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Powers and Functions of the President Executive Power

BANDA V. ERMITA
166620
LEONARDO-DE CASTRO, J.

Summarized by Claudine Jambora

President Arroyos E.O. 378 removed the exclusive jurisdiction of the National
Printing Office over government printing services, allowing private companies to
participate under certain conditions. Petitioners assail the E.O, saying that it was
beyond the Presidents power to reorganize. SC holds that the President has power to
reorganize offices and agencies in the Executive department, so the petition was
dismissed.

IMPORTANT PEOPLE
National Printing Office employees, petitioners
Eduardo Ermita, Executive Secretary, respondent

FACTS
1. The National Printing Office (NPO) was formed during Cory Aquinos
presidential term by virtue of E.O. 2851 from the merger of the Govt Printing
Office. NPO is in charge of govt printing services (ex. printing of public forms,
ballots, documents etc.) exclusively.
2. Oct 25, 2004 Pres. Arroyo issued assailed E.O. 378, amending Sec 6 of
E.O. 285 (Creation of NPO), removing the exclusive jurisdiction of NPO
over the printing services requirements of govt agencies and
instrumentalities. Additionally, NPO has to compete with the private sector
except in printing of election paraphernalia.
3. Due to this, the govt agencies can source their printing services from private
sectors through competitive bidding as long as the private supplier has lower-
priced and higher quality materials than NPO. It also limited NPOs
appropriation in the GAA to its income.
4. Petitioners contend that:
a. It is beyond the executive powers of Pres. Arroyo to amend/repeal E.O.
285 of Pres. Aquino when the latter still exercised legislative power
b. E.O. 378 violates petitioners security of tenure because it paves the way
for gradual abolition of NPO.

1Abolishing the General Services Administration and Transferring its Functions to Appropriate
Government Agencies

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ISSUE with HOLDING
1. W/N there is GAoD in issuance of EO 378
- There is a well-settled principle that the President has the power to
reorganize the offices and agencies in the executive department in line
with the Presidents constitutionally granted power of control over
executive offices (see Doctrine below). Ratio: to remain effective and
efficient, it must be capable of being shaped and reshaped by the
President
- Buklod ng Kawaning EIIB v. Zamora: The President may transfer functions
of other departments or agencies to the Office of the President.
Reorganization involves the reduction of personnel, consolidation of
offices or abolition thereof by reason of economy or redundancy of
functions.
- NPO is an agency that is a part of the Office of the Press Secretary, so is
a part of the Office of the President
- Sec 31 of Administrative Code of 1987 authorizes President:
o To restructure the internal organization of the Office of the
President proper, including the immediate offices, the President
Special Assistants/Advisers and the Common Staff Support
system, by abolishing, consolidating or merging units thereof or
transferring functions from one unit to another
o Transfer functions/offices from the Office of the President to any
other department or agency in the executive branch
- The president has the power to effect less radical or less substantive
changes to the functional and internal structure of the Office of the
President, including the modification of functions of such executive
agencies as the exigencies of the service may require
- No abolition of NPO nor a removal of any of its functions to be
transferred to another agency.
- NPO remains the main printing arm of the government, only a mere
alteration of NPO
- Specific provisions in general appropriations laws support Presidents
power to reorganize executive offices
o In present case, 2003 GAA (continued in 2004) gave the President
authority to effect a wide variety of organizational changes in any
department or agency in the executive branch
o The President has the power to implement structural, functional and
operational adjustments in the executive bureaucracy

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- Issuance of E.O. 378 by Pres. Arroyo an exercise of a delegated
legislative power granted by the aforementioned Sec 31 of Administrative
Code.
- Presidents legislative power to reorganize pertains only to the Office of
the President and departments, offices and agencies of the executive
branch, not including the Judiciary, the Legislature or the
constitutionally-created bodies
2. W/N E.O. 378 violates petitioners security of tenure because it paves the way
for gradual abolition of NPO. NO
- Petitioners failed to support claim that the limitation of NPOs budget
would lead to abolition or removal of employees from office
- Reorganization is based on good faith, so if it results in loss of security of
tenure of affected government employees, would be valid
o Buklod ng Kawaning EIIB v Zamora: No such thing as an absolute
right to hold office; no one can be said to have any vested right to
an office or salary

DISPOSITIVE PORTION
The petition is hereby DISMISSED and the prayer for TRO and/or a Writ of
Preliminary Injunction is hereby DENIED.

DOCTRINE
Sec 17, Art VII, 1987 Constitution:
The president shall have control of all executive departments, bureaus
and offices

RELEVANCE TO THE LESSON


The President has the power to reorganize the offices and agencies in the
executive department in line with the Presidents constitutionally granted power
of control over executive offices by virtue of previous delegation of the legislative
power to reorganize executive offices under existing statutes.

OTHER NOTES
1. Another issue in the case not in the syllabus: whether or not current case is a
class suit NO.
-Requisites of a class suit:
a. Subject matter of controversy is one of common or general interest to many
persons
b. The parties are so numerous that it is impossible to bring all of them to
Court

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c. The parties bringing the class suit are sufficiently numerous or
representative of the class and can fully protect the interests of those
concerned
-Only 67 of the 549 employees petitioned. Out of the 67, 32 of the original
petitioners executed an Affidavit of Desistance, and 1 wrote a letter denying
involvement. Only 20 have duly subscribed the petition before the notary
public. Therefore, only 20 employees have effectively instituted the case.
Where the interests of the plaintiffs and the other members of the class they
seek to represent are diametrically opposed, the suit will not prosper.

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