G.R. No. 138489 November 29, 2001 ELEANOR DELA CRUZ, FEDERICO LUCHICO, JR., OLEDAD E!

ILIA CRUZ, JOEL LU "RIA, HENR# $AREL, HELENA HA%ULAN, $ORFIRIO &ILLENA, JO E$H FRANCIA, CAR!ELLA "ORRE , JO% DA&ID, CE AR !EJIA, !A. LOURDE &. DEDAL, ALICE "IONG ON, RE#DELUZ CONFERIDO, $HILI$$E LI!, NERI A ANCHEZ, !AR# LUZ ELAINE $URACAN, RODOLFO 'UI!%O, "I"O GENILO ()* O CAR A%UNDO, (+ member+ o, -.e %o(r* o, -.e N(-/o)(0 Ho1+/)2 A1-.or/-3 ,rom -.e 4er/o* 5over/)2 199161997,petitioners, vs. CO!!I ION ON AUDI", re4re+e)-e* b3 /-+ Comm/++/o)er+, respondents. ANDO&AL6GU"IERREZ,J.: Facts: On September 19, 1997, the COA issued Memorandum No. 97-038 dire!tin" a## unit heads$auditors$team #eaders o% the nationa# "overnment a"en!ies and "overnment-o&ned and !ontro##ed !orporations &hi!h have e%%e!ted pa'ment o% an' %orm o% additiona# !ompensation or remuneration to !abinet se!retaries, their deputies and assistants, or their representatives, in vio#ation o% the ru#e on mu#tip#e positions, to (a) immediate#' !ause the disa##o&an!e o% su!h additiona# !ompensation or remuneration "iven to and re!eived b' the !on!erned o%%i!ia#s, and (b) e%%e!t the re%und o% the same %rom the time o% the %ina#it' o% the Supreme Court En Banc *e!ision in the !onso#idated !ases o% Civil Liberties Union vs. Executive Secretary and Anti- Graft League of the Phili ines! "nc. et al! vs. Secretary of Agrarian #efor$! et al.! promu#"ated on +ebruar' , 1991.3 ,he COA Memorandum %urther stated that the said Supreme Court *e!ision, &hi!h be!ame %ina# and e-e!utor' on Au"ust 19, 1991,. de!#ared /-e!utive Order No. 8. un!onstitutiona# inso%ar as it a##o&s Cabinet members, their deputies and assistant to ho#d other o%%i!es, in addition to their primar' o%%i!es, and to re!eive !ompensation there%or. On O!tober 3, 1997, N0A 1esident Auditor Sa#vador 2, 3as4ue5 issued Noti!e o% *isa##o&an!e No. 97-011-0617 disa##o&in" in audit the pa'ment o% representation a##o&an!es and per diems o% 8Cabinet members &ho &ere the ex- officio members o% the N0A 9oard o% *ire!tors and$or their respe!tive a#ternates &ho a!tua##' re!eived the pa'ments,8 ,he tota# disa##o&ed amount o% : 76,600 paid as representation a##o&an!es and per diems to ea!h o% the petitioners named be#o&, !overin" the period %rom Au"ust 19, 1991 to Au"ust 31, 1996. :etitioners, throu"h then Chairman *ionisio C. *e#a Serna o% the N0A 9oard o% *ire!tors, appea#ed %rom the Noti!e o% *isa##o&an!e to the Commission on Audit averrin" that the *e!ision o% the Supreme Court in Civil Liberties Union and Anti-Graft League of the Phili ines! "nc. &as !#ari%ied in the 1eso#ution o% the Court En Banc on Au"ust 1, 1991, in that the !onstitutiona# ban a"ainst dua# or mu#tip#e positions app#ies on#' to the members o% the Cabinet, their deputies or assistants. ;t does not !over other appointive o%%i!ia#s &ith e4uiva#ent ran< or those #o&er than the position o% Assistant Se!retar'= and that the N0A *ire!tors are not Se!retaries, >nderse!retaries or Assistant Se!retaries and that the' o!!up' positions #o&er than the position o% Assistant Se!retar'. On September , 1998, the COA issued *e!ision No.98-3818 den'in" petitioners? appea#, statin" that the outset that the *ire!tors !on!erned &ere not sittin" in the N0A 9oard in their o&n ri"ht but as representatives o% !abinet members and &ho are !onstitutiona##' prohibited %rom ho#din" an' other o%%i!e or emp#o'ment and re!eive !ompensation there%or, durin" their tenuret ;t ma' be !on!eded that the dire!tors !on!erned o!!up' positions #o&er than Assistant Se!retar' &hi!h ma' e-empt them %rom the prohibition (under) the do!trine enun!iated in aforementioned cases. 