Compilation on

Administrative Law and Election Laws

2018 1S
Atty. Marivic Rimando
Table of Contents 2018-1S Administrative Law
Administrative Law. ...................................................................................................................... 4
Law on Public Officers ................................................................................................................. 4
Public Office............................................................................................................................... 4
Public Officer. ............................................................................................................................ 5
Powers and Duties of Public Officers .................................................................................... 5
CASES ON PUBLIC OFFICE ..................................................................................................... 8
Cases on Powers of Administrative Agencies........................................................................ 24
CASES ON SEPARATION OF POWERS AND LAW ON PUBLIC OFFICERS ............... 45
CASES ON ADMINISTRATIVE DISCIPLINE......................................................................... 57
PUBLIC OFFICE ......................................................................................................................... 72
Khan v. Ombudsman ................................................................................................................. 72
Quimpo v. Tanodbayan ............................................................................................................. 80
Eugenio v. CSC........................................................................................................................... 88
Buklod Ng Kawaning EIIB vs. Zamora .................................................................................... 99
Mendoza vs. Quisumbing ........................................................................................................ 114
The Provincial Government of Camarines Norte vs. Gonzales ......................................... 167
Fernandez vs. Sto. Tomas ...................................................................................................... 190
Republic v. Bacas ..................................................................................................................... 210
Yap v. Magtapon ....................................................................................................................... 230
Ampil v. Ombudsman ............................................................................................................... 245
Rimando v Naguilian Emission Center .................................................................................. 281
ADMINISTRATIVE POWERS ................................................................................................. 288
Hijo Plantation v. Central Bank of the Philippines ............................................................... 288
CIR v. Central Luzon Drug Corp. ........................................................................................... 297
Solid Homes v Payawal ................................................................................................................ 322
SOJ v Lantion ............................................................................................................................... 328
Heirs of Santiago Pastoral v SPW and Communications ............................................................. 370
GSIS v CSC .................................................................................................................................... 376
Besaga v Acosta ....................................................................................................................... 382
Pison Arceo Agricultural and Development Corp v NLRC ................................................. 394
Montemayor v Bundalian ......................................................................................................... 405
Evangelista v Jarencio ............................................................................................................. 412
Lastimosa v Vasquez ............................................................................................................... 428
Saunar v Executive Secretary ................................................................................................ 443
PPC v CA ................................................................................................................................... 461
Appendix A................................................................................................................................. 478
Appendix B................................................................................................................................. 933
Appendix C ................................................................................................................................ 968
Annotations .............................................................................................................................. 1112
Administrative Law.

That branch of public law which fixes the organization and determines
the competence of administrative authorities and indicates to the
individual remedies for the violation of his rights
It is that branch of public law under which the executive department
of the government, acting as a quasi-legislative or quasi-judicial
capacity, interferes with the conduct of the individual for the purpose
of promoting the well-being of the community, as under laws
regulating public interest, professions, trades and callings, rates and
prices, laws for the protection of public health and safety, and the
promotion of public convenience (Dean Roscoe, Growth of
Administrative Law, p. 110).

Administrative Bodies or Agencies

Organ of government, other than a court and other than a legislature,
which affects the rights of private parties either through adjudication
or rule-making. They are created either by: (1) constitutional
provision; (2) legislative enactment; or (3) authority of law.
Criterion: (1) It is regulatory even if it conducts hearings and
determines controversies to carry out its regulatory duty; (2) On rule-
making authority, it is administrative when it does not have discretion
to determine what the law shall be but merely prescribes details for
the enforcement of the law.

Law on Public Officers

Public Office. The right, authority or duty/, created and conferred by

law/, by which for a given period, either fixed by law or enduring at
the pleasure of the creating power, an individual is/ invested with
some sovereign power of government/ to be exercised by him for the
benefit of the public (Fernandez v Sto. Tomas, GR No. 116418,
March 7, 1995).
1. Elements: a) created by law or by authority of law; b) possess a
delegation of a portion of the sovereign powers of government,
to be exercised for the benefit of the public; c) powers conferred
and duties imposed must be defined, directly or impliedly, by
legislature or by legislative authority; d) duties must be
performed independently and without the control of a superior
 power other than the law, unless they be those of an inferior or
subordinate office created or authorized by the legislature, and
by it placed under the general control of a superior office or
body; and e) must have permanence or continuity.
2. Creation: Public offices are created by: a) Constitution; b) by
valid statutory enactments; and c) by authority of law

Public Officer.

Administrative Criminal Law Sec 2, RA

Law 3019
Anti Graft and
Corrupt
Practices Law
Public A person who Any person who, Includes
Officer holds a public by direct “elective and
office provision of law, appointive
popular election officials and
or appointment employees,
by competent permanent or
authority, shall temporary,
take part in the whether in the
performance of classified,
public functions unclassified or
in the Philippine exempt
government, or service1,
shall perform in receiving
said government compensation,
or in any of its even nominal,
branches, public from the
duties as an government
employee, agent 1PD 807, Civil Service
or subordinate Decree
official, of any
rank or class -
1
Art. 203, RPC

Powers and Duties of Public Officers

 A. Authority
The authority of public officers consists of those powers which
are: a) expressly conferred upon him by the act appointing him;
b) expressly annexed to the office by law; and c) attached to
the office by common law as incidents to it. Under the doctrine
of necessary implication, all powers necessary for the effective
exercise of the express powers are deemed impliedly granted.
It can only be exercised during the term when the public officer
is, by law, invested with the rights and duties of the office.
B. Ministerial and discretionary powers
Ministerial Discretionary
One the discharge of which by One imposed by law upon a public
the officer concerned is officer wherein the officer has the
imperative and requires neither right to decide how and when the
judgement nor discretion. It duty shall be performed. May not
may be compelled by be compelled by mandamus.1
1
mandamus Rimando v Naguillian Emission Testing Center
Judgement Discretion
A judicial function, the It is the faculty conferred upon a
determination of a question of court or other officer by which he
law. may decide the question either
way and still be right. It is limited
to the evident purpose of the act,
not arbitraty, capricious or
oppressive proceedings

Liability of Public Officers.

A. General Rule. A public officer is not liable for injuries sustained
by another as a consequence of official acts done within the
scope of his official authority, except as otherwise provided by
law.
B. Statutory Liability
Art 27, Civil Code Any person suffering from
moral or material loss because
a PO refuses or neglects,
without just cause, to perform
his official duty, may file an
action for damages and other
relief against the PO. This is
without prejudice to

Art 32, Civil Code
Art 34, Civil Code
Sec 38, Ch 9, Book I, Adm.
Code
C. Threefold Liability Rule. The wrongful acts or omissions of a PO
may give rise to civil, criminal and administrative liability.
administrative disciplinary
action against the officer.
Liability of PO for violation of
constitutional rights of
individuals1
Liability of peace officers who
fail to respond or give
assistance to persons in
danger of injury to life or
property. (Note: Municipal
corporation is subsidiarily
liable)
Any PO who, without just
cause, neglects to perform a
duty within a period fixed by
law or regulation, or within a
reasonable period if none is
fixed, shall be liable for
damages to the private party
concerned without prejudice to
such other liability as may be
prescribed by law
CASES ON PUBLIC OFFICE
• Meaning of Public Office

Ismael G. Khan, Jr. and Wenceslao L. Malabanan, vs. Office Of The

Ombudsman, Deputy Ombudsman (Visayas), Rosauro F. Torralba*
and Celestino Bandala, G.R. No. 125296, July 20, 2006
The most important characteristic which distinguishes an office from
an employment or contract is that the creation and conferring of an
office involves a delegation to the individual of some of the sovereign
functions of government to be exercised by him for the benefit of the
public; − that some portion of the sovereignty of the country, either
legislative, executive, or judicial, attaches, for the time being, to be
exercised for the public benefit. Unless the powers conferred are of
this nature, the individual is not a public officer. [Laurel v. Desierto,
430 Phil. 658 (2002) citing F.R. Mechem, A treatise on the Law of
Public Offices and Officers]

Quimpo v. Tanodbayan, 230 Phil. 232 (1986)

In this case, the Philippine National Oil Corporation (PNOC) acquired
PETROPHIL, a private corporation. Here, the Court declared that
PETROPHIL shed off its private status and became a subsidiary of
PNOC. Its officers, who were then accused of violating the Anti-Graft
and Corrupt Practices Act (RA 3019), were considered "public
officers" under the jurisdiction of the Tanodbayan (now Ombudsman).

• Creation and Abolition of Public Office

Eugenio v. Civil Service Commission, 243 SCRA 196 (1995)

"Except for such offices as are created by the Constitution, the
creation of a public offices is primarily a legislative function. In so far
as the legislative power in this respect is not restricted by
constitutional provisions, it is supreme, and the legislature may
decide for itself what offices are suitable, necessary, or convenient.
When in the exigencies of government it is necessary to create and
define duties, the legislative department has the discretion to
determine whether additional offices shall be created, or whether
these duties shall be attached to and become ex-officio duties of
existing offices. An office created by the legislature is wholly within
the power of that body, and it may prescribe the mode of filling the
office and the powers and duties of the incumbent, and, if it sees fit,
abolish the office."

Buklod Ng Kawaning EIIB, Cesar Posada, Remedios G. Princesa,

Benjamin Kho, Benigno Manga, Lulu Mendoza, Petitioners,
Vs. Hon. Executive Secretary Ronaldo B. Zamora, Hon. Secretary
Jose Pardo, Department Of Finance, Hon. Secretary Benjamin
Diokno, Department Of Budget and Management, Hon. Secretary
Artemio Tuquero, Department Of Justice, G.R. Nos. 142801-802
July 10, 2001

The general rule has always been that the power to abolish a public
office is lodged with the legislature [Eugenio v. Civil Service
Commission, 243 SCRA 196 (1995)] This proceeds from the legal
precept that the power to create includes the power to destroy. A
public office is either created by the Constitution, by statute, or by
authority of law. [Cruz, The Law of Public Officers, 1999 Ed., p. 4.]
Thus, except where the office was created by the Constitution itself, it
may be abolished by the same legislature that brought it into
existence. [Cruz, The Law of Public Officers, 1999 Ed., p. 199.]

The exception, however, is that as far as bureaus, agencies or offices

in the executive department are concerned, the President's power of
control may justify him to inactivate the functions of a particular office,
[Martin, Philippine Political Law, p. 276] or certain laws may grant him
the broad authority to carry out reorganization measures. [Larin v.
Executive Secretary, 280 SCRA 713 (1997)]

Dario vs. Mison, 176 SCRA 84 (1989)

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. In
that event no dismissal or separation actually occurs because the
position itself ceases to exist. And in that case the security of tenure
would not be a Chinese wall. Be that as it may, if the abolition which
is nothing else but a separation or removal, is done for political
reasons or purposely to defeat security of tenure, or otherwise not in
good faith, no valid abolition takes place and whatever abolition is
done is void ab initio. There is an invalid abolition as where there is
merely a change of nomenclature of positions or where claims of
economy are belied by the existence of ample funds.

Section 2 of R. A. No. 6656 lists down the circumstances evidencing

bad faith in the removal of employees as a result of the
reorganization, thus:

Sec. 2. No officer or employee in the career service shall be removed

except for a valid cause and after due notice and hearing. A valid
cause for removal exists when, pursuant to a bona fide
reorganization, a position has been abolished or rendered redundant
or there is a need to merge, divide, or consolidate positions in order
to meet the exigencies of the service, or other lawful causes allowed
by the Civil Service Law. The existence of any or some of the
following circumstances may be considered as evidence of bad faith
in the removals made as a result of the reorganization, giving rise to a
claim for reinstatement or reappointment by an aggrieved party:

a) Where there is a significant increase in the number of positions in

the new staffing pattern of the department or agency concerned;
b) Where an office is abolished and another performing substantially
the same functions is created;
c) Where incumbents are replaced by those less qualified in terms of
status of appointment, performance and merit;
d) Where there is a reclassification of offices in the department or
agency concerned and the reclassified offices perform substantially
the same functions as the original offices;
e) Where the removal violates the order of separation provided in
Section 3 hereof.
The Provincial Government of Camarines Norte, represented by
Governor Jesus O. Typoco, Jr., vs. Beatriz O. Gonzales, G.R. No.
185740, July 23, 2013
The right to hold a position, on the other hand, is a right that enjoys
constitutional and statutory guarantee, but may itself change
according to the nature of the position.
Security of tenure in public office simply means that a public officer or
employee shall not be suspended or dismissed except for cause, as
provided by law and after due process. It cannot be expanded to
grant a right to public office despite a change in the nature of the
office held.

To be sure, both career and non-career service employees have a

right to security of tenure.1âwphi1 All permanent officers and
employees in the civil service, regardless of whether they belong to
the career or non-career service category, are entitled to this
guaranty; they cannot be removed from office except for cause
provided by law and after procedural due process. [Jocom v. Judge
Regalado, 278 Phil. 83, 94 (1991), citing Tapales v. President and
Board of Regents of the University of the Philippines, 117 Phil. 561
(1963)]. The concept of security of tenure, however, labors under a
variation for primarily confidential employees due to the basic concept
of a "primarily confidential" position. Serving at the confidence of the
appointing authority, the primarily confidential employee’s term of
office expires when the appointing authority loses trust in the
employee. When this happens, the confidential employee is not
"removed" or "dismissed" from office; his term merely "expires"
[Ingles v. Mutuc, 135 Phil. 177, 182 (1968)] and the loss of trust and
confidence is the "just cause" provided by law that results in the
termination of employment.

Aida D. Eugenio vs. Civil Service Commission, Hon. Teofisto T.

Guingona, Jr. & Hon. Salvador Enriquez, Jr., G.R. No. 115863, March
31, 1995

Except for such offices as are created by the Constitution, the

creation of public offices is primarily a legislative function. In so far as
the legislative power in this respect is not restricted by constitutional
provisions, it supreme, and the legislature may decide for itself what
offices are suitable, necessary, or convenient. When in the
exigencies of government it is necessary to create and define duties,
the legislative department has the discretion to determine whether
additional offices shall be created, or whether these duties shall be
attached to and become ex-officio duties of existing offices. An office
created by the legislature is wholly within the power of that body, and
it may prescribe the mode of filling the office and the powers and
duties of the incumbent, and if it sees fit, abolish the office.

Respondent Commission's power to reorganize is limited to offices

under its control as enumerated in Section 16 of the Administrative
Code of 1987.

The essential autonomous character of the CESB is not negated by

its attachment to respondent Commission. By said attachment, CESB
was not made to fall within the control of respondent Commission.
Under the Administrative Code of 1987, the purpose of attaching one
functionally inter-related government agency to another is to attain
"policy and program coordination."
Salvador C. Fernandez and Anicia M. De Lima, vs. Hon. Patricia A.
Sto. Tomas, Chairman, and Hon. Ramon B. Ereneta, Commissioner,
Civil Service Commission, G.R. No. 116418 March 7, 1995

That security of tenure is an essential and constitutionally guaranteed

feature of our Civil Service System, is not open to debate. The mantle
of its protection extends not only against removals without cause but
also against unconsented transfer which, as repeatedly enunciatEd,
are tantamount to removals which are within the ambit of the
fundamental guarantee. However, the availability of that security of
tenure necessarily depends, in the first instance, upon the nature of
the appointment (Hojilla vs. Marino, 121 Phil. 280 [1965].) Such that
the rule which proscribes transfers without consent as anathema to
the security of tenure is predicated upon the theory that the officer
involved is appointed — not merely assigned — to a particular
station(Miclat v. Ganaden, et al., 108 Phil. 439 [1960]; Jaro v. Hon.
Valencia, et al., 118 Phil. 728 [1963]). [Brillantes v. Guevarra, 27
SCRA 138 (1969)] cited in Ibañez, et al. vs. Commission on
Elections, et al. (G.R. No. L-26558, April 27, 1967; 19 SCRA 1002
[1967]);

Mendoza vs. Quisumbing, 186 SCRA 108 (1990)

Cruz v. Primicias, Jr., Cruz, et al. v. Primicias, Jr., et al., 23 SCRA
998 [1968]
An abolition which is not bona-fide but is merely a device to
circumvent the constitutional security of tenure of civil service
employees is null and void.

De la Llana v. Alba (112 SCRA 294 [1982]

Nothing is better settled in our laws than that the abolition of an office
within the competence of a legitimate body if done in good faith
suffers from no infirmity. The ponencia of Justice J.B.L. Reyes in
Cruz v. Primicias, Jr. (23 SCRA 998) reiterated such a doctrine. 'We
find this point urged by respondents, to be without merit. No removal
or separation of petitioners from the service is here involved but the
validity of the abolition of their offices. This is a legal issue that is for
the courts to decide. It is a well-known rule also that valid abolition of
offices is neither removal nor separation of the incumbents. And of
course, if the abolition is void, the incumbent is deemed never to
have ceased to hold office....' As well-settled as the rule that the
abolition of an office does not amount to an illegal removal of its
incumbent is the principle that, in order to be valid, the abolition must
be made in good faith.

The principle earlier stated that the case of Jose v. Arroyo, G.R. No.
78435 has been superseded by the Palma-Fernandez v. dela Paz,
160 SCRA 751 (1988) and the Dario v. Mison, et al. (G.R. No. 81954,
August 8, 1989 cases to the effect that after February 2, 1987 civil
service eligibles in the government service enjoy the constitutional
right to security of tenure. The petitioners, therefore, can not be
removed by mere notices of termination, without due notice and
hearing and not knowing the valid grounds for the termination of their
services.

Ritual invocation of the abolition of an office is not sufficient to justify

the termination of the services of an officer or employee in such
abolished office. Abolition should be exercised in good faith, should
not be for personal or political reasons, and cannot be implemented
in a manner contrary to law. "Good faith, as a component of a
reorganization under a constitutional regime, is judged from the facts
of each case.' (Dario v. Mison, G.R. No. 81954, August 8, 1989
Security of tenure, together with the merit and fitness rule, is a basic
feature of the civil service scheme we have adopted in the
Philippines. If established principles protecting security of tenure are
to be disregarded or waived, this can be done only on the basis of
clear constitutional grounds.

Tiatco vs. CSC, 216 SCRA 749 (1992)

The right to appeal is merely a statutory right and may be exercised

only in the manner and in accordance with the provision of law. 5
Failure to do so will cause loss of the right to appeal. Even
administrative proceedings must end sometime, just as public
demands that finality be writen on judicial controversies.[Antique
Sawmills, Inc. v. Zayco, et al., L-20051, 17 SCRA 316 (1966)]

Where the findings of the administrative body are amply supported by

substantial evidence, such findings are accorded not only respect but
also finality. [Quinsay v. IAC, G.R. No. 67935, 195 SCRA 268
(1991)]

• The Administrative Code of 1987

Tañada vs. Tuvera, 146 SCRA 446, G.R. No. L-63915, April 24,
1985

While the general rule is that "a writ of mandamus would be granted
to a private individual only in those cases where he has some private
or particular interest to be subserved, or some particular right to be
protected, independent of that which he holds with the public at
large," and "it is for the public officers exclusively to apply for the writ
when public rights are to be subserved [Mithchell vs. Boardmen, 79
M.e., 469]," nevertheless, "when the question is one of public right
and the object of the mandamus is to procure the enforcement of a
public duty, the people are regarded as the real party in interest and
the relator at whose instigation the proceedings are instituted need
not show that he has any legal or special interest in the result, it being
sufficient to show that he is a citizen and as such interested in the
execution of the laws [High, Extraordinary Legal Remedies, 3rd ed.,
sec. 431].[ Severino vs. Governor General, 16 Phil. 366, 378.]
In a long line of decisions, Camacho vs. Court of Industrial Relations,
80 Phil 848; Mejia vs. Balolong, 81 Phil. 486; Republic of the
Philippines vs. Encamacion, 87 Phil. 843; Philippine Blooming Mills,
Inc. vs. Social Security System, 17 SCRA 1077; Askay vs. Cosalan,
46 Phil. 179.

Publication in the Official Gazette is necessary in those cases where

the legislation itself does not provide for its effectivity date-for then
the date of publication is material for determining its date of
effectivity, which is the fifteenth day following its publication-but not
when the law itself provides for the date when it goes into effect.
Pesigan vs. Angeles, 129 SCRA 174

"publication is necessary to apprise the public of the contents of

[penal] regulations and make the said penalties binding on the
persons affected thereby. " The cogency of this holding is apparently
recognized by respondent officials considering the manifestation in
their comment that "the government, as a matter of policy, refrains
from prosecuting violations of criminal laws until the same shall have
been published in the Official Gazette or in some other publication,
even though some criminal laws provide that they shall take effect
immediately.

Philippine Association Of Service Exporters, Inc., petitioner, vs. Hon.

Ruben D. Torres, as Secretary of the Department of Labor &
Employment, and Jose N. Sarmiento, as Administrator of the
Philippine Overseas Employment Administration, G.R. No. 101279,
August 6, 1992

Tañada vs. Tuvera, 146 SCRA 446

. . . Administrative rules and regulations must also be published if
their purpose is to enforce or implement existing law pursuant also to
a valid delegation. (p. 447.)

Interpretative regulations and those merely internal in nature, that is,

regulating only the personnel of the administrative agency and not the
public, need not be published. Neither is publication required of the
so-called letters of instructions issued by administrative superiors
concerning the rules or guidelines to be followed by their
subordinates in the performance of their duties. (p. 448.)

• Reorganization

Drianita Bagaoisan, Fely Madriaga, Shirly Tagaban, Ricardo Sarandi,

Susan Imperial, Benjamin Demdem, Rodolfo Daga, Edgardo Baclig,
Gregorio Labayan, Hilario Jerez, and Maria Corazon Cuanang vs.
National Tobacco Administration, represented by Antonio De
Guzman and Perlita Baula, G.R. No. 152845, August 5, 2003

"The general rule has always been that the power to abolish a public
office is lodged with the legislature. This proceeds from the legal
precept that the power to create includes the power to destroy. A
public office is either created by the Constitution, by statute, or by
authority of law. Thus, except where the office was created by the
Constitution itself, it may be abolished by the same legislature that
brought it into existence.

"The exception, however, is that as far as bureaus, agencies or

offices in the executive department are concerned, the President’s
power of control may justify him to inactivate the functions of a
particular office, or certain laws may grant him the broad authority to
carry out reorganization measures.

Dario v. Mison, 176 SCRA 84 (1989)

Reorganizations in this jurisdiction have been regarded as valid

provided they are 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. In that event, no
dismissal (in case of dismissal) or separation actually occurs because
the position itself ceases to exist. And in that case, security of tenure
would not be a Chinese wall. Be that as it may, if the 'abolition,' which
is nothing else but a separation or removal, is done for political
reasons or purposely to defeat security of tenure, otherwise not in
good faith, no valid 'abolition' takes and whatever 'abolition' is done,
is void ab initio. There is an invalid 'abolition' as where there is merely
a change of nomenclature of positions, or where claims of economy
are belied by the existence of ample funds.

Laurel v. Desierto, 430 Phil. 658 (2002)

Reorganization "involves the reduction of personnel, consolidation of

offices, or abolition thereof by reason of economy or redundancy of
functions." It takes place when there is an alteration of the existing
structure of government offices or units therein, including the lines of
control, authority and responsibility between them.

Aquilino T. Larin vs. The Executive Secretary, Secretary Of Finance,

Commissioner of The Bureau of Internal Revenue and the Committee
Created to Investigate the Administrative Complaint Against Aquilino
T. Larin, composed of Frumencio A. Lagustan, Jose B. Alejandrino
and Jaime M. Maza, G.R. No. 112745, October 16, 1997

The "power to remove is inherent in the power to appoint". Thus, it is

ineluctably clear that Memorandum Order No. 164, which created a
committee to investigate the administrative charge against petitioner,
was issued pursuant to the power of removal of the President. This
power of removal, however, is not an absolute one which accepts no
reservation. It must be pointed out that petitioner is a career service
officer. Under the Administrative Code of 1987, career service is
characterized by the existence of security of tenure, as contra-
distinguished from non-career service whose tenure is co-terminus
with that of the appointing authority or subject to his pleasure, or
limited to a period specified by law or to the duration of a particular
project for which purpose the employment was made. As a career
service officer, petitioner enjoys the right to security of tenure. No less
than the 1987 Constitution guarantees the right of security of tenure
of the employees of the civil service. Specifically,

Section 36 of P.D. No. 807, as amended, otherwise known as Civil

Service Decree of the Philippines

Career service officers and employees who enjoy security of tenure

may be removed only for any of the causes enumerated in said law.
In other words, the fact that petitioner is a presidential appointee does
not give the appointing authority the license to remove him at will or
at his pleasure for it is an admitted fact that he is likewise a career
service officer who under the law is the recipient of tenurial
protection, thus, may only be removed for a cause and in accordance
with procedural due process.

Since administrative cases are independent from criminal actions for

the same act or omission, the dismissal or acquittal of the criminal
charge does not foreclose the institution of administrative action nor
carry with it the relief from administrative liability. (Police Commission
vs. Lood, No. L-34230, March 31, 1980 , 96 SCRA 819; Office of the
Court Administrator vs. Enriquez, A.M. No. P-89-290, January 29,
1993, 218 SCRA 1)
The essence of due process in administrative proceedings is that a
party be afforded a reasonable opportunity to be heard and to submit
any evidence he may have in support of his defense. (Midas Touch
Food Corp. vs. NLRC, G.R. No. 111639, July 29, 1996, 259 SCRA
652)
Mecano vs COA, 216 SCRA 500 (1992)

The question of whether a particular law has been repealed or not by

a subsequent law is a matter of legislative intent. The lawmakers may
expressly repeal a law by incorporating therein a repealing provision
which expressly and specifically cites the particular law or laws, and
portions thereof, that are intended to be repealed. (School Dist. No.
45 vs. Board of County of Comira, 141 Kan. 108) A declaration in a
statute, usually in its repealing clause, that a particular and specific
law, identified by its number or title, is repealed is an express repeal;
all others are implied repeals. [Agpalo, Statutory Construction 289
(1986)]

Repeal by implication proceeds on the premise that where a statute

of later date clearly reveals an intention on the part of the legislature
to abrogate a prior act on the subject, that intention must be given
effect. [Posadas vs. National City Bank, 296 U.S. 497, 80 L. Ed. 351
(1935)] Hence, before there can be a repeal, there must be a clear
showing on the part of the lawmaker that the intent in enacting the
new law was to abrogate the old one. The intention to repeal must be
clear and manifest; [Maceda vs. Macaraig, 197 SCRA 771 (1991)].
otherwise, at least, as a general rule, the later act is to be construed
as a continuation of, and not a substitute for, the first act and will
continue so far as the two acts are the same from the time of the first
enactment. [Posadas vs. National City Bank, 296 U.S. 497, 80 L. Ed.
351 (1935)]

There are two categories of repeal by implication. The first is where

provisions in the two acts on the same subject matter are in an
irreconcilable conflict, the later act to the extent of the conflict
constitutes an implied repeal of the earlier one. The second is if the
later act covers the whole subject of the earlier one and is clearly
intended as a substitute, it will operate to repeal the earlier law. .
[Agpalo, Statutory Construction 289 (1986)]
Implied repeal by irreconcilable inconsistency takes place when the
two statutes cover the same subject matter; they are so clearly
inconsistent and incompatible with each other that they cannot be
reconciled or harmonized; and both cannot be given effect, that is,
that one law cannot be enforced without nullifying the other. [Villegas
vs. Subido, 41 SCRA 190 (1971)]

Subsequent statute is deemed to repeal a prior law if the former

revises the whole subject matter of the former statute. [People vs.
Almuete, 69 SCRA 410, 414 (1976)].

When both intent and scope clearly evidence the idea of a repeal,
then all parts and provisions of the prior act that are omitted from the
revised act are deemed repealed.[People vs. Benuya, 61 Phil. 208
(1916)].Furthermore, before there can be an implied repeal under this
category, it must be the clear intent of the legislature that the later act
be the substitute to the prior act. [Posadas vs. National City Bank,
296 U.S. 497, 80 L. Ed. 351 (1935)]

Administrative decisions may be reviewed by the courts upon a

showing that the decision is vitiated by fraud, imposition or mistake.
[Jaculina vs. National Police Commission, 200 SCRA 489 (1991);
Greenhills Mining Co. vs. Office of the President, 163 SCRA 350
(1988)]

Repeals of statutes by implication are not favoured. [National Power

Corporation vs. Hon. Zain B. Angas, G.R. Nos. 60225-26, May 8,
1992; Maceda vs. Macaraig, 197 SCRA 771 (1991); Maddumba vs.
Government Service Insurance System, 182 SCRA 281 (1990);
Larga vs. Ranada, Jr., 164 SCRA 18 (1988); De Jesus vs. People,
120 SCRA 760 (1983)]

The presumption is against inconsistency and repugnancy for the

legislature is presumed to know the existing laws on the subject and
not to have enacted inconsistent or conflicting statutes. [U.S. vs.
Palacio, 33 Phil. 208 (1916)]

"Repeals by implication are not favored, and will not be decreed

unless it is manifest that the legislature so intended. As laws are
presumed to be passed with deliberation with full knowledge of all
existing ones on the subject, it is but reasonable to conclude that in
passing a statute it was not intended to interfere with or abrogate any
former law relating to some matter, unless the repugnancy between
the two is not only irreconcilable, but also clear and convincing, and
flowing necessarily from the language used, unless the later act fully
embraces the subject matter of the earlier, or unless the reason for
the earlier act is beyond peradventure renewed. Hence, every effort
must be used to make all acts stand and if, by any reasonable
construction, they can be reconciled, the later act will not operate as
a repeal of the earlier. [Smith, Bell & Co. vs. Estate of Maronilla, 41
Phil. 557 (1916)]

• Decisions are Immediately Executory

Government Service Insurance System (GSIS), Vs. Civil Service

Commission, Heirs of Elizar Namuco, and Heirs of Eusebio Manuel,
G.R. No. 96938 October 15, 1991

Cucharo v. Subido, 37 SCRA 523, citing SEC. 35, Civil Service of Act
of 1959; Yarcia v. City of Baguio, 33 SCRA 419; Trocio v. Subido, 20
SCRA 354; Cabigao v. del Rosario, 6 SCRA 578 (1962); Austria v.
Auditor General, 19 SCRA 79, 83-84; Gonzales v. Hernandez, 2
SCRA 228, 233-234

As a major premise, it has been the repeated pronouncement of this

Supreme Tribunal that the Civil Service Commissioner has the
discretion to order the immediate execution in the public interest of
his decision separating petitioner-appellant from the service, always
sbuject however to the rule that, in the event the Civil Service Board
of Appeals or the proper court determines that his dismissal is illegal,
he should be paid the salary corresponding to the period of his
separation from the service until his reinstatement.
Death, however, has already sealed that outcome, foreclosing the
initiation of disciplinary administrative proceedings, or the
continuation of any then pending, against the deceased employees.
Whatever may be said of the binding force of the Resolution of July 4,
1988 so far as, to all intents and pursposes, it makes exoneration in
the adminstrative proceedings a condition precedent to payment of
back salaries, it cannot exact an impossible performance or decree a
useless exercise. Even in the case of crimes, the death of the
offender exteinguishes criminal liability, not only as to the personal,
but also as to the pecuniary, penalties if it occurs before final
judgment. [Article 89 (1), Revised Penal Code]

Augusto Toledo, vs. Civil Service Commission and Commission on

Elections, G.R. No. 92646-47, October 4, 1991

The power vested in the Civil Service Commission was to implement

the law or put it into effect, not to add to it; to carry the law into effect
or execution, not to supply perceived omissions in it. "By its
administrative regulations, of course, the law itself can not be
extended; said regulations 'cannot amend an act of Congress."
(Teoxon v. Members of the Board of Administrators, Philippine
Veterans Administration, 33 SCRA 585, 589 [1970], citing Santos v.
Estenzo, 109 Phil. 419 [1960]; see also, Animos v. Philippine
Veterans Affairs Office, 174 SCRA 214, 223-224 [1989] in turn citing
Teoxon).

• Next-in-Rank Rule

Quezon City, represented by the Honorable Brigido R. Simon, Jr., vs.

Civil Service Commission and Florentina E. Eleria, G.R. No. 92867,
June 3, 1991
Medenilla v. Civil Service Commission, G.R. No. 93868, 19 February
1991

. . . We have already held in cases subsequent to Millares that the

next-in-rank rule is not absolute; it only applies in cases of promotion
(see Pineda v. Claudio, 28 SCRA 34 [1969]). And even in
promotions, it can be disregarded for sound reasons made known to
the next-in-rank. The appointing authority, under the Civil Service
Law, is allowed to fill vacancies by promotion, transfer of present
employees, reinstatement, reemployment, and appointment of
outsiders who have appropriate civil service eligibility, not necessarily
in that order (see Pineda v. Claudio, supra; Luego v. Civil Service
Commission, 143 SCRA 327 [1986]). There is no legal fiat that a
vacancy must be filled only by promotion; the appointing authority is
given wide discretion to fill a vacancy from among the several
alternatives provided for by law. (Emphasis supplied)
The Court further notes that even if the vacancy here had been filled
by promotion rather than by lateral transfer, the concept of "next in
rank" does not import any mandatory or peremptory requirement that
the person next in rank must be appointed to the vacancy. What
Section 19 (3) of P.D. No. 807, the Civil Service Law, provides is that
if a vacancy is filled by a promotion, the person holding the position
next in rank thereto "shall be considered for promotion."

Taduran v. Civil Service Commission, 131 SCRA 66, 69 (1984),

The Court construed that phrase to mean that the person next in rank
"would be among the first to be considered for the vacancy, if
qualified.

Santiago, Jr. v. Civil Service Commission, 178 SCRA 733, 736

(1989),

One who is next-in-rank is entitled to preferential consideration for

promotion to the higher vacancy but it does not necessarily follow that
he and no one else can be appointed. The rule neither grants a
vested right to the holder nor imposes a ministerial duty on the
appointing authority to promote such person to the next higher
position. . . .

It appears to the Court that Section 4 of respondent Commission's

Resolution No. 83-343 which provided that:

Rule on Promotion

xxx xxx xxx

Section 4. An employee who holds a next in rank position who is

competent and qualified, possesses an appropriate civil service
eligibility and meets the other conditions for promotion shall be
promoted to the higher position, when it becomes vacant. (Emphasis
supplied)
has been superseded by Section 2 of Rule 3 of the respondent
Commission's subsequent Resolution No. 89-779 which reads as
follows:

B. Rules on Protest Cases

xxx xxx xxx

Rule III. Procedure in Filling Vacancies

xxx xxx xxx

Section 2. Positions in the Second Level. — When a vacancy occurs

in the second level of the career service as herein defined, the
employees in the department who occupy the next lower positions in
the occupational group under which the vacant position is classified,
and in other functionally related occupational groups, who are
competent and qualified and with appropriate civil service eligibility
shall be considered for appointment to the vacancy. (Emphasis
supplied)

Cases on Powers of Administrative Agencies

• Source of Power
Hijo Plantation, Inc. vs Central Bank, 164 SCRA 192 (1988)
Such regulations have uniformly been held to have the force of law,
whenever they are found to be in consonance and in harmony with
the general purposes and objects of the law. Such regulations once
established and found to be in conformity with the general purposes
of the law, are just as binding upon all the parties, as if the regulation
had been written in the original law itself (29 Phil. 119, Ibid). Upon the
other hand, should the regulation conflict with the law, the validity of
the regulation cannot be sustained (Director of Forestry vs. Muroz 23
SCRA 1183).

In case of discrepancy between the basic law and a rule or regulation

issued to implement said law, the basic law prevails because said
rule or regulation cannot go beyond the terms and provisions of the
basic law (People vs. Lim, 108 Phil. 1091). Rules that subvert the
statute cannot be sanctioned (University of Sto. Tomas v. Board of
Tax Appeals, 93 Phil. 376; Del Mar v. Phil. Veterans Administration,
51 SCRA 340). Except for constitutional officials who can trace their
competence to act to the fundamental law itself, a public official must
locate to the statute relied upon a grant of power before he can
exercise it. Department zeal may not be permitted to outrun the
authority conferred by statute (Radio Communications of the
Philippines, Inc. v. Santiago L-29236, August 21, 1974, 58 SCRA
493; cited in Tayug Rural Bank v. Central Bank, L-46158, November
28,1986,146 SCRA 120,130).
• Construction of Statutes Conferring Powers on Administrative
Agencies

Solid Homes, Inc. vs Payawal, 177 SCRA 72 (1989)

Statutes conferring powers on their administrative agencies must be

liberally construed to enable them to discharge their assigned duties
in accordance with the legislative purpose. (Cooper River
Convalescent Ctr., Inc. v. Dougherty, 356 A. 2d 55, 1975).

Following this policy in Antipolo Realty Corporation v. National

Housing Authority, 153 SCRA 399, the Court sustained the
competence of the respondent administrative body, in the exercise of
the exclusive jurisdiction vested in it by PD No. 957 and PD No. 1344,
to determine the rights of the parties under a contract to sell a
subdivision lot.

It is settled that any decision rendered without jurisdiction is a total

nullity and may be struck down at any time, even on appeal before
this Court. (Trinidad v. Yatco, 1 SCRA 866; Corominas, Jr. v. Labor
Standards Commission, 2 SCRA 721; Sebastian v. Gerardo, 2 SCRA
763; Buena v. Sapnay, 6 SCRA 706). The only exception is where
the party raising the issue is barred by estoppel (Tijam v.
Sibonghanoy, 23 SCRA 29; Philippine National Bank v. IAC, 143
SCRA 299; Tan Boon Bee & Company, Inc. v. Judge Jarencio, G.R.
No. 41337, June 30, 1988), which does not appear in the case before
us. On the contrary, the issue was raised as early as in the motion to
dismiss filed in the trial court by the petitioner, which continued to
plead it in its answer and, later, on appeal to the respondent court.
We have no choice, therefore, notwithstanding the delay this decision
will entail, to nullify the proceedings in the trial court for lack of
jurisdiction.
• Express and Implied Powers

Laguna Lake Development Authority vs CA, 2331 SCRA 292 (1994)

While it is a fundamental rule that an administrative agency has only

such powers as are expressly granted to it by law, it is likewise a
settled rule that an administrative agency has also such powers as
are necessarily implied in the exercise of its express powers
(Republic v. Court of Appeals, G.R. No. 90482, August 5, 1991, 200
SCRA 266; Guerzon v. Court of Appeals, et al. G.R. No. 77707,
August 8, 1988, 164 SCRA 182).

Ex parte cease and desist orders are permitted by law and

regulations in situations like that here presented precisely because
stopping the continuous discharge of pollutive and untreated effluents
into the rivers and other inland waters of the Philippines cannot be
made to wait until protracted litigation over the ultimate correctness or
propriety of such orders has run its full course, including multiple and
sequential appeals such as those which Solar has taken, which of
course may take several years. The relevant pollution control statute
and implementing regulations were enacted and promulgated in the
exercise of that pervasive, sovereign power to protect the safety,
health, and general welfare and comfort of the public, as well as the
protection of plant and animal life, commonly designated as the police
power. It is a constitutional commonplace that the ordinary
requirements of procedural due process yield to the necessities of
protecting vital public interests like those here involved, through the
exercise of police power. . . .( Pollution Adjudication Board v. Court of
Appeals, et al. G.R. No. 93891, March 11, 1991, 195 SCRA 112.)

Heirs of Santiago Pastoral v. Secretary of Public Works and

Communications, 162 SCRA 619 (1988)

The factual findings of the Secretary are substantiated by evidence in

the administrative records. In the absence of any illegality, error of
law, fraud or imposition, none of which were proved by the petitioners
in the instant case, said findings should be respected. (Lovina v.
Moreno, G.R. No. L-17821, November 29, 1963; Santos, etc., et al. v.
Secretary of Public Works and Communications, G.R. No. L-16949,
March 18, 1967; See also Borja v. Moreno, 11 SCRA 568; Taleon v.
Secretary of Public Works and Communications, G.R. No. L-24281,
May 16, 1967)

• Discretionary and Ministerial Powers

Rimando vs Naguilian Emission Testing Center, Inc., GR No.

198860, July 12, 2012
Roble Arrastre, Inc. v. Hon. Villaflor, 531 Phil. 30 (2006)

More importantly, a mayor cannot be compelled by mandamus to

issue a business permit since the exercise of the same is a delegated
police power hence, discretionary in nature. []

Section 444(b)(3)(iv) of the Local Government Code of 1991,

whereby the power of the respondent mayor to issue license and
permits is circumscribed, is a manifestation of the delegated police
power of a municipal corporation. Necessarily, the exercise thereof
cannot be deemed ministerial. As to the question of whether the
power is validly exercised, the matter is within the province of a writ of
certiorari, but certainly, not of mandamus.

Florendo vs Enrile, 239 SCRA 22 (1994)

The duty imposed upon the sheriff to execute the writ is ministerial,
not directory. A purely ministerial act or duty is one which an officer or
tribunal performs in a given state of facts, in a prescribed manner, in
obedience to the mandate of the legal authority, without regard to the
exercise of his own judgment.

• Investigatory Power

Secretary of Justice vs Lantion, 322 SCRA 160 (2000)

One of the basic principles of the democratic system is that where the
rights of the individual are concerned, the end does not justify the
means. It is not enough that there be a valid objective; it is also
necessary that the means employed to pursue it be in keeping with
the Constitution. Mere expediency will not excuse constitutional
shortcuts. There is no question that not even the strongest moral
conviction or the most urgent public need, subject only to a few
notable exceptions, will excuse the bypassing of an individual's rights.
It is no exaggeration to say that a person invoking a right guaranteed
under Article III of the Constitution is a majority of one even as
against the rest of the nation who would deny him that right
(Association of Small Landowners in the Philippines, Inc. vs.
Secretary of Agrarian Reform, 175 SCRA 343, 375-376 [1989]).

In a situation, however, where the conflict is irreconcilable and a

choice has to be made between a rule of international law and
municipal law, jurisprudence dictates that municipal law should be
upheld by the municipal courts (Ichong vs. Hernandez, 101 Phil. 1155
[1957]; Gonzales vs. Hechanova, 9 SCRA 230 [1963]; In re: Garcia, 2
SCRA 984 [1961]) for the reason that such courts are organs of
municipal law and are accordingly bound by it in all circumstances
(Salonga & Yap, Public International Law, 1992 ed., p. 13).

The basic principles of administrative law instruct us that "the

essence of due process in administrative proceeding is an
opportunity to explain one's side or an opportunity to seek
reconsideration of the actions or ruling complained of (Mirano vs.
NLRC, 270 SCRA 96 [1997]; Padilla vs. NLRC, 273 SCRA 457
[1997]; PLDT vs. NLRC, 276 SCRA 1 [1997]; Helpmate, Inc. vs.
NLRC, 276 SCRA 315 [1997]; Aquinas School vs. Magnaye, 278
SCRA 602 [1997]; Jamer vs. NLRC, 278 SCRA 632 [1997]).

Government Service Insurance System vs. Court of Appeals (201

SCRA 661 [1991]

. . . [I]t is clear to us that what the opening sentence of Section 40 is

saying is that an employee may be removed or dismissed even
without formal investigation, in certain instances. It is equally clear to
us that an employee must be informed of the charges preferred
against him, and that the normal way by which the employee is so
informed is by furnishing him with a copy of the charges against him.
This is a basic procedural requirement that a statute cannot dispense
with and still remain consistent with the constitutional provision on
due process. The second minimum requirement is that the employee
charged with some misfeasance or malfeasance must have a
reasonable opportunity to present his side of the matter, that is to
say, his defenses against the charges levelled against him and to
present evidence in support of his defenses. . . .

Said summary dismissal proceedings are also non-litigious in nature,

yet we upheld the due process rights of the respondent.

The constitutional issue in the case at bar does not even call for
"justice outside legality," since private respondent's due process
rights, although not guaranteed by statute or by treaty, are protected
by constitutional guarantees. We would not be true to the organic law
of the land if we choose strict construction over guarantees against
the deprivation of liberty. That would not be in keeping with the
principles of democracy on which our Constitution is premised.

Verily, as one traverses treacherous waters of conflicting and

opposing currents of liberty and government authority, he must ever
hold the oar of freedom in the stronger arm, lest an errant and
wayward course be laid.

Montemayor vs Bundalian, 405 SCRA 264 (2003)

The essence of due process in administrative proceedings is the

opportunity to explain one’s side or seek a reconsideration of the
action or ruling complained of. As long as the parties are given the
opportunity to be heard before judgment is rendered, the demands of
due process are sufficiently met. [Umali vs. Guingona, Jr., 305 SCRA
533 (2000); Audion Electric Co., Inc. vs. NLRC, 308 SCRA 340
(2000)]

In administrative proceedings, technical rules of procedure and

evidence are not strictly applied. Administrative due process cannot
be fully equated with due process in its strict judicial sense for it is
enough that the party is given the chance to be heard before the case
against him is decided. [Ocampo vs. Office of the Ombudsman, 322
SCRA 17 (2000)]

The basic principles in administrative investigations :

First, the burden is on the complainant to prove by substantial
evidence the allegations in his complaint [Lorena vs. Encomienda,
302 SCRA 632 (1999); Cortez vs. Agcaoili, 294 SCRA 423 (1998)]

Substantial evidence is more than a mere scintilla of evidence. It

means such relevant evidence as a reasonable mind might accept as
adequate to support a conclusion, even if other minds equally
reasonable might conceivably opine otherwise. [Enrique vs. Court of
Appeals, 229 SCRA 180 (1994)]

Second, in reviewing administrative decisions of the executive branch

of the government, the findings of facts made therein are to be
respected so long as they are supported by substantial evidence.
Hence, it is not for the reviewing court to weigh the conflicting
evidence, determine the credibility of witnesses, or otherwise
substitute its judgment for that of the administrative agency with
respect to the sufficiency of evidence.

Third, administrative decisions in matters within the executive

jurisdiction can only be set aside on proof of gross abuse of
discretion, fraud, or error of law. These principles negate the power of
the reviewing court to re-examine the sufficiency of the evidence in
an administrative case as if originally instituted therein, and do not
authorize the court to receive additional evidence that was not
submitted to the administrative agency concerned [Ramos vs.
Secretary of Agriculture and Natural Resources, 55 SCRA 330
(1974)]

The doctrine of res judicata applies only to judicial or quasi-judicial

proceedings, not to the exercise of administrative powers. [Dinsay vs.
Cioco, 264 SCRA 703 (1996)]

Evangelista vs Jarencio, G.R. No. L-29274 November 27, 1975

The life blood of the administrative process is the flow of fact, the
gathering, the organization and the analysis of evidence.
(Administrative Law, Jaffe and Nathanson, 1961 ed., 491).

Investigations are useful for all administrative functions, not only for
rule making, adjudication, and licensing, but also for prosecuting, for
supervising and directing, for determining general policy, for
recommending, legislation, and for purposes no more specific than
illuminating obscure areas to find out what if anything should be
done. (Pope & Talbot, Inc. v. Smith, 340 P. 2d 964, citing 1 Davis
Administrative Law Treatise, 160) An administrative agency may be
authorized to make investigations, not only in proceedings of a
legislative or judicial nature, but also in proceedings whose sole
purpose is to obtain information upon which future action of a
legislative or judicial nature may be taken 9 and may require the
attendance of witnesses in proceedings of a purely investigatory
nature. It may conduct general inquiries into evils calling for
correction, and to report findings to appropriate bodies and make
recommendations for actions. (Marchitto v. Waterfront Commission of
New York Harbor, 160 A 2d 832)

Administrative agencies may enforce subpoenas issued in the course

of investigations, whether or not adjudication is involved, and whether
or not probable cause is shown. (1 Davis, Administrative Law
Treatise 171) and even before the issuance of a complaint. [NLRB v.
Anchor Rome Mills, Inc., 197 F. 2d 447 (5th Cir. 1952)]. It is not
necessary, as in the case of a warrant, that a specific charge or
complaint of violation of law be pending or that the order be made
pursuant to one. It is enough that the investigation be for a lawfully
authorized purpose. [18 Oklahoma Press Pub. Co. v. Walling, 327 US
185 (1946)]. The purpose of the subpoena is to discover evidence,
not to prove a pending charge, but upon which to make one if the
discovered evidence so justifies. [SEC v. Vacuum Can Co., 157 F. 2d
530, cert den 330 US 820 (1947)]. Its obligation cannot rest on a trial
of the value of testimony sought; it is enough that the proposed
investigation be for a lawfully authorized purpose, and that the
proposed witness be claimed to have information that might shed
some helpful light. (Marchitto v. Waterfront Commission of New York
Harbor, 160 A 2d 832). Because judicial power is reluctant if not
unable to summon evidence until it is shown to be relevant to issues
on litigations it does not follow that an administrative agency charged
with seeing that the laws are enforced may not have and exercise
powers of original inquiry. The administrative agency has the power
of inquisition which is not dependent upon a case or controversy in
order to get evidence, but can investigate merely on suspicion that
the law is being violated or even just because it wants assurance that
it is not. When investigative and accusatory duties are delegated by
statute to an administrative body, it, too may take steps to inform
itself as to whether there is probable violation of the law. [United
States v. Morton Salt Co., 338 US 632 (1950), abandoning the
Harriman, 211 US 407; (1908) and American Tobacco, 264 US 298;
(1924) doctrine against "fishing expedition"]

In sum, it may be stated that a subpoena meets the requirements for

enforcement if the inquiry is (1) within the authority of the agency; (2)
the demand is not too indefinite; and (3) the information is reasonably
relevant. [Adams v. FTC 296 F, 2d 861, cert den 369 US 864 (1962)]

We are mindful that the privilege against self-incrimination extends in

administrative investigations, generally, in scope similar to adversary
proceedings. (Rights of Witnesses in Administrative Investigations, 54
Harv. L. Rev. 1214)

Cabal v. Kapunan, Jr., L-19052, 29 Dec. 1962, 6 SCRA 1064

Since the administrative charge of unexplained wealth against the

respondent therein may result in the forfeiture of the property under
the Anti-Graft and Corrupt Practices Act, a proceeding criminal or
penal in nature, the complainant cannot call the respondent to the
witness stand without encroaching upon his constitutional privilege
against self-incrimination.

Pascual, Jr. v. Board of Medical Examiners, L-25018, 26 May 1969,

28 SCRA 345

the same approach was followed in the administrative proceedings

against a medical practitioner that could possibly result in the loss of
his privilege to practice the medical profession. Nevertheless, in the
present case, We find that respondent Fernando Manalastas is not
facing any administrative charge. He is merely cited as a witness in
connection with the fact-finding investigation of anomalies and
irregularities in the City Government of Manila with the object of
submitting the assembled facts to the President of the Philippines or
to file the corresponding charges. Since the only purpose of
investigation is to discover facts as a basis of future action, any
unnecessary extension of the privilege would thus be unwise. (Rights
of Witnesses in Administrative Investigations, 54 Harv. L. Rev. 1214).
Anyway, by all means, respondent Fernando Manalastas may contest
any attempt in the investigation that tends to disregard his privilege
against self-incrimination.

For reasons of public policy, the constitutionality of executive orders,

which are commonly said to have the force and effect of statutes. (US
v. Borja, 191 F. Supp 563, 566; Farkas vs. Texas Instrument, Inc.,
375 F. 2d 629, 632, dert den 389 US 977) cannot be collaterally
impeached. (San Miguel Brewery, Inc. vs. Magno, L-21879, 29 Sept.
1967, 21 SCRA 297). Much more when the issue was not duly
pleaded in the court below as to be acceptable for adjudication now.
(Modern Constitutional Law, Antieau 1969 ed., 648). The settled rule
is that the Court will not anticipate a question of constitutional law in
advance of the necessity of deciding it. [Petite vs. United States, 361
US 529 (1960)]

Carmelo vs Ramos, 116 Phil 1152 (1962)

The rule is that Rule 64 (Contempt)1 of the Rules of Court applies

only to inferior and superior courts and does not comprehend
contempt committed against administrative officials or bodies like the
one in this case, unless said contempt is clearly considered and
expressly defined as contempt of court, as is done in paragraph 2 of
Section 580 of the Revised Administrative Code. (People v.
Mendoza; People v. Dizon, 49 O. G. No. 2, 541.)

Francia v. Pecson, et al., 87 Phil. 100

One who invokes this provision of the law must first show that he has
"authority to take testimony or evidence" before he can apply to the
courts for the punishment of hostile witnesses.

"Were (sic) do not think the mayor (of Manila) can delegate or confer
the powers to administer oaths, to take testimony, and to issue
subpoenas."

Magsangcay vs COMELEC, 6 SCRA 27 (1962)

The power to punish for contempt is inherent in all courts; its
existence is essential to the preservation of order in judicial
proceedings, and to the enforcement of judgments, orders and
mandates courts, and, consequently, in the administration of justice
(Slade Perkins v. Director of Prisons, 58 Phil., 271; U.S. v. Lee Hoc,
36 Phil., 867; In Re Sotto, 46 O.G., 2570; In Re Kelly, Phil., 944). The
exercise of this power has always been regarded as a necessary
incident and attribute of courts (Slade Perkins v. Director of Prisons,
58 Phil., 271).

Its exercise by administrative bodies has been invariably limited to

making effective the power to elicit testimony (People v. Swena, 296
P., 271).

And the exercise of that power by an administrative body in

furtherance of its administrative function has been held invalid
(Langenberg v. Lecker, 31 N.E., 190; In Re Sims, 37 P., 135; Roberts
v. Hacney, 58 SW., 810).

Gaoiran vs Alcala, 444 SCRA 428 (2005) – Anonymous complaints

It is not totally uncommon that a government agency is given a wide

latitude in the scope and exercise of its investigative powers. After all,
in administrative proceedings, technical rules of procedure and
evidence are not strictly applied. Montemayor v. Bundallan, 405
SCRA 264 (2003).

Civil Service Commission v. Court of Appeals, G.R. No. 147009,

March 11, 2004.

the "complaint" under E.O. No. 292 and CSC rules on administrative
cases "both refer to the actual charge to which the person
complained of is required to answer and indicate whether or not he
elects a formal investigation should his answer be deemed not
satisfactory."

What is repugnant to due process is the denial of the opportunity to

be heard. Escleo v. Dorado, 385 SCRA 554 (2002).

• Quasi-Legislative/Rule-Making Power
Pharmaceutical and Health Care Association of the Philippines vs
Duque, 535 SCRA 265 (2007)
Equi-Asia Placement, Inc. vs. Department of Foreign Affairs, G.R. No.
152214, September 19, 2006:

x x x [T]his Court had, in the past, accepted as sufficient standards

the following: "public interest," "justice and equity," "public
convenience and welfare," and "simplicity, economy and welfare."

An administrative agency like respondent possesses quasi-legislative

or rule-making power or the power to make rules and regulations
which results in delegated legislation that is within the confines of the
granting statute and the Constitution, and subject to the doctrine of
non-delegability and separability of powers. [Smart Communications,
Inc. v. National Telecommunications Commission, 456 Phil. 145, 155-
156 (2003)].

Such express grant of rule-making power necessarily includes the

power to amend, revise, alter, or repeal the same. (Yazaki Torres
Manufacturing, Inc. v. Court of Appeals, G.R. No. 130584, June 27,
2006, 493 SCRA 86, 97) This is to allow administrative agencies
flexibility in formulating and adjusting the details and manner by
which they are to implement the provisions of a law [Smart
Communications, Inc. v. National Telecommunications Commission,
456 Phil. 156 (2003)] in order to make it more responsive to the
times. Hence, it is a standard provision in administrative rules that
prior issuances of administrative agencies that are inconsistent
therewith are declared repealed or modified.

Philippine National Oil Co. vs CA, 457 SCRA 32 (2001)

When there appears to be an inconsistency or conflict between two

statutes and one of the statutes is a general law, while the other is a
special law, then repeal by implication is not the primary rule
applicable. The following rule should principally govern instead:

Specific legislation upon a particular subject is not affected by a

general law upon the same subject unless it clearly appears that the
provisions of the two laws are so repugnant that the legislators must
have intended by the later to modify or repeal the earlier legislation.
The special act and the general law must stand together, the one as
the law of the particular subject and the other as the general law of
the land. (Ex Parte United States, 226 U. S., 420; 57 L. ed., 281; Ex
Parte Crow Dog, 109 U. S., 556; 27 L. ed., 1030; Partee vs. St. Louis
& S. F. R. Co., 204 Fed. Rep., 970.)

Lichauco & Company, Inc. v. Apostol, et al., 44 Phil 138, 146-147

(1922).

Where there are two acts or provisions, one of which is special and
particular, and certainly includes the matter in question, and the other
general, which, if standing alone, would include the same matter and
thus conflict with the special act or provision, the special must be
taken as intended to constitute an exception to the general act or
provision, especially when such general and special acts or
provisions are contemporaneous, as the Legislature is not to be
presumed to have intended a conflict. (Crane v. Reeder and Reeder,
22 Mich., 322, 334; University of Utah vs. Richards, 77 Am. St. Rep.,
928.)

It has, thus, become an established rule of statutory construction that

between a general law and a special law, the special law prevails –
Generalia specialibus non derogant. [Manila Railroad Co. v. Rafferty,
40 Phil 224 (1919)]

Sustained herein is the contention of private respondent Savellano

that P.D. No. 242 is a general law that deals with administrative
settlement or adjudication of disputes, claims and controversies
between or among government offices, agencies and
instrumentalities, including government-owned or controlled
corporations. Its coverage is broad and sweeping, encompassing all
disputes, claims and controversies. It has been incorporated as
Chapter 14, Book IV of E.O. No. 292, otherwise known as the
Revised Administrative Code of the Philippines. (National Power
Corporation v. Hon. Presiding Judge, RTC, Br. XXV, G.R. No. 72477,
16 October 1990, 190 SCRA 477)

On the other hand, Rep. Act No. 1125 is a special law [Mison v.
Natividad, G.R. No. 82586, 11 September 1992, 213 SCRA 734;
Marubeni Corporation v. Commissioner of Internal Revenue, G.R. No.
76573, 14 September 1989, 177 SCRA 500; Papa, et al. v. Mago, et
al., 130 Phil 886 (1968)] dealing with a specific subject matter – the
creation of the CTA, which shall exercise exclusive appellate
jurisdiction over the tax disputes and controversies enumerated
therein.

Following the rule on statutory construction involving a general and a

special law previously discussed, then P.D. No. 242 should not affect
Rep. Act No. 1125. Rep. Act No. 1125, specifically Section 7 thereof
on the jurisdiction of the CTA, constitutes an exception to P.D. No.
242. Disputes, claims and controversies, falling under Section 7 of
Rep. Act No. 1125, even though solely among government offices,
agencies, and instrumentalities, including government-owned and
controlled corporations, remain in the exclusive appellate jurisdiction
of the CTA. Such a construction resolves the alleged inconsistency
or conflict between the two statutes, and the fact that P.D. No. 242 is
the more recent law is no longer significant.

Even if, for the sake of argument, that P.D. No. 242 should prevail
over Rep. Act No. 1125, the present dispute would still not be
covered by P.D. No. 242. Section 1 of P.D. No. 242 explicitly
provides that only disputes, claims and controversies solely between
or among departments, bureaus, offices, agencies, and
instrumentalities of the National Government, including constitutional
offices or agencies, as well as government-owned and controlled
corporations, shall be administratively settled or adjudicated. While
the BIR is obviously a government bureau, and both PNOC and PNB
are government-owned and controlled corporations, respondent
Savellano is a private citizen. His standing in the controversy could
not be lightly brushed aside. It was private respondent Savellano
who gave the BIR the information that resulted in the investigation of
PNOC and PNB; who requested the BIR Commissioner to reconsider
the compromise agreement in question; and who initiated CTA Case
No. 4249 by filing a Petition for Review.

Hilado v. Collector of Internal Revenue, et al., 100 Phil 288 (1956)

An administrative officer, such as the BIR Commissioner, may

revoke, repeal or abrogate the acts or previous rulings of his
predecessor in office. The construction of a statute by those
administering it is not binding on their successors if, thereafter, the
latter becomes satisfied that a different construction should be given.

As a general rule, the Government cannot be estopped from

collecting taxes by the mistake, negligence, or omission of its agents
[Atlas Consolidated Mining and Development Corp. v. Commissioner
of Internal Revenue, G.R. No. L-26911, 27 January 1981, 102 SCRA
246; Philippine Guaranty Company, Inc. v. Commissioner of Internal
Revenue, et al., 121 Phil 755 (1965)]
because:
. . . Upon taxation depends the Government ability to serve the
people for whose benefit taxes are collected. To safeguard such
interest, neglect or omission of government officials entrusted with
the collection of taxes should not be allowed to bring harm or
detriment to the people, in the same manner as private persons may
be made to suffer individually on account of his own negligence, the
presumption being that they take good care of their personal affairs.
This should not hold true to government officials with respect to
matters not of their own personal concern. This is the philosophy
behind the government's exception, as a general rule, from the
operation of the principle of estoppel. (Republic vs. Caballero, L-
27437, September 30, 1977, 79 SCRA 177; Manila Lodge No. 761,
Benevolent and Protective Order of the Elks, Inc. vs. Court of
Appeals, L-41001, September 30, 1976, 73 SCRA 162; Sy vs.
Central Bank of the Philippines, L-41480, April 30, 1976, 70 SCRA
571; Balmaceda vs. Corominas & Co., Inc., 66 SCRA 553; Auyong
Hian vs. Court of Tax Appeals, 59 SCRA 110; Republic vs. Philippine
Rabbit Bus Lines, Inc., 66 SCRA 553; Republic vs. Philippine Long
Distance Telephone Company, L-18841, January 27, 1969, 26 SCRA
620; Zamora vs. Court of Tax Appeals, L-23272, November 26, 1970,
36 SCRA 77; E. Rodriguez, Inc. vs. Collector of Internal Revenue, L-
23041, July 31, 1969, 28 SCRA 119).
Commissioner of Internal Revenue vs Central Luzon Drug
Corporation, 456 SCRA 414 (2005)

The law cannot be amended by a mere regulation. In fact, a

regulation that "operates to create a rule out of harmony with the
statute is a mere nullity" [Commissioner of Internal Revenue v. Vda.
de Prieto, 109 Phil. 592, 597, September 30, 1960, per Gutierrez
David, J. (citing Miller v. US, 294 US 435, 439-441, 55 S.Ct. 440,442,
March 4, 1935; and Lynch v. Tilden Produce Co., 265 US 315, 321-
322, 44 S.Ct. 488, 490, May 26, 1924)], it cannot prevail.

