In administrative proceedings, the burden of proof lies with the complainant to present substantial evidence supporting their allegations. This means providing relevant evidence that a reasonable person would accept as adequate to support a conclusion. The Supreme Court, in this case, reiterated this principle, emphasizing that mere allegations or suspicions are insufficient to hold a public official administratively liable for dishonesty and misconduct. This ruling protects public officials from arbitrary accusations and ensures that administrative decisions are based on concrete evidence.

Rating Readjustments: When Does Reviewing a Subordinate’s Decision Amount to Misconduct?

The case revolves around the administrative charges of grave misconduct and dishonesty filed against Loving F. Fetalvero, Jr., a Superintendent at the Philippine Ports Authority (PPA). The charges stemmed from the reevaluation and subsequent readjustment of the performance rating of Lockheed Detective and Watchman Agency, Inc. (Lockheed), a security services contractor for the PPA. Lockheed’s initial performance rating of 78.30, or “fair,” disqualified it from bidding for a new security services contract. However, after Lockheed submitted a comment and upon review by several PPA officers, the rating was readjusted to 83.97, or “satisfactory,” making Lockheed eligible to bid.

Maximo Aguirre, the Port Police Department Division Manager, filed a complaint-affidavit alleging that the readjustment of Lockheed’s rating was irregular and violated PPA procedures. Aguirre claimed that the reevaluation was conducted without the participation of the original Port Police officers who had given Lockheed the initial rating. He further asserted that the officers involved in the reevaluation lacked personal knowledge of Lockheed’s performance, rendering the readjustment baseless and intended to favor Lockheed. The Office of the Ombudsman initially dismissed the complaint but later reversed its decision, finding Fetalvero and other officers guilty of grave misconduct and dishonesty. Fetalvero appealed to the Court of Appeals, which granted his petition and dismissed the administrative case against him. The Ombudsman then filed a petition for review with the Supreme Court.

The core legal question before the Supreme Court was whether there was substantial evidence to hold Fetalvero administratively liable for dishonesty and misconduct. The Ombudsman argued that Fetalvero’s actions in adjusting Lockheed’s ratings and giving it undue preference warranted a finding of administrative liability. Fetalvero, on the other hand, maintained that his role in the reevaluation process was merely ministerial, involving the collation and computation of ratings transmitted to him by other officers. The Court of Appeals sided with Fetalvero, finding that his actions did not constitute dishonesty or grave misconduct and that the related criminal complaint against him had been withdrawn by the Ombudsman.

The Supreme Court affirmed the Court of Appeals’ decision, emphasizing the importance of substantial evidence in administrative proceedings. The Court held that the Ombudsman failed to present sufficient evidence to prove that Fetalvero had deliberately committed falsehood or transgressed established rules to give Lockheed undue preference. The Court noted that Fetalvero’s participation was limited to collating the ratings and recommendations submitted by other officers and summarizing them into a report, an act within the scope of his duties as Superintendent. The Court found no evidence that Fetalvero had actively recommended the reconsideration or readjustment of Lockheed’s original rating.

Furthermore, the Court addressed the Ombudsman’s argument that the readjustment of Lockheed’s rating was without basis. The Court pointed out that Cecilio, as the Assistant General Manager for Operations, had the authority to supervise and control the Port Police Department, including the power to supplant its rating with a new one, provided that the new rating was supported by evidence and did not constitute a grave abuse of authority. In this case, the Court found that there was sufficient basis for the readjustment of Lockheed’s rating, as it was based on documents and reports culled by the officials who conducted the review. Even the Ombudsman admitted that the readjustment was not entirely devoid of evidentiary basis. The court cited Mondano v. Silvosa, 97 Phil. 143 (1955) to elaborate on the difference between supervision and control.

In administrative law[,] supervision means overseeing or the power or authority of an officer to see that subordinate officers perform their duties. If the latter fail or neglect to fulfill them[,] the former may take such action or step as prescribed by law to make them perform their duties. Control, on the other hand, means the power of an officer to alter or modify or nullify or set aside what a subordinate officer had done in the performance of his duties and to substitute the judgment of the former for that of the latter.

The Court emphasized that dishonesty involves the disposition to lie, cheat, deceive, or defraud, while misconduct involves a transgression of established rules or unlawful behavior by a public officer. The Ombudsman, as the complainant, had the burden of proving that Fetalvero had deliberately committed falsehood or transgressed established rules to give Lockheed undue preference. However, the Ombudsman failed to discharge this burden, as the evidence only showed that Fetalvero had collated the ratings and recommendations submitted by other officers and summarized them into a report, an act that was within the confines of his function. Therefore, the Court concluded that there was no substantial evidence to hold Fetalvero administratively liable for dishonesty and misconduct.

This case underscores the importance of due process and the requirement of substantial evidence in administrative proceedings. It serves as a reminder that public officials should not be subjected to disciplinary action based on mere allegations or suspicions. Instead, complainants must present concrete evidence to support their claims of dishonesty or misconduct. The ruling also clarifies the scope of a superior officer’s authority to supervise and control subordinates, including the power to review and revise their decisions, provided that such actions are based on evidence and do not constitute a grave abuse of discretion.

FAQs

What was the key issue in this case?	The key issue was whether there was substantial evidence to hold Loving F. Fetalvero, Jr. administratively liable for dishonesty and misconduct in relation to the reevaluation of a security agency’s performance rating.
What is substantial evidence in administrative cases?	Substantial evidence is relevant evidence that a reasonable mind might accept as adequate to support a conclusion, which is the standard required for administrative liability to attach.
What was Fetalvero’s role in the reevaluation process?	Fetalvero’s role was primarily ministerial, involving the collation and computation of ratings transmitted to him by other officers, and the summarization of these ratings into a report.
Did Fetalvero recommend the reevaluation of Lockheed’s rating?	The court found no evidence that Fetalvero had actively recommended the reconsideration or readjustment of Lockheed’s original rating; his actions were limited to his assigned duties.
What is the difference between dishonesty and misconduct?	Dishonesty involves the disposition to lie, cheat, deceive, or defraud, while misconduct involves a transgression of established rules or unlawful behavior by a public officer.
Who has the burden of proof in administrative proceedings?	In administrative proceedings, the complainant has the burden of proving their allegations with substantial evidence.
What was the outcome of the related criminal complaint against Fetalvero?	The related criminal complaint against Fetalvero was withdrawn by the Office of the Ombudsman from the Sandiganbayan.
What was the significance of Cecilio’s role as Assistant General Manager?	As Assistant General Manager, Cecilio had the authority to supervise and control the Port Police Department, including the power to review and revise their decisions.
Can a superior officer revise a subordinate’s decision?	Yes, a superior officer can revise a subordinate’s decision, provided that such actions are based on evidence and do not constitute a grave abuse of discretion.

This case serves as an important precedent for administrative proceedings, reinforcing the necessity of due process and the requirement of substantial evidence to establish administrative liability. It protects public officials from unfounded accusations and ensures that administrative decisions are based on credible evidence and sound reasoning.

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: OFFICE OF THE OMBUDSMAN vs. LOVING F. FETALVERO, JR., G.R. No. 211450, July 23, 2018