DECISION NO.

2016-128
July 12, 2016

Subject: Automatic review of National Government Sector Cluster B Decision No. 2012-
007 dated April 24, 2012, lifting Notice of Disallowance No. 10-031-101(10) dated
December 27, 2010 on the payment of Longevity Pay to some officials and staff of
Advanced Science and Technology Institute, Department of Science and
Technology, Diliman, Quezon City, in the amount of P633,397.75

DECISION

FACTS OF THE CASE

For automatic review1 is National Government Sector (NGS) Cluster B Decision No. 2012-007 dated April 24, 2012,
granting the appeal of Mr. Denis F. Villorente, Director, Advanced Science and Technology Institute (ASTI), Department of
Science and Technology (DOST), from Notice of Disallowance (ND) No. 10-031-101(10) dated December 27, 2010 on the
payment of Longevity Pay (LP) to some officials and staff of ASTI, DOST, in the amount of P633,397.75. The dispositive portion
of the decision reads:

WHEREFORE, premises considered, the herein appeal of Director Denis F. Villorente, Advanced Science and
Technology Institute (ASTI), on behalf of himself and of the concerned Agencys staff from Notice of
Disallowance (ND) No. 10-031-101(10) dated December 27, 2010 in the amount of P633, 397.75 on the
payment of longevity pay is hereby granted. This decision is not final and is subject to automatic review by the
Commission Proper.

Records show that ASTI officials and employees were granted LP for the period of July 1 to December 31, 2009 and
January 1 to June 30, 2010, amounting to P633,397.75.

On post-audit, the Audit Team Leader (ATL), ASTI, issued ND No. 10-031-101(10) dated December 27, 2010, disallowing
the grant of LP because the agency did not obtain the required approval of the Secretary of DOST as required under Section 9.2 2
of Republic Act (RA) No. 8439, and for being contrary to Section 2.b of the Civil Service Commission (CSC) Department of
Budget and Management (DBM) Joint Circular No. 1, series of 1990. The following persons were determined to be liable for the
transaction:

1. Villorente, Denis F. Director - for approving the payroll and

payment of LP; certifying that
charges to appropriations/ allotment
are necessary, lawful and under his
direct supervision; certifying that
supporting documents are valid,
proper and legal; and for receiving
payment of LP
2. Payees:

Bautista, Wilson V. Administrative (Adm.) Aid III

Banzon, Peter Antonio B. Supervising (Spvg.) Science
Research Specialist (SRS)
Bugagao, Gay Concepcion S. Accountant III
Also, Fernando G. Adm. Aide IV
Caser, Anita Science Aide
Castaneda, Narcisa Juvilyn C. Planning Officer III
Castor, Maricel N. Science Aide
Dy Jongco, Mary Grace C. Spvg. SRS
Echano, Carmencita M. Chief, Adm. Officer
Gabas, Jerremeo Raynier T. SRS II
Guba, Gerwin P. Senior (Sr.) SRS
Hapin, Danilo R. Adm. Officer V
Ismael, Francisco Jr. Science Aide
Juco, Emma R. Planning Officer I
Lara, Bayani Benjamin R. Sr. SRS
Leonido, Aurora F. Adm. Assistant III
Mangahas, Pedrito B. Spvg. SRS
Manio, Pinky R. Science Aide
Mesina, George Science Research Assistant
(SRA)
Oleriana, Anna Liza P. Science Aide
Pagador, Emily R. SRA
Pedro, Milites D. Adm. Assistant V
Quintos, Antoniette C. Adm. Officer V
Rubillos, Marylou N. SRA
Syjuco, Joanna G. SRA
 On appeal, the following arguments were invoked by Director Villorente:

1. The DOST-ASTI had already obtained the approval of the DOST Secretary for the payment of longevity
benefits to entitled employees through DOST Administrative Order (AO) No. 005 on the DOST Guidelines on
the Longevity Pay Privilege under RA No. 8439 entitled: Magna Carta for Scientists, Engineers, Researchers
and other S&T Personnel3 in Government.