It is a cardinal rule that courts "will and should respect the

contemporaneous construction placed upon a statute by the
executive officers whose duty it is to enforce it x x x." [Molina v.
Rafferty, 37 Phil. 545, 555, February 1, 1918, per Malcolm, J. (citing
Government ex rel. Municipality of Cardona v. Municipality of
Binangonan, 34 Phil. 518, 520-521, March 29, 1916; In re Allen, 2
Phil. 630, 640, October 29, 1903; and Pennoyer v. McConnaughy, 11
S.Ct. 699, 706, April 20, 1891)]In the scheme of judicial tax
administration, the need for certainty and predictability in the
implementation of tax laws is crucial. [Lim Hoa Ting v. Central Bank
of the Philippines, 104 Phil. 573, 580, September 24, 1958 (citing
Griswold,A Summary of the Regulations Problem, 54 Harvard Law
Review 3, 398, 406, January 1941)]. Our tax authorities fill in the
details that "Congress may not have the opportunity or competence
to provide." (Eastern Shipping Lines, Inc. v. Philippine Overseas
Employment Administration, 166 SCRA 533, 544, October 18, 1988).
The regulations these authorities issue are relied upon by taxpayers,
who are certain that these will be followed by the courts. (Lim Hoa
Ting v. Central Bank of the Philippines, 104 Phil. 573, 580) Courts,
however, will not uphold these authorities’ interpretations when
clearly absurd, erroneous or improper.

The administrative agency issuing these regulations may not enlarge,

alter or restrict the provisions of the law it administers; it cannot
engraft additional requirements not contemplated by the legislature.
(Pilipinas Kao, Inc. v. CA, 423 Phil. 834, 858, December 18, 2001)

In case of conflict, the law must prevail, (Wise & Co., Inc. v. Meer, 78
Phil. 655, 676, June 30, 1947) A "regulation adopted pursuant to law
is law." (Macailing v. Andrada, 31 SCRA 126, 139, January 30, 1970)
Conversely, a regulation or any portion thereof not adopted pursuant
to law is no law and has neither the force nor the effect of law. (Banco
Filipino Savings and Mortgage Bank v. Hon. Navarro, 158 SCRA 346,
354, July 28, 1987; andValerio v. Secretary of Agriculture & Natural
Resources, 117 Phil. 729, 733, April 23, 1963)
Where the words of a statute are clear, plain and free from ambiguity,
it must be given its literal meaning and applied without attempted
interpretation." [National Federation of Labor v. NLRC, 383 Phil. 910,
918, March 2, 2000, per De Leon Jr., J. (quotingFianza v. People’s
Law Enforcement Board, 243 SCRA 165, 178, March 31, 1995]

x x x [T]he rule is that on a specific matter the special law shall prevail
over the general law, which shall be resorted to only to supply
deficiencies in the former." (Leyte Asphalt & Mineral Oil Co., Ltd. v.
Block, Johnston & Greenbaum, 52 Phil. 429, 432, December 14,
1928). In addition, "[w]here there are two statutes, the earlier special
and the later general -- the terms of the general broad enough to
include the matter provided for in the special -- the fact that one is
special and the other is general creates a presumption that the
special is to be considered as remaining an exception to the general,
(City Mayor v. The Chief Police Constabulary, 128 Phil. 674, 687,
October 31, 1967) one as a general law of the land, the other as the
law of a particular case." [Manila Railroad Co. v. Rafferty, 40 Phil.
224, 229, September 30, 1919, per Johnson, J. (citing State v. Stoll,
84 US 425, 431, 436, 17 Wall. 425, 431, 436, October term, 1873)] "It
is a canon of statutory construction that a later statute, general in its
terms and not expressly repealing a prior special statute, will
ordinarily not affect the special provisions of such earlier statute."
[Manila Railroad Co. v. Rafferty, 40 Phil. 224, 229, September 30,
1919, per Johnson, J. (citing Minnesota v. Hitchcock, 185 US, 373,
396-397, 22 S.Ct. 650, 659, May 5, 1902, Cass County v. Gillett, 100
US 585, 593, 10 Otto 585, 593, October term, 1879; and New Jersey
Steamboat Co. v. Collector, 85 US 478, 490-491, 18 Wall 478, 490-
491, October term, 1873)]

• Conditions for Validity of Delegated Legislation

Eastern Shipping Lines vs POEA, 166 SCRA 533 (1988)

There are two accepted tests to determine whether or not there is a

valid delegation of legislative power, viz, the completeness test and
the sufficient standard test. Under the first test, the law must be
complete in all its terms and conditions when it leaves the legislature
such that when it reaches the delegate the only thing he will have to
do is enforce it. (People v. Vera 65 Phil. 56) Under the sufficient
standard test, there must be adequate guidelines or stations in the
law to map out the boundaries of the delegate's authority and prevent
the delegation from running riot. (Cervantes v. Auditor General, 91
Phil. 359; People v. Rosen that 68 Phil. 328)

Both tests are intended to prevent a total transference of legislative

authority to the delegate, who is not allowed to step into the shoes of
the legislature and exercise a power essentially legislative.

The principle of non-delegation of powers is applicable to all the three

major powers of the Government but is especially important in the
case of the legislative power because of the many instances when its
delegation is permitted. The occasions are rare when executive or
judicial powers have to be delegated by the authorities to which they
legally certain. In the case of the legislative power, however, such
occasions have become more and more frequent, if not necessary.
This had led to the observation that the delegation of legislative
power has become the rule and its non-delegation the exception.

The reason is the increasing complexity of the task of government

and the growing inability of the legislature to cope directly with the
myriad problems demanding its attention. The growth of society has
ramified its activities and created peculiar and sophisticated problems
that the legislature cannot be expected reasonably to comprehend.
Specialization even in legislation has become necessary. To many of
the problems attendant upon present-day undertakings, the
legislature may not have the competence to provide the required
direct and efficacious, not to say, specific solutions. These solutions
may, however, be expected from its delegates, who are supposed to
be experts in the particular fields assigned to them.

Parenthetically, it is recalled that this Court has accepted as sufficient

standards "Public interest" in People v. Rosenthal 68 Phil. 328,
"justice and equity" in Antamok Gold Fields v. CIR, 70 Phil. 340,
"public convenience and welfare" in Calalang v. Williams, 70 Phil.
726, and "simplicity, economy and efficiency" in Cervantes v. Auditor
General, 91 Phil. 359, to mention only a few cases. In the United
States, the "sense and experience of men" was accepted in Mutual
Film Corp. v. Industrial Commission, 236 U.S. 247, and "national
security" in Hirabayashi v. United States, 320 U.S. 99.
People vs Vera, 65 Phil 56 (1937)

In testing whether a statute constitute an undue delegation of

legislative power or not, it is usual to inquire whether the statute was
complete in all its terms and provisions when it left the hands of the
legislature so that nothing was left to the judgment of any other
appointee or delegate of the legislature. (6 R. C. L., p. 165.) In the
United States vs. Ang Tang Ho ([1922], 43 Phil., 1), this court
adhered to the foregoing rule when it held an act of the legislature
void in so far as it undertook to authorize the Governor-General, in
his discretion, to issue a proclamation fixing the price of rice and to
make the sale of it in violation of the proclamation a crime. (See and
cf. Compañia General de Tabacos vs. Board of Public Utility
Commissioners [1916], 34 Phil., 136.) The general rule, however, is
limited by another rule that to a certain extent matters of detail may
be left to be filled in by rules and regulations to be adopted or
promulgated by executive officers and administrative boards. (6 R. C.
L., pp. 177-179.)

The rules governing delegation of legislative power to administrative

and executive officers are applicable or are at least indicative of the
rule which should be here adopted. An examination of a variety of
cases on delegation of power to administrative bodies will show that
the ratio decidendi is at variance but, it can be broadly asserted that
the rationale revolves around the presence or absence of a standard
or rule of action — or the sufficiency thereof — in the statute, to aid
the delegate in exercising the granted discretion. In some cases, it is
held that the standard is sufficient; in others that is insufficient; and in
still others that it is entirely lacking. As a rule, an act of the legislature
is incomplete and hence invalid if it does not lay down any rule or
definite standard by which the administrative officer or board may be
guided in the exercise of the discretionary powers delegated to it.
(See Schecter vs. United States [1925], 295 U. S., 495; 79 L. ed.,
1570; 55 Sup. Ct. Rep., 837; 97 A.L.R., 947; People ex rel. Rice vs.
Wilson Oil Co. [1936], 364 Ill., 406; 4 N. E. [2d], 847; 107 A.L.R.,
1500 and cases cited. See also R. C. L., title "Constitutional Law",
sec 174.)
"The true distinction", says Judge Ranney, "is between the delegation
of power to make the law, which necessarily involves a discretion as
to what it shall be, and conferring an authority or discretion as to its
execution, to be exercised under and in pursuance of the law. The
first cannot be done; to the latter no valid objection can be made."
(Cincinnati, W. & Z. R. Co. vs. Clinton County Comrs. [1852]; 1 Ohio
St., 77, 88. See also, Sutherland on Statutory Construction, sec 68.)
To the same effect are the decision of this court in Municipality of
Cardona vs. Municipality of Binangonan ([1917], 36 Phil., 547); Rubi
vs. Provincial Board of Mindoro ([1919],39 Phil., 660) and Cruz vs.
Youngberg ([1931], 56 Phil., 234).

Cebu Institute of Technology vs Ople, 156 SCRA 692 (1987) –

Binding force and effect – Borja

Rules and regulations promulgated in accordance with the power

conferred by law would have the force and effect of law [Victorias
Milling Company, Inc. v. Social Security Commission, 114 Phil. 555
(1962)] if the same are germane to the subjects of the legislation and
if they conform with the standards prescribed by the same law
[People v. Maceren, G.R. No. L-32166, October 18, 1977, 79 SCRA
450]. Since the implementing rules and regulations cited by the
private schools adds allowances and other benefits to the items
included in the allocation of 60% of the proceeds of tuition fee
increases expressly provided for by law, the same were issued in
excess of the rule-making authority of said agency, and therefore
without binding effect upon the courts. At best the same may be
treated as administrative interpretations of the law and as such, they
may be set aside by this Court in the final determination of what the
law means.

The statutory grant of rule-making power to administrative agencies

like the Secretary of Education is a valid exception to the rule on non-
delegation of legislative power provided two conditions concur,
namely: 1) the statute is complete in itself, setting forth the policy to
be executed by the agency, and 2) said statute fixes a standard to
which the latter must conform [Vigan Electric Light Co., Inc. v. Public
Service Commission, G.R. No. L-19850, January 30, 1964, and
Pelaez v. Auditor General, G. R. No. L-23825, December 24, 1965].
While a day in court is a matter of right in judicial proceedings, in
administrative proceedings it is otherwise since they rest upon
different principles." [Cornejo v. Gabriel and Provincial Board of Rizal,
41 Phil. 188 (1920); Tajonera v. Lamaroza, G.R. Nos. L-48907 and L-
49035, December 19,1981, 110 SCRA 438].

CASES ON SEPARATION OF POWERS AND LAW ON PUBLIC

OFFICERS
Separation of Powers

Belgica vs Ochoa, G.R. No. 208566, November 19, 2013

The "Constitution has blocked out with deft strokes and in bold lines,
allotment of power to the executive, the legislative and the judicial
departments of the government." [Angara v. Electoral Commission,
63 Phil. 139, 158 (1936)].To the legislative branch of government,
through Congress, (Section 1, Article VI, 1987 Constitution) belongs
the power to make laws; to the executive branch of government,
through the President, (Section 1, Article VII, 1987 Constitution)
belongs the power to enforce laws; and to the judicial branch of
government, through the Court, (Section 1, Article VIII, 1987
Constitution) belongs the power to interpret laws.

It is a breach of the National fundamental law if Congress gives up its

legislative power and transfers it to the President, or to the Judicial
branch, or if by law it attempts to invest itself or its members with
either executive power of judicial power.

There is a violation of the separation of powers principle when one

branch of government unduly encroaches on the domain of another

The principle of separation of powers may be violated in two (2)

ways:

1) "one branch may interfere impermissibly with the other’s

performance of its constitutionally assigned function" [Nixon v.
Administrator of General Services, 433 U.S. 425, 441-446 and 451-
452 (1977) and United States v. Nixon, 418 U.S. 683 (1974), cited in
Justice Powell‘s concurring opinion in Immigration and Naturalization
Service v. Chadha, 462 U.S. 919 (1983)];

2) "alternatively, the doctrine may be violated when one branch

assumes a function that more properly is entrusted to another."
[Youngstown Sheet & Tube Co. v. Sawyer 343 U.S. 579, 587 (1952),
Springer v. Philippine Islands, 277 U.S. 189, 203 (1928) cited in
Justice Powell’s concurring opinion in Immigration and Naturalization
Service v. Chadha, 462 U.S. 919 (1983)]

General Considerations Governing Public Officers

• State Immunity from Suit

Department Of Health, the Secretary Of Health, and Ma. Margarita M.

Galon, vs. PHIL Pharma Wealth, Inc., G.R. No. 182358, February 20,
2013
Department of Agriculture v. National Labor Relations Commission,
G.R. No. 104269, November 11, 1993, 227 SCRA 693.

The basic postulate enshrined in the constitution that ‘(t)he State may
not be sued without its consent,’ reflects nothing less than a
recognition of the sovereign character of the State and an express
affirmation of the unwritten rule effectively insulating it from the
jurisdiction of courts. It is based on the very essence of sovereignty. x
x x [A] sovereign is exempt from suit, not because of any formal
conception or obsolete theory, but on the logical and practical ground
that there can be no legal right as against the authority that makes
the law on which the right depends. True, the doctrine, not too
infrequently, is derisively called ‘the royal prerogative of dishonesty’
because it grants the state the prerogative to defeat any legitimate
claim against it by simply invoking its non-suability. We have had
occasion to explain in its defense, however, that a continued
adherence to the doctrine of non-suability cannot be deplored, for the
loss of governmental efficiency and the obstacle to the performance
of its multifarious functions would be far greater in severity than the
inconvenience that may be caused private parties, if such
fundamental principle is to be abandoned and the availability of
judicial remedy is not to be accordingly restricted.
The rule, in any case, is not really absolute for it does not say that the
state may not be sued under any circumstance. On the contrary, as
correctly phrased, the doctrine only conveys, ‘the state may not be
sued without its consent;’ its clear import then is that the State may at
times be sued. The State’s consent may be given either expressly or
impliedly. Express consent may be made through a general law or a
special law. x x x Implied consent, on the other hand, is conceded
when the State itself commences litigation, thus opening itself to a
counterclaim or when it enters into a contract. In this situation, the
government is deemed to have descended to the level of the other
contracting party and to have divested itself of its sovereign immunity.
This rule, x x x is not, however, without qualification. Not all contracts
entered into by the government operate as a waiver of its non-
suability; distinction must still be made between one which is
executed in the exercise of its sovereign function and another which
is done in its proprietary capacity

As a general rule, a state may not be sued. However, if it consents,

either expressly or impliedly, then it may be the subject of a suit.
There is express consent when a law, either special or general, so
provides. On the other hand, there is implied consent when the state
"enters into a contract or it itself commences litigation." However, it
must be clarified that when a state enters into a contract, it does not
automatically mean that it has waived its non-suability. The State "will
be deemed to have impliedly waived its non-suability [only] if it has
entered into a contract in its proprietary or private capacity.
[However,] when the contract involves its sovereign or governmental
capacity[,] x x x no such waiver may be implied." [United States of
America v. Judge Guinto, 261 Phil. 777, 790 (1990)].

"Statutory provisions waiving [s]tate immunity are construed in

strictissimi juris. For, waiver of immunity is in derogation of
sovereignty." [Equitable Insurance and Casualty Co., Inc. v. Smith,
Bell & Co. (Phils.), Inc., 127 Phil. 547, 549 (1967)].

Air Transportation Office v. Ramos, G.R. No. 159402, February 23,

2011, 644 SCRA 36.

An unincorporated government agency without any separate juridical

personality of its own enjoys immunity from suit because it is invested
with an inherent power of sovereignty. Accordingly, a claim for
damages against the agency cannot prosper; otherwise, the doctrine
of sovereign immunity is violated. However, the need to distinguish
between an unincorporated government agency performing
governmental function and one performing proprietary functions has
arisen. The immunity has been upheld in favor of the former because
its function is governmental or incidental to such function; it has not
been upheld in favor of the latter whose function was not in pursuit of
a necessary function of government but was essentially a business.

It is settled that if a Complaint seeks to "impose a charge or financial

liability against the state," [Department of Health v. Phil
Pharmawealth, Inc., 547 Phil. 148, 154 (2007)] the defense of non-
suability may be properly invoked.
the doctrine of state immunity extends its protective mantle also to
complaints filed against state officials for acts done in the discharge
and performance of their duties. [United States of America v.

Judge Guinto, 261 Phil. 777, 790 (1990)].

"The suability of a government official depends on whether the official

concerned was acting within his official or jurisdictional capacity, and
whether the acts done in the performance of official functions will
result in a charge or financial liability against the government."
[Department of Health v. Phil Pharmawealth, Inc., 547 Phil. 148, 153
(2007)]

Otherwise stated, "public officials can be held personally accountable

for acts claimed to have been performed in connection with official
duties where they have acted ultra vires or where there is showing of
bad faith." [M. H. Wylie v. Rarang, G.R. No. 74135, May 28, 1992,
209 SCRA 357, 368]

United States of America v. Reyes, G.R. No. 79253, March 1, 1993,

219 SCRA 192]

x x x The doctrine of immunity from suit will not apply and may not be
invoked where the public official is being sued in his private and
personal capacity as an ordinary citizen. The cloak of protection
afforded the officers and agents of the government is removed the
moment they are sued in their individual capacity. This situation
usually arises where the public official acts without authority or in
excess of the powers vested in him. It is a well-settled principle of law
that a public official may be liable in his personal private capacity for
whatever damage he may have caused by his act done with malice
and in bad faith, or beyond the scope of his authority or jurisdiction.

Moreover, "[t]he rule is that if the judgment against such officials will
require the state itself to perform an affirmative act to satisfy the
same, such as the appropriation of the amount needed to pay the
damages awarded against them, the suit must be regarded as
against the state x x x. In such a situation, the state may move to
dismiss the [C]omplaint on the ground that it has been filed without its
consent."

"[t]he essence of due process in administrative proceedings is the

opportunity to explain one’s side or seek a reconsideration of the
action or ruling complained of. As long as the parties are given the
opportunity to be heard before judgment is rendered, the demands of
due process are sufficiently met. What is offensive to due process is
the denial of the opportunity to be heard. The Court has repeatedly
stressed that parties who chose not to avail themselves of the
opportunity to answer charges against them cannot complain of a
denial of due process." [Flores v. Montemavor, Ci.R. No. 170146.
llll''~ 1' .. 20 i i, 651 SCEA 396, 406-407]

• Government is not bound by errors of public officers

Intra-Strata Assurance Corporation and Philippine Home Assurance

Corporation, vs. Republic of the Philippines, represented by the
Bureau of Customs, G.R. No. 156571, July 9, 2008
Republic of the Philippines v. Heirs of Felix Caballero, G.R. No. L-
27473, September 30, 1977, 208 SCRA 726

It has long been a settled rule that the government is not bound by
the errors committed by its agents. Estoppel does not also lie against
the government or any of its agencies arising from unauthorized or
illegal acts of public officers.
Caltex Philippines v. COA, G.R. No. 92585, May 8, 1992, 208 SCRA
726

This is particularly true in the collection of legitimate taxes due where

the collection has to be made whether or not there is error, complicity,
or plain neglect on the part of the collecting agents

CIR v. CTA, G.R. No. 106611, July 21, 1994, 243 SCRA 348

It is axiomatic that the government cannot and must not be estopped

particularly in matters involving taxes. Taxes are the lifeblood of the
nation through which the government agencies continue to operate
and with which the State effects its functions for the welfare of its
constituents. Thus, it should be collected without unnecessary
hindrance or delay.

• Presumption of Regularity in the Performance of Official Duty

Erlinda R. Velayo-Fong, vs. Spouses Raymond and Maria Hedy
Velayo, G.R. No. 155488, December 6, 2006

Between the claim of non-receipt of summons by a party against the

assertion of an official whose duty is to send notices, the latter
assertion is fortified by the presumption that official duty has been
regularly performed. [Section 3(m), Rule 131 of the Revised Rules on
Evidence]

To overcome the presumption of regularity of performance of official

functions in favor of such Officer's Return, the evidence against it
must be clear and convincing. Petitioner having been unable to come
forward with the requisite quantum of proof to the contrary, the
presumption of regularity of performance on the part of the process
server stands.

• Power of Control, Supervision, and Control

Carpio vs. Executive Secretary, G.R. No. 96409 February 14, 1992

This presidential power of control over the executive branch of

government extends over all executive officers from Cabinet
Secretary to the lowliest clerk [The Constitution, A Commentary. By
Fr. Joaquin Bernas, S.J., Vol. II, 2nd Ed. (1988), p. 203-204] and has
been held by us, in the landmark case of Mondano vs. Silvosa, 97
Phil. 143 (1955), to mean "the power of [the President] 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 with that of the latter." It is said to be at the very "heart of the
meaning of Chief Executive."

• Three-fold responsibility/liability

People v. Sandiganbayan, G.R. No. 164577, July 5, 2010, 623 SCRA

147

Indeed, the dismissal of an administrative case does not bar the filing
of a criminal prosecution for the same or similar acts subject of the
administrative complaint. Neither does the disposition in one case
inevitably govern the resolution of the other case/s and vice versa.
Administrative liability is one thing; criminal liability for the same act is
another. (Paredes v. Sandiganbayan, CA, G.R. No. 108251, January
31, 1996)

Paredes v. CA, G.R. No. 169534, July 30, 2007

The distinct and independent nature of one proceeding from the other
can be attributed to the following: first, the difference in the quantum
of evidence required and, correlatively, the procedure observed and
sanctions imposed; and second, the principle that a single act may
offend against two or more distinct and related provisions of law, or
that the same act may give rise to criminal as well as administrative
liability.

Although the dismissal of the criminal case cannot be pleaded to

abate the administrative proceedings primarily on the ground that the
quantum of proof required to sustain administrative charges is
significantly lower than that necessary for criminal actions, the same
does not hold true if it were the other way around, that is, the
dismissal of the administrative case is being invoked to abate the
criminal case. The reason is that the evidence presented in the
administrative case may not necessarily be the same evidence to be
presented in the criminal case. The prosecution is certainly not
precluded from adducing additional evidence to discharge the burden
of proof required in the criminal cases.

However, if the criminal case will be prosecuted based on the same

facts and evidence as that in the administrative case, and the court
trying the latter already squarely ruled on the absence of facts and/or
circumstances sufficient to negate the basis of the criminal
indictment, (Nicolas v. Sandiganbayan, G.R. Nos. 175930-31,
February 11, 2008) then to still burden the accused to present
controverting evidence despite the failure of the prosecution to
present sufficient and competent evidence, will be a futile and
useless exercise.

Judicial Review

• Doctrine of Primary Jurisdiction

The Province of Aklan, Petitioner, vs. Jody King Construction And

Development Corp., G.R. Nos. 197592 & 20262, November 27, 2013

The doctrine of primary jurisdiction holds that if a case is such that its
determination requires the expertise, specialized training and
knowledge of the proper administrative bodies, relief must first be
obtained in an administrative proceeding before a remedy is supplied
by the courts even if the matter may well be within their proper
jurisdiction. [Industrial Enterprises, Inc. v. Court of Appeals, 263 Phil.
352, 358 (1990)]

It applies where a claim is originally cognizable in the courts, and

comes into play whenever enforcement of the claim requires the
resolution of issues which, under a regulatory scheme, have been
placed within the special competence of an administrative agency. In
such a case, the court in which the claim is sought to be enforced
may suspend the judicial process pending referral of such issues to
the administrative body for its view or, if the parties would not be
unfairly disadvantaged, dismiss the case without prejudice. [Euro-
Med Laboratories Phil., Inc. v. Province of Batangas, 527 Phil. 623,
626-627 (2006)]
The objective of the doctrine of primary jurisdiction is to guide the
court in determining whether it should refrain from exercising its
jurisdiction until after an administrative agency has determined some
question or some aspect of some question arising in the proceeding
before the court. [Fabia v. Court of Appeals, 437 Phil. 389, 403
(2002)]

The court may raise the issue of primary jurisdiction sua sponte and
its invocation cannot be waived by the failure of the parties to argue it
as the doctrine exists for the proper distribution of power between
judicial and administrative bodies and not for the convenience of the
parties. [Euro-Med Laboratories Phil., Inc. v. Province of Batangas,
527 Phil. 627-629 (2006)]

There are established exceptions to the doctrine of primary

jurisdiction, such as:
(a) where there is estoppel on the part of the party invoking the
doctrine;
(b) where the challenged administrative act is patently illegal,
amounting to lack of jurisdiction;
(c) where there is unreasonable delay or official inaction that will
irretrievably prejudice the complainant;
(d) where the amount involved is relatively small so as to make the
rule impractical and oppressive;
(e) where the question involved is purely legal and will ultimately have
to be decided by the courts of justice;
(f) where judicial intervention is urgent;
(g) when its application may cause great and irreparable damage;
(h) where the controverted acts violate due process;
(i) when the issue of non-exhaustion of administrative remedies has
been rendered moot;
(j) when there is no other plain, speedy and adequate remedy;
(k) when strong public interest is involved; and,
(l) in quo warranto proceedings. [Rep. of the Phils. v. Lacap, 546 Phil.
87, 97-98 (2007), citing Rocamora v. RTC-Cebu (Br. VIII), 249 Phil.
571, 579 (1988); Hon. Carale v. Hon. Abarintos, 336 Phil. 126, 137
(1997); and Castro v. Sec. Gloria, 415 Phil. 645, 651-652 (2001)]

The doctrine of primary jurisdiction does not warrant a court to

arrogate unto itself authority to resolve a controversy the jurisdiction
over which is initially lodged with an administrative body of special
competence. [Heirs of Tantoco, Sr. v. Court of Appeals, 523 Phil.
257, 284 (2006), citing First Lepanto Ceramics, Inc. v. Court of
Appeals, G.R. No. 117680, February 9, 1996, 253 SCRA 552, 558;
Machete v. Court of Appeals, 320 Phil. 227, 235 (1995); and Vidad v.
RTC of Negros Oriental, Br. 42, G.R. Nos. 98084, 98922 & 100300-
03, October 18, 1993, 227 SCRA 271, 276]

All the proceedings of the court in violation of the doctrine and all
orders and decisions rendered thereby are null and void. [Agra v.
Commission on Audit, G.R. No. 167807, December 6, 2011, 661
SCRA 563, 582]

Since a judgment rendered by a body or tribunal that has no

jurisdiction over the subject matter of the case is no judgment at all, it
cannot be the source of any right or the creator of any obligation. All
acts pursuant to it and all claims emanating from it have no legal
effect and the void judgment can never be final and any writ of
execution based on it is likewise void. [Ga, Jr. v. Tubungan, G.R. No.
182185, September 18, 2009, 600 SCRA 739, 746]

• Doctrine of Exhaustion of Administrative Remedies

Samar II Electric Cooperative, Inc. (SAMELCO II) and its Board of

Directors, composed of Deborah T. Marco (Immediate Past
President), Atty. Medino L. Acuba, Engr. Manuel C. Orejola, Alfonso
F. Quilapio, Raul De Guzman and Ponciano R. Rosales (General
Manager and Ex OfficioDirector), G.R. No. 173840, April 25, 2012

It may not be amiss to reiterate the prevailing rule that the doctrine of
primary jurisdiction applies where a claim is originally cognizable in
the courts and comes into play whenever enforcement of the claim
requires the resolution of issues which, under a regulatory scheme,
has been placed within the special competence of an administrative
agency.9 In such a case, the court in which the claim is sought to be
enforced may suspend the judicial process pending referral of such
issues to the administrative body for its view or, if the parties would
not be unfairly disadvantaged, dismiss the case without prejudice.
[Rosito Bagunu v. Spouses Francisco Aggabao and Rosenda Acerit,
G.R. No. 186487, August 15, 2011; Phil Pharmawealth, Inc. v. Pfizer,
Inc. and Pfizer (Phil.) Inc., G.R. No. 167715, November 17, 2010, 635
SCRA 140, 153; Euro-Med Laboratories Phil., Inc. v. The Province of
Batangas, G.R. No. 148106, July 17, 2006, 495 SCRA 301, 305]

City Engineer of Baguio v. Baniqued, G.R. No. 150270, November

26, 2008, 571 SCRA 617, 627-628;Buston-Arendain v. Gil, G.R. No.
172585, June 26, 2008, 555 SCRA 561, 572; Province of Zamboanga
del Norte v. Court of Appeals, G.R. No. 109853, October 11, 2000,
342 SCRA 549, 557

Corollary to the doctrine of primary jurisdiction is the principle of

exhaustion of administrative remedies. Before a party is allowed to
seek the intervention of the courts, it is a pre-condition that he avail
himself of all administrative processes afforded him. Hence, if a
remedy within the administrative machinery can be resorted to by
giving the administrative officer every opportunity to decide on a
matter that comes within his jurisdiction, then such remedy must be
exhausted first before the court’s power of judicial review can be
sought. The premature resort to the court is fatal to one’s cause of
action. Accordingly, absent any finding of waiver or estoppel, the
case may be dismissed for lack of cause of action.

True, the doctrines of primary jurisdiction and exhaustion of

administrative remedies are subject to certain exceptions, to wit: (a)
where there is estoppel on the part of the party invoking the doctrine;
(b) where the challenged administrative act is patently illegal,
amounting to lack of jurisdiction; (c) where there is unreasonable
delay or official inaction that will irretrievably prejudice the
complainant; (d) where the amount involved is relatively so small as
to make the rule impractical and oppressive; (e) where the question
involved is purely legal and will ultimately have to be decided by the
courts of justice; (f) where judicial intervention is urgent; (g) where the
application of the doctrine may cause great and irreparable damage;
(h) where the controverted acts violate due process; (i) where the
issue of non-exhaustion of administrative remedies has been
rendered moot; (j) where there is no other plain, speedy and
adequate remedy; (k) where strong public interest is involved; and (l)
in quo warranto proceedings. (Vigilar v. Aquino, G.R. No. 180388,
January 18, 2011, 639 SCRA 772, 777, citing Republic of the
Philippines v. Lacap, G.R. No. 158253, March 2, 2007, 517 SCRA
255, 265-266)
CASES ON ADMINISTRATIVE DISCIPLINE
• Jurisdiction of the Civil Service Commission

The Civil Service Commission vs. Henry A. Sojor, G.R. No. 168766,
May 22, 2008

The Constitution grants to the CSC administration over the entire civil
service. (Constitution (1987), Art. IX(B), Sec. 1)

As defined, the civil service embraces every branch, agency,

subdivision, and instrumentality of the government, including every
government-owned or controlled corporation. (The Administrative
Code (1987), Sec. 6; id., Sec. 2)

When the law bestows upon a government body the jurisdiction to

hear and decide cases involving specific matters, it is to be presumed
that such jurisdiction is exclusive unless it be proved that another
body is likewise vested with the same jurisdiction, in which case, both
bodies have concurrent jurisdiction over the matter. (Enrique v. Court
of Appeals, G.R. No. 79072, January 10, 1994, 229 SCRA 180, citing
Government Service Insurance System v. Civil Service Commission,
G.R. No. 87146, December 11, 1991, 204 SCRA 826)

University of the Philippines v. Regino, G.R. No. 88167, May 3, 1993,

221 SCRA 598.

The Civil Service Law (PD 807) expressly vests in the Commission
appellate jurisdiction in administrative disciplinary cases involving
members of the Civil Service. Section 9(j) mandates that the
Commission shall have the power to "hear and decide administrative
disciplinary cases instituted directly with it in accordance with Section
37 or brought to it on appeal." And Section 37(a) provides that, "The
Commission shall decide upon appeal all administrative disciplinary
cases involving the imposition of a penalty of suspension for more
than thirty (30) days, or fine in an amount exceeding thirty days’
salary, demotion in rank or salary or transfer, removal or dismissal
from office." (Emphasis supplied)

Under the 1972 Constitution, all government-owned or controlled

corporations, regardless of the manner of their creation, were
considered part of the Civil Service. Under the 1987 Constitution, only
government-owned or controlled corporations with original charters
fall within the scope of the Civil Service pursuant to Article IX-B,
Section 2(1), which states:

"The Civil Service embraces all branches, subdivisions,

instrumentalities, and agencies of the government, including
government-owned or controlled corporations with original charters."

Camacho v. Gloria, G.R. No. 138862, August 15, 2003, 409 SCRA
174.

The Civil Service Rules embodied in Executive Order 292 recognize

the power of the Secretary and the university, through its governing
board, to investigate and decide matters involving disciplinary action
against officers and employees under their jurisdiction. Of course
under EO 292, a complaint against a state university official may be
filed either with the university’s Board of Regents or directly with the
Civil Service Commission, although the CSC may delegate the
investigation of a complaint and for that purpose, may deputize any
department, agency, official or group of officials to conduct such
investigation. (Executive Order No. 292, Sec. 47)

Academic institutions and personnel are granted wide latitude of

action under the principle of academic freedom. Academic freedom
encompasses the freedom to determine who may teach, who may be
taught, how it shall be taught, and who may be admitted to study.
(Miriam College Foundation, Inc. v. Court of Appeals, G.R. No.
127930, December 15, 2000, 348 SCRA 265)

Following that doctrine, this Court has recognized that institutions of

higher learning has the freedom to decide for itself the best methods
to achieve their aims and objectives, free from outside coercion,
except when the welfare of the general public so requires. [Camacho
v. Coresis, 436 Phil. 449 (2002)] They have the independence to
determine who to accept to study in their school and they cannot be
compelled by mandamus to enroll a student.( Tangonan v. Paño,
G.R. No. L-45157, June 27, 1985, 137 SCRA 245)
The guaranteed academic freedom does not give an institution the
unbridled authority to perform acts without any statutory basis.(
Benguet State University v. Commission on Audit, G.R. No. 169637,
June 8, 2007) For that reason, a school official, who is a member of
the civil service, may not be permitted to commit violations of civil
service rules under the justification that he was free to do so under
the principle of academic freedom.

The doctrine this Court laid down in Salalima v. Guingona, Jr. (G.R.
Nos. 117589-92, May 22, 1996, 257 SCRA 55) and Aguinaldo v.
Santos (G.R. No. 94115, August 21, 1992, 212 SCRA 768) are
inapplicable to the present circumstances. Respondents in the
mentioned cases are elective officials, unlike respondent here who is
an appointed official. Indeed, election expresses the sovereign will of
the people. (People v. Jalosjos, G.R. Nos. 132875-76, February 3,
2000, 381 SCRA 690) Under the principle of vox populi est suprema
lex, the re-election of a public official may, indeed, supersede a
pending administrative case. The same cannot be said of a re-
appointment to a non-career position. There is no sovereign will of
the people to speak of when the BOR re-appointed respondent Sojor
to the post of university president.

• Misconduct

Rolando Ganzon vs. Fernando Arlos, G.R. No. 174321, October 22,
2013

Misconduct is intentional wrongdoing or deliberate violation of a rule

of law or standard of behavior. To constitute an administrative
offense, misconduct should relate to or be connected with the
performance of the official functions and duties of a public officer. In
grave misconduct, as distinguished from simple misconduct, the
elements of corruption, clear intent to violate the law, or flagrant
disregard of an established rule must be manifest. (Narvasa v.
Sanchez, Jr., G.R. No. 169449, March 26, 2010, 616 SCRA 586,
591)
In accordance with Section 46 of Subtitle A, Title I, Book V of the
Administrative Code of 1987 (Executive Order No. 292), misconduct
is among the grounds for disciplinary action, but no officer or
employee in the Civil Service shall be suspended or dismissed except
for cause as provided by law and after due process. It is cogent to
mention that the Revised Uniform Rules on Administrative Cases in
the Civil Service , which governs the conduct of disciplinary and non-
disciplinary proceedings in administrative cases, classifies grave
misconduct as a grave administrative offense. (Rule IV, Section 5,
Revised Uniform Rules on Administrative Cases in the Civil Service,
Civil Service Commission Memorandum Circular 19, Series of 1999,
August 31, 1999)

Largo v. Court of Appeals, G.R. No. 177244, November 20, 2007,

537 SCRA 721

the criteria that an act, to constitute a misconduct, must not be

committed in his private capacity and should bear a direct relation to
and be connected with the performance of his official duties.

Alarilla v. Sandiganbayan, G.R. No. 136806, August 22, 2000, 338

SCRA 485, 497.

An act is intimately connected to the office of the offender if it is

committed as the consequence of the performance of the office by
him, or if it cannot exist without the office even if public office is not an
element of the crime in the abstract.

an administrative case is not dependent on the conviction or acquittal

of the criminal case because the evidence required in the
proceedings therein is only substantial and not proof beyond
reasonable doubt.

An administrative case is, as a rule, independent from criminal

proceedings.1âwphi1 The dismissal of a criminal case on the ground
of insufficiency of evidence or the acquittal of an accused who is also
a respondent in an administrative case does not necessarily preclude
the administrative proceeding nor carry with it relief from
administrative liability. This is because the quantum of proof required
in administrative proceedings is substantial evidence, unlike in
criminal cases which require proof beyond reasonable doubt.
Substantial evidence, according to Section 5 of Rule 133, Rules of
Court, is "that amount of relevant evidence which a reasonable mind
might accept as adequate to justify a conclusion." In contrast, proof
beyond reasonable doubt does not mean such a degree of proof as,
excluding possibility of error, produces absolute certainty; moral
certainty only is required, or that degree of proof which produces
conviction in an unprejudiced mind. (Section 2, Rule 133, Rules of
Court)

Section 56 and Section 58 of the Revised Uniform Rules on

Administrative Cases in the Civil Service respectively state that the
penalty of dismissal shall result in the permanent separation of the
respondent from the service, with or without prejudice to criminal or
civil liability, and shall carry with it cancellation of eligibility, forfeiture
of retirement benefits and the perpetual disqualification from re-
employment in the government service, unless otherwise provided in
the decision.
• Back Salary

City Mayor of Zamboanga, vs. Court of Appeals and Eustaquio C.

Argana, G.R. No. 80270 February 27, 1990

Under Memorandum Circular No. 30, series of 1989 issued by the

Civil Service Commission, "Disgraceful and Immoral Conduct" and
"Grave Misconduct" are classified as grave offenses punishable by
dismissal.

In a long line of cases, [Gonzales vs. Hernandez, 2 SCRA 228

(1961); Villamar vs. Lacson, 12 SCRA 418 (1964); Abellera vs. City of
Baguio, 19 SCRA 601 (1967); Avila vs. Gimenez, 27 SCRA 321
(1969)] this Court reiterated the principle that back salaries may be
ordered paid to an officer or employee only if he is exonerated of the
charge against him and his suspension or dismissal is found and
declared to be illegal.

• Oppression, Grave Abuse of Authority, Substantial Evidence,

Presumption of Regularity

Ombudsman vs Caberoy, G.R. No. 188066, October 22, 2014

Oppression is also known as grave abuse of authority, which is a
misdemeanor committed by a public officer, who under color of his
office, wrongfully inflict upon any person any bodily harm,
imprisonment or other injury. It is an act of cruelty, severity, or
excessive use of authority. [Romero v. Villarosa, Jr., A.M. No. P-11-
2913, April 12, 2011, 648 SCRA 32, 41-42; Spouses Stilgrove v.
Sabas, 538 Phil. 232, 244 (2006)]

To be held administratively liable for Oppression or Grave Abuse of

Authority, there must be substantial evidence presented proving the
complainant’s allegations. [Nedia v. Judge Laviña, 508 Phil. 9, 19
(2005)]

Substantial evidence is that amount of relevant evidence which a

reasonable mind might accept as adequate to support a conclusion.
[Miro v. Mendoza Vda. de Erederos, G.R. Nos. 172532 and 172544-
45, November 20, 2013, 710 SCRA 371, 387]

Entries in the payroll, being entries in the course of business, enjoy

the presumption of regularity under Section 43, Rule 130 of the Rules
of Court, [KAR ASIA, Inc. v. Corona, 480 Phil. 627, 636 (2004)]
Absent any evidence presented by Tuares showing the contrary,
good faith must be presumed in the preparation and signing of such
payrolls. [Sapio v. Undaloc Construction and/or Engr. Undaloc, 577
Phil. 39, 47 (2008)]

It must be stressed that like other grave offenses classified under the
Civil Service laws, bad faith must attend the act complained of. Bad
faith connotes a dishonest purpose or some moral obliquity and
conscious doing of a wrong; a breach of sworn duty through some
motive or intent or ill will; it partakes of the nature of fraud. [Andrade
v. Court of Appeals, 423 Phil. 30, 43 (2001)]
in administrative cases, to be disciplined for grave misconduct or any
grave offense, the evidence against the respondent should be
competent and must be derived from direct knowledge. [Litonjua v.
Justices Enriquez, Jr. and Abesamis, 482 Phil. 73, 100-101 (2004)]

"Reliance on mere allegations, conjectures and suppositions will

leave an administrative complaint with no leg to stand on." [SPO2
Alcover, Sr. v. Bacatan, 513 Phil. 77, 83 (2005), citing Alfonso v.
Ignacio, 487 Phil. 1, 7 (2004). Seealso Borromeo-Garcia v. Judge
Pagayatan, 588 Phil. 11, 18 (2008)]

• Neglect of Duty

Ombudsman vs de Leon, G.R. No. 154083, February 27, 2013

Gross neglect of duty or gross negligence "refers to negligence

characterized by the want of even slight care, or by acting or omitting
to act in a situation where there is a duty to act, not inadvertently but
wilfully and intentionally, with a conscious indifference to the
consequences, insofar as other persons may be affected. It is the
omission of that care that even inattentive and thoughtless men never
fail to give to their own property." (Fernandez v. Office of the
Ombudsman, G.R. No. 193983. March 14, 2012, 668 SCRA 351,
364)

It denotes a flagrant and culpable refusal or unwillingness of a person

to perform a duty. (Philippine Retirement Authority v. Rupa, G.R. No.
140519, August 21, 2001, 363 SCRA 480, 487) In cases involving
public officials, gross negligence occurs when a breach of duty is
flagrant and palpable. (Fernandez v. Office of the Ombudsman, G.R.
No. 193983. March 14, 2012, 668 SCRA 351, 364)

In contrast, simple neglect of duty means the failure of an employee

or official to give proper attention to a task expected of him or her,
signifying a "disregard of a duty resulting from carelessness or
indifference." (Republic v. Canastillo, G.R. No. 172729, June 8, 2007,
524 SCRA 546, 555)

• Nepotism, Party Adversely Affected

Civil Service Commission, vs. Pedro O. Dacoycoy, G.R. No. 135805,

April 29, 1999

Sec. 59. Nepotism. — (1) All appointments to the national, provincial,

city and municipal governments or in any branch or instrumentality
thereof, including government owned or controlled corporations,
made in favor of a relative of the appointing or recommending
authority, or of the chief of the bureau or office, or of the persons
exercising immediate supervision over him, are hereby prohibited.

As used in this Section, the word "relative" and members of the family
referred to are those related within the third degree either of
consanguinity or of affinity. (Sec. 59, Executive Order 292, dated July
25, 1987)

Clearly, there are four situations covered. In the last two mentioned
situations, it is immaterial who the appointing or recommending
authority is. To constitute a violation of the law, it suffices that an
appointment is extended or issued in favor of a relative within the
third civil degree of consanguinity or affinity of the chief of the bureau
or office, or the person exercising immediate supervision over the
appointee.

By this ruling, we now expressly abandon and overrule extant

jurisprudence that "the phrase 'party adversely affected by the
decision' refers to the government employee against whom the
administrative case is filed for the purpose of disciplinary action
which, may take the form of suspension, demotion in rank or salary,
transfer, removal or dismissal from office" (Mendez vs. Civil Service
Commission, 204 SCRA 965, 967) and not included are "cases
where the penalty imposed is suspension for not more than thirty (30)
days or fine in an amount not exceeding thirty days salary" (Paredes
vs. Civil Service Commission, 192 SCRA 84, 85) or "when the
respondent is exonerated of the charges, there is no occasion for
appeal." (Mendez vs. Civil Service Commission, 204 SCRA 965, 968)
In other words, we overrule prior decisions holding that the Civil
Service Law "does not contemplate a review of decisions exonerating
officers or employees from administrative charges" enunciated in
Paredes v. Civil Service Commission, 192 SCRA 84; Mendez v. Civil
Service Commission, 204 SCRA 965; Magpale v. Civil Service
Commission, 215 SCRA 398; Navarro v. Civil Service Commission
and Export Processing Zone Authority, 226 SCRA 207; and more
recently Del Castillo v. Civil Service Commission, 241 SCRA 317.

• Administrative Due Proces

PO2 Ruel C. Montoya, vs. Police Director Reynaldo P. Varilla,
Regional Director, National Capital Region, Police Office and Atty.
Rufino Jeffrey L. Manere, Regional Legal Affairs Service, G.R. No.
180146, December 18, 2008

Though procedural rules in administrative proceedings are less

stringent and often applied more liberally, administrative proceedings
are not exempt from basic and fundamental procedural principles,
such as the right to due process in investigations and hearings. The
right to substantive and procedural due process is applicable to
administrative proceedings. [Civil Service Commission v. Lucas, 361
Phil. 486, 491 (1999)]

Well-settled is the rule that the essence of due process is simply an

opportunity to be heard or, as applied to administrative proceedings,
an opportunity to explain one’s side or an opportunity to seek a
reconsideration of the action or ruling complained of. [Westmont
Pharmaceuticals, Inc. v. Samaniego, G.R. Nos. 146653-54, 20
February 2006, 482 SCRA 611, 619] Unarguably, this rule, as it is
stated, strips down administrative due process to its most
fundamental nature and sufficiently justifies freeing administrative
proceedings from the rigidity of procedural requirements. In particular,
however, due process in administrative proceedings has also been
recognized to include the following: (1) the right to actual or
constructive notice of the institution of proceedings which may affect
a respondent’s legal rights; (2) a real opportunity to be heard
personally or with the assistance of counsel, to present witnesses
and evidence in one’s favor, and to defend one’s rights; (3) a tribunal
vested with competent jurisdiction and so constituted as to afford a
person charged administratively a reasonable guarantee of honesty
as well as impartiality; and (4) a finding by said tribunal which is
supported by substantial evidence submitted for consideration during
the hearing or contained in the records or made known to the parties
affected. [Fabella v. Court of Appeals, 346 Phil. 940, 952-953 (1997)]

Hence, even if administrative tribunals exercising quasi-judicial

powers are not strictly bound by procedural requirements, they are
still bound by law and equity to observe the fundamental
requirements of due process. Notice to enable the other party to be
heard and to present evidence is not a mere technicality or a trivial
matter in any administrative or judicial proceedings. [National Power
Corporation v. National Labor Relations Commission, 339 Phil. 89,
107 (1997); citing Philippine National Construction Corporation v.
Ferrer-Calleja, G.R. No. L-80485, 11 November 1988, 167 SCRA
294, 301]

In the application of the principle of due process, what is sought to be

safeguarded is not lack of previous notice but the denial of the
opportunity to be heard. [Vda. de Emnas v. Emnas, 184 Phil. 419,
424 (1980)]

The cardinal precept is that where there is a violation of basic

constitutional rights, courts are ousted from their jurisdiction. The
violation of a party’s right to due process raises a serious
jurisdictional issue which cannot be glossed over or disregarded at
will. Where the denial of the fundamental right of due process is
apparent, a decision rendered in disregard of that right is void for lack
of jurisdiction. (State Prosecutors v. Muro, Adm. Matter No. RTJ-92-
876, 19 September 1994, 236 SCRA 505, 522-523; see also Paulin v.
Gimenez, G.R. No. 103323, 21 January 1993, 217 SCRA 386, 392)
The rule must be equally true for quasi-judicial administrative bodies,
for the constitutional guarantee that no man shall be deprived of life,
liberty, or property without due process is unqualified by what type of
proceedings (whether judicial or administrative) he stands to lose the
same.

Section 45 of Republic Act No. 6975, otherwise known as the DILG

Act of 1990, provides:

SEC. 45. Finality of Disciplinary Action. – The disciplinary action

imposed upon a member of the PNP shall be final and executory:
Provided, That a disciplinary action imposed by the Regional Director
or by the PLEB involving demotion or dismissal from the service may
be appealed to the Regional Appellate Board within ten (10) days
from receipt of the copy of the notice of decision: Provided, further,
That the disciplinary action imposed by the Chief of the PNP involving
demotion or dismissal may be appealed to the National Appellate
Board within ten (10) days from receipt thereof: Provided,
furthermore, That, the Regional or National Appellate Board, as the
case may be, shall decide the appeal within sixty (60) days from
receipt of the notice of appeal: Provided, finally, That failure of the
Regional Appellate Board to act on the appeal within said period shall
render the decision final and executory without prejudice, however, to
the filing of an appeal by either party with the Secretary.
(Underscoring supplied.)

As a general rule, the perfection of an appeal in the manner and

within the period permitted by law is not only mandatory but also
jurisdictional, and the failure to perfect the appeal renders the
judgment of the court final and executory. [Videogram Regulatory
Board v. Court of Appeals, 332 Phil. 820, 828 (1996)]

A decision of the court (or, in this case, a quasi-judicial administrative

body) without jurisdiction is null and void; hence, it can never logically
become final and executory. Such a judgment may be attacked
directly or collaterally. (Laresma v. Abellana, G.R. No. 140973, 11
November 2004, 442 SCRA 156, 169) Any judgment or decision
rendered notwithstanding the violation of due process may be
regarded as a "lawless thing which can be treated as an outlaw and
slain at sight, or ignored wherever it exhibits its head." (People v.
Bocar, G.R. No. L-27935, 16 August 1985, 138 SCRA 166, 171)

Civil Service Commission v. Dacoycoy.13

At this point, we have necessarily to resolve the question of the party

adversely affected who may take an appeal from an adverse decision
of the appellate court in an administrative civil service disciplinary
case. There is no question that respondent Dacoycoy may appeal to
the Court of Appeals from the decision of the Civil Service
Commission adverse to him. He was the respondent official meted
out the penalty of dismissal from the service. On appeal to the Court
of Appeals, the court required the petitioner therein, herein
respondent Dacoycoy, to implead the Civil Service Commission as
public respondent as the government agency tasked with the duty to
enforce the constitutional and statutory provisions on the civil service.

Subsequently, the Court of Appeals reversed the decision of the Civil

Service Commission and held respondent not guilty of nepotism. Who
now may appeal the decision of the Court of Appeals to the Supreme
Court? Certainly not the respondent, who was declared not guilty of
the charge. Nor the complainant George P. Suan, who was merely a
witness for the government. Consequently, the Civil Service
Commission has become the party adversely affected by such ruling,
which seriously prejudices the civil service system. Hence, as an
aggrieved party, it may appeal the decision of the Court of Appeals to
the Supreme Court. By this ruling, we now expressly abandon and
overrule extant jurisprudence that "the phrase ‘party adversely
affected by the decision’ refers to the government employee against
whom the administrative case is filed for the purpose of disciplinary
action which may take the form of suspension, demotion in rank or
salary, transfer, removal or dismissal from office" and not included
are "cases where the penalty imposed is suspension for not more
than thirty (30) days or fine in an amount not exceeding thirty days
salary" or "when the respondent is exonerated of the charges, there
is no occasion for appeal." In other words, we overrule prior decisions
holding that the Civil Service Law "does not contemplate a review of
decisions exonerating officers or employees from administrative
charges" enunciated in Paredes v. Civil Service Commission;
Mendez v. Civil Service Commission; Magpale v. Civil Service
Commission; Navarro v. Civil Service Commission and Export
Processing Zone Authority and more recently Del Castillo v. Civil
Service Commission. (Civil Service Commission v. Dacoycoy)

National Appellate Board of the National Police Commission v.

Mamauag, G.R. No. 149999, 12 August 2005, 466 SCRA 624, 641-
642, citing Mathay, Jr. v. Court of Appeals, 378 Phil. 466, 483-484
(1999)]

RA 6975 itself does not authorize a private complainant to appeal a

decision of the disciplining authority.Sections 43 and 45 of RA 6975
authorize "either party" to appeal in the instances that the law allows
appeal. One party is the PNP member-respondent when the
disciplining authority imposes the penalty of demotion or dismissal
from the service. The other party is the government when the
disciplining authority imposes the penalty of demotion but the
government believes that dismissal from the services is the proper
penalty.

However, the government party that can appeal is not the disciplining
authority or tribunal which previously heard the case and imposed the
penalty of demotion or dismissal from the service. The government
party appealing must be one that is prosecuting the administrative
case against the respondent. Otherwise, an anomalous situation will
result where the disciplining authority or tribunal hearing the case,
instead of being impartial and detached, becomes an active
participant in prosecuting the respondent.

Mathay, Jr. v. Court of Appeals, (decided after Dacoycoy)

To be sure, when the resolutions of the Civil Service Commission

were brought before the Court of Appeals, the Civil Service
Commission was included only as a nominal party. As a quasi-judicial
body, the Civil Service Commission can be likened to a judge who
should "detach himself from cases where his decision is appealed to
a higher court for review."

In instituting G.R. No. 126354, the Civil Service Commission

dangerously departed from its role as adjudicator and became an
advocate. Its mandated function is to "hear and decide administrative
cases instituted by or brought before it directly or on appeal, including
contested appointments and to review decisions and actions of its
offices and agencies," not to litigate.

Pleyto v. Philippine National Police Criminal Investigation and

Detection Group, [G.R. No. 169982, 23 November 2007, 538 SCRA
534, 549]

It is a well-known doctrine that a judge should detach himself from

cases where his decision is appealed to a higher court for review.
The raison d'etre for such doctrine is the fact that a judge is not an
active combatant in such proceeding and must leave the opposing
parties to contend their individual positions and the appellate court to
decide the issues without his active participation. When a judge
actively participates in the appeal of his judgment, he, in a way,
ceases to be judicial and has become adversarial instead.

The court or the quasi-judicial agency must be detached and

impartial, not only when hearing and resolving the case before it, but
even when its judgment is brought on appeal before a higher court.
The judge of a court or the officer of a quasi-judicial agency must
keep in mind that he is an adjudicator who must settle the
controversies between parties in accordance with the evidence and
the applicable laws, regulations, and/or jurisprudence. His judgment
should already clearly and completely state his findings of fact and
law. There must be no more need for him to justify further his
judgment when it is appealed before appellate courts. When the court
judge or the quasi-judicial officer intervenes as a party in the
appealed case, he inevitably forsakes his detachment and
impartiality, and his interest in the case becomes personal since his
objective now is no longer only to settle the controversy between the
original parties (which he had already accomplished by rendering his
judgment), but more significantly, to refute the appellant’s assignment
of errors, defend his judgment, and prevent it from being overturned
on appeal.

Go v. National Police Commission, 338 Phil. 162, 171 (1997)

We conclude that petitioner was denied the due process of law and
that not even the fact that the charge against him is serious and
evidence of his guilt is – in the opinion of his superiors – strong can
compensate for the procedural shortcut evident in the record of this
case. It is precisely in cases such as this that the utmost care be
exercised lest in the drive to clean up the ranks of the police those
who are innocent are denied justice or, through blunder, those who
are guilty are allowed to escape punishment.

Mendoza v. NAPOLCOM, G.R. No. 139658, 21 June 2005, 460

SCRA 399.

The Court settled that the one and only Philippine police force, the
PNP, shall be civilian in character (Section 6, Article XVI of the
Constitution) and, consequently, falls under the civil service pursuant
to Section 2(1), Article IX-B of the Constitution, which states:

Section 2. (1). The civil service embraces all branches, subdivisions,

instrumentalities, and agencies of the Government, including
government-owned or controlled corporations with original charters.

It is already explicitly provided in Section 45 of the DILG Act of 1990

that the decision of the Regional Director imposing upon a PNP
member the administrative penalty of demotion or dismissal from the
service is appealable to the RAB. From the RAB Decision, the
aggrieved party may then appeal to the DILG Secretary.

Section 91 of the DILG Act of 1990 provides:

SEC. 91. Application of Civil Service Laws. – The Civil Service Law
and its implementing rules and regulations shall apply to all personnel
of the Department [DILG].

Consequently, case law on administrative disciplinary proceedings

under the Civil Service Law also applies to administrative disciplinary
proceedings against PNP members. The Civil Service Law referred to
in Section 91 of the DILG Act of 1990 is Subtitle A, Title I, Book V of
the Administrative Code of 1987 (E.O. No. 292). Section 47 of
Chapter 6 thereof provides, inter alia, that in cases where the
decision rendered by a bureau or office (i.e., RAB of the PNP) is
appealable to the Commission, the same may initially be appealed to
the department (i.e., DILG)and finally to the Commission (i.e., CSC).
(Cabada v. Alunan III, 329 Phil. 669 [1996])
PUBLIC OFFICE
Khan v. Ombudsman
SECOND DIVISION
G.R. No. 125296 July 20, 2006
DECISION
CORONA, J.:
This petition for certiorari under Rule 65 of the Rules of Court
addresses the issue of whether public respondents Deputy
Ombudsman (Visayas) and the Ombudsman have jurisdiction over
petitioners Ismael G. Khan, Jr. and Wenceslao L. Malabanan, former
officers of Philippine Airlines (PAL), for violation of Republic Act No.
(RA) 30191 (the Anti-Graft and Corrupt Practices Act).
In February 1989, private respondents Rosauro Torralba and
Celestino Bandala charged petitioners before the Deputy
Ombudsman (Visayas) for violation of RA 3019. In their complaint,
private respondents accused petitioners of using their positions in
PAL to secure a contract for Synergy Services Corporation, a
corporation engaged in hauling and janitorial services in which they
were shareholders.
Petitioners filed an omnibus motion to dismiss the complaint on the
following grounds: (1) the Ombudsman had no jurisdiction over them
since PAL was a private entity and (2) they were not public officers,
hence, outside the application of RA 3019.
In a resolution dated July 13, 1989,2 the Deputy Ombudsman3 denied
petitioners' omnibus motion to dismiss.
On petitioners' first argument, he ruled that, although PAL was
originally organized as a private corporation, its controlling stock was
later acquired by the government through the Government Service
Insurance System (GSIS).4 Therefore, it became a government-
owned or controlled corporation (GOCC) as enunciated in Quimpo v.
Tanodbayan.5
On the second argument, the Deputy Ombudsman held that
petitioners were public officers within the definition of RA 3019,
Section 2 (b). Under that provision, public officers included "elective,
appointive officials and employees, permanent or temporary, whether
in the classified or unclassified or exempt service receiving
compensation, even nominal, from the Government."
The dispositive portion of the Deputy Ombudsman's order read:
WHEREFORE, finding no merit to [petitioners'] OMNIBUS
MOTION TO DISMISS, the same is hereby DENIED and
 petitioners are hereby ordered to submit their answer
within ten (10) days from receipt hereof.6
xxx xxx xxx
Petitioners appealed the order to the Ombudsman. There, they raised
the same issues. Treating the appeal as a motion for reconsideration,
the Ombudsman dismissed it on February 22, 1996. He held that
petitioners were officers of a GOCC, hence, he had jurisdiction over
them.7 He also affirmed the Deputy Ombudsman's ruling that Quimpo
was applicable to petitioners' case.
In this petition for certiorari, with prayer for issuance of a temporary
restraining order, petitioners assail the orders dated July 13, 1989
and February 22, 1996 of the Deputy Ombudsman (Visayas) and the
Ombudsman, respectively. They claim that public respondents acted
without jurisdiction and/or grave abuse of discretion in proceeding
with the investigation of the case against them although they were
officers of a private corporation and not "public officers."8
In support of their petition, petitioners argue that: (1) the
Ombudsman's jurisdiction only covers GOCCs with original charters
and these do not include PAL, a private entity created under the
general corporation law; (2) Quimpo does not apply to the case at bar
and (3) RA 3019 only concerns "public officers," thus, they cannot be
investigated or prosecuted under that law.
We find merit in petitioners' arguments and hold that public
respondents do not have the authority to prosecute them for violation
of RA 3019.
JURISDICTION OF THE OMBUDSMAN OVER GOCCS
IS CONFINED ONLY TO THOSE WITH ORIGINAL
CHARTERS
The 1987 Constitution states the powers and functions of the Office
of the Ombudsman. Specifically, Article XI, Section 13(2) provides:
Sec. 13. The Office of the Ombudsman shall have the
following powers, functions, and duties:
xxx xxx xxx
(2) Direct, upon complaint or at its own instance,
any public official or employee of the Government,
or any subdivision, agency or instrumentality
thereof, as well as any government-owned or
controlled corporation with original charter, to
perform and expedite any act or duty required by
law, or to stop, prevent, and correct any abuse or
 impropriety in the performance of duties. (italics
supplied)
xxx xxx xxx
Based on the foregoing provision, the Office of the Ombudsman
exercises jurisdiction over public officials/ employees of GOCCs with
original charters. This being so, it can only investigate and prosecute
acts or omissions of the officials/employees of government
corporations. Therefore, although the government later on acquired
the controlling interest in PAL, the fact remains that the latter did not
have an "original charter" and its officers/employees could not be
investigated and/or prosecuted by the Ombudsman.
In Juco v. National Labor Relations Commission,9 we ruled that the
phrase "with original charter" means "chartered by special law as
distinguished from corporations organized under the Corporation
Code." PAL, being originally a private corporation seeded by private
capital and created under the general corporation law, does not fall
within the jurisdictional powers of the Ombudsman under Article XI,
Section 13(2) of the Constitution. Consequently, the latter is devoid of
authority to investigate or prosecute petitioners.
Quimpo Not Applicable
to the Case at Bar
Quimpo10 is not applicable to the case at bar. In that case, Felicito
Quimpo charged in 1984 two officers of PETROPHIL in the
Tanodbayan (now Ombudsman) for violation of RA 3019. These
officers sought the dismissal of the case on the ground that the
Tanodbayan had no jurisdiction over them as officers/employees of a
private company. The Court declared that the Tanodbayan had
jurisdiction over them because PETROPHIL ceased to be a private
entity when Philippine National Oil Corporation (PNOC) acquired its
shares.
In hindsight, although Quimpo appears, on first impression, relevant
to this case (like PETROPHIL, PAL's shares were also acquired by
the government), closer scrutiny reveals that it is not actually on all
fours with the facts here.
In Quimpo, the government acquired PETROPHIL to "perform
functions related to government programs and policies on oil."11 The
fact that the purpose in acquiring PETROPHIL was for it to undertake
governmental functions related to oil was decisive in sustaining the
Tanodbayan's jurisdiction over it. This was certainly not the case with
PAL. The records indicate that the government acquired the
controlling interest in the airline as a result of the conversion into
equity of its unpaid loans in GSIS. No governmental functions at all
were involved.
Furthermore, Quimpo was decided prior to the 1987 Constitution. In
fact, it was the 1973 Constitution which the Court relied on in
concluding that the Tanodbayan had jurisdiction over PETROPHIL's
accused officers. Particularly, the Court cited Article XIII, Section 6:
SEC. 6. The Batasang Pambansa shall create an office of
the Ombudsman, to be known as the Tanodbayan, which
shall receive and investigate complaints relative to public
office, including those in government-owned or controlled
corporations, make appropriate recommendations, and in
case of failure of justice as defined by law, file and
prosecute the corresponding criminal, civil, or
administrative case before the proper court or body.
(italics supplied)
The term "government-owned or controlled corporations" in the 1973
Constitution was qualified by the 1987 Constitution to refer only to
those with original charters.12
Petitioners, as then Officers of
PAL, were not Public Officers
Neither the 1987 Constitution nor RA 6670 (The Ombudsman Act of
1989) defines who "public officers" are. Instead, its varied definitions
and concepts are found in different statutes13 and jurisprudence.14
Usually quoted in our decisions is Mechem, a recognized authority on
the subject. In the 2002 case of Laurel v. Desierto,15 the Court
extensively quoted his exposition on the term "public officers":
A public office is the right, authority and duty, created and
conferred by law, by which, for a given period, either fixed
by law or enduring at the pleasure of the creating power,
an individual is invested with some portion of the
sovereign functions of the government, to be exercised by
him for the benefit of the public. The individual so
invested is a public officer.
The characteristics of a public office, according to
Mechem, include the delegation of sovereign functions, its
creation by law and not by contract, an oath, salary,
continuance of the position, scope of duties, and the
designation of the position as an office.
xxx xxx xxx
 Mechem describes the delegation to the individual of the
sovereign functions of government as "[t]he most
important characteristic" in determining whether a position
is a public office or not.
The most important characteristic which distinguishes an
office from an employment or contract is that the creation
and conferring of an office involves a delegation to the
individual of some of the sovereign functions of
government to be exercised by him for the benefit of the
public; − that some portion of the sovereignty of the
country, either legislative, executive, or judicial, attaches,
for the time being, to be exercised for the public benefit.
Unless the powers conferred are of this nature, the
individual is not a public officer.16 (italics supplied)
From the foregoing, it can be reasonably inferred that "public officers"
are those endowed with the exercise of sovereign executive,
legislative or judicial functions.17 The explication of the term is also
consistent with the Court's pronouncement in Quimpo that, in the
case of officers/employees in GOCCs, they are deemed "public
officers" if their corporations are tasked to carry out governmental
functions.
In any event, PAL has since reverted to private ownership and we
find it pointless to scrutinize the implications of a legal issue that
technically no longer exists.
WHEREFORE, the petition is hereby GRANTED. Public respondents
Deputy Ombudsman (Visayas) and Office of the Ombudsman are
restrained from proceeding with the investigation or prosecution of
the complaint against petitioners for violation of RA 3019.
Accordingly, their assailed orders of July 13, 1989 and February 22,
1996, respectively, are SET ASIDE and ANNULLED.
SO ORDERED.
Puno, Sandoval-Gutierrez, Azcuna, Garcia, J.J., concur.

