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In 1989, congress enacted RA 6758, compensation and position classification act of 1989 to
ratonalize the compensation of government employees. Pursuant to this law, the department of
Budget and management (DBM) issued NCC 59 which enumerated the specific allowances and
additonal compensations which were deemed integrated in the basic salaries and these included
the Cost of Living Allowance ( COLA ) and inflation connected allowance ( ICA ). The DBM also
issued Corporate Compensation Circular ( CCC ) covering all government-owned or controlled
corporations and government financial institutions. the Commission on Audit (COA) disallowed the
payments of honoraria and other allowances which were deemed integrated into the standardized
salary rates. the petitioner now questions the propreity of integrating their COLA into their
standardize salary rates contending that respondent DBM as an administrative agency does not
have the power to make rules and regulations to implement a given legislation and effectuate its
policies.
issue:
Whether the DBM as an administrative agency has the power to promulgate NCC 59 and CCC 10?
Ruling:
Yes. the court ruled that, in this case, instead of identifying some of the additional exclusions that
section 12 of RA 6758 permits it to make, the DBM made a list of what allowances and benefits are
deemed integrated into the standardized salary rates. The drawing up of the above list is consistent
with Section 12 above. R.A. 6758 did not prohibit the DBM from identifying for the purpose of
implementation what fell into the class of all allowances. With respect to what employees benefits
fell outside the term apart from those that the law specified, the DBM, said this Court in a case,[12]
needed to promulgate rules and regulations identifying those excluded benefits. This leads to the
inevitable conclusion that until and unless the DBM issues such rules and regulations, the
enumerated exclusions in items (1) to (6) remain exclusive. Thus so, not being an enumerated
exclusion, COLA is deemed already incorporated in the standardized salary rates of government
employees under the general rule of integration.
Note:
Secretary Cario sought and was granted "that the complaint states no cause of action
and that the CHR has no jurisdiction over the case."
issue:
whether a quasi-judicial agency such as CHR has adjudicatory powers towards the private
respondents?
Ruling;
No. the court ruled that, the CHR has only the power to investigate.The legal meaning of
"investigate" is essentially the same: "(t)o follow up step by step by patient inquiry or
observation. To trace or track; to search into; to examine and inquire into with care and
accuracy while adjudicate, commonly or popularly understood, means to adjudge,
arbitrate, judge, decide, determine, resolve, rule on, settle. Hence it is that the Commission
on Human Rights, having merely the power "to investigate," cannot and should not "try and
resolve on the merits.