2. CSC DBM Joint Circular No. 1, s. of 1990 is specific only to the grant of step increment benefit and does not
cover the payment of longevity benefit.

In the answer to the said appeal, the ATL, ASTI, made the following averments:

1. DOST AO No. 005 provides only a mechanism/ documentation for the entitlement of the longevity pay, and not
a blanket authority for the payment of the benefit as viewed by the DOST-ASTI.

2. The approval by DOST Secretary Mario G. Montejo, embodied in a letter dated September 3, 2010, is not valid,
because the same was made by him prior to his assumption of office.

3. The limitation on the grant of step increment benefits can be applied to longevity pay benefits.

The Director, NGS - Cluster B - General Public Services II and Defense, this Commission, in NGS - Cluster B Decision No.
2012-007, agreed with the justifications of the appellant and granted the appeal.

ISSUE

The issue to be resolved is whether or not NGS Cluster B Decision No. 2012-007 is proper.

DISCUSSION

Upon a careful and judicious evaluation, this Commission rules in the affirmative.

Section 7(g) of RA No. 8439 provides:

Section 7. Other benefits. - Notwithstanding Section 12 of Republic Act No. 6758, science and technology
personnel defined under Section 5 of this Act shall receive the following:

(a)xxx

(g) Longevity pay. - A monthly longevity pay equivalent to five percent (5%) of the monthly basic salary shall
be paid to S & T personnel for every five (5) years of continuous and meritorious service as determined by
the Secretary of the Department; xxx (Emphasis supplied)

Corollary thereto is Section 2.7.2 of Rule II Benefits of the Implementing Rules and Regulations (IRR) of RA No. 8439,
which provides:

Payment of longevity pay shall cover the entire S&T government service as defined in the above provision,
from the S&T personnels original appointment, subject to the approval of the DOST Secretary upon
recommendation of the agency head. (Emphasis supplied)

The ATL, ASTI, issued the disallowance on the ground that the required approval of the DOST Secretary under the
foregoing provisions was not complied with in the granting of LP to ASTI officials and employees. On the other hand, ASTI
claims to have met such requirement through DOST AO No. 005.

A perusal of DOST AO No. 005 dated March 18, 1999 shows that such guidelines were issued by then DOST Secretary
Filemon A Uriarte, Jr. to serve as basis for entitlement and payment of LP to DOST and other S&T personnel in the government.
Likewise, Item 4.0 of the same AO states:

Entitlement and Computation of Longevity Pay

S&T personnel as defined in this guidelines shall be entitled to a monthly longevity pay equivalent to 5% of
his/her present actual monthly salary for every 5 years of continuous and meritorious service in government.
Reckoning of years of service for purposes of percentage to be applied in the computation of LP shall include
the entire government service, even prior to the effectivity of the law, but entitlement shall commence only after
the implementation of the law. xxx

The issuance of DOST AO No. 005 does not tantamount to the approval of the payment of LP to the DOST-ASTI employees
required under Section 7 (g), RA No. 8439 and Section 2.7.2, Rule II, IRR of RA No. 8439.

The AO is an administrative issuance, in the nature of implementing guidelines for the further implementation of RA No.
8439 and its IRR by the DOST and its attached agencies. Likewise, issuances of such nature are intended for the proper guidance
of the personnel of the concerned agencies who wish to avail of the benefits granted by the law, as opposed to an administrative
resolution which carry with it a particular sentiment of the concerned agency on a particular issue under its review. DOST AO No.
005 merely set the guidelines as basis for the payment of LP to entitled employees. It does not carry with it the necessary approval
from the Department Secretary of the payment of LP.

In any event, the payment of LP is valid.

 In any event, the payment of LP is valid.

Elementary is the rule that the authority of public officers can be exercised only during the term when the public officer is,
by law, invested with the rights and duties of the office.

DOST Secretary Montejo was appointed as such and assumed office on June 30, 2010. At the time of the approval of the
payment of LP to the entitled officials and employees of ASTI-DOST, DOST Secretary Montejo is vested with authority to perform
the functions of his office as Department Secretary.