Footnotes
* In a resolution dated March 24, 1999, the Court
dismissed the petition against Rosauro Torralba who died
in December 1997. The resolution became final and
executory on June 10, 1999. Entry of judgment was
accordingly made on the same day.
** Respondent died on April 23, 1999 per certified true
copy of his death certificate furnished by his counsel.
Rollo, p. 220.
1
Approved on August 17, 1960.
2
Rollo, pp. 20-24.
3
Hon. Juan M. Hagad.
4
GSIS converted PAL's outstanding loans into equity
shares.
5
230 Phil. 232 (1986). In this case, the Philippine
National Oil Corporation (PNOC) acquired PETROPHIL, a
private corporation. Here, the Court declared that
PETROPHIL shed off its private status and became a
subsidiary of PNOC. Its officers, who were then accused
of violating the Anti-Graft and Corrupt Practices Act (RA
3019), were considered "public officers" under the
jurisdiction of the Tanodbayan (now Ombudsman).
6
Supra at note 1.
7
Rollo, pp. 25-29. Issued by Marilou Ancheta-Mejica,
Graft Investigation Officer I, as approved by then
Ombudsman Aniano A. Desierto.
8
Id., p. 5.
9
343 Phil. 307 (1997).
10
Supra at note 5.
11
Id.
12
See Juco, supra at note 9.
13
Public officials include elective and appointive officials
and employees, permanent or temporary, whether in the
career and non-career service, including military and
police personnel whether or not they receive
compensation, regardless of amount. (Section 2[b], RA
6713 [Code of Conduct and Standards for Public
Officials]).
Public officer is any person holding any public office in the
Government of the Republic of the Philippines by virtue of
an appointment, election or contract. (Section 1[a], RA
7080 [Act Defining and Penalizing the Crime of Plunder]).
Public officers include elective and appointive officials and
employees, permanent or temporary, whether in the
classified or unclassified or exempt service receiving
compensation, even nominal, from the government x x x
(Section 2[b], RA 3019 [Anti-Graft and Corrupt Practices
Act]).
Any person who, by direct provision of law, popular
election or appointment by competent authority, shall take
part in the performance of public functions in the
Government of the Philippine Islands, or shall perform in
the said Government or any of its branches public duties
as an employee, agent or subordinate official, of any rank
or class, shall be deemed to be a public officer. (Article
203, Revised Penal Code).
14
The term includes only persons who perform some of
the functions of the Government of the Philippine Islands.
(U.S. v. Smith, 39 Phil. 537 [1919]).
One who has a duty to perform concerning the public; and
he is not less a public officer when his duty is confined to
narrow limits, because it is his duty and its nature which
makes him a public officer and not the extent of his
authority. (Manila Terminal Co. v. CIR, 83 Phil. 567
[1949]).
15
430 Phil. 658 (2002).
16
Id., pp. 672-673. Citing F.R. MECHEM, A TREATISE
ON THE LAW OF PUBLIC OFFICES AND OFFICERS, §
1.
17
Supra.
Notes:
Quimpo v. Tanodbayan
EN BANC
G.R. No. 72553 December 2, 1986

MELENCIO-HERRERA, J.:
This Petition for certiorari address itself to the pivotal issue of whether
or not PETROPHIL Corporation, a subsidiary of the Philippine
National Oil Company (PNOC), is a government-owned or controlled
corporation, whose employees fall under Tanodbayan jurisdiction.
The former Tanodbayan, in a Decision dated March 15, 1985, in TBP
Case No. 84-01422 entitled "Felicito R. Quimpo vs. Greg Dimaano
and Danny F. Remo" disowned its jurisdiction, a view shared by
private respondents.
However, the incumbent Solicitor General, concurred in by the
present Tanodbayan, and by petitioner, uphold the Tanodbayan
jurisdiction.
The factual antecedents are aptly summarized as follows:
On July 17, 1984, petitioner filed with respondent
Tanodbayan a complaint against private
respondents for violation of Republic Act No. 3091
(Anti- Graft and Corrupt Practices Act) approved on
August 17, 1960.
Petitioner alleged that Admiral Adjusters and
Surveyors, Inc. (AASI), of which he was the
president, was engaged by Petrophil Corporation to
render survey services for one (1) year from March
1, 1982 to February 28, 1983; that upon the
expiration of the contract, it was renewed for
another period of one (1) year, from March 1, 1983
to February 2, 1984; that sometime in October,
1983, private respondents Greg Dimaano and
Danny Remo, as manager and analyst,
respectively, of the Bulk Distribution Department
and MPED of Petrophil Corporation, caused the
withholding of the fees due AASI and required AASI
to submit an explanation of the losses caused by
leaking valves as reflected in ASSI's survey reports;
that despite AASI's explanation, private
respondents still refused to release the payments
and even threatened to forfeit AASI's performance
 bond and claim damages and losses from AASI;
that despite AASI's submission of several
explanations, private respondents refused to
release the fees amounting to P147,300.00.
Petitioner further alleged that private respondents
favored Greater Marine Cargo Surveyors to enable
it to win the bidding in January 1984. 1
Private respondents moved to dismiss the Complaint alleging lack of
jurisdiction of the Tanodbayan, which Motion was opposed by the
petitioner.
On March 15, 1985, the Tanodbayan issued his questioned Decision
maintaining that he had no jurisdiction over government-owned or
controlled corporations created under the Corporation Law. He relied
on Opinion No. 62, Series of 1976 of then Secretary of Justice,
Vicente Abad Santos, holding that when Section 6, Article XIII of the
1973 Constitution mentions "government-owned or controlled
corporations," "the intent is only to those created by special law."
Petitioner's Motion for Reconsideration of said Decision was denied
by the Tanodbayan on October 7, 1985, hence, this Petition for
Certiorari, to which we gave due course.
Sections 5 and 6, Article XIII of the 1975 Constitution, on the
Sandiganbayan and Tanodbayan, adopted in the so-called Freedom
Constitution, provide:
SEC. 5. The Batasang Pambansa shall create a
special court, to be known as Sandiganbayan,
which shall have jurisdiction over criminal and civil
case involving graft and corrupt practices and such
other offenses committed by public officers and
employees, including those in government-owned or
controlled corporations, in relation to their office as
may be determined by law.
SEC. 6. The Batasang Pambansa shall create an
office of the Ombudsman, to be known as
Tanodbayan, which shall receive and investigate
complaints relative to public office, including those
in government-owned or controlled corporations,
make appropriate recommendations, and in case of
failure of justice as defined by law, file and
prosecute the corresponding criminal civil or
 administrative case before the proper court or body.
(emphasis supplied).
Sections 10(a) and (f) of Presidential Decree No. 1630 also
enumerate the powers of the Tanodbayan thus:
SEC. 10. Powers. — The Tanod bayan shall have
the following powers:
(a) He may investigate, on complaint by any person
or on his own motion or initiative, any administrative
act whether amounting to any criminal offense or
not of any administrative agency including any
government owned or controlled corporation;
xxx xxx xxx
(f) He may file and prosecute civil and
administrative cases involving graft and corrupt
practices and such other offenses committed by
public officers and employees, including those in
govemment-owned or controlled corporations, in
relation to their office; (Emphasis
supplied).<äre||anº•1àw>
So does the definition of "Government" in Section 2(a) of the Anti-
Graft and Corrupt Practices Act include government corporations:
Sec. 2. Definition of terms. — (a) 'Government'
includes the national government, the local
governments, the govemment-owned and controlled
corporations, and an other instrumentalities or
agencies of the Republic of the Philippines and their
branches. (Emphasis supplied)
Evident is the intent to include employees of government-owned or
controlled corporations within the jurisdiction of the Tanodbayan and
the Sandiganbayan.
Is PETROPHIL a government-owned or controlled corporation whose
employees fall within the jurisdictional purview of the Tanodbayan for
purposes of the Anti-Graft and Corrupt Practices Act?
We uphold the Tanodbayan jurisdiction.
It has to be conceded that PETROPHIL was not created by special
law. As the incumbent Solicitor General has pointed out, it was
originally created as a private corporation under the Corporation Law
with the name Standard Vacuum Oil Company (STANVAC).
STANVAC was taken over by Esso Philippines, which was, in turn
bought by Esso Eastern Standard. Eventually, Esso Eastern
Standard was purchased by the Philippine National Oil Corporation
(PNOC), and its corporate name was changed to Petrophil
Corporation.
While it may be that PETROPHIL was not originally "created" as a
government-owned or controlled corporation, after it was acquired by
PNOC, which is a government-owned or controlled corporation,
PETROPHIL became a subsidiary of PNOC and thus shed-off its
private status. It is now funded and owned by the government as, in
fact, it was acquired to perform functions related to government
programs and policies on oil a vital commodity in the economic life of
the nation. It was acquired not temporarily but as a permanent
adjunct to perform essential government or government-related
functions, as the marketing arm of PNOC to assist the latter in selling
and distributing oil and petroleum products to assure and maintain an
adequate and stable domestic supply.
lt should make no substantial difference that it was not originally
"created" as a government-owned or controlled corporation. What is
decisive is that it has since been acquired by the Government to
perform functions related to government programs and policies on oil.
Opinion No. 62, Series of 1976 of the then Secretary of Justice must
be deemed superseded by the doctrine laid down by this Court en
banc, in the case of National Housing vs. Juco, 2 in pari materia to the
case at bar, which held that
for purposes of coverage in the Civil Service,
employees of government-owned or controlled
corporation whether created by special law or
formed as subsidiaries are covered by the Civil
Service Law, not the Labor Code, and the fact that
private corporations owned or controlled by the
government may be created by special charter does
not mean that such corporation not created by
special law are not covered by the Civil Service.
The meaning thus given to "government-owned or controlled
corporations" for purposes of the civil service provision should
likewise apply for purposes of the Tanodbayan and Sandiganbayan
provisions, otherwise, incongruity would result, and a government-
owned corporation could create as many subsidiary corporations
under the Corporation Code as it wishes, which would then be free
from strict accountability and could escape the liabilities and
responsibilities provided for by law. This device was liberally made
use of during the past regime to the detriment of budgetary restraints
and of fiscal accountability by "private" corporations thus created. As
well explained in the National Housing case:
The infirmity of the respondents' position lies in its
permitting a circumvention or emasculation of
Section I, Article XII-B of the Constitution. It would
be possible for a regular ministry of government to
create a host of subsidiary corporations under the
Corporation Code funded by a willing legislature. A
government-owned corporation could create several
subsidiary corporations. These subsidiary
corporations would enjoy the best of two worlds.
Their officials and employees would be privileged
individuals, free from the strict accountability
required by the Civil Service Decree and the
regulations of the Commission on Audit. Their
income would not be subject to the competitive
restraints of the open market not to the terms and
conditions of civil service employment. Conceivably,
all government-owned or controlled corporations
could be created, no longer by special charters, but
through incorporation under the general law. The
constitutional amendment including such
corporations in the embrace of the civil service
would cease to have application Certainly, such a
situation cannot be allowed to exist. (NHC vs.
NLRC, p. 8)
It is true that the National Housing case held that the Decision therein
"refers to a corporation created as a government-owned or controlled
entity and does not cover cases involving private firms taken over by
the government in foreclosure or similar proceedings" judgment on
which is reserved "until the appropriate controversy is brought to the
Court." In the case of PETROPHIL, however, it is clear that it was
acquired by purchase precisely, as explained above, to assist a
government-owned or controlled corporation, the PNOC, in the
performance of its government-related functions. the acquisition was
not simply to recover the government's financial exposure as in
"foreclosure or similar proceedings."
Private respondents allege, however, that PETROPHII, is possessed
of unique characteristics that endow it with all the vestiges of a
private corporation, such as (1) its employees are not members of the
Government Service Insurance System but of the Social Security
System, which covers private corporations; (2) they are covered by
the Labor Code and other labor laws and not by civil service rules; (3)
PETROPHIL was never created pursuant to the express provisions of
the PNOC charter; and (4) it is engaged in the highly competitive
business of petroleum distribution/retail and its operation is profit-
oriented. Assuming these to be so, they are internal matters not
determinative of its real corporate classification. Besides, its
exclusion from GSIS coverage is not by virtue of its private character
but by operation of law pursuant to Section 15 of P.D. No. 405,
amending the PNOC charter, specifically providing that, "PNOC
subsidiaries organized to undertake purely business ventures shall
not, as a matter of right, be subject to the provisions of the
Government Service Insurance System, as provided for under R.A.
No. 186, as amended, as well as to any law, executive orders and
decrees relating to leave of absences, retirement privileges, regular
working hours, and other government employee benefits." And even
granting that it is profit-oriented, the fact remains that it was acquired
with capital belonging to the Government and Govern ment money is
utilized in its operations.
In other words, there can be no gainsaying that as of the date of its
acquisition by the Government utilizing public funds, PETROPHIL,
while retaining its own corporate existence, became a government-
owned or controlled corporation within the Constitutional precept. Its
employees, therefore, are public servants falling within the
investigatory and prosecutory jurisdiction of the Tanodbayan for
purposes of the Anti-Graft & Corrupt Practices Act.
Otherwise, a major policy of Government, which is to eradicate, or at
the very least minimize, the graft and corruption that has permeated
the fabric of the public service, like a malignant social cancer, would
be seriously undermined. In fact, section 1 of the Anti-Graft and
Corrupt Practices Act seeks to repress not only certain acts of public
officers but also of "private persons alike, which constitute graft or
corrupt practices or which may lead thereto,
WHEREFORE, judgment is hereby rendered setting aside the
Tanodbayan Decision, dated March 15, 1985, and its Order of
October 7, 1985, and requiring the incumbent Tanodbayan to
investigate and act on petitioner's complaint against private
respondents Greg Dimaano and Danny Remo. No costs.
SO ORDERED.
Teehankee, C.J., Feria, Yap, Fernan, Narvasa, Alampay, Gutierrez,
Jr., Cruz, Paras and Feliciano, JJ., concur.

Footnotes
1 pp. 1-2, Comment of Solicitor General.
2 134 SCRA 172 [1985].
Notes:
Eugenio v. CSC
EN BANC

G.R. No. 115863 March 31, 1995

PUNO, J.:
The power of the Civil Service Commission to abolish the Career
Executive Service Board is challenged in this petition for certiorari
and prohibition.
First the facts. Petitioner is the Deputy Director of the Philippine
Nuclear Research Institute. She applied for a Career Executive
Service (CES) Eligibility and a CESO rank on August 2, 1993, she
was given a CES eligibility. On September 15, 1993, she was
recommended to the President for a CESO rank by the Career
Executive Service Board. 1
All was not to turn well for petitioner. On October 1, 1993, respondent
Civil Service Commission2 passed Resolution No. 93-4359, viz:
RESOLUTION NO. 93-4359
WHEREAS, Section 1(1) of Article IX-B provides
that Civil Service shall be administered by the Civil
Service Commission, . . .;
WHEREAS, Section 3, Article IX-B of the 1987
Philippine Constitution provides that "The Civil
Service Commission, as the central personnel
agency of the government, is mandated to establish
a career service and adopt measures to promote
morale, efficiency, integrity, responsiveness,
progresiveness and courtesy in the civil service, . .
.";
WHEREAS, Section 12 (1), Title I, Subtitle A, Book
V of the Administrative Code of 1987 grants the
Commission the power, among others, to administer
and enforce the constitutional and statutory
provisions on the merit system for all levels and
ranks in the Civil Service;
WHEREAS, Section 7, Title I, Subtitle A, Book V of
the Administrative Code of 1987 Provides, among
others, that The Career Service shall be
characterized by (1) entrance based on merit and
fitness to be determined as far as practicable by
 competitive examination, or based highly technical
qualifications; (2) opportunity for advancement to
higher career positions; and (3) security of tenure;
WHEREAS, Section 8 (c), Title I, Subtitle A, Book V
of the administrative Code of 1987 provides that
"The third level shall cover Positions in the Career
Executive Service";
WHEREAS, the Commission recognizes the
imperative need to consolidate, integrate and unify
the administration of all levels of positions in the
career service.
WHEREAS, the provisions of Section 17, Title I,
Subtitle A. Book V of the Administrative Code of
1987 confers on the Commission the power and
authority to effect changes in its organization as the
need arises.
WHEREAS, Section 5, Article IX-A of the
Constitution provides that the Civil Service
Commission shall enjoy fiscal autonomy and the
necessary implications thereof;
NOW THEREFORE, foregoing premises
considered, the Civil Service Commission hereby
resolves to streamline reorganize and effect
changes in its organizational structure. Pursuant
thereto, the Career Executive Service Board, shall
now be known as the Office for Career Executive
Service of the Civil Service Commission.
Accordingly, the existing personnel, budget,
properties and equipment of the Career Executive
Service Board shall now form part of the Office for
Career Executive Service.
The above resolution became an impediment. to the appointment of
petitioner as Civil Service Officer, Rank IV. In a letter to petitioner,
dated June 7, 1994, the Honorable Antonio T. Carpio, Chief
Presidential legal Counsel, stated:
xxx xxx xxx
On 1 October 1993 the Civil Service Commission
issued CSC Resolution No. 93-4359 which
abolished the Career Executive Service Board.
 Several legal issues have arisen as a result of the
issuance of CSC Resolution No. 93-4359, including
whether the Civil Service Commission has authority
to abolish the Career Executive Service Board.
Because these issues remain unresolved, the Office
of the President has refrained from considering
appointments of career service eligibles to career
executive ranks.
xxx xxx xxx
You may, however, bring a case before the
appropriate court to settle the legal issues arising
from issuance by the Civil Service Commission of
CSC Resolution No. 93-4359, for guidance of all
concerned.
Thank You.
Finding herself bereft of further administrative relief as the Career
Executive Service Board which recommended her CESO Rank IV
has been abolished, petitioner filed the petition at bench to annul,
among others, resolution No. 93-4359. The petition is anchored on
the following arguments:
A.
IN VIOLATION OF THE CONSTITUTION,
RESPONDENT COMMISSION USURPED THE
LEGISLATIVE FUNCTIONS OF CONGRESS
WHEN IT ABOLISHED THE CESB, AN OFFICE
CREATED BY LAW, THROUGH THE ISSUANCE
OF CSC: RESOLUTION NO. 93-4359;
B.
ALSO IN VIOLATION OF THE CONSTITUTION,
RESPONDENT CSC USURPED THE
LEGISLATIVE FUNCTIONS OF CONGRESS
WHEN IT ILLEGALLY AUTHORIZED THE
TRANSFER OF PUBLIC MONEY, THROUGH THE
ISSUANCE OF CSC RESOLUTION NO. 93-4359.
Required to file its Comment, the Solicitor General agreed with the
contentions of petitioner. Respondent Commission, however, chose
to defend its ground. It posited the following position:
ARGUMENTS FOR PUBLIC RESPONDENT-CSC
 I. THE INSTANT PETITION STATES NO CAUSE
OF ACTION AGAINST THE PUBLIC
RESPONDENT-CSC.
II. THE RECOMMENDATION SUBMITTED TO THE
PRESIDENT FOR APPOINTMENT TO A CESO
RANK OF PETITIONER EUGENIO WAS A VALID
ACT OF THE CAREER EXECUTIVE SERVICE
BOARD OF THE CIVIL SERVICE COMMISSION
AND IT DOES NOT HAVE ANY DEFECT.
III. THE OFFICE OF THE PRESIDENT IS
ESTOPPED FROM QUESTIONING THE VALIDITY
OF THE RECOMMENDATION OF THE CESB IN
FAVOR OF PETITIONER EUGENIO SINCE THE
PRESIDENT HAS PREVIOUSLY APPOINTED TO
CESO RANK FOUR (4) OFFICIALS SIMILARLY
SITUATED AS SAID PETITIONER.
FURTHERMORE, LACK OF MEMBERS TO
CONSTITUTE A QUORUM. ASSUMING THERE
WAS NO QUORUM, IS NOT THE FAULT OF
PUBLIC RESPONDENT CIVIL SERVICE
COMMISSION BUT OF THE PRESIDENT WHO
HAS THE POWER TO APPOINT THE OTHER
MEMBERS OF THE CESB.
IV. THE INTEGRATION OF THE CESB INTO THE
COMMISSION IS AUTHORIZED BY LAW (Sec. 12
(1), Title I, Subtitle A, Book V of the Administrative
Code of the 1987). THIS PARTICULAR ISSUE HAD
ALREADY BEEN SETTLED WHEN THE
HONORABLE COURT DISMISSED THE PETITION
FILED BY THE HONORABLE MEMBERS OF THE
HOUSE OF REPRESENTATIVES, NAMELY:
SIMEON A. DATUMANONG, FELICIANO R.
BELMONTE, JR., RENATO V. DIAZ, AND
MANUEL M. GARCIA IN G.R. NO. 114380. THE
AFOREMENTIONED PETITIONERS ALSO
QUESTIONED THE INTEGRATION OF THE CESB
WITH THE COMMISSION.
We find merit in the petition.3
The controlling fact is that the Career Executive Service Board
(CESB) was created in the Presidential Decree (P.D.) No. 1 on
September 1, 19744 which adopted the Integrated Plan. Article IV,
Chapter I, Part of the III of the said Plan provides:
Article IV — Career Executive Service
1. A Career Executive Service is created to form a
continuing pool of well-selected and development
oriented career administrators who shall provide
competent and faithful service.
2. A Career Executive Service hereinafter referred
to in this Chapter as the Board, is created to serve
as the governing body of the Career Executive
Service. The Board shall consist of the Chairman of
the Civil Service Commission as presiding officer,
the Executive Secretary and the Commissioner of
the Budget as ex-officio members and two other
members from the private sector and/or the
academic community who are familiar with the
principles and methods of personnel administration.
xxx xxx xxx
5. The Board shall promulgate rules, standards and
procedures on the selection, classification,
compensation and career development of members
of the Career Executive Service. The Board shall
set up the organization and operation of the service.
(Emphasis supplied)
It cannot be disputed, therefore, that as the CESB was created by
law, it can only be abolished by the legislature. This follows an
unbroken stream of rulings that the creation and abolition of public
offices is primarily a legislative function. As aptly summed up in AM
JUR 2d on Public Officers and
Employees, 5 viz:
Except for such offices as are created by the
Constitution, the creation of public offices is
primarily a legislative function. In so far as the
legislative power in this respect is not restricted by
constitutional provisions, it supreme, and the
legislature may decide for itself what offices are
suitable, necessary, or convenient. When in the
exigencies of government it is necessary to create
and define duties, the legislative department has the
discretion to determine whether additional offices
 shall be created, or whether these duties shall be
attached to and become ex-officio duties of existing
offices. An office created by the legislature is wholly
within the power of that body, and it may prescribe
the mode of filling the office and the powers and
duties of the incumbent, and if it sees fit, abolish the
office.
In the petition at bench, the legislature has not enacted any law
authorizing the abolition of the CESB. On the contrary, in all the
General Appropriations Acts from 1975 to 1993, the legislature has
set aside funds for the operation of CESB. Respondent Commission,
however, invokes Section 17, Chapter 3, Subtitle A. Title I, Book V of
the Administrative Code of 1987 as the source of its power to abolish
the CESB. Section 17 provides:
Sec. 17. Organizational Structure. — Each office of
the Commission shall be headed by a Director with
at least one Assistant Director, and may have such
divisions as are necessary independent
constitutional body, the Commission may effect
changes in the organization as the need arises.
But as well pointed out by petitioner and the Solicitor General,
Section 17 must be read together with Section 16 of the said Code
which enumerates the offices under the respondent Commission, viz:
Sec. 16. Offices in the Commission. — The
Commission shall have the following offices:
(1) The Office of the Executive Director headed by
an Executive Director, with a Deputy Executive
Director shall implement policies, standards, rules
and regulations promulgated by the Commission;
coordinate the programs of the offices of the
Commission and render periodic reports on their
operations, and perform such other functions as
may be assigned by the Commission.
(2) The Merit System Protection Board composed of
a Chairman and two (2) members shall have the
following functions:
xxx xxx xxx
(3) The Office of Legal Affairs shall provide the
Chairman with legal advice and assistance; render
counselling services; undertake legal studies and
researches; prepare opinions and ruling in the
interpretation and application of the Civil Service
law, rules and regulations; prosecute violations of
such law, rules and regulations; and represent the
Commission before any court or tribunal.
(4) The Office of Planning and Management shall
formulate development plans, programs and
projects; undertake research and studies on the
different aspects of public personnel management;
administer management improvement programs;
and provide fiscal and budgetary services.
(5) The Central Administrative Office shall provide
the Commission with personnel, financial, logistics
and other basic support services.
(6) The Office of Central Personnel Records shall
formulate and implement policies, standards, rules
and regulations pertaining to personnel records
maintenance, security, control and disposal; provide
storage and extension services; and provide and
maintain library services.
(7) The Office of Position Classification and
Compensation shall formulate and implement
policies, standards, rules and regulations relative to
the administration of position classification and
compensation.
(8) The Office of Recruitment, Examination and
Placement shall provide leadership and assistance
in developing and implementing the overall
Commission programs relating to recruitment,
execution and placement, and formulate policies,
standards, rules and regulations for the proper
implementation of the Commission's examination
and placement programs.
(9) The Office of Career Systems and Standards
shall provide leadership and assistance in the
formulation and evaluation of personnel systems
and standards relative to performance appraisal,
merit promotion, and employee incentive benefit
and awards.
(10) The Office of Human Resource Development
shall provide leadership and assistance in the
development and retention of qualified and efficient
work force in the Civil Service; formulate standards
for training and staff development; administer
service-wide scholarship programs; develop training
literature and materials; coordinate and integrate all
training activities and evaluate training programs.
(11) The Office of Personnel Inspection and Audit
shall develop policies, standards, rules and
regulations for the effective conduct or inspection
and audit personnel and personnel management
programs and the exercise of delegated authority;
provide technical and advisory services to Civil
Service Regional Offices and government agencies
in the implementation of their personnel programs
and evaluation systems.
(12) The Office of Personnel Relations shall provide
leadership and assistance in the development and
implementation of policies, standards, rules and
regulations in the accreditation of employee
associations or organizations and in the adjustment
and settlement of employee grievances and
management of employee disputes.
(13) The Office of Corporate Affairs shall formulate
and implement policies, standards, rules and
regulations governing corporate officials and
employees in the areas of recruitment, examination,
placement, career development, merit and awards
systems, position classification and compensation,
performing appraisal, employee welfare and benefit,
discipline and other aspects of personnel
management on the basis of comparable industry
practices.
(14) The Office of Retirement Administration shall
be responsible for the enforcement of the
constitutional and statutory provisions, relative to
retirement and the regulation for the effective
implementation of the retirement of government
officials and employees.
 (15) The Regional and Field Offices. — The
Commission shall have not less than thirteen (13)
Regional offices each to be headed by a Director,
and such field offices as may be needed, each to be
headed by an official with at least the rank of an
Assistant Director.
As read together, the inescapable conclusion is that
respondent Commission's power to reorganize is limited
to offices under its control as enumerated in Section 16,
supra. From its inception, the CESB was intended to be
an autonomous entity, albeit administratively attached to
respondent Commission. As conceptualized by the
Reorganization Committee "the CESB shall be
autonomous. It is expected to view the problem of
building up executive manpower in the government with a
broad and positive outlook." 6 The essential autonomous
character of the CESB is not negated by its attachment to
respondent Commission. By said attachment, CESB was
not made to fall within the control of respondent
Commission. Under the Administrative Code of 1987, the
purpose of attaching one functionally inter-related
government agency to another is to attain "policy and
program coordination." This is clearly etched out in
Section 38(3), Chapter 7, Book IV of the aforecited Code,
to wit:
(3) Attachment. — (a) This refers to the lateral
relationship between the department or its
equivalent and attached agency or corporation for
purposes of policy and program coordination. The
coordination may be accomplished by having the
department represented in the governing board of
the attached agency or corporation, either as
chairman or as a member, with or without voting
rights, if this is permitted by the charter; having the
attached corporation or agency comply with a
system of periodic reporting which shall reflect the
progress of programs and projects; and having the
department or its equivalent provide general policies
through its representative in the board, which shall
 serve as the framework for the internal policies of
the attached corporation or agency.
Respondent Commission also relies on the case of Datumanong, et
al., vs. Civil Service Commission, G. R. No. 114380 where the
petition assailing the abolition of the CESB was dismissed for lack of
cause of action. Suffice to state that the reliance is misplaced
considering that the cited case was dismissed for lack of standing of
the petitioner, hence, the lack of cause of action.
IN VIEW WHEREOF, the petition is granted and Resolution No. 93-
4359 of the respondent Commission is hereby annulled and set
aside. No costs.
SO ORDERED.
Narvasa, C.J., Feliciano, Padilla, Bidin, Regalado, Davide, Jr.,
Romero, Bellosillo, Melo, Quiason, Vitug, Kapunan and Mendoza,
JJ., concur.

Footnotes
1 Together with twenty-six (26) others.
2 Patricia A. Sto. Tomas (Chairman), Ramon P.
Ereneta, Jr., (member) and Thelma P. Gaminde
(member).
3 On February 13, 1995, respondent CSC
manifested that the President appointed petitioner
to CESO rank on January 9, 1995. Her
appointment, however, has not rendered moot the
broader issue of whether or not the abolition of
Career Executive Service Board is valid.
4 P. D. No. 1 was later amended by P.D. No. 336
and P.D. No. 367 on the composition of the CESB;
P.D. No. 807 and E.O. No. 292 (Administrative
Code of 1987) reiterated the functions of the CESB.
The General Appropriations Acts from 1975 to 1993
also uniformly appropriated funds for the CESB.
5 63 AM JUR 2d section 30.
6 Reorganization Panel Reports, Vol. II, pp. 16 to 49
as cited in Petition, p. 17.
Notes:
Buklod Ng Kawaning EIIB vs. Zamora
EN BANC
G.R. Nos. 142801-802 July 10, 2001
SANDOVAL-GUTIERREZ, J.:
In this petition for certiorari, prohibition and mandamus, petitioners
Buklod Ng Kawaning EIIB, Cesar Posada, Remedios Princesa,
Benjamin Kho, Benigno Manga and Lulu Mendoza, for themselves
and in behalf of others with whom they share a common or general
interest, seek the nullification of Executive Order No. 1911 and
Executive Order No. 2232 on the ground that they were issued by
the Office of the President with grave abuse of discretion and in
violation of their constitutional right to security of tenure.
The facts are undisputed:
On June 30, 1987, former President Corazon C. Aquino, issued
Executive Order No. 1273 establishing the Economic Intelligence and
Investigation Bureau (EIIB) as part of the structural organization of
the Ministry of Finance.4 The EIIB was designated to perform the
following functions:
"(a) Receive, gather and evaluate intelligence reports and
information and evidence on the nature, modes and
extent of illegal activities affecting the national economy,
such as, but not limited to, economic sabotage,
smuggling, tax evasion, and dollar-salting, investigate the
same and aid in the prosecution of cases;
(b) Coordinate with external agencies in monitoring the
financial and economic activities of persons or entities,
whether domestic or foreign, which may adversely affect
national financial interest with the goal of regulating,
controlling or preventing said activities;
(c) Provide all intelligence units of operating Bureaus or
Offices under the Ministry with the general framework and
guidelines in the conduct of intelligence and investigating
works;
(d) Supervise, monitor and coordinate all the intelligence
and investigation operations of the operating Bureaus and
Offices under the Ministry;
(e) Investigate, hear and file, upon clearance by the
Minister, anti-graft and corruption cases against
personnel of the Ministry and its constituents units;
 (f) Perform such other appropriate functions as may be
assigned by the Minister or his deputies."5
In a desire to achieve harmony of efforts and to prevent possible
conflicts among agencies in the course of their anti-smuggling
operations, President Aquino issued Memorandum Order No. 225 on
March 17, 1989, providing, among others, that the EIIB "shall be the
agency of primary responsibility for anti-smuggling operations in all
land areas and inland waters and waterways outside the areas of
sole jurisdiction of the Bureau of Customs."6
Eleven years after, or on January 7, 2000, President Joseph Estrada
issued Executive Order No. 191 entitled "Deactivation of the
Economic Intelligence and Investigation Bureau."7 Motivated by the
fact that "the designated functions of the EIIB are also being
performed by the other existing agencies of the government" and that
"there is a need to constantly monitor the overlapping of functions"
among these agencies, former President Estrada ordered the
deactivation of EIIB and the transfer of its functions to the Bureau of
Customs and the National Bureau of Investigation.
Meanwhile, President Estrada issued Executive Order No. 1968
creating the Presidential Anti-Smuggling Task Force "Aduana."9
Then the day feared by the EIIB employees came. On March 29,
2000, President Estrada issued Executive Order No. 22310 providing
that all EIIB personnel occupying positions specified therein shall be
deemed separated from the service effective April 30, 2000, pursuant
to a bona fide reorganization resulting to abolition, redundancy,
merger, division, or consolidation of positions.11
Agonizing over the loss of their employment, petitioners now come
before this Court invoking our power of judicial review of Executive
Order Nos. 191 and 223. They anchor their petition on the following
arguments:
"A
Executive Order Nos. 191 and 223 should be annulled
as they are unconstitutional for being violative of
Section 2(3), Article IX-B of the Philippine
Constitution and/or for having been issued with grave
abuse of discretion amounting to lack or excess of
jurisdiction.
B.
The abolition of the EIIB is a hoax. Similarly, if
Executive Order Nos. 191 and 223 are considered to
 effect a reorganization of the EIIB, such
reorganization was made in bad faith.
C.
The President has no authority to abolish the EIIB."
Petitioners contend that the issuance of the afore-mentioned
executive orders is: (a) a violation of their right to security of tenure;
(b) tainted with bad faith as they were not actually intended to make
the bureaucracy more efficient but to give way to Task Force
"Aduana," the functions of which are essentially and substantially the
same as that of EIIB; and (c) a usurpation of the power of Congress
to decide whether or not to abolish the EIIB.
Arguing in behalf of respondents, the Solicitor General maintains that:
(a) the President enjoys the totality of the executive power provided
under Sections 1 and 7, Article VII of the Constitution, thus, he has
the authority to issue Executive Order Nos. 191 and 223; (b) the said
executive orders were issued in the interest of national economy, to
avoid duplicity of work and to streamline the functions of the
bureaucracy; and (c) the EIIB was not "abolished," it was only
"deactivated."
The petition is bereft of merit.
Despite the presence of some procedural flaws in the instant petition,
such as, petitioners' disregard of the hierarchy of courts and the non-
exhaustion of administrative remedies, we deem it necessary to
address the issues. It is in the interest of the State that questions
relating to the status and existence of a public office be settled
without delay. We are not without precedent. In Dario v. Mison,12 we
liberally decreed:
"The Court disregards the questions raised as to
procedure, failure to exhaust administrative remedies, the
standing of certain parties to sue, for two reasons,
`[b]ecause of the demands of public interest,
including the need for stability in the public service,'
and because of the serious implications of these cases on
the administration of the Philippine civil service and the
rights of public servants."
At first glance, it seems that the resolution of this case hinges on the
question - Does the "deactivation" of EIIB constitute "abolition" of an
office? However, after coming to terms with the prevailing law and
jurisprudence, we are certain that the ultimate queries should be – a)
Does the President have the authority to reorganize the executive
department? and, b) How should the reorganization be carried out?
Surely, there exists a distinction between the words "deactivate" and
"abolish." To "deactivate" means to render inactive or ineffective or to
break up by discharging or reassigning personnel,13 while to "abolish"
means to do away with, to annul, abrogate or destroy completely.14 In
essence, abolition denotes an intention to do away with the office
wholly and permanently.15 Thus, while in abolition, the office ceases
to exist, the same is not true in deactivation where the office
continues to exist, albeit remaining dormant or inoperative. Be that as
it may, deactivation and abolition are both reorganization measures.
The Solicitor General only invokes the above distinctions on the
mistaken assumption that the President has no power to abolish an
office.
The general rule has always been that the power to abolish a public
office is lodged with the legislature.16 This proceeds from the legal
precept that the power to create includes the power to destroy. A
public office is either created by the Constitution, by statute, or by
authority of law.17 Thus, except where the office was created by the
Constitution itself, it may be abolished by the same legislature that
brought it into existence.18
The exception, however, is that as far as bureaus, agencies or offices
in the executive department are concerned, the President's power of
control may justify him to inactivate the functions of a particular
office,19 or certain laws may grant him the broad authority to carry out
reorganization measures.20 The case in point is Larin v. Executive
Secretary.21 In this case, it was argued that there is no law which
empowers the President to reorganize the BIR. In decreeing
otherwise, this Court sustained the following legal basis, thus:
"Initially, it is argued that there is no law yet which
empowers the President to issue E.O. No. 132 or to
reorganize the BIR.
We do not agree.
xxx xxx
Section 48 of R.A. 7645 provides that:
'Sec. 48. Scaling Down and Phase Out of Activities of
Agencies Within the Executive Branch. – The heads of
departments, bureaus and offices and agencies are
hereby directed to identify their respective activities which
are no longer essential in the delivery of public services
and which may be scaled down, phased out or abolished,
subject to civil service rules and regulations. X x x. Actual
scaling down, phasing out or abolition of the activities
shall be effected pursuant to Circulars or Orders issued
for the purpose by the Office of the President.'
Said provision clearly mentions the acts of "scaling
down, phasing out and abolition" of offices only and
does not cover the creation of offices or transfer of
functions. Nevertheless, the act of creating and
decentralizing is included in the subsequent provision of
Section 62 which provides that:
'Sec. 62. Unauthorized organizational charges. - Unless
otherwise created by law or directed by the President of
the Philippines, no organizational unit or changes in key
positions in any department or agency shall be authorized
in their respective organization structures and be funded
from appropriations by this Act.' (italics ours)
The foregoing provision evidently shows that the
President is authorized to effect organizational
changes including the creation of offices in the
department or agency concerned.
xxx xxx
Another legal basis of E.O. No. 132 is Section 20, Book III
of E.O. No. 292 which states:
'Sec. 20. Residual Powers. – Unless Congress provides
otherwise, the President shall exercise such other powers
and functions vested in the President which are provided
for under the laws and which are not specifically
enumerated above or which are not delegated by the
President in accordance with law.' (italic ours)
This provision speaks of such other powers vested in
the President under the law. What law then gives him
the power to reorganize? It is Presidential Decree No.
1772 which amended Presidential Decree No. 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. The validity of these two decrees
are unquestionable. The 1987 Constitution clearly
provides that "all laws, decrees, executive orders,
proclamations, letters of instructions and other executive
issuances not inconsistent with this Constitution shall
remain operative until amended, repealed or revoked. So
far, there is yet no law amending or repealing said
decrees." (Emphasis supplied)
Now, let us take a look at the assailed executive order.
In the whereas clause of E.O. No. 191, former President Estrada
anchored his authority to deactivate EIIB on Section 77 of Republic
Act 8745 (FY 1999 General Appropriations Act), a provision similar to
Section 62 of R.A. 7645 quoted in Larin, thus;
"Sec. 77. Organized Changes. Unless otherwise
provided by law or directed by the President of the
Philippines, no changes in key positions or
organizational units in any department or agency shall be
authorized in their respective organizational structures
and funded from appropriations provided by this Act."
We adhere to the precedent or ruling in Larin that this provision
recognizes the authority of the President to effect organizational
changes in the department or agency under the executive structure.
Such a ruling further finds support in Section 78 of Republic Act No.
8760.22 Under this law, the heads of departments, bureaus, offices
and agencies and other entities in the Executive Branch are directed
(a) to conduct a comprehensive review of their respective mandates,
missions, objectives, functions, programs, projects, activities and
systems and procedures; (b) identify activities which are no longer
essential in the delivery of public services and which may be scaled
down, phased-out or abolished; and (c) adopt measures that will
result in the streamlined organization and improved overall
performance of their respective agencies.23 Section 78 ends up with
the mandate that the actual streamlining and productivity
improvement in agency organization and operation shall be effected
pursuant to Circulars or Orders issued for the purpose by the
Office of the President.24 The law has spoken clearly. We are left
only with the duty to sustain.
But of course, the list of legal basis authorizing the President to
reorganize any department or agency in the executive branch does
not have to end here. We must not lose sight of the very source of the
power – that which constitutes an express grant of power. Under
Section 31, Book III of Executive Order No. 292 (otherwise known as
the Administrative Code of 1987), "the President, subject to the
policy in the Executive Office and in order to achieve simplicity,
economy and efficiency, shall have the continuing authority to
reorganize the administrative structure of the Office of the
President." For this purpose, he may transfer the functions of other
Departments or Agencies to the Office of the President. In
Canonizado v. Aguirre,25 we ruled that reorganization "involves the
reduction of personnel, consolidation of offices, or abolition
thereof by reason of economy or redundancy of functions." It
takes place when there is an alteration of the existing structure of
government offices or units therein, including the lines of control,
authority and responsibility between them. The EIIB is a bureau
attached to the Department of Finance.26 It falls under the Office of
the President. Hence, it is subject to the President's continuing
authority to reorganize.
It having been duly established that the President has the authority to
carry out reorganization in any branch or agency of the executive
department, what is then left for us to resolve is whether or not the
reorganization is valid. In this jurisdiction, reorganizations have been
regarded as valid provided they are pursued in good faith.
Reorganization is carried out in 'good faith' if it is for the purpose of
economy or to make bureaucracy more efficient.27 Pertinently,
Republic Act No. 665628 provides for the circumstances which may
be considered as evidence of bad faith in the removal of civil service
employees made as a result of reorganization, to wit: (a) where there
is a significant increase in the number of positions in the new staffing
pattern of the department or agency concerned; (b) where an office is
abolished and another performing substantially the same functions is
created; (c) where incumbents are replaced by those less qualified in
terms of status of appointment, performance and merit; (d) where
there is a classification of offices in the department or agency
concerned and the reclassified offices perform substantially the same
functions as the original offices, and (e) where the removal violates
the order of separation.29
Petitioners claim that the deactivation of EIIB was done in bad faith
because four days after its deactivation, President Estrada created
the Task Force Aduana.
We are not convinced.
An examination of the pertinent Executive Orders30 shows that the
deactivation of EIIB and the creation of Task Force Aduana were
done in good faith. It was not for the purpose of removing the EIIB
employees, but to achieve the ultimate purpose of E.O. No. 191,
which is economy. While Task Force Aduana was created to take the
place of EIIB, its creation does not entail expense to the government.
Firstly, there is no employment of new personnel to man the Task
Force. E.O. No. 196 provides that the technical, administrative
and special staffs of EIIB are to be composed of people who are
already in the public service, they being employees of other
existing agencies. Their tenure with the Task Force would only
be temporary, i.e., only when the agency where they belong is
called upon to assist the Task Force. Since their employment
with the Task force is only by way of detail or assignment, they
retain their employment with the existing agencies. And should
the need for them cease, they would be sent back to the agency
concerned.
Secondly, the thrust of E.O. No. 196 is to have a small group of
military men under the direct control and supervision of the President
as base of the government's anti-smuggling campaign. Such a
smaller base has the necessary powers 1) to enlist the assistance of
any department, bureau, or office and to use their respective
personnel, facilities and resources; and 2) "to select and recruit
personnel from within the PSG and ISAFP for assignment to the Task
Force." Obviously, the idea is to encourage the utilization of
personnel, facilities and resources of the already existing
departments, agencies, bureaus, etc., instead of maintaining an
independent office with a whole set of personnel and facilities.
The EIIB had proven itself burdensome for the government because it
maintained separate offices in every region in the Philippines.
And thirdly, it is evident from the yearly budget appropriation of the
government that the creation of the Task Force Aduana was
especially intended to lessen EIIB's expenses. Tracing from the
yearly General Appropriations Act, it appears that the allotted amount
for the EIIB's general administration, support, and operations for the
year 1995, was P128,031,000;31 for 1996, P182,156,000;32 for 1998,
P219,889,000;33 and, for 1999, P238,743,000.34 These amounts were
far above the P50,000,00035 allocation to the Task Force Aduana for
the year 2000.
While basically, the functions of the EIIB have devolved upon the
Task Force Aduana, we find the latter to have additional new powers.
The Task Force Aduana, being composed of elements from the
Presidential Security Group (PSG) and Intelligence Service Armed
Forces of the Philippines (ISAFP),36 has the essential power to effect
searches, seizures and arrests. The EIIB did not have this power.
The Task Force Aduana has the power to enlist the assistance of any
department, bureau, office, or instrumentality of the government,
including government-owned or controlled corporations; and to use
their personnel, facilities and resources. Again, the EIIB did not have
this power. And, the Task Force Aduana has the additional authority
to conduct investigation of cases involving ill-gotten wealth. This was
not expressly granted to the EIIB.1âwphi1.nêt
Consequently, it cannot be said that there is a feigned reorganization.
In Blaquera v. Civil Sevice Commission, 37 we ruled that a
reorganization in good faith is one designed to trim the fat off the
bureaucracy and institute economy and greater efficiency in its
operation.
Lastly, we hold that petitioners' right to security of tenure is not
violated. Nothing is better settled in our law than that the abolition of
an office within the competence of a legitimate body if done in good
faith suffers from no infirmity. Valid abolition of offices is neither
removal nor separation of the incumbents.38 In the instructive words
laid down by this Court in Dario v. Mison,39 through Justice Abraham
F. Sarmiento:
Reorganizations in this jurisdiction have been regarded as
valid provided they are 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. In that event, no dismissal (in case of
dismissal) or separation actually occurs because the
position itself ceases to exist. And in that case,
security of tenure would not be a Chinese wall. Be
that as it may, if the 'abolition,' which is nothing else but a
separation or removal, is done for political reasons or
purposely to defeat security of tenure, otherwise not in
good faith, no valid 'abolition' takes and whatever
'abolition' is done, is void ab initio. There is an invalid
'abolition' as where there is merely a change of
 nomenclature of positions, or where claims of economy
are belied by the existence of ample funds.
Indeed, there is no such thing as an absolute right to hold office.
Except constitutional offices which provide for special immunity as
regards salary and tenure, no one can be said to have any vested
right in an office or its salary.40
While we cast a commiserating look upon the plight of all the EIIB
employees whose lives perhaps are now torn with uncertainties, we
cannot ignore the unfortunate reality that our government is also
battling the impact of a plummeting economy. Unless the government
is given the chance to recuperate by instituting economy and
efficiency in its system, the EIIB will not be the last agency to suffer
the impact. We cannot frustrate valid measures which are designed
to rebuild the executive department.
WHEREFORE, the petition is hereby DENIED. No costs.
SO ORDERED.
Davide, Jr., C.J., Bellosillo, Melo, Puno, Vitug, Kapunan, Mendoza,
Pardo, Buena, Ynares-Santiago, De Leon, Jr., JJ., concur.
Panganiban and Quisumbing, JJ., in the result.
Gonzaga-Reyes, J., on leave.

Footnotes
1
"Deactivation of the Economic Intelligence and
Investigation Bureau"
2
"Supplementing Executive Order No. 191 on the
Deactivation of the Economic Intelligence and
Investigation Bureau and for Other Matters"
3
"Reorganizing the Ministry of Finance" Approved on
January 30, 1987.
4
"SEC. 7. Structural Organization. The Ministry, aside
from the Ministry Proper comprising the Office of the
Minister, the Offices of the Deputy and Assistant
Ministers, the Economic Intelligence and Investigation
Bureau and the Services, shall consist of the Operation
Groups and their constituent units, and Regional Office."
NOTE: The precursor of EIIB was the Anti-
Smuggling Action Center (ASAC) created by
former President Marcos on February 24, 1966
through E.O. No. 11. By virtue of E.O. No. 220
(March 1, 1970), the ASAC was transferred from the
 Office of the President to the Department of
National Defense. On March 16, 1971, ASAC was
placed under the direct control and supervision of
the Secretary of Finance by E.O. No. 303. On
June 11, 1978, President Marcos issued
Presidential Decree No. 1458 creating the
Finance Department Intelligence and
Investigation Bureau.
5
Section 26 of E.O. No. 127.
6
Section 2 of Memorandum No. 225.
7
Done on January 7, 2000;
"Section 1. Deactivation of the Economic
Intelligence and Investigation Bureau. The
Economic Intelligence and Investigation Bureau
(EIIIB) under the Department of Finance is hereby
deactivated."
8
Done on January 12, 2000. "Creating the Presidential
Anti-Smuggling Task Force "Aduana" to Investigate and
Prosecute Crimes Involving Large-Scale Smuggling and
Other Frauds Upon Customs, Other Economic Crimes
and Providing Measures to Expedite Seizure
Proceedings."
9
"SECTION 1. Creation of Task Force.- There is hereby
created a Presidential Anti-Smuggling Task Force
hereinafter called "Task Force Aduana," under the control
and supervision of the Office of the President principally
to combat smuggling, unlawful importations and other
frauds upon customs committed in large scale or by
organized and syndicated groups."
xxx xxx
"SEC. 3. Powers and Functions. – The Task force
shall have the following powers and functions:
1. To prepare and implement appropriate and
effective measures to prevent and suppress large-
scale smuggling and other prohibited and unlawful
importations;
2. To effect searches, seizures and arrests, and for
the Task Force Commander to file administrative
and criminal cases conformably with the provisions
of the Tariff and Customs Code of the Philippines,
 as amended, pertinent provisions of the Revised
Penal Code, as amended and the Rules of Criminal
Procedure;
3. To conduct intelligence and counter-intelligence
on smuggling and other unlawful importations,
including the monitoring of situations,
circumstances, activities of individual, groups and
entities who are involved in smuggling activities;
4. To select and recruit personnel from within the
PSG and ISAFP for assignment to the Task Force
with the conformity of the office or agency
concerned;
5. To enlist the assistance of any department,
bureau, office or agency or instrumentality of the
government, including government-owned or
controlled corporations to carry out its functions,
including the use of their respective personnel,
facilities and resources;
6. To conduct investigation of ill-gotten wealth of all
persons including government officials involved in
smuggling activities, in coordination with other
government agencies.
7. To conduct verification with the Bureau of
Customs of all documents pertaining to payment of
duties and taxes of all imported articles.
8. To suppress and prevent all other economic
frauds as may be directed by the President.
9. To perform such functions and carry out such
activities as may be directed by the President."
10
"Supplementing Executive Order No. 191 on the
Deactivation of the Economic Intelligence and
Investigation Bureau and for Other Matters."
11
Section 3 of E.O. No. 223.
12
176 SCRA 84 (1989)
13
Webster's Third New International Dictionary, 1986 ed.
p. 579.
14
Moreno, Philippine Law Dictionary, 3rd ed., p. 5
15
Rivera, Law of Public Administration, First Edition, p.
634; Guerrero v. Arizabal, 186 SCRA 108 (1990)
16
In Eugenio v. Civil Service Commission, 243 SCRA 196
(1995), the Court ruled:
"Except for such offices as are created by the
Constitution, the creation of a public offices is
primarily a legislative function. In so far as the
legislative power in this respect is not restricted by
constitutional provisions, it is supreme, and the
legislature may decide for itself what offices are
suitable, necessary, or convenient. When in the
exigencies of government it is necessary to create
and define duties, the legislative department has the
discretion to determine whether additional offices
shall be created, or whether these duties shall be
attached to and become ex-officio duties of existing
offices. An office created by the legislature is wholly
within the power of that body, and it may prescribe
the mode of filling the office and the powers and
duties of the incumbent, and, if it sees fit, abolish
the office."
Mendoza v. Quisumbing 186 SCRA 108 (1990);
Cruz v. Primicias, 23 SCRA 998 (1968) De Leon,
Administrative Law: Text and Cases, 1998 Ed., p.
24
17
Cruz, The Law of Public Officers, 1999 Ed., p. 4.
18
Ibid., p. 199
19
Martin, Philippine Political Law, p. 276
20
Larin v. Executive Secretary, 280 SCRA 713 (1997)
21
ibid.
22
General Appropriation Act FY 2000, signed into law on
February 16, 2000.
23
Section 78 of Republic Act No. 8760.
Section 16, Article XVIII, 1987 Constitution
provides:
"Sec. 16. Career civil service employees from the
separated from the service not for cause but as a
result of the reorganization pursuant to
Proclamation No. 3 dated March 25, 1986 and the
reorganization following the ratification of this
Constitution shall be entitled to appropriate
separation pay and to retirement and other benefits
 accruing to them under the laws of general
application in force at the time of their separation. In
lieu thereof, at the option of the employees, they
may be considered for employment in the
Government or in any of its subdivision,
instrumentalities, or agencies, including government
owned or controlled corporations and their
subsidiaries. This provision also applies to career
officers whose resignation, tendered in line with the
existing policy, had been accepted."
24
Ibid.
25
323 SCRA 312 (2000).
26
Section 17, Title II, Book IV, E.O. No. 292.
27
Department of Trade and Industry v. Chairman and
Commissioners of the Civil Service Commission 227
SCRA 198 (1993); Dario v. Mison, supra.; Mendoza v.
Quisumbing, supra.
28
"An Act to Protect the Security of Tenure of Civil
Service Officers and Employees in the Implementation of
Government Reorganization"-Approved on June 10,
1988" (84 Official Gazette No. 24, p. S-1)
29
Section 2 of Republic Act No. 6656.
30
E.O. No. 196; Section 17, Chapter 4, Title II, Book IV,
E.O. No. 292, and Section 7 and Section 26, E.O. No.
127.
31
R.A. No. 7845, 1995 General Appropriation Act
32
R.A. No. 8174, 1996 General Appropriation Act
33
R.A. No. 8522, 1998 General Appropriation Act
34
R.A. No. 8745, 1999 General Appropriation Act
35
Section 10, E.O. No. 196.
36
Section 2 of E.O. No. 196.
37
226 SCRA 278 (1993).
38
Mendoza v. Quisumbing, supra. De la Llana v. Alba,
supra.
39
supra.
40
National Land Titles and Deeds Registration
Administration v. Civil Service Commission, supra.
Notes:
Mendoza vs. Quisumbing
EN BANC
G.R. No. 78053 June 4, 1990

GUTIERREZ, JR., J.:

