G.R. No. 93511 June 3, 1993.
CORAZON L. CABAGNOT in her capacity as Provincial Governor of Aklan, petitioner, vs. CIVIL SERVICE COMMISSION and RENATO R. BAUTISTA, PEDRO R. SAYON, EUFEMIA I. MAQUINICA, ARLYN G. BUENSALIDO, TITA A. LUMIO, REBA B. CONCEPCION, PRISCILLA D. BRIONES, JOYCE C. MARTIREZ, ANNIE T. DALA, VIVIAN J. RUIZ, ELLEN I. TOLENTINO, EVES B. POBLACION, ANITA S. MEREN, MARGARETH V. NATAL, MUJANE BEGONIA C. MIROY, ESTELITO C. SILVA, and EXPEDITO W. OCZON, respondents.

FACTS

On September 21, 1988, the new organizational structure and staffing pattern of the provincial government of Aklan was approved, increasing positions from 339 to 364, with the Office of the Governor allocated 144 positions from the previous 60. The implementation was subject to conditions including adherence to Civil Service Commission qualification standards and the provisions of Republic Act No. 6656 . Petitioner Governor Corazon L. Cabagnot invited all provincial officials and employees to apply for positions in the new staffing pattern. On January 5, 1989, a list of newly appointed and re-appointed employees was posted. Seventeen employees (private respondents), who were holding permanent appointments prior to the reorganization, were appointed to positions lower in rank than their former positions despite their old items being carried over in the new staffing pattern and the availability of 84 additional positions in the Office of the Governor. They appealed to the Governor, who denied their appeal, asserting her appointing prerogative and noting there was no reduction in their salaries. The private respondents then collectively appealed to the Civil Service Commission (CSC). The CSC, in a Resolution dated August 23, 1989, found irregularities in the election of the two members representing the first and second level personnel to the Placement Committee and that petitioner violated rules providing preference for appointment of permanent employees. It ordered a new election for committee representatives, reconvening of the committee for re-evaluation, and payment of the appellants’ salaries retroactively. Petitioner filed a Motion for Reconsideration, contesting the finding of election irregularities. The CSC, in a second Resolution dated April 10, 1990, modified its earlier order, deeming a new election and reconvening of the Placement Committee unnecessary but affirming the invalidity of the reorganization as it pertained to the private respondents and ordering their reinstatement to positions comparable to their former ranks.

ISSUE

Whether the Civil Service Commission acted with grave abuse of discretion in ordering the reinstatement of the private respondents to positions comparable to their former ranks, thereby nullifying their appointments to lower positions made by the petitioner Governor during the reorganization.

RULING

The Supreme Court dismissed the petition and affirmed the resolutions of the Civil Service Commission. The Court held that the reorganization of the provincial government of Aklan failed to comply with the provisions of Republic Act No. 6656 and the implementing rules issued by the CSC. The law mandates that officers and employees holding permanent appointments shall be given preference for appointment to new positions comparable to their former positions. The Court found that the private respondents, all permanent employees, were demoted to lower positions despite the existence of comparable positions and a significant increase in available positions. The petitioner Governor’s wide discretion as an appointing authority is not absolute and must be exercised within the bounds of the law, rules, and regulations. The CSC correctly found that the reorganization, as it affected the private respondents, was invalid for violating the statutory preference accorded to permanent employees. The Court also noted that the lack of a Placement Committee evaluation for some respondents and the failure to provide specific findings on qualifications further supported the CSC’s decision. The orders for reinstatement and payment of back salaries were upheld.