2025 Bar Chair's Cases Bar Q and A Political Law - Q2

The Department of Education (DepEd) implemented a payroll deduction scheme to facilitate the payment of loans obtained by public-school teachers from accredited private lenders. Rizal Teachers Kilusang Bayan for Credit, Inc. (RTKBCI) was one of the accredited lenders under this scheme.

Due to numerous complaints from teachers regarding unauthorized excessive deductions and alleged collusion between RTKBCI and certain DepEd personnel, Undersecretary Ernesto Pangan ordered the suspension of the salary deduction scheme and withheld remittances from February to June 2001. RTKBCI demanded the release of the collections, but DepEd refused, citing the need to protect the teachers.

RTKBCI filed a petition for mandamus before the Regional Trial Court (RTC) to compel DepEd to release the withheld amounts and continue the salary deduction scheme. The RTC ruled in favor of RTKBCI, and the Court of Appeals (CA) affirmed the decision, holding that RTKBCI had a clear legal right to receive the loan payments that DepEd had already collected. The CA further ruled that the payroll deduction scheme, though initially a privilege, had become a property right of RTKBCI once DepEd authorized and implemented it. 

IsDepEdcompelledtocollect,bysalarydeductions,theloanpaymentsofpublic-school teachersand remit them to the RTKBCI?

Ans:

No, the DepEd cannot be compelled to collect by salary deductions the loan payments of public-school teachers and remit them to the RTKBCI because that is not among its core power, duties and functions.

Under the Special Law, DepEd has the power, duties and functions and the different levels of supervision and regulation of educational activities. DepEd's activities as collection and remittance agent for accredited private lending institutions are not among its core power, duties, and functions.

Here, DepEd has no legal duty to act as a collecting and remitting agent for RTKBCI. Rather, it is an accommodation that DepEd does, not for the benefit of any private lending agency but as a means to protect and promote the teachers' welfare. Hence, DepEd cannot be compelled to collect and remit loan payments of lending institutions.