The issues raised in these consolidated cases refer to the validity of
various reorganization programs in different agencies and/or
departments of the government implementing the orders issued
pursuant to the President's Proclamation No. 1 declaring as policy the
reorganization of the government and Proclamation No. 3
"DECLARING A NATIONAL POLICY TO IMPLEMENT THE
REFORMS MANDATED BY THE PEOPLE, PROTECTING THEIR
BASIC RIGHTS, ADOPTING A PROVISIONAL CONSTITUTION
AND PROVIDING FOR AN ORDERLY TRANSITION TO A
GOVERNMENT UNDER A NEW CONSTITUTION." In addition to the
pleadings filed, the parties discussed the basic issues raised in these
petitions during the hearings held on January 24 and 31, 1989.
I
In G.R. No. 78053, the petitioner questions the validity of the March
19, 1987 letter-order of the then Secretary of Education, Culture and
Sports (DECS) Lourdes R. Quisumbing which terminated his
employment as Schools Division Superintendent of Surigao City.
Petitioner Mendoza was the Schools Division Superintendent of
Surigao City who, on June 4, 1986, was reappointed by respondent
Quisumbing as such with a "PERMANENT" status. He has served the
Department of Education for forty-two (42) years, moving up the
ranks in the public schools system. On January 30, 1987, Executive
Order No. 117 was issued by the President reorganizing the DECS.
In a letter dated March 19, 1987, the petitioner received the letter-
order informing him that pursuant to Executive Order No. 117 which
provides for a reorganization of the DECS and the implementing
guidelines thereof he would be considered separated from the service
effective April 15,1987 without prejudice to availment of benefits. The
letter particularly stated that consistent with the mandate of
reorganization to achieve greater efficiency and effectiveness, all
incumbent officials/personnel are on 'holdover' status unless advised
otherwise. In his place, Secretary Quisumbing appointed Dr. Socorro
L. Sering, on a permanent status on March 2, 1988. In the meantime,
the petitioner, in a letter dated April 2, 1987, wrote Secretary
Quisumbing requesting reconsideration of the letter-order. The letter
was forwarded to the Reorganization Appeals Board (RAB). The
motion for reconsideration remained unacted upon, hence on June
24, 1987, the petitioner filed the instant petition for certiorari,
prohibition and mandamus with preliminary injunction. In a resolution
dated September 19, 1988, the RAB recommended that action on the
petitioner's letter- reconsideration be deferred pending resolution of
the instant petition.
In G.R. No. 78525, the petitioners are tourism employees who
question the legality of Executive Order No. 120 and the consequent
alleged illegal act of the public respondents in summarily terminating
their services. The twenty-eight (28) petitioners were all permanent
employees (with services ranging from 27 years to 3 years) of the
Department of Tourism (DOT). All the petitioners had no pending
administrative cases and some of them have received numerous
citations for meritorious services. On January 20, 1987, the President
issued Executive Order No. 120 reorganizing the Ministry of Tourism
"structurally and functionally." Section 26 thereof decrees the
abolition of Tourism Services and Bureau of Tourism Promotions
while Section 29 provides that the incumbents whose positions are
not included in the new staffing pattern or who are not reappointed
shall be deemed separated from the service, but they shall receive
retirement benefits and separation pay. On March 19, 1987,
respondent Undersecretary Sostenes Campillo, Jr., issued a
Memorandum which in effect stated that pursuant to Executive Order
No. 120 the implementation of the reorganization program shall be
effected starting March 19, 1987; that all positions are declared
vacant; and that all employees are considered in a hold-over
capacity. On April 13, 1987, respondent Campillo, Jr., in his capacity
as acting secretary issued a memorandum notifying all employees of
the DOT that thirty (30) days from said date, or on May 13, 1987,
termination orders will be effected. On May 14 and May 28, 1987, the
petitioners were served their termination papers. They now seek the
issuance of a writ of mandamus to compel the public respondents to
reinstate them to their respective positions and a writ of prohibition to
enjoin said respondents from implementing Executive Order No. 120.
They state that they are career civil servants who were summarily
and unceremoniously separated from employment without due
process.
In G.R. No. 81197, the eighty-four (84) petitioners are personnel of
the Office of the Press Secretary who question their dismissal from
the government service pursuant to what they allege is an
unconstitutional reorganization law (Executive Order No. 297) and the
likewise alleged unconstitutional implementing order issued by
respondent, then Press Secretary Teodoro Benigno.
On July 25, 1987, the President issued Executive Order No. 297
which reorganized the Office of the Press Secretary (OPS). Section
13 of the law provides for the merger of the Bureau of Broadcast and
Radyo ng Bayan into the Bureau of Broadcast Services (BBS).
On August 27, 1987, the then Press Secretary issued OPS
Department Order No. 1 creating tile Reorganization Committee and
Placement Committee to set guidelines in the implementation of the
reorganization program. The Reorganization Committee was created
to oversee and set the directions for the reorganization while the
Placement Committee which was created in each Bureau was tasked
to assist the appointing authority in the selection and placement of
personnel. One of the criteria to be observed in the hiring process
was the taking of oral and written examinations to be administered by
OPS through the Development Academy of the Philippines (DAP)
with a representative from the Civil Service Commission in
attendance. It was further provided that those who will not take the
examinations will automatically lose the percentage alloted to the
examinations in the rating process.
In the meantime, a new position structure and staffing pattern was
prepared retaining only around 333 positions of the nearly 770
regular employees of BBS. The new staffing pattern was approved on
October 5, 1987 and implemented on November 1, 1987.
The affected employees whose positions were abolished appealed to
the Press Secretary to withdraw the proposed staffing pattern and to
create a committee from the BBS officials' rank to prepare a new
staffing pattern. The request was denied and instead an order was
issued that everybody must re-apply and undergo the oral and written
examinations provided for in the OPS Department Order No. 1.
The original (32) petitioners who were mostly permanent and regular
civil service employees of the BBS with more than ten (10) years of
government service refused to take the examinations. The then Press
Secretary wrote the petitioners that their "services shall be
considered only until December 31, 1987."
On January 8, 1988, the thirty-two (32) petitioners filed the instant
petition for certiorari, prohibition and mandamus with preliminary
injunction and/or restraining order.
A supplemental petition was filed by thirty-six (36) First Intervenors
and sixteen (1 6) Second Intervenors. The First Intervenors group
was composed of permanent civil service employees who took the
examination but were uniformly informed that "due to the limited
number of positions" they were considered employees only until
January 31, 1988. The Second Intervenors were temporary
employees with most of them being in the government service for
more than fifteen (15) years whose temporary appointments were
extended only until July 31, 1987 "due to the ongoing reorganization."
In G.R. No. 81495, petitioners Secretary of the Department of
Science and Technology (DOST), and Director and members of the
Reorganization Evaluation Committee of the Philippine Nuclear
Research Institute (PNRI) ask for the annulment of the orders dated
December 27, 1987 and January 15, 1988 of the Regional Trial
Court, Branch 97, Quezon City which restrained the petitioners from
dismissing the private respondents and from implementing the
reorganization scheme of the PNRI under Executive Order No. 128
and granted the private respondent's application for a writ of
preliminary injunction.
The forty-one (41) private respondents were employees of the
Philippine Atomic Energy Commission (PAEC). Some of them have
been in the government service for more than twenty (20) years,
others for more than ten (10) years and almost all of them are college
graduates, holding permanent positions and are civil service eligibles.
On January 30, 1987, the President issued Executive Order No. 128
reorganizing the DOST. Section 21 of the order provides for the
reorganization of the PAEC into the PNRI.
On April 24, 1987, the DOST Secretary issued Memorandum Circular
No. 001 which created the Placement Committee.
On May 5, 1987, Memorandum Circular No. 002 was issued which
provided for guidelines on the evaluation and selection of officers and
employees.
In the meantime in April, 1987, the DOST new position structure and
staffing pattern which reduced the number of positions from 6,029 to
5,568 was approved by the DOST Secretary. On September 25,
1987, the Department of Budget and Management likewise approved
the new position structure and staffing pattern.
On December 18, 1987, a list of employees to be retained under the
new position structure of the PNRI was posted in the PNRI premises.
Those excluded were placed in a manpower pool for possible
placements in other DOST agencies. Thereafter, appointments under
the new staffing pattern were issued and subsequently submitted to
the Civil Service Commission.
On December 28, 1987, the private respondents whose positions
were not included in the PNRI position structure and staffing pattern
filed a complaint with the respondent trial court for "Injunction with
Prayer for the Issuance of Writ of Preliminary Order" alleging that the
termination of their services violated their right to security of tenure;
that there is a time limit of one (1) year from February 25, 1986 to
implement the reorganization (Article Ill, Section 2, Freedom
Constitution); and that the Freedom Constitution has been
superseded by the 1987 Constitution and is no longer operative.
Acting on the complaint, the respondent court issued the questioned
orders.
In G.R. No. 81928, petitioner Jose L. Guerrero assails his termination
as Director of the Science Promotion Institute (SPI) a regular line
agency of the Department of Science and Technology (DOST) and
seeks reinstatement and assignment to any position closest to his old
position in terms of functions, duties, salary emoluments and
privileges and without diminution of his rank, salary and privileges as
of September 24, 1987.
Section 35 (d) of Executive Order No. 128 provides for the abolition of
SPI and in lieu thereof creates the Science Education Institute (SEI)
and Science and Technology Information Institute (STII). It is also
provided-therein that SPI's "appropriation fund, records, equipment,
facilities, chases in action, rights, other assets, personnel as may be
necessary and liabilities if any'" shall be transferred to SEI and STII.
On September 24, 1987, the then Secretary designated Mr. Benjamin
Damian as officer-in-charge of the newly created STII.
After the new position structure and staffing pattern of DOST was
approved by both the DOST Secretary and the Department of Budget
and Management, the petitioner received a letter dated September
25, 1987 from the DOST Secretary which notified him that since the
SPI was abolished by Executive Order No. 128, his position as
Director no longer exists. The file his retirement application. In
Secretary advised him to another letter dated September 30, 1987
from the Secretary, the petitioner was directed to turn over all
property, equipment and funds in his custody to the Officer-in-Charge
of STII. The petitioner had held the position since June, 1982.
On September 25, 19877 Damian entered the SPI and since then the
petitioner has been kept out of his office and denied salaries,
allowances and emoluments.
On February 19, 1988, the petitioner filed the instant petition with
preliminary mandatory injunction. He accuses the DOST Secretary of
grave abuse of discretion in terminating his services and alleges that
his termination was a violation of his right to security of tenure. He
contends that the functions of the old office are Identical to the
functions of the two new offices into which the old one has been split
and, therefore, there is no true abolition in the legal sense.
In G.R. No. 81998, the twenty-one (21) petitioners led by Rogelio
Bustamante, Chief of the Legal Division of the Department of
Agriculture (DAGR) filed on February 24, 1987 the instant petition for
certiorari, prohibition and injunction with prayer for a restraining order
and/or writ of preliminary injunction to enjoin the respondents from
holding examinations for the petitioners and others similarly situated
on February 26, 1988 and from proceeding with the reorganization of
the Department of Agriculture.
The petitioners are mostly division and section chiefs who are among
the 1,500 regular and civil service officers and employees of the
DAGR. Pursuant to Executive Order No. 116 issued on January 30,
1987 which provides for the reorganization of the DAGR, the then
Secretary Carlos Dominguez issued Memorandum Circular dated
February 10, 1988 requiring all provincial and municipal agricultural
officers, as well as division chiefs to take an examination on February
26, 1988 to be given by Sycip Gorres Velayo (SGV) under the
authority of respondent Civil Service Commission (CSC). The
petitioners asked for a restraining order claiming that the proposed
examinations were calculated and designed to have a basis for laying
off career employees and officials in order to replace them with
proteges of the respondent. They stated that Division Chiefs had
already been ordered to work as "coordinators' or told to go on field
trips while outsiders, proteges of the respondent, became OICs of the
various Divisions.
We did not issue any restraining order, hence the examinations were
conducted on March 5, 11 and 30, 1988.
On March 23, 1988, the petitioners filed a supplemental petition
praying for a writ of preliminary injunction enjoining the public
respondents from proceeding with the reorganization of their
department and to desist from committing acts of harassment or
reprisals against the petitioners who were asked to explain in writing
why they did not take the competitive examinations.
In G.R. No. 86504, petitioner Rainerio Reyes, the then Secretary of
the Department of Transportation and Communications (DOTC)
seeks the setting aside of the resolution dated November 7, 1988
issued by the Civil Service Commission (CSC) which ordered the
reappointment of respondents Matias T. Austria and Arcebido M.
Gervacio to the positions of Chief of the National Telegraphic
Transfer Service (NTTS) and Administrative Service Chief II of the
Telecommunications Office (TELOF) respectively and declared the
appointment of Aureliano de Leon as Administrative Service Chief II
ineffective as wen as the CSC's resolution dated December 20, 1988
which denied the petitioner's motion for reconsideration.
In a letter-complaint dated January 11, 1986 filed with the
Sandiganbayan, a certain Mrs. Calixta Ondevilla, an employee of
NTTS, charged Austria with violation of the Anti-Graft and Corrupt
Practices Act. In another letter-complaint dated March 14,1986 filed
with DOTC Minister Hernando Perez, Ondevilla charged Austria with
various irregularities such as favoritism, oppression, abuse of
authority and nepotism.
Pursuant to the new reorganization plan of the Bureau of
Telecommunications (BUTEL) the Acting Director issued various
office orders relieving Austria as NTTS Chief and giving him other
designations and at the same time designating Arcebido Gervacio as
Acting Chief, NITS effective January 2, 1987. Aureliano de Leon who
was holding the item of Administrative Officer III was designated
Acting Chief, Human Resources and Administrative Department.
Austria was found guilty of nepotism, grave insurbordination, grave
misconduct and/or abuse of authority, neglect of duty and/or acts
prejudicial to the interest of the service (falsification of documents) in
a decision signed by the Assistant Secretary of the
Telecommunication Office (TELOF). Petitioner DOTC Secretary,
however, set aside the decision on grounds of denial of fair and
impartial investigation and ordered continuation of a formal
investigation upon motion for reconsideration of the Assistant
Secretary of TELOF.
In the meantime, pursuant to Executive Order Nos. 125 and 125-a
(Executive Order No. 125 was issued by the President on January
30, 1987) the reorganization of the DOTC was undertaken. With
respect to the BUTEL, now called TELOF, the highest position in the
Administrative Division was abolished and a new one was created
namely Administrative Services Chief II, (Range 75). On the other
hand, the item of NTTS Chief (Range 75) was retained in the staffing
pattern.
The TELOF Placement and Selection Committee, which included the
head of the CSC Field Office considered and evaluated four
candidates, including Gervacio and Austria for the top position in the
Administrative Division while three candidates, also including
Gervacio and Austria were considered for the position of NTTS Chief.
The committee recommended De Leon and Gervacio for the top
position and NTTS chief respectively. Petitioner DOTC Secretary
then appointed the two (2) and their appointments were approved by
the CSC through the head of the CSC Field Office. Austria was
appointed Administrative Officer I of Region 1, Baguio City.
Gervacio and Austria were not satisfied with their appointments and
filed separate protests with the DOTC Reorganization Appeal Board
(RAB) against Gervacio's appointment (opposed by Austria) as well
as de Leon's appointment (opposed by Gervacio). 'The protests were
dismissed.
Gervacio and Austria then appealed the DOTC-RAB resolution to the
CSC which reversed the said resolution. After their motions for
reconsideration were denied, the DOTC Secretary filed the instant
petition.
On July 7, 1989, the CSC issued an order directing the DOST
Secretary and the Assistant Secretary of the Telecommunications to
immediately implement the CSC resolutions in view of our non-
issuance of any restraining order to bar the implementation of the
resolution.
On September 5, 1989, we issued a temporary restraining order
enjoining the CSC to cease and desist from enforcing the July 7,
1989 order.
In G.R. No. 86547, petitioner Secretary Carlos Dominguez of the
Department of Agriculture seeks the annulment of the orders of the
Regional Trial Court, Branch 87 of Quezon City granting- (1) a series
of temporary restraining orders and writs of preliminary injunction
which enjoined the petitioner from carrying out the reorganization of
the Department of Agriculture, and (2) several motions of the private
respondents to admit additional petitioners.
On January 19, 1987, the President issued Executive Order No. 116
"Renaming the Ministry of Agriculture and Food as Ministry of
Agriculture, Reorganizing its Units Integrating all Offices and
Agencies whose Functions relate to Agriculture and Fishing into the
Ministry and for other Purposes."
Pursuant to this law, the petitioner formed a Reorganization
Committee to work on the new staffing pattern of the Department
which was later approved by the Department of Budget and
Management. The newly approved staffing pattern was posted in
every affected bureau and agency of the Department for all
employees to be notified.
The Department's reorganization entailed conversion of line bureaus
into staff bureaus resulting in the reduction and/or abolition of
positions in the Bureaus affected namely, Bureau of Fisheries and
Aquatic Resources (BFAR), Bureau of Soils and Water Management
(BSWM), Bureau of Plant Industry (BPI) and the Bureau of Animal
Industry (BAI). Due to the aforesaid conversion, there was an
increase in positions department-wide but there were significant
reductions in positions of the staff bureau where most of the private
respondents were employed.
To evaluate the qualification of all personnel of the Department for
possible appointments, a Placement Committee was formed and the
petitioner issued Memorandum Circular No. 7 dated October 7, 1987
containing the guidelines to be followed in the reorganization process.
All the private respondents were among those whose positions were
affected by the reorganization. Thus, they were given the
corresponding notices of termination. They were all permanent
employees of the DAR, the Bureau of Plant Industry (BPI), Bureau of
Animal Industry (BAI), Bureau of Fisheries and Aquatic Resources or
Bureau of Soils and Water Management.
Pending appeal to the Reorganization Appeals Board (RAB) the
private respondents submitted to the petitioner a manifesto
requesting deferment of the implementation of the reorganization.
In view of their impending dismissal effective October 9, 1988, the
first nine (9) private respondents, on October 5, 1988, filed with the
respondent trial court a petition for prohibition and mandamus with
prayer for a temporary restraining order.
On October 7, 1988, the respondent trial court issued a temporary
restraining order enjoining the petitioner from carrying out the
announced dismissal of the private respondents and from appointing
third persons to the positions in the new staffing pattern.
Later, the trial court ordered the inclusion of "additional petitioners" in
the persons of the other private respondents (total number of private
respondents is 519) the last batch of which totalled 35 whose
services were to be terminated effective November 5, 1988 upon
motions by the counsel of the original nine petitioners in the trial
court.
After the petitioners' motion for reconsideration of the respondent
court's order regarding the "additional petitioners" and grant of the
writ of preliminary injunction with respect to them was denied, the
instant petition for certiorari and prohibition with prayer for a writ of
preliminary injunction with urgent prayer for issuance of temporary
restraining order was filed.
In G.R. No. 88951, the Office of Muslim Affairs (OMA) seeks the
review of the resolution dated January 27, 1989 of the Civil Service
Commission (CSC) which ordered that the private respondents,
except retirees or those who have opted to be phased out and
received benefits as such, should be immediately reinstated to their
positions or to positions of comparable or equivalent rank in the OMA
without loss of seniority rights and with back salaries as well as the
CSC's resolution dated June 2, 1 989 denying a motion for
reconsideration.
On January 30, 1987, the President issued Executive Order Nos. 122
as amended, and 122-A abolishing the Office of Muslim Affairs and
Cultural Communities (OMACC) and the Philippine Pilgrimage
Authority (PHILPA) and creating out of these offices the Office on
Muslim Affairs (OMA) and the Bureau of Pilgrimage and Endowment
(BPE). Later, on July 25, 1987, the President issued Executive Order
No. 295 amending Executive Order No. 122.
On June 1, 1987, petitioner Executive Director Jiamil Dianalan issued
Office Order No. OG-87-21 creating the OMA Personnel Screening
Committee to review, evaluate and recommend employees based on
performance and merit.
On August 24, 1987, Dianalan issued a memorandum to all officials
and employees of OMA to inform them that under Executive Order
No. 117, the President authorized extensions of sixty (60) days from
the expiration of the earlier extension period within which incumbent
employees of defendant OMACC may continue to hold office and
receive their salaries in holdover capacities or until September 24,
1987 and that those not reappointed are ordered to desist from
further holding office.
On September 24, 1987, Acting Assistant Executive Director Atty.
Panumbalin M. Membin, OMA issued a memorandum advising all
those not reappointed to desist from reporting to office.
On October 2, 1987, the President issued "GUIDELINES ON THE
IMPLEMENTATION OF REORGANIZATION EXECUTIVE ORDERS"
requiring each agency to constitute a Reorganization Appeals Board
(OMA-RAB) to hear complaints of affected employees.
On October 10, 1987, the petitioner issued Office Order No. 09-87-
100 creating the OMA Reorganization Appeals Board (OMA-RAB)
which was reconstituted on February 24,1988.
On November 3, 1987, the petitioner issued Office Order No. 87-021
providing for a procedure for reviewing or reconsidering appeals or
complaints.
On April 27, 1988, the OMA-RAB issued a resolution adopting
Executive Orders Nos. 122 and 122-A as amended and the
documents related to the reorganization of OMA as basis in deciding
appeals or complaints.
On July 12, 1988, the OMA-RAB resolved to dismiss the appeal of
the 206 private respondents stating that the non-appointment of the
complainants who were former employees of the defunct OMA and
PPA were in accordance with law.
On July 16, 1988, the private respondents filed appeals for
reappointment in the OMA with the CSC, alleging that their
separation from service was in violation of law and their constitutional
rights to due process and equal protection of the law and security of
tenure.
Acting on the appeals, the CSC issued the questioned resolutions.
Hence, the instant petition.
In G.R. No. 89427 petitioner Conrado L. Villazor filed this petition for
mandamus to compel respondent Secretary of Health Alfredo R.A.
Bengzon to reinstate him as Assistant Provincial Health Officer of
Zambales.
On May 1, 1985, the petitioner received a permanent appointment as
Assistant Provincial Health Officer, range 85 from the then Minister of
Health.
By virtue of Order No. 267D dated November 7, 1986 the petitioner
was assigned officer-in-charge of the San Marcelino District Hospital
in San Marcelino, Zambales.
On February 2, 1988, the petitioner was informed through a letter
from the Regional Director of Regional Health Office No. III San
Fernando, Pampanga by authority of the Secretary of Health that
after "a review of all our personnel" he shall not be appointed to any
position in the new staffing pattern under Executive Order No. 119
(the reorganization law of the Department of Health).
On February 16,1988, the DOH dismissed a protest and Dr. Arcellie
Llamado was designated as officer-in-charge, San Marcelino District
Hospital.
Upon appeal to the Civil Service Commission, the DOH decision was
reversed. The CSC ruled in favor of the petitioner.
Despite the CSC ruling and a letter of the petitioner asking for the
immediate issuance of his appointment, the DOH has not issued any
appointment to the petitioner.
Hence, the instant petition.
II
After the February 1986 political upheaval, the political leadership
decided to proclaim the formation of a revolutionary government
headed by President Corazon C. Aquino. On February 25, 1986,
immediately after the President was sworn into office, she issued
Proclamation No. 1 declaring as policy the reorganization of the
government. The reorganization affected all branches of the
Government as appointive public officials including the members of
the Supreme Court as well as elective officials were included in its
purview.
On March 25, 1986, the President promulgated Proclamation No. 3
"DECLARING A NATIONAL POLICY TO IMPLEMENT THE
REFORMS MANDATED BY THE PEOPLE, PROTECTING THEIR
BASIC RIGHTS, ADOPTING A PROVISIONAL CONSTITUTION
AND PROVIDING FOR AN ORDERLY TRANSITION TO A
GOVERNMENT UNDER A NEW CONSTITUTION." Proclamation
No. 3 reiterated the new policy of the government as embodied in the
law's Preamble, to wit:
WHEREAS, the direct mandate of the people as
manifested by their extraordinary action demands
the complete reorganization of the government, ...
The implementing guidelines were spelled out in the succeeding
provisions of the law, to wit:
ARTICLE II
Section 1 xxx xxx xxx
The President shall give priority to measures to
achieve the mandate of the people to:
 a) Completely reorganize the government, eradicate
unjust and oppressive structures, and all iniquitous
vestiges of the previous regime.
ARTICLE III
Section 1. In the reorganization of the government
priority shall be given to measures to promote
economy, efficiency, and the eradication of graft
and corruption.
Section 2. All elective and appointive officials and
employees under the 1973 Constitution shall
continue in office until otherwise provided by
proclamation or executive order or upon the
appointment and qualification of their successors, if
such is made within a period of one year from
February 25,1986.
Section 3. Any public officer and employee
separated from the service as a result of the
organization effected under this Proclamation shall,
if entitled under the laws then in force, receive the
retirement and other benefits accruing thereunder.
Section 4. The records, equipment, buildings,
facilities and other properties of all government
offices shall be carefully preserved. In case any
office or body is abolished or reorganized pursuant
to this proclamation, its funds and properties shall
be transferred to the offices or body to which its
powers, functions and responsibilities substantially
pertain.
On May 28, 1986, the President issued Executive Order No. 17,
"PRESCRIBING RULES AND REGULATIONS FOR THE
IMPLEMENTATION OF SECTION 2, ARTICLE III OF THE
FREEDOM CONSTITUTION." Among others, the law prescribed as
"grounds for the separation/replacement of personnel" (SECTION 3)
the following:
1) Existence of a case for summary dismissal
pursuant to Section 40 of the Civil Service Law;
2) Existence of a probable cause for violation of the
Anti-Graft and Corrupt Practices Act as determined
by the Ministry Head concerned;
 3) Gross incompetence or inefficiency in the
discharge of functions;
4) Misuse of public office for partisan political
purposes;
5) Any other analogous ground showing that the
incumbent is unfit to remain in the service or his
separation/replacement is in the interest of the
service.
Thereafter, the President issued Executive Orders directing the
reorganization of various different departments of the government
which affected their employees, among them the petitioners in some
of the instant cases as well as the respondents in the other cases: In
G.R. No. 78053, Executive Order No. 117 reorganizing the
Department of Education, Culture and Sports issued on January 30,
1987; In G.R. No. 78525, Executive Order No. 120 reorganizing the
Department of Tourism issued on January 20,1987; In G.R. No.
81197 Executive Order No. 297 reorganizing the Office of the Press
Secretary issued on July 25, 1987; In G.R. No. 81495 Executive
Order No. 128 reorganizing the Department of Science and
Technology issued on January 30,1987; In G.R. No. 81928 Executive
Order No. 128 issued on January 30, 1987; In G.R. No. 81998
Executive Order No. 116 issued on January 30, 1987; In G.R. No.
86504 Executive Order No. 125 reorganizing the Department of
Transportation and Communications issued on January 30, 1987; In
G.R. No. 86547 Executive Order No. 116 reorganizing the
Department of Agriculture issued on January 30, 1987; In G.R. No.
88951 Executive Order No. 122 abolishing the Office of Muslim
Affairs and Cultural Communities and the Philippine Pilgrimage
Authority issued on January 30, 1987; and in G.R. No. 89427
Executive Order No. 119 reorganizing the Department of Health
issued on January 30, 1987.
As stated in Dario v. Mison, et al. (G.R. No. 81954 and related cases,
August 8, 1989, p. 23) there is no dispute over the authority to carry
out a valid reorganization in any branch or agency of Government.
Pursuant to the Provisional Constitution and the various Executive
Orders issued by the President when she was the sole law- making
authority, the different Departments of Government were authorized
to carry on reorganization programs.
From the very start, however, the nature and extent of the power to
reorganize were circumscribed by the source of the power itself. The
grant of authority was accompanied by guidelines and limitations. It
was never intended that department and agency heads would be
vested with untrammelled and automatic authority to dismiss the
millions of government workers on the stroke of a pen and with the
same sweeping power determine under their sole discretion who
would be appointed or reappointed to the vacant positions.
Thus, under Proclamation No. 3, Article II, Section l(a), reorganization
was mandated by the People to "eradicate unjust and oppressive
structures." Where the fabric was sound or the new agency head
could not devise anything better, it must be retained. The mandate
was also intended to remove "all iniquitous vestiges of the previous
regime." Under this mandate, the mass of lowly employees in the
bottom rungs of the governmental hierarchy, ordinarily constant and
apolitical, were not intended to be summarily dismissed unless basic
reasons outweighed or overcame the rights to their jobs built up so
laboriously over the years.
Article III, Section 1 of the same Proclamation added another
guideline - "priority shall be given to measures to promote economy,
efficiency, and the eradication of graft and corruption."
The promotion of simplicity, economy, and efficiency is the usual
standard which enables a delegation of powers in reorganization
statutes to pass the test of validity. When the President set the
standard of economy, efficiency, and the eradication of graft and
corruption, she did not come up with novel standards to be followed
by her alter egos in the implementation of the reorganization
program.
We have ample jurisprudence on the matter, in Urgello, et al. v.
Osmena, Jr., 9 SCRA 317 [1963], this Court made it plain that the
creation of new positions with increases in salaries and with the same
duties as those abolished is inconsistent with the ostensible purpose
of economy and efficiency. Similar rulings were made in Abanilla, et
al. v. Ticao, et al., 17 SCRA 652 [1966]; Cruz, et al. v. Primicias, Jr.,
et al., 23 SCRA 998 [1968]; Briones v. Osmena, Jr., 104 Phil. 588
[1958]; and Ocampo, et al. v. Duque, 16 SCRA 962 [1966]. On the
other hand, the bona fide rule was followed in Arao v. Luspo, 20
SCRA 722 [1967]; Manalang v. Quitoriano, 94 Phil. 903 [1954]; Llanto
v. Dimaporo, 16 SCRA 599 [1966]; Facundo v. Pabalan, 4 SCRA 375
[1962]; and Maza v. Ochave, 20 SCRA 142 [1967]. There were ample
precedents to guide the respondent public officers in these cases.
No specific causes for removal were given in the Provisional
Constitution. The President, therefore, felt constrained to issue
particulars to guide those who would implement the policy.
We had occasion to pass upon this issue and stated:
Although the Provisional Constitution did not require
any ground or cause for removal as above pointed
out, the Government, in an act of auto-limitation and
to prevent indiscriminate dismissals of personnel in
the Career Civil Service whose qualifications and
performance meet the standards of public service of
the New Government', issued Executive Order No.
17 dated 28 May 1986 (82 Official Gazette 2423 [2
June 1986]) which enumerated certain grounds for
the separation or replacement of elective and
appointive officials authorized under Article III (2) of
the Provisional Constitution. .... (Radia v. Review
Committee Under Executive Order No. 17, et al.,
157 SCRA 749, 753 [1988]).
Executive Order No. 17 was issued on May 28, 1986, long before the
present Constitution was ratified and adopted, 'in order to obviate
unnecessary anxiety and demoralization among the deserving
officials and employees, particularly in the career civil service ... and
to ensure that only those found corrupt, inefficient, and undeserving
are separated from the government service." (82 Official Gazette
2423, June 2,1986).
The President's concern embodied in Executive Order No. 17 was
also shown by that other great department of Government, namely
Congress.
The cause of those who have been reorganized out of office has
been taken up by their elected representatives. On March 1, 1988,
the Senate of the Philippines passed a unanimous resolution with two
abstentions expressing the Senate's concern over the plight of
government officials and employees who were dismissed without just
cause. Significantly, Senator Santanina Rasul, chairperson of the
Senate Committee on the Civil Service, divulged that reorganization
has resulted in the creation of an even bigger and fatter bureaucracy.
The Senate urged the suspension of the then on- going
reorganization of government offices pending remedial legislation.
(Manila Bulletin, March 2, 1988, p.i.).
Earlier, the House of Representatives has also introduced a bill for
the setting up of clear-cut policies and guidelines on reorganization to
protect the security of tenure of civil servants. (Manila Bulletin,
October 5,1987, p. 14)
These efforts led to the enactment on June 10, 1988 of Republic Act
No. 6656 "AN ACT TO PROTECT THE SECURITY OF TENURE OF
CIVIL SERVICE OFFICERS AND EMPLOYEES IN THE
IMPLEMENTATION OF GOVERNMENT REORGANIZATION."
The law reiterated the established and valid causes for removals
incident to a bona- fide reorganization and itemized some
circumstances constituting evidence of bad faith in a non bona - fide
reorganization.
Section 2 of the law provides:
SEC. 2. No officer or employee in the career service
shall be removed except for a valid cause and after
due notice and hearing. A valid cause for removal
exists when, pursuant to a bona fide reorganization,
a position has been abolished, or rendered
redundant or there is a need to merge, divide, or
consolidate positions in order to meet the
exigencies of the service, or other lawful causes
allowed by the Civil Service Law. The existence of
any or some of the following circumstances may be
considered as evidence of bad faith in the removals
made as a result of reorganization, giving rise to a
claim for reinstatement or reappointment by an
aggrieved party:
(a) Where there is a significant increase in a
number of positions in the new staffing pattern of
the department or agency concerned;
(b) Where an office is abolished and another
performing substantially the same functions is
created;
(c) Where incumbents are replaced by those less
qualified in terms of status of appointment,
performance and merit;
(d) where there is a reclassification of offices in the
department or agency concerned and the
reclassified offices perform substantially the same
functions as the original offices;
 (e) Where the removal violates the order of
separation provided in Section 3 hereof.
Republic Act No. 6656 states the policy of the law and provides for
the retroactivity of its provisions even in reorganizations already
effected.
It provides:
SECTION 1. It is hereby declared the policy of the
State to protect the security of tenure of civil service
officers and employees in the reorganization of the
various agencies of the National Government and of
local governments, state colleges and universities
expressly authorized by law, including government-
owned or controlled corporations with original
charters, without sacrificing the need to promote
morale, efficiency, integrity, responsiveness,
progressiveness, and courtesy in the civil service
pursuant to Article IX, B, Section 3 of the
Constitution.
xxx xxx xxx
SECTION 11. The executive branch of the
government shall implement reorganization
schemes within a specified period of time
authorized by law.
In the case of the 1987 reorganization of the
executive branch, all departments and agencies
which are authorized by executive orders
promulgated by the President to reorganize shall
have ninety (90) days from the approval of this Act
within which to implement their respective
reorganization plans in accordance with the
provisions of this Act. (Emphasis supplied)
Significantly, Republic Act No. 6656 also repealed all laws, rules and
regulations and part thereof inconsistent with its provisions. (See
Section 13)
The Solicitor General, in his consolidated memorandum, argues that
traditional concepts of civil service law should not apply. He states
that the government overhaul is a direct exercise by the sovereign
people of police power. In what he calls "progressive reorganization,"
separations from the service may be effected without cause because
"the mandated reorganization itself is the cause."
There is no dispute over the power to reorganize-whether traditional,
progressive, or whatever adjective is appended to it. However, the
essence of constitutional government is adherence to basic rules.
The rule of law requires that no government official should feel free to
do as he pleases using only his avowedly sincere intentions and
conscience to guide him. The fundamental standards of fairness
embodied in the bona fide rule cannot be disregarded. More
particularly, the auto-limitations imposed by the President when she
proclaimed the Provisional Constitution and issued executive orders
as sole law maker and the standards and restrictions prescribed by
the present Constitution and the Congress established under it, must
be obeyed. Absent this compliance, we cannot say that a
reorganization is bona-fide.
The public respondents (who are petitioners in some cases) argue
that they have followed standards. However, the standard they
present is derived from the typical grant of rule-making authority
found in all the questioned Executive Orders, to wit:
The Minister shall issue such rules, regulations, and
other issuances as may be necessary to ensure the
effective implementation of the provisions of this
Executive Order.
The alleged standard - "ensure the effective implementation of the
provisions of this Executive Order"- is no standard. Under the public
respondents concept, their standard is a roving commission giving
the executive officer unbridled discretion to do as he pleases as long
as, in his belief, his act effectively implements the executive order. As
earlier mentioned, the standards are found else where in the
governing charters in sufficiently clear and ample language. The
grant of quasi-legislative power to implement the reorganization is
bound by these standards. Unfortunately, the public officials
concerned have misread the instructions and decided to implement
reorganization according to their full discretion in a manifestly invalid
manner.
Article XVIII, Section 16 of the 1987 Constitution reads:
Sec. 16. Career civil service employees separated
from the service not for cause but as a result of
reorganization pursuant to Proclamation No. 3
dated March 25, 1986 and the reorganization
following the ratification of this Constitution shall be
entitled to appropriate separation pay and to
 retirement and other benefits accruing to them
under the laws of general application in force at the
time of their separation. In lieu thereof, at the option
of the employees, they may be considered for
employment in the Government or in any of its
subdivisions, instrumentalities, or agencies,
including government-owned or controlled
corporations and their subsidiaries. This provision
also applies to career officers whose resignation,
tendered in line with the existing policy, had been
accepted.
To justify the challenged reorganization measures, the Solicitor
General finds in the "not for cause" separations from the service and
the "reorganization following the ratification of this Constitution"
ample powers assumed by the public respondents and petitioner
officials in these cases.
The resolution in Jose v. Arroyo, G.R. No. 78435, (unsigned
resolution dated August 11, 1987) is cited to justify the termination
without cause of the services of the officers and employees involved
in the instant cases. The Solicitor General argues that the usual
invocation of the right to security of tenure is precluded by the
constitutional provision. The Government relies on Jose v. Arroyo
where we stated:
The contention of petitioner that Executive Order
No. 127 is violative of the provision of the 1987
Constitution guaranteeing career civil service
employees security of tenure overlooks the
provision of Section 16, Article XVIII (Transitory
Provisions) which explicitly authorize the removal of
career civil service employees not for cause but as
a result of the reorganization pursuant to
Proclamation No. 3 dated March 25, 1986 and the
reorganization following the ratification of this
Constitution. By virtue of said provision, the
reorganization of the Bureau of Customs under
Executive Order No. 127 may continue even after
the ratification of the Constitution and career civil
service employees may be separated from the
service without cause as a result of such
organization. (Jose v. Arroyo, supra)
The above arguments have been laid to rest first in the case of
Palma-Fernandez v. dela Paz, 160 SCRA 751 (1988), where we
ruled:
The argument that, on the basis of this provision,
petitioner's term of office ended on 30 January 1987
and that she continued in the performance of her
duties merely in a hold-over capacity and could be
transferred to another position without violating any
of her legal rights, is untenable. The occupancy of a
position in a hold-over capacity was conceived to
facilitate reorganization and would have lapsed on
25 February 1987 (under the Provisional
Constitution), but advanced to 2 February 1987
when the 1987 Constitution became effective (De
Leon, et al. v. Hon. Benjamin B. Esguerra, et al.,
G.R. No. 78059, 31 August 1987). After the said
date the provisions of the latter on security of tenure
govern. (at p. 757)
The Court was more emphatic in the seven (7) petitions collectively
known as the Dario v. Mison cases (supra).
First, the Arroyo v. Jose ruling is obiter dictum because Leonardo
Jose's petition was "clearly premature, speculative, and purely
anticipatory." There was no reorganization yet.
Second, Arroyo v. Jose is an unsigned resolution where the nuances
of the Court's pronouncements cannot possibly be ventilated as in a
full-blown decision like Palma- Fernandez.
And third, Palma-Fernandez is a later ruling which, in case of an
inconsistency (actually more imagined than real), supersedes the
earlier dictum. (Dario v. Mison, supra at pp. 46-49)
We explained in these precedent-setting Dario V. Mison cases:
As we have suggested, the transitory provisions of
the 1987 Constitution allude to two stages of the
reorganization, the first Proclamation No. 3-which
had already been consummated-the second stage
being that adverted to in the transitory provisions
themselves-which is underway. Hence, when we
spoke, in Arroyo of reorganization after the
effectivity of the new Constitution, we referred to the
second stage of the reorganization. Accordingly, we
cannot be said to have carried over reorganization
 under the Freedom Constitution to its 1987
counterpart.
Finally, Arroyo is not necessarily incompatible with
Palma-Fernandez (or Esguerra).
As we have demonstrated, reorganization under the
aegis of the 1987 Constitution is not as stem as
reorganization under the prior Charter. Whereas the
latter, sans the President's subsequently imposed
constraints, envisioned a purgation, the same
cannot be said of the reorganization inferred under
the new Constitution because precisely, the new
Constitution seeks to usher in a democratic regime.
But even if we concede ex gratia argumenti that
Section 16 is an exception to due process and no-
removal-'except for cause provided by law'
principles enshrined in the very same 1987
Constitution. (Article III, Sec. 1, and Art. IX (B), Sec.
2 (3) which may possibly justify removals 'not for
cause,' there is no contradiction in terms here
because, while the former Constitution left the axe
to fall where it might, the present organic act
requires that removals 'not for cause' must be a
result of reorganization. As we observed, the
Constitution does not 'provide' for automatic'
vacancies. It must also pass the test of good faith-a
test not obviously required under the revolutionary
government formerly prevailing, but a test well-
established in democratic societies and in this
government under a democratic charter.
And only recently, this Court promulgated the decision in Floreza v.
Hon. Jaime Ongpin, et al., G.R. No. 81356 and the related case of
Floreza v. Civil Service Commission, et al., G.R. No. 86156, February
26, 1990 where we declared the dismissal pursuant to a
reorganization invalid and ordered the petitioner's reinstatement to
his former position.
A typical provision in all these challenged executive orders is the
"hold-over" status of every single employee of the departments as a
result of the implementation of the reorganization. One such provision
would be section 24 of Executive Order No. 117 reorganizing the
DECS, to wit:
 SEC. 24. New Structure and Pattern. — Upon
approval of this Executive Order, the officers (the
term officer as used in this Executive Order is
intended to be within the meaning of the term
'official' as used in the Freedom Constitution and
the succeeding Constitution) and employees of the
Ministry shall, in a hold-over capacity continue to
perform their respective duties and responsibilities
and receive the corresponding salaries and benefits
unless in the meantime they are separated from the
service pursuant to Executive Order No. 17 [1986]or
Article III of the Freedom Constitution. (Emphasis
supplied)
Pursuant to the above provision, around 400,000 school teachers,
janitors, clerks, principals, supervisors, administrators, and higher
officials were placed on "hold- over status." When a public officer is
placed on hold-over status, it means that his term has expired or his
services terminated but he should continue holding his office until his
successor is appointed or chosen and has qualified. (See Topacio
Nueno v. Angeles, 76 Phil. 12 [1946]).
The petitioner in G.R. No. 78053 argues against the "holdover"
feature of the challenged order in this manner:
xxx xxx xxx
... To reduce four hundred thousand officers and
employees most of them permanent, to holdover
status preparatory to their eventual separation from
the service many of them beyond middle age and
too late to start a new career, is not only tyranny but
cruelty of the first magnitude. Reorganizations can
be accomplished without disruption of family life, so
well respected and protected by the. 1986 (sic)
Constitution when it says with honor and oxide, 'The
State recognizes sanctity of family life and shall
protect and strengthen the family as a basic
autonomous social institution.' Moreover, this step is
not in keeping with the mandate of the Freedom
Constitution which tasks the President to make
effective the guarantees of human rights against
violations thereof. (Rollo, G.R. No. 78053, p. 5)
We view it, however, as a graphic illustration of the noncompliance
with the bona-fide rule in reorganizations. In answer to questions
posed during the oral arguments in these cases, the Solicitor General
stated that there were persons other than Division Superintendent
Francisco L. Mendoza who were not reappointed. As far as can be
gathered from the records, however, it appears that out of 400,000
dismissed employees only one has chosen to come to this Court. Any
others seem to have welcomed or accepted their forced retirement as
they did not join the petitioners in these consolidated and other
related cases. If everybody was going to be reappointed, except Mr.
Mendoza and the relatively few unknown others who did not join in
these reorganization cases and who would have retired if allowed to
do so, what was the point in dismissing and then placing such a
tremendous number of persons on hold-over status?
An examination of the facts of these cases invariably shows that the
bona-fide rule has been ignored or disobeyed. Except in the Office of
the Press Secretary, there have been significant increases in the
number of positions in affected Departments and agencies thus
belying the claims of economy. Offices have been abolished but in
their stead, offices performing substantially the same functions have
been created. In some cases, e.g. the Science Promotions Institute in
the Department of Science and Technology an office has been
divided into two or more offices with a greater number of employees
performing the same functions. Incumbents have been replaced by
persons less qualified in terms of status, performance, and merit as in
the Department of Tourism where a driver with 27 years government
service, a messenger with 14 years, bookkeepers, and others with
citations and honors have been replaced by appointees with lesser
qualifications and seniority.
It is a paramount principle in Public Officers' Law that the power to
abolish public offices vested in the legislature is not absolute. It is
subject to the limitations that it be exercised in good faith, should
never be for personal or political reasons, and cannot, be
implemented in a manner contrary to law. (Cruz v. Primicias, 23
SCRA 998 [1968]; Maza v. Ochave, 20 SCRA 142 [1967]; Abanilla, et
al. v. Ticao, et al., 17 SCRA 652 [1966]; Ocampo, et al. v. Duque, et
al., 16 SCRA 962 [1966]; Llanto v. Ali Dimaporo, et al., 16 SCRA 599
[1966]; Arao v. Luspo, 20 SCRA 722 [1967]; Guillergan, et al. v.
Ganzon, et al., 17 SCRA 257 [1966]; Urgelio v. Osmena, Jr., 9 SCRA
317 [1963]; Alipio v. Rodriguez, 9 SCRA 752 [1963]; Briones, et al. v.
Osmena, Jr., et al., 104 Phil. 588 [1958]); and Gacho, et al. v.
Osmena, Jr., etc., et al., 103 Phil. 837 [1958]).
Speaking through Mr. Justice J.B.L. Reyes, the Court was very
emphatic in Cruz v. Primicias, Jr., supra that an abolition which is not
bona-fide but is merely a device to circumvent the constitutional
security of tenure of civil service employees is null and void.
These principles were reiterated in De la Llana v. Alba (112 SCRA
294 [1982]) where we sustained a bona-fide reorganization, to wit:
Nothing is better settled in our laws than that the
abolition of an office within the competence of a
legitimate body if done in good faith suffers from no
infirmity. The ponencia of Justice J.B.L. Reyes in
Cruz v. Primicias, Jr. (23 SCRA 998) reiterated such
a doctrine. 'We find this point urged by respondents,
to be without merit. No removal or separation of
petitioners from the service is here involved but the
validity of the abolition of their offices. This is a legal
issue that is for the courts to decide. It is a well-
known rule also that valid abolition of offices is
neither removal nor separation of the incumbents.
And of course, if the abolition is void, the incumbent
is deemed never to have ceased to hold office....'
As well-settled as the rule that the abolition of an
office does not amount to an illegal removal of its
incumbent is the principle that, in order to be valid,
the abolition must be made in good faith. (at pp.
321-322).
As in the Dario v. Mison cases, we disregard the procedural
roadblocks which the parties on either side have tried to erect against
each other:
The Court disregards the questions raised as to
procedure, failure to exhaust administrative
remedies, the standing of certain parties to sue,
(This was raised by the Civil Service Commission in
G.R. No. 86241. Failure to exhaust administrative
remedies was raised in G.R. Nos. 81954 and 81917
by the Solicitor General) and other technical
objections, for two reasons, '[b]ecause of the
demands of public interest, including the need for
stability in the public service', (Sarmiento III v.
 Mison, No. 79974, December 17, 1987, 153 SCRA
549, 551-552) and because of the serious
implications of these cases on the administration of
the Philippine civil service and the rights of public
servants. (G.R. No. 81954 and related cases,
August 8, 1989, pp. 2324)
III
In G.R. No. 78053, it is apparent that the petitioner's termination as
Schools Division Superintendent of Surigao City was pursuant to the
public respondent's view that under Section 24 of Executive Order
No. 117 all incumbent officials/personnel of DECS were on hold-over
status unless advised otherwise.
The dismissal of all employees and their being placed on holdover
status is particularly objectionable in the DECS. There could have
been no intention to get rid of hundreds of thousands of school
teachers. The use of "reorganization" even under the concept
advocated by the Solicitor General appears trivial if not unnecessary.
Division Superintendents usually start as classroom teachers and
move up to principals, district supervisors, and assistant
superintendents usually over more than thirty years of service before
appointment as Division heads. At each rung of the promotional
ladder, there are qualifying examinations and rigid background
checks. The big number of competitors insures some degree of
safeguards against abuses. To use reorganization of the biggest
Department in the government in order to avoid the hassles of
bringing administrative charges against Mendoza and perhaps a few
other alleged persona-non-gratas like him is precisely what this Court
rejects when we apply the bona-fide rule. One does not burn down a
house if his purpose is to roast alleged pests.
The petitioner was appointed in a "PERMANENT STATUS" besides
having a rating of 79% for the rating period of May 1986 to April 1987,
which is considered "Very Satisfactory" under the "Rating Sheet for
Key MEC Officials." There was grave abuse of discretion when the
petitioner's services were terminated by a mere letter-order on the
justification that the petitioner, together with the entire personnel of
the DECS, was only in a hold-over capacity. If the petitioner is guilty
of wrongdoing, it is an easy matter to Me charges against him instead
of placing the entire DECS on hold-over status in order to run after
him.
In G.R. No. 78525, the public respondents justify the termination of
the petitioners as follows: 1) as regards seventeen of the petitioners,
they were previously employed in the abolished Bureaus (Tourism
Services and Bureau of Tourism Promotions). Therefore, the public
respondents argue that since the positions of the seventeen
petitioners were abolished, they can not claim impairment of their
right to security of tenure; 2) as regards the remaining petitioners, the
public respondents argue that although their positions were not
abolished, their separation from the service without cause is also
valid pursuant to Section 16, Article XVIII, 1987 Constitution and the
case of Jose v. Arroyo, supra.
The public respondents maintain that due process was observed
since the petitioners were evaluated in accordance with the criteria in
Section 27 of the Civil Service Act giving them examinations to
determine their competence and/or having them interviewed by their
superiors and/or civil service commissioners or personnel specialists
and/or requiring them to submit self-evaluation reports; and/or
referring to their personnel records.
As we stated earlier, ritual invocation of the abolition of an office is
not sufficient to justify the termination of the services of an officer or
employee in such abolished office. Abolition should be exercised in
good faith, should not be for personal or political reasons, and cannot
be implemented in a manner contrary to law. "Good faith, as a
component of a reorganization under a constitutional regime, is
judged from the facts of each case.' (Dario v. Mison cases, p. 50).
If an executive department is bloated with unnecessary employees,
there can be no objection to a law abolishing the useless or non-
essential items. In the instant case, however, all items, including the
essential ones, were declared vacant. There is absolutely no showing
that the positions of tourism field coordinator, bus driver, bookkeeper,
accounting clerk, librarian, nurse, telephone operator, messenger in
fact, any of the items occupied by the petitioners-are unnecessary
and must be chopped off.
In the case of Rama v. Court of Appeals, (148 SCRA 496 [1987]), we
ruled:
... It is an undeniable fact that the dismissed
employees who were holding such positions as
foremen, watchmen, and drivers, suffered the
uncertainties of the unemployed when they were
plucked out of their positions. That not all of them
 testified as to the extent of damages they sustained
on account of their separation from their
government jobs, cannot be used as a defense by
the petitioner. Suffice it to state that considering the
positions they were holding, the dismissed
employees concerned belong to a low-salaried
group, who, if deprived of wages would generally
incur considerable economic hardships.
xxx xxx xxx
xxx xxx xxx
Apropos the practice of victorious politicians to
remove government employees who did not support
them in their campaign for office, this Court has
said: 'There are altogether too many cases of this
nature, wherein local elective officials, upon
assumption to office, wield their new-found power
indiscriminately by replacing employees with their
own proteges regardless of the laws and regulations
governing the civil service. Victory at the polls
should not be taken as authority for the commission
of such illegal acts. (Nemenzo v. Sabillano, L-
20977, September 7, 1968, 25 SCRA 1)
The rule does not apply to local officials alone. It is even more true for
national offices. It would be the height of naivete to presume that in
the rapid filling up of several hundred vacated positions, no personal
or political considerations would creep into the selection process. The
civil service law was evolved as a reaction to the spoils system.
The petitioners are employees of the Department of Tourism holding
permanent positions. Most of them have served the government for
extended periods, from twelve (12) years to twenty-seven (27) years.
No one of them has a pending administrative charge. Many of them
have received numerous citations, awards, and honors for
meritorious services. The public respondents have given no individual
reasons for each of the affected employees as to why they are being
dismissed from their employment except to emphasize in a general
manner the existence of near absolute power to cut off their means of
livelihood.
The lip service paid by the respondents to due process whereby
supervisors who were themselves later dismissed, were ordered to
give "evaluations" on the performance of the laid off personnel is no
substitute for more regular procedures in getting honest to goodness
results. The advice sought from "Personnel Specialists" of the Civil
Service Commissioners, who should have known better than to
participate in a violation of the rules their agency espouses is only
window-dressing for what this Court called in Cruz v. Primicias, supra
as a "subterfuge resorted to for disguising an illegal removal of
permanent civil service employees." The employees are terminated
without being given reasons for their dismissal. Only the appointing
authority knows why employees are no longer reappointed.
The circumstances are different in G.R. No. 81197 filed by personnel
in the Office of the Press Secretary.
As earlier stated, out of 770 regular employees of the Bureau of
Broadcast and Radyo Ng Bayan, only 333 employees were retained
in the new and merged office of Bureau of Broadcast Services. The
intent to abolish unnecessary items and to keep them abolished has
not been satisfactorily refuted by the petitioners.
Fifteen petitioners hold temporary appointments. There is no showing
way these 15 employees should be exceptions to the established rule
that persons holding temporary or casual appointments do not enjoy
the security of tenure extended to permanent personnel.
The Solicitor General in his Consolidated Memorandum filed on
March 10, 1989 manifested:
Subsequently, or on January 19, 1988, a
Supplemental Petition was filed by all the above.
In the meantime, during the pendency of the instant
case before this Honorable Court, the OPS
requested the Budget Office for a supplemental or
additional plantilla, which has been recently
approved on January 26, 1989. Also, the present
status of all the 84 petitioners is as follows:
(a) 61 petitioners have already availed of separation
benefits.
(b) 3 petitioners have already availed of separation
benefits.
(c) 1 petitioner is likely to apply for separation
benefits after being cleared by COA of her property
accountability.
(d) 6 petitioners are not expected to avail of
separation benefits for being contractual
employees.
 (e) 1 petitioner (Romulo Salcedo) has already been
reinstated out of deference to a Resolution of the
Civil Service Commission, whose jurisdiction OPS
had doubted. At any rate, Salcedo passed the OPS
exams/interviews, but could not previously be
accommodated due to limited number of positions
under new staffing pattern.
(f) 1 petitioner is presently serving as volunteer in
anticipation of a position under the requested
supplemental plantilla (now approved).
(g) 10 petitioners are performing duties in hold-over
capacity likewise in anticipation of a position under
the supplemental plantilla (5 of these 10 petitioners
disclaim having authorized their inclusion as
petitioners in the instant case).
(h) 1 petitioner (Corazon Carluen) had accepted a
position lower than the position of radio production
announcer which she applied for but for which she
was shown not to be qualified.
On January 24 and 31, 1989 when the instant
petition was scheduled for oral arguments before
this Honorable Court, neither petitioners nor their
counsel appeared, the case for all intents and
purposes having become moot and academic.
Thus, on the bases alone of aforesaid
developments during the pendency of the instant
petition, dismissal of the instant petition is
warranted.
In any event, the instant petition is without merit in
the light of the progressive reorganization
undertaken by the sovereign people in the aftermath
of the EDSA Revolution. (Rollo of G.R. No. 81197,
pp. 71-73)
On February 13, 1990, we issued a resolution, to wit:
For failure of Atty. Alfredo V. Zerrudo, Jr., counsel
for petitioners in G.R. No. 81197 to comply with the
resolutions of (a) April 12, 1988 which required
among other things, the parties to file their
respective memoranda, (b) September 6, 1988,
requiring aforesaid counsel to show cause why no
 disciplinary action should be taken against him for
failure to file memorandum and to comply with the
resolution of April 12, 1984 and (c) November 8,
1988 which imposed on Atty. Zerrudo, Jr., a fine
and required him to comply with the resolution of
September 6, 1988, the Court Resolved to (d)
ORDER THE ARREST of aforesaid Atty. Alfredo V.
Zerrudo.
xxx xxx xxx
Not only did the petitioners fail to appear during the hearings and fail
to file the required memorandum but up to this time, we have not
heard anything from them. Apparently, the petitioners have lost
interest in prosecuting the instant case in view of the supervening
events stated by the Solicitor General.
In G.R. No. 81495, the petitioners raise the following arguments: (1)
The 1987 Constitution, in its section 16, Article XVIII justifies the
dismissal of career civil servants not for cause: (2) Executive Order
No. 128 does not violate security of tenure but merely allows
employees to continue on a "hold-over" capacity, (3) The ruling in
Jose v. Arroyo supra states that a reorganization may continue even
after the ratification of the Constitution and dismissal without cause
as a result of such reorganization are valid.
We have discussed earlier why these arguments are not well-taken.
In the Mison cases, we categorically stated that section 16, Article
XVIII of the 1987 Constitution does not sanction indiscriminate
dismissals without cause.
We have also discussed why the "hold-over" status of all
employees/officers provided for in the executive orders reorganizing
the various departments in government cannot be ordered and
implemented during the effectivity of the 1987 Constitution (which
was on February 2, 1987). Civil service eligibles can no longer be
removed without cause as they already enjoy the constitutional right
to security of tenure. This was the ruling in the Palma-Fernandez v.
de la Paz decision and the Dario v. Mison cases which clarified and
tempered the abbreviated language of the Jose v. Arroyo decision
cited by the petitioners.
In G.R. No. 81928, the issue involves the validity of the abolition of
the office of the petitioner. The petitioner maintains that the abolition
of the Science Promotion Institute (SPI) and the consequent creation
of two offices namely the Science Education Institute (SEI) and the
Science and Technology Information Institute (STII) pursuant to
Executive Order No. 128 was not effected in good faith. The
petitioner contends that the SPI has not been abolished but merely
split into two (2) offices whose combined functions are substantially
Identical with the functions of the SPI. Moreover, the petitioner
contends that the two newly created offices provide for thirteen (13)
management positions which is more than the number of said
position in the SPI.
Section 4, Republic Act No. 770 which enumerates the functions of
SPI reads:
SEC. 4. The purposes of this Corporation (SFP,
subsequently renamed and converted to SPI) shall
be:
a) To initiate, promote, stimulate, solicit, encourage
and support basic and applied scientific research in
the mathematical, physical, medical, biological,
engineering and other sciences, by means of
grants, loans and other forms of assistance to
qualified persons and institutions applying for the
same;
b) To award scholarships and graduate fellowships
in the mathematical, physical, medical, biological,
engineering and other sciences;
c) To foster interchange of scientific information
among scientists here and abroad;
d) To aid in the establishment of adequate scientific
laboratories; and,
e) To encourage, protect and aid in the organization
of science clubs and societies in the schools and
colleges of the Philippines. (Sec. 4, RA No. 770)
Sections 26 and 27 of Executive Order No. 128 which enumerate the
functions of the SEI. and STII respectively read:
SEC. 26. Science Education Institute. — There is
hereby created the Science Education Institute,
which shall have the following functions:
a) Undertake science education and training;
b) Administer scholarships, awards and grants;
c) Undertake science and technology manpower
development;
 d) Formulate plans and establish programs and
projects for the promotion and development of
science and technology education and training in
coordination with the Ministry of Education, Culture
and Sports, and other institutions of learning in the
field of science and technology. ... (Sec. 26, EO No.
128)
SEC. 27. Science and Technology Information
Institute. — There is hereby created the Science
and Technology Information Institute which shall
have the following functions:
a) Establish a science and technology databank and
library;
b) Disseminate science and technology information;
and
c) Undertake training on science and technology
information ... (Sec. 27. EO 128).
We find no substantial differences between the functions of the two
newly created offices and those of SPI. Indeed, their functions are
similar in the promotion, encouragement, and support of the
development of science and technology. The public respondents'
contention that the functions of two newly created offices are not
substantially similar to those of SPI is untenable.
Pursuant to section 2, Republic Act No. 6656 this circumstance ...
where an office is abolished and another performing substantially the
same functions is created ... " is considered as "evidence of bad faith
in the removal made as a result of reorganization giving rise to a
claim for reinstatement .. ."
Moreover, there is merit to the petitioner's contention that there is an
increase in the number of management positions from nine (9) of SPI
to the thirteen (13) of the STII and SEI.
This increase violates RA 6656 in that "... where there is a significant
increase in the number of positions in the new staffing pattern ...",
these circumstances " ... may be considered as evidence of bad faith
.. ."
The respondent contends that the petitioner was terminated as a
result of the reorganization. The petitioner alleges that he was
separated in view of his refusal to comply with the alleged anomalous
demand of the respondent to turn over SPI funds to the DOST
proper. Since vestiges of bad faith as defined by statute and this
Court surrounded the abolition of his office, the petitioner should be
reinstated and be given an equivalent position in either the STII or
SPI.
In G.R. No. 81998, the Solicitor General in this consolidated
Memorandum manifests:
In the case, there is actually no reorganization
involved. Petitioner Rogelio Bustamante, who
appeared in his own behalf and for his co-
petitioners ADMITTED in open court during the oral
argument on February 1, 1989 that not one of the
petitioners was removed from his or her position.
Otherwise stated as of the dates the original and
supplemental positions were filed no employee has
as yet been removed, replaced or reorganized out.
It is respondents' submission that even if it is
assumed that petitioners would eventually be
removed from their positions as a result of the
reorganization of the Department of Agriculture
pursuant to Executive Order No. 116, still
petitioners' grievance has no legal or constitutional
mooring in the light of the pronouncement of this
Honorable Court in Leonardo A. Jose v. Joker P.
Arroyo, et al. ...
We apply the principle earlier stated that the case of Jose v. Arroyo,
supra has been superseded by the Palma-Fernandez v. de la Paz
(supra) and the Dario v. Mison (supra) cases to the effect that after
February 2, 1987 civil service eligibles in the government service
enjoy the constitutional right to security of tenure. The petitioners,
therefore, can not be removed by mere notices of termination, without
due notice and hearing and not knowing the valid grounds for the
termination of their services.
In G.R. No. 86504, the petitioner who was then the Secretary of the
Department of Transportation and Communications (DOTC)
considered the respondents to be holding their positions in a hold-
over capacity pursuant to section 20 of Executive Order No. 125.
Under this premise, the petitioner declared all positions of the
department vacant including those of the respondents and thereafter
extended new appointments as part of the reorganization of the
department.
This is, therefore, another case where the hold-over procedure is
used as a justification.
The record shows that before reorganization, the respondents and
Aureliano de Leon were officers of the Bureau of
Telecommunications (BUTEL) holding the following items: (1)
Respondent Austria was the Chief of the National Telegraphic
Transfer Service (NTTS) (Range 75) since March 16, 1984; (2)
Respondent Gervacio was Administrative Officer V (Chief of the
Administrative Division) (Range 73) since September 1982; and (3)
Aureliano de Leon was Administrative Officer III (Range 70). He was
under Gervacio's supervision as Chief of the Supply Unit.
BUTEL was retained under the reorganizational scheme of the
department. The name of the agency was only changed to
Telecommunications Officer (TELOF). The item of NTTS Chief was
retained. As regards the position of Chief of the Administrative
Division, the petitioner claims that the Administrative Officer V (Range
73) position was abolished and in its stead there was created the
position of Administrative Chief II (Range 75). Evaluations to the new
positions started after the effectivity of the 1987 Constitution.
Parenthetically, the petitioner was incorrect in holding the Position of
Austria as NITS Chief vacant. At the time Austria was transferred to
another position, Austria already enjoyed the constitutional right to
security of tenure under the new Constitution. Austria has been in the
government service for forty-three (43) years and was nearing
retirement (he was 63 years old) at the time be was transferred to
another position lower in rank (Administrative Officer I Range 64)
which the petitioner admits to be a demotion. Certainly, this is
contrary to the resolution of the DOTC-RAB to the effect that "the
Board resolves to direct the Telecommunications Office and the
Department's Selection and Placement Committee to consider Mr.
Austria in the evaluation of the candidates for the other Division Chief
positions in the Telecommunications Office ..." (p. 104, Rollo). Hence,
we find no plausible reason why he should be removed from his
position or transferred to a position-lower in rank (Administrative
Officer I) which the petitioner admits to be a demotion.
As regards the position of Chief of the Administrative Division,
Gervacio was already chief of the Division when it was abolished and
then re-created with a salary range two points higher. We affirm the
respondent Civil Service Commission's (CSC) ruling that Gervacio
should be appointed as such and not Aureliano de Leon, to wit:
 Gervacio, on the other hand, should be appointed
Administrative Service Chief II. Although Aureliano
de Leon meets the qualifications of the position, he
was merely an Administrative Officer III before the
reorganization very much lower than the position
held by Austria and Gervacio. Gervacio not only
meets the qualification standards for the position but
also has retention score higher than de Leon who
was merely his supervisee before the reorganization
of TELECOM. Moreover, his legal
profession/expertise which is not possessed by de
Leon is a great asset of Gervacio in the
performance of the functions and duties of, as well
as in meeting the challenges attendant to the
Administrative Service Chief II. Gervacio, therefore,
has more advantages than de Leon in point of
service, qualification, competence, training and
years of government experience in the job. (Rollo of
G.R. No. 86504, p. 109)
Section 2, Republic Act -No. 6656 provides that among the
circumstances which may be considered as evidence of bad faith in
the removals made as a result of reorganization, giving rise to a claim
for reinstatement or reappointment by an aggrieved party is ... (c)
where incumbents are replaced by those less qualified in terms of
status of appointment, performance and merit .. ." (Emphasis
supplied)
The rule is that "the appointing person enjoys sufficient discretion to
select and appoint employees on the basis of their fitness to perform
the duties and assume the responsibilities of the position to be filled
... Unless the law speaks in mandatory and peremptory tone, there
should be full recognition of the wide scope of such discretionary
authority." (Central Bank of the Philippines, et al. v. Civil Service
Commission, et al. G.R. Nos. 80455-56, April 10, 1989). In this case,
an incumbent was dismissed and his subordinate was appointed to
his former office, in the course of the reorganization program.
Congress has stated the rule. We apply it.
G.R. No. 86547 is similar to G.R. No. 78525 in that: (1) the petitioner
in G.R. No. 86547 (Secretary of Agriculture) and the respondent in
G.R. No. 78525 (the Secretary of Tourism) terminated the services of
the employees in their respective departments (respondents in G.R.
No. 86547 and petitioners in G.R. No. 78525) for either of the two
reasons: (a) Abolition of the employees' positions or offices, and (b)
As regards the employees whose positions were not abolished, their
non-appointment is sanctioned by the Executive Order reorganizing
the department and which was recognized in the Jose v. Arroyo case;
(2) The affected employees were mostly from the low salaried groups
like clerks, fishery aide, secretary, liaison officer, carpenter, driver,
security guard, bookkeeper, information writer, and accounting clerks;
(3) Some of the affected employees perform necessary jobs, in the
instant case like Soil Technologist, Fishery Agent, Agronomist and
Fishery Biologist; and (4) The affected employees were terminated in
their employment by mere notices of termination.
Under the circumstances, we find no need to discuss the various
arguments in the petition. We apply our findings and conclusions in
G.R. No. 78525 to the instant case.
In G.R. No. 88951, the petitioner assails the resolutions of the Civil
Service Commission (CSC) on the following grounds: 1) The
termination of services of the private respondents was brought about
by the abolition of the offices of OMACC and PHILPA where they
were employed pursuant to Executive Order No. 122; 2) The private
respondents cannot claim security of tenure pursuant to section 16,
Article XVIII of the 1987 Constitution which is considered a
"progressive" type of reorganization and to the ruling in the case of
Jose v. Arroyo (supra); and 3) The petitioner acted in good faith by
observing all presidential issuances, orders and memoranda on
reorganization.
There is no need to discuss the merits of the first two grounds. They
have been sufficiently discussed earlier.
But, was the reorganization of the Department done in bad faith?
After conducting hearings, the CSC stated the following:
Memorandum Circular No. 10 dated September 2,
1986 of the CSC was issued to 'effectively
implement the reorganization in government offices
particularly on the selection and placement of
personnel and in order that the best qualified and
most competent personnel in the career service are
retained, .. .'This Circular prescribes that 'the
officials and employees shall be compared on the
basis of the status of their appointment,
competence to perform their duties and moral
fitness to discharge their responsibilities and, those
who squarely meet the qualification requirements
for the position in terms of education, training and
experience shall be preferred .. .'The records do not
show that appellants were evaluated for retention
purposes in accordance with the guidelines on
reorganization.
Moreover, the Unnumbered Memorandum of the
President dated October 2, 1987 containing
guidelines on the implementation of the
Reorganization Executive Orders provides that the
ongoing process of government reorganization
should be conducted 'in a manner ... that is
sensitive to the dislocating consequences arising
from specific organization ... and that the entire
process of reorganization must be carried out in the
most humane manner possible.
Appellants were unceremoniously terminated by a
memorandum order of a mere Acting Assistant
Executive Director even before the position
structure and staffing pattern of the OMA were
approved and prescribed by the authorities as
required by EO 122-A. Even in reorganization of
government agencies, career service employees
are entitled to security of tenure. The instant case
involves government reorganization by way of
abolishing one agency and replacing it with another.
Such being the case, the guidelines on placement
of personnel in reorganizing agencies must be
complied with.
Regarding those who have retired or were phased
out and have already received their separation
benefits, they are now estopped or deemed to have
lost their light, if any, to re-appointment. On the
claim of the respondent that some appellants are
already employed in other government offices, the
records are bereft of evidence to support the said
allegation.
Likewise, from the records, the following findings
have been established:
 1. The acting Assistant Executive Director of the
OMA has no power to terminate the services of the
former OMACC/PHILPA personnel;
2. New employees who are not civil service eligibles
have been appointed to positions in the new staffing
pattern of OMA; CSC approval of these
appointments is subject to the result of
reorganization appeals;
3. The positions involved are not confidential
positions and hence, not subject to the trust and
confidence of the appointing authority;
4. There is no substantial change in the mandate of
the new office, which is the OMA. Executive Order
Nos. 6 and 122-A clearly delineates the functions
and responsibilities of OMA as envisioned by
Executive Order No. 6 and 122-A of President
Corazon C. Aquino;
5. The incumbents of OMACC and PHILPA are
entitled to security of tenure and therefore to
reappointment in the newly created agencies such
as Office on Muslim Affairs, Office of Northern
Cultural Communities and Office of Southern
Cultural Communities; and
6. OMA did not observe the transparency
requirement by treating the OMA Plantilla of
Personnel and staffing pattern confidential. (Rollo,
G.R. No. 88951, pp. 58-60)
These findings show that contrary to the petitioner's allegation, the
termination of the services of the private respondents was not done in
good faith.
In G.R. No. 89427, the Solicitor General, instead of filing a Comment
to the Petition, filed a Manifestation on December 23, 1989 stating
therein that he was informed by respondent Secretary of Health
Alfredo R.A. Bengzon "that the papers for the reinstatement of Dr.
Villazor are now undergoing process in the Department and said
petitioner will be reinstated to his position as Assistant Provincial
Health Officer.' The Solicitor General, therefore, manifests that the
instant petition should be dismissed for being academic.
This manifestation was opposed by the petitioner who claims that the
processing of his papers for reinstatement is not a reinstatement but
simply a process and until the petitioner is actually reinstated the
instant case cannot be purely academic.
Considering the manifestation and the opposition thereto, we rule that
the petition has indeed become academic. No useful purpose can be
served by discussing the issues as to whether or not the petitioner
should be reinstated when the public respondent by assuring this
Court that the petitioner shall be restored to his former position has
recognized the petitioner's right to be given back the position earlier
taken away from him.
IV
One of the causes of instability constituting a clear deterrent to
efficiency and honesty in Government is the widespread and
incessant reorganization of executive departments and offices, the
abolition of all positions from the highest to the lowest and the
subsequent restoration and filling up of all the abolished items and
new ones that have been created.
Security of tenure, together with the merit and fitness rule, is a basic
feature of the civil service scheme we have adopted in the
Philippines. If established principles protecting security of tenure are
to be disregarded or waived, this can be done only on the basis of
clear constitutional grounds.
It is significant that in the charters or legislative authority for the
exercise of power-the Provisional Constitution of 1986, Executive
Order No. 17, and Republic Act No. 6656- any reorganization in
Government must follow the bona-fide rule. There is no basis in the
above laws for indiscriminate dismissals. The executive implementors
of policy are required to abide by the intent and purpose stated in the
grant of power, to follow the guidelines set out for them and, in the
words of the President "ensure that only those found corrupt,
inefficient, and undeserving are separated from the government
service."
We are constrained to set aside the reorganizations embodied in
these consolidated petitions because the heads of departments and
agencies concerned have chosen to rely on their own concepts of
unlimited discretion and "progressive" Ideas on reorganization
instead of showing that they have faithfully complied with the clear
letter and spirit of the two Constitutions and the statutes governing
reorganization.
The auto-limitations imposed by the President on herself have not
been followed by the alter egos. The members of Congress have
spoken out on how any valid reorganization should be conducted.
Their voice should be heeded.
The Damocles sword of reorganization hanging over the heads of
public servants with every change of administration and sometimes
with the change of agency heads does not serve in any way the
restoration of democracy, the eradication of graft and corruption, and
the rebuilding of confidence in the government if the bona-fide rule
and the basic guidelines are not followed.
The justification implicit in all these purges, which is to rid the
government of the iniquitous vestiges of the past regime or of any
regime for that matter is conceded. If the purges were limited to policy
making officials, administrators, commissioners, special assistants,
directors and other high-ranking personnel there may be some legal
basis for their dismissal on a more or less summary inquiry into their
shortcomings. However, we fail to see how drivers, messengers,
clerks and lower-level employees like most of the petitioners who
have been working at ordinary jobs for decades could in any way be
iniquitous vestiges of any regime. These low ranking employees, who
had nothing to do with martial law or hidden wealth, suffer the most
from indiscriminate firings.
The issues are not limited to the employees or the departments
and/or agencies of the government now before us. For any one who
is affected, a termination notice is the equivalent of capital
punishment. A driver who has worked 27 years in the government, a
budget examiner for 25 years, a messenger for 14 years and many of
the other petitioners would find it difficult to find new employment
after giving the best years of their humble lives to the government
service. And even for those who are re- appointed, the damage to the
civil service has been done. Instead of amassing credits based on
merit or fitness, these employees will be thinking in terms of
patronage, as to who might be of help come the next reorganization.
We stressed in the case of Meram v. Edralin (154 SCRA 238 [1987]):
The principles governing the integrity of the civil
service are of universal validity. As stated in the
case of Hanley v. Murphy (255 P. 2d. 1, 4):
... The civil service system rests on the
principle of application of the merit
system instead of the spoils system in
the matter of appointment and tenure of
office. (Barry v. Jackson, 30 Cal. App.
 165, 169, 157 P. 828) To that end the
charter establishes a classified civil
service system, with exclusive power in
the civil service commission to provide
qualified personnel, for the various
municipal departments and to classify or
reclassify positions according to
prescribed duties. ...
Furthermore, civil service laws are not enacted to
penalize anyone. They are designated to eradicate
the system of appointment to public office based on
political considerations and to eliminate as far as
practicable the element of partisanship and
personal favoritism in making appointments. These
laws intend to establish a merit system of fitness
and efficiency as the basis of appointment; to
secure more competent employees, and thereby
promote better government. (See Gervais v. New
Orleans Police Department, 77 So 2d, 393; Civil
Service Board of City of Phoenix v. Warren, 244 P
2d 11 57 citing State ex rel. Kos v. Adamson, 226
Minn. 177, 32 N. W. 2d 281, 284).
Only a scrupulous adherence to the bona-fide rule will prevent the
erosion of the fragile foundations of the Philippine civil service. The
development of a truly career and non-partisan civil service is a must
in sound developmental planning. Its achievement will not be helped
in any way by the kind of reorganization challenged in these petitions.
The wounds inflicted by indiscriminate dismissals of all employees,
even on those later reappointed to their former positions, win take a
long time to heal. If a person is dismissed from his job, he should be
informed of the reason. The reason should be in the Civil Service Law
or, at least, in the law authorizing the removal. The reason must have
a reasonable relationship to the employee's merit and fitness for the
job. He must be given, before he is fired, an opportunity to show that
the cause for removal does not apply to Mm. Elementary principles of
fairness and compassion are essential. Only then can the
reconciliation and unity so earnestly sought today be achieved.
WHEREFORE, PREMISES CONSIDERED, the Court hereby renders
judgment as follows:
1) In G.R. No. 78053, the petition is GRANTED. The
LETTER-ORDER dated MARCH 19, 1987 issued
by the public respondent which terminated the
services of the petitioner is SET ASIDE. The
successor of the public respondent, the former
Lourdes R. Quisumbing as Secretary of Education,
Culture and Sports, is ordered to restore the
petitioner to his position as Schools Division
Superintendent of Surigao City without loss; of
seniority rights and with back salaries reckoned
from the date of his termination.
2) In G.R. No. 78625, the petition is GRANTED. All
office orders and memoranda issued, pursuant to
Executive Order No. 20 are declared null and void.
The public respondents or their successors are
ordered to immediately restore the petitioners to
their positions without loss of seniority rights and
with back salaries computed under the new staffing
pattern from the dates of their invalid terminations at
rates not lower than their former salaries.
3) In G.R. No. 81197 the petition is DISMISSED for
being MOOT and ACADEMIC and for the failure of
petitioners to prosecute their case.
4) In G.R. No. 81495, the petition is DISMISSED.
Except in the cases of those who have retired or
opted to be phased out and who have received their
separation and retirement benefits, the petitioners
are ordered to retain the private respondents-
employees in the reorganized department under the
new staffing pattern with positions and salaries
comparable or equivalent to their former positions
but not lower than their former ranks and salaries.
5) In G.R. No. 81928, the petition is GRANTED. The
order dated September 25, 1981 issued by the
public respondent which terminated the petitioner's
employment is SET ASIDE. The public respondent
or his successor is ordered to reinstate and assign
the petitioner to any position closest to his old
position in either the STII or SEI in terms of
functions, duties, salary emoluments and privileges,
 and without demotion in his rank, salary and
privileges as of September 24, 1987 when the
invalid termination of services was effected.
6) In G.R. No. 81998, the petition is GRANTED. The
public respondents or their successors are ordered
to return the private respondents to their positions
with compensation based on comparable or
equivalent rates under the new staffing pattern but
not lower than their former salaries.
7) In G.R. No. 86504, the petition is DISMISSED.
The questioned resolutions of the Civil Service
Commission are AFFIRMED. The temporary
restraining order issued on September 5, 1989 is
lifted.
8) In G.R. No. 86547, the petition is DISMISSED.
Except for those who retired or opted to be phased
out and who have received their separation and
retirement benefits, the petitioner or his successor is
ordered to return the private respondents to their
former positions or to positions of comparable rank
in the reorganized department without loss of
seniority rights.
9) In G.R. No. 88951, the petition is DISMISSED.
The questioned resolutions of the Civil Service
Commission are AFFIRMED.
10) In G.R. No. 89427 the petition is DISMISSED
for being MOOT and ACADEMIC.
SO ORDERED.
Cruz, Paras, Gancayco, Bidin, Sarmiento, Cortes, Medialdea and
Regalado, JJ., concur.
Padilla, J., took no part.
Griño-Aquino, J., is on leave.