0o&ever, their positions are mere#' derivative= the' derive their authorit' as a"ents o% the authorit' the' are representin"= their po&er and authorit' is sour!ed %rom the po&er and authorit' o% the !abinet members the' are sittin" %or. Sans the !abinet members, the' are non-entities, &ithout po&er and &ithout persona#it' to a!t in an' manner &ith respe!t to the o%%i!ia# transa!tions o% the N0A. ,he a"ent or representative !an on#' va#id#' a!t and re!eive bene%its %or su!h a!tion i% the prin!ipa# authorit' he is representin" !an #e"a##' do so %or the a"ent !an on#' do so mu!h as his prin!ipa# !an do. ,he a"ent !an never be #ar"er than the prin!ipa#. ;% the prin!ipa# is abso#ute#' barred %rom ho#din" an' position in and abso#ute#' prohibited %rom re!eivin" an' remuneration %rom the N0A or an' "overnment a"en!', %or that matter, so must the a"ent be. ;ndeed, the &ater !annot rise above its sour!e.8 ;ssue@ Ahether the !ase o% CB> in!#udes N0A *ire!tors, appointive o%%i!ia#s. 0e#d@ :residentia# *e!ree No. 777 is the #a& 8Creatin" the Nationa# 0ousin" Authorit' and disso#vin" the e-istin" housin" a"en!ies, de%inin" its po&ers and %un!tions, providin" %unds there%or, and %or other purposes.8 Se!tion 7 thereo% provides@ 8 EC. 8. %o(r* o, D/re5-or+ . -,he Authorit' sha## be "overned b' a 9oard o% *ire!tors, hereina%ter re%erred to as the 9oard, &hi!h sha## be 5om4o+e* o, -.e e5re-(r3 o, $1b0/5 9or:+, "r()+4or-(-/o) ()* Comm1)/5(-/o), -.e D/re5-or6Ge)er(0 o, -.e N(-/o)(0 E5o)om/5 ()* Deve0o4me)- A1-.or/-3, -.e e5re-(r3 o, F/)()5e, -.e e5re-(r3 o, L(bor, -.e e5re-(r3 o, I)*1+-r3, -.e E;e51-/ve e5re-(r3 ()* -.e Ge)er(0 !()(2er o, -.e A1-.or/-3. +rom amon" the members, the :resident &i## appoint a !hairman. ,he members o% the 9oard ma' have their re+4e5-/ve (0-er)(-e+ &ho sha## be the o%%i!ia#s ne-t in ran< to them ()* <.o+e (5-+ +.(00 be 5o)+/*ere* -.e (5-+ o, -.e/r 4r/)5/4(0+ &ith the ri"ht to re!eive their bene%it@ :rovided, that in the absen!e o% the Chairman, the 9oard sha## e#e!t a temporar' presidin" o%%i!er. - - - C/mphasis ours) ;t bears stressin" that under the above provisions, the persons mandated b' #a& to sit as members o% the N0A 9oard are the %o##o&in"@ (1) the Se!retar' o% :ub#i! Aor<s, ,ransportation and Communi!ations, ( ) the *ire!tor-Denera# o% the Nationa# /!onomi! and

*eve#opment Authorit', (3) the Se!retar' o% +inan!e, (.) the Se!retar' o% Babor, (7) the Se!retar' o% ;ndustr', (6) the /-e!utive Se!retar', and (7) the Denera# Mana"er o% the N0A. Ahi#e petitioners are not amon" those o%%i!ers, ho&ever, the' are 8a#ternates8 o% the said o%%i!ers, 8&hose a!ts sha## be !onsidered the a!ts o% their prin!ipa#s8. On this point, Se!tion 13, Art. 3;; o% the 1987 Constitution, provides@ 8 EC. 13. ,he :resident, 3i!e-:resident, the Members o% the Cabinet, and their deputies or assistants sha## not, un#ess other&ise provided in this Constitution, ho#d an' other o%%i!e or emp#o'ment durin" their tenure. ,he' sha## not, durin" their tenure, dire!t#' or indire!t#' pra!ti!e an' other pro%ession, parti!ipate in an' business, or be %inan!ia##' interested in an' !ontra!t &ith, or in an' %ran!hise, or spe!ia# privi#e"e "ranted b' the Dovernment or an' subdivision, a"en!' or instrumenta#it' thereo%, in!#udin" an' "overnment-o&ned or !ontro##ed !orporations or their subsidiaries. ,he' sha## stri!t#' avoid !on%#i!t o% interest in the !ondu!t o% their o%%i!e. 8,he spouse and re#atives b' !onsan"uinit' or a%%init' &ithin the %ourth !ivi# de"ree o% the :resident sha## not durin" his tenure be appointed as Members o% the Constitutiona# Commissions, or the O%%i!e o% Ombudsman, or as Se!retaries, >nderse!retaries, Chairmen, or heads o% bureaus o% o%%i!es, in!