Power of the President to Reorganize Administrative Structure (2003)

No VI The President abolished the Office of the Presidential Spokesman in Malacanang Palace and a long-standing Bureau under the Department of Interior and Local Governments. The employees of both offices assailed the action of the President for being an encroachment of legislative powers and thereby void. Was the contention of the employees correct? Explain. SUGGESTED ANSWER: 1. The contention of the employees is not correct. 2. As held in Buklod ng Kawaning EHB v. Zamora. 360 SCRA 718 [2001], 3. Section 31, Chapter 10, Title III, Book III of the Administrative Code of 1987 has delegated to the President continuing authority to reorganize the administrative structure of the Office of the President to achieve simplicity, economy and efficiency. 4. Since this includes the power to abolish offices, the President can abolish the Office of the Presidential Spokesman, provided it is done in good faith. 5. The President can also abolish the Bureau in the Department of Interior and Local Governments, provided it is done in good faith 6. because the President has been granted continuing authority to reorganize the administrative structure of the National Government to effect economy and promote efficiency, and the powers include the abolition of government offices. (Presidential Decree No. 1416, as amended by Presidential Decree No. 1772; Larin v. The Executive Secretary. 280 SCRA 713 [1997]). Book 111-Sec. 31. Continuing Authority of the President to Reorganize his Office.
The President, subject to the policy in the Executive Office and in order to achieve simplicity, economy and efficiency, shall have continuing authority to reorganize the administrative structure of the Office of the President. For this purpose, he may take any of the following actions: (1) Restructure the internal organization of the Office of the President Proper, including the immediate Offices, the Presidential Special Assistants/Advisers System and the Common staff Support System, by abolishing, consolidating or merging units thereof or transferring functions from one unit to another; (2) Transfer any function under the Office of the President to any other Department or Agency as well as transfer functions to the Office of the President from other Departments and Agencies; and (3) Transfer any agency under the Office of the President to any other department or agency as well as transfer agencies to the Office of the President from other departments or agencies. PD 1416 GRANTING CONTINUING AUTHORITY TO THE PRESIDENT OF THE PHILIPPINES TO REORGANIZE THE NATIONAL GOVERNMENT (4) (b) Abolish departments, offices, agencies or functions which may not be necessary, or create those which are necessary, for the efficient conduct of government functions services and activities; PD 1772- AMENDING PRESIDENTIAL DECREE NO. 1416 Section 2. Paragraph 2 of Presidential Decree No. 1416 is hereby amended to provide for additional subparagraphs, as follows: "f. Create, abolish, group, consolidate, merge, or integrate entities, agencies, instrumentalities, and units of the National Government, as well as expand, amend, change, or otherwise modify their powers, functions and authorities, including, with respect to government-owned or controlled corporations, their corporate life, capitalization, and other relevant aspects of their charters."

There are three modes of establishing an administrative body: (1) Constitution; (2) Statute; and (3) by authority of law. This case falls under the third category. The DOTC Secretary, as alter ego of the President, is authorized by law to create and establish the LTFRBCAR Regional Office. This is anchored on the Presidents power of control under sec. 17, Art. VII, 1987 Constitution. By definition, control is the power of an officer to alter or modify or nullify or set aside what a subordinate officer had done in the performance of his duties and to substitute the judgment of the former for that of the latter. It includes the authority to order the doing of an act by a subordinate or to undo such act or to assume a power directly vested in him by law. Under sec. 20, Bk. III, E.O. 292, the Chief Executive is granted residual powers, stating that unless Congress provides otherwise, the President shall exercise such other powers and functions vested in the President which are provided for under the laws xxx What law then gives him the power to reorganize? It is PD 1772 which amended PD 1416. These decrees expressly grant the President of the Philippines the continuing authority to reorganize the national government, which includes the power to group, consolidate bureaus and agencies, to abolish offices, to transfer functions, to create and classify functions, services and activities and to standardize salaries and materials.Granted that the President has the power to reorganize, was the reorganization of DOTCCAR valid? In this jurisdiction, reorganization is regarded as valid provided it is pursued in good faith. As a general rule, a reorganization is carried out in good faith if it is for the purpose of economy or to make bureaucracy more efficient. The reorganization in the instant case was decreed in the interest of service and for purposes of economy and more effective coOrdination of the DOTC functions in the Cordillera Administrative Region. It thus bear the earmarks of good faith. When is there reorganization made in good faith? The general rule is that a reorganization is carried out in good faith if it is for the purpose of economy or to make bureaucracy more efficient.