Separate Opinions

FERNAN, C.J., Separate Concurring & Dissenting:

I write this separate opinion upon the sad realization that in the final
analysis, we may have unwittingly frustrated our people's
unmistakable clamor for a complete reorganization of the
government. 1 For in ruling as it did in these consolidated cases (As
in the Dario cases, G.R. No. 81954, August 8, 1989), the majority has
in no uncertain terms set to naught the reorganization efforts not only
in the various departments, agencies and offices involved herein, but
in the entire bureaucracy.
The majority would insist on distinguishing the reorganization process
effected under the Freedom Constitution from that which may be
undertaken under the 1987 Constitution, with the self-defeating
proviso that in the latter case, "civil service eligibles can no longer be
removed without cause as they already enjoy the constitutional right
to security of tenure. 2 Such fragmented view does not sit well with
the law. It does not take into account the various reorganization
executive orders issued by the President prior to the ratification of the
1987 Constitution precisely to ensure the continuity of the
reorganization process commenced under the Freedom Constitution
and carried over to the 1987 Constitution, or the recognition by the
latter constitution itself of the "reorganization following the ratification
of this Constitution 3 which, to my mind, cannot but mean the same
reorganization contemplated under the Freedom Constitution.
Otherwise, the 1987 Constitution would have provided for an
automatic hold-over clause as did the 1935 and 1973 Constitutions.
Such clause was, however, deemed no longer necessary for the
same has been provided under the Freedom Constitution and the
various reorganization executive orders.
Nor does the interpretation insisted upon by the majority jibe with
reality. The reorganization of a department with its numerous
bureaus, offices and sections is a major undertaking. It entails
intensive management study and audit, personnel evaluation,
formulation of new position structures and staffing patterns, budget
allocation, etc., which steps necessarily take time to accomplish. With
the Court's pronouncement in these cases and the Dario cases,
supra, cutting short the reorganization process mandated by the
people in the Freedom Constitution to February 2,1987, it is indeed
doubtful whether any government department had fully implemented
its reorganization program, that is, if it had at all formulated one,
considering time constraints.
But by herein maintaining the basis of my dissent in the said Dario
Cases, supra, that the reorganization pursuant to Proclamation No. 3
continues even after the ratification of the 1987 Constitution, I find
myself concurring in the result obtained in G.R. No. 78053.
Therein petitioner Francisco L. Mendoza was Schools Division
Superintendent in the then Ministry (now Department) of Education,
Culture and Sports, with official station at Surigao City. Pursuant to
the government reorganization decreed under Art. III of the Freedom
Constitution, he was appointed to the same position with the same
place of assignment effective June 4,1986. Sometime during the last
week of March, 1987, he received, through the Regional Director,
Region X, a letter order dated March 19, 1987 signed by respondent
Secretary of Education, Culture and Sports Lourdes R. Quisumbing,
informing him of his separation from the service effective April 15,
1987. 4 Cited as basis for said personnel action was Executive Order
No. 117 approved by President Aquino on January 30, 1987.
The arbitrariness in this case is obvious. Even before Executive
Order No. 117, the law relied upon by respondent, was enacted on
January 30, 1987, the government reorganization mandated under
the Freedom Constitution was already being implemented. In fact, as
aforesaid, said executive order as well as the other reorganization
executive orders were intended to prolong or extend the period of
implementing the reorganization program. Simply put, Executive
Order No. 117 was a mere continuation of the government
reorganization being implemented at the time of its enactment. Upon
these considerations, there can be no plausible explanation why in
June, 1986, when the government reorganization was already being
implemented, petitioner was deemed qualified to remain in the
service, as evidenced by the issuance of an appointment (actually a
re-appointment) to him on a permanent status as Schools Division
Superintendent, yet barely ten (10) months after, he was suddenly
found unfit to continue in office. The questioned personnel action
becomes even more perplexing when taken in conjunction with the
performance rating of "Very Satisfactory" given to petitioner during
the period May, 1986 to April 1987, the very month he was
considered separated from the service. 5
I cannot, however, reconcile myself with the alacrity by which the
majority would attribute bad faith to the reorganization undertaken by
some respondents (particularly the Department of Tourism in G.R.
No. 78525) based on standards established by a subsequent law of
doubtful constitutionality. 6 The principle is that good faith is
presumed while bad faith must be proved. The majority would reverse
the rule despite a showing, unrebutted by petitioners in G.R. No.
78525, that all personnel actions were taken on the basis of
interviews, evaluation of supervisors, performance and self-appraisal
of the employees, as well as recommendations of Civil Service
Commissioners, who were chided for not knowing any better "than to
participate in a violation of the rules of their agency." 7 Indeed, one is
compelled to ask: if you can't rely on the advice of experts, whom can
you depend on?
The security-of-tenure argument accorded merit by the majority would
hold water under ordinary circumstances, but not under the
exceptional factual milieu obtaining in the cases at bar. The removal
from office of petitioners, respondents in some cases, was the result
of the reorganization of the various executive departments
undertaken immediately after the installation of the Aquino
government, at which time, the people's clamor to promote efficiency
and effectiveness in the delivery of public service, rebuild confidence
in the entire governmental system and eradicate graft and corruption
therein was at its highest. The need was so grave and serious, so
basic and urgent, that nothing less than extra-ordinary measures
were called for. In the balancing of interests, as between the very
essence of a government as a machinery for the common good and
the security of tenure guaranteed by the Constitution to those in
government service, one must prevail. Since in our form of govern-
ment, public offices are public trusts, and the officers are servants of
the people and not their rulers, the choice is evident.
There is no gainsaying the initial difficulty facing those who were
displaced by reason of the sweeping governmental reorganization.
The government itself however, has adopted such measures as to
"soften the impact" by providing, among others, in its Guidelines on
the Implementation of Reorganization Executive Orders that in the
event of termination, the employees shall:
a) be included in a consolidated list compiled by the
Department of Budget and Management. All
departments who are recruiting shall give
preference to the employees in the fist; and
b) continue to receive salary and benefits until
December 31, 1987; and
c) be guaranteed the release of separation benefits,
within 45 days from termination and in no case later
than February 15, 1988. 8
We have also seen in these cases instances where the separated
employees were re- hired when items suited to their qualifications
were available. 9
The traditional misconception on the role of the government as a
haven of refuge for the unemployed, the unqualified and the unskilled
must cease. If the value reorientation of our people could be effected
only through drastic and harsh measures, as the recent government
reorganization and streamlining appear to be, so be it. The present
government cannot and should not be burdened with excess
personnel without special talents whose indiscriminate recruitment
into the government service was done under the whim and caprice of
a one-man ruler.

Melencio-Herrera, J. , dissenting.
I reiterate the grounds of my dissent in the Mison and companion
cases.
Narvasa and Feliciano, JJ., concur.

Separate Opinions
FERNAN, C.J., Separate Concurring & Dissenting:
I write this separate opinion upon the sad realization that in the final
analysis, we may have unwittingly frustrated our people's
unmistakable clamor for a complete reorganization of the
government. 1 For in ruling as it did in these consolidated cases (As
in the Dario cases, G.R. No. 81954, August 8, 1989), the majority has
in no uncertain terms set to naught the reorganization efforts not only
in the various departments, agencies and offices involved herein, but
in the entire bureaucracy.
The majority would insist on distinguishing the reorganization process
effected under the Freedom Constitution from that which may be
undertaken under the 1987 Constitution, with the self-defeating
proviso that in the latter case, "civil service eligibles can no longer be
removed without cause as they already enjoy the constitutional right
to security of tenure. 2 Such fragmented view does not sit well with
the law. It does not take into account the various reorganization
executive orders issued by the President prior to the ratification of the
1987 Constitution precisely to ensure the continuity of the
reorganization process commenced under the Freedom Constitution
and carried over to the 1987 Constitution, or the recognition by the
latter constitution itself of the "reorganization following the ratification
of this Constitution 3 which, to my mind, cannot but mean the same
reorganization contemplated under the Freedom Constitution.
Otherwise, the 1987 Constitution would have provided for an
automatic hold-over clause as did the 1935 and 1973 Constitutions.
Such clause was, however, deemed no longer necessary for the
same has been provided under the Freedom Constitution and the
various reorganization executive orders.
Nor does the interpretation insisted upon by the majority jibe with
reality. The reorganization of a department with its numerous
bureaus, offices and sections is a major undertaking. It entails
intensive management study and audit, personnel evaluation,
formulation of new position structures and staffing patterns, budget
allocation, etc., which steps necessarily take time to accomplish. With
the Court's pronouncement in these cases and the Dario cases,
supra, cutting short the reorganization process mandated by the
people in the Freedom Constitution to February 2,1987, it is indeed
doubtful whether any government department had fully implemented
its reorganization program, that is, if it had at all formulated one,
considering time constraints.
But by herein maintaining the basis of my dissent in the said Dario
Cases, supra, that the reorganization pursuant to Proclamation No. 3
continues even after the ratification of the 1987 Constitution, I find
myself concurring in the result obtained in G.R. No. 78053.
Therein petitioner Francisco L. Mendoza was Schools Division
Superintendent in the then Ministry (now Department) of Education,
Culture and Sports, with official station at Surigao City. Pursuant to
the government reorganization decreed under Art. III of the Freedom
Constitution, he was appointed to the same position with the same
place of assignment effective June 4,1986. Sometime during the last
week of March, 1987, he received, through the Regional Director,
Region X, a letter order dated March 19, 1987 signed by respondent
Secretary of Education, Culture and Sports Lourdes R. Quisumbing,
informing him of his separation from the service effective April 15,
1987. 4 Cited as basis for said personnel action was Executive Order
No. 117 approved by President Aquino on January 30, 1987.
The arbitrariness in this case is obvious. Even before Executive
Order No. 117, the law relied upon by respondent, was enacted on
January 30, 1987, the government reorganization mandated under
the Freedom Constitution was already being implemented. In fact, as
aforesaid, said executive order as well as the other reorganization
executive orders were intended to prolong or extend the period of
implementing the reorganization program. Simply put, Executive
Order No. 117 was a mere continuation of the government
reorganization being implemented at the time of its enactment. Upon
these considerations, there can be no plausible explanation why in
June, 1986, when the government reorganization was already being
implemented, petitioner was deemed qualified to remain in the
service, as evidenced by the issuance of an appointment (actually a
re-appointment) to him on a permanent status as Schools Division
Superintendent, yet barely ten (10) months after, he was suddenly
found unfit to continue in office. The questioned personnel action
becomes even more perplexing when taken in conjunction with the
performance rating of "Very Satisfactory" given to petitioner during
the period May, 1986 to April 1987, the very month he was
considered separated from the service. 5
I cannot, however, reconcile myself with the alacrity by which the
majority would attribute bad faith to the reorganization undertaken by
some respondents (particularly the Department of Tourism in G.R.
No. 78525) based on standards established by a subsequent law of
doubtful constitutionality. 6 The principle is that good faith is
presumed while bad faith must be proved. The majority would reverse
the rule despite a showing, unrebutted by petitioners in G.R. No.
78525, that all personnel actions were taken on the basis of
interviews, evaluation of supervisors, performance and self-appraisal
of the employees, as well as recommendations of Civil Service
Commissioners, who were chided for not knowing any better "than to
participate in a violation of the rules of their agency." 7 Indeed, one is
compelled to ask: if you can't rely on the advice of experts, whom can
you depend on?
The security-of-tenure argument accorded merit by the majority would
hold water under ordinary circumstances, but not under the
exceptional factual milieu obtaining in the cases at bar. The removal
from office of petitioners, respondents in some cases, was the result
of the reorganization of the various executive departments
undertaken immediately after the installation of the Aquino
government, at which time, the people's clamor to promote efficiency
and effectiveness in the delivery of public service, rebuild confidence
in the entire governmental system and eradicate graft and corruption
therein was at its highest. The need was so grave and serious, so
basic and urgent, that nothing less than extra-ordinary measures
were called for. In the balancing of interests, as between the very
essence of a government as a machinery for the common good and
the security of tenure guaranteed by the Constitution to those in
government service, one must prevail. Since in our form of govern-
ment, public offices are public trusts, and the officers are servants of
the people and not their rulers, the choice is evident.
There is no gainsaying the initial difficulty facing those who were
displaced by reason of the sweeping governmental reorganization.
The government itself however, has adopted such measures as to
"soften the impact" by providing, among others, in its Guidelines on
the Implementation of Reorganization Executive Orders that in the
event of termination, the employees shall:
a) be included in a consolidated list compiled by the
Department of Budget and Management. All
departments who are recruiting shall give
preference to the employees in the fist; and
b) continue to receive salary and benefits until
December 31, 1987; and
c) be guaranteed the release of separation benefits,
within 45 days from termination and in no case later
than February 15, 1988. 8
We have also seen in these cases instances where the separated
employees were re- hired when items suited to their qualifications
were available. 9
The traditional misconception on the role of the government as a
haven of refuge for the unemployed, the unqualified and the unskilled
must cease. If the value reorientation of our people could be effected
only through drastic and harsh measures, as the recent government
reorganization and streamlining appear to be, so be it. The present
government cannot and should not be burdened with excess
personnel without special talents whose indiscriminate recruitment
into the government service was done under the whim and caprice of
a one-man ruler.

Melencio-Herrera, J., dissenting.

I reiterate the grounds of my dissent in the Mison and companion
cases.
Narvasa and Feliciano, JJ., concur.
Footnotes
1 Preamble and Article II, Section I (a),
Proclamation No. 3, March 25,1986.
2 p. 50, Decision.
3 Section 16, Art. XVIII.
4 Exh. "B", Petition, p. 12, Rollo in G.R. No. 78053.
5 Exh. "C', Reply, p. 85, Rollo in G.R. No. 78053.
6 R.A. 6656.
7 p. 47, Decision.
8 par. 3.
9 e.g. G.R. No. 81197 Dolores Garcia, et al. vs.
Hon. Teodoro C. Benigno, et al. and G.R. No.
89427 Conrado Villasor vs. Hon. Alfredo R.A.
Bengzon.
Notes:
The Provincial Government of Camarines Norte vs. Gonzales
EN BANC
G.R. No. 185740 July 23, 2013
DECISION
BRION, J.:
We resolve the Provincial Government of Camarines Norte's
(petitioner) petition for review on certiorari1 assailing the Decision2
dated June 25, 2008 and the Resolution3 dated December 2, 2008 of
the Court of Appeals (CA) in CA-G.R. SP No. 97425, reinstating
respondent Beatriz O. Gonzales as the Province of Camarines
Norte’s provincial administrator, or to an equivalent position.
Factual Antecedents
Gonzales was appointed as the provincial administrator of the
Province of Camarines Norte by then Governor Roy A. Padilla, Jr. on
April 1, 1991. Her appointment was on a permanent capacity. On
March 8, 1999, Governor Jess B. Pimentel sent Gonzales a
memorandum directing her to explain in writing why no administrative
charges should be filed against her for gross insubordination/gross
discourtesy in the course of official duties, and conduct grossly
prejudicial to the best interest of the service; this was later on
captioned as Administrative Case No. 001. After Gonzales submitted
her comment, an Ad Hoc Investigation Committee found her guilty of
the charges against her, and recommended to Governor Pimentel
that she be held administratively liable.4 On September 30, 1999,
Governor Pimentel adopted the Ad Hoc Investigation Committee’s
recommendation and dismissed Gonzales.5
Proceedings before the Civil Service Commission
Gonzales appealed Governor Pimentel’s decision to the Civil Service
Commission (CSC). The CSC issued Resolution No. 0014186
modifying Governor Pimentel’s decision, finding Gonzales guilty of
insubordination and suspending her for six months. This decision was
appealed by Governor Pimentel, which the CSC denied in its
Resolution No. 001952.7
Gonzales then filed a motion for execution and clarification of
Resolution No. 001418, in which she claimed that she had already
served her six-month suspension and asked to be reinstated. The
CSC issued Resolution No. 002245,8 which directed Gonzales’
reinstatement.
Governor Pimentel reinstated Gonzales as provincial administrator on
October 12, 2000, but terminated her services the next day for lack of
confidence. He then wrote a letter9 to the CSC reporting his
compliance with its order, and Gonzales’ subsequent dismissal as a
confidential employee. In his letter, Governor Pimentel cited
Resolution No. 0001158,10 where the CSC ruled that the provincial
administrator position is highly confidential and is coterminous in
nature.
The CSC responded through Resolution No. 030008,11 which again
directed Gonzales’ reinstatement as provincial administrator. It
clarified that while the Local Government Code of 1991 (Republic Act
No. RA 7160) made the provincial administrator position coterminous
and highly confidential in nature, this conversion cannot operate to
prejudice officials who were already issued permanent appointments
as administrators prior to the new law’s effectivity. According to the
CSC, Gonzales has acquired a vested right to her permanent
appointment as provincial administrator and is entitled to continue
holding this office despite its subsequent classification as a
coterminous position. The conversion of the provincial administrator
position from a career to a non-career service should not jeopardize
Gonzales’ security of tenure guaranteed to her by the Constitution. As
a permanent appointee, Gonzales may only be removed for cause,
after due notice and hearing. Loss of trust and confidence is not
among the grounds for a permanent appointee’s dismissal or
discipline under existing laws.
In a letter12 dated February 17, 2005, Gonzales wrote the CSC
alleging that Governor Jesus O. Typoco, Jr., Camarines Norte’s
incumbent governor, refused to reinstate her. The CSC responded
with Resolution No. 061988,13 which ordered Gonzales’ reinstatement
to the provincial administrator position, or to an equivalent
position.Thus, the petitioner, through Governor Typoco, filed a
petition for review before the CA, seeking to nullify the CSC’s
Resolution No. 030008 and Resolution No. 061988.
The Appellate Court’s Ruling
The CA supported the CSC’s ruling that reinstated Gonzales as
provincial administrator or to an equivalent position.14
Citing Aquino v. Civil Service Commission,15 the CA emphasized that
an appointee acquires a legal right to his position once he assumes a
position in the civil service under a completed appointment. This legal
right is protected both by statute and the Constitution, and he cannot
be removed from office without cause and previous notice and
hearing. Appointees cannot be removed at the mere will of those
vested with the power of removal, or without any cause.
The CA then enumerated the list of valid causes for a public officer’s
removal under Section 46,16 Book V, Title I, Subtitle A of the Revised
Administrative Code (Administrative Code), and noted that lack of
confidence was not in the list. Thus, the CA concluded that Gonzales’
dismissal on the ground of loss of confidence violated her security of
tenure, and that she has the right to be reinstated with payment of
backwages.
The CA further held that Gonzales’ dismissal was illegal because it
was done without due process. The proceedings under Administrative
Case No. 001 cannot be the basis for complying with the
requirements of due process because they are separate and distinct
from the proceedings in the present controversy. Thus, Gonzales was
illegally terminated when she was dismissed for lack of confidence,
without any hearing, the day after she was reinstated.
Lastly, the CA noted that Resolution No. 002245, which modified
Governor Pimentel’s decision, has long been final and executory. The
petitioner did not file any petition for reconsideration against
Resolution No. 002245, and hence, it is no longer alterable.
The petitioner sought a reconsideration17 of the CA’s Decision, which
the CA denied in a Resolution18 dated December 2, 2008.
The Present Petition
In its present petition for review on certiorari, the petitioner argues
that the provincial administrator position has been converted into a
highly confidential, coterminous position by RA 7160. Hence,
Gonzales no longer enjoyed security of tenure to the position she
held prior to RA 7160’s enactment.
In her Comment19 and Memorandum,20 Gonzales maintained that the
provincial administrator remained a career service position. Section
721 of Presidential Decree No. 807, which was one of the bases of the
Court in Laurel V v. Civil Service Commission22 to declare the
provincial administrator as a career service position, is a verbatim
copy of Section 7,23 Chapter 2 of the Administrative Code. This
classification, established by law and jurisprudence, cannot be
altered by the mere implementing rules and regulations of RA 7160.
And assuming arguendo that the provincial administrator position has
indeed become a primarily confidential position, this reclassification
should not apply retroactively to Gonzales’ appointment on a
permanent capacity prior to RA 7160’s effectivity.
 Issues
The parties’ arguments, properly joined, present to us the following
issues:
1) Whether Congress has re-classified the provincial
administrator position from a career service to a primarily
confidential, non-career service position; and
2) Whether Gonzales has security of tenure over her
position as provincial administrator of the Province of
Camarines Norte.
The Court’s Ruling
We find the petition meritorious.
Congress has reclassified the provincial administrator position as a
primarily confidential, non-career position
We support the CSC’s conclusion that the provincial administrator
position has been classified into a primarily confidential, non-career
position when Congress, through RA 7160, made substantial
changes to it. First, prior to RA 7160, Batas Pambansa Blg. 337, the
old Local Government Code (LGC), did not include a provincial
administrator position among the listing of mandatory provincial
officials,24 but empowered the Sangguniang Panlalawigan to create
such other offices as might then be necessary to carry out the
purposes of the provincial government.25 RA 7160 made the position
mandatory for every province.26 Thus, the creation of the provincial
administrator position under the old LGC used to be a prerogative of
the Sangguniang Panlalawigan.
Second, in introducing the mandatory provincial administrator
position, RA 7160 also amended the qualifications for the provincial
administrator position. While Section 48027 of RA 7160 retained the
requirement of civil service eligibility for a provincial administrator,
together with the educational requirements, it shortened the six-year
work experience requirement to five years.28 It also mandated the
additional requirements of residence in the local government
concerned, and imposed a good moral character requirement.
Third, RA 7160 made the provincial administrator position
coterminous with its appointing authority, reclassifying it as a non-
career service position that is primarily confidential.
Before RA 7160 took effect, Laurel classified the provincial
administrator position as an open career position which required
qualification in an appropriate examination prior to appointment.
Laurel placed the provincial administrator position under the second
major level of positions in the career service under Section 7 of
Presidential Decree No. 807. This provision reads:
Section 7. Classes of Positions in the Career Service.
(a) Classes of positions in the career service appointment to which
requires examinations shall be grouped into three major levels as
follows:
xxxx
2. The second level shall include professional, technical, and
scientific positions which involve professional, technical, or scientific
work in a non-supervisory or supervisory capacity requiring at least
four years of college work up to Division Chief level.
Section 480 of RA 7160 made the provincial administrator’s functions
closely related to the prevailing provincial administration by identifying
the incumbent with the provincial governor to ensure the alignment of
the governor’s direction for the province with what the provincial
administrator would implement. In contrast with the general direction
provided by the provincial governor under the Manual of Position
Descriptions cited in Laurel, Section 480(b) of RA 7160 now
mandates constant interaction between the provincial administrator
and the provincial governor, to wit:
(b) The administrator shall take charge of the office of the
administrator and shall:
(1) Develop plans and strategies and upon approval
thereof by the governor or mayor, as the case may be,
implement the same particularly those which have to do
with the management and administration-related
programs and projects which the governor or mayor is
empowered to implement and which the sanggunian is
empowered to provide for under this Code;
(2) In addition to the foregoing duties and functions, the
administrator shall:
(i) Assist in the coordination of the work of all the officials of the local
government unit, under the supervision, direction, and control of the
governor or mayor, and for this purpose, he may convene the chiefs
of offices and other officials of the local government unit;
xxxx
(4) Recommend to the sanggunian and advise the governor and
mayor, as the case may be, on all other matters relative to the
management and administration of the local government unit.
[emphases and italics ours]
As the CSC correctly noted in Resolution No. 0001158,29 the
administrator position demands a close intimate relationship with the
office of the governor (its appointing authority) to effectively develop,
implement and administer the different programs of the province. The
administrator’s functions are to recommend to the Sanggunian and to
advise the governor on all matters regarding the management and
administration of the province, thus requiring that its occupant enjoy
the governor’s full trust and confidence.
To emphasize the close relations that the provincial administrators’
functions have with the office of the governor, RA 7160 even made
the provincial administrator position coterminous with its appointing
authority.30 This provision, along with the interrelations between the
provincial administrator and governor under Section 480, renders
clear the intent of Congress to make the provincial administrator
position primarily confidential under the non-career service category
of the civil service.
Congress’ reclassification of the provincial administrator position in
RA 7160 is a valid exercise of legislative power that does not violate
Gonzales’ security of tenure
Having established that Congress has changed the nature of the
provincial administrator position to a primarily confidential employee,
the next question to address would be its impact on Gonzales’
security of tenure. According to the petitioner, Gonzales lost her
security of tenure when the provincial administrator position became
a primarily confidential position. Gonzales, on the other hand, retorted
that the conversion of the position should not be retroactively applied
to her, as she is a permanent appointee. Both the CA and the CSC
ruled in favor of the latter, and gave premium to Gonzales’ original
permanent appointment under the old LGC. They posit that Gonzales
acquired a vested legal right over her position from the moment she
assumed her duties as provincial administrator. Thus, she cannot be
removed from office except for cause and after due hearing;
otherwise such removal would amount to a violation of her security of
tenure.
The arguments presented by the parties and ruled upon by the CA
reflect a conceptual entanglement between the nature of the position
and an employee’s right to hold a position. These two concepts are
different. The nature of a position may change by law according to
the dictates of Congress. The right to hold a position, on the other
hand, is a right that enjoys constitutional and statutory guarantee, but
may itself change according to the nature of the position.
Congress has the power and prerogative to introduce substantial
changes in the provincial administrator position and to reclassify it as
a primarily confidential, non-career service position. Flowing from the
legislative power to create public offices is the power to abolish and
modify them to meet the demands of society;31 Congress can change
the qualifications for and shorten the term of existing statutory offices.
When done in good faith, these acts would not violate a public
officer’s security of tenure, even if they result in his removal from
office or the shortening of his term.32 Modifications in public office,
such as changes in qualifications or shortening of its tenure, are
made in good faith so long as they are aimed at the office and not at
the incumbent.33
In Salcedo and Ignacio v. Carpio and Carreon,34 for instance,
Congress enacted a law modifying the offices in the Board of Dental
Examiners. The new law, RA 546, raised the qualifications for the
board members, and provided for a different appointment process.
Dr. Alfonso C. Salcedo and Dr. Pascual Ignacio, who were incumbent
board members at the time RA 546 took effect, filed a special civil
action for quo warranto against their replacements, arguing that their
term of office under the old law had not yet expired, and neither had
they abandoned or been removed from office for cause. We
dismissed their petition, and held that Congress may, by law,
terminate the term of a public office at any time and even while it is
occupied by the incumbent. Thus, whether Dr. Salcedo and Dr.
Ignacio were removed for cause or had abandoned their office is
immaterial.
More recently, in Dimayuga v. Benedicto II,35 we upheld the removal
of Chona M. Dimayuga, a permanent appointee to the Executive
Director II position, which was not part of the career executive service
at the time of her appointment. During her incumbency, the CSC, by
authority granted under Presidential Decree No. 1, classified the
Executive Director II position to be within the career executive
service. Since Dimayuga was not a career executive service officer,
her initially permanent appointment to the position became
temporary; thus, she could be removed from office at any time.
In the current case, Congress, through RA 7160, did not abolish the
provincial administrator position but significantly modified many of its
aspects. It is now a primarily confidential position under the non-
career service tranche of the civil service. This change could not have
been aimed at prejudicing Gonzales, as she was not the only
provincial administrator incumbent at the time RA 7160 was enacted.
Rather, this change was part of the reform measures that RA 7160
introduced to further empower local governments and decentralize
the delivery of public service. Section 3(b) of RA 7160 provides as
one of its operative principles that:
(b) There shall be established in every local government unit an
accountable, efficient, and dynamic organizational structure and
operating mechanism that will meet the priority needs and service
requirements of its communities.
Thus, Gonzales’ permanent appointment as provincial administrator
prior to the enactment of RA 7160 is immaterial to her removal as
provincial administrator. For purposes of determining whether
Gonzales’ termination violated her right to security of tenure, the
nature of the position she occupied at the time of her removal should
be considered, and not merely the nature of her appointment at the
time she entered government service.
In echoing the CSC and the CA’s conclusion, the dissenting opinion
posits the view that security of tenure protects the permanent
appointment of a public officer, despite subsequent changes in the
nature of his position.
Citing Gabriel v. Domingo,36 the dissenting opinion quotes our
categorical declaration that "a permanent employee remains a
permanent employee unless he is validly terminated," and from there
attempts to draw an analogy between Gabriel and the case at hand.
The very first sentence of Gabriel spells out its vast difference from
the present case. The sole and main issue in Gabriel is whether
backwages and other monetary benefits could be awarded to an
illegally dismissed government employee, who was later ordered
reinstated. From this sentence alone can be discerned that the issues
involved related to the consequences of illegal dismissal rather than
to the dismissal itself. Nowhere in Gabrielwas there any mention of a
change in the nature of the position held by the public officer
involved.
Further, key factual differences make Gabriel inapplicable to the
present case, even if only by analogy: first, the public officer in
Gabriel received a Memorandum stating that he would be appointed
as Transportation District Supervisor III under their office
reorganization. Second, the Court in Gabriel clearly pointed out that
the reason for his eventual appointment as a casual employee, which
led to his termination from service, was due to a pending protest he
filed before the CSC – indicating that there was no ground for him to
not receive the appointment earlier promised. In contrast, the issue of
Gonzales is whether the appointing authority’s lack of trust and
confidence in the appointee was sufficient cause for the termination
of employment of a primarily confidential employee. And third, there
was a change in the position held by the public officer in Gabriel. He
was a permanent employee who was extended a different
appointment, which was casual in nature, because of a protest that
he earlier filed. In contrast, the current case involves a public officer
who held the same position whose nature changed because of the
passage of RA 7160.
The dissent also quotes the penultimate paragraph of Civil Service
Commission v. Javier37 to support its contention that permanent
appointees could expect protection for their tenure and appointments
in the event that the Court determines that the position is actually
confidential in nature:
The Court is aware that this decision has repercussions on the tenure
of other corporate secretaries in various GOCCs. The officers likely
assumed their positions on permanent career status, expecting
protection for their tenure and appointments, but are now re-classified
as primarily confidential appointees. Such concern is unfounded,
however, since the statutes themselves do not classify the position of
corporate secretary as permanent and career in nature. Moreover,
there is no absolute guarantee that it will not be classified as
confidential when a dispute arises. As earlier stated, the Court, by
legal tradition, has the power to make a final determination as to
which positions in government are primarily confidential or otherwise.
In the light of the instant controversy, the Court's view is that the
greater public interest is served if the position of a corporate
secretary is classified as primarily confidential in nature.38
The quoted portion, however, even bolsters our theory. Read
together with its succeeding paragraph, the quoted portion in Civil
Service Commission v. Javier39 actually stands for the proposition
that other corporate secretaries in government-owned and –
controlled corporations cannot expect protection for their tenure and
appointments upon the reclassification of their position to a primarily
confidential position. There, the Court emphasized that these officers
cannot rely on the statutes providing for their permanent
appointments, if and when the Court determines these to be primarily
confidential. In the succeeding paragraph after the portion quoted by
the dissent, we even pointed out that there is no vested right to public
office, nor is public service a property right. Thus:
Moreover, it is a basic tenet in the country's constitutional system that
"public office is a public trust," and that there is no vested right in
public office, nor an absolute right to hold office. No proprietary title
attaches to a public office, as public service is not a property right.
Excepting constitutional offices which provide for special immunity as
regards salary and tenure, no one can be said to have any vested
right in an office. The rule is that offices in government, except those
created by the constitution, may be abolished, altered, or created
anytime by statute. And any issues on the classification for a position
in government may be brought to and determined by the courts.40
(emphases and italics ours)
Executive Order No. 503 does not grant Gonzales security of tenure
in the provincial administrator position on a permanent capacity
In extending security of tenure to Gonzales’ permanent appointment
as provincial administrator, the dissenting opinion cites as authority
Executive Order No. (EO) 503 which provided certain safeguards
against the termination of government employees affected by the
implementation of RA 7160. According to the dissenting opinion, EO
503 is an obvious indication of the executive department’s intent to
protect and uphold both the national government and the local
government employees’ security of tenure. It cites Section 2(a),
paragraph 8 (providing for the tenure of an administrator) to prove its
point:
8. Incumbents of positions, namely administrator, legal officer, and
information officer declared by the Code as coterminous, who hold
permanent appointments, shall continue to enjoy their permanent
status until they vacate their positions.
At first glance, EO 503 does seem to extend the provincial
administrators’ security of tenure in their permanent appointments
even beyond the effectivity of RA 7160. EO 503, however, does not
apply to employees of the local government affected by RA 7160’s
enactment. The title of EO 503 clearly provides for its scope of
application, to wit:
Executive Order No. 503. Providing for the Rules and Regulations
Implementing the Transfer of Personnel and Assets, Liabilities and
Records of National Government Agencies whose Functions are to
be Devolved to the Local Government Units and for other Related
Purposes. [underscore, italics and emphases ours]
A reading of EO 503’s whereas clauses confirms that it applies only
to national government employees whose functions are to be
devolved to local governments:
WHEREAS, Republic Act No. 7160, otherwise known as the Local
Government Code of 1991, hereinafter referred to as the Code,
transfers the responsibility for the delivery of basic services and
facilities from the national government agencies (NGAs) concerned to
the local government units (LGUs);
WHEREAS, the Code stipulated that the transfer of basic services
and facilities shall be accompanied by the transfer of the national
personnel concerned and assets to ensure continuity in the delivery
of such services and facilities;
WHEREAS, responsive rules and regulations are needed to affect the
required transfer of national personnel concerned and assets to the
LGUs. [underscores, italics and emphases ours]
Thus, paragraph 8, section 2(a) of EO 503 cannot apply to Gonzales,
a provincial administrator. As explained earlier, the existence of the
provincial administrator position was a prerogative of the Sanggunian
Panlalawigan, and was not even a mandatory public office under the
old LGC. It is clearly not a national government position whose
functions are to be devolved to the local governments.
The dissenting opinion, on the other hand, argues that EO 503 does
not apply to national government employees only. According to the
dissent, the phrase "and for related purposes" in EO 503’s title could
encompass personnel not necessarily employed by national
government agencies but by local government units such as the
administrator, the legal officer and the information officer, as
enumerated in Section 2(a), paragraph 8 thereof. This provision,
according to the dissent, fills the crucial gap left by RA 7160 which
did not provide whether the term of an incumbent provincial
administrator would automatically become coterminous with that of
the appointing authority upon RA 7160’s effectivity.
This kind of construction effectively adds to EO 503’s object matters
that it did not explicitly provide for. The phrase "and for other related
purposes" can only add to EO 503 matters related to the devolution
of personnel, basic services and facilities to local government units.
The impact of the change in a local government position’s nature is
clearly different from the implementation of devolution and its
ancillary effects: the former involves a change in a local government
position’s functions and concept of tenure, while the latter involves
(among other things) the transfer of national government employees
to local government units. This difference is highlighted by the fact
that EO 503, as reflected by its whereas clauses, was issued to
implement Section 17 of RA 7160. In contrast, the change in the
nature of the provincial administrator position may be gleaned from
Section 480 of RA 7160. Hence, by no stretch of reasonable
construction can the phrase "and for other related purposes" in EO
503’s title be understood to encompass the consequences of the
change in the local government position’s nature.
Furthermore, construing that the administrator position in Section
2(a), paragraph 8 pertains to city, municipal and/or provincial
administrators would result in a legal infirmity. EO 503 was issued
pursuant to the President’s ordinance powers to provide for rules that
are general or permanent in character for the purpose of
implementing the President’s constitutional or statutory powers.41
Exercising her constitutional duty to ensure that all laws are faithfully
executed, then President Corazon Aquino issued EO 503 to ensure
the executive’s compliance with paragraph (i), Section 17 of RA 7160,
which requires local government units to absorb the personnel of
national agencies whose functions shall be devolved to them.42 This
is reflected in EO 503’s title and whereas clauses, and its limited
application as discussed earlier.
Thus, the dissenting opinion’s interpretation would result in the
judicial recognition of an act of the Executive usurping a legislative
power. The grant of permanent status to incumbent provincial
administrators, despite the clear language and intent of RA 7160 to
make the position coterminous, is an act outside the President’s
legitimate powers. The power to create, abolish and modify public
offices is lodged with Congress.43 The President cannot, through an
Executive Order, grant permanent status to incumbents, when
Congress by law has declared that the positions they occupy are now
confidential. Such act would amount to the President’s amendment of
an act of Congress – an act that the Constitution prohibits. Allowing
this kind of interpretation violates the separation of powers, a
constitutionally enshrined principle that the Court has the duty to
uphold.44
The dissent counters this argument by pointing out that Section 2(a),
paragraph 8 of EO 503 enjoys the legal presumption of validity.
Unless the law or rule is annulled in a direct proceeding, the legal
presumption of its validity stands. The EO’s validity, however, is not in
question in the present case. What is at issue is a proper
interpretation of its application giving due respect to the principle of
separation of powers, and the dissenting opinion’s interpretation does
violence to this principle.
Gonzales has security of tenure, but only as a primarily confidential
employee
To be sure, both career and non-career service employees have a
right to security of tenure.1âwphi1 All permanent officers and
employees in the civil service, regardless of whether they belong to
the career or non-career service category, are entitled to this
guaranty; they cannot be removed from office except for cause
provided by law and after procedural due process.45 The concept of
security of tenure, however, labors under a variation for primarily
confidential employees due to the basic concept of a "primarily
confidential" position. Serving at the confidence of the appointing
authority, the primarily confidential employee’s term of office expires
when the appointing authority loses trust in the employee. When this
happens, the confidential employee is not "removed" or "dismissed"
from office; his term merely "expires"46 and the loss of trust and
confidence is the "just cause" provided by law that results in the
termination of employment. In the present case where the trust and
confidence has been irretrievably eroded, we cannot fault Governor
Pimentel’s exercise of discretion when he decided that he could no
longer entrust his confidence in Gonzales.
Security of tenure in public office simply means that a public officer or
employee shall not be suspended or dismissed except for cause, as
provided by law and after due process. It cannot be expanded to
grant a right to public office despite a change in the nature of the
office held. In other words, the CSC might have been legally correct
when it ruled that the petitioner violated Gonzales’ right to security of
tenure when she was removed without sufficient just cause from her
position, but the situation had since then been changed. In fact,
Gonzales was reinstated as ordered, but her services were
subsequently terminated under the law prevailing at the time of the
termination of her service; i.e., she was then already occupying a
position that was primarily confidential and had to be dismissed
because she no longer enjoyed the trust and confidence of the
appointing authority. Thus, Gonzales’ termination for lack of
confidence was lawful. She could no longer be reinstated as
provincial administrator of Camarines Norte or to any other
comparable position. This conclusion, however, is without prejudice
to Gonzales’ entitlement to retirement benefits, leave credits, and
future employment in government service.
WHEREFORE, all premises considered, we hereby GRANT the
petition, and REVERSE and SET ASIDE the Decision dated June 25,
2008 and the Resolution dated December 2, 2008 of the Court of
Appeals in CAG.R. SP No. 97425.
SO ORDERED.
ARTURO D. BRION
Associate Justice
WE CONCUR:
I join J. Del Castillo
MARIA LOURDES P. A. SERENO
Chief Justice
ANTONIO T. CARPIO
Associate Justice
I join the opinion of J.M. Del Castillo
PRESBITERO J. VELASCO, JR.
Associate Justice
TERESITA J. LEONARDO-DE CASTRO
Associate Justice
DIOSDADO M. PERALTA
Associate Justice
LUCAS P. BERSAMIN
Associate Justice
Please see concurring and dissenting opinion.
MARIANO C. DEL CASTILLO
Associate Justice
I join the concurring and dissenting opinion of J. Del Castillo
ROBERTO A. ABAD
Associate Justice
MARTIN S. VILLARAMA, JR.
Associate Justice
JOSE PORTUGAL PEREZ
Associate Justice
JOSE CATRAL MENDOZA
Associate Justice
 BIENVENIDO L. REYES
Associate Justice
ESTELA M. PERLAS-BERNABE
Associate Justice
MARVIC MARIO VICTOR F. LEONEN
Associate Justice
CERTIFICATION
Pursuant to Section 13, Article VIII of the Constitution, I certify that
the conclusions in the above Decision had been reached in
consultation before the case was assigned to the writer of the opinion
of the Court.
MARIA LOURDES P. A. SERENO
Chief Justice

Footnotes
1
Rollo, pp. 18-27; under Rule 45 of the Rule of Court.
2
Id. at 32-44; penned by Associate Justice Marlene
Gonzales-Sison, and concurred in by Associate Justices
Amelita G. Tolentino and Lucenito N. Tagle.
3
Id. at 50-51.
4
Id. at 32-33.
5
Id. at 59-65.
6
Id. at 66-77.
7
Id. at 33.
8
Id. at 78-81.
9
Id. at 83-84.
10
Reyes, Carmencita O., Re: Appointment; Provincial
Administrator.
11
Rollo, pp. 85-88.
12
Id. at 90.
13
Id. at 90-97.
14
Id. at 32-44.
15
G.R. No. 92403, April 22, 1992, 208 SCRA 240.
16
SECTION 46. Discipline: General Provisions. — (a) No
officer or employee in the Civil Service shall be
suspended or dismissed except for cause as provided by
law and after due process.
(b) The following shall be grounds for disciplinary
action:
(1) Dishonesty;
(2) Oppression;
(3) Neglect of duty;
(4) Misconduct;
(5) Disgraceful and immoral conduct;
(6) Being notoriously undesirable;
(7) Discourtesy in the course of official duties;
(8) Inefficiency and incompetence in the
performance of official duties;
(9) Receiving for personal use of a fee, gift or
other valuable thing in the course of official
duties or in connection therewith when such
fee, gift, or other valuable thing is given by
any person in the hope or expectation of
receiving a favor or better treatment than that
accorded other persons, or committing acts
punishable under the anti-graft laws;
(10) Conviction of a crime involving moral
turpitude;
(11) Improper or unauthorized solicitation of
contributions from subordinate employees and
by teachers or school officials from school
children;
(12) Violation of existing Civil Service Law and
rules or reasonable office regulations;
(13) Falsification of official document;
(14) Frequent unauthorized absences or
tardiness in reporting for duty, loafing or
frequent unauthorized absences from duty
during regular office hours;
(15) Habitual drunkenness;
(16) Gambling prohibited by law;
(17) Refusal to perform official duty or render
overtime service;
(18) Disgraceful, immoral or dishonest
conduct prior to entering the service;
(19) Physical or mental incapacity or disability
due to immoral or vicious habits;
(20) Borrowing money by superior officers
from subordinates or lending by subordinates
to superior officers;
 (21) Lending money at usurious rates of
interest;
(22) Willful failure to pay just debts or willful
failure to pay taxes due to the government;
(23) Contracting loans of money or other
property from persons with whom the office of
the employee concerned has business
relations;
(24) Pursuit of private business, vocation or
profession without the permission required by
Civil Service rules and regulations;
(25) Insubordination;
(26) Engaging directly or indirectly in partisan
political activities by one holding a non-
political office;
(27) Conduct prejudicial to the best interest of
the service;
(28) Lobbying for personal interest or gain in
legislative halls or offices without authority;
(29) Promoting the sale of tickets in behalf of
private enterprises that are not intended for
charitable or public welfare purposes and
even in the latter cases if there is no prior
authority;
(30) Nepotism as defined in Section 60 of this
Title.
17
Rollo, pp. 45-49.
18
Supra note 3.
19
Id. at 122-132.
20
Id. at 151-170.
21
Section 7. Classes of Positions in the Career Service.
(a) Classes of positions in the career service
appointment to which requires examinations shall
be grouped into three major level as follows:
1. The first level shall include clerical, trades,
crafts, and custodial service positions which
involve non-professional or subprofessional
work in a non-supervisory or supervisory
capacity requiring less than four years of
collegiate studies;
 2. The second level shall include professional,
technical, and scientific positions which
involve professional, technical, or scientific
work in a non-supervisory or supervisory
capacity requiring at least four years of
college work up to Division Chief level; and
3. The third level shall cover positions in the
Career Executive Service.
(b) Except as herein otherwise provided, entrance
to the first two levels shall be through competitive
examinations, which shall be open to those inside
and outside the service who meet the minimum
qualification requirements. Entrance to a higher
level does not require previous qualification in the
lower level. Entrance to the third level shall be
prescribed by the Career Executive Service Board.
(c) Within the same level, no civil service
examination shall be required for promotion to a
higher position in one or more related occupational
groups. A candidate for promotion should, however,
have previously passed the examination for that
level.
22
G.R. No. 71562, October 28, 1991, 203 SCRA 195.
23
SECTION 7. Career Service.—The Career Service
shall be characterized by (1) entrance based on merit and
fitness to be determined as far as practicable by
competitive examination, or based on highly technical
qualifications; (2) opportunity for advancement to higher
career positions; and (3) security of tenure.
The Career Service shall include:
(1) Open Career positions for appointment to which
prior qualification in an appropriate examination is
required;
(2) Closed Career positions which are scientific, or
highly technical in nature; these include the faculty
and academic staff of state colleges and
universities, and scientific and technical positions in
scientific or research institutions which shall
establish and maintain their own merit systems;
 (3) Positions in the Career Executive Service;
namely, Undersecretary, Assistant Secretary,
Bureau Director, Assistant Bureau Director,
Regional Director, Assistant Regional Director,
Chief of Department Service and other officers of
equivalent rank as may be identified by the Career
Executive Service Board, all of whom are appointed
by the President;
(4) Career officers, other than those in the Career
Executive Service, who are appointed by the
President, such as the Foreign Service Officers in
the Department of Foreign Affairs;
(5) Commissioned officers and enlisted men of the
Armed Forces which shall maintain a separate merit
system;
(6) Personnel of government-owned or controlled
corporations, whether performing governmental or
proprietary functions, who do not fall under the non-
career service; and
(7) Permanent laborers, whether skilled, semi-
skilled, or unskilled.
24
Section 199. Officials of the Provincial Government. -
(1) There shall be in each province a governor, a
vice-governor, members of the sangguniang
panlalawigan, a provincial secretary, a provincial
treasurer, a provincial assessor, a provincial budget
officer, a provincial engineer, a provincial
agriculturist and a provincial planning and
development coordinator.
25
Section 199. x x x
xxxx
(3) The sangguniang panlalawigan may maintain
existing offices not mentioned in paragraph
(1) of [this] section, or create such other offices as
may be necessary to carry out the purposes of the
provincial government, or may consolidate the
functions of any one of such offices with those of
another in the interest of efficiency and economy.
26
Section 463. Officials of the Provincial Government.
 (a) There shall be in each province a governor, a
vice-governor, members of the sangguniang
panlalawigan, a secretary to the sangguniang
panlalawigan, a provincial treasurer, a provincial
assessor, x x x a provincial planning and
development coordinator, a provincial legal officer, a
provincial administrator. [italics and emphasis ours]
27
Section 480. Qualifications, Terms, Powers and Duties.
(a) No person shall be appointed administrator
unless he is a citizen of the Philippines, a resident
of the local government unit concerned, of good
moral character, a holder of a college degree
preferably in public administration, law, or any other
related course from a recognized college or
university, and a first grade civil service eligible or
its equivalent. He must have acquired experience in
management and administration work for at least
five (5) years in the case of the provincial or city
administrator, and three (3) years in the case of the
municipal administrator.
28
Citing the Manual of Position Descriptions, the Court in
Laurel V v. Civil Service Commission, supra note 22, at
204, noted that the provincial administrator position has
the following requirements:
Education: Bachelor's degree preferably in
Law/Public or Business Administration.
Experience: Six years of progressively responsible
experience in planning, directing and administration
of provincial government operations. Experience in
private agencies considered are those that have
been more or less familiar level of administrative
proficiency.
Eligibility: RA 1080 (BAR)/Personnel Management
Officer/Career Service (Professional)/First
Grade/Supervisor.
29
Reyes, Carmencita O., Re: Appointment; Provincial
Administrator.
30
Section 480, RA 7160; Article 119 of the Implementing
Rules and Regulations of RA 7160 provides:
 ARTICLE 119. Appointment of Appointive Local
Officials. — (a) Unless otherwise provided in this
Rule, heads of offices and departments in the LGUs
shall be appointed by the local chief executive
concerned with the concurrence of a majority of all
the members of the sanggunian, subject to civil
service laws, rules and regulations.
(b) The sanggunian concerned shall act on the
appointment within fifteen (15) days from the date of
its submission; otherwise, the same shall be
deemed confirmed.
(c) The term of office of the local administrator, local
legal officer, and local information officer is
coterminous with that of their appointing authority.
31
The creation and abolition of public offices are primarily
legislative functions. It is acknowledged that Congress
may abolish any office it creates without impairing the
officer's right to continue in the position held and that such
power may be exercised for various reasons, such as the
lack of funds or in the interest of economy. However, in
order for the abolition to be valid, it must be made in good
faith, not for political or personal reasons, or in order to
circumvent the constitutional security of tenure of civil
service employees (Canonizado v. Hon. Aguirre, 380 Phil.
280, 286 [2000]). See also The Law on Public Officers
and Election Law, Hector S. de Leon, p. 336.
32
See Salcedo and Ignacio v. Carpio and Carreon, 89
Phil. 254 (1951); and Eraña v. Vergel de Dios, 85 Phil. 17
(1949).
33
The Law on Public Officers and Election Law, Hector S.
de Leon, p. 336.
34
Supra note 32.
35
424 Phil. 707 (2002).
36
G.R. No. 87420, September 17, 1990, 189 SCRA 672,
676.
37
570 Phil. 89 (2008).
38
Id. at 113.
39
Supra note 37.
40
Id. at 113-114; citations omitted.
41
Section 2, Chapter 2, Title I of the Administrative Code.
42
(i) The devolution contemplated in this Code shall
include the transfer to local government units of the
records, equipment, and other assets and personnel of
national agencies and offices corresponding to the
devolved powers, functions, and responsibilities.
Personnel of said national agencies or offices shall
be absorbed by the local government units to which
they belong or in whose areas they are assigned to
the extent that it is administratively viable as
determined by the said oversight committee:
Provided, That the rights accorded to such
personnel pursuant to civil service law, rules and
regulations shall not be impaired: Provided, further,
That regional directors who are career executive
service officers and other officers of similar rank in
the said regional offices who cannot be absorbed by
the local government unit shall be retained by the
national government, without any diminution of rank,
salary or tenure.
43
Canonizado v. Hon. Aguirre, supra note 31.
44
But in the main, the Constitution has blocked out with
deft strokes and in bold lines, allotment of power to the
executive, the legislative and the judicial departments of
the government. The overlapping and interlacing of
functions and duties between the several departments,
however, sometimes makes it hard to say just where the
one leaves off and the other begins. x x x In cases of
conflict, the judicial department is the only constitutional
organ which can be called upon to determine the proper
allocation of powers between the several departments
and among the integral or constituent units thereof.
(Angara v. Electoral Commission, 63 Phil. 139, 157
[1936].)
45
Jocom v. Judge Regalado, 278 Phil. 83, 94 (1991),
citing Tapales v. President and Board of Regents of the
University of the Philippines, 117 Phil. 561 (1963).
46
Ingles v. Mutuc, 135 Phil. 177, 182 (1968)
Notes:
Fernandez vs. Sto. Tomas
EN BANC