#udin" "overnment-o&ned or !ontro##ed !orporations and their subsidiaries.8 ;nterpretin" the %ore"oin" Constitutiona# provisions, this Court, in Civil Liberties Union and Anti-Graft League of the Phili ines! "nc.,10 he#d@ 8,he prohibition a"ainst ho#din" dua# or mu#tip#e o%%i!es or emp#o'ment under Se!tion 13, Arti!#e 3;; o% the Constitution must not, ho&ever, be !onstrued as app#'in" to posts o!!upied b' the /-e!utive o%%i!ia#s spe!i%ied therein &ithout additiona# !ompensation in an ex-officio !apa!it' as provided b' #a& and as re%uired b' the primar' %un!tions o% said o%%i!ia#s? o%%i!e. ,he reason is that these posts do not !omprise ?an' other o%%i!e? &ithin the !ontemp#ation o% the !onstitutiona# prohibition but are proper#' an imposition o% additiona# duties and %un!tions on said o%%i!ia#s. - - 8,o reiterate, the prohibition under Se!tion 13, Arti!#e 3;; is not to be interpreted as !overin" positions he#d &ithout additiona# !ompensation in ex-officio !apa!ities as provided b' #a& and as re4uired b' the primar' %un!tions o% the !on!erned o%%i!ia#?s o%%i!e. ,he term ex-officio means ?%rom o%%i!e= b' virtue o% o%%i!e?. ;t re%ers to an ?authorit' derived %rom o%%i!ia# !hara!ter mere#', not e-press#' !on%erred upon the individua# !hara!ter, but rather anne-ed to the o%%i!ia# position.? Exofficio #i<e&ise denotes an ?a!t done in an o%%i!ia# !hara!ter, or as a !onse4uen!e o% o%%i!e, and &ithout an' other appointment or authorit' than that !on%erred b' the o%%i!e.? An ex-officio member o% a board is one &ho is a member b' virtue o% his tit#e to a !ertain o%%i!e, and &ithout %urther &arrant or appointment. ,o i##ustrate, b' e-press provision o% #a&, the Se!retar' o% ,ransportation and Communi!ations is the ex-officio Chairman o% the 9oard o% the :hi#ippine :orts Authorit', and the Bi"ht 1ai# ,ransit Authorit'. =".e ex-officio 4o+/-/o) be/)2 (5-1(003 ()* /) 0e2(0 5o)-em40(-/o) 4(r- o, -.e 4r/)5/4(0 o,,/5e, /- ,o00o<+ -.(- -.e o,,/5/(0 5o)5er)e* .(+ )o r/2.- -o re5e/ve (**/-/o)(0 5om4e)+(-/o) ,or ./+ +erv/5e+ /) -.e +(/* 4o+/-/o). ".e re(+o) /+ -.(- -.e+e +erv/5e+ (re (0re(*3 4(/* ,or ()* 5overe* b3 -.e 5om4e)+(-/o) (--(5.e* -o ./+ 4r/)5/4(0 o,,/5e. I- +.o10* be obv/o1+ -.(- /,, +(3, -.e e5re-(r3 o, F/)()5e (--e)*+ ( mee-/)2 o, -.e !o)e-(r3 %o(r* (+ () ex-officio member -.ereo,, .e /+ (5-1(003 ()* /) 0e2(0 5o)-em40(-/o) 4er,orm/)2 -.e 4r/m(r3 ,1)5-/o) o, ./+ 4r/)5/4(0 o,,/5e /) *e,/)/)2 4o0/53 /) mo)e-(r3 b():/)2 m(--er+, <./5. 5ome 1)*er -.e >1r/+*/5-/o) o, ./+ *e4(r-me)-. For +15. (--e)*()5e, -.ere,ore, .e /+ )o- e)-/-0e* -o 5o00e5- ()3 e;-r( 5om4e)+(-/o), <.e-.er /- be /) -.e ,orm o, ( 4er */em or () .o)or(r/1m or () (00o<()5e, or +ome o-.er +15. e14.em/+m. %3 <.(-ever )(me /- /+ *e+/2)(-e*, +15. (**/-/o)(0 5om4e)+(-/o) /+ 4ro./b/-e* b3 -.e Co)+-/-1-/o).= Sin!e the /-e!utive *epartment Se!retaries, as ex-oficio members o% the N0A 9oard, are prohibited %rom re!eivin" 8e-tra (additiona#) !ompensation, &hether it be in the %orm o% a per diem or an honorarium or an a##o&an!e, or some other su!h euphemism,8 it %o##o&s that petitioners &ho sit as their a#ternates !annot #i<e&ise be entit#ed to re!eive su!h !ompensation. A !ontrar' ru#e &ou#d "ive petitioners a better ri"ht than their prin!ipa#s.1E&phi1.nFt Ae thus ru#e that in renderin" its !ha##en"ed *e!ision, the COA did not "rave#' abuse its dis!retion. 9HEREFORE, the petition is *;SM;SS/*. O ORDERED.