508 Phil. 599
PANGANIBAN, J.:
"WHEREFORE, premises considered, the petition is partially granted and the assailed Resolution of the Civil Service Commission dated 11 July 1995 is hereby MODIFIED in accordance with the foregoing disquisition."[4]On the other hand, the July 11, 1995 Resolution[5] of the Civil Service Commission (CSC) mentioned above disposed as follows:
"WHEREFORE, the Commission hereby rules that it is illegal for any LWUA officer or employee who sits as member of the board of directors of a water district to receive and collect any additional, double, or indirect compensation from said water district, except per diems pursuant to Section 13 of PD 198, as amended."[6]
"The LWUA Employees Association for Progress (LEAP), through its Chairman, Leonardo C. Cruz, filed with the CSC a complaint against Camilo P. Cabili and Antonio R. De Vera, Chairman of the Board of Trustees and Administrator, respectively, of the Local Water Utilities Administration (LWUA) for alleged violation of RA 6713, otherwise known as the 'Code of Conduct and Ethical Standards for Public Officials and Employees'.
"The complaint stemmed from the alleged failure or refusal of Cabili and De Vera to give due course or respond to the Memorandum dated 26 August 1994 of LEAP requesting investigation on the allegation of columnist Lito A. Catapusan in the 'Beatwatch' column of the 23 August 1994 issue of the Manila Bulletin that Water Districts are 'milking cows' of certain LWUA officials. LEAP likewise questioned the propriety and legality of the act of LWUA Deputy Administrator Rodolfo de Jesus in collecting/receiving per diems, RATA, discretionary fund, and other extraordinary and miscellaneous expenses from the Olongapo City Water District where he was designated as member of the board of directors, aside from what he was already receiving from his present position.
"In his comment to LEAP's complaint, LWUA Administrator De Vera claimed, inter alia, that under the LWUA Charter (PD 198 as amended), LWUA is vested with corporate authority to take over the policy-making and management functions of defaulting water districts in order to protect its financial investment. Section 8 of the Decree authorizes LWUA to appoint any of its personnel to sit in the board of directors of a water district that has availed financial assistance from LWUA and any such personnel so appointed is entitled to enjoy the rights and privileges pertaining to a regular director. Administrator De Vera thus contended, in essence, that sans any specific guidelines on remuneration, any LWUA personnel who sits as a member of the board of directors of a water district is entitled to receive the same compensation and benefits which other members enjoy, in addition to what he regularly and normally receives as a personnel of LWUA.
"In Resolution No. 95-4073 dated 11 July 1995, the CSC dismissed the charge for violation of RA 6713 against LWUA Chairman Cabili and Administrator De Vera. The CSC however ruled that 'it is illegal for any LWUA officer or employee who sits as a member of the board of directors of a water district to receive and collect any additional, double or indirect compensation from said water district except per diems pursuant to Section 13 of PD 198, as amended'. The CSC based its ruling on Section 8, Article IX (B) of the 1987 Constitution.
"LWUA Chairman Cabili and Administrator De Vera moved for reconsideration of Resolution No. 95-4073, contending that the CSC erroneously and short-sightedly interpreted the provision of the Constitution relative to additional, double or indirect compensation. Cabili and De Vera likewise questioned the authority of the CSC to act upon the complaint filed by LEAP on the ground that the complaint was not under oath, hence, violative of CSC Resolution No. 94-0521 prescribing the Uniform Rules of Procedure in the Conduct of Administrative Investigation.
"In Resolution No. 96-2079 dated 21 March 1996, the CSC denied the motion for reconsideration and affirmed Resolution No. 95-4073.
"Unsatisfied, LWUA Chairman Cabili and Administrator De Vera elevated the case to [the CA] x x x.x x x x x x x x x
"During the pendency of the x x x petition [with the CA], two (2) separate motions for intervention were filed by Abundio L. Okit on the one hand, and Rodolfo S. de Jesus, Edelwina DG. Parungao and Rebecca A. Barbo, on the other. Movants allege personal and legal interest in the legal issues and subject matter of the instant petition for being members of the board of directors, either as interim director or LWUA-appointed 6th member of water districts.
"There being no opposition from [the parties], the [CA] granted the motions for intervention and allowed intervenors-movants to file their respective petitions-in-intervention.
"Intervenors, in their separate petitions-in-intervention, essentially support the legality of the benefits granted to them by law and/or pertinent LWUA Resolutions in their capacity as members of the board of directors of water districts. These benefits include Representation and Transportation Allowance (RATA), Travel Allowance, Extra-ordinary Miscellaneous Expenses (EME), Christmas Bonus, Cash Gift, Uniform Allowance, Rice Allowance, Medical/Dental Benefit and Productivity Incentive Pay."[7]
I.
