iple of pbli# a##ontability, and manifest by deed the sprema#y of #ivilian athority
over the military% They shall at all times phold the !onstittion and pt loyalty to #ontry above loyalty to persons or
party%
2h3 Simple living% D Pbli# offi#ials and employees and their families shall lead modest lives appropriate to their
positions and in#ome% They shall not indlge in e+travagant or ostentatios display of "ealth in any form%
F:I;T< O8 VIO;ATION O8 PRO8EESIONA;ISMG NO%
HProfessionalismH is defined as the #ond#t, aims, or Ealities that #hara#teri$e or mar- a profession%
A professional refers to a person "ho engages in an a#tivity "ith great #ompeten#e% Indeed, to #all a person a professional is to
des#ribe him as #ompetent, effi#ient, e+perien#ed, profi#ient or polished%(B In the #onte+t of Se#tion 1 2A32b3 of R%A% No% 45(6,
the observan#e of professionalism also means pholding the integrity of pbli# offi#e by endeavoring Hto dis#orage "rong
per#eption of their roles as dispensers or peddlers of nde patronage%H Ths, a pbli# offi#ial or employee shold avoid any
appearan#e of impropriety affe#ting the integrity of government servi#es%
Io"ever, it shold be noted that Se#tion 12A3 enmerates the standards of personal #ond#t for pbli# offi#ers "ith referen#e
to He+e#tion of offi#ial dties%H
IE;90 both the Ombdsman and !A interpreted Se#tion 12A3 of R%A% No% 45(6 as broad enogh to apply even to private
transa#tions that have no #onne#tion to the dties of one*s offi#e% .e hold, ho"ever, that petitioner may not be penali$ed for
violation of Se#tion 1 2A32b3 of R%A% No% 45(6% The reason thogh does not lie in the fa#t that the a#t #omplained of is not at all
related to petitioner*s dis#harge of her dties as department head of the Poplation !ommission%
In 9omingo v% Offi#e of the Ombdsman, this !ort had the o##asion to rle that failre to abide by the norms of #ond#t nder
Se#tion 12A32b3 of R%A% No% 45(6, in relation to its implementing rles, is not a grond for dis#iplinary a#tion, to "it0
++ The provision #ommands that Hpbli# offi#ials and employees shall perform and dis#harge their dties "ith the
highest degree of e+#ellen#e, professionalism, intelligen#e and s-ill%H
++ 8ollo"ing this perspe#tive, Rle V of the Implementing Rles of R%A% No% 45(6 adopted by the !S! mandates the
grant of in#entives and re"ards to offi#ials and employees "ho demonstrate e+emplary servi#e and #ond#t based on
their observan#e of the norms of #ond#t laid do"n in Se#tion 1%
In other "ords, nder the mandated in#entives and re"ards system, offi#ials and employees "ho #omply "ith the high
standard set by la" "old be re"arded% Those "ho fail to do so #annot e+pe#t the same favorable treatment% 2/3
Io"ever, the Implementing Rles does not provide that they "ill have to be san#tioned for failre to observe these
norms of #ond#t% Indeed, Rle @ of the Implementing Rles affirms as gronds for administrative dis#iplinary a#tion
only a#ts Hde#lared nla"fl or prohibited by the !ode%H Rle @ spe#ifi#ally mentions at least t"enty three 2&63 a#ts or
omissions as gronds for administrative dis#iplinary a#tion% 8ailre to abide by the norms of #ond#t nder Se#tion
12b3 of R%A% No% 45(6 is not one of them% 2C/3
NOT F:I;T< O8 FRAVE MIS!ON9:!T
Mis#ond#t is a transgression of some established and definite rle of a#tion, more parti#larly, nla"fl behavior or gross
negligen#e by a pbli# offi#er% The mis#ond#t is grave if it involves any of the additional elements of #orrption, "illfl intent to
violate the la" or to disregard established rles, "hi#h mst be proved by sbstantial eviden#e% Other"ise, the mis#ond#t is
only simple% !onversely, one #annot be fond gilty of mis#ond#t in the absen#e of sbstantial eviden#e%
In this #ase, respondent failed to prove 2(3 petitioner*s violation of an established and definite rle of a#tion or nla"fl behavior
or gross negligen#e, and 2&3 any of the aggravating elements of #orrption, "illfl intent to violate a la" or to disregard
established rles on the part of petitioner% In fa#t, respondent #old merely point to petitioner*s alleged failre to observe the
mandate that pbli# offi#e is a pbli# trst "hen petitioner allegedly meddled in an affair that belongs to another agen#y and
re#eived an amont for ndelivered "or-%
Respondent*s allegation that petitioner meddled in an affair that belongs to another agen#y is a serios bt nproven
a##sation% !asing the srvey of respondent*s land #an hardly be #onsidered as meddling in the affairs of another government
agen#y by petitioner "ho is #onne#ted "ith the Poplation !ommission% It does not sho" that petitioner made an illegal deal or
any deal "ith any government agen#y%The srvey sho"s only that petitioner #ontra#ted a srveyor%
F:I;T< O8 :N/E!OMINF O8 A P:/;I! O88I!ER TI:S A9MINISTRATIVE;< ;IA/;E
Petitioner*s belated attempt to retrn the amont "as intended to avoid possible san#tions and impelled solely by the filing of
the estafa #ase against her%
8or reneging on her promise to retrn aforesaid amont, petitioner is gilty of #ond#t nbe#oming a pbli# offi#er%
In )oson v% Ma#apagal, "e have also rled that the respondents therein "ere gilty of #ond#t nbe#oming of government
employees "hen they reneged on their promise to have pertinent do#ments notari$ed and sbmitted to the Fovernment
Servi#e Insran#e System after the #omplainant*s rights over the sb?e#t property "ere transferred to the sister of one of the
respondents%
The !onstittion #ategori#ally de#lares as follo"s0 SE!TION (% Pbli# offi#e is a pbli# trst% Pbli# offi#ers and employees
mst at all times be a##ontable to the people, serve them "ith tmost responsibility, integrity, loyalty, and effi#ien#y, a#t "ith
patriotism and ?sti#e, and lead modest lives
Petitioner shold have #omplied "ith her promise to retrn the amont to respondent after failing to a##omplish the tas- she had
"illingly a##epted% Io"ever, she "aited ntil respondent sed her for estafa, ths reinfor#ing the latter*s sspi#ion that petitioner
misappropriated her money% Althogh the element of de#eit "as not proven in the #riminal #ase respondent filed against the
petitioner, it is #lear that by her a#tations, petitioner violated basi# so#ial and ethi#al norms in her private dealings% Even if
nrelated to her dties as a pbli# offi#er, petitioner*s transgression #old erode the pbli#*s trst in government employees,
moreso be#ase she holds a high position in the servi#e%
PAF! VS P;E<TO
9e#ember (A, &''& the Presidential AntiDFraft !ommission 2PAF!3 re#eived an anonymos letterD#omplaint( from alleged
employees of 29P.I3% The letter a##sed 9P.I :nderse#retary Salvador A% Pleyto of e+tortion, illi#it affairs, and
maniplation of 9P.I pro?e#ts%
Pleyto sbmitted his (AAA, &''', and &''( SA;Ns% PAF! e+amined these and observed that, "hile Pleyto said therein that his
"ife "as a bsiness"oman, he did not dis#lose her bsiness interests and finan#ial #onne#tions%
PAF! #harged Pleyto before the Offi#e of the President 2OP3 for violation of Se#tion B of Repbli# A#t 2R%A%3 45(6, and Se#tion
5 of R%A% 6'(A or HThe AntiDFraft and !orrpt Pra#ti#es A#t%H
Pleyto #laimed that he and his "ife had no bsiness interests of any -ind and for this reason, he "rote HNONEH nder the
#olmn H/siness Interests and 8inan#ial !onne#tionsH on his (AAA SA;N and left the #olmn blan- in his &''' and &''(
SA;Ns7 he attribted the mista-e to the fa#t that his SA;Ns "ere merely prepared by his "ife*s boo--eeper%
PAF! fond Pleyto gilty as #harged and re#ommended to the OP his dismissal "ith forfeitre of all government finan#ial
benefits and disEalifi#ation to reDenter government servi#e% OP APPROVE9%
Pleyto filed an :rgent Motion for Re#onsideration0
(3 he shold first be allo"ed to avail of the revie" and #omplian#e pro#edre in Se#tion (' of R%A% 45(6 before he is
administratively #harged7
&3 he indi#ated HNONEH in the #olmn for finan#ial and bsiness interests be#ase he and his "ife had no bsiness interests
related to 9P.I7 and
63 his failre to indi#ate his "ife*s bsiness interests is not pnishable nder R%A% 6'(A%
&'', E+e#tive Se#retary Edardo R% Ermita ordered PAF! to #ond#t a reinvestigation of Pleyto*s #ase% PAF! Eeried 9TI of
Region IIIJ/la#an regarding the bsinesses registered in the name of Migela Pleyto, his "ife% PAF! fond that she operated
the follo"ing 0
(3 R%S% Pa"nshop, registered sin#e May (A, (AA67
&3 M% Pleyto Piggery and Poltry 8arm, registered sin#e 9e#ember &A, (AAB7
63 R%S% Pa"nshopJPlong /hangin /ran#h, registered sin#e )ly &1, &'''7 and
13 RSP ;andry and 9ry !leaning, registered sin#e )ly &1, &''(%
The PAF! also inEired "ith the 9P.I regarding their Revie" and !omplian#e pro#edre% The 9P.I said that, they merely
reminded their offi#ials of the need for them to #omply "ith R%A% 45(6 by filing their SA;Ns on time and that they had no
me#hanism for revie"ing or validating the entries in the SA;Ns of their more than (A,''' permanent, #asal and #ontra#tal
employees%
OP 9ENIE9 M8R%
ISS:E ( 0.ON Pleyto*s failre to indi#ate his spose*s bsiness interests in his SA;Ns a violation of Se#tion B of R%A% 45(6%
the present #ase, on the other hand, is abot his (AAA, &''' and &''( SA;Ns bt his omissions are identi#al% .hile he said that
his "ife "as a bsiness"oman, he also did not dis#lose her bsiness interests and finan#ial #onne#tions in his (AAA, &''' and
&''( SA;Ns% Sin#e the fa#ts and the isses in the t"o #ases are identi#al, the ?dgment in F%R% (4AAB&, the first #ase, is
#on#lsive pon this #ase%
Ths, as in F%R% (4AAB&, Pleyto*s failre to de#lare his "ife*s bsiness interest and finan#ial #onne#tions does not #onstitte
dishonesty and grave mis#ond#t bt only simple negligen#e, "arranting a penalty of forfeitre of the eEivalent of si+ months of
his salary from his retirement benefits
In in F%R% (4AAB&, Pleyto v% Philippine National Poli#e !riminal Investigation and 9ete#tion, the Frop !ort held that0
Neither #an petitioner*s failre to ans"er the Eestion, H9o yo have any bsiness interest and other finan#ial
#onne#tions in#lding those of yor spose and nmarried #hildren living in yor hoseholdGH be tantamont to gross
mis#ond#t or dishonesty% On the front page of petitioner*s &''& SA;N, it is already #learly stated that his "ife is a
bsiness"oman, and it #an be logi#ally ded#ed that she had bsiness interests% S#h a statement of his "ife*s
o##pation "old be in#onsistent "ith the intention to #on#eal his and his "ife*s bsiness interests%
/oth Se#tion 5 of the AntiDFraft and !orrpt Pra#ti#es A#t and Se#tion B of the !ode of !ond#t and Ethi#al
Standards for Pbli# Offi#ials and Employees reEire the a##omplishment and sbmission of a tre, detailed and
s"orn statement of assets and liabilities% Petitioner "as negligent for failing to #omply "ith his dty to provide a
detailed list of his assets and bsiness interests in his SA;N% Ie "as also negligent in relying on the family
boo--eeperCa##ontant to fill ot his SA;N and in signing the same "ithot #he#-ing or verifying the entries therein%
Petitioner*s negligen#e, thogh, is only simple and not gross, in the absen#e of bad faith or the intent to mislead or
de#eive on his part, and in #onsideration of the fa#t that his SA;Ns a#tally dis#lose the fll e+tent of his assets and
the fa#t that he and his "ife had other bsiness interests%
Fross mis#ond#t and dishonesty are serios #harges "hi#h "arrant the removal or dismissal from servi#e of the
erring pbli# offi#er or employee, together "ith the a##essory penalties, s#h as #an#ellation of eligibility, forfeitre of
retirement benefits, and perpetal disEalifi#ation from reemployment in government servi#e% Ien#e, a finding that a
pbli# offi#er or employee is administratively liable for s#h #harges mst be spported by sbstantial eviden#e%
ISS:E &0 .ON nder the Revie" and !omplian#e Pro#edre, Pleyto shold have first been allo"ed to #orre#t the error in his
SA;Ns before being #harged for violation of R%A% 45(6%
IE;90 !ort already held in F%R% (4AAB& that s#h pro#edre #annot limit the athority of the Ombdsman to #ond#t
administrative investigations% R%A% 455', other"ise -no"n as HThe Ombdsman A#t of (ABA, intended to vest in the Offi#e of the
Ombdsman fll administrative dis#iplinary athority
Iere, ho"ever, it "as the PAF! and the OP, respe#tively, that #ond#ted the investigation and meted ot the penalty of
dismissal against Pleyto% !onseEently, the rling in F%R% (4AAB& in this respe#t #annot apply%
No"here in R%A% 45(6 does it say that the Revie" and !omplian#e Pro#edre is a prereEisite to the filing of administrative
#harges for false de#larations or #on#ealments in one*s SA;N% Ths0
Section 10. Review and Compliance Procedure. - (a) The designated Committees of oth !ouses of the Congress shall
estalish procedures for the review of statements to determine whether said statements which have een sumitted on time"
are complete" and are in proper form. #n the event a determination is made that a statement is not so filed" the appropriate
Committee shall so inform the reporting individual and direct him to ta$e the necessar% corrective action.
() #n order to carr% out their responsiilities under this &ct" the designated Committees of oth !ouses of Congress shall have
the power within their respective 'urisdictions" to render an% opinion interpreting this &ct" in writing" to persons covered % this
&ct" su'ect in each instance to the approval % affirmative vote of the ma'orit% of the particular !ouse concerned.
The individual to whom an opinion is rendered" and an% other individual involved in a similar factual situation" and who" after
issuance of the opinion acts in good faith in accordance with it shall not e su'ect to an% sanction provided in this &ct.
(c) The heads of other offices shall perform the duties stated in susections (a) and () hereof insofar as their respective offices
are concerned" su'ect to the approval of the Secretar% of (ustice" in the case of the )*ecutive +epartment and the Chief
(ustice of the Supreme Court" in the case of the (udicial +epartment.
The provision that gives an impression that the Revie" and !omplian#e Pro#edre is a prereEisite to the filing of an
administrative #omplaint is fond in paragraph 2b3 of Se#tion ('7
Paragraph 2b3 #on#erns the po"er of the Revie" and !omplian#e !ommittee to interpret the la" governing SA;Ns% It athori$es
the !ommittee to isse interpretative opinions regarding the filing of SA;Ns% Offi#ers and employees affe#ted by s#h opinions
Has "ell asH all "ho are similarly sitated may be allo"ed to #orre#t their SA;Ns a##ording to that opinion% .hat the la"
prohibits is merely the retroa#tive appli#ation of the #ommittee*s opinions% In no "ay did the la" say that a pbli# offi#er #learly
violating R%A% 45(6 mst first be notified of any #on#ealed or false information in his SA;N and allo"ed to #orre#t the same
before he is administratively #harged%
8rthermore, the only #on#ern of the Revie" and !omplian#e Pro#edre, as per paragraph 2a3, is to determine "hether the
SA;Ns are #omplete and in proper form% This means that the SA;N #ontains all the reEired data, i%e%, the pbli# offi#ial
ans"ered all the Eestions and filled in all the blan-s in his SA;N form% If it finds that reEired information has been omitted, the
appropriate !ommittee shall so inform the offi#ial "ho prepared the SA;N and dire#t him to ma-e the ne#essary #orre#tion%
The Court cannot accept the view that the review required of the Committee refers to the substance of what is stated in
the SALN, i.e., the truth and accuracy of the answers stated in it, for the following reasons:
8irst% Assring the trth and a##ra#y of the ans"ers in the SA;N is the fn#tion of the filer*s oath that to the best of
his -no"ledge and information, the data he provides in it #onstittes the tre statements of his assets, liabilities, net
"orth, bsiness interests, and finan#ial #onne#tions, in#lding those of his spose and nmarried #hildren belo" (B
years of age%&Any falsity in the SA;N ma-es him liable for falsifi#ation of pbli# do#ments nder Arti#le (5& of the
Revised Penal !ode%
Se#ond% The la" "ill not reEire the impossible, namely, that the !ommittee mst as#ertain the trth of all the
information that the pbli# offi#er or employee stated or failed to state in his SA;Ns and remind him of it% The 9P.I
affirms this fa#t in its #ertifi#ation belo"0 This is to #ertify that this 9epartment isses a memorandm every year
reminding its offi#ials and employees to sbmit their 2SA;N3 in #omplian#e "ith R%A% 45(6%
!onsidering that it has appro+imately (A,''' permanent employees pls a variable nmber of #asal and #ontra#tal
employees, the Department does not have the resources to review or validate the entries in all the SALNs%
Offi#ials and employees are assmed to be a##ontable for the vera#ity of the entries #onsidering that the SA;Ns are
nder oath%
Indeed, if the !ommittee -no"s the trth abot the assets, liabilities, and net "orth of its department*s employees,
there "old be no need for the la" to reEire the latter to file their s"orn SA;Ns yearly%
In this #ase, the PAF! s##eeded in dis#overing the bsiness interest of Pleyto*s "ife only after it sbpoenaed from the
9epartment of Trade and IndstryK/la#an #ertified #opies of her bsiness interests there% The Ieads of Offi#es do not have
the means to #ompel prod#tion of do#ments in the hands of other government agen#ies or third persons%
.IERE8ORE, the !ort FRANTS the petition bt finds petitioner Salvador A% Pleyto gilty only of simple negligen#e and
imposes on him the penalty of forfeitre of the eEivalent of si+ months of his salary from his retirement benefits%
FSIS VS !S!
O#tober &B, (AA1 we held that government service rendered on a per diem asis is not creditale in #ompting the length
of servi#e for retirement prposes% Ths, "e reversed the Eestioned resoltions and orders of the 2!S!3 reEiring the 2FSIS3
to #onsider #reditable the servi#es of private respondents on a per diem basis%
Io"ever, private respondent Matilde S% !elo filed a motion for reconsideration of this Court Ls de#ision of O#tober &B, (AA1%
She insists that the servi#es rendered by her as Vi#e Fovernor of !api$, bet"een 9e#ember 6(, (A5, to )anary (, (A5A, be
#onsidered as #reditable for prposes of retirement
The Fovernment Servi#e Insran#e System li-e"ise filed a motion for re#onsideration in behalf of both private respondents /elo
and 9r% Manel /aradero on essentially the same gronds%
ISS:E0 .ON reglar servi#e in government on a per diem basis, "ithot any other form of #ompensation or emolment, is
#ompensation "ithin the #ontemplation of the term Hservi#e "ith #ompensationH nder the Fovernment Servi#e Insran#e A#t of
(AB5%
<ESM .hile "hat respondents /elo and /aradero re#eived "ere denominated as Hper diem,H the amonts re#eived "ere
a#tally in the natre of a #ompensation or pay% .hat shold therefore be #onsidered as #ontrolling in both #ases "old be the
natre of remneration, not the label atta#hed to it%
Respondent /elo held the position of Vi#eDFovernor of !api$ #ontinosly bet"een )anary ,, (A5& p to 8ebrary (, (ABB%
8rom )anary &,, (A5& p to 9e#ember 6(, (A5A, she held offi#e by virte of an ele#tion and "as paid a fi+ed salary%
"rom Decemer #$, $%&% up to "eruar' $, $%((, she held the position of )ice *overnor of Capi+ in a holdover capacit',
ro,en down into two periods
(% A period in "hi#h she was paid on a per diem basis from 9e#ember 6(, (A54 to 9e#ember 6(, (A5A7 and
&% A period in "hi#h she "as paid a fi+ed salary K from )anary (, (AB' to 8ebrary (,(ABB%
!S!0 the servi#es rendered for the first holdover period bet"een )anary 6(, (A54 to )anary (, (A5A "as #reditable for
prposes of retirement% !S! noted that dring the entire holdover period, respondent /elo a#tally served on a fll time basis
as Vi#e Fovernor and "as on #all &1 hors a day7 the period in "hi#h respondent /elo "as paid on a per diem basis shold be
#redited in #ompting the nmber of years of #reditable servi#e to the government,
FSIS0 petition for #ertiorari before this #ort, Eestioning the orders of the !S!% Agreeing that per diems "ere not
#ompensation "ithin the meaning of Se#tion (2#3 of R%A% (,56 "hi#h amended Se#tion (2#3 of !%A% No% (B4 2Fovernment
Servi#e Insran#e A#t 2IERE S! REVERSE9 !S!3
IE;90 the Hper diemH she re#eived "as a#tally paid for in the performan#e of her dties as Vi#eDFovernor of !api$ in a
holdover #apa#ity not as the per diem referred to by se#tion (2#3 of R%A% No (,56 "hi#h amended Se#tion (2#3 of !%A% No% (B4
The afore#ited provision reveals a legislative intent to ma-e a clear distinction etween salar', pa' or
compensation, on one hand, and other incidental allowances, including per diems on the other% Se#tion (2#3
provides0
2#3 Salary, pay or #ompensation shall be #onstred as to e+#lde all bonses, per diems, allo"an#es and
overtime pay, or salary, pay or #ompensation given to the base pay of the position or ran- as fi+ed by la" or
reglations%
Sin#e it is generally held that an allowance for e-penses incident to the discharge of an office is not a salar' of
office, it follo"s that if the remneration re#eived by a pbli# offi#ial in the performance of his duties does not
constitute a mere .allowance for e-penses. ut appears to e his actual ase pa', then no amont of
#ategori$ing the salary as base pay, a Hper diemH "old ta-e the allo"an#es re#eived by petitioner from the
term service with compensation for the prpose of #ompting the nmber of years of servi#e in government%
8rthermore, it "old grossly violate the la"Ls intent to re"ard the pbli# servantLs years of dedi#ated servi#e to
government for s to gloss over the #ir#mstan#es srronding the payment of the said remnerations to the petitioner
in ta-ing a prely me#hani#al approa#h to the problem by a##epting an atta#hed label at fa#e vale%
PER 9IEM :N9ER FSIS ;A.0 a per diem is a daily allo"an#e given for ea#h day an offi#er or employee of government is
a"ay from his home base% This is its traditional meaning0 its sal signifi#ation is as a reimbrsement for e+tra e+penses
in#rred by the pbli# offi#ial in the performan#e of his dties% A :nder this definition the per diem intended to #over the #ost of
lodging and sbsisten#e of offi#ers and employees "hen the latter are on dty otside of their permanent station%
PER 9IEM AS !OMPENSATION ATTA!IE9 TO AN O88I!E0 :nder the #ir#mstan#es obtaining in the #ase of respondent
!elo the per diems received ' her during the period that she acted in holdover capacit' oviousl' were in the nature
of compensation or remuneration for her services as )ice *overnor of the /rovince of Capi+, rather than as a
reimursement for incidental e-penses in#rred "hile a"ay from her home base%
In #onne#tion "ith this, it is important to lay stress to the follo"ing fa#ts0
(% Petitioner rendered servi#e to the government #ontinosly from )anary &,, (A5& to 8ebrary (, (ABB as Vi#e
Fovernor !api$7 9ring a portion of the holdoverDperiod, i%e%, from 9e#ember 6(, (A54 to )anary (( (A5A, payment
for her servi#es to the government "as throgh per diems for every reglar or spe#ial session of the Sanggniang
Panlala"igan attended%
&% !S! noted that0 H=8>ormer Vi#e Fovernor /elo "as on a fll time basis "hen she served % % % on a holdDover
#apa#ity% % % As s#h provin#ial offi#ial she is 2si#3 legally and fa#tally on #all by the provin#ial people and the provin#e