G.R. No. 116418 March 7, 1995

FELICIANO, J.:
In this Petition for Certiorari, Prohibition and Mandamus with Prayer
for a Temporary Restraining Order, petitioners Salvador C.
Fernandez and Anicia M. de Lima assail the validity of Resolution No.
94-3710 of the Civil Service Commission ("Commission") and the
authority of the Commission to issue the same.
Petitioner Fernandez was serving as Director of the Office of
Personnel Inspection and Audit ("OPIA") while petitioner de Lima was
serving as Director of the Office of the Personnel Relations ("OPR"),
both at the Central Office of the Civil Service Commission in Quezon
City, Metropolitan Manila. While petitioners were so serving,
Resolution No. 94-3710 signed by public respondents Patricia A..
Sto. Tomas and Ramon Ereneta, Jr., Chairman and Commissioner,
respectively, of the Commission, was issued on 7 June 1994.1
Resolution No. 94-3710 needs to be quoted in full:
RESOLUTION NO. 94-3710
WHEREAS, Section 17 of Book V of Executive
Order 292 provides that ". . . as an independent
constitutional body, the Commission may effect
changes in the organization as the need arises;"
WHEREAS, the Commission finds it imperative to
effect changes in the organization to streamline its
operations and improve delivery of public service;
WHEREAS, the Commission finds it necessary to
immediately effect changes in the organization of
the Central Offices in view of the need to implement
new programs in lieu of those functions which were
transferred to the Regional Offices;
WHEREFORE, foregoing premises considered, the
Commission hereby RESOLVES to effect the
following changes in its organization, specifically in
the Central Offices:
1. The OCSS [Office of Career Systems and
Standards], OPIA [Office of Personnel Inspection
and Audit] and OPR [Office of Personnel Relations]
are merged to form the Research and Development
Office (RDO).
2. The Office for Human Resource Development
(OHRD) is renamed Human Resource Development
Office (HRDO).
3. The following functions and the personnel
assigned to the unit performing said functions are
hereby transferred to HRDO:
a. Administration of the Honor and
Awards program under OCSS;
b. Registration and Accreditation of
Unions under OPR; and
c. Accreditation of Agencies to take final
action on appointments under OPIA.
4. The Office for Central Personnel Records
(OCPR) is renamed Management Information Office
(MIO).
5. The Information technology functions of OPM and
the personnel assigned to the unit are transferred to
MIO.
6. The following functions of OPM and the
personnel assigned to the unit performing said
functions are hereby transferred to the Office of the
Executive Director:
a. Financial Audit and Evaluation;
b. Internal Management and
Improvement;
c. Research and Statistics; and
d. Planning and Programming.
7. The library service and its personnel under
OCPR are transferred to the Central Administrative
Office.
8. The budget allocated for the various functions
shall be transferred to the Offices where the
functions are transferred. Records, fixtures and
equipment that go with the functions shall be moved
to where the functions are transferred.
Annex A contains the manning list for all the offices,
except the OCES.
 The changes in the organization and in operations
shall take place before end of July 1994.
Done in Quezon City, July 07, 1994.
(Signed)
Patricia A. Sto. Tomas
Chairman
(Signed) Did not participate
Ramon P. Ereneta, Jr., Thelma P. Gaminde
Commissioner Commissioner
Attested by:
(Signed)
Carmencita Giselle B. Dayson
Board Secretary V 2
During the general assembly of officers and employees of the
Commission held in the morning of 28 July 1994, Chairman Sto.
Tomas, when apprised of objections of petitioners, expressed the
determination of the Commission to implement Resolution No. 94-
3710 unless restrained by higher authority.
Petitioners then instituted this Petition. In a Resolution dated 23
August 1994, the Court required public respondents to file a
Comment on the Petition. On 21 September 1994, petitioners filed an
Urgent Motion for Issuance of a Temporary Restraining Order,
alleging that petitioners had received Office Orders from the
Commission assigning petitioner Fernandez to Region V at Legaspi
City and petitioner de Lima to Region III in San Fernando, Pampanga
and praying that public respondents be restrained from enforcing
these Office Orders. The Court, in a Resolution dated 27 September
1994, granted this Motion and issued the Temporary Restraining
Order prayed for by petitioners.
The Commission filed its own Comment, dated 12 September 1994,
on the Petition and then moved to lift the Temporary Restraining
Order. The Office of the Solicitor General filed a separate Comment
dated 28 November 1994, defending the validity of Resolution No.
94-3710 and urging dismissal of the Petition. Petitioners filed
separate Replies to these Comments. The Commission in turn filed a
Rejoinder (denominated "Comment [on] the Reply").
The principal issues raised in this Petition are the following:
(1) Whether or not the Civil Service Commission
had legal authority to issue Resolution No. 94-3710
to the extent it merged the OCSS [Office of Career
 Systems and Standards], the OPIA [Office of
Personnel Inspection and Audit] and the OPR
[Office of Personnel Relations], to form the RDO
[Research and Development Office]; and
(2) Whether or not Resolution No. 94-3710 violated
petitioners' constitutional right to security of tenure.
I.
The Revised Administrative Code of 1987 (Executive Order No. 292
dated 25 July 1987) sets out, in Book V, Title I, Subtitle A, Chapter 3,
the internal structure and organization of the Commission in the
following terms:
Sec. 16. Offices in the Commission — The
Commission shall have the following offices:
(1) The Office of the Executive Director — . . .
(2) The Merit System Protection Board — . . .
(3) The Office of Legal Affairs — . . .
(4) The Office of Planning and Management — . . .
(5) The Central Administrative Office — . . .
(6) The Office of Central Personnel Records — . . .
(7) The Office of Position Classification and
Compensation — . . .
(8) The Office of Recruitment, Examination and
Placement — . . .
(9) The Office of Career Systems and Standards
shall provide leadership and assistance in the
formulation and evaluation of personnel systems
and standards relative to performance appraisal,
merit promotion and employee incentive benefits
and awards.
(10) The Office of Human Resource Development
—...
(11) The Office of Personnel Inspection and Audit
shall develop policies, standards, rules and
regulations for the effective conduct of inspection
and audit of personnel and personnel management
programs and the exercise of delegated authority;
provide technical and advisory services to Civil
Service Regional Offices and government agencies
in the implementation of their personnel programs
and evaluation systems.
 (12) The Office of Personnel Relations shall provide
leadership and assistance in the development and
implementation of policies, standards, rules and
regulations governing corporate officials and
employees in the areas of recruitment, examination,
placement, career development, merit and awards
systems, position classification and compensation,
performance appraisal, employee welfare and
benefits, discipline and other aspects of personnel
management on the basis of comparable industry
practices.
(13) The Office of the Corporate Affairs — . . .
(14) The Office of Retirement Administration — . . .
(15) The Regional and Field Offices. — . . .
(Emphases in the original)
Immediately after the foregoing listing of offices of the Commission
and their respective functions, the 1987 Revised Administrative Code
goes on to provide as follows:
Sec. 17. Organizational Structure. — Each office of
the Commission shall be headed by a Director with
at least one (1) Assistant Director, and may have
such divisions as are necessary to carry out their
respective functions. As an independent
constitutional body, the Commission may effect
chances in the organization as the need arises.
xxx xxx xxx 3
(Emphasis supplied)
Examination of the foregoing statutory provisions reveals that the
OCSS, OPIA and OPR, and as well each of the other Offices listed in
Section 16 above, consist of aggregations of Divisions, each of which
Divisions is in turn a grouping of Sections. Each Section, Division and
Office comprises a group of positions within the agency called the
Civil Service Commission, each group being entrusted with a more or
less definable function or functions. These functions are related to
one another, each of them being embraced by a common or general
subject matter. Clearly, each Office is an internal department or
organizational unit within the Commission and that accordingly, the
OCSS, OPIA and OPR, as well as all the other Offices within the
Commission constitute administrative subdivisions of the CSC. Put a
little differently, these offices relate to the internal structure of the
Commission.
What did Resolution No. 94-3710 of the Commission do?
Examination of Resolution No. 94-3710 shows that thereby the
Commission re-arranged some of the administrative units (i.e.,
Offices) within the Commission and, among other things, merged
three (3) of them (OCSS, OPIA and OPR) to form a new grouping
called the "Research and Development Office (RDO)." The same
Resolution renamed some of the Offices of the Commission, e.g., the
Office for Human Resource Development (OHRD) was renamed
Human Resource Development Office (HRDO); the Office for Central
Personnel Records (OCPR) was renamed Management Information
Office (MIO). The Commission also re-allocated certain functions
moving some functions from one Office to another; e.g., the
information technology function of OPM (Office of Planning and
Management) was transferred to the newly named Management
Information Office (MIO). This re-allocation or re-assignment of some
functions carried with it the transfer of the budget earmarked for such
function to the Office where the function was transferred. Moreover,
the personnel, records, fixtures and equipment that were devoted to
the carrying out of such functions were moved to the Offices to where
the functions were transferred.
The objectives sought by the Commission in enacting Resolution No.
94-3710 were described in that Resolution in broad terms as
"effect[ing] changes in the organization to streamline [the
Commission's] operations and improve delivery of service." These
changes in internal organization were rendered necessary by, on the
one hand, the decentralization and devolution of the Commission's
functions effected by the creation of fourteen (14) Regional Offices
and ninety-five (95) Field Offices of the Commission throughout the
country, to the end that the Commission and its staff may be brought
closer physically to the government employees that they are
mandated to serve. In the past, its functions had been centralized in
the Head Office of the Commission in Metropolitan Manila and Civil
Service employees all over the country were compelled to come to
Manila for the carrying out of personnel transactions. Upon the other
hand, the dispersal of the functions of the Commission to the
Regional Offices and the Field Offices attached to various
governmental agencies throughout the country makes possible the
implementation of new programs of the Commission at its Central
Office in Metropolitan Manila.
The Commission's Office Order assigning petitioner de Lima to the
CSC Regional Office No. 3 was precipitated by the incumbent
Regional Director filing an application for retirement, thus generating
a need to find a replacement for him. Petitioner de Lima was being
assigned to that Regional Office while the incumbent Regional
Director was still there to facilitate her take over of the duties and
functions of the incumbent Director. Petitioner de Lima's prior
experience as a labor lawyer was also a factor in her assignment to
Regional Office No. 3 where public sector unions have been very
active. Petitioner Fernandez's assignment to the CSC Regional Office
No. 5 had, upon the other hand, been necessitated by the fact that
the then incumbent Director in Region V was under investigation and
needed to be transferred immediately to the Central Office. Petitioner
Fernandez was deemed the most likely designee for Director of
Regional Office No. 5 considering that the functions previously
assigned to him had been substantially devolved to the Regional
Offices such that his reassignment to a Regional Office would result
in the least disruption of the operations of the Central Office.4
It thus appears to the Court that the Commission was moved by quite
legitimate considerations of administrative efficiency and convenience
in promulgating and implementing its Resolution No. 94-3710 and in
assigning petitioner Salvador C. Fernandez to the Regional Office of
the Commission in Region V in Legaspi City and petitioner Anicia M.
de Lima to the Commission's Regional Office in Region III in San
Fernando, Pampanga. It is also clear to
the Court that the changes introduced and formalized through
Resolution No. 94-3710 — re-naming of existing Offices; re-
arrangement of the groupings of Divisions and Sections composing
particular Offices; re-allocation of existing functions (and related
personnel; budget, etc.) among the re-arranged Offices — are
precisely the kind of internal changes which are referred to in Section
17 (Book V, Title I, Subtitle A, Chapter 3) of the 1987 Revised
Administrative Code), quoted above, as "chances in the organization"
of the Commission.
Petitioners argue that Resolution No. 94-3710 effected the "abolition"
of public offices, something which may be done only by the same
legislative authority which had created those public offices in the first
place.
The Court is unable, in the circumstances of this case, to accept this
argument. The term "public office" is frequently used to refer to the
right, authority and duty, created and conferred by law, by which, for
a given period either fixed by law or enduring at the pleasure of the
creating power, an individual is invested with some portion of the
sovereign functions of government, to be exercised by that individual
for the benefit of the public.5 We consider that Resolution No. 94-
3710 has not abolished any public office as that term is used in the
law of public officers.6 It is essential to note that none of the "changes
in organization" introduced by Resolution No. 94-3710 carried with it
or necessarily involved the termination of the relationship of public
employment between the Commission and any of its officers and
employees. We find it very difficult to suppose that the 1987 Revised
Administrative Code having mentioned fourteen (14) different
"Offices" of the Civil Service Commission, meant to freeze those
Offices and to cast in concrete, as it were, the internal organization of
the commission until it might please Congress to change such
internal organization regardless of the ever changing needs of the
Civil Service as a whole. To the contrary, the legislative authority had
expressly authorized the Commission to carry out "changes in the
organization," as the need [for such changes] arises." 7 Assuming, for
purposes of argument merely, that legislative authority was
necessary to carry out the kinds off changes contemplated in
Resolution No. 94-3710 (and the Court is not saying that such
authority is necessary), such legislative authority was validly
delegated to the Commission by Section 17 earlier quoted. The
legislative standards to be observed and respected in the exercise of
such delegated authority are set out not only in Section 17 itself (i.e.,
"as the need arises"), but also in the Declaration of Policies found in
Book V, Title I, Subtitle A, Section 1 of the 1987 Revised
Administrative Code which required the Civil Service Commission
as the central personnel agency of the Government
[to] establish a
career service, adopt measures to promote —
efficiency — [and] responsiveness . . . in the civil
service . . . and that personnel functions shall be
decentralized, delegating the corresponding
authority to the departments, offices and agencies
where such functions can be effectively performed.
(Emphasis supplied)
 II.
We turn to the second claim of petitioners that their right to security of
tenure was breached by the respondents in promulgating Resolution
No. 94-3710 and ordering petitioners' assignment to the
Commission's Regional Offices in Regions III and V. Section 2(3) of
Article IX(B) of the 1987 Constitution declared that "no officer or
employee of the Civil Service shall be removed or suspended except
for cause provided by law." Petitioners in effect contend that they
were unlawfully removed from their positions in the OPIA and OPR by
the implementation of Resolution No. 94-3710 and that they cannot,
without their consent, be moved out to the Regional Offices of the
Commission.
We note, firstly, that appointments to the staff of the Commission are
not appointments to a specified public office but rather appointments
to particular positions or ranks. Thus, a person may be appointed to
the position of Director III or Director IV; or to the position of Attorney
IV or Attorney V; or to the position of Records Officer I or Records
Officer II; and so forth. In the instant case, petitioners were each
appointed to the position of Director IV, without specification of any
particular office or station. The same is true with respect to the other
persons holding the same position or rank of Director IV of the
Commission.
Section 26(7), Book V, Title I, Subtitle A of the 1987 Revised
Administrative Code recognizes reassignment as a management
prerogative vested in the Commission and, for that matter, in any
department or agency of government embraced in the civil service:
Sec. 26. Personnel Actions. — . . .
xxx xxx xxx
As used in this Title, any action denoting the
movement or progress of personnel in the civil
service shall be known as personnel action. Such
action shall include appointment through
certification, promotion, transfer, re-instatement, re-
employment, detail, reassignment, demotion, and
separation. All personnel actions shall be in
accordance with such rules, standards, and
regulations as may be promulgated by the
Commission.
xxx xxx xxx
 (7) Reassignment. An employee may be re-
assigned from one organizational unit to another in
the same agency, Provided, That such re-
assignment shall not involve a reduction in rank
status and salary. (Emphasis supplied)
It follows that the reassignment of petitioners Fernandez and de Lima
from their previous positions in OPIA and OPR, respectively, to the
Research and Development Office (RDO) in the Central Office of the
Commission in Metropolitan Manila and their subsequent assignment
from the RDO to the Commission's Regional Offices in Regions V
and III had been effected with express statutory authority and did not
constitute removals without lawful cause. It also follows that such re-
assignment did not involve any violation of the constitutional right of
petitioners to security of tenure considering that they retained their
positions of Director IV and would continue to enjoy the same rank,
status and salary at their new assigned stations which they had
enjoyed at the Head Office of the Commission in Metropolitan Manila.
Petitioners had not, in other words, acquired a vested right to serve at
the Commission's Head Office.
Secondly, the above conclusion is compelled not only by the statutory
provisions relevant in the instant case, but also by a long line of
cases decided by this Court in respect of different agencies or offices
of government.
In one of the more recent of these cases, Department of Education
Culture and Sports, etc., et al. v. Court of Appeals, et al.,8 this Court
held that a person who had been appointed as "Secondary School
Principal II" in the Division of City Schools, District II, Quezon City,
National Capital Region, and who had been stationed as High School
Principal in the Carlos Albert High School in Quezon for a number of
years, could lawfully be reassigned or transferred to the Manuel
Roxas High School, also in Quezon City, without demotion in rank or
diminution of salry. This Court held:
The aforequoted provision of Republic Act No. 4670
particularly Section 6 thereof which provides that
except for cause and in the exigencies of the
service no teacher shall be transferred without his
consent from one station to another, finds no
application in the case at bar as this is predicated
upon the theory that the teacher concerned is
appointed — not merely assigned — to a particular
station. Thus:
The rule pursued by plaintiff only goes
so far as
the appointed indicates a specification.
Otherwise, the constitutionally ordained
security of tenure cannot shield her. In
appointments of this nature, this Court
has consistently rejected the officer's
demand to remain — even as public
service dictates that a transfer be made
— in a particular station. Judicial attitude
toward transfers of this nature is
expressed in the following statement in
Ibañez, et al. vs. Commission on
Elections, et al. (G.R. No.
L-26558, April 27, 1967; 19 SCRA 1002
[1967]);
That security of tenure is an
essential and constitutionally
guaranteed feature of our
Civil Service System, is not
open to debate. The mantle
of its protection extends not
only against removals
without cause but also
against unconsented
transfer which, as repeatedly
enunciatEd, are tantamount
to removals which are within
the ambit of the fundamental
guarantee. However, the
availability of that security of
tenure necessarily depends,
in the first instance, upon the
nature of the appointment
(Hojilla vs. Marino, 121 Phil.
280 [1965].) Such that the
rule which proscribes
transfers without consent as
 anathema to the security of
tenure is predicated upon
the theory that the officer
involved is appointed — not
merely assigned — to a
particular station (Miclat v.
Ganaden, et al., 108 Phil.
439 [1960]; Jaro v. Hon.
Valencia, et al., 118 Phil.
728 [1963]). [Brillantes v.
Guevarra, 27 SCRA 138
(1969)]
The appointment of Navarro as principal does not
refer to any particular station or school. As such,
she could be assigned to any station and she is not
entitled to stay permanently at any specific school.
(Bongbong v. Parado, 57 SCRA 623) When she
was assigned to the Carlos Albert High School, it
could not have been with the intention to let her stay
in said school permanently. Otherwise, her
appointment would have so stated. Consequently,
she may be assigned to any station or school in
Quezon City as the exigencies of public service
require even without consent. As this Court ruled in
Brillantes v. Guevarra, 27 SCRA 138,
143 —
Plaintiff's confident stride falters. She
took too loose a view of the applicable
jurisprudence. Her refuge behind the
mantle of security of tenure guaranteed
by the Constitution is not impenetrable.
She proceeds upon the assumption that
she occupies her station in Sinalang
Elementary School by appointment. But
her first appointment as Principal merely
reads thus: "You are hereby appointed a
Principal (Elementary School) in the
Bureau of Public Schools, Department
of Education", without mentioning her
station. She cannot therefore claim
 security of tenure as Principal of
Sinalang Elementary School or any
particular station. She may be assigned
to any station as exigency of public
service requires, even without her
consent. She thus has no right of
choice.9 (Emphasis supplied; citation
omitted)
In the very recent case of Fernando, et al. v. Hon. Sto. Tomas, etc.,
et
a1., 10 the Court addressed appointments of petitioners as
"Mediators-Arbiters in the National Capital Region" in dismissing a
challenge on certiorari to resolutions of the CSC and orders of the
Secretary of Labor. The Court said:
Petitioners were appointed as Mediator Arbiters in
the National Capital Region. They were not,
however, appointed to a specific station or particular
unit of the Department of Labor in the National
Capital Region (DOLE-NCR). Consequently, they
can always be reassigned from one organizational
unit to another of the same agency where, in the
opinion of respondent Secretary, their services may
be used more effectively. As such they can neither
claim a vested right to the station to which they
were assigned nor to security of tenure thereat. As
correctly observed by the Solicitor General,
petitioners' reassignment is not a transfer for they
were not removed from their position as med-
arbiters. They were not given new appointments to
new positions. It indubitably follows, therefore, that
Memorandum Order No. 4 ordering their
reassignment in the interest of the service is legally
in order.11 (Emphases supplied)
In Quisumbing v. Gumban, 12 the Court, dealing with an
appointment in the Bureau of Public Schools of the
Department of Education, Culture and Sports, ruled as
follows:
After a careful scrutiny of the records, it is to be
underscored that the appointment of private
respondent Yap is simply that of a District
 Supervisor of the Bureau of Public Schools which
does not indicate a specific station (Rollo, p. 13). A
such, she could be assigned to any station and she
is no entitled to stay permanently at any specific
station (Bongbong v. Parado, 57 SCRA 623 [1974];
Department of Education, Culture and Sports v.
Court of Appeals [G.R. 81032, March 22, 1990]
citing Brillantes v. Guevarra [27 SCRA 138 [1969]).
13

Again, in Ibañez v. Commission on Elections, 14 the Court had before

it petitioners' appointments as "Election Registrars in the Commission
of Elections," without any intimation to what city, municipality or
municipal district they had been appointed as such. 15 The Court held
that since petitioners "were not appointed to, and consequently not
entitled to any security of tenure or permanence in, any specific
station," "on general principles, they [could] be transferred as the
exigencies of the service required," and that they had no right to
complain against any change in assignment. The Court further held
that assignment to a particular station after issuance of the
appointment was not necessary to complete such appointment:
. . . . We cannot subscribe to the theory that an
assignment to a particular station, in the light of the
terms of the appointments in question, was
necessary to complete the said appointments. The
approval thereof by the Commissioner of Civil
Service gave those appointments the stamp of
finality. With the view that the respondent
Commission then took of its power in the premises
and the demand of the mission it set out to
accomplish with the appointments it extended, said
appointments were definitely meant to be complete
as then issued. The subsequent assignment of the
appointees thereunder that the said respondent
Commission held in reserve to be exercised as the
needs of each locality justified did not in any way
detract from the perfection attained by the
appointments beforehand. And the respective
appointees were entitled only to such security of
tenure as the appointment papers concerned
actually conferred — not in that of any place to
 which they may have been subsequently assigned. .
. . As things stand, in default of any particular
station stated in their respective appointments, no
security of tenure can be asserted by the petitioners
on the basis of the mere assignments which were
given to them. A contrary rule will erase altogether
the demarcation line we have repeatedly drawn
between appointment and assignment as two
distinct concepts in the law of public officers. 16
(Emphases supplied)
The petitioner, in Miclat v. Ganaden, 17 had been appointed as a
"Welfare Office Incharge, Division of Urban, Rural and Community
Administration, Social Welfare Administration." She was assigned as
Social Welfare Incharge of the Mountain Province, by an office order
of the Administrator, Social Welfare Administration. After a little more
than a year; petitioner was assigned elsewhere and respondent
Ganaden transferred to petitioner's first station in Baguio City. The
Court ruled that petitioner was not entitled to remain in her first
station, In Jaro v. Hon. Valencia, et al., 18 petitioner Dr. Jaro had been
appointed "Physician in the Municipal Maternity and Charity Clinics,
Bureau of Hospitals." He was first assigned to the Municipal Maternity
and Charity Clinics in Batulati, Davao, and later to the corresponding
clinic in Saug, Davao and then to Catil, Davao. He was later assigned
to the Municipality of Padada, also of Davao Province. He resisted his
last assignment and brought mandamus against the Secretary of
Health to compel the latter to return him to his station in Catil, Davao
as Municipal Health Officer thereof. The Court, applying Miclat v.
Ganaden dismissed this Petition holding that his appointment not
being to any specific station but as a physician in the Municipal
Maternity and Charity Clinics, Bureau of Hospitals, he could be
transferred or assigned to any station where, in the opinion of the
Secretary of Health, his services may be utilized more effectively. 19
Also noteworthy is Sta. Maria v. Lopez 20 which involved the
appointment of petitioner Sta. Maria as "Dean, College of Education,
University of the Philippines." Dean Sta. Maria was transferred by the
President of the University of the Philippines to the Office of the
President, U.P., without demotion in rank or salary, thereby acceding
to the demands of student activists who were boycotting their classes
in the U.P. College of Education. Dean Sta. Maria assailed his
transfer as an illegal and unconstitutional removal from office. In
upholding Dean Sta. Maria's claim, the Court, speaking through Mr.
Justice Sanchez, laid down the applicable doctrine in the following
terms:
4. Concededly, transfers there are which do not
amount to removal. Some such transfer can be
effected without the need for charges being
preferred, without trial or hering, and even without
the consent of the employee.
The clue to such transfers may be found in the
"nature of the appointment." Where the appointment
does not indicate a specific station, an employee
may be transferred or reassigned provided the
transfer affects no substantial change in title, rank
and salary. Thus one who is appointed "principal in
the Bureau of Public Schools" and is designated to
head a pilot school may be transferred to the post of
principal of another school.
And the rule that outlaws unconsented transfers as
anathema to security of tenure applies only to an
officer who is appointed — not merely assigned —
to a particular station. Such a rule does not
prescribe a transfer carried out under a specific
statute that empowers the head of an agency to
periodically reassign the employees and officers in
order to improve the service of the agency. The use
of approved techniques or methods in personnel
management to harness the abilities of employees
to promote optimum public service cannot-be
objected to. . . .
5. The next point of inquiry is whether or not
Administrative Order 77 would stand the test of
validity vis-a-vis the principles just enunciated.
xxx xxx xxx
To be stressed at this point, however, is that the
appointment of Sta. Maria is that of "Dean, College
of Education, University of the Philippines." He is
not merely a dean "in the university." His
appointment is to a specific position; and, more
importantly, to a specific station. 21 (Citations
omitted; emphases supplied)
For all the foregoing we conclude that the reassignment of petitioners
Fernandez and de Lima from their stations in the OPIA and OPR,
respectively, to the Research Development Office (RDO) and from
the RDO to the Commissions Regional Offices in Regions V and III,
respectively, without their consent, did not constitute a violation of
their constitutional right to security of tenure.
WHEREFORE, the Petition for Certiorari, Prohibition and Mandamus
with Prayer for Writ of Preliminary Injunction or Temporary
Restraining Order is hereby DISMISSED. The Temporary Restraining
Order issued by this Court on 27 September 1994 is hereby LIFTED.
Costs against petitioners.
SO ORDERED.
Narvasa, C.J., Padilla, Bidin, Regalado, Davide, Jr., Romero,
Bellosillo, Melo Quiason, Puno, Vitug, Kapunan, Mendoza and
Francisco, JJ., concur.
Footnotes
1 Commissioner Thelma P. Gaminde did not
participate in the adoption of this Resolution.
2 Rollo, pp. 27-29.
3 Book V, Tittle I, Subtitle A, Chapter 3, 1987
Revised Administrative Code.
4 Please see Motion to Lift Temporary Restraining
Order filed by public respondents, Rollo, pp. 75-77.
5 Appari vs. Court of Appeals, 127 SCRA 231
(1984); Oliveros v. Villaluz, 57 SCRA 163 (1974);
Fernandez vs. Ledesma, 117 Phil. 630 (1963); Alba
vs. Evangelista, 100 Phil. 683 (1957).
6 The dual reference of the term "office" or "public
office" is brought out in the definition of the term
found in Section 2(9), Introductory Provisions of the
Revised Administrative Code of 1987:
Office refers, within the framework of
governmental organization, to any major
functional unit of a department or
bureau including regional offices. It may
also refer to any position held or
occupied by individual persons, whose
functions are defined by law or
regulation. (Emphasis supplied)
7 The Civil Service Commission is not the only
agency of government that has been expressly
vested with this authority to effect changes in
internal organization. Comparable authority has
been lodged in, e.g., the Commission on Elections
and the Office of the President. In respect of
Comelec, Section 13, Chapter 3, Subtitle C, Title I,
Book V, 1987 Revised Administrative Code reads
as follows:
The Commission may make changes in the
composition, distribution, and assignment of field
offices, as well its personnel, whenever the
exigencies of the service and the interest of free,
orderly, honest, peaceful, and credible election so
require: Provided, That such changes shall be
effective and enforceable only for the duration of the
election period concerned and shall not constitute a
demotion, either in rank or salary, nor result in a
change of status; and Provided further that there
shall be no changes in the composition, distribution,
or assignment within thirty days before the election,
except for cause, and after due notice and hearing,
and that in no case shall a regional or assistant
regional director be assigned to a region, provincial
election supervisor to a province, or municipality,
where he and/or his spouse are related to any
candidate within the fourth civil degree or
consanguinity or affinity as the case may be.
(Section 13, Chapter 3, Subtitle C, Title 1, Book V,
Revised Administrative Code of 1987; Emphasis
supplied)
With respect to the Office of the President, Section
31, Chapter 10, Title III, Book III, Revised
Administrative Code of 1987, vested the President
with the following authority:
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 Assistant
Adviser System and the Common Staff Support
System, by abolishing, consolidating, or merging
units thereof, or transferring functions from one unit
to another;
xxx xxx xxx
(Section 31, Chapter 10, Title 3, Book III
Revised Administrative Code of 1987;
Emphasis supplied)
8 183 SCRA 555 (1990).
9 183 SCRA at 561-562.
10 234 SCRA 546 (1994).
11 234 SCRA at 553.
12 193 SCRA 520 (1991).
13 193 SCRA at 523. See also Brillantes v.
Guevarra, 27 SCRA 138 (1969), where petitioner
Brillantes had an appointment as (a) Principal,
Elementary School, in the Bureau of Public Schools
Department of Education and where the Court
reached the same conclusion.
14 19 SCRA 1002 (1967).
15 For other cases involving election registrars and
applying the same rule, see Braganza v.
Commission on Elections, 20 SCRA 1023 (1967);
Real, Jr. v. Commission on Elections, et al., 21
SCRA 331 (1967).
16 19 SCRA at 1012-1013.
17 108 Phil. 439 (1960).
18 118 Phil. 728 (1963).
19 See also Bongbong v. Parade et al., 57 SCRA
623 (1974) which involved petitioner's appointment
as "rural health physician in the Bureau of Rural
Health Units Projects."
20 31 SCRA 637 (1970).
21 31 SCRA at 652-654.
Notes:
Republic v. Bacas
THIRD DIVISION
G.R. No. 182913 November 20, 2013
REPUBLIC V. BACAS, ET. AL
DECISION
MENDOZA, J.:
This petition for review on certiorari under Rule 45 of the Rules of
Court seeks to review, reverse and set aside the November 12, 2007
Decision1 and the May 15, 2008 Resolution2 of the Court of Appeals
(CA) in CA-G.R. CV No. 64142, upholding the decision of the
Regional Trial Court, Branch 17, Cagayan de Oro City (RTC) , which
dismissed the consolidated cases of Civil Case No. 3494, entitled
Republic of the Philippines v. Antonio, et al. and Civil Case No. 5918,
entitled Republic of the Philippines v. Emiliana Chabon , et al. Said
civil cases were filed by the Republic of the Philippines (Republic) for
the cancellation and annulment of Original Certificate of Title (OCT)
No. 0-358 and OCT No. O-669, covering certain parcels of land
occupied and utilized as part of the Camp Evangelista Military
Reservation, Misamis Oriental, presently the home of the 4th Infantry
Division of the Philippine Army.
The Antecedents:
In 1938, Commonwealth President Manuel Luis Quezon (Pres.
Quezon) issued Presidential Proclamation No. 265, which took effect
on March 31, 1938, reserving for the use of the Philippine Army three
(3) parcels of the public domain situated in the barrios of Bulua and
Carmen, then Municipality of Cagayan, Misamis Oriental. The parcels
of land were withdrawn from sale or settlement and reserved for
military purposes, "subject to private rights, if any there be."
Land Registration Case No. N-275
[Antonio, Feliza, Nemesio, Roberto, and Felicidad, all surnamed
Bacas, and the Heirs of Jesus Bacas, Applicants (The Bacases)]
The Bacases filed their Application for Registration3 on November 12,
1964 covering a parcel of land, together with all the improvements
found thereon, located in Patag, Cagayan de Oro City, more
particularly described and bounded as follows:
A parcel of land, Lot No. 4354 of the Cadastral Survey of Cagayan,
L.R.C. Record No. 1612, situated at Barrio Carmen, Municipality of
Cagayan, Province of Misamis Oriental. Bounded on the SE., along
lines 1-2-3-4, by Lot 4357; and alongline 4-5, by Lot 3862; on the S.,
along line 5-6, by Lot 3892; on the W. and NW., along lines 6-7-8, by
Lot 4318; on the NE., along line 8-9, by Lot 4319, along line 9-10, by
Lot 4353 and long line 10-11, by Lot 4359; and on the SE., along line
11-1, by Lot 4356, all of Cagayan Cadastre; containing an area of
THREE HUNDRED FIFTY FOUR THOUSAND THREE HUNDRED
SEVENTY SEVEN (354,377) square meters, more or less, under Tax
Declaration No. 35436 and assessed at ₱3,540.00.4
They alleged ownership in fee simple of the property and indicated in
their application the names and addresses of the adjoining owners,
as well as a statement that the Philippine Army (Fourth Military Area)
recently occupied a portion of the land by their mere tolerance.5
The Director of the Bureau of Lands, thru its Special Counsel, Benito
S. Urcia (Urcia) , registered its written Opposition6 against the
application. Later, Urcia, assisted by the District Land Officer of
Cagayan de Oro City, thru the Third Assistant Provincial Fiscal of
Misamis Oriental, Pedro R. Luspo (Luspo) , filed an Amended
Opposition.7
On April 10, 1968, based on the evidence presented by the Bacases,
the Land Registration Court (LRC) rendered a decision8 holding that
the applicants had conclusively established their ownership in fee
simple over the subject land and that their possession, including that
of their predecessor-in-interest, had been open, adverse, peaceful,
uninterrupted, and in concept of owners for more than forty (40)
years.
No appeal was interposed by the Republic from the decision of the
LRC. Thus, the decision became final and executory, resulting in the
issuance of a decree and the corresponding certificate of title over the
subject property.
Land Registration Case No. N-521 [Emiliana Chabon, Estela Chabon
and Pedrita Chabon, Applicants (The Chabons)]
The Chabons filed their Application for Registration9 on May 8, 1974
covering a parcel of land located in Carmen-District, Cagayan de Oro
City, known as Lot 4357, Cagayan Cadastre, bounded and described
as:
A parcel of land (Lot 4357, Cagayan Cadastre, plan Ap-12445),
situated in the District of Carmen, City of Cagayan de Oro. Bounded
on the NE. by property of Potenciano Abrogan vs. Republic of the
Philippines (Public Land); on the SE. by properties of Geronimo
Wabe and Teofilo Batifona or Batipura; on the SW. by property of
Teofilo Batifona or Batipura; and on the NW. by property of Felipe
Bacao or Bacas vs. Republic of the Philippines (Public Land). Point
"1" is N. 10 deg. 39’W., 379.88 M. from B.L.L.M. 14, Cagayan
Cadastre. Area SIXTY NINE THOUSAND SIX HUNDRED THIRTY
TWO (69,632) SQUARE METERS, more or less.10
They alleged ownership in fee simple over the property and indicated
therein the names and addresses of the adjoining owners, but no
mention was made with respect to the occupation, if any, by the
Philippine Army. The Chabons likewise alleged that, to the best of
their knowledge, no mortgage or encumbrance of any kind affecting
said land with the exception of 18,957 square meters sold to Minda J.
Castillo and 1,000 square meters sold and conveyed to Atty. Arturo
R. Legaspi.11
On February 18, 1976, there being no opposition made, even from
the government, hearing on the application ensued. The LRC then
rendered a decision12 holding that Chabons’ evidence established
their ownership in fee simple over the subject property and that their
possession, including that of their predecessor-in-interest, had been
actual, open, public, peaceful, adverse, continuous, and in concept of
owners for more than thirty (30) years.
The decision then became final and executory. Thus, an order13 for
the issuance of a decree and the corresponding certificate of title was
issued.
The present cases
As a consequence of the LRC decisions in both applications for
registration, the Republic filed a complaint for annulment of titles
against the Bacases and the Chabons before the RTC. More
specifically, on September 7, 1970 or one (1) year and ten (10)
months from the issuance of OCT No. 0-358, a civil case for
annulment, cancellation of original certificate of title, reconveyance of
lot or damages was filed by the Republic against the Bacases, which
was docketed as Civil Case No. 3494. On the other hand, on April 21,
1978 or two (2) years and seven (7) months after issuance of OCT
No. 0-669, the Republic filed a civil case for annulment of title and
reversion against the Chabons, docketed as Civil Case No. 5918.
Civil Case No. 3494 against the Bacases
The Republic claimed in its petition for annulment before the RTC14
that the certificate of title issued in favor of the Bacases was null and
void because they fraudulently omitted to name the military camp as
the actual occupant in their application for registration. Specifically,
the Republic, through the Fourth Military Area, was the actual
occupant of Lot No. 4354 and also the owner and possessor of the
adjoining Lots Nos. 431815 and 4357. Further, the Bacases failed to
likewise state that Lot No. 4354 was part of Camp Evangelista. These
omissions constituted fraud which vitiated the decree and certificate
of title issued.
Also, the Republic averred that the subject land had long been
reserved in 1938 for military purposes at the time it was applied for
and, so, it was no longer disposable and subject to registration.16
Civil Case No. 5918 against the Chabons
In this case, the Republic claimed that it was the absolute owner and
possessor of Lot No. 4357. The said lot, together with Lots 431817
and 4354, formed part of the military reservation known as Camp
Evangelista in Cagayan de Oro City, which was set aside and
reserved under Presidential Proclamation No. 265 issued by
President Quezon on March 31, 1938.18
In its petition for annulment before the RTC,19 the Republic alleged
that OCT No. 0-669 issued in favor of the Chabons and all transfer
certificates of titles, if any, proceeding therefrom, were null and void
for having been vitiated by fraud and/or lack of jurisdiction.20 The
Chabons concealed that the fact that Lot 4357 was part of Camp
Evangelista and that the Republic, through the Armed Forces of the
Philippines, was its actual occupant and possessor.21 Further, Lot
4357 was a military reservation, established as such as early as
March 31, 1938 and, thus, could not be the subject of registration or
private appropriation.22 As a military reservation, it was beyond the
commerce of man and the registration court did not have any
jurisdiction to adjudicate the same as private property.23
Decision of the Regional Trial Court
As the facts and issues in both cases were substantially the same
and identical, and the pieces of evidence adduced were applicable to
both, the cases were consolidated and jointly tried. Thereafter, a joint
decision dismissing the two complaints of the Republic was rendered.
In dismissing the complaints, the RTC explained that the stated fact
of occupancy by Camp Evangelista over certain portions of the
subject lands in the applications for registration by the respondents
was a substantial compliance with the requirements of the law.24 It
would have been absurd to state Camp Evangelista as an adjoining
owner when it was alleged that it was an occupant of the land.25
Thus, the RTC ruled that the respondents did not commit fraud in
filing their applications for registration.
Moreover, the RTC was of the view that the Republic was then given
all the opportunity to be heard as it filed its opposition to the
applications, appeared and participated in the proceedings. It was,
thus, estopped from contesting the proceedings.
The RTC further reasoned out that assuming arguendo that
respondents were guilty of fraud, the Republic lost its right to a relief
for its failure to file a petition for review on the ground of fraud within
one (1) year after the date of entry of the decree of registration.26
Consequently, it would now be barred by prior judgment to contest
the findings of the LRC.27
Finally, the RTC agreed with the respondents that the subject parcels
of land were exempted from the operation and effect of the
Presidential Proclamation No. 265 pursuant to a proviso therein that
the same would not apply to lands with existing "private rights." The
presidential proclamation did not, and should not, apply to the
respondents because they did not apply to acquire the parcels of land
in question from the government, but simply for confirmation and
affirmation of their rights to the properties so that the titles over them
could be issued in their favor.28 What the proclamation prohibited was
the sale or disposal of the parcels of land involved to private persons
as a means of acquiring ownership of the same, through the modes
provided by law for the acquisition of disposable public lands.29
The Republic filed its Notice of Appeal before the RTC on July 5,
1991. On the other hand, the Bacases and the Chabons filed an Ex-
Parte Motion for the Issuance of the Writ of Execution and
Possession on July 16, 1991. An amended motion was filed on July
31, 1991. The RTC then issued the Order,30 dated February 24,
1992, disapproving the Republic’s appeal for failure to perfect it as it
failed to notify the Bacases and granting the writ of execution.
Action of the Court of Appeals and the Court regarding the Republic’s
Appeal
The Republic filed a Notice of Appeal on April 1, 1992 from the
February 24, 1992 of the RTC. The same was denied in the RTC
Order,31 dated April 23, 1992. The Republic moved for its
reconsideration but the RTC was still denied it on July 8, 1992.32
Not satisfied, the Republic filed a petition before the CA, docketed as
CA-G.R. SP No. 28647, entitled Republic vs. Hon. Cesar M.
Ybañez,33 questioning the February 24, 1992 Order of the RTC
denying its appeal in Civil Case No. 3494. The CA sustained the
government and, accordingly, annulled the said RTC order.
The respondents appealed to the Court, which later found no
commission of a reversible error on the part of the CA. Accordingly,
the Court dismissed the appeal as well as the subsequent motions for
reconsideration. An entry of judgment was then issued on February
16, 1995.34
Ruling of the Court of Appeals
The appeal allowed, the CA docketed the case as CA G.R. CV No.
64142.
On November 12, 2007, the CA affirmed the ruling of the RTC. It
explained that once a decree of registration was issued under the
Torrens system and the reglementary period had passed within which
the decree may be questioned, the title was perfected and could not
be collaterally questioned later on.35 Even assuming that an action for
the nullification of the original certificate of title may still be instituted,
the review of a decree of registration under Section 38 of Act No. 496
[Section 32 of Presidential Decree (P.D.) No. 1529] would only
prosper upon proof that the registration was procured through actual
fraud,36 which proceeded from an intentional deception perpetrated
through the misrepresentation or the concealment of a material fact.37
The CA stressed that "[t]he fraud must be actual and extrinsic, not
merely constructive or intrinsic; the evidence thereof must be clear,
convincing and more than merely preponderant, because the
proceedings which are assailed as having been fraudulent are judicial
proceedings which by law, are presumed to have been fair and
regular."38
Citing the rule that "[t]he fraud is extrinsic if it is employed to deprive
parties of their day in court and, thus, prevent them from asserting
their right to the property registered in the name of the applicant,"39
the CA found that there was none. The CA agreed with the RTC that
there was substantial compliance with the requirement of the law.
The allegation of the respondent that Camp Evangelista occupied
portions of their property negated the complaint that they committed
misrepresentation or concealment amounting to fraud.40
As regards the issue of exemption from the proclamation, the CA
deemed that a discussion was unnecessary because the LRC
already resolved it. The CA stressed that the proceeding was one in
rem, thereby binding everyone to the legal effects of the same and
that a decree of registration that had become final should be deemed
conclusive not only on the questions actually contested and
determined, but also upon all matters that might be litigated or
decided in the land registration proceeding.41
Not in conformity, the Republic filed a motion for reconsideration
which was denied on May 15, 2008 for lack of merit.
Hence, this petition.
GROUNDS RELIED UPON
WARRANTING REVIEW OF THE
PETITION
1. THE COURT OF APPEALS COMMITTED SERIOUS
ERROR IN HOLDING THAT THE LAND REGISTRATION
COURT HAD JURISDICTION OVER THE APPLICATION
FOR REGISTRATION FILED BY RESPONDENTS
DESPITE THE LATTER’S FAILURE TO COMPLY WITH
THE MANDATORY REQUIREMENT OF INDICATING
ALL THE ADJOINING OWNERS OF THE PARCELS OF
LAND SUBJECT OF THE APPLICATION.
2. THE COURT OF APPEALS COMMITTED SERIOUS
ERROR IN HOLDING THAT RESPONDENTS HAVE A
REGISTRABLE RIGHT OVER THE SUBJECT PARCELS
OF LAND WHICH ARE WITHIN THE CAMP
EVANGELISTA MILITARY RESERVATION.
3. IN G.R. NO. 157306 ENTITLED "REPUBLIC OF THE
PHILIPPINES VS. ANATALIA ACTUB TIU ESTONILO,
ET AL.," WHICH INVOLVES PRIVATE INDIVIDUALS
CLAIMING RIGHTS OVER PORTIONS OF THE CAMP
EVANGELISTA MILITARY RESERVATION, THIS
HONORABLE COURT HELD THAT THESE
INDIVIDUALS COULD NOT HAVE VALIDLY OCCUPIED
THEIR CLAIMED LOTS BECAUSE THE SAME WERE
CONSIDERED INALIENABLE FROM THE TIME OF
THEIR RESERVATION IN 1938. HERE, THE
CERTIFICATES OF TITLE BEING SUSTAINED BY THE
COURT OF APPEALS WERE ISSUED PURSUANT TO
THE DECISIONS OF THE LAND REGISTRATION
COURT IN APPLICATIONS FOR REGISTRATION FILED
IN 1964 AND 1974. VERILY, THE COURT OF APPEALS,
IN ISSUING THE HEREIN ASSAILED DECISION DATED
NOVEMBER 15, 2007 AND RESOLUTION DATED MAY
15, 2008, HAS DECIDED THAT INSTANT
 CONTROVERSY IN A MANNER THAT IS CONTRARY
TO LAW AND JURISPRUDENCE.42
Position of the Republic
In advocacy of its position, the Republic principally argues that (1) the
CA erred in holding that the LRC acquired jurisdiction over the
applications for registration of the reserved public lands filed by the
respondents; and (2) the respondents do not have a registrable right
over the subject parcels of land which are within the Camp
Evangelista Military Reservation.
With respect to the first argument, the Republic cites Section 15 of
P.D. No. 1529, which requires that applicants for land registration
must disclose the names of the occupants of the land and the names
and addresses of the owners of the adjoining properties. The
respondents did not comply with that requirement which was
mandatory and jurisdictional. Citing Pinza v. Aldovino,43 it asserts that
the LRC had no jurisdiction to take cognizance of the case. Moreover,
such omission constituted fraud or willful misrepresentation. The
respondents cannot invoke the indefeasibility of the titles issued since
a "grant tainted with fraud and secured through misrepresentation is
null and void and of no effect whatsoever."44
On the second argument, the Republic points out that Presidential
Proclamation No. 265 reserved for the use of the Philippine Army
certain parcels of land which included Lot No. 4354 and Lot No. 4357.
Both lots were, however, allowed to be registered. Lot No. 4354 was
registered as OCT No. 0-0358 and Lot No. 4357 as OCT No. O-669.
The Republic asserts that being part of the military reservation, these
lots are inalienable and cannot be the subject of private ownership.
Being so, the respondents do not have registrable rights over them.
Their possession of the land, however long, could not ripen into
ownership, and they have not shown proof that they were entitled to
the land before the proclamation or that the said lots were segregated
and withdrawn as part thereof.
Position of the Respondents
The Bacases
The Bacases anchor their opposition to the postures of the Republic
on three principal arguments:
First, there was no extrinsic fraud committed by the Bacases in their
failure to indicate Camp Evangelista as an adjoining lot owner as their
application for registration substantially complied with the legal
requirements. More importantly, the Republic was not prejudiced and
deprived of its day in court.
Second, the LRC had jurisdiction to adjudicate whether the Bacases
had "private rights" over Lot No. 4354 in accordance with, and
therefore exempt from the coverage of, Presidential Proclamation No.
265, as well as to determine whether such private rights constituted
registrable title under the land registration law.
Third, the issue of the registrability of the title of the Bacases over Lot
No. 4354 is res judicata and cannot now be subject to a re-litigation
or reopening in the annulment proceedings.45
Regarding the first ground, the Bacases stress that there was no
extrinsic fraud because their application substantially complied with
the requirements when they indicated that Camp Evangelista was an
occupant by mere tolerance of Lot No. 4354. Also, the Republic filed
its opposition to the respondents’ application and actively participated
in the land registration proceedings by presenting evidence, through
the Director of Lands, who was represented by the Solicitor General.
The Republic, therefore, was not deprived of its day in court or
prevented from presenting its case. Its insistence that the non-
compliance with the requirements of Section 15 of P.D. No. 1529 is
an argument that is at once both empty and dangerous.46
On jurisdiction, the Bacases assert that even in the case of Republic
v. Estonilo,47 it was recognized in Presidential Proclamation No. 265
that the reservation was subject to private rights. In other words, the
LRC had authority to hear and adjudicate their application for
registration of title over Lot No. 4354 if they would be able to prove
that their private rights under the presidential proclamation
constituted registrable title over the said lot. They claim that there is
completely no basis for the Republic to argue that the LRC had no
jurisdiction to hear and adjudicate their application for registration of
their title to Lot No. 4354 just because the proclamation withdrew the
subject land from sale and settlement and reserved the same for
military purposes. They cited the RTC statement that "the parcels of
land they applied for in those registration proceedings and for which
certificates of title were issued in their favor are precisely exempted
from the operation and effect of said presidential proclamation when
the very same proclamation in itself made a proviso that the same will
not apply to lands with existing ‘private rights’ therein."48
The Bacases claim that the issue of registrability is no longer an issue
as what is only to be resolved is the question on whether there was
extrinsic or collateral fraud during the land registration proceedings.
There would be no end to litigation on the registrability of their title if
questions of facts or law, such as, whether or not Lot No. 4354 was
alienable and disposable land of the public domain prior to its
withdrawal from sale and settlement and reservation for military
purposes under Presidential Proclamation No. 265; whether or not
their predecessors-in-interest had prior possession of the lot long
before the issuance of the proclamation or the establishment of Camp
Evangelista in the late 1930’s; whether or not such possession was
held in the concept of an owner to constitute recognizable "private
rights" under the presidential proclamation; and whether or not such
private rights constitute registrable title to the lot in accordance with
the land registration law, which had all been settled and duly
adjudicated by the LRC in favor of the Bacases, would be re-
examined under this annulment case.49
The issue of registrability of the Bacases’ title had long been settled
by the LRC and is
res judicata between the Republic and the respondents. The findings
of the LRC became final when the Republic did not appeal its
decision within the period to appeal or file a petition to reopen or
review the decree of registration within one year from entry thereof.50
To question the findings of the court regarding the registrability of
then title over the land would be an attempt to reopen issues already
barred by res judicata. As correctly held by the RTC, it is estopped
and barred by prior judgment to contest the findings of the LRC.51
The Chabons
In traversing the position of the Republic, the Chabons insist that the
CA was correct when it stated that there was substantial
compliance52 with the requirements of the P.D. No. 1529 because
they expressly stated in their application that Camp Evangelista was
occupying a portion of it. It is contrary to reason or common sense to
state that Camp Evangelista is an adjoining owner when it is
occupying a portion thereof.
And as to the decision, it was a consequence of a proceeding in rem
and, therefore, the decree of registration is binding and conclusive
against all persons including the Republic who did not appeal the
same. It is now barred forever to question the validity of the title
issued. Besides, res judicata has set in because there is identity of
parties, subject matter and cause of action.53
The Chabons also assailed the proclamation because when it was
issued, they were already the private owners of the subject parcels of
land and entitled to protection under the Constitution. The taking of
their property in the guise of a presidential proclamation is not only
oppressive and arbitrary but downright confiscatory.54
The Issues
The ultimate issues to be resolved are: 1) whether or not the
decisions of the LRC over the subject lands can still be questioned;
and 2) whether or not the applications for registration of the subject
parcels of land should be allowed.
The Court’s Ruling
The Republic can question even final and executory judgment when
there was fraud.
The governing rule in the application for registration of lands at that
time was Section 21 of Act 49655 which provided for the form and
content of an application for registration, and it reads:
Section 21. The application shall be in writing, signed and sworn to by
applicant, or by some person duly authorized in his behalf. x x x It
shall also state the name in full and the address of the applicant, and
also the names and addresses of all adjoining owners and occupants,
if known; and, if not known, it shall state what search has been made
to find them. x x x
The reason behind the law was explained in the case of Fewkes vs.
Vasquez,56 where it was written:
Under Section 21 of the Land Registration Act an application for
registration of land is required to contain, among others, a description
of the land subject of the proceeding, the name, status and address
of the applicant, as well as the names and addresses of all occupants
of the land and of all adjoining owners, if known, or if unknown, of the
steps taken to locate them. When the application is set by the court
for initial hearing, it is then that notice (of the hearing), addressed to
all persons appearing to have an interest in the lot being registered
and the adjoining owners, and indicating the location, boundaries and
technical description of the land being registered, shall be published
in the Official Gazette for two consecutive times. It is this publication
of the notice of hearing that is considered one of the essential bases
of the jurisdiction of the court in land registration cases, for the
proceedings being in rem, it is only when there is constructive seizure
of the land, effected by the publication and notice, that jurisdiction
over the res is vested on the court. Furthermore, it is such notice and
publication of the hearing that would enable all persons concerned,
who may have any rights or interests in the property, to come forward
and show to the court why the application for registration thereof is
not to be granted.
Here, the Chabons did not make any mention of the ownership or
occupancy by the Philippine Army. They also did not indicate any
efforts or searches they had exerted in determining other occupants
of the land. Such omission constituted fraud and deprived the
Republic of its day in court. Not being notified, the Republic was not
able to file its opposition to the application and, naturally, it was not
able to file an appeal either.
The Republic can also question a final and executory judgment when
the LRC had no jurisdiction over the land in question
With respect to the Bacases, although the lower courts might have
been correct in ruling that there was substantial compliance with the
requirements of law when they alleged that Camp Evangelista was an
occupant, the Republic is not precluded and estopped from
questioning the validity of the title.
The success of the annulment of title does not solely depend on the
existence of actual and extrinsic fraud, but also on the fact that a
judgment decreeing registration is null and void. In Collado v. Court of
Appeals and the Republic,57 the Court declared that any title to an
inalienable public land is void ab initio. Any procedural infirmities
attending the filing of the petition for annulment of judgment are
immaterial since the LRC never acquired jurisdiction over the
property. All proceedings of the LRC involving the property are null
and void and, hence, did not create any legal effect. A judgment by a
court without jurisdiction can never attain finality.58 In Collado, the
Court made the following citation:
The Land Registration Court has no jurisdiction over non-registrable
properties, such as public navigable rivers which are parts of the
public domain, and cannot validly adjudge the registration of title in
favor of private applicant. Hence, the judgment of the Court of First
Instance of Pampanga as regards the Lot No. 2 of certificate of Title
No. 15856 in the name of petitioners may be attacked at any time,
either directly or collaterally, by the State which is not bound by any
prescriptive period provided for by the Statute of Limitations.59
Prescription or estoppel cannot lie against the government
In denying the petition of the Republic, the CA reasoned out that 1)
once a decree of registration is issued under the Torrens system and
the reglementary period has passed within which the decree may be
questioned, the title is perfected and cannot be collaterally
questioned later on;60 2) there was no commission of extrinsic fraud
because the Bacases’ allegation of Camp Evangelista’s occupancy of
their property negated the argument that they committed
misrepresentation or concealment amounting to fraud;61 and 3) the
Republic did not appeal the decision and because the proceeding
was one in rem, it was bound to the legal effects of the decision.
Granting that the persons representing the government was
negligent, the doctrine of estoppel cannot be taken against the
Republic. It is a well-settled rule that the Republic or its government is
not estopped by mistake or error on the part of its officials or agents.
In Republic v. Court of Appeals,62 it was written:
In any case, even granting that the said official was negligent, the
doctrine of estoppel cannot operate against the State . "It is a well-
settled rule in our jurisdiction that the Republic or its government is
usually not estopped by mistake or error on the part of its officials or
agents (Manila Lodge No. 761 vs. CA, 73 SCRA 166, 186; Republic
vs. Marcos, 52 SCRA 238, 244; Luciano vs. Estrella, 34 SCRA 769).
Consequently, the State may still seek the cancellation of the title
issued to Perpetuo Alpuerto and his successors-interest pursuant to
Section 101 of the Public Land Act. Such title has not become
indefeasible, for prescription cannot be invoked against the State
(Republic vs. Animas, supra).
The subject lands, being part of a military reservation, are inalienable
and cannot be the subjects of land registration proceedings
The application of the Bacases and the Chabons were filed on
November 12, 1964 and May 8, 1974, respectively. Accordingly, the
law governing the applications was Commonwealth Act (C.A.) No.
141,63 as amended by RA 1942,64 particularly Sec. 48(b) which
provided that:
Those who by themselves or through their predecessors in interest
have been in open, continuous, exclusive and notorious possession
and occupation of agricultural lands of the public domain, under a
bona fide claim of acquisition of ownership, for at least thirty years
immediately preceding the filing of the application for confirmation of
title except when prevented by war or force majeure. These shall be
conclusively presumed to have performed all the conditions essential
to a Government grant and shall be entitled to a certificate of title
under the provisions of this chapter.
As can be gleaned therefrom, the necessary requirements for the
grant of an application for land registration are the following:
1. The applicant must, by himself or through his
predecessors-in-interest, have been in possession and
occupation of the subject land;
2. The possession and occupation must be open,
continuous, exclusive and notorious;
3. The possession and occupation must be under a bona
fide claim of ownership for at least thirty years
immediately preceding the filing of the application; and
4. The subject land must be an agricultural land of the
public domain. As earlier stated, in 1938, President
Quezon issued Presidential Proclamation No. 265, which
took effect on March 31, 1938, reserving for the use of the
Philippine Army parcels of the public domain situated in
the barrios of Bulua and Carmen, then Municipality of
Cagayan, Misamis Oriental. The subject parcels of land
were withdrawn from sale or settlement or reserved for
military purposes, "subject to private rights, if any there
be."65
Such power of the President to segregate lands was provided for in
Section 64(e) of the old Revised Administrative Code and C.A. No.
141 or the Public Land Act. Later, the power of the President was
restated in Section 14, Chapter 4, Book III of the 1987 Administrative
Code. When a property is officially declared a military reservation, it
becomes inalienable and outside the commerce of man.66 It may not
be the subject of a contract or of a compromise agreement.67 A
property continues to be part of the public domain, not available for
private appropriation or ownership, until there is a formal declaration
on the part of the government to withdraw it from being such.68 In the
case of Republic v. Court of Appeals and De Jesus,69 it was even
stated that
Lands covered by reservation are not subject to entry, and no lawful
settlement on them can be acquired.1âwphi1 The claims 0f persons
who have settled on, occupied, and improved a parcel of public land
which is later included in a reservation are considered worthy of
protection and are usually respected, but where the President, as
authorized by law, issues a proclamation reserving certain lands and
warning all persons to depart therefrom, this terminates any rights
previously acquired in such lands by a person who was settled
thereon in order to obtain a preferential right of purchase. And
patents for lands which have been previously granted, reserved from
sale, or appropriate, are void.
Regarding the subject lots, there was a reservation respecting
"private rights." In Republic v. Estonilo,70 where the Court earlier
declared that Lot No. 4318 was part of the Camp Evangelista Military
Reservation and, therefore, not registrable, it noted the proviso in
Presidential Proclamation No. 265 requiring the reservation to be
subject to private rights as meaning that persons claiming rights over
the reserved land were not precluded from proving their claims.
Stated differently, the said proviso did not preclude the LRC from
determining whether or not the respondents indeed had registrable
rights over the property.
As there has been no showing that the subject parcels of land had
been segregated from the military reservation, the respondents had
to prove that the subject properties were alienable and disposable
land of the public domain prior to its withdrawal from sale and
settlement and reservation for military purposes under Presidential
Proclamation No. 265. The question is of primordial importance
because it is determinative if the land can in fact be subject to
acquisitive prescription and, thus, registrable under the Torrens
system. Without first determining the nature and character of the
land, all the other requirements such as the length and nature of
possession and occupation over such land do not come into play.
The required length of possession does not operate when the land is
part of the public domain.
In this case, however, the respondents miserably failed to prove that,
before the proclamation, the subject lands were already private lands.
They merely relied on such "recognition" of possible private rights. In
their application, they alleged that at the time of their application,71
they had been in open, continuous, exclusive, and notorious
possession of the subject parcels of land for at least thirty (30) years
and became its owners by prescription. There was, however, no
allegation or showing that the government had earlier declared it
open for sale or settlement, or that it was already pronounced as
inalienable and disposable.
It is well-settled that land of the public domain is not ipso facto
converted into a patrimonial or private property by the mere
possession and occupation by an individual over a long period of
time. In the case of Diaz v. Republic,72 it was written:
But even assuming that the land in question was alienable land
before it was established as a military reservation, there was
nevertheless still a dearth of evidence with respect to its occupation
by petitioner and her predecessors-in-interest for more than 30 years.
x x x.
x x x.
A mere casual cultivation of portions of the land by the claimant, and
the raising thereon of cattle, do not constitute possession under claim
of ownership. In that sense, possession is not exclusive and
notorious as to give rise to a presumptive grant from the State. While
grazing livestock over land is of course to be considered with other
acts of dominion to show possession, the mere occupancy of land by
grazing livestock upon it, without substantial enclosures, or other
permanent improvements, is not sufficient to support a claim of title
thru acquisitive prescription. The possession of public land, however
long the period may have extended, never confers title thereto upon
the possessor because the statute of limitations with regard to public
land does not operate against the State unless the occupant can
prove possession and occupation of the same under claim of
ownership for the required number of years to constitute a grant from
the State. [Emphases supplied]
In the recent case of Heirs of Mario Malabanan vs. Republic of the
Philippines,73 the Court emphasized that fundamental is the rule that
lands of the public domain, unless declared otherwise by virtue of a
statute or law, are inalienable and can never be acquired by
prescription. No amount of time of possession or occupation can
ripen into ownership over lands of the public domain. All lands of the
public domain presumably belong to the State and are inalienable.
Lands that are not clearly under private ownership are also presumed
to belong to the State and, therefore, may not be alienated or
disposed.74
Another recent case, Diaz v. Republic,75 also held that possession
even for more than 30 years cannot ripen into ownership.76
Possession is of no moment if applicants fail to sufficiently and
satisfactorily show that the subject lands over which an application
was applied for was indeed an alienable and disposable agricultural
land of the public domain. It would not matter even if they declared it
for tax purposes. In Republic v. Heirs of Juan Fabio,77 the rule was
reiterated. Thus:
Well-entrenched is the rule that unless a land is reclassified and
declared alienable and disposable, occupation in the concept of an
owner, no matter how long, cannot ripen into ownership and be
registered as a title. Consequently, respondents could not have
occupied the Lot in the concept of an owner in 1947 and subsequent
years when respondents declared the Lot for taxation purposes, or
even earlier when respondents' predecessors-in-interest possessed
the Lot, because the Lot was considered inalienable from the time of
its declaration as a military reservation in 1904. Therefore,
respondents failed to prove, by clear and convincing evidence, that
the Lot is alienable and disposable.
Public lands not shown to have been classified as alienable and
disposable land remain part of the inalienable public domain. In view
of the lack of sufficient evidence showing that the Lot was already
classified as alienable and disposable, the Lot applied for by
respondents is inalienable land of the public domain, not subject to
registration under Section 14(1) of PD 1529 and Section 48(b) of CA
141, as amended by PD 1073. Hence, there is no need to discuss the
other requisites dealing with respondents' occupation and possession
of the Lot in the concept of an owner.
While it is an acknowledged policy of the State to promote the
distribution of alienable public lands to spur economic growth and in
line with the ideal of social justice, the law imposes stringent
safeguards upon the grant of such resources lest they fall into the
wrong hands to the prejudice of the national patrimony. We must not,
therefore, relax the stringent safeguards relative to the registration of
imperfect titles. [Emphases Supplied]
In Estonilo,78 where the Court ruled that persons claiming the
protection of "private rights" in order to exclude their lands from
military reservations must show by clear and convincing evidence
that the properties in question had been acquired by a legal method
of acquiring public lands, the respondents therein failed to clearly
prove that the lands over which they lay a claim were alienable and
disposable so that the same belonged and continued to belong to the
State and could not be subject to the commerce of man or
registration. Specifically, the Court wrote:
Land that has not been acquired from the government, either by
purchase or by grant, belongs to the State as part of the public
domain. For this reason, imperfect titles to agricultural lands are
subjected to rigorous scrutiny before judicial confirmation is granted.
In the same manner, persons claiming the protection of "private
rights" in order to exclude their lands from military reservations must
show by clear and convincing evidence that the pieces of property in
question have been acquired by a legal method of acquiring public
lands.
In granting respondents judicial confirmation of their imperfect title,
the trial and the appellate courts gave much weight to the tax
declarations presented by the former. However, while the tax
declarations were issued under the names of respondents’
predecessors-in-interest, the earliest one presented was issued only
in 1954.19 The Director, Lands Management Bureau v. CA20 held
thus:
"x x x. Tax receipts and tax declarations are not incontrovertible
evidence of ownership.1âwphi1 They are mere indicia of [a] claim of
ownership. In Director of Lands vs. Santiago:
‘x x x [I]f it is true that the original owner and possessor, Generosa
Santiago, had been in possession since 1925, why were the subject
lands declared for taxation purposes for the first time only in 1968,
and in the names of Garcia and Obdin? For although tax receipts and
declarations of ownership for taxation purposes are not
incontrovertible evidence of ownership, they constitute at least proof
that the holder had a claim of title over the property.’"
In addition, the lower courts credited the alleged prior possession by
Calixto and Rosendo Bacas, from whom respondents’ predecessors
had purportedly bought the property. This alleged prior possession,
though, was totally devoid of any supporting evidence on record.
Respondents’ evidence hardly supported the conclusion that their
predecessors-in-interest had been in possession of the land since
"time immemorial."
Moreover, as correctly observed by the Office of the Solicitor
General, the evidence on record merely established the transfer of
the property from Calixto Bacas to Nazaria Bombeo . The evidence
did not show the nature and the period of the alleged possession by
Calixto and Rosendo Bacas. It is important that applicants for judicial
confirmation of imperfect titles must present specific acts of
ownership to substantiate their claims; they cannot simply offer
general statements that are mere conclusions of law rather than
factual evidence of possession.
It must be stressed that respondents, as applicants, have the burden
of proving that they have an imperfect title to Lot 4318. Even the
absence of opposition from the government does not relieve them of
this burden. Thus, it was erroneous for the trial and the appellate
courts to hold that the failure of the government to dislodge
respondents, judicially or extrajudicially, from the subject land since
1954 already amounted to a title. [Emphases supplied]
The ruling reiterated the long standing rule in the case of Director
Lands Management Bureau v. Court of Appeals,79
x x x. The petitioner is not necessarily entitled to have the land
registered under the Torrens system simply because no one appears
to oppose his title and to oppose the registration of his land. He must
show, even though there is no opposition to the satisfaction of the
court, that he is the absolute owner, in fee simple. Courts are not
justified in registering property under the Torrens system, simply
because there is no opposition offered. Courts may, even in the
absence of any opposition, deny the registration of the land under the
Torrens system, upon the ground that the facts presented did not
show that the petitioner is the owner, in fee simple, of the land which
he is attempting to have registered.
The Court is not unmindful of the principle of immutability of
judgments that nothing is more settled in law than that once a
judgment attains finality it thereby becomes immutable and
unalterable.80 Such principle, however, must yield to the basic rule
that a decision which is null and void for want of jurisdiction of the trial
court is not a decision m contemplation of law and can never become
final and executory.81
Had the LRC given primary importance on the status of the land and
not merely relied on the testimonial evidence of the respondents
without other proof of the alienability of the land, the litigation would
have already been ended and finally settled in accordance with law
and jurisprudence a long time ago.
WHEREFORE, the petition is GRANTED. The November 12, 2007
Decision and the May 15, 2008 Resolution of the Court of Appeals in
CA G.R. CV No. 64142 are hereby REVERSED and SET ASIDE.
Judgment is rendered declaring the proceedings in the Land
Registration Court as NULL and VOID for lack of jurisdiction.
Accordingly, Original Certificate of Title Nos. 0-358 and 0-669 issued
by the Registry of Deeds of Cagayan de Oro City are CANCELLED.
Lot No. 4354 and Lot No. 4357 are ordered reverted to the public
domain.
Notes:
Yap v. Magtapon
FIRST DIVISION
January 23, 2017
G.R. No. 196347
DECISION
CAGUIOA, J.:
The presumption of regularity in the performance of official duties is
an aid to the effective and unhampered administration of government
functions. Without such benefit, every official action could be negated
with minimal effort from litigants, irrespective of merit or sufficiency of
evidence to support such challenge. To this end, our body of
jurisprudence has been consistent in requiring nothing short of clear
and convincing evidence to the contrary to overthrow such
presumption. This case is no different.
The Case
1
In this Appeal by Certiorari (Petition) filed under Rule 45 of the
Rules of Court, petitioner Susan A. Yap (Yap) is assailing the
Decision dated July 27, 20062 (questioned Decision) and Resolution
dated February 23, 20113 issued by the Court of Appeals - Twentieth
(20th) Division (CA) in CA-G.R. SP No. 61944, which denied the
Petition for Annulment of Judgment (Petition for Annulment) dated
November 8, 20004 and the subsequent Motion for Reconsideration
filed by petitioner Yap. The questioned Decision was rendered in
connection with the Decision dated February 12, 19985 (RTC
Decision) of the Regional Trial Court of Bacolod City, Branch 46
(RTC) in the case filed by herein respondent Elizabeth Lagtapon
(Lagtapon), entitled "Elizabeth Lagtapon v. Susan Yap" and docketed
as Civil Case (CC) No. 97-9991.
The Facts
The factual antecedents, as summarized by the CA, are as follows:
On 9 October 1997, [respondent Lagtapon] instituted a civil suit
against [petitioner Yap] for a sum of money with the Regional Trial
Court of Negros Occidental docketed as Civil Case No. 97-9991 and
the same was raffled off to the respondent court.
Summons was issued and as per return of service of summons dated
4 November 1997 prepared by the process server of the respondent
court in the person of Ray R. Precioso, he served on November 4,
1997 the summons on [petitioner Yap] who, however, refused to
acknowledge receipt thereof, thus, compelling him to tender the same
and left (sic) a copy thereof for her.
As no answer was filed, [respondent Lagtapon] filed a motion to
declare [petitioner Yap] in default dated 16 December 1997. The said
motion was granted by the respondent court in an order issued on 12
January 1998 declaring [petitioner Yap] in default and allowing
[respondent Lagtapon] to present her evidence ex-parte on 9
February 1998.
Accordingly, [respondent Lagtapon] adduced evidence in her favor
ex-parte. On 10 February 1998, the respondent court issued an order
admitting the documentary exhibits offered by [respondent Lagtapon].
On 12 February 1998, the respondent court rendered the challenged
Decision in favor of [respondent Lagtapon] and against [petitioner
Yap]. Under date of 6 March 1998, [respondent Lagtapon] filed a
motion for execution which was favorably acted upon by the
respondent court through an order of 21 May 1998.
The Ex-Officio Provincial Sheriff for Negros Occidental issued a
notice of sale on execution dated 25 September 2000 setting the
auction sale of petitioner's property on 17 October 2000. The property
of petitioner that was put up for execution sale consists of a parcel of
land identified as Lot 11, Block 2 of the subdivision plan (LRC) Psd-
91608 covered by Transfer Certificate of Title No. T-110467 situated
at Herminia Street, Villa Valderranm (sic), Barangay Mandalagan,
Bacolod City.
On or about 11 October 2000, Joey de la Paz, to whom [petitioner
Yap] mortgaged the same property, informed her that when he asked
his secretary to secure a copy of the title covering the property from
the Registry of Deeds of Bacolod City, it was found out that annotated
on the title is a notice of embargo relative to Civil Case No. 97-9991,
that a notice of sale on execution had already been issued and that
the said property was scheduled to be sold at auction on 17 October
2000.
Immediately upon receiving such information, [petitioner Yap]
proceeded to the Hall of Justice to verify the truthfulness thereof. It
was only then that she discovered that she was sued by [respondent
Lagtapon] and a judgment by default against her had long been
issued.6
Proceeding from such developments, petitioner Yap filed the subject
Petition for Annulment with the CA, assailing the RTC Decision on the
ground that Summons was not validly served on her, which thus
prevented the RTC from acquiring jurisdiction over her person.7 In
particular, petitioner Yap alleged that at the time Summons was
allegedly served on November 4, 1997 (as evidenced by the Return
of Service), 8 she was not residing in either of the addresses supplied
by respondent Lagtapon in her Complaint,9 namely: (i) Herminia
Street, Villa Valderama, Bacolod City, and (ii) Frankfurt Street,
Jesusa Heights, Bacolod City. 10
With respect to the first address, petitioner Yap claimed that while
she used to reside therein, she had already moved out from the said
address sometime in June 1997 and started leasing out the same on
July 1998.11 Hence, the Summons could not have been served on her
on November 4, 1997, as she had already vacated from the said
address by then.
Meanwhile, regarding the second address, petitioner Yap averred
that she never resided at any such place. 12 Allegedly, at the time of
the service of Summons, she was residing somewhere else,
specifically in "Frankfurt Street, Sunshine Valley Subdivision,
Barangay Estefania, Bacolod City" (as compared to "Frankfurt Street,
Hesusa (sic) Heights, Bacolod City"), which she started leasing from
June 1997 (upon vacating the first address) until September 1999. 13
Simply put, petitioner Yap wholly denied the fact of service of
Summons, as reflected in the Return of Service dated November 4,
199714 accomplished by the RTC's process server, Roy R. Precioso
(Precioso).
Notably, it was stated in the said Return that the Summons, together
with a copy of the Complaint and its annexes, was served personally
on petitioner Yap on November 4, 1997, at about 4:35 p.m., and that
the latter refused to sign the same, which prompted Precioso to
tender and leave a copy of the Summons with petitioner Yap. 15 While
the place of service was not indicated in the Return, it should be
noted that Precioso subsequently executed an Affidavit dated
February 21, 2001, attesting to the fact that he served the Summons
on petitioner Yap at "Frankfurt Street, Hesusa Village, Bacolod City".
16

