G.R. No. 152093; January 24, 2012
NATIONAL POWER CORPORATION, Petitioner, vs. CIVIL SERVICE COMMISSION and RODRIGO A. TANFELIX, Respondents.

FACTS

On April 7, 1997, the National Power Corporation (NPC) filed an administrative case against its employee, Rodrigo A. Tanfelix, a Supervising Mechanical Engineer, for rigging the bidding for the construction of a wind break fence at its Calaca, Batangas thermal power plant. After a hearing, the NPC’s Board of Inquiry and Discipline (BID) found Tanfelix guilty of grave misconduct. The evidence showed that Tanfelix invited five pre-qualified contractors to a restaurant meeting, where he offered ₱1 million each to four bidders to let ALC Industries, Inc. (ALC) win the bidding. He also built a ₱2 million fee into ALC’s bid for arranging the rig and padding NPC’s price estimate. Subsequently, the heads of ALC and one losing bidder, Ley Construction and Development Corp. (LCDC), signed a memorandum of agreement in Tanfelix’s presence embodying the bid-rigging deal. ALC subsequently won the bidding. The NPC-BID ordered Tanfelix’s dismissal. The Civil Service Commission (CSC) initially affirmed the dismissal but, upon motion for reconsideration, reversed itself and exonerated Tanfelix in a Resolution dated December 21, 2000. The CSC ruled that the misconduct warranting removal must be directly related to official duties, and since Tanfelix was not a member of the NPC bids committee and there was no proof he influenced its members, he could not be held liable. The Court of Appeals affirmed the CSC’s exoneration. NPC elevated the case to the Supreme Court.

ISSUE

Whether or not the Court of Appeals correctly absolved respondent Rodrigo A. Tanfelix of administrative liability for rigging the bids on an NPC construction contract on the ground that he was not a member of the bids committee that awarded the contract.

RULING

The Supreme Court REVERSED the decisions of the Court of Appeals and the Civil Service Commission. The Court held that Tanfelix is guilty of grave misconduct and imposed the penalty of dismissal with its accessory penalties.
The Court ruled that grave misconduct consists of a government official’s deliberate violation of a rule of law or standard of behavior, and is considered grave when elements like corruption are present. Corruption involves the unlawful use of one’s station or character to procure a benefit. The Court found that Tanfelix, as NPC’s Supervising Mechanical Engineer, wrongfully used his position and reputation to rig the bidding. He misused his station to gain access to information and to the pre-qualified bidders, orchestrating a scheme to cheat the NPC. The fact that he was not a member of the bids committee and did not directly influence its members is immaterial. His actions in rigging the bids among the bidders themselves effectively predetermined the outcome, leaving the bids committee with no real choice. As a public officer, Tanfelix had a duty to protect the integrity of the public bidding process within his organization. To absolve him based on his non-membership in the bids committee would encourage similar corrupt practices by other officers. Therefore, he was found administratively liable.