RULE I. GENERAL PROVISIONS

Section 1. Title. These Guidelines shall be known as the 2013 Implementing Guidelines of the Revised Rules on Administrative Cases. (a)

Section 2. Coverage. These Guidelines shall apply to all disciplinary administrative cases brought before the Development Bank of the Philippines (“Bank”) against its officials and employees.

Sexual harassment cases shall be primarily governed by the Administrative Rules on Sexual Harassment Cases (DBP Circular No. 3, dated 27 March 2007). These Guidelines shall apply suppletorily to said cases.

Section 3. Initiation of Administrative Cases. Administrative proceedings may be initiated by the Disciplining Authority motu proprio or upon complaint of any other person, natural or juridical.

Section 4. Nature of Proceedings. The proceedings under these Rules shall be summary in nature and shall be conducted without necessarily adhering to the technical rules of procedure and evidence applicable to judicial proceedings. Records of administrative proceedings, as well as reports and recommendations to the Disciplining Authority, are strictly confidential. Personnel assigned to handle or assist in the handling of administrative cases are deemed to be performing highly confidential functions.

Section 5. Construction. These Guidelines shall be liberally construed in order to promote their objective in obtaining just, speedy, and inexpensive disposition of administrative cases.

RULE II. DEFINITION OF TERMS

Section 1. Adverse Report. An adverse report includes audit reports and other management reports of irregularities that may serve as a basis for disciplinary action.

Section 2. Agency. Agency refers to any bureau, office, commission, administration, board, committee, institute, corporation with original charter, whether performing governmental or proprietary functions, or any other unit of the national government as well as provincial, city or municipal government.

Section 3. Bank. Bank refers to the Development Bank of the Philippines. (n)

Section 4. Civil Service. Civil Service is the generic term which refers to all men and women in all branches, subdivisions, instrumentalities and agencies of the Government, including government-owned or controlled corporations with original charters.

Section 5. Complaint. Complaint is a sworn written statement filed by any person, natural or juridical, other than the Disciplining Authority against a Bank official or employee. (a)

Section 6. Contested Case. A case is deemed a contested case when the respondent in his or her answer to a formal charge or complaint elects a formal investigation.

Section 7. Disciplinary Action. A proceeding by which a Bank official or employee is made answerable for an act or omission in relation to Civil Service and Bank policies, laws, rules and regulations, consistent with due process and the right to security of tenure.

Section 8. Disciplining Authority. Disciplining Authority refers to the person body duly authorized to impose the penalty provided for by law or rules.

For purposes of these Guidelines, in accordance with Section 9 (f) and Section 10 (f) of Executive Order No. 81 dated 3 December 1986, as amended by Republic Act No. 8523 dated 14 February 1998, otherwise known as the “Revised Charter of DBP”, the Disciplining Authority in the Bank shall be as follows:

1. For disciplinary cases involving officers from the rank of Vice President or its equivalent, and other more senior officer positions, the Disciplining Authority is the Board of Directors. By virtue of these Guidelines, this authority is hereby delegated to the President and Chief Executive Officer (CEO) of the Bank.
2. For disciplinary cases involving officers and/or employees below the rank of Vice President or its equivalent, the Disciplining Authority is the President/ CEO of the Bank. The President/CEO may delegate this authority to a Committee to be composed of the Chief Financial Officer of the Bank as Chairperson, the next highest ranking Sector Head as Vice Chairperson, and the Chief Legal Counsel as Member. (a)

Section 9. Employee. Employee includes regular, temporary, coterminous, directly-hired, and casual rank and file employees and officers of the Bank, unless used in a more specific context. (a)

Section 10. Employee Complained of. An employee complained of refers to the employee who is the subject of an adverse report or complaint, including anonymous complaint, but who has not been formally charged or when the complaint has not been given due course by the Disciplining Authority through the issuance of Notice of Charge. (a)

Section 11. Formal Charge. A formal charge is a written specification of a charge or charges against an employee issued by the proper Disciplining Authority.

