LOCGOV - #13

CSC v. Agnes Ouida-Yu (2012)

J. Perlas-Bernabe

Doctrine: The policy of the State with respect to local governments involves Devolution which is the act by which
the national government confers power and authority upon the various local government units to perform specific
functions and responsibilities.

Facts:
1. Thru the Local Government Code of 1991, the national government implemented a devolution program
which affected the Department of Health along with other government agencies.
2. Prior to the devolution, Dr. Fortunata Castillo was the:
a. Provincial Health Officer II (PHO II) of the DOH Regional Office No. IX in Zamboanga City AND
b. Head of both the Basilan Provincial Health Hospital and Public Health Services
3. Respondent Dr. Agnes Ouida P. Yu was Provincial Health Officer I (PHO I)
4. Upon the implementation of the devolution program, then Basilan Governor Salapuddin refused to accept
Dr. Castillo as the incumbent of the PHO II position that was to be devolved to the LGU of Basilan
a. DOH retained Dr. Castillo at the Regional Office No. IX in Zamboanga City where she would serve the
remaining four years of her public service. She retired in 1996.
5. In 1994, Governor Salapuddin appointed Dr. Yu to the PHO II position
6. In 1998, Republic Act No. 8543 (An Act Converting the Basilan Provincial Hospital in the Municipality of
Isabela, Province of Basilan, into a Tertiary Hospital Under the Full Administrative and Technical
Supervision of the Department of Health, Increasing the Capacity to One Hundred Beds and Appropriating
Funds Therefor) was passed  hospital positions previously devolved to the LGU of Basilan were re-
nationalized and reverted to the DOH
a. The Basilan Provincial Health Hospital was later renamed the Basilan General Hospital, and the
position of PHO II was then re-classified to Chief of Hospital II.
7. While Dr. Yu was among the personnel reverted to the DOH with the re-nationalization, she was made to
retain her original item of PHO II instead of being given the re-classified position of Chief of Hospital II.
8. In 2003, then DOH Secretary Manuel M. Dayrit appointed Dr. Domingo Remus A. Dayrit to the position of
Chief of Hospital II
9. Respondent Dr. Yu filed a letter of protest before the CSC claiming that she has a vested right to the
position of Chief of Hospital II. Respondent’s arguments:
a. The position of Chief of Hospital II to which Dr. Dayrit has been appointed is a mere conversion from
the item of PHO II previously occupied by her
b. When the hospital was re-nationalized, the position of PHO II was refused re-nationalized by DOH
alleging that it was an LGU-created position, that is, Basilan created it. Thus, instead of the
undersigned being automatically re-appointed and later to be renamed Chief of Hospital II, pursuant
to the Re-Nationalization Law, she was instead given an appointment still as PHO II but under a co-
terminous status at the Center for Health and Development, DOH which position the undersigned
refused to accept
10. CSC’s rulings/ Petitioner’s position:
a. CSC granted Dr. Yu's protest and revoked the appointment of Dr. Dayrit as Chief of Hospital II and
Secretary Dayrit was directed to appoint Dr. Yu to said position
b. Upon MR, the CSC reversed and declared that the position of PHO II was never devolved to the
Provincial Government of Basilan but was retained by the DOH, hence, the PHO II position held by Dr.
Yu was a newly-created position, therefore, she did not have a vested right to the Chief of Hospital II
c. Dr. Yu then filed a MR which was denied by the CSC
11. Dr. Yu elevated her case to the CA on petition for review raising the sole issue of whether the item of PHO
II she previously occupied was a devolved position or a locally created one
a. CA ruled in favor of Dr. Yu
b. The CA cited several letters by DOH officials stating that the PHO II position was devolved to the local
government
Issue:
W/n the court of appeals erred in holding that the pho ii position previously occupied by respondent Yu is a
devolved position  NO

Ratio:
RELEVANT: Re Devolution:
1. Devolution is the act by which the national government confers power and authority upon the various
local government units to perform specific functions and responsibilities
a. Section 17(i) of the LGCode prescribes the manner of devolution, as follows:
(i) The devolution contemplated in this Code shall include the transfer to local government units
of the records, equipment, and other assets and personnel of national agencies and offices
corresponding to the devolved powers, functions and responsibilities.
Personnel of said national agencies or offices shall be absorbed by the local government units to
which they belong or in whose areas they are assigned to the extent that it is administratively
viable as determined by the said oversight committee: Provided, further, That regional directors
who are career executive service officers and other officers of similar rank in the said regional
offices who cannot be absorbed by the local government unit shall be retained by the national
government, without any diminution of rank, salary or tenure.
b. To ensure the proper implementation of the devolution process, then President Aquino issued Rules
and Regulations Implementing the Transfer of Personnel and Assets, Liabilities and Records of
National Government Agencies Whose Functions Are To Be Devolved To The Local Government Units
And For Other Related Purposes which states that:
“2. The absorption of the NGA personnel by the LGU shall be mandatory, in which case, the LGUs
shall create the equivalent positions of the affected personnel except when it is not
administratively viable. (emphasis by digester)
3. Absorption is not administratively viable when there is a duplication of functions unless the LGU
opts to absorb the personnel concerned.
4. The national personnel who are not absorbed by the LGUs under no. 3 above, shall be retained by
the NGA concerned, subject to civil service law, rules and regulations.
Xxx
12. Except as herein otherwise provided, devolved permanent personnel shall be automatically
reappointed by the local chief executive concerned immediately upon their transfer which shall not
go beyond June 30, 1992. Xxx”

