The Supreme Court has definitively ruled that positions within the Career Executive Service (CES) are exclusively those filled by presidential appointment. This means that positions like Assistant Department Manager II in government-owned or controlled corporations (GOCCs), which are appointed by a General Manager or a board, do not require Career Executive Service (CSE) eligibility. This decision clarifies the scope of CES, ensuring that eligibility requirements align with the appointing authority, and prevents undue restrictions on appointments within GOCCs.

Whose Appointing Authority Is It Anyway?: Delimiting Career Executive Service Coverage

These consolidated cases, G.R. Nos. 185766 and 185767, stemmed from the Civil Service Commission’s (CSC) disapproval of temporary appointments within the Philippine Charity Sweepstakes Office (PCSO). Josefina A. Sarsonas was appointed as Assistant Department Manager II of the Internal Audit Department (IAD), and Lemuel G. Ortega as Assistant Department Manager II of the Planning and Production Department. The CSC disapproved these appointments due to their failure to meet the Career Executive Service (CES) eligibility requirements, arguing that these positions were third-level positions under the civil service. The Court of Appeals (CA) reversed the CSC’s decisions, leading to the CSC’s petitions for review before the Supreme Court. At the heart of the matter was whether the position of Assistant Department Manager II fell under the CES, requiring presidential appointment and therefore, CES eligibility.

The Supreme Court anchored its decision on the principle that the Career Executive Service (CES) covers presidential appointees exclusively. This interpretation is rooted in the Administrative Code of 1987, which delineates the structure of the career service. The code classifies positions into three major levels. The first level encompasses clerical, trades, crafts, and custodial service positions. The second level includes professional, technical, and scientific positions requiring at least four years of college work, up to the Division Chief level. And third level, which is the crux of this case, encompasses positions in the Career Executive Service.

Section 7 of the Administrative Code explicitly defines the Career Executive Service (CES). This section is crucial to understanding the Court’s reasoning. It states that the Career Service includes “Positions in the Career Executive Service; namely, Undersecretary, Assistant Secretary, Bureau Director, Assistant Bureau Director, Regional Director, Assistant Regional Director, Chief of Department Service and other officers of equal rank as may be identified by the Career Executive Service Board, all of whom are appointed by the President.” This clear stipulation that all officers in the CES are appointed by the President is the cornerstone of the Court’s decision.

The Supreme Court emphasized that the power of appointment is a significant factor in determining whether a position falls within the Career Executive Service (CES). In this case, the Assistant Department Manager II is appointed not by the President of the Philippines, but by the PCSO General Manager. This appointment is subject to the approval or confirmation of the PCSO Board of Directors, as stipulated in its Charter. Because the appointments of Sarsonas and Ortega were not presidential, the Supreme Court determined that their positions did not require CES eligibility.

The Supreme Court supported its ruling by citing prior decisions, including Office of the Ombudsman v. Civil Service Commission and Home Insurance Guarantee Corporation v. Civil Service Commission. These cases consistently affirmed that the CES exclusively covers presidential appointees. This precedent reinforces the principle that eligibility requirements must align with the appointing authority. These cases confirm that positions not requiring presidential appointment do not fall under the CES, regardless of their managerial or executive nature.

The Court referenced CSC Resolution No. 100623 and CSC Memorandum Circular No. 7, S. 2010, which provide guidelines on the scope of the third level in the civil service. These issuances clarify that the Career Executive Service (CES) covers positions such as Undersecretary, Assistant Secretary, Bureau Director, and other officers of equivalent rank, all appointed by the President. Executive and managerial positions in the career service, other than those specifically listed, fall under the second level. These guidelines reinforced the court’s interpretation of Section 7(3) of the Administrative Code, thereby solidifying its conclusion.