Section 2.7.2, Rule II, IRR of RA No. 8439 provides that the payment of the LP shall be subject to the approval of the
Department Secretary. The provision is silent whether such approval shall precede or follow the payment of the LP to the entitled
officials and employees. Thus, as long as the payment of the LP is supported with the approval of the Department Secretary, the
requirements of Section 7 (g), RA No. 8439 and Section 2.7.2, Rule II, IRR of RA No. 8439 are satisfied.

In this case, the payment of LP is ratified by DOST Secretary Montejo. Notwithstanding that the DOST Secretary approval
was secured only after the payment to and receipt of LP by ASTI-DOST entitled officials and employees, the DOST Secretary
approval requirement is satisfied.

The ATL, ASTI, also asserts that there was violation of Section 2.b of CSC DBM Joint Circular No. 1, s. 1990 since the
entitlement to LP was made effective from the date of the original appointment of the employees, regardless of the change of
position in the agency.

However, an examination of CSC DBM Joint Circular No. 1, s. 1990 or the Rules and Regulations governing the Grant of
Step Increments to Deserving Officials and Employees of the Government shows that it applies only to the grant of step
increment benefits, and not to LP benefits. It is a cardinal rule in statutory construction that when the law is clear and free from
any doubt or ambiguity, there is no room for construction or interpretation. As such, CSC DBM Joint Circular No. 1, s. 1990
finds no application to the grant of LP benefits.

RULING

WHEREFORE, premises considered, National Government Sector Cluster B Decision No. 2012-007 dated April 24, 2012
is hereby APPROVED. Accordingly, Notice of Disallowance No. 10-031-101(10) dated December 27, 2010 on the payment of
Longevity Pay to officials and staff of Advanced Science and Technology Institute, Department of Science and Technology,
Diliman, Quezon City, in the amount of P633,397.75, is LIFTED.

(SGD.) MICHAEL G. AGUINALDO

Chairperson

(SGD.) JOSE A. FABIA (SGD.) ISABEL D. AGITO

Commissioner Commissioner

Attested by:

(SGD.) NILDA B. PLARAS

Director IV
Commission Secretariat

Copy furnished:

Director Denis F. Villorente

Advanced Science and Technology Institute (ASTI)
U.P. Campus, C.P. Garcia Avenue
Quezon City

The Audit Team Leader

ASTI
U.P. Campus, C.P. Garcia Avenue
Quezon City

The Director
Cluster 6Health and Science
National Government Sector

The Director
Information Technology Office
Systems and Technical Services Sector
The Assistant Commissioners
National Government Sector
Commission Proper Adjudication and
Secretariat Support Services Sector

All of this Commission

ESZ/EGAT/EEL/RMF/KDG
OGC-2012-5-7-13133/ 3808 B
E:/DOST ASTI Denis F. Villorente
5.11.2016

1 Pursuant to Section 7, Rule V of the 2009 Revised Rules of Procedure of the Commission on Audit (RRPC)
2 As noted in the Appeal Memorandum of appellant and in the Excerpt of Documents and Summary of Events (EDSE) containing the ATLs recommendation, the reference
quoted should be Sec. 7(g) of RA No. 8439.
3 Those personnel defined under Section 5 of RA No. 8439, to wit:

S & T personnel may be classified in the following categories:

(a) S & T managers, supervisors, and planners. - Those who are graduate degree holders or have at least ten (10) years of managerial experience or are
performing executive, planning and policy-making functions to effectively carry out STA related activities as defined in Section 3 of this Act;

(b) Members of the scientific career system;

(c) Scientists, engineers and researchers. - Those who are at least undergraduate degree holders in any of the natural science and engineering courses
and are involved in research and development or other scientific and technological activities; and

(d) DOST technicians and related S & T personnel. - Those who obtained at least twelve (12) units in science, engineering and other related courses or
any appropriate training as determined by the Secretary of the Department and are providing support services to S & T personnel enumerated in the
three (3) preceding sub-sections.