Section 12. Forum-Shopping. The term refers to the filing of several administrative actions or complaint either simultaneously or successively before another agency or any tribunal having jurisdiction over the case against the same party involving the same essential facts, circumstances, acts, causes of action or relief, and all raising substantially the same issues either pending in, or already resolved adversely by, some other tribunal or agency.

Section 13. Handling Officer/Mediator. Handling Officer/Mediator refers to the person authorized to facilitate settlement or mediation of an administrative case. (n)

Section 14. Hearing Officer/Panel. Hearing Officer/Panel refers to the officer authorized to conduct hearings under Rule VIII of this Circular. (a)

Section 15. Notice of Charge. Notice of Charge refers to a written charge issued by the Disciplining Authority giving due course to the complaint against the person complained of when the charge/s against the latter originated from a complaint initiated by any person, natural or juridical, other than the Disciplining Authority. (n)

Section 16. Party Adversely Affected. Party Adversely Affected refers to the respondent against whom a decision in an administrative case has been rendered or to the disciplining authority in an appeal from a decision reversing or modifying the original decision.

Section 17. Prima Facie Case. A prima facie case exists when there is evidence sufficient to form a belief that an administrative offense has been committed and the employee complained of is probably guilty of it.

Section 18. Respondent. Respondent refers to the person against whom a notice of charge or formal charge has been issued by the Disciplining Authority. (a)

RULE III. ACTION ON COMPLAINT, ANONYMOUS
COMPLAINT AND ADVERSE REPORT

Section 1. Requisites of a Valid Complaint. Except when initiated by the Disciplining Authority or his/her authorized representative, no complaint against an employee shall be given due course unless the same is in writing, subscribed and sworn to by the complainant. In cases initiated by the proper Disciplining Authority or his/her authorized representative, a show-cause order is sufficient.

No anonymous complaint shall be entertained unless the allegations therein are verifiable or there is merit to the allegations or supported by documentary or direct evidence, in which case the person complained of may be required to comment.

The complaint in triplicate copies shall be written in a clear, simple and concise language and in a systematic manner as to apprise the employee complained of, of the nature and cause of the accusation against him/her and to enable him/her to intelligently prepare his/her defense or answer/comment. However, should there be more than one employee complained of, the complainant is required to submit additional copies corresponding to the number of employees complained of.

The complaint shall contain the following:

1. full name and address of the complainant;
2. full name and address of the employee/s complained of as well as his/her position/s and office/s;
3. a narration of the relevant and material facts which shows the acts or omissions allegedly committed;
4. certified true copies of documentary evidence and affidavits of his/her witnesses, if any; and,
5. certification or statement of non-forum shopping.

The absence of any of the aforementioned requirements may cause the dismissal of the complaint without prejudice to its refiling upon compliance with the above requirements.

Section 2. Docketing of Complaints, Adverse Reports, Formal Charges or Notice of Charges. Complaints, Adverse Reports, Formal Charges and Notice of Charges shall be forwarded to the Corporate Governance Office (CGO) for proper docketing, evaluation and appropriate action. (a)

Section 3. Withdrawal of the Complaint. The withdrawal of the complaint does not result in its outright dismissal nor discharge the employee complained of from any administrative liability. Where there are merits to the allegations in the complaint or the allegations are verifiable or where there is documentary evidence that would tend to prove the guilt of the employee/s complained of, the same shall be given due course.

Section 4. Action on the Complaint. Upon receipt of a complaint which is sufficient in form and substance, the Disciplining Authority shall require the employee/s complained of to submit a Counter-Affidavit/Comment under oath, within three (3) days from receipt of the order.

RULE IV. PRELIMINARY INVESTIGATION

Section 1. Preliminary Investigation; Definition. A Preliminary Investigation is a proceeding undertaken to determine whether a prima facie case exists to warrant the issuance of a formal charge or notice of charge. It involves a fact-finding investigation or an ex-parte examination of records and documents submitted by the complainant and the employee/s complained of, as well as documents readily available from other government offices.