"Whether or not Public Respondent Civil Service Commission has plenary jurisdiction to motu proprio construe P.D. 198, as amended.II.
"Whether or not Sec. 13 of P.D. 198, as amended, prohibits LWUA-designated representatives to the Boards of WDs to receive certain allowances and benefits on top of regular per diems.III.
"Whether or not the designated representatives of LWUA to the Boards of WDs are liable to refund certain allowances and bonuses which are found in violation of Sec. 13 of PD 198, as amended."[9]
"The LWUA does not appear to have any adjudicatory functions. It is, as already pointed out, 'primarily a specialized lending institution for the promotion, development and financing of local water utilities,' with power to prescribe minimum standards and regulations regarding maintenance, operation, personnel training, accounting and fiscal practices for local water utilities, to furnish technical assistance and personnel training programs therefor; monitor and evaluate local water standards; and effect systems integration, joint investment and operations, district annexation and deannexation whenever economically warranted. The LWUA has quasi-judicial power only as regards rates or charges fixed by water districts, which it may review to establish compliance with the provisions of PD 198 x x x."[11]Clearly, that case is not in point and will not convince this Court to sustain the claim of petitioners. They allege that the CSC usurped the functions of the LWUA in exercising, motu proprio, plenary jurisdiction to construe Section 13 of PD 198. For the Court to sustain them would be to allow the board of an administrative agency, by merely issuing a resolution, to derogate the broad and extensive powers granted by the Constitution to a constitutional commission like the CSC.[12]
"The COA, the CSC and the Commission on Elections are equally pre-eminent in their respective spheres. Neither one may claim dominance over the others. In case of conflicting rulings, it is the Judiciary which interprets the meaning of the law and ascertains which view shall prevail."[17]The present case involves the acts of LWUA officials who are concurrently designated as members of the boards of directors of water districts. This Court has consistently ruled that water districts are government-owned and -controlled corporations with original charters, since they have been created pursuant to PD 198. Hence, they are under the jurisdiction of the CSC.[18]
"SEC. 2. (1) The civil service embraces all branches, subdivisions, instrumentalities, and agencies of the Government, including government-owned or controlled corporations with original charters.Section 3 is deemed to include the power to "promulgate and enforce policies on personnel actions."[19]
"SEC. 3. The Civil Service Commission, as the central personnel agency of the Government, shall establish a career service and adopt measures to promote morale, efficiency, integrity, responsiveness, progressiveness, and courtesy in the civil service. It shall strengthen the merit and rewards system, integrate all human resources development programs for all levels and ranks, and institutionalize a management climate conducive to public accountability. It shall submit to the President and the Congress an annual report on its personnel programs."
"Sec. 13. Compensation. - Each director shall receive a per diem, to be determined by the board, for each meeting of the board actually attended by him, but no director shall receive per diems in any given month in excess of the equivalent of the total per diems of four meetings in any given month. No director shall receive other compensation for services to the district.Contrary to the interpretation of the CSC, petitioners argue that the term "compensation" as used in Section 13 of PD 198 does not include RATA, EME, bonuses and other benefits.
"Any per diem in excess of P50 shall be subject to approval of the Administration." (Emphasis supplied)
"Under §13 of this Decree, per diem is precisely intended to be the compensation of members of [the] board of directors of water districts. Indeed, words and phrases in a statute must be given their natural, ordinary, and commonly-accepted meaning, due regard being given to the context in which the words and phrases are used. By specifying the compensation which a director is entitled to receive and by limiting the amount he/she is allowed to receive in a month, and, in the same paragraph, providing 'No director shall receive other compensation' than the amount provided for per diems, the law quite clearly indicates that directors of water districts are authorized to receive only the per diem authorized by law and no other compensation or allowance in whatever form."[22]
"x x x. Petitioners here received the additional allowances and bonuses in good faith under the honest belief that LWUA Board Resolution No. 313 authorized such payment. At the time petitioners received the additional allowances and bonuses, the Court had not yet decided Baybay Water District. Petitioners had no knowledge that such payment was without legal basis. Thus, being in good faith, petitioners need not refund the allowances and bonuses they received but disallowed by the COA."[25]Considering that the instant controversy had also arisen prior to the promulgation of Baybay Water District v. Commission on Audit,[26] the present petitioners need not refund the allowances and bonuses they have already received in good faith.
[15] De Jesus v. Commission on Audit, supra, pp. 671-672, per Carpio, J.x x x x x x x x x
"SEC. 2. (1) The Commission on Audit shall have the power, authority, and duty to examine, audit, and settle all accounts pertaining to the revenue and receipts of, and expenditures or uses of funds and property, owned or held in trust by, or pertaining to, the Government, or any of its subdivisions, agencies, or instrumentalities, including government-owned and controlled corporations with original charters, x x x."