Abanilla vs.

COA Facts: Metropolitan Cebu Water District (MCWD) was organized as governmentowned and controlled corporation with original charter pursuant to PD 198. Through its BOD, it issued Resolutions giving hospitalization benefits, longevity pay, monetization of leave credits and other bonuses to its personnel, one of whom is Petitioner Abanilla. During 1989, MCWD executed CBA for the continuous grant of the privileges and renewed the same in 1992. In 1995, COA conducted audit and disallowed 12M expenses representing the benefits granted. Petitioner assailed the CBA and the Courts ruling in Davao City Water District which allowed the continuation of benefits provided in CBA until its expiry.

Issue: Whether or not the employment in water district is governed by Civil Service Law considering that there is an existing CBA and considering further that non-adherence thereto would violate the Labor Code. Ruling: Yes, officers and employees in water district are covered by Civil Service Law as pronounced in Davao City Water District where petitioner anchored its claim, though misplaced. In government employment, it is the legislature or if delegated, the administrative heads, which fix the terms and conditions of employment effected through statutes, circulars, rules, and regulations, and not through CBA. Petition is denied.