TRADE AND INVESTMENT DEVELOPMENT CORP. (TIDCORP) V.

CIVIL SERVICE COMMISSION (CSC)

March 5, 2013 | Brion, J.
Constitutional Commissions
AKGL

DOCTRINE: The rules that CSC formulates must not override, but must be in harmony with the law its seeks to apply and
implement.
CASE SUMMARY: TIDCORP appointed de Guzman as Financial Management Specialist IV, but CSC did not approve the
appointment, because the appointment was contrary to its memorandum circulars. TIDCORP countered that RA 8494 exempted them
from laws relating to compensation and position. SC ruled in favor of TIDCORP and held that CSC rules should be in accordance with
the laws enacted by Congress.

FACTS:
In August 2000, Arsenio de Guzman was appointed on a permanent status as Financial Management Specialist IV of
TIDCORP. The appointment was submitted to the CSC. CSC disallowed said appointment, as the position of Financial
Management Specialist 4 was not included in the DBMs Index of Occupational Service, contrary to CSC Memorandum
Circular (CSC MC) No. 40, series of 1998, as amended by CSC MC No. 15, s. 1999. The CSC MC provides that the position
title indicated in the appointment should conform with the Position Allocation List and found in the Index of Occupational
Service,
Citing its exemption from CSC rules pursuant Sec. 7, RA 8494. TIDCORP appealed to the invalidation decision to CSC-
NCR. TIDCORP appealed CSC-NCRs ruling to the CSC-Central Office (CO), which affirmed the decision. TIDCORP also
appealed to the CA, which upheld the ruling of CSC-CO.
CSCs arguments:
1. TIDCORP must conform to the CSC MC.
2. TIDCORP has the duty to endeavor to make the system to conform as closely as possible to the principles and
modes provided in RA 6758 (Compensation and Position Classification Act of 1989), as provided in Sec. 7, RA
8494 (TIDCORPs charter).
3. 1987 Administrative Code empowers CSC to formulate policies and regulations for the administration, maintenance
and implementation of position, maintenance and implementation of position, classification and compensation.
TIDCORPs arguments:
1. Section 7, RA 8494 exempts TIDCORP from laws, rules and regulations on compensation, position classification
and qualification; thus, it is not duty bound to comply with civil service rules on compensation and position
classification.
2. RA 8494, a special law, should prevail over RA 6758, a general law.
3. CSC previously allowed the appointment of Mayor to the same position.

ISSUE: W/N De Guzmans appointment as Financial Management Specialist is valid.

RULING:
The Constitution, as evidenced by the Constitutional Commission deliberations, grants CSC the rule-making power, but such
grant is subsumed under its designation as the governments central personnel agency in CONST art. 9-B, sec. 3. The CSCs
rule-making power is an aspect of its independence as a constitutional commission.
CSCs rule making power was spelled out in concrete term in Sec. 12, Book 5, Title 1-A, which empowered CSC to
implement the civil service law and other pertinent laws, and to promulgate policies, standards, and guidelines for the civil
service.
However, the laws that CSC interprets and enforces fall within the prerogative of Congress. The rules that CSC formulates
must not override, but must be in harmony with the law its seeks to apply and implement. In Grego v. COMELEC, SC held
that administrative regulations cannot extend the law nor amend a legislative enactment. Administrative regulations must be
in harmony with the provisions of the law, and in a conflict between the basic law and an implementing rule or regulation, the
former must prevail.
The phrase as closely as possible allows TIDCORP to deviate from RA 6758, but it should still try to hew closely with its
principles and modes.
Hence, in the instant case, the CSC shall still enforce the position classifications at TIDCORP, but must do this under the
terms that TIDCORP has been established. The rules that CSC formulates should consider TIDCORPs charter in addition to
other civil service laws. Consequently, CSC should have given due course to De Guzmans appointment.

DISPOSITION: WHEREFORE, all premises considered, we hereby GRANT the petition, and REVERSE and SET ASIDE the
decision dated September 28, 2007 and the resolution dated March 17, 2008 of the Court of Appeals.
NOTES:
Section 7, RA 8494
xxx TIDCORP shall be exempt from existing laws, rules and regulations on compensation, position classification and
qualification standards. It shall, however, endeavor to make the system to conform as closely as possible to the principles and
modes provided in Republic Act No. 6758.

CONST art. 9-B, 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.xxx