Petitioner Yap likewise categorically denied receipt of the Motion to

Declare in Default dated December 16, 1997. 17 As indicated in the
records, the said Motion was served on petitioner Yap via JRS
Express mail, evidenced by JRS Express Cash Airbill No. 734216,
and that a certain "Tommy Lim" received it. 18 Petitioner Yap again
claimed that she could not have received the same as she was never
a resident in the address indicated in the said Airbill, which was also
"Frankfurt Street, Hesusa (sic) Heights, Bacolod City".19
On the other hand, respondent Lagtapon denied all the factual
allegations in the Petition for Annulment to the effect that petitioner
Yap was never served with Summons on the date indicated, and
claimed that petitioner Yap was indeed aware of the proceedings, as
borne out by the records of the RTC.20 In her Answer to Petition for
Annulment of Judgment dated March 7, 2001,21 respondent Lagtapon
also raised the following grounds for the dismissal of the said Petition:
(i) assuming arguendo that petitioner Yap did not receive the RTC
Decision, she was constructively notified thereof as well as the
corresponding Writ of Execution dated May 22, 1998 issued by the
RTC when the Provincial Sheriff of Negros Occidental caused the
registration and annotation of the Notice of Embargo or Levy at the
back of petitioner Yap's Transfer Certificate of Title No. T- 110467.22
Hence, respondent Lagtapon argued that petitioner Yap's failure to
file a petition for relief from judgment within sixty (60) days from the
time of the said annotation on May 26, 1998 rendered her Petition for
Annulment dismissible;23 (ii) petitioner Yap failed to file a petition for
certiorari under Rule 65 to question the Order declaring her in default,
the RTC Decision, or the Notice of Embargo or Levy;24 and (iii) there
was no extrinsic fraud extant from the records of the case that would
serve as basis for the Petition for Annulment under Rule 47 of the
Rules of Court. 25
Ruling of the CA
In the questioned Decision, the CA denied the Petition for Annulment
and upheld the validity of the service of Summons on petitioner Yap.
The CA held that petitioner Yap's evidence failed to rebut the
presumption of regularity, i.e., that she failed to satisfactorily establish
the fact that she was residing elsewhere during the time of the
service of Summons, contrary to what was stated in the Return of
Service. 26
In her Motion for Reconsideration dated April 15, 2008,27 petitioner
Yap claimed that the CA "overlooked very important documents
which, if taken into consideration, could materially affect the decision
it first arrived at".28 In its Resolution dated February 23, 2011, the CA
denied petitioner Yap's Motion for Reconsideration for lack of merit.29
Hence, this Petition.
Proceedings before the SC
On June 9, 2011, respondent Lagtapon filed a Motion to Dismiss,30
which was noted without action by the Court in its Resolution dated
October 19, 2011.31 Thus, in her Comment dated January 12, 2012,32
respondent Lagtapon raised the sole issue of whether the remedy of
Annulment of Judgment could still be availed of by petitioner Yap on
the ground that "[ e ]xtrinsic [ f]raud cannot be a valid ground if it was
not availed of in a Motion for [New] Trial or Petition [f]or Relief of
Judgment".33
Accordingly, Yap filed her Reply dated September 1 7, 2012, 34 which
was duly noted by the Court in a Resolution dated October 22,
2012.35
Issue
At issue in this case is whether the CA committed reversible error in
dismissing the Petition for Annulment and ruling that the RTC had
validly acquired jurisdiction over petitioner Yap's person through
service of summons.
The Court's Ruling
The Petition is denied.
In resolving the principal issue of this case, the Court shall separately
discuss the matters raised by the opposing sides according to their
nature.
I. Procedural Matters
Questions of fact are not cognizable
in a Rule 45 petition.
At its core, the instant controversy hinges on whether Summons was
validly served upon petitioner Yap or not. As discussed above, the
parties' claims are diametrically opposing: on the one hand, petitioner
Yap denies any service of Summons on her person, while on the
other, the RTC's process server, Precioso, attests to having served
Summons on petitioner Yap herself. Resolving this issue would thus
necessitate a re-examination and re-weighing of the evidence on
record.
In this regard, it has been repeatedly held by the Court that an appeal
by certiorari under Rule 45 of the Rules is limited in its scope - the
Court may only entertain questions of law36 as jurisdiction over factual
questions has been devolved to the trial courts as a matter of
efficiency and practicality in the administration of justice. As an arbiter
of laws, the Court is not expected to recalibrate the evidence already
considered by inferior courts. 37 More importantly, to the extent that
the evidence on record amply support the factual findings of the trial
court, such findings are deemed conclusive and will not be disturbed
on appeal. 38 On this score alone, the Petition, for raising factual
issues, may already be denied pursuant to the Court's discretionary
appellate jurisdiction.
The remedy of annulment of judgment
under Rule 47 of the Rules is based
either on extrinsic fraud or lack of
jurisdiction.
In her Comment dated January 12, 2012, respondent Lagtapon
insists that the instant Petition should be dismissed on the ground
that the same is based on extrinsic fraud and that petitioner Yap' s
failure to avail of the remedies of new trial or petition for relief from
judgment on such ground bars a resort to the remedy of annulment of
judgment. 39
Respondent Lagtapon's argument is misplaced.
The remedy of annulment of judgment, embodied in Rule 4 7 of the
Rules, is extraordinary in character, and does not so easily and
readily lend itself to abuse by parties aggrieved by final judgments.
The grounds for a Rule 4 7 petition are: (i) extrinsic fraud and (ii) lack
of jurisdiction. 40 Extrinsic fraud cannot be a valid ground if it had
been availed of, or could have been availed of, in a motion for new
trial or petition for relief. 41 On the other hand, lack of jurisdiction
means either lack of jurisdiction over the subject matter or nature of
the action, or lack of jurisdiction over the person of the defendant. 42
In the Petition filed by petitioner Yap, she did not specify her
exclusive reliance on extrinsic fraud as basis of her Petition under
Rule 47. To be precise, petitioner Yap's claim of defective service of
Summons
brings to fore the lack of jurisdiction of the RTC over her person.43
Moreover, the Court agrees with the position of petitioner Yap that
she could no longer avail of the remedies of new trial or petition for
relief from judgment because, as borne out by the records, she
alleged to have become aware of the RTC Decision on October 11,
2000 at the latest, at the time when a writ of execution had already
been issued.44 Clearly, the remedies of appeal or new trial were no
longer available to petitioner Yap. Under the Rules, execution shall
issue upon the expiration of the period to appeal therefrom, if no
appeal has been duly perfected. 45 In the same manner, a motion for
new trial can only be filed within the period for taking an appeal.46
Under the present circumstances, by the time petitioner Yap acquired
knowledge of the proceedings, the period for perfecting an appeal
had already lapsed. Likewise, the remedy of a petition for relief was
no longer available, considering that a writ of execution had already
been issued as early as May 22, 1998, which was already more than
six (6) months after petitioner Yap acquired knowledge of the RTC
Decision.47
II. Substantive Matters
Be that as it may, even if the foregoing rules were to be relaxed in the
interest of substantial justice, the Court finds no reason to arrive at a
conclusion different from that reached by the CA. Upon judicious
review of the records, the Court rules that the CA committed no
reversible error in finding that Summons had been validly served on
petitioner Yap.
The Court explains.
It is axiomatic that a public official enjoys the presumption of
regularity in the discharge of one's official duties and functions. 48
Here, in the absence of clear indicia of partiality or malice, the service
of Summons on petitioner Yap is perforce deemed regular and valid.
Correspondingly, the Return of Service of Precioso as process server
of the RTC constitutes prima facie evidence of the facts set out
therein. 49
The Return of Service states:
Respectfully returned to the Officer-in-Charge of this Court the
herein-attached Summons dated October 15, 1997, DULY SERVED
with the following information, to wit:
That on November 4, 1997 at about 4:35 p.m., the undersigned
served a copy of the complaint, its annexes as well as the
Summons to the defendant Susan A. Yap, personally, but she
refused to sign said
Summons despite the undersigned's explanation to her but
nevertheless, the undersigned tendered and leave (sic) a copy for
her.
For the information of this Honorable Court.
Bacolod City, November 4, 1997.50 (Emphasis supplied)
Hence, as far as the circumstances attendant to the service of
Summons are concerned, the Court has the right to rely on the
factual representation of Precioso that service had indeed been made
on petitioner Yap in person. A contrary rule would reduce the Court to
a mere fact-finding tribunal at the expense of efficiency in the
administration of justice, which, as mentioned earlier, is beyond the
ambit of the Court's jurisdiction in a Rule 45 petition.
To successfully overcome such presumption of regularity, case law
demands that the evidence against it must be clear and convincing;
absent the requisite quantum of proof to the contrary, the
presumption stands deserving of faith and credit. 51 In this case, the
burden of proof to discharge such presumption lay with petitioner
Yap. 52
In her Petition, petitioner Yap makes much of the failure of Precioso
to include the place of service in his Return, contrary to Section 18,
Rule 14 of the Rules of Court, 53 relying on the pronouncements in
Santiago Syjuco, Inc. v. Castro. 54 Notably, however, the
circumstances attendant in that case
are not on all fours with the facts at hand. In Syjuco, which cited Delta
Motor Sales Corporation v. Mangosing, 55 the service of Summons
involved a juridical entity and the crux of the defect there was the
process server's failure to properly identify the person served
inasmuch as Section 11 of Rule 14 of the Rules provides an
exclusive list of persons that may be served Summons when the
defendant is a corporation. Here, the disputed service of Summons
was made personally upon Yap as defendant in CC No. 97-9991 and
was made pursuant to Section 6 of the said Rule.
Moreover, and as previously adverted to, while such detail was
indeed lacking in the said Return, the Court cannot ignore the fact
that Precioso subsequently executed an Affidavit supplying the place
of service, which, to the mind of this Court, constitutes substantial
compliance with the Rules. On this note, the Court agrees with the
following disquisition of the CA:
Petitioner puts in issue the place of her residence at the time of the
alleged personal service of summons on her. However it is clear from
the foregoing provisions of the Rules of Court that where there is
personal service of summons, the place is of no moment. The place
becomes material only where the service is by substituted service for
in such a case the rule requires, in explicit manner, that the summons
be served only either at the defendant's residence or his office/place
of business. Insofar as personal service is concerned, what matters is
that the defendant has been personally put on notice regarding the
institution of an action against him and was furnished with copy (sic)
of the summons and the complaint. Service to be done personally
does not mean that service is possible only at the defendant's actual
residence. 56
This presumption of regularity accorded to Precioso' s Return of
Service of Summons was, however, according to Petitioner Yap,
sufficiently rebutted by the following pieces of evidence:57
(i) Affidavits of her neighbors attesting to the fact that Yap had been
residing in "Frankfurt Street, Sunshine Valley Subdivision, Barangay
Estefania, Bacolod City" beginning June 1997·58
(ii) Utility receipts bearing the name of her alleged landlord, Liberato
Reyes; 59 and
(iii) Mail matters from the RTC (i.e., Orders dated January 12, 1998
and February 10, 1998) in envelopes which had handwritten
notations reading "UNCLAIMED". 60
Directly addressing this argument, the CA, in the questioned
Decision, ruled that the above evidence was insufficient to support
the claim that petitioner Yap was residing elsewhere at the time of the
service of Summons and therefore inadequate to overcome the
presumption of regularity. 61 The Court agrees.
With respect to item (i), petitioner Yap would want the Court to rely on
statements allegedly made by petitioner Yap's neighbors with respect
to a purported lease contract between petitioner Yap and her landlord
in lieu of a statement from the landlord himself. In the first place, the
records are bereft of any lease contract involving the residence in the
Sunshine Valley address. The Court affirms the following
observations of the CA on this matter:
Petitioner contends that when the summons was allegedly served on
her on 4 November 1997, she was not residing at both addresses
given by private respondent but at Frankfurt Street, Sunshine Valley
Subdivision. The said alleged fact was not established by
petitioner to the Court's satisfaction. No contract of lease
covering her lease of the said place was given by petitioner. To
prove the alleged lease, mere affidavits of alleged neighbors of
her in the said area were submitted. The affidavits of petitioner's
witnesses were executed in October 2000 and both affiants made the
impression that they could very well recall that petitioner's lease of
the residential unit started in June of 1997 (and not other month of
that year, for that matter). Nothing in said affidavits would explain why
both affiants were able to retain that particular time in their minds as
the date when petitioner commenced her lease of the aforesaid
dwelling place. No affidavit from the supposed lessor was
submitted. Petitioner put as an excuse her former lessor's
reluctance to get involved in the case. To the mind of the Court,
the refusal of the said lessor to execute an affidavit for the
alleged term, only casts more doubt on petitioner's claim to this
effect.
W[e] also wonder why petitioner agreed to lease the said place from
Mr. Reyes from June, 1997 up to September, 1999 without any
written lease contract.1âwphi1 Petitioner herself is a lessor and she is
that kind whose lease of her property even for a short time is covered
by a written agreement as illustrated by two samples of such contract
she attached to her petition involving her property at Herminia Street,
one is for one year while the other, for a shorter term of six (6)
months.62 (Emphasis supplied)
While it is true that the trial court cannot dictate what particular
evidence the parties must present in order to prove their respective
cases, the fact remains that petitioner Yap is still bound to present
clear and convincing evidence to support her claims. Proceeding
therefrom, the Court remains unconvinced that petitioner Yap had not
and could not have been served Summons as specifically detailed in
the Return of Service.
As to item (ii), petitioner Yap implores the Court to examine Central
Negros Electric Coop., Inc. Provisionary Receipt No. 156556 dated
November 12, 199763 and BACIWA Official Receipt No. 1738502
dated September 8, 199764 that are attached to a Letter dated
February 16, 199865 purportedly written by Liberato Reyes and
addressed to petitioner Yap.
However, examining the above documents, the Court finds them
severely lacking in establishing petitioner Yap's residence in the
Sunshine Valley address. First of all, both receipts do not indicate any
address corresponding to the purported utility expenses incurred by
petitioner Yap during the alleged lease. In the same manner, no
address was mentioned in the Letter dated February 16, 1998 - what
the Letter simply contained were vague statements regarding the
collection of rentals.
Based on the said documents, it would be impossible for the Court to
determine where petitioner Yap had her residence at the time
Summons was served on her person. Granting that there was indeed
a lessor-lessee relationship between petitioner Yap and Liberato
Reyes, there is no showing that the property subject of the lease was
"Frankfurt Street, Sunshine Valley Subdivision, Barangay Estefania,
Bacolod City" and no place else. While it may be true that Liberato
Reyes was a lessor of petitioner Yap, there is no way for this Court to
know which address the latter was occupying specifically, for it may
very well be that Liberato Reyes had other properties at the time the
alleged lease was entered into. Moreover, that the handwritings
thereon were indeed those of Liberato Reyes was not even
satisfactorily established.
Most significant, however, is the glaring fact that the Letter was dated
several months after the service of Summons on November 4, 1997.
As pointedly stressed by the CA, that petitioner Yap was residing in a
place owned by Liberato Reyes on February 16, 1998 is immaterial in
proving her residence at an earlier time, i.e., November 4, 1997.66
Taken together, the above pieces of evidence do not, in any respect,
tend to establish the fact that petitioner Yap was not served
Summons on November 4, 1997 in "Frankfurt Street, Hesusa Village,
Bacolod City".67
Finally, as regards item (iii), the Court finds that the mail matters from
the RTC bearing handwritten notations "UNCLAIMED" are highly
inconclusive to establish her non-residence at the Hesusa Village
address, let alone her residence at the Sunshine Valley address,
considering that they involved orders dated after the service of
Summons on November of 1997. On the other hand, what is present
in the records is evidence of receipt of the Motion to Declare in
Default dated December 16, 1997 via JRS Express by a certain
"Tommy Lim," albeit denied by petitioner Yap.68
All told, the Court hereby upholds the finding of the CA in its
questioned Decision that petitioner Yap' s evidence does not
constitute clear and convincing evidence to overturn the presumption
of regularity attendant to the Return of Service. Following Umandap
v. Sabio, Jr., 69 self-serving assertions made by an aggrieved party
are insufficient to disregard the statements made in the sheriff's
certificate after service of Summons. In light of petitioner Yap's failure
to rebut such presumption, the Court finds that the RTC properly
acquired jurisdiction over petitioner Yap's person, which renders the
RTC Decision valid. Accordingly, the CA correctly dismissed the
subject Petition for Annulment.
WHEREFORE, the foregoing premises considered, the Court
resolves to DENY the instant Petition and AFFIRM in toto the
Decision dated July 27, 2006 and Resolution dated February 23,
2011 of the Court of Appeals - Twentieth (20th) Division in CA-G.R.
SP No. 61944.
SO ORDERED.
ALFREDO BENJAMIN S. CAGUIOA
Associate Justice
WE CONCUR:
MARIA LOURDES P.A. SERENO
Chief Justice
Chairperson
TERESITA J. LEONARDO-
MARIANO C. DEL CASTILLO
DE CASTRO
Associate Justice
Associate Justice
ESTELA M. PERLAS-BERNABE
Associate Justice
CERTIFICATION
Pursuant to the Section 13, Article VIII of the Constitution, I certify
that the conclusions in the above Decision had been reached in
consultation before the case was assigned to the writer of the opinion
of the Court’s Division.
MARIA LOURDES P.A. SERENO
Chief Justice

Footnotes
1
Rollo, pp. 12-31.
2
Id. at 32-41. Penned by Associate Justice Priscilla Baltazar-
Padilla, with Associate Justices Pampio A. Abarintos and
Marlene Gonzales-Sison concurring.
3
Id. at 42-43. Penned by Associate Justice Edgardo L. Delos
Santos, with Associate Justices Agnes Reyes-Carpio and
Eduardo B. Peralta, Jr. concurring.
4
Id. at 44-57.
5
Id. at 68-72. Penned by Presiding Judge Emma C. Labayen.
6
Id. at 33-35.
7
Id. at 54.
8
Id. at 119-120.
9
Id. at 75-80.
10
Id. at 75.
11
Id. at 35.
12
Id.
13
ld. at 55.
14
Id. at 82.
15
Id.
16
Id. at 146. Annex "4" of the Answer to Petition for Annulment
of Judgment dated March 7, 2001.
17
Id. at 48.
18
Id.
19
Id.
20
Id.atl20-121,128.
21
Id.atll8-140.
22
Id. at 129-130.
23
Id. at 129-131.
24
Id. at 131-132.
25
Id. at 132
26
See id. at 37, 40.
27
Id. at 147-153.
28
Id. at 147.
29
Id. at 42-43.
30
Id. at 162-165.
31
Id. at 169.
32
Id. at 171-175.
33
Id. at 171.
34
Id. at 180-A to 183.
35
Id. at 185.
36
RULES OF COURT, Rule 45, Section 1.
37
See Miro v. V da. De Erederos, 721 Phil. 772, 785-787
(2013).
38
See id. at 784.
39
See rollo, pp. 171-172
40
RULES OF COURT, Rule 47, Section 2.
41
Id.
42
Yuk Ling Ong v. Co, G.R. No. 206653, February 25, 2015,
752 SCRA 42, 48.
43
See rollo, p. 27.
44
Id. at 28.
45
RULES OF COURT, Rule 39, Section 1.
46
Id. at Rule 37, Section I.
47
Rollo, p. 28.
48
See Gatmaitan v. Gonzales, 525 Phil. 658, 671 (2006).
49
See Guanzon v. Arradaza, 539 Phil. 367, 375 (2006).
50
Rollo, p. 82.
51
Guanzon v. Arradaza, supra note 49.
52
See Office of the Ombudsman v. Manalastas, G.R. No.
208264, July 27, 2016, p. 8.
53
Rollo, p. 22
54
256 Phil. 621 (1989).
55
162 Phil. 804 (1976).
56
Rollo, p. 37.
57
Id. at 26-27.
58
Id. at 24, 83-84.
59
Id. at 24, 86-87.
60
Id. at 25-26, 106 and 108.
61
See id. at 37.
62
Id. at 37-38.
63
Id. at 86.
64
Id. at 87.
65
Id. at 85.
66
See id. at 38.
67
Id. at 146. Annex "4" of the Answer to Petition for Annulment
of Judgment dated March 7, 2001.
68
Id. at 48.
69
393 Phil. 657, 667 (2000).
Notes:
Ampil v. Ombudsman
SECOND DIVISION
G.R. No. 192685 July 31, 2013
DECISION
PEREZ, J.:
No less than the Constitution maps out the wide grant of investigatory
powers to the Ombudsman.1 Hand in hand with this bestowal, the
Ombudsman is mandated to investigate and prosecute, for and in
behalf of the people, criminal and administrative offenses committed
by government officers and employees, as well as private persons in
conspiracy with the former.2 There can be no equivocation about this
power-and-duty function of the Ombudsman.
Before us are consolidated petitions separately filed by Oscar R.
Ampil (Ampil): (1) one is for certiorari under Rule 65 of the Rules of
Court docketed as G.R. No. 192685; and (2) the other is for review on
certiorari under Rule 45 of the Rules of Court docketed as G.R. No.
199115.
Challenged in the petition for certiorari is the Resolution3 of the
Ombudsman in OMB-C-C-07-0444-J, dismissing the criminal
complaint filed by Ampil against respondents Policarpio L. Espenesin
(Espenesin), Francis Serrano (Serrano), Yvonne S. Yuchengco
(Yuchengco) and Gema O. Cheng (Cheng), and the Order4 denying
Ampil’s motion for reconsideration thereof. Ampil’s complaint charged
respondents with Falsification of Public Documents under Article
171(6) of the Revised Penal Code and violation of Sections 3(a) and
(e) of Republic Act No. 3019, The Anti-Graft and Corrupt Practices
Act, as amended.
The appeal by certiorari, on the other hand, assails the Decision of
the Court of Appeals in CA G.R. SP No. 113171, which affirmed the
Order dated 13 July 2009 of the Ombudsman in OMB-C-A-07-0474-J
on the administrative aspect of the mentioned criminal complaint for
Falsification and violation of Republic Act No. 3019 against the
Registrar of Deeds, respondent Espenesin. Initially, the Ombudsman
issued a Decision dated 30 April 2008, finding Espenesin guilty of
Simple Misconduct and meting on Espenesin the penalty of one (1)
month suspension. On motion for reconsideration of Ampil, the
Ombudsman favored Espenesin’s arguments in his Opposition, and
recalled the one-month suspension the Ombudsman had imposed on
the latter.
These consolidated cases arose from the following facts.
On 9 November 1995, ASB Realty Corporation (ASB) and Malayan
Insurance Company (MICO) entered into a Joint Project Development
Agreement (JPDA) for the construction of a condominium building to
be known as "The Malayan Tower." Under the JPDA, MICO shall
provide the real property located at the heart of the Ortigas Business
District, Pasig City, while ASB would construct, and shoulder the cost
of construction and development of the condominium building.
A year thereafter, on 20 November 1996, MICO and ASB entered into
another contract, with MICO selling to ASB the land it was
contributing under the JPDA. Under the Contract to Sell, ownership of
the land will vest on ASB only upon full payment of the purchase
price.
Sometime in 2000, ASB, as part of the ASB Group of Companies,
filed a Petition for Rehabilitation with Prayer for Suspension of
Actions and Proceedings before the Securities and Exchange
Commission (SEC). As a result, the SEC issued a sixty (60) day
Suspension Order (a) suspending all actions for claims against the
ASB Group of Companies pending or still to be filed with any court,
office, board, body, or tribunal; (b) enjoining the ASB Group of
Companies from disposing of their properties in any manner, except
in the ordinary course of business, and from paying their liabilities
outstanding as of the date of the filing of the petition; and (c)
appointing Atty. Monico V. Jacob as interim receiver of the ASB
Group of Companies.5 Subsequently, the SEC, over the objections of
creditors, approved the Rehabilitation Plan submitted by the ASB
Group of Companies, thus:
PREMISES CONSIDERED, the objections to the rehabilitation plan
raised by the creditors are hereby considered unreasonable.
Accordingly, the Rehabilitation Plan submitted by petitioners is
hereby APPROVED, except those pertaining to Mr. Roxas’ advances,
and the ASB-Malayan Towers. Finally, Interim Receiver Mr. Fortunato
Cruz is appointed as Rehabilitation Receiver.6 (Emphasis supplied).
Because of the obvious financial difficulties, ASB was unable to
perform its obligations to MICO under the JPDA and the Contract to
Sell. Thus, on 30 April 2002, MICO and ASB executed their Third
contract, a Memorandum of Agreement (MOA),7 allowing MICO to
assume the entire responsibility for the development and completion
of The Malayan Tower. At the time of the execution of the MOA, ASB
had already paid MICO ₱427,231,952.32 out of the ₱640,847,928.48
purchase price of the realty.8
The MOA specifies the entitlement of both ASB and MICO to net
saleable areas of The Malayan Tower representing their investments.
It provides, in pertinent part:
Section 4. Distribution and Disposition of Units. (a) As a return of its
capital investment in the Project, each party shall be entitled to such
portion of all the net saleable area of the Building that their respective
contributions to the Project bear to the actual construction cost. As of
the date of the execution hereof, and on the basis of the total costs
incurred to date in relation to the Remaining Construction Costs (as
defined in Section 9(a) hereof), the parties shall respectively be
entitled to the following (which entitlement shall be conditioned on,
and subject to, adjustments as provided in sub-paragraph (b) of
Section 4 in the event that the actual remaining cost of construction
exceeds the Remaining Construction Cost):
(i) MICO – the net saleable area particularly described in
Schedule 2 hereof.
(ii) ASB – the following net saleable area:
(A) the net saleable area which ASB had pre-sold
for an aggregate purchase price of
₱640,085,267.30 as set forth in Schedule 1
(including all paid and unpaid proceeds of said
presales);
(B) the net saleable area particularly described in
Schedule 3 hereof which shall be delivered to ASB
upon completion of the Project; and,
(C) provided that the actual remaining construction
costs do not exceed the Remaining Construction
Cost, the net saleable area particularly described in
Schedule 4 hereof which shall be delivered to ASB
upon completion of the Project and determination of
its actual construction costs. If the actual remaining
construction costs exceed the Remaining
Construction Cost, sub-paragraph (b) of this Section
4 shall apply.
(b) In the event that the actual remaining construction costs
exceed the Remaining Construction Cost as represented and
warranted by ASB to MICO under Section 9(a) hereof, and
MICO pays for such excess, the pro-rata sharing in the net
saleable area of the Building, as provided in sub-paragraph (a)
of this Section 4 shall be adjusted accordingly. In such event,
 MICO shall be entitled to such net saleable area in Schedule 4
that corresponds to the excess of the actual remaining cost
over the Remaining Construction Cost.
(c) To ensure the viability of the Project, the parties agree on a
single pricing system, which MICO shall have the exclusive
right to fix and periodically adjust based on prevailing market
conditions in consultation with, but without need of consent of,
ASB, for each party’s primary sale or other disposition of its
share in the net saleable area of the Building. In accordance
with the immediately preceding provision, MICO hereby adopts
the selling prices set forth in Schedule 5 hereof. Each party or
its officers, employees, agents or representatives shall not sell
or otherwise dispose any share of said party in the net saleable
area of the Building below the prices fixed by MICO in
accordance with this Section 4 (c). MICO shall have the
exclusive right to adopt financing and discounting schemes to
enhance marketing and sales of units in the Project and such
right of MICO shall not be restricted or otherwise limited by the
foregoing single pricing system provision.
(d) Each party shall bear the profits earned and losses incurred
as well as any and all taxes and other expenses in connection
with the allocation or sale of, or other transaction relating to, the
units allotted to each party.9
On 11 March 2005, Condominium Certificates of Title (CCTs) for 38
units10 and the allotted parking spaces were issued in the name of
ASB. On even date but prior to its release, another set of CCTs
covering the same subject units but with MICO as registered owner
thereof, was signed by Espenesin in his capacity as Registrar of
Deeds of Pasig City. Notably, Espenesin had likewise signed the
CCTs which were originally issued in ASB’s name.
On 2 April 2006, counsel for ASB wrote Espenesin calling his
attention to the supposed amendment in the CCTs which he had
originally issued in ASB’s name.11 Counsel for ASB demanded that
Espenesin effect in the second set of CCTs, the registration of the
subject units in The Malayan Tower back to ASB’s name.
On 17 May 2006, Espenesin replied and explained, thus:
The registration of the Malayan-ASB Realty transaction, from its
inception up to the issuance of titles, were all handled by respondent
Atty. Francis Serrano. He therefore appeared and we have
considered him the legitimate representative of both parties (sic). His
representation, we gathered, covers the interest of both MICO and
ASB in as far as the titling of the condominium units are concerned.
Sometime ago Serrano requested that condominium titles over
specified units be issued in consonance with the sharing in the joint
venture MOA. Titles were correspondingly issued as per request,
some in the name of MICO and some in the name of ASB. Before its
release to the parties, Atty. Serrano came back and requested that
some titles issued in the name of ASB be changed to MICO because
allegedly there was error in the issuance.
Believing it was a simple error and on representation of the person
we came to know and considered the representative of both parties,
we erased the name ASB Realty Corporation on those specified titles
and placed instead the name Malayan Insurance Company.
To our mind, the purpose was not to transfer ownership but merely to
rectify an error committed in the issuance of titles. And since they
were well within our capacity to do, the titles not having been
released yet to its owner, we did what we believed was a simple act
of rectifying a simple mistake.12
After learning of the amendment in the CCTs issued in ASB’s name,
Ampil, on 23 January 2007, wrote respondents Yuchengco and
Cheng, President and Chief Financial Officer of MICO, respectively,
introducing himself as an unsecured creditor of ASB Holdings, Inc.,
one of the corporations forming part of the ASB Group of
Companies.13 Ampil averred that MICO had illegally registered in its
name the subject units at The Malayan Tower which were reserved
for ASB under the MOA, and actually, already registered in ASB’s
name with the Register of Deeds of Pasig City. Ampil pointed out that
the "condominium units should have benefited him and other
unsecured creditors of ASB because the latter had categorically
informed them previously that the same would be contributed to the
Asset Pool created under the Rehabilitation Plan of the ASB Group of
Companies." Ultimately, Ampil demanded that Yuchengco and Cheng
rectify the resulting error in the CCTs, and facilitate the registration of
the subject units back to ASB’s name.
Respondents paid no heed to ASB’s and Ampil’s demands.
As previously adverted to, Ampil charged respondents with
Falsification of Public Documents under Article 171(6) of the Revised
Penal Code and violation of Sections 3(a) and (e) of Republic Act No.
3019 before the Office of the Ombudsman, alleging the following:
 1. Respondents, in conspiracy, erased the name of ASB, and
intercalated and substituted the name of MICO under the entry
of registered owner in the questioned CCTs covering the
subject units of The Malayan Tower;
2. The alterations were done without the necessary order from
the proper court, in direct violation of Section 10814 of
Presidential Decree No. 1529;
3. Respondents violated Article 171(6) of the Revised Penal
Code by:
3.1 Altering the CCTs which are public documents;
3.2 Effecting the alterations on genuine documents;
3.3 Changing the meaning of the CCTs with MICO now
appearing as registered owner of the subject units in
Malayan Tower; and
3.4 Effectively, making the documents speak something
false when ASB is the true owner of the subject units, and
not MICO.
4. Ampil, as unsecured creditor of ASB, was unjustly prejudiced
by the felonious acts of respondents;
5. Respondents violated Sections 3(a) and (e) of Republic Act
No. 3019:
5.1 Respondent Espenesin, as Registrar of the Pasig City
Registry of Deeds, committed an offense in connection
with his official duties by allowing himself to be
persuaded, induced or influenced by respondent Serrano
into altering the questioned CCTs; and
5.2 The actions of respondent Espenesin demonstrate
manifest partiality, evident bad faith and/or, at the least,
gross inexcusable negligence.
6. Respondents Yuchengco and Cheng, being responsible
officers of MICO, as principals by inducement and conspirators
of Espenesin and Serrano, are likewise liable for falsification of
the CCTs and violation of Sections 3(a) and (e) of Republic Act
No. 3019.15
As required by the Ombudsman, respondents filed their counter-
affidavits: Espenesin and Serrano filed individually, while Yuchengco
and Cheng filed jointly. Respondents’ respective counter-affidavits
uniformly denied petitioner’s charges and explicated as follows:
Respondent Espenesin countered, among others, (i) that their
intention was only to cause the necessary rectification on certain
errors made on the CCTs in issue; (ii) that since the CCTs were not
yet issued and released to the parties, it is still within his authority, as
part of the registration process, to make the necessary amendments
or corrections thereon; (iii) that no court order would be necessary to
effect such changes, the CCTs still being within the control of the
Register of Deeds and have not yet been released to the respective
owners; (iv) that the amendments were made not for the purpose of
falsifying the CCTs in issue but to make the same reflect and declare
the truth; and (v) that he merely made the corrections in accordance
with the representations of respondent Serrano who he believed to be
guarding and representing both the interests of MICO and ASB.
Respondent Serrano, on the other hand, argued: (i) that the units in
issue are not yet owned by ASB; (ii) that these units were specifically
segregated and reserved for MICO in order to answer for any excess
in the estimated cost that it will expend in the completion of the
Malayan Tower; (iii) that ASB is only entitled to these reserved units
only after the Malayan Tower is completed and that the units are not
utilized to cover for the increase in the cost expended by MICO
pursuant to Section 4(c) of the MOA; (iv) that the Malayan Tower was
still incomplete at the time when the alterations were made on the
CCT, hence, the claim of ownership of ASB over the reserved units is
premature and totally baseless; (v) that prior to the fulfillment of the
resolutory condition, that is, after the completion of the Malayan
Tower and there remains a balance in the Remaining Construction
Cost, the units still rightfully belongs to MICO; and (vi) that the
alteration was made merely for the purpose of correcting an error.
Respondents Cheng and Yuchengco, while adopting the foregoing
arguments of Espenesin and Serrano, further averred that: (i) Ampil
has no legal personality to file this suit, he being merely an unsecured
creditor of ASB whose interest was not definitively shown to have
been damaged by the subject controversy; (ii) that their participation
as respondents and alleged co-conspirators of Serrano and
Espenesin was not clearly shown and defined in the complaint; (iii)
the CCTs issued in the name of ASB have not yet been entered in
the Registration Book at the time when the alterations were effected,
hence, the same could still be made subject of appropriate
amendments; (iv) that the CCTs in issue named in favor of ASB were
mere drafts and cannot legally be considered documents within the
strict definition of the law; (v) that court order authorizing to amend a
title is necessary only if the deed or document sought to be registered
has already been entered in the registration book; and (vi) that MICO
is the duly registered owner of the land on which Malayan Tower
stands and ASB was merely referred to as the developer.16
Thereafter, the Ombudsman issued the assailed Resolution in G.R.
No. 192685 dismissing Ampil’s complaint. For the Ombudsman, the
resolution of whether respondents falsified the CCTs must be
prefaced by a determination of who, between MICO and ASB, is the
rightful owner of the subject units. The Ombudsman held that it had
no authority to interpret the provisions of the MOA and, thus,
refrained from resolving the preliminary question of ownership. Given
the foregoing, the Ombudsman was hard pressed to make a
categorical finding that the CCTs were altered to speak something
false. In short, the Ombudsman did not have probable cause to indict
respondents for falsification of the CCTs because the last element of
the crime, i.e., that the change made the document speak something
false, had not been established.
Significantly, the Ombudsman did not dispose of whether probable
cause exists to indict respondents for violation of Sections 3(a) and
(e) of Republic Act No. 3019.
Ampil filed a Motion for Reconsideration. However, in yet another
setback, the Ombudsman denied Ampil’s motion and affirmed the
dismissal of his complaint.
On the administrative litigation front and as previously narrated, the
Ombudsman found Espenesin liable for Simple Misconduct.
However, on motion for reconsideration of Ampil praying for a finding
of guilt against Espenesin for Grave Misconduct and Dishonesty, the
Ombudsman reconsidered its earlier resolution and recalled the one-
month suspension meted on Espenesin.
Thereafter, Ampil filed a petition for review under Rule 43 of the
Rules of Court before the appellate court. And as already stated, the
appellate court affirmed the Ombudsman’s resolution absolving
Espenesin of not just Grave Misconduct and Dishonesty, but also of
Simple Misconduct.
Hence, this dual recourse by Ampil: first, alleging grave abuse of
discretion in the Ombudsman’s failure to find probable cause to indict
respondents for Falsification of Public Documents under Article
171(6) of the Revised Penal Code, and for their commission of
corrupt practices under
Sections 3(a) and (e) of Republic Act No. 3019; and second, raising
grievous error of the Court of Appeals in affirming the Ombudsman’s
absolution of Espenesin from administrative liability.
To obviate confusion, we shall dispose of the first issue, i.e., whether
probable cause exists to indict respondents for Falsification of Public
Documents under Article 171(6) of the Revised Penal Code and for
their commission of corrupt practices under Sections 3(a) and (e) of
Republic Act No. 3019.
Despite the Ombudsman’s categorical dismissal of his complaint,
Ampil is adamant on the existence of probable cause to bring
respondents to trial for falsification of the CCTs, and for violation of
Sections 3(a) and (e) of Republic Act No. 3019. In fact, he argues
that Espenesin has been held administratively liable by the
Ombudsman for altering the CCTs. At the time of the filing of G.R.
No. 192685, the Ombudsman had not yet reversed its previous
resolution finding Espenesin liable for simple misconduct. He insists
that the admission by respondents Espenesin and Serrano that they
altered the CCTs should foreclose all questions on all respondents’
(Espenesin’s, Serrano’s, Yuchengco’s and Cheng’s) liability for
falsification and their commission of corrupt practices, under the
Revised Penal Code and Republic Act No. 3019, respectively. In all,
Ampil maintains that the Ombudsman’s absolution of respondents is
tainted with grave abuse of discretion.
G.R. No. 192685 is partially impressed with merit. Accordingly, we
find grave abuse of discretion in the Ombudsman’s incomplete
disposition of Ampil’s complaint.
That the Ombudsman is a constitutional officer duty bound to
"investigate on its own, or on complaint by any person, any act or
omission of any public official, employee, office or agency, when such
act or omission appears to be illegal, unjust, improper, or inefficient"17
brooks no objection. The Ombudsman’s conduct of preliminary
investigation is both power and duty. Thus, the Ombudsman and his
Deputies, are constitutionalized as protectors of the people, who
"shall act promptly on complaints filed in any form or manner against
public officials or employees of the government x x x, and shall, x x x
notify the complainants of the action taken and the result thereof."18
The raison d'être for its creation and endowment of broad
investigative authority is to insulate the Office of the Ombudsman
from the long tentacles of officialdom that are able to penetrate
judges’ and fiscals’ offices, and others involved in the prosecution of
erring public officials, and through the execution of official pressure
and influence, quash, delay, or dismiss investigations into
malfeasances and misfeasances committed by public officers.19
Plainly, the Ombudsman has "full discretion," based on the attendant
facts and circumstances, to determine the existence of probable
cause or the lack thereof.20 On this score, we have consistently
hewed to the policy of non-interference with the Ombudsman’s
exercise of its constitutionally mandated powers.21 The
Ombudsman’s finding to proceed or desist in the prosecution of a
criminal case can only be assailed through certiorari proceedings
before this Court on the ground that such determination is tainted with
grave abuse of discretion which contemplates an abuse so grave and
so patent equivalent to lack or excess of jurisdiction.22
However, on several occasions, we have interfered with the
Ombudsman’s discretion in determining probable cause:
(a) To afford protection to the constitutional rights of the
accused;
(b) When necessary for the orderly administration of justice or
to avoid oppression or multiplicity of actions;
(c) When there is a prejudicial question which is sub judice;
(d) When the acts of the officer are without or in excess of
authority;
(e) Where the prosecution is under an invalid law, ordinance or
regulation;
(f) When double jeopardy is clearly apparent;
(g) Where the court has no jurisdiction over the offense;
(h) Where it is a case of persecution rather than prosecution;
(i) Where the charges are manifestly false and motivated by the
lust for vengeance.23 (Emphasis supplied).
The fourth circumstance is present in G.R. No. 192685.
While we agree with the Ombudsman’s disquisition that there is no
probable cause to indict respondents for Falsification of Public
Documents under Article 171(6) of the Revised Penal Code, we are
puzzled why the Ombudsman completely glossed over Ampil’s
charge that respondents committed prohibited acts listed in Sections
3(a) and (e) of Republic Act No. 3019. Nowhere in the Resolution or
in the Order denying reconsideration thereof did the Ombudsman
tackle and resolve the issue of whether respondents violated the
particular provisions of Republic Act No. 3019.
Curiously, the Ombudsman docketed Ampil’s complaint-affidavit as
one "for: Falsification of Public Documents and Violation of Sections
3(a) and (e) of Republic Act No. 3019, as amended."24 The
Ombudsman even prefaced the Resolution, thus: "this has reference
to the complaint filed by Oscar Ampil on 17 September 2007 against
respondents, for Falsification of Public Documents and Violation of
Sections 3, paragraphs (a) and (e) of Republic Act No. 3019,
otherwise known as the Anti-Graft and Corrupt Practices Act, as
amended."25
The Ombudsman’s silence on the component anti-graft charges is
pointed up by the specific allegations in Ampil’s complaint-affidavit
that:
18. The acts of ATTY. ESPENESIN and his co-conspirators are clear
violations of Section 3 paragraph (a) and/or (e) of Republic Act No.
3019 otherwise known as the Anti-Graft and Corrupt Practices Act x x
x;
xxxx
19. On the basis of the evidence x x x and the admissions of the
conspirators themselves, ATTY. ESPENESIN is liable under both
pars. (a) and (e) thereof or either of the two. By maliciously and
feloniously altering the subject CCT’s (sic), contrary to law and to the
prejudice of ASB and Ampil, ATTY. ESPENESIN committed an
offense in connection with his official duties and he admitted having
done so in conspiracy with his co-respondents. x x x ATTY.
ESPENESIN allowed himself to be persuaded, induced or influenced
into committing such violation or offense which is the substance of
par. (a) of RA 3019;
20. In committing such unauthorized and unlawful alterations on the
subject CCT’s (sic), ATTY. ESPENESIN caused undue injury to ASB
and to AMPIL as an unsecured creditor, who is ultimately one of the
beneficiaries of said CCT from the ASSET POOL created by the
SEC, and gave MICO unwarranted benefits, advantage or preference
in the discharge of his official duties as Register of Deeds of Pasig
City. Such acts were admitted by ATTY. ESPENESIN in his letter to
ASB x x x. Such acts, taken together with his admission, indubitably
show ATTY. ESPENESIN’s manifest partiality, evident bad faith
and/or, at the least, his gross inexcusable negligence in doing the
same;
21. ATTY. ESPENESIN is liable under Section 3 pars. (a) and/or (e)
of RA 3019, as well as under Article 171 par. 6 of the RPC. ATTY.
SERRANO, YVONNE S. YUCHENGCO and (sic) GEMMA O.
CHENG are also liable for violation of the said provisions of law in
conspiracy with ATTY. ESPENESIN, the latter as a principal via direct
participation, ATTY. SERRANO, as principal by inducement and
YUCHENGCO and CHENG, also by inducement, who being
responsible officers of MICO ultimately benefited from said unlawful
act.26 and the pith of the Resolution which carefully and meticulously
dissected the presence of the first three definitive elements of the
crime of falsification under Article 171(6) of the Revised Penal Code:
The first three definitive elements of the crime, albeit present, are
defeated by the absence of the fourth.
The respondents readily admitted that an alteration was indeed made
on the CCTs in issue allegedly for the purpose of correcting a mistake
in the name of the registered owner of the condominium units
involved. Said alteration had obviously changed the tenor of the
CCTs considering that ASB, the initially named owner, was changed
into MICO. The first and third elements are undeniably present.
Anent the second element, the respondents argued that the CCTs in
issue were mere drafts and are not legally considered "genuine
documents" within the strict definition of the law. Albeit the contention
is partially true, no proof has been shown to prove that the CCTs
issued in favor of ASB were mere drafts.
The CCTs of ASB are obviously complete. If we are to compare it
with the appearance and contents of the CCTs issued in favor of
MICO, one will notice no definitive difference between the two except
that one set was named in favor of ASB and the other set, in favor of
MICO. Nothing is shown that will clearly prove that the former were
mere drafts and the latter are the final copies. As far as the
appearance of the CCTs of ASB is concerned, all appear to be
complete and genuine. Proof to the contrary must be shown to prove
otherwise.
Delivery of the titles to the named owners is not a pre-requisite before
all these CCTs can be legally categorized as genuine documents.
The fact that the same had already been signed by respondent
Espenesin in his capacity as Registrar of Deeds of Pasig City and the
notations imprinted thereon appeared to have been entered on March
11, 2005 at 11:55 a.m. at the Registry Books of Pasig City, the CCTs
in issue are bound to be treated as genuine documents drafted and
signed in the regular performance of duties of the officer whose
signature appears thereon.27
On the whole, the Ombudsman’s discussion was straightforward and
categorical, and ultimately established that Espenesin, at the urging
of Serrano, altered the CCTs issued in ASB’s name resulting in these
CCTs ostensibly declaring MICO as registered owner of the subject
units at The Malayan Tower.
Despite the admission by Espenesin that he had altered the CCTs
and the Ombudsman’s findings thereon, the Ombudsman abruptly
dismissed Ampil’s complaint-affidavit, resolving only one of the
charges contained therein with nary a link regarding the other charge
of violation of Sections 3(a) and (e) of Republic Act No. 3019. Indeed,
as found by the Ombudsman, the 4th element of the crime of
Falsification of Public Documents is lacking, as the actual ownership
of the subject units at The Malayan Tower has yet to be resolved.
Nonetheless, this circumstance does not detract from, much less
diminish, Ampil’s charge, and the evidence pointing to the possible
commission, of offenses under Sections 3(a) and (e) of the Anti-Graft
and Corrupt Practices Act.
Sections 3(a) and (e) of Republic Act No. 3019 reads:
Section 3. Corrupt practices of public officers. – In addition to acts or
omissions of public officers already penalized by existing law, the
following shall constitute corrupt practices of any public officer and
are hereby declared to be unlawful:
(a) Persuading, inducing or influencing another public officer to
perform an act constituting a violation of rules and regulations duly
promulgated by competent authority or an offense in connection with
the official duties of the latter, or allowing himself to be persuaded,
induced, or influenced to commit such violation or offense.
xxxx
(e) Causing any undue injury to any party, including the Government,
or giving any private party any unwarranted benefits, advantage or
preference in the discharge of his official, administrative or judicial
functions through manifest partiality, evident bad faith or gross
inexcusable negligence. This provision shall apply to officers and
employees of offices or government corporations charged with the
grant of licenses or permits or other concessions.
The elements of Section 3(a) of Republic Act No. 3019 are:
(1) the offender is a public officer;
(2) the offender persuades, induces, or influences another
public officer to perform an act or the offender allows himself to
be persuaded, induced, or influenced to commit an act;
 (3) the act performed by the other public officer or committed by
the offender constitutes a violation of rules and regulations duly
promulgated by competent authority or an offense in connection
with the official duty of the latter. (Emphasis supplied).
Whereas, paragraph (e) of the same section lists the following
elements:
(1) the offender is a public officer;
(2) the act was done in the discharge of the public officer’s
official, administrative or judicial functions;
(3) the act was done through manifest partiality, evident bad
faith, or gross inexcusable negligence; and
(4) the public officer caused any undue injury to any party,
including the Government, or gave any unwarranted benefits,
advantage or preference.28
As Registrar of the Registry of Deeds of Pasig City, Espenesin is
tasked, among others, to review deeds and other documents for
conformance with the legal requirements of registration.29 Section 10
of Presidential Decree No. 1529, Amending and Codifying the Laws
Relative to Registration of Property and for Other Purposes provides:
Section 10. General functions of Registers of Deeds. – The office of
the Register of Deeds constitutes a public repository of records of
instruments affecting registered or unregistered lands and chattel
mortgages in the province or city wherein such office is situated.
It shall be the duty of the Register of Deeds to immediately register
an instrument presented for registration dealing with real or personal
property which complies with all the requisites for registration. He
shall see to it that said instrument bears the proper documentary and
science stamps and that the same are properly cancelled. If the
instrument is not registerable, he shall forthwith deny registration
thereof and inform the presentor of such denial in writing, stating the
ground or reason therefore, and advising him of his right to appeal by
consulta in accordance with Section 117 of the Decree.
Most importantly, a Registrar of the Registry of Deeds is charged with
knowledge of Presidential Decree No. 1529, specifically Sections 5730
and 108.31
In the instant case, the elements of the offenses under Sections 3(a)
and (e) of Republic Act No. 3019, juxtaposed against the functions of
a Registrar of the Registry of Deeds establish a prima facie graft case
against Espenesin and Serrano only. Under Section 3(a) of Republic
Act No. 3019, there is a prima facie case that Espenesin, at the
urging of Serrano, allowed himself to be persuaded to alter the CCTs
originally issued in ASB’s name, against the procedure provided by
law for the issuance of CCTs and registration of property. In addition,
under Section 3(e) of the same law, there is likewise a prima facie
case that Espenesin, through gross inexcusable negligence, by
simply relying on the fact that all throughout the transaction to register
the subject units at The Malayan Tower he liaised with Serrano, gave
MICO an unwarranted benefit, advantage or preference in the
registration of the subject units.
In Sison v. People of the Philippines, we expounded on Section 3(e)
of Republic Act No. 3019:
The third element of Section 3 (e) of RA 3019 may be committed in
three ways, i.e., through manifest partiality, evident bad faith or gross
inexcusable negligence. Proof of any of these three in connection
with the prohibited acts mentioned in Section 3(e) of RA 3019 is
enough to convict.
Explaining what "partiality," "bad faith" and "gross negligence" mean,
we held:
"Partiality" is synonymous with "bias" which "excites a disposition to
see and report matters as they are wished for rather than as they
are." "Bad faith does not simply connote bad judgment or negligence;
it imputes a dishonest purpose or some moral obliquity and conscious
doing of a wrong; a breach of sworn duty through some motive or
intent or ill will; it partakes of the nature of fraud." "Gross negligence
has been so defined as negligence characterized by the want of even
slight care, acting or omitting to act in a situation where there is a
duty to act, not inadvertently but willfully and intentionally with a
conscious indifference to consequences in so far as other persons
may be affected. It is the omission of that care which even inattentive
and thoughtless men never fail to take on their own property."
In the instant case, petitioner was grossly negligent in all the
purchases that were made under his watch. Petitioner’s admission
that the canvass sheets sent out by de Jesus to the suppliers already
contained his signatures because he pre-signed these forms only
proved his utter disregard of the consequences of his actions.
Petitioner also admitted that he knew the provisions of RA 7160 on
personal canvass but he did not follow the law because he was
merely following the practice of his predecessors. This was an
admission of a mindless disregard for the law in a tradition of
illegality. This is totally unacceptable, considering that as municipal
mayor, petitioner ought to implement the law to the letter. As local
chief executive, he should have been the first to follow the law and
see to it that it was followed by his constituency. Sadly, however, he
was the first to break it.
Petitioner should have complied with the requirements laid down by
RA 7160 on personal canvass, no matter how strict they may have
been. Dura lex sed lex. The law is difficult but it is the law. These
requirements are not empty words but were specifically crafted to
ensure transparency in the acquisition of government supplies,
especially since no public bidding is involved in personal canvass.
Truly, the requirement that the canvass and awarding of supplies be
made by a collegial body assures the general public that despotic,
irregular or unlawful transactions do not occur. It also guarantees that
no personal preference is given to any supplier and that the
government is given the best possible price for its procurements.
The fourth element is likewise present. While it is true that the
prosecution was not able to prove any undue injury to the
government as a result of the purchases, it should be noted that there
are two ways by which Section 3(e) of RA 3019 may be violated—the
first, by causing undue injury to any party, including the government,
or the second, by giving any private party any unwarranted benefit,
advantage or preference. Although neither mode constitutes a distinct
offense, an accused may be charged under either mode or both. The
use of the disjunctive "or’ connotes that the two modes need not be
present at the same time. In other words, the presence of one would
suffice for conviction.
Aside from the allegation of undue injury to the government, petitioner
was also charged with having given unwarranted benefit, advantage
or preference to private suppliers. Under the second mode, damage
is not required.
The word "unwarranted" means lacking adequate or official support;
unjustified; unauthorized or without justification or adequate reason.
"Advantage" means a more favorable or improved position or
condition; benefit, profit or gain of any kind; benefit from some course
of action. "Preference" signifies priority or higher evaluation or
desirability; choice or estimation above another.
In order to be found guilty under the second mode, it suffices that the
accused has given unjustified favor or benefit to another, in the
exercise of his official, administrative or judicial functions. Petitioner
did just that. The fact that he repeatedly failed to follow the
requirements of RA 7160 on personal canvass proves that
unwarranted benefit, advantage or preference was given to the
winning suppliers. These suppliers were awarded the procurement
contract without the benefit of a fair system in determining the best
possible price for the government. The private suppliers, which were
all personally chosen by respondent, were able to profit from the
transactions without showing proof that their prices were the most
beneficial to the government. For that, petitioner must now face the
consequences of his acts.32 (Emphasis supplied).
We stress that the Ombudsman did not find probable cause to indict
respondents for falsification simply because the Ombudsman could
not categorically declare that the alteration made the CCT speak
falsely as the ownership of the subject units at The Malayan Tower
had yet to be determined. However, its initial factual findings on the
administrative complaint categorically declared, thus:
x x x Espenesin justified his action by asseverating that since the
CCTs were still under the possession and control of the Register of
Deeds and have not yet been distributed to the owners, amendments
can still be made thereon.
It is worthy to note that the CCTs of ASB, at the time when the
amendment was made, were obviously complete. From its face, we
can infer that all have attained the character of a binding public
document. The signature of Espenesin is already affixed thereon, and
on its face, it was explicitly declared that the titles have already been
entered in the Registration Book of the Register of Deeds of Pasig
City on March 11, 2005 at 11:55 a.m. Allegations to the contrary must
be convincingly and positively proven, otherwise, the presumption
holds that the CCTs issued in the name of ASB were regular and the
contents thereon binding.
Stated in a different light, delivery of the titles to the named owners is
not a pre-requisite before all these CCTs can be legally categorized
as genuine documents. The fact that the same had already been
signed by x x x Espenesin in his capacity as Register of Deeds of
Pasig City and the notations imprinted thereon appeared to have
been entered on March 11, 2005 at 11:55 a.m. at the Registry Books
of Pasig City, the CCTs in issue are bound to be treated as genuine
documents drafted and signed in the regular performance of duties of
the officer whose signature appears thereon. The law has made it so
clear that it is the entry of the title in the Registration Book that
controls the discretion of the Register of Deeds to effect the
necessary amendments and not the actual delivery of the titles to the
named owners.
This being the case, strict compliance with the mandates of Section
108 of P.D. 1529 is strictly called for. The provision is clear that upon
entry of a certificate of title (which definitely includes Condominium
Certificate of Title) attested to by the Register of Deeds, no
amendment shall be effected thereon except upon lawful order of the
court.
In the instant case, it became obvious that after the CCTs of ASB
were entered in the Registration Book on March 11, 2005 at exactly
11:55 a.m., the notations thereon were thereafter amended by
Espenesin when Atty. Serrano purportedly informed him of the
alleged error inscribed therein. The proper remedy that should have
been undertaken by Espenesin soon after he was informed of the
error is to either initiate the appropriate petition himself or to suggest
to the parties to the MOA to file said petition in court for the
amendment of the CCTs. An amendment by way of a shortcut is not
allowed after entry of the title in the Registration Book.
xxxx
If the Regional Trial Court sitting as a land registration court is not
legally authorized to determine the respective rights of the parties to
the MOA when deciding on the petition for amendment and
cancellation of title, all the more with the Registrar of Deeds who is
legally not empowered to make such determination and to cause an
automatic amendment of entries in the Registration Book on the basis
of his unauthorized determination.
Espenesin’s liability is grounded on the untimely and unauthorized
amendment of the CCTs in issue. This is regardless of whether the
amendment had made the CCTs speak of either a lie or the truth.
What defines his error is his inability to comply with the proper
procedure set by law.33 (Emphasis supplied).
We likewise stress that the determination of probable cause does not
require certainty of guilt for a crime. As the term itself implies,
probable cause is concerned merely with probability and not absolute
or even moral certainty;34 it is merely based on opinion and
reasonable belief.35 It is sufficient that based on the preliminary
investigation conducted, it is believed that the act or omission
complained of constitutes the offense charged. Well-settled in
jurisprudence, as in Raro v. Sandiganbayan,36 that:
x x x Probable cause has been defined as the existence of such facts
and circumstances as would excite the belief, in a reasonable mind,
acting on the facts within the knowledge of the prosecutor, that the
person charged was guilty of the crime for which he was
prosecuted.37
Probable cause is a reasonable ground for presuming that a matter is
or may be well-founded on such state of facts in the prosecutor's
mind as would lead a person of ordinary caution and prudence to
believe — or entertain an honest or strong suspicion — that it is so.38
A finding of probable cause needs only to rest on evidence showing
that more likely than not a crime has been committed and there is
enough reason to believe that it was committed by the accused. It
need not be based on clear and convincing evidence of guilt, neither
on evidence establishing absolute certainty of guilt.39
A finding of probable cause does not require an inquiry into whether
there is sufficient evidence to procure a conviction. It is enough that it
is believed that the act or omission complained of constitutes the
offense charged. Precisely, there is a trial for the reception of
evidence of the prosecution in support of the charge.40
A finding of probable cause merely binds over the suspect to stand
trial. It is not a pronouncement of guilt.
The term does not mean "actual and positive cause" nor does it
import absolute certainty. It is merely based on opinion and
reasonable belief. x x x Probable cause does not require an inquiry
into whether there is sufficient evidence to procure a conviction.41
(Emphasis and italics supplied).
In this instance, Espenesin explains and categorically admits that he
altered, nay corrected, 38 certificates of title which we again
reproduce for easy reference:
Sometime ago Serrano requested that condominium titles over
specified units be issued in consonance with the sharing in the joint
venture MOA. Titles were correspondingly issued as per request,
some in the name of MICO and some in the name of ASB. Before its
release to the parties, Atty. Serrano came back and requested that
some titles issued in the name of ASB be changed to MICO because
allegedly there was error in the issuance.
Believing it was a simple error and on representation of the person
we came to know and considered the representative of both parties,
we erased the name ASB Realty Corporation on those specified titles
and placed instead the name Malayan Insurance Company.
To our mind, the purpose was not to transfer ownership but merely to
rectify an error committed in the issuance of titles. And since they
were well within our capacity to do, the titles not having been
released yet to its owner, we did what we believed was a simple act
of rectifying a simple mistake.42
The letter of Espenesin itself underscores the existence of a prima
facie case of gross negligence:
1. Serrano transacted the registration of the units in The
Malayan Tower with the Office of the Register of Deeds, Pasig
City;
2. Serrano had previously presented a joint venture agreement,
the MOA, which Espenesin followed in the initial preparation
and issuance of the titles;
3. Before some CCTs initially issued in ASB’s name were
released, Serrano returned and requested that some titles
issued in the name of ASB be changed to MICO because those
titles were supposedly erroneously registered to ASB; and
4. Just on Serrano’s utterance and declaration which Espenesin
readily believed because he considered Serrano the
representative of both parties, and without any other
documentation to base the amendment on, Espenesin erased
the name of ASB on those specified titles and replaced it with
the name of MICO.
Espenesin, a Registrar of Deeds, relied on Serrano’s word alone that
a supposed error has been committed. Even if ownership of the units
covered by the amended CCTs has not been categorically declared
as ASB’s given the ongoing dispute between the parties, the MOA
which Espenesin had previously referred to, allocates those units to
ASB:
Section 4. Distribution and Disposition of Units. (a) As a return of its
capital investment in the Project, each party shall be entitled to such
portion of all the net saleable area of the Building that their respective
contributions to the Project bear to the actual construction cost. As of
the date of the execution hereof, and on the basis of the total costs
incurred to date in relation to the Remaining Construction Costs (as
defined in Section 9(a) hereof), the parties shall respectively be
entitled to the following (which entitlement shall be conditioned on,
and subject to, adjustments as provided in sub-paragraph (b) of
Section 4 in the event that the actual remaining cost of construction
exceeds the Remaining Construction Cost):
 (i) MICO – the net saleable area particularly described in
Schedule 2 hereof.
(ii) ASB – the following net saleable area:
(A) the net saleable area which ASB had pre-sold for an
aggregate purchase price of ₱640,085,267.30 as set forth in
Schedule 1 (including all paid and unpaid proceeds of said pre-
sales);
(B) the net saleable area particularly described in Schedule 3
hereof which shall be delivered to ASB upon completion of the
Project; and,
(C) provided that the actual remaining construction costs do not
exceed the Remaining Construction Cost, the net saleable area
particularly described in Schedule 4 hereof which shall be
delivered to ASB upon completion of the Project and
determination of its actual construction costs. If the actual
remaining construction costs exceed the Remaining
Construction Cost, sub-paragraph (b) of this Section 4 shall
apply.43
The MOA even recognizes and specifies that:
E. ASB has pre-sold a number of condominium units in the Project to
certain buyers as set forth in Schedule 1 hereof, and in order to
protect the interests of these buyers and preserve the interest in the
Project, the goodwill and business reputation of Malayan, Malayan
has proposed to complete the Project, and ASB has accepted such
proposal, subject to the terms and conditions contained herein,
including the contribution to the Project (a) by Malayan of the Lot and
(b) by ASB of its interest as buyer under the Contract to Sell.
xxxx
Section 3. Recognition of ASB’s Investment. The parties confirm that
as of the date hereof, ASB invested in the Project an amount
equivalent to its entitlement to the net saleable area of the Building
under Section 4 below, including ASB’s interest as buyer under the
Contract to Sell.44
One fact deserves emphasis. The ownership of the condominium
units remains in dispute and, by necessary inference, does not lie as
well in MICO. By his baseless reliance on Serrano’s word and
representation, Espenesin allowed MICO to gain an unwarranted
advantage and benefit in the titling of the 38 units in The Malayan
Tower.
That a prima facie case for gross negligence amounting to violation of
Sections 3(a) and (e) of Republic Act No. 3019 exists is amply
supported by the fact that Espenesin disregarded the well-established
practice necessitating submission of required documents for
registration of property in the Philippines:
Documents Required for Registration of Real Property with the
Register of Deeds:
1. Common Requirements
o Original copy of the Deed or Instrument (Original Copy + 2
duplicate copies)If the original copy cannot be produced, the
duplicate original or certified true copy shall be presented
accompanied with a sworn affidavit executed by the interested
party why the original copy cannot be presented.
o Owner’s copy of the Certificate of Title or Co-owner’s copy if
one has been issued. (Original Copy + 2 duplicate copies)
o Latest Tax Declaration if the property is an unregistered land.
(Original Copy + 2 duplicate copies)
2. Specific Requirements
1. Deed of Sale/Transfer
xxxx
 For Corporation
1. Secretary’s Certificate or Board Resolution to Sell or
Purchase (Original Copy + Duplicate Copy)
2. Articles of Incorporation (for transferee corporation) (1
Certified Copy of the Original)
3. Certificate of the Securities and Exchange Commission
(SEC) that the Articles of Incorporation had been
registered . (1 Certified Copy of the Original)
4. For Condominium or Condominium Certificate of
Transfer, affidavit/certificate of the Condominium
Corporation that the sale/transfer does not violate the 60-
40 rule.(Original Copy + 1 Duplicate Copy)
5. Subsequent transfer of CCT requires Certificate of the
Condominium Management. (Original Copy)
6. Sale by a Corporation Sole, court order is
required.(Original copy of the Court Order)
Additional Requirements
xxxx
11. Condominium Projects
 Master Deed (Original Copy + 1 Duplicate Copy)
  Declaration of Restriction (Original Copy + 1 Duplicate
Copy)
 Diagrammatic Floor Plan (Original Copy + 1 Duplicate
Copy)
If the Condominium Certificate of Title is issued for the first time
in the name of the registered owner, require the following:
o Certificate of Registration with the Housing and Land
Use Regulatory Board (Original Copy + 1 Duplicate Copy)
o Development Permit (Original Copy + 1 Duplicate Copy)
o License to Sell (Original Copy + 1 Duplicate Copy)45
Espenesin, by his own explanation, relied on nothing more than
Serrano, who he "came to know and considered as representative of
both parties," and Serrano’s interpretation of the MOA that Serrano
had brought with him.
On the whole, there is sufficient ground to engender a well-founded
belief that respondents Espenesin and Serrano committed prohibited
acts listed in Sections 3(a) and (e) of Republic Act No. 3019.
As regards Yuchengco and Cheng, apart from Ampil’s general
assertions that the two, as officers of MICO, benefited from the
alteration of the CCTs, there is a dearth of evidence pointing to their
collective responsibility therefor. While the fact of alteration was
admitted by respondents and was affirmed in the Ombudsman’s
finding of fact, there is nothing that directly links Yuchengco and
Cheng to the act.
We are aware that the calibration of evidence to assess whether a
prima facie graft case exists against respondents is a question of fact.
We have consistently held that the Supreme Court is not a trier of
facts, more so in the consideration of the extraordinary writ of
certiorari where neither questions of fact nor law are entertained, but
only questions of lack or excess of jurisdiction or grave abuse of
discretion.46 In this case, however, certiorari will lie, given that the
Ombudsman made no finding at all on respondents possible liability
for violation of Sections 3(a) and (e) of Republic Act No. 3019.
We hasten to reiterate that we are only dealing herein with the
preliminary investigation aspect of this case. We do not adjudge
respondents’ guilt or the lack thereof. The assertions of Espenesin
and Serrano on the former’s good faith in effecting the alteration and
the pending arbitration case before the Construction Industry
Arbitration Commission involving the correct division of MICO’s and
ASB’s net saleable areas in The Malayan Tower are matters of
defense which they should raise during trial of the criminal case.
As regards the administrative liability of Espenesin, the basic principle
in the law of public officers is the three-fold liability rule, which states
that the wrongful acts or omissions of a public officer, Espenesin in
these cases, may give rise to civil, criminal and administrative liability.
An action for each can proceed independently of the others.47
On this point, we find that the appellate court erred when it affirmed
the Ombudsman’s last ruling that Espenesin is not administratively
liable.
Misconduct is a transgression of some established and definite rule of
action, more particularly, unlawful behavior or gross negligence by a
public officer.48
In Grave Misconduct, as distinguished from Simple Misconduct, the
elements of corruption, clear intent to violate the law or flagrant
disregard of established rules, must be manifest49 and established by
substantial evidence. Grave Misconduct necessarily includes the
lesser offense of Simple Misconduct.50 Thus, a person charged with
Grave Misconduct may be held liable for Simple Misconduct if the
misconduct does not involve any of the elements to qualify the
misconduct as grave.51
In (G.R. No. 199115), the elements particular to Grave Misconduct
are, by the Ombudsman’s own finding, present. Corruption, as an
element of Grave Misconduct, consists in the act of an official or
fiduciary person who unlawfully and wrongfully uses his station or
character to procure some benefit for himself or for another person,
contrary to duty and the rights of others.52 This has already been
demonstrated as discussed above. And, there is here a manifest
disregard for established rules on land registration by a Register of
Deeds himself. As he himself admits in his letter, Espenesin erased
the name of ASB on the specified CCTs because he believed that
Serrano’s request for the re-issuance thereof in MICO’s name
constituted simple error.
Section 108 of Presidential Decree No. 1529 provides:
Section 108. Amendment and alteration of certificates. No erasure,
alteration, or amendment shall be made upon the registration book
after the entry of a certificate of title or of a memorandum thereon and
the attestation of the same be Register of Deeds, except by order of
the proper Court of First Instance. A registered owner of other person
having an interest in registered property, or, in proper cases, the
Register of Deeds with the approval of the Commissioner of Land
Registration, may apply by petition to the court upon the ground that
the registered interests of any description, whether vested,
contingent, expectant or inchoate appearing on the certificate, have
terminated and ceased; or that new interest not appearing upon the
certificate have arisen or been created; or that an omission or error
was made in entering a certificate or any memorandum thereon, or,
on any duplicate certificate; or that the same or any person on the
certificate has been changed; or that the registered owner has
married, or, if registered as married, that the marriage has been
terminated and no right or interests of heirs or creditors will thereby
be affected; or that a corporation which owned registered land and
has been dissolved has not convened the same within three years
after its dissolution; or upon any other reasonable ground; and the
court may hear and determine the petition after notice to all parties in
interest, and may order the entry or cancellation of a new certificate,
the entry or cancellation of a memorandum upon a certificate, or
grant any other relief upon such terms and conditions, requiring
security or bond if necessary, as it may consider proper; Provided,
however, That this section shall not be construed to give the court
authority to reopen the judgment or decree of registration, and that
nothing shall be done or ordered by the court which shall impair the
title or other interest of a purchaser holding a certificate for value and
in good faith, or his heirs and assigns, without his or their written
consent. Where the owner's duplicate certificate is not presented, a
similar petition may be filed as provided in the preceding section.
The foregoing clearly speaks of a court order prior to any erasure,
alteration or amendment upon a certificate of title.
In reversing its prior ruling, the Ombudsman cavalierly dismisses the
fact of Espenesin already signing the CCTs issued in ASB’s name as
"only a part of the issuance process because the final step in the
titling procedure is indeed the release of the certificate of title."53 The
Ombudsman further ruled:
Considering that prior to the release of titles, Espenesin merely
rectified what was represented to this office as error in the
preparation of typing or the certificates, hence, it is wrong to subject
him to an administrative sanction. This is bolstered by the fact that, at
the time of release (and perhaps even up to the present time), there
was no final determination yet from the land registration court as to
who has a better right to the property in question.54 (Emphasis
supplied).
This statement of the Ombudsman is virtually a declaration of
Espenesin’s misconduct. It highlights Espenesin’s awareness and
knowledge that ASB and MICO are two different and separate
entities, albeit having entered into a joint venture for the building of
"The Malayan Tower."
As Registrar of Deeds, Espenesin was duty bound to inquire and
ascertain the reason for Serrano’s new instruction on those specific
set of CCTs and not just heed Serrano’s bidding. He heads the Office
of Register of Deeds which is constituted by law as "a public
repository of records of instruments affecting registered or
unregistered lands x x x in the province or city wherein such office is
situated." He should not have so easily taken Serrano’s word that the
amendment Serrano sought was to correct simple and innocuous
error. Espenesin could have then easily asked, as he is obliged to, for
a contract or an authenticated writing to ascertain which units and
parking slots were really allotted for ASB and MICO. His actions
would then be based on what is documented and not merely by a
lame claim of bona fides mistake.
Moreover, Espenesin was previously presented a MOA, and
consulted this same MOA, in the initial preparation and issuance of
the 38 CCTs in ASB’s name. Certainly, a Registrar of Deeds who is
required by law to be a member of the legal profession,55 possesses
common sense and prudence to ask for documents on which to base
his corrections. Reliance on the mere word of even the point person
for the transaction, smacks of gross negligence when all transactions
with the Office of the Register of Deeds, involving as it does
registration of property, ought to be properly recorded and
documented.
That the Office of the Register of Deeds requires documentation in
the registration of property, whether as an original or a subsequent
registration, brooks no argument. Again, and it cannot be overlooked
that, Espenesin initially referred to a MOA albeit Serrano worked on
the registration transaction for both ASB and MICO. Subsequently,
Serrano returns, bearing ostensible authority to transact even for
ASB, and Espenesin fails to ask for documentation for the correction
Serrano sought to be made, and simply relies on Serrano’s word.
We are baffled by the Registrar of Deeds’ failure to require
documentation which would serve as his basis for the correction. The
amendment sought by Serrano was not a mere clerical change of
registered name; it was a substantial one, changing ownership of 38
units in The Malayan Tower from one entity, ASB, to another, MICO.
Even just at Serrano’s initial request for correction of the CCTs, a red
flag should have gone up for a Registrar of Deeds.1âwphi1
Espenesin splits hairs when he claims that it is "in the Registration
Book where the prohibition to erase, alter, or amend, without court
order, applies." We disagree with Espenesin. Chapter IV on
Certificate of Title of Presidential Decree No. 1529,56 specifically
Sections 40, 42 and 43 belie the claim of Espenesin:
Section 40. Entry of Original Certificate of Title. Upon receipt by the
Register of Deeds of the original and duplicate copies of the original
certificate of title the same shall be entered in his record book and
shall be numbered, dated, signed and sealed by the Register of
Deeds with the seal of his office. Said certificate of title shall take
effect upon the date of entry thereof. The Register of Deeds shall
forthwith send notice by mail to the registered owner that his owner's
duplicate is ready for delivery to him upon payment of legal fees.
Section 42. Registration Books. The original copy of the original
certificate of title shall be filed in the Registry of Deeds. The same
shall be bound in consecutive order together with similar certificates
of title and shall constitute the registration book for titled properties.
Section 43. Transfer Certificate of Title. The subsequent certificate of
title that may be issued by the Register of Deeds pursuant to any
voluntary or involuntary instrument relating to the same land shall be
in like form, entitled "Transfer Certificate of Title", and likewise issued
in duplicate. The certificate shall show the number of the next
previous certificate covering the same land and also the fact that it
was originally registered, giving the record number, the number of the
original certificate of title, and the volume and page of the registration
book in which the latter is found.
Recording or entry of the titles, whether an original or a subsequent
transfer certificate of title in the record, is simultaneous with the
signing by the Register of Deeds. The signature on the certificate by
the Registrar of Deeds is accompanied by the dating, numbering and
sealing of the certificate. All these are part of a single registration
process. Where there has been a completed entry in the Record
Book, as in this case where the Ombudsman found that "the
signature of Espenesin is already affixed on the CCTs, and on its
face, it was explicitly declared that the titles have already been
entered in the Registration Book of the Register of Deeds of Pasig
City on March 11, 2005 at 11:55 a.m.," the Register of Deeds can no
longer tamper with entries, specially the very name of the titleholder.
The law says that the certificate of title shall take effect upon the date
of entry thereof.
To further drive home the point, as Registrar of Deeds, Espenesin
knew full well that "there is no final determination yet from the land
registration court as to who has a better right to the property in
question." Espenesin’s attempt to minimize the significance of a
Registrar of Deed’s signature on a CCT only aggravates the lack of
prudence in his action. The change in the titleholder in the CCTs from
ASB to MICO was an official documentation of a change of
ownership. It definitely cannot be characterized as simple error.
Grave misconduct, of which Espenesin has been charged, consists in
a public officer’s deliberate violation of a rule of law or standard of
behavior. It is regarded as grave when the elements of corruption,
clear intent to violate the law, or flagrant disregard of established
rules are present.57 In particular, corruption as an element of grave
misconduct consists in the official’s unlawful and wrongful use of his
station or character to procure some benefit for himself or for another
person, contrary to duty and the rights of others.58
In sum, the actions of Espenesin clearly demonstrate a disregard of
well-known legal rules.59 The penalty for Grave Misconduct is
dismissalfrom service with the accessory penalties of forfeiture of
retirement benefits, cancellation of eligibility, and perpetual
disqualification from reemployment in the government service,
including government-owned or controlled corporation.60
WHEREFORE, the petition in G.R. No. 192685 is PARTIALLY
GRANTED. The Resolution of the Ombudsman dated 30 April 2008
in OMB-C-C-07-0444-J is REVERSED and SET ASIDE. The
Ombudsman is hereby directed to file the necessary Information for
violation of Sections 3(a) and (e) of Republic Act No. 3019 against
public respondent Policarpio L. Espenesin and private respondent
Francis Serrano.
The petition in G.R. No. 199115 is GRANTED. The Decision of the
Court of Appeals dated 28 September 2011 in CA-G.R. SP No.
113171 and the Order dated 13 July 2009 of the Ombudsman in
OMB-C-A-07-0474-J are REVERSED and SET ASIDE. Respondent
Policarpio L. Espenesin is GUlLTY of Grave Misconduct and we,
thus, impose the penalty of DIMISSAL from service. However, due to
his retirement from the service, we order forfeiture of all his retirement
pay and benefits.
SO ORDERED.
JOSE PORTUGAL PEREZ
Associate Justice
WE CONCUR:
ANTONIO T. CARPIO
Associate Justice
Chairperson
ARTURO D. BRION MARIANO C. DEL CASTILLO
Associate Justice Associate Justice
ESTELA M. PERLAS-BERNABE
Associate Justice
ATTESTATION
I attest that the conclusions in the above Decision had been reached
in consultation before the case was assigned to the writer of the
opinion of the Court’s Division.
ANTONIO T. CARPIO
Associate Justice
Chairperson, Second Division
CERTIFICATION
Pursuant to Section 13, Article VIII of the Constitution and the
Division Chairperson's Attestation, I certify that the conclusions in the
above Decision had been reached in consultation before the case
was assigned to the writer of the opinion of the Court's Division.
MARIA LOURDES P. A. SERENO
Chief Justice