Section 2. How conducted. Within five (5) days from receipt of the complaint sufficient in form and substance, the employee/s complained of shall be required to submit his/her counter-affidavit or comment. Where the complaint is initiated by the Disciplining Authority, the CGO Head shall issue a show-cause memorandum directing the employee/s complained of to explain why no administrative case should be filed against him/her. The latter's failure to submit the comment/counter-affidavit/explanation shall be considered a waiver thereof and the preliminary investigation may be completed even without his/her counteraffidavit/ comment.

If necessary, the parties may be summoned to a conference where the investigator may propound clarificatory and other relevant questions.

During the preliminary investigation, the parties may be given the opportunity to submit affidavits and counter-affidavits with supporting documents. CGO may interview witnesses and examine relevant records and documents submitted by the parties or supporting the adverse report. If the employee complained of has previously submitted comments or other documents in an earlier audit or investigation, the same may be considered in the evaluation of the adverse report or complaint. (a)

Section 3. Duration of the Investigation. Preliminary investigation shall commence not later than five (5) days from receipt of the complaint or adverse report by the CGO and shall be terminated within twenty (20) days thereafter.

Section 4. Investigation Report. Within five (5) days from the termination of the preliminary investigation, the CGO Head shall submit to the Disciplining Authority the Investigation Report together with the complete records of the case, which may recommend the closure of the report, dismissal of the complaint, issuance of formal charge or notice of charge against the employee complained of, or referral/indorsement of the case to appropriate quasi-judicial bodies or other agencies for proper disposition. (a)

Section 5. Decision or Resolution After Preliminary Investigation. The Disciplining Authority shall act on the Investigation Report, as follows:

1. In case of adverse report or anonymous complaint, the Disciplining Authority shall issue a formal charge against the employee/s complained of where prima facie case exists, otherwise, the Disciplining Authority shall order the closure or dismissal of the same.
2. In case of a complaint, the Disciplining Authority shall give due course to the complaint by issuing notice of charge/s against the employee complained of where prima facie case exists, otherwise, the Disciplining Authority shall dismiss the same.
   
   The employee complained of shall be furnished with a copy of the complaint, together with the sworn statements of witnesses and other supporting documents, if available.
   
   If the complaint is dismissed, the employee complained of shall also be notified in writing of the dismissal.
   
   
3. In both cases, the Disciplining Authority may refer or indorse the case against the employee/s complained of to quasi-judicial bodies or other agencies for appropriate action. (a)

1. The penalty of forced resignation may be imposed instead of dismissal.
2. The penalty of transfer or demotion may be imposed instead of suspension from one (1) month and one (1) day to one (1) year. The penalty of fine may be imposed instead of suspension from one (1) month and one (1) day to six (6) months. Fine as an alternative penalty shall not exceed the equivalent of six (6) months of the respondent's salary at the time the decision becomes final and executory.
3. The grave offense of Inefficiency and Incompetence in the performance of official duties may be punishable by Demotion instead of suspension of six (6) months and one (1) day to one (1) year for the first offense. In this case, the guilty person shall be appointed to the next lower position to which he/she is qualified in the plantilla of the Bank. In case there is no such next lower position available, he/she shall suffer diminution in salary corresponding to the next lower salary level. (a)

Section 4. Mitigating, Aggravating or Alternative Circumstances. In the imposition of penalties, mitigating, aggravating and alternative circumstances attendant to the commission of the offense shall be considered, particularly the following:

1. Physical illness;
2. Good faith;
3. Malice;
4. Time and place of offense;
5. Taking undue advantage of official position;
6. Taking undue advantage of subordinate;
7. Undue disclosure of confidential information;
8. Use of government property in the commission of the offense;
9. Habituality;
10. Offense is committed during office hours and within the premises of the office;
11. Employment of fraudulent means to commit or conceal the offense;
12. Length of service in the government;
13. Education; or
14. Other analogous circumstances.

The foregoing circumstances must be invoked or pleaded by the proper party, otherwise the same shall not be considered. However, the Disciplining Authority, in the exercise of sound discretion and when justified by the evidence on record, may consider circumstances that are not pleaded or invoked in the interest of fairness and substantial justice.

