G.R. No. L-15142 November 29, 1966
RAMON DUTERTE, ETC., ET AL., petitioners-appellants, vs. FLORENCIO MORENO, ET AL., respondents-appellees. SUSANO NEGADO, Manager of the National Waterworks and Sewerage Authority, respondent-appellant.

FACTS

The petitioners, except Mayor Ramon Duterte, were officers and employees of the Osmeña Waterworks System in Cebu City. They were originally appointed by the Secretary of Public Works and Communications, with salaries authorized under those appointments. In July 1956, then Cebu City Mayor Sergio Osmeña Jr. extended new appointments with salary increases to these employees and also appointed twelve new employees, purportedly under Section 21 of the Cebu City Charter. These mayoral appointments were submitted for approval to the Bureau of Civil Service and the Executive Secretary but were disapproved. The Auditor General subsequently ordered the suspension and disallowance of salary payments under these mayoral appointments. The petitioners filed an action seeking approval of their mayoral appointments, an injunction against the Secretary of Public Works and Communications and the NAWASA Manager from exercising appointment powers over the system’s personnel, an order for the Auditor General and City Auditor to approve their salary payments, and damages. The lower court dismissed the petition, ruling that the power to appoint personnel of the Osmeña Waterworks System is vested in the Secretary of Public Works and Communications. The court, however, stated that the first 55 petitioners (appointed by the Secretary) should be paid their authorized salaries, and the 12 new appointees should be paid based on the Minimum Wage Law for services actually rendered until notified of the disapproval, but noted the City of Cebu was not a party to be held liable. Both the petitioners and the NAWASA Manager appealed.

ISSUE

Who is the official vested by law with the power to appoint the officers and employees of the Osmeña Waterworks System?

RULING

The Supreme Court affirmed the lower court’s decision, with modification. It ruled that the power to appoint the officers and employees of the Osmeña Waterworks System is vested in the Secretary of Public Works and Communications, not the City Mayor of Cebu. The Court found that the provision of the Revised Administrative Code cited by petitioners refers to waterworks owned by provinces and municipalities, not chartered cities. Furthermore, the City Mayor’s power under the Cebu City Charter applies only if the appointment is “not otherwise provided for by law.” Relevant laws, including the city charter and Commonwealth Act 424, place the City Engineer (who has care of the waterworks) under the supervision and control of the Director of Public Works, and provide that personnel shall be appointed in accordance with laws governing personnel in engineering districts, where the power is lodged in the Secretary of Public Works and Communications. The Court also noted the City’s prior recognition of appointments made by the Secretary. The Court affirmed the lower court’s declaration on the payment of salaries: those appointed by the Secretary are entitled to their authorized rates, and those appointed by the Mayor are entitled to payment based on the Minimum Wage Law for services actually rendered until they were advised of the disapproval. Modifying the lower court, the Supreme Court deemed the City of Cebu a party to the action and ordered it to pay the due salaries to the employees in accordance with the pronouncement.