2. IN THIS CASE, based on the cited rules, it was mandatory for Governor Salapuddin to absorb the position
of PHO II, as well as its incumbent, Dr. Castillo. The only instance that the LGU concerned may choose not
to absorb the NGA personnel is when absorption is NOT administratively viable, meaning, it would result
to duplication of functions, in which case, the NGA personnel shall be retained by the national
government
a. The absorption is automatic or‖involuntary either wholly or to a major extent so that any activity of
the will is largely negligible  it connotes something mechanical, spontaneous and perfunctory
3. Governor Salapuddin himself certified that said position was included in the 1992 OSCAS (Organization,
Staffing and Compensation Action) received from the DBM with its corresponding budget appropriation
a. He declared that during the formal turn over program in 1993 attended by DOH officials, the item
position of PHO II was among the positions turned over to the Provincial Government
b. Thus, the argument of CSC that only 53 plantilla positions, not 54, were devolved to the local
government of Basilan does not hold water
4. However, Governor Salapuddin refused to reappoint Dr. Castillo to her devolved position in the LGU
which was whimsical on the Governor’s part because it lacks legal bases. Nonetheless, this refusal did not
prevent the devolution of Dr.Castillo which, together with that of the PHO II position, took effect by
operation of law
 5. To solve his dilemma, Governor Salapuddin requested that Dr. Castillo be detailed instead at the DOH,
which was confirmed by then Secretary Flavier
a. The drawing of Dr. Castillo's salary from the LGU of Basilan which Governor Salapuddin claimed to
have allowed simply ―to accommodate her (Dr. Castillo) was, in fact, a necessary consequence of her
devolution to the LGU and subsequent detail to the DOH (parent agencies pay the salary of the
detailed employees)
b. A detail is defined and governed by EO29: A detail is the movement of an employee from one agency
to another without the issuance of an appointment and shall be allowed, only for a limited period in
the case of employees occupying professional, technical and scientific positions. If the employee
believes that there is no justification for the detail, he may appeal his case to the Commission.
Pending appeal, the decision to detail the employee shall be executory unless otherwise ordered by
the Commission
6. Had Dr. Castillo felt aggrieved by her detail she could have appealed to the CSC, but she had not seen fit
to question it may because she only has three more years until her retirement in 1996, and considering
that she obviously would not suffer any diminution in salary and rank
7. DOH officials categorized her as a devolution non-viable employee by the mere fact that she was not
accepted by the LGU of Basilan and not because of an actual non-viability
a. Hence, in 1994, when Governor Salapuddin formally manifested his intention to stop the drawing of
Dr. Castillo's salary from the LGU in anticipation of his appointment of Dr. Yu to the PHO II position,
Dr. Castillo ceased to be a detailed employee at the DOH Regional Office but was re-absorbed by the
DOH as a devolution non-viable employee and, consequently, paid salaries and benefits from the
Miscellaneous Personnel Benefits Fund that had been set aside under the Office of the Secretary of
Health precisely for such employees

(NOT RELEVANT TO TOPIC) Re Abandonment by Dr. Castillo: She did not abandon her position
1. Abandonment of an office is the voluntary relinquishment of an office by the holder with the intention of
terminating his possession and control thereof. Two essential elements of abandonment:
a. An intention to abandon and,
b. An overt or 'external' act by which the intention is carried into effect
2. Governor Salapuddin's refusal to accept Dr. Castillo negates voluntariness on the part of the latter to let
go of her position. The risk of incurring the ire of a powerful politician effectively tied Dr. Castillo's hands
3. With Dr. Castillo's re-absorption by the DOH, her devolved position (PHO II) with the LGU of Basilan was
left vacant
a. Dr. Yu was validly appointed to the position of PHO II and acquired a vested right to its re-classified
designation – Chief of Hospital II. She should have been automatically re-appointed by Secretary
Dayrit in accordance with the Guidelines

CONCURRING: Leonardo-De Castro

1. She agrees with the holding on the devolution but she opines that Dr. Castillo abandoned her position by
acquiescence. Abandonment of office may be by non-user or acquiescence: Non-user refers to a neglect
to use a right or privilege or to exercise an office while acquiescence is a silent appearance of consent by
failure to make any objection or by submission to an act of which one had knowledge. It exists where a
person knows or ought to know that he is entitled to enforce his right or to impeach a transaction, and
neglects to do so for such a length of time as would imply that he intended to waive or abandon his right
2. Dr. Castillo’s manifest inaction to assert a legal right from 1992 up to her retirement from government
service in 1996 constituted abandonment by acquiescence. The ponencia’s position (re retirement or fear
of reprisal from the Governor) is speculative.

Digested by: Cielo (A2015)