In a 29-page decision, the CAs special first division ruled that Special Prosecutor Dennis Villa Ignacio has no authority to impose administrative sanctions against government officials.
"Villa Ignacio is not authorized by law to sign and issue preventive orders," the decision read.
The decision cited the opinion of Andrew Ammuyutan, Office of the Ombudsman legal counsel, that Villa Ignacios suspension of Deputy Commissioner Gil Valera had "stepped into the position" of the Ombudsman.
The CA rejected Villa Ignacios argument that the power of suspension had been delegated to him by Ombudsman Simeon Marcelo.
During a hearing last April, Jose de Jesus, Office of the Ombudsman director, had also disapproved any sanction against Valera, the decision added.
Under Republic Act 6770, only the Ombudsman and his four deputies can order the suspension of government officials who are facing charges, the decision added.
The Office of the Special Prosecutor has accused Valera of entering into a P37.1-million compromise agreement with Steel Asia Manufacturing Corp. without authority from the commissioner of Customs.
However, Valera said Customs Commissioner Antonio Bernardo nor his predecessor Titus Villanueva had not done anything to rescind the agreement.
Valera said Bernardo even helped in convincing Steel Asia to speed up its monthly staggered payments from 30 to 18 months.
The criminal complained filed by Chief Superintendent Eduardo Matillano, Criminal Investigation and Detection Group chief, did not also give details on how he was supposed to have acquired assets beyond his means, he added.
The CAs special first division is comprised of Associate Justices Andres Reyes Jr., Arturo Brion, and Cancio Garcia.