The High Court distinguished the facts of the present case from those in Caringal v. Philippine Charity Sweepstakes Office (PCSO) and Erasmo v. Home Insurance Guaranty Corporation, which the CSC cited in its petition. The Supreme Court clarified that those cases primarily addressed the security of tenure of appointees to CES positions who lacked the requisite CES eligibility. In those cases, the Court did not hold that presidential appointment was unnecessary for a position to be included in the CES. Rather, it affirmed that presidential appointment finalizes the CES rank, bestowing security of tenure within the CES.

The Court concluded that for a position to be covered by the CES, it must meet two criteria. First, the position must either be explicitly listed under Book V, Title I, Subsection A, Chapter 2, Section 7(3) of the Administrative Code of 1987 or be identified by the Career Executive Service Board as being of equal rank to those enumerated. Second, the holder of the position must be a presidential appointee. In the cases of Sarsonas and Ortega, neither condition was met. Consequently, the Supreme Court upheld the Court of Appeals’ decision, affirming that the positions of Assistant Department Manager II in the PCSO are not covered by the third-level or CES and do not require CSE eligibility.

FAQs

What was the key issue in this case?	The primary issue was whether the position of Assistant Department Manager II in the Philippine Charity Sweepstakes Office (PCSO) falls under the Career Executive Service (CES), requiring Career Service Executive (CSE) eligibility. The CSC argued it did, while the appointees and the PCSO contended it did not.
What is the Career Executive Service (CES)?	The Career Executive Service (CES) is the third level of positions in the Philippine civil service, typically comprising high-level managerial and executive roles in government agencies. Positions within the CES require specific eligibility and are generally considered to be presidential appointments, as defined by the Administrative Code of 1987.
What is CSE eligibility?	CSE eligibility is the qualification required for appointment to positions in the Career Executive Service (CES). It involves meeting certain criteria set by the Career Executive Service Board (CESB), which may include examinations, training programs, and other requirements.
Who appoints the Assistant Department Manager II in PCSO?	The Assistant Department Manager II in the PCSO is appointed by the PCSO General Manager, subject to the approval or confirmation of the PCSO Board of Directors. This is a critical fact, as it distinguishes the position from those requiring presidential appointment.
What does the Administrative Code say about CES positions?	The Administrative Code of 1987, specifically Book V, Title I, Subsection A, Chapter 2, Section 7(3), lists the positions included in the CES. It specifies that all officers in the CES are appointed by the President of the Philippines.
Why did the CSC disapprove the appointments?	The CSC disapproved the temporary appointments of Sarsonas and Ortega because they lacked the required Career Service Executive (CSE) eligibility. The CSC believed that the position of Assistant Department Manager II was a third-level position requiring this eligibility.
What was the Court of Appeals’ ruling?	The Court of Appeals (CA) reversed the CSC’s decisions, ruling that the position of Assistant Department Manager II does not require Career Service Executive (CSE) eligibility because it is not a position filled by presidential appointment. The CA emphasized that the CSC cannot substitute its own standards for those of the department or agency concerned.
How did the Supreme Court justify its ruling?	The Supreme Court justified its ruling by emphasizing that the Career Executive Service (CES) exclusively covers positions filled by presidential appointment. Because the Assistant Department Manager II is not appointed by the President, it does not fall under the CES.
What is the practical effect of this ruling?	The practical effect is that individuals appointed to positions like Assistant Department Manager II in GOCCs do not need to possess Career Service Executive (CSE) eligibility, thus broadening the pool of potential candidates. This also prevents the CSC from unduly restricting appointments within these organizations.

This Supreme Court decision provides clarity on the scope of the Career Executive Service, reinforcing the principle that only positions filled by presidential appointment require CES eligibility. This ruling ensures that government-owned and controlled corporations (GOCCs) can appoint qualified individuals to managerial positions without unnecessary restrictions, promoting efficiency and effective governance.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: CIVIL SERVICE COMMISSION vs. COURT OF APPEALS AND PHILIPPINE CHARITY SWEEPSTAKES OFFICE, G.R. No. 185766, November 23, 2010