Footnotes
1
Constitution, Art. XI, Secs. 12-13.
2
Id.; The Ombudsman Act of 1989, Secs. 13 and 15.
3
Rollo (G.R. No. 192685), pp. 31-41.
4
Id. at 50-55.
5
Metropolitan Bank and Trust Co. v. ASB Holdings, Inc., 545
Phil. 604, 610 (2007).
6
Id. at 612.
7
Rollo (G.R. No. 192685), pp. 66-75.
8
3RD Recital, paragraph C of the MOA. Id. at 66.
9
Id. at 67-68.
10
Unit Nos.: 706, 902, 907, 911, 912, 914, 918, 1805, 1807,
1809, 1810, 1811, 1814, 1815, 1816, 1818, 2204, 2207, 2208,
2209, 2210, 2211, 2212, 2214, 2215, 2217, 2302, 2303, 2304,
2306, 2309, 2311, 2312, 2314, 2315, 2318, ₱5 and 2316. Id. at
34.
11
Id. at 200-202.
12
Id. at 203.
13
Id. at 204.
14
Entitled, "Property Registration Decree."
Section 108. Amendment and alteration of certificates. No
erasure, alteration, or amendment shall be made upon
the registration book after the entry of a certificate of title
or of a memorandum thereon and the attestation of the
same be Register of Deeds, except by order of the proper
Court of First Instance. A registered owner of other
person having an interest in registered property, or, in
proper cases, the Register of Deeds with the approval of
the Commissioner of Land Registration, may apply by
petition to the court upon the ground that the registered
interests of any description, whether vested, contingent,
expectant or inchoate appearing on the certificate, have
terminated and ceased; or that new interest not appearing
upon the certificate have arisen or been created; or that
an omission or error was made in entering a certificate or
any memorandum thereon, or, on any duplicate
certificate; or that the same or any person on the
certificate has been changed; or that the registered owner
has married, or, if registered as married, that the marriage
has been terminated and no right or interests of heirs or
creditors will thereby be affected; or that a corporation
which owned registered land and has been dissolved has
not convened the same within three years after its
dissolution; or upon any other reasonable ground; and the
court may hear and determine the petition after notice to
all parties in interest, and may order the entry or
cancellation of a new certificate, the entry or cancellation
of a memorandum upon a certificate, or grant any other
relief upon such terms and conditions, requiring security
or bond if necessary, as it may consider proper; Provided,
however, That this section shall not be construed to give
 the court authority to reopen the judgment or decree of
registration, and that nothing shall be done or ordered by
the court which shall impair the title or other interest of a
purchaser holding a certificate for value and in good faith,
or his heirs and assigns, without his or their written
consent. Where the owner's duplicate certificate is not
presented, a similar petition may be filed as provided in
the preceding section.
All petitions or motions filed under this Section as well as
under any other provision of this Decree after original
registration shall be filed and entitled in the original case
in which the decree or registration was entered.
15
Rollo (G.R. No. 192685), pp. 56-65.
16
Id. at 35-37.
17
Constitution, Art. XI, Sec. 13.
18
Constitution, Art. XI, Sec. 12.
19
ABS-CBN Broadcasting Corporation v. Office of the
Ombudsman, G.R. No. 133347, 15 October 2008, 569 SCRA
59, 75.
20
Vergara v. Ombudsman, G.R. No. 174567, 12 March 2009,
580 SCRA 693, 708; Presidential Commission on Good
Government v. Desierto, 563 Phil. 517, 525-526 (2007).
21
ABS-CBN Broadcasting Corporation v. Office of the
Ombudsman, supra note 19 at 75-76.
22
Baviera v. Zoleta, 535 Phil. 292, 314 (2006).
23
Vergara v. Ombudsman, supra note 20 at 709.
24
Rollo (G.R. No. 192685), p. 31.
25
Id. at 31-32.
26
Id. at 62-63.
27
Id. at 38-39.
28
Sison v. People, G.R. Nos. 170339 and 170398-403, 9 March
2010, 614 SCRA 670, 679.
29
Office of the Ombudsman (Mindanao) v. Cruzabra, G.R. No.
183507, 24 February 2010, 613 SCRA 549, 552.
30
Section 57. Procedure in registration of conveyances. An
owner desiring to convey his registered land in fee simple shall
execute and register a deed of conveyance in a form sufficient
in law. The Register of Deeds shall thereafter make out in the
registration book a new certificate of title to the grantee and
shall prepare and deliver to him an owner's duplicate certificate.
The Register of Deeds shall note upon the original and
duplicate certificate the date of transfer, the volume and page of
the registration book in which the new certificate is registered
and a reference by number to the last preceding certificate. The
original and the owner's duplicate of the grantor's certificate
shall be stamped "cancelled." The deed of conveyance shall be
filled and indorsed with the number and the place of registration
of the certificate of title of the land conveyed.
31
Entitled, "Property Registration Decree."
Section 108. Amendment and alteration of certificates. No
erasure, alteration, or amendment shall be made upon
the registration book after the entry of a certificate of title
or of a memorandum thereon and the attestation of the
same be Register of Deeds, except by order of the proper
Court of First Instance. A registered owner of other
person having an interest in registered property, or, in
proper cases, the Register of Deeds with the approval of
the Commissioner of Land Registration, may apply by
petition to the court upon the ground that the registered
interests of any description, whether vested, contingent,
expectant or inchoate appearing on the certificate, have
terminated and ceased; or that new interest not appearing
upon the certificate have arisen or been created; or that
an omission or error was made in entering a certificate or
any memorandum thereon, or, on any duplicate
certificate; or that the same or any person on the
certificate has been changed; or that the registered owner
has married, or, if registered as married, that the marriage
has been terminated and no right or interests of heirs or
creditors will thereby be affected; or that a corporation
which owned registered land and has been dissolved has
not convened the same within three years after its
dissolution; or upon any other reasonable ground; and the
court may hear and determine the petition after notice to
all parties in interest, and may order the entry or
cancellation of a new certificate, the entry or cancellation
of a memorandum upon a certificate, or grant any other
relief upon such terms and conditions, requiring security
or bond if necessary, as it may consider proper; Provided,
however, That this section shall not be construed to give
 the court authority to reopen the judgment or decree of
registration, and that nothing shall be done or ordered by
the court which shall impair the title or other interest of a
purchaser holding a certificate for value and in good faith,
or his heirs and assigns, without his or their written
consent. Where the owner's duplicate certificate is not
presented, a similar petition may be filed as provided in
the preceding section.
All petitions or motions filed under this Section as well as
under any other provision of this Decree after original
registration shall be filed and entitled in the original case
in which the decree or registration was entered.
32
Supra note 28 at 679-682.
33
Rollo (G.R. No. 199115), pp. 174-176.
34
Metropolitan Bank and Trust Company v. Tobias III, G.R. No.
177780, 25 January 2012, 664 SCRA 165, 177-178.
35
Balangauan v. Court of Appeals, Special Nineteenth Division,
Cebu City, G.R. No. 174350, 13 August 2008, 562 SCRA 184,
207.
36
390 Phil. 912 (2000).
37
Id. at 945-946.
38
Fuentes, Jr. v. Office of the Ombudsman, 511 Phil. 402, 415
(2005).
39
Galario v. Office of the Ombudsman (Mindanao), G.R. No.
166797, 10 July 2007, 527 SCRA 190, 204.
40
Casing v. Ombudsman, G.R. No. 192334, 13 June 2012, 672
SCRA 500, 509 citing Metropolitan Bank and Trust Company v.
Gonzales, G.R. No. 180165, 7 April 2009, 584 SCRA 631, 641.
41
Pilapil v. Sandiganbayan, G.R. No. 101978, 7 April 1993, 221
SCRA 349, 360.
42
Rollo (G.R. No. 192685), p. 203.
43
Rollo (G.R. No. 199115), pp. 79-80.
44
Id. at 79.
45
See http://nreaphilippines.com/question-on-philippine-real-
estate/land-registration-procedure/ last visited 21 July 2013.
46
See Sec. 1, Rule 45 in relation to Sec. 1, Rule 65 of the
Rules of Court; Angeles v. Gutierrez, G.R. Nos. 189161 and
189173, 21 March 2012, 668 SCRA 803.
47
Domingo v. Rayala, G.R. Nos. 155831, 155840 and 158700,
18 February 2008, 546 SCRA 90, 112.
48
Estarija v. Ranada, 525 Phil. 718, 728 (2006); Bureau of
Internal Revenue v. Organo, 468 Phil. 111, 118 (2004).
49
Villanueva v. Court of Appeals, 528 Phil. 432, 442 (2006);
Civil Service Commission v. Lucas, 361 Phil. 486, 490-491
(1999).
50
Santos v. Rasalan, 544 Phil. 35, 43 (2007); Civil Service
Commission v. Ledesma, 508 Phil. 569, 580 (2005).
51
Santos v. Rasalan, id.
52
Office of the Ombudsman v. Miedes, Sr., G.R. No. 176409,
27 February 2008, 547 SCRA 148, 157.
53
Rollo (G.R. No. 199115), p. 184.
54
Id.
55
Sec. 9, Presidential Decree No. 1529.
56
Section 39. Preparation of decree and Certificate of Title.
After the judgment directing the registration of title to land has
become final, the court shall, within fifteen days from entry of
judgment, issue an order directing the Commissioner to issue
the corresponding decree of registration and certificate of title.
The clerk of court shall send, within fifteen days from entry of
judgment, certified copies of the judgment and of the order of
the court directing the Commissioner to issue the
corresponding decree of registration and certificate of title, and
a certificate stating that the decision has not been amended,
reconsidered, nor appealed, and has become final. Thereupon,
the Commissioner shall cause to be prepared the decree of
registration as well as the original and duplicate of the
corresponding original certificate of title. The original certificate
of title shall be a true copy of the decree of registration. The
decree of registration shall be signed by the Commissioner,
entered and filed in the Land Registration Commission. The
original of the original certificate of title shall also be signed by
the Commissioner and shall be sent, together with the owner's
duplicate certificate, to the Register of Deeds of the city or
province where the property is situated for entry in his
registration book.
Section 40. Entry of Original Certificate of Title. x x x.
Section 41. Owner's duplicate certificate of title. The
owner's duplicate certificate of title shall be delivered to
the registered owner or to his duly authorized
representative. If two or more persons are registered
 owners, one owner's duplicate certificate may be issued
for the whole land, or if the co-owners so desire, a
separate duplicate may be issued to each of them in like
form, but all outstanding certificates of title so issued shall
be surrendered whenever the Register of Deeds shall
register any subsequent voluntary transaction affecting
the whole land or part thereof or any interest therein. The
Register of Deeds shall note on each certificate of title a
statement as to whom a copy thereof was issued.
Section 42. Registration Books. x x x.
Section 43. Transfer Certificate of Title. x x x.
57
Imperial, Jr. v. Government Service Insurance System, G.R.
No. 191224, 4 October 2011, 658 SCRA 497, 506.
58
National Power Corporation v. Civil Service Commission,
G.R. No. 152093, 24 January 2012, 663 SCRA 492, 495.
59
National Power Corporation v. Civil Service Commission, id.;
Jamsani-Rodriguez v. Justices Ong, Hernandez, Ponferrada,
A.M. 8-19-SBJ, 24 August 2010.
60
Section 22, Rule XIV of the Omnibus Rules Implementing
Book V of the Administrative Code of 1987.
Notes:
Rimando v Naguilian Emission Center

SECOND DIVISION
G.R. No. 198860 July 23, 2012
RESOLUTION
REYES, J.:
Before us is a petition for review on certiorari1 under Rule 45 of the
Rules of Court seeking to annul and set aside Decision2 dated March
30, 2011 of the Court of Appeals (CA) in CA-G.R. SP NO. 112152.
The Facts
The present controversy stemmed from a petition for mandamus and
damages filed before Branch 67 of the Regional Trial Court (RTC) of
Bauang, La Union, by Naguilian Emission Testing Center, Inc.,
represented by its President, Rosemarie Llarenas (respondent)
against Abraham P. Rimando (petitioner), who, at the time material to
the case, was the sitting mayor of the Municipality of Naguilian, La
Union.
The petition prayed for the issuance of a writ of mandamus to compel
the petitioner to issue a business permit in favor of the respondent.
In support of its plea, the respondent claimed that its business is
being conducted on a parcel of land which formerly belonged to the
national government but later on certified by the Department of
Environment and Natural Resources (DENR) as an alienable and
disposable land of the public domain. The respondent had operated
its business of emission testing on the land from 2005 to 2007. On
January 18, 2008, the respondent filed an application for the renewal
of its business permit and paid the corresponding fees therefor.
The petitioner, however, refused to issue a business permit unless
and until the respondent executes a contract of lease with the
Municipality of Naguilian. The respondent was amenable to signing
such contract subject to some proposed revisions, which, however,
were not acceptable to the petitioner. The parties did not reach a
common ground hence, the petition for mandamus.
The Ruling of the RTC
On May 26, 2009, the RTC denied the petition3 for lack of merit based
on the ratiocinations that: (a) the Municipality of Naguilian is the
declared owner of the subject parcel of land by virtue of Tax
Declaration No. 002-01197; (b) under Section 6A.01 of the Revenue
Code of the Municipality of Naguilian, the municipality has the right to
require the petitioner to sign a contract of lease because its business
operation is being conducted on a real property owned by the
municipality; and (c) a mayor’s duty to issue business permits is
discretionary in nature which may not be enforced by a mandamus
writ. The decretal portion of the decision reads:
WHEREFORE, premises considered, the petition is DENIED for lack
of merit.
SO ORDERED.4
The Ruling of the CA
Unwaivering, the respondent appealed to the CA. In its Decision5
dated March 30, 2011, the CA held that the appeal was dismissible
on the ground of mootness considering that the period for which the
business period was being sought had already lapsed. As such, any
ruling on the matter would bring no practical relief. Nonetheless, the
CA proceeded to resolve the issues involved in the appeal for
academic purposes.
The CA disagreed with the RTC and found that the factual milieu of
the case justifies the issuance of a writ of mandamus. The CA
reasoned that the tax declaration in the name of the municipality was
insufficient basis to require the execution of a contract of lease as a
condition sine qua non for the renewal of a business permit. The CA
further observed that Sangguniang Bayan Resolution No. 2007-81,
upon which the municipality anchored its imposition of rental fees,
was void because it failed to comply with the requirements of the
Local Government Code and its Implementing Rules and
Regulations.
The CA held that the petitioner may not be held liable for damages
since his action or inaction, for that matter, was done in the
performance of official duties that are legally protected by the
presumption of good faith. The CA likewise stressed that the civil
action filed against the petitioner had already become moot and
academic upon the expiration of his term as the mayor of Naguilian,
La Union.
Despite its incessant declarations on the mootness of the case, the
CA disposed of the appeal in this wise:
WHEREFORE, the Decision dated 26 May 2009 of the Regional Trial
Court, First Judicial Region, Bauang, La Union, Branch 67, in Special
Civil Action Case No. 72-BG, is hereby REVERSED and SET ASIDE.
SO ORDERED.6
The petitioner moved for reconsideration7 questioning the
pronouncement of the CA that Sangguniang Bayan Resolution No.
2007-81 was void and arguing that a petition for mandamus is not the
proper vehicle to determine the issue on the ownership of the subject
land. The motion was denied in the CA Resolution8 dated September
30, 2011.
The petitioner is now before this Court reiterating the arguments
raised in his motion for reconsideration.
Our Ruling
We agree with the CA that the petition for mandamus has already
become moot and academic owing to the expiration of the period
intended to be covered by the business permit.
An issue or a case becomes moot and academic when it ceases to
present a justiciable controversy so that a determination thereof
would be without practical use and value9 or in the nature of things,
cannot be enforced.10 In such cases, there is no actual substantial
relief to which the applicant would be entitled to and which would be
negated by the dismissal of the petition.11 As a rule, courts decline
jurisdiction over such case, or dismiss it on ground of mootness.12
The objective of the petition for mandamus to compel the petitioner to
grant a business permit in favor of respondent corporation for the
period 2008 to 2009 has already been superseded by the passage of
time and the expiration of the petitioner’s term as mayor. Verily then,
the issue as to whether or not the petitioner, in his capacity as mayor,
may be compelled by a writ of mandamus to release the respondent’s
business permit ceased to present a justiciable controversy such that
any ruling thereon would serve no practical value. Should the writ be
issued, the petitioner can no longer abide thereby; also, the effectivity
date of the business permit no longer subsists.
While the CA is not precluded from proceeding to resolve the
otherwise moot appeal of the respondent, we find that the decretal
portion of its decision was erroneously couched.
The CA’s conclusions on the issue of ownership over the subject land
and the invalidity of Sangguniang Bayan Resolution No. 2007-81,
aside from being unsubstantiated by convincing evidence, can no
longer be practically utilized in favor of the petitioner. Thus, the
overriding and decisive factor in the final disposition of the appeal
was its mootness and the CA should have dismissed the same along
with the petition for mandamus that spawned it.
More importantly, a mayor cannot be compelled by mandamus to
issue a business permit since the exercise of the same is a delegated
police power hence, discretionary in nature. This was the
pronouncement of this Court in Roble Arrastre, Inc. v. Hon. Villaflor 13
where a determination was made on the nature of the power of a
mayor to grant business permits under the Local Government Code,14
viz:
Central to the resolution of the case at bar is a reading of Section
444(b)(3)(iv) of the Local Government Code of 1991, which provides,
thus:
SEC. 444. The Chief Executive: Powers, Duties, Functions and
Compensation.
(b) For efficient, effective and economical governance the
purpose of which is the general welfare of the municipality and
its inhabitants pursuant to Section 16 of this Code, the
municipal mayor shall:
xxxx
3) Initiate and maximize the generation of resources and
revenues, and apply the same to the implementation of
development plans, program objectives and priorities as
provided for under Section 18 of this Code, particularly those
resources and revenues programmed for agro-industrial
development and country-wide growth and progress, and
relative thereto, shall:
xxxx
(iv) Issue licenses and permits and suspend or revoke the
same for any violation of the conditions upon which said
licenses or permits had been issued, pursuant to law or
ordinance.
As Section 444(b)(3)(iv) so states, the power of the municipal mayor
to issue licenses is pursuant to Section 16 of the Local Government
Code of 1991, which declares:
SEC. 16. General Welfare. – Every local government unit shall
exercise the powers expressly granted, those necessarily implied
therefrom, as well as powers necessary, appropriate, or incidental for
its efficient and effective governance, and those which are essential
to the promotion of the general welfare. Within their respective
territorial jurisdictions, local government units shall ensure and
support, among other things, the preservation and enrichment of
culture, promote health and safety, enhance the right of the people to
a balanced ecology, encourage and support the development of
appropriate and self-reliant scientific and technological capabilities,
improve public morals, enhance economic prosperity and social
justice, promote full employment among their residents, maintain
peace and order, and preserve the comfort and convenience of their
inhabitants.
Section 16, known as the general welfare clause, encapsulates the
delegated police power to local governments.1âwphi1 Local
government units exercise police power through their respective
legislative bodies. Evidently, the Local Government Code of 1991 is
unequivocal that the municipal mayor has the power to issue licenses
and permits and suspend or revoke the same for any violation of the
conditions upon which said licenses or permits had been issued,
pursuant to law or ordinance. x x x
xxxx
Section 444(b)(3)(iv) of the Local Government Code of 1991,
whereby the power of the respondent mayor to issue license and
permits is circumscribed, is a manifestation of the delegated police
power of a municipal corporation. Necessarily, the exercise thereof
cannot be deemed ministerial. As to the question of whether the
power is validly exercised, the matter is within the province of a writ of
certiorari, but certainly, not of mandamus.15 (Citations omitted)
Indeed, as correctly ruled by the RTC, the petition for mandamus filed
by the respondent is incompetent to compel the exercise of a mayor’s
discretionary duty to issue business permits.
WHEREFORE, premises considered, the Decision dated March 30,
2011 of the Court of Appeals in CA-G.R. SP No. 112152 is hereby
SET ASIDE. The Decision dated May 26, 2009 of the Regional Trial
Court of Bauang, La Union is REINSTATED.
SO ORDERED.
BIENVENIDO L. REYES
Associate justice
WE CONCUR:
ANTONIO T. CARPIO
Senior Associate Justice
Chairperson, Second Division
MARIANO C. DEL CASTILLO
Associate justice
JIOSE PORTUGAL PEREZ
Associate justice
MARIA LOURDES P.A. SERENO
Associate justice
CERTIFICATION
I certify that the conclusions in the above Resolution had been
reached in consultation before the case was assigned to the writer of
the opinion of the Court's Division.
ANTONIO T. CARPIO
Senior Associate Justice
(Per Section 12, R.A. 296, The Judiciary Act of 1948, as amended)

Footnotes
* Additional member per Special Order No. 1257 dated July 19,
2012, in lieu of the absence of Associate Justice Arturo D.
Brion.
1
Rollo, pp. 4-20.
2
Penned by Associate Justice Japar B. Dimaampao, with
Associate Justices Mariflor P. Punzalan Castillo and Jane
Aurora C. Lantion, concurring; id. at 22-22.
3
Under the sala of Judge Ferdinand A. Fe; id. at 46-49.
4
Id. at 49.
5
Supra note 2.
6
Rollo, p. 33.
7
Id. at 34-41.
8
Id. at 42-43.
9
Philippine Airlines, Inc. v. Pascua, 456 Phil. 425, 436 (2003).
10
Lanuza, Jr. v. Yuchengco, 494 Phil. 125, 133 (2005); See
also Gonzales v. Narvasa, 392 Phil.518, 522 (2000); Villarico v.
Court of Appeals, 424 Phil. 26 (2002); King v. Court of Appeals,
514 Phil. 465, 470 (2005).
11
Soriano Vda. De Dabao v. Court of Appeals, 469 Phil. 928
(2004).
12
Gunsi, Sr. v. Commissioners, The Commission on Elections,
G.R. No. 168792, February 23, 2009, 580 SCRA 70, 76.
13
531 Phil. 30 (2006).
14
Although the case involved the issuance of a business permit
for arrastre service, the general power of a mayor to issue
business permits is encapsulated in the same legal provision of
the Local Government Code without distinguishing the nature of
the business for which a permit is sought.
15
Supra note 13, at 43-46
Notes:
ADMINISTRATIVE POWERS

Hijo Plantation v. Central Bank of the Philippines

SECOND DIVISION
G.R. No. L-34526 August 9, 1988
PARAS, J.:
This is a petition for certiorari and prohibition which seeks: (1) to
declare Monetary Board Resolution No. 1995, series of 1971, as null
and void; (2) to prohibit the Central Bank from collecting the
stabilization tax on banana exports shipped during the period January
1, 1972 to June 30, 1982; and (3) a refund of the amount collected as
stabilization tax from the Central Bank.
The facts of this case as culled from the records are as follows:
Hijo Plantation, Inc., Davao Fruits Corporation, Twin Rivers
Plantation, Inc. and Marsman Plantation (Manifestation, Rollo, P. 18),
collectively referred to herein as petitioners, are domestic
corporations duly organized and existing under the laws of the
Philippines, all of which are engaged in the production and
exportation of bananas in and from Mindanao.
Owing to the difficulty of determining the exchange rate of the peso to
the dollar because of the floating rate and the promulgation of Central
Bank Circular No. 289 which imposes an 80% retention scheme on
all dollar earners, Congress passed Republic Act No. 6125 entitled
"an act imposing STABILIZATION TAX ON CONSIGNMENTS
ABROAD TO ACCELERATE THE ECONOMIC DEVELOPMENT OF
THE PHILIPPINES AND FOR OTHER PURPOSES," approved and
made effective on May 1, 1970 (Comment on Petition, Rollo, p, 32),
to eliminate the necessity for said circular and to stabilize the peso.
Among others, it provides as follows:
SECTION 1. There shall be imposed, assessed and
collected a stabilization tax on the gross F.O.B.
peso proceeds, based on the rate of exchange
prevailing at the time of receipt of such proceeds,
whether partial or total, of any exportation of the
following products in accordance with the following
schedule:
a. In the case of logs, copra, centrifugal
sugar, and copper ore and
concentrates:
 Ten per centum of the
F.O.B. peso proceeds of
exports received on or after
the date of effectivity of this
Act to June thirty, nineteen
hundred seventy one;
Eight per centum of the
F.O.B. peso proceeds of
exports received from July
first, nineteen hundred
seventy-one to June thirty,
nineteen hundred seventy-
two;
Six per centum of the F.O.B.
peso proceeds of exports
received from July first,
nineteen hundred seventy
two to June thirty, nineteen
hundred seventy- three; and
Four per centum of the
F.O.B. peso proceeds of
exports received from July
first, nineteen hundred
seventy-three to June thirty,
nineteen hundred seventy-
four.
b. In the case of molasses, coconut oil,
dessicated coconut, iron ore and
concentrates, chromite ore and
concentrates, copra meal or cake,
unmanufactured abaca,
unmanufactured tobacco, veneer core
and sheets, plywood (including plywood
panels faced with plastics), lumber,
canned pineapples, and bunker fuel oil;
Eight per centum of the
F.O.B. peso proceeds of
exports shipped on or after
the date of effectivity of this
 Act to June thirty, nineteen
hundred seventy-one;
Six per centum of the F.O.B.
peso proceeds of exports
shipped from July first,
nineteen hundred seventy
one to June thirty nineteen
hundred seventy- two;
Four per centum of the
F.O.B. peso proceeds of
exports shipped from July
first, nineteen hundred
seventy-two to June thirty
nineteen hundred seventy-
three; and
Two per centum of the
F.O.B. peso proceeds of
exports shipped from July
first, nineteen hundred
seventy three to June thirty
nineteen hundred seventy-
four.
Any export product the aggregate annual F.O.B.
value of which shall exceed five million United
States dollars in any one calendar year during the
effectivity of this Act shall likewise be subject to the
rates of tax in force during the fiscal years following
its reaching the said aggregate value. (Emphasis
supplied).
During the first nine (9) months of calendar year 1971, the total
banana export amounted to an annual aggregate F.O.B. value of
P8,949,000.00 (Answer, Rollo, p. 73) thus exceeding the aggregate
F.O.B. value of five million United States Dollar, bringing it within the
ambit of Republic Act No. 6125. Consequently, the banana industry
was in a dilemma as to when the stabilization tax was to become due
and collectible from it and under what schedule of Section 1 (b) of
Republic Act 6125 should said tax be collected. Accordingly,
petitioners through their counsel, by letter dated November 5, 1971,
sought the authoritative pronouncement of the Central Bank (herein
referred to as respondent), therein advancing the opinion that the
stabilization tax does not become due and collectible from the
petitioners until July 1, 1972 at the rate of 4% of the F.O.B. peso
proceeds of the exports shipped from July 1, 1972 to June 30,1973.
Replying by letter dated December 17,1971 (Rollo, p. 11), the Central
Bank called attention to Monetary Board Resolution No. 1995 dated
December 3, 1971 which clarified that:
1) For exports of bananas shipped during the period
from January 1, 1972 to June 30, 1972; the
stabilization tax shall be at the rate of 6%;
2) For exports of bananas shipped during the period
from July 1, 1972 to June 30, 1973, the stabilization
tax shall be at the rate of 4%; and
3) For exports of bananas shipped during the period
from July 1, 1973, to June 30, 1974, the stabilization
tax shall be at the rate of 2%."
Contending that said Board Resolution No. 1995 was manifestly
contrary to the legislative intent, petitioners sought a reconsideration
of said Board Resolution by letter dated December 27, 1971 (Rollo, p.
12) which request for reconsideration was denied by the respondent,
also by letter dated January 20, 1972 (Rollo, p. 24). With the denial of
petitioners' request for reconsideration, respondent thru its agent
Bank, Rizal Commercial Banking Corporation has been collecting
from the petitioners who have been forced to pay under protest, such
stabilization tax.
Petitioners view respondent's act as a clear violation of the provision
of Republic Act No. 6125, and as an act in excess of its jurisdiction,
hence, this petition.
The sole issue in this case is whether or not respondent acted with
grave abuse of discretion amounting to lack of jurisdiction when it
issued Monetary Board Resolution No. 1995, series of 1971 which in
effect reaffirmed Central Bank Circular No. 309, enacted pursuant to
Monetary Board Resolution No. 1179.
There is here no dispute that the banana industry is liable to pay the
stabilization tax prescribed under Republic Act No. 1995, it being the
admission of both parties, that the Industry has indeed reached and
for the first time in the calendar year 1971, a total banana export
exceeding the aggregate annual F.O.B. value of five million United
States dollars. The crux of the controversy, however, is the manner of
implementation of Republic Act No. 6125.
Section 1 of R.A. 6125 clearly provides as follows:
 An export product the aggregate annual F.O.B.
value of which shall exceed five million US dollars in
any one calendar year during the effectivity of the
act shall likewise be subject to the rates of tax in
force during the fiscal year following its reaching the
said aggregate value."
Petitioners contend that the stabilization tax to be collected from the
banana industry does not become due and collectible until July 1,
1972 at the rate of 4% of the F.O.B. peso proceeds of the export
shipped from July 1, 1972 to June 30,1973. They further contend that
respondent gave retroactive effect to the law (RA 6125) by ruling in
Monetary Board Resolution No. 1995 dated December 3, 1 971, that
the export stabilization tax on banana industry would start to accrue
on January 1, 1972 at the rate of 6% of the F.O.B. peso proceeds of
export shipped from July 1, 1971 to June 30, 1972 (Rollo, pp. 3-4).
Respondent, on the other hand, contends that the aforecited
provision of RA 6125 merely prescribes the rates that may be
imposed but does not provide when the tax shall be collected and
makes no reference to any definite fixed period when the tax shall
begin to be collected (Rollo, pp. 77-78).
There is merit in this petition.
In the very nature of things, in many cases it becomes impracticable
for the legislative department of the Government to provide general
regulations for the various and varying details for the management of
a particular department of the Government. It therefore becomes
convenient for the legislative department of the government, by law,
in a most general way, to provide for the conduct, control, and
management of the work of the particular department of the
government; to authorize certain persons, in charge of the
management and control of such department (United States v. Tupasi
Molina, 29 Phil. 119 [19141).
Such is the case in RA 6125, which provided in its Section 6, as
follows:
All rules and regulations for the purpose of carrying
out the provisions of the act shall be promulgated by
the Central Bank of the Philippines and shall take
effect fifteen days after publication in three
newspapers of general circulation throughout the
Philippines, one of which shall be in the national
language.
Such regulations have uniformly been held to have the force of law,
whenever they are found to be in consonance and in harmony with
the general purposes and objects of the law. Such regulations once
established and found to be in conformity with the general purposes
of the law, are just as binding upon all the parties, as if the regulation
had been written in the original law itself (29 Phil. 119, Ibid). Upon the
other hand, should the regulation conflict with the law, the validity of
the regulation cannot be sustained (Director of Forestry vs. Muroz 23
SCRA 1183).
Pursuant to the aforecited provision, the Monetary Board issued
Resolution No. 1179 which contained the rules and regulations for the
implementation of said provision which Board resolution was
subsequently embodied in Central Bank Circular No. 309, dated
August 10, 1970 (duly published in the Official Gazette, Vol. 66, No.
34, August 24, 1940, p. 7855 and in three newspapers of general
circulation throughout the Philippines namely, the Manila Times,
Manila Chronicle and Manila Daily Bulletin). Section 3 of Central
Bank Circular No. 309, "provides that the stabilization tax shall begin
to apply on January first following the calendar year during which
such export products shall have reached the aggregate annual F.O.B.
value of more than $5 million and the applicable tax rates shall be the
rates prescribed in schedule (b) of Section 1 of RA No. 6125 for the
fiscal year following the reaching of the said aggregate value."
Central Bank Circular No. 309 was subsequently reaffirmed in
Monetary Board Resolution No. 1995 herein assailed by petitioners
for being null and void (Rollo, pp. 97- 98).
In its comment (Rollo, p. 40), respondent argues that the request for
authoritative pronouncement of petitioners was made because there
was no express provision in Section 1 of RA 6125 which categorically
states, when the stabilization tax shall begin to accrue on those
aggregate annual F.O.B. values exceeding five (5) million United
States dollars in any one calendar year during the effectivity of said
act. For which reason, the law itself authorized it under Section 7 to
promulgate rules and regulations to carry out the provisions of said
law.
In petitioner's reply (Rollo, p. 154) they argue that since the Banana
Exports reached the aggregate annual F.O.B. value of US $5 million
in August 1971, the stabilization tax on banana should be imposed
only on July 1, 1972, the fiscal year following the calendar year during
which the industry attained the $5 million mark. Their argument finds
support in the very language of the law and upon congressional
record where a clarification on the applicability of the law was
categorically made by the then Senator Aytona who stated that the
tax shall be applicable only after the $5 million aggregate value is
reached, making such tax prospective in application and for a period
of one year- referring to the fiscal year (Annex 8, Comment of
Respondent; Rollo, p. 60). Clearly such clarification was indicative of
the legislative intent. Further, they argue that respondent bank
through the Monetary Board clearly overstepped RA 6125 which
empowered it to promulgate rules and regulations for the purpose of
carrying out the provisions of said act, because while Section 1 of the
law authorizes it to levy a stabilization tax on petitioners only in the
fiscal year following their reaching the aggregate annual F.O.B. value
of US $5 million, that is, the fiscal year July 1, 1972 to June 30, 1973,
at a tax rate of 4% of the F.O.B. peso proceeds, respondent in gross
violation of the law, instead issued Resolution No. 1995 which impose
a 6% stabilization tax for the calendar year January 1, 1972 to June
30, 1972, which obviously is in excess of its jurisdiction. It was further
argued that in directing its agent bank to collect the stabilization tax in
accordance with Monetary Board Resolution No. 1995, it acted
whimsically and capriciously. (