more than eight hors a day, or at any time of the day beyond the pres#ribed "or-ing hors
6% 6% She re#eived no other forms of remneration dring the dispted period%
9O!TRINE0 .hat oght to be #ontrolling in the #ases at ben#h therefore, shold be the natre of the remneration rather than
the label atta#hed to it%
Sin#e the term per diem may be #onstred either as #ompensation or as allo"an#e, it "old be ne#essary for s to
inEire "hether the term per diem in the FSIS ;a" refers to one or the other signifi#ation%
/er diem as compensation, is not what the law contemplates. The #lear intent of the Fovernment Insran#e ;a"
"as to e+#lde those e+tra in#idental e+penses or in#rred on a daily basis #overed by the traditional definition of the
term per diem%
An important fa#t missed from or earlier de#ision "as that, "hile respondent /elo "as paid on a per diem
basis dring her first holdover period as Vi#e Fovernor she was susequentl' paid a fi-ed salar', which
apparentl' rectified an otherwise anomalous situation% The servi#es rendered by respondent /elo having been
#ontinos, the dispted period shold be #redited for prposes of retirement%
/ARA9ERO !ASE0 The same #old be said of the servi#es rendered by respondent /aradero, "ho, before and after the period
in Eestion had an nblemished re#ord of servi#e to the government as a member of the army and as a medi#al offi#er of the
Philippine Medi#are !ommission% The dispted period "as served on a fllDtime basis regardless of the denomination given to
the #ompensation re#eived by him7
9I88EREN!E0 /aradero "as "illing to serve t"o additional years of servi#e to government in order to #omplete the (, year
period reEired by or retirement la"s% The !ivil Servi#e !ommission felt this "as nne#essary and denied the same on the
grond that the period served on a per diem basis, "as, li-e the dispted period in the /elo #ase, #reditable%
RE0 NO 9E9:!TIONS 8ROM TIE SA;ARIES 9:RINF 9ISP:TE9 PERIO9
In respondent /eloLs #ase, before and after that short interregnm, she "as paid a fi+ed salary% She was not dul% informed that
short period was not to e credited in computing the length of her service for retirement purposes. She assumed in all good faith
that she continued to e covered % the ,S#S insurance enefits considering that in fact and in practice the deductions are
virtuall% mandatoril% made from all government emplo%ees on an essentially involntary basis% Similarly, had respondent
/aradero been informed of the need to pay the reEired ded#tions for the prpose of Ealifying for retirement benefits, he
"old have "illingly paid the reEired sms% In a sense, the #ontra#t made bet"een the FSIS and the government employee is
done on a ta-eDitDorDleaveDit basis, that is, it is a virtal #ontra#t of adhesion "hi#h gives the employee no #hoi#e bt to
involntarily a##ede to the ded#tions made from their oftentimes meager salaries% If the FSIS did not ded#t, it "as by its o"n
#hoi#e0 #ontribtions "ere e+a#ted from petitioner before and after the dispted period%
Moreover, the sor#e of FSIS benefits is not in essen#e merely #ontra#tal7 rather, it is a so#ial legislation as #learly indi#ated
in the H"hereasH of Presidential 9e#ree No% ((14%
The sitation as far as private respondents and the FSIS are #on#erned #old be re#tified by ded#ting a reasonable amont
#orresponding to the #ontribtions "hi#h shold have been ded#ted dring the period from the amont of retirement benefits
a##ring to them% It "old be grossly ineEitable K as it "old violate the spirit of the government retirement and insran#e
la"s K to permanently penali$e both respondents /elo and /aradero by ignoring the fa#t of a#tal period of servi#e to
government "ith #ompensation, and deny them the retirement privileges that they, for their nselfish servi#e to the government
?stly deserve%
FRANTE9%