1. The minimum of the penalty shall be imposed where only mitigating and no aggravating circumstances are present;
2. The medium of the penalty shall be imposed where no mitigating and aggravating circumstances are present or when both are present they equally offset each other;
3. The maximum of the penalty shall be imposed where only aggravating and no mitigating circumstances are present;
4. Where aggravating and mitigating circumstances are present, paragraph [a] shall be applied where there are more mitigating circumstances present; paragraph [b] shall be applied where the circumstances equally offset each other; and paragraph [c] shall be applied where there are more aggravating circumstances.

Section 6. Penalty for Most Serious Offense. If the respondent is found guilty of two or more charges or counts, the penalty to be imposed should be that corresponding to the most serious charge or count and the rest shall be considered as aggravating circumstances.

Section 7. Duration and Effect of Administrative Penalties. The following rules shall govern the imposition of administrative penalties:

1. The penalty of dismissal shall result in the permanent separation of the respondent from the service, with or without prejudice to criminal or civil liability;
2. The penalty of transfer shall carry with it the sanction that failure on the part of the respondent to seek transfer to another office within a period of not less than ninety (90) days, he shall be considered resigned. The penalty of transfer may be imposed with a condition that the respondent shall be barred from holding a position involving property or money responsibility;
3. The penalty of demotion shall include reduction in rank, or salary, or both;
4. The penalty of suspension shall result in the temporary cessation of work for a period not exceeding one (1) year; Suspension of one day or more shall be considered a gap in the continuity of service. During the period of suspension, respondent shall not be entitled to all money benefits including leave credits.
5. The penalty of fine shall be in an amount not exceeding six (6) months salary of respondent. The computation thereof shall be based on the salary rate of the respondent when the decision becomes final and executory;
6. The penalty of reprimand or censure shall not carry with it any accessory penalty nor result in the temporary cessation of work.

Section 8. Administrative Disabilities; Accessories to Administrative Penalties. In case the penalty is dismissal from the service, the following administrative penalties and accessory penalties shall automatically be deemed imposed unless the decision provides otherwise:

1. Cancellation of eligibility
2. Forfeiture of retirement benefits
3. Disqualification for reinstatement or reemployment
4. Bar from taking any Civil Service examination

In case of suspension, the penalty of disqualification for promotion shall likewise be deemed automatically imposed in accordance with Paragraphs b, c and d of the immediately succeeding section.

Section 9. Administrative Disabilities Inherent in Certain Penalties.

1. The penalty of dismissal shall carry with it cancellation of eligibility, forfeiture of retirement benefits, perpetual disqualification from holding public office and bar from taking civil service examinations.
2. The penalty of demotion shall carry with it disqualification from promotion for one (1) year.
3. The penalty of suspension shall carry with it disqualification from promotion corresponding to the period of suspension.
   
   The accessory penalties inherent in the penalty of suspension provided in Section 7 (d), Rule XII of the Guidelines shall continue to apply when the penalty of fine is imposed in lieu of suspension.
   
   Should the respondent fail to pay in full the fine within the prescribed period, he/she shall be deemed to have failed to serve the penalty imposed, hence, the disqualification for promotion shall remain in effect until such time that the fine is fully paid.
   
   
4. The penalty of fine shall carry with it disqualification from promotion for the same period he/she was fined.
5. The penalty of reprimand shall not carry with it any accessory penalties.
6. A warning or admonition shall not be considered a penalty.

Section 10. Effect of Penalties on Bank-Mandated Benefits. The effect of penalties on Bank-mandated benefits shall be as prescribed in the Board resolution, circular or guideline granting or implementing the benefit.

Section 11. Effect of Exoneration on Certain Penalties. The exoneration of respondent shall have the following effects:

1. In case the penalty imposed is a fine, the same shall be refunded.
2. In case the penalty imposed is demotion, the exonerated employee shall be restored to his former position without loss of seniority rights with payment of salary differentials.
3. In case the penalty imposed is transfer, he shall immediately be restored to his former post unless he decides otherwise. In case there is demotion in rank, salary or status, he shall be restored to his former rank, salary or status.
4. In case the penalty imposed is suspension, he shall immediately be reinstated to his former post without loss of seniority rights with payment of back salaries.
5. In case the penalty imposed is dismissal, he shall immediately be reinstated without loss of seniority rights with payment of back salaries.
6. The respondent who is exonerated by final judgment shall be entitled to the leave credits for the period he/she had been out of the service.

RULE XIII. SETTLEMENT IN ADMINISTRATIVE CASES

Section 1. Who may avail. In case of light offenses where the act is purely personal on the part of the private complainant and the person complained of and there is no apparent injury committed to the government, settlement of offenses may be considered. Provided that settlement can no longer be applied for the second offense of the same act committed by the person complained of.

Section 2. Guidelines. The following are the guidelines in the settlement of purely personal matters in administrative cases:

1. Compromise settlement shall be allowed only for administrative light offenses where the act is purely personal between the private complainant and the person complained of and there is no apparent injury to the government.
2. Upon filing of the complaint, the CGO shall determine whether the offense is purely personal or can be the subject of settlement;
   
   The following cases may be the subject of settlement and/or compromise:
   
   

   1. Borrowing money by superior officers from subordinates;
   2. Willful failure to pay just debts;
   3. Simple Misconduct resulting from misunderstanding/fight between respondent and complainant provided that the act is not committed within office premises;
   4. Discourtesy in the course of official duties; and
   5. Other analogous circumstances/cases.
      
      

   In these enumerated cases, compromise or settlement can no longer be applied for the second time the same act is committed. The grant of back salaries and other benefits may likewise be subject of settlement and/or compromise.
   
   
3. If the offense can be the subject of settlement, the Handling Officer/Mediator assigned shall order the respondent to comment and to indicate therein whether he/she is willing to submit the case for settlement;
4. If person complained of opted for settlement, the Handling Officer/Mediator assigned shall issue an order requiring the appearance of parties;
5. If settlement succeeds, a compromise agreement shall be executed between the parties and attested by the Handling Officer/Mediator;
6. The compromise agreement shall be binding on the parties and shall be considered a decision on the merits which cannot be impugned unless it is shown that there was duress on its execution on any of the parties;
7. A decision shall be issued by the Disciplining Authority based on the Compromise Agreement;
8. If during the settlement process, the parties failed to settle their differences, the Handling Officer/Mediator shall issue an order terminating the process and continue with the investigation of the case; and
9. In case of non-compliance with the compromise agreement, the case may likewise be reopened for investigation until the final determination of the case.

Notwithstanding above, settlement in administrative cases shall be subject to implementing guidelines on Alternative Dispute Resolution to be issued by the Bank in accordance with Republic Act No. 9285. (n)

RULE XIV. MISCELLANEOUS PROVISIONS

Section 1. Computation of Period. In computing any period of time prescribed by these Guidelines, the first day shall be excluded and the last day included unless it be a Saturday, a Sunday or a legal holiday or a special nonworking day, in which case the period shall run until the end of the next working day which is neither a Saturday, a Sunday nor a legal holiday.

Copies of decisions and other communications shall be served on the counsel of record if one is represented by a counsel, if he/she has none, the same shall be served to the party concerned. The period to perfect a motion for reconsideration or an appeal shall be reckoned from the date of receipt of counsel or party, as the case may be

Section 2. Suppletory Application. For purposes of these Implementing Guidelines, the Revised Rules on Administrative Cases in the Civil Service (CSC Resolution No. 1101502) and other applicable rules shall have suppletory application. (n)

Section 3. Superseded Rules. This Circular supersedes Circular No. 12^[5] dated 8 October 2008 and all other related issuances which are inconsistent herewith. (a)

Section 4. Separability Clause. If any part of this Circular is declared invalid or unconstitutional, the other parts shall not be affected. (n)

Section 5. Effectivity. These Implementing Guidelines shall take effect upon approval by the Bank’s Board of Directors.

(SGD) GIL A. BUENAVENTURA
President & Chief Executive Officer

^[2] A.M. No. 12-8-8-SC, effective 1 January 2013.

^[3] See CSC MC No. 15, s. 2010

^[4] See CSC MC No. 16, s. 2010 (Policy on Undertime) 

Note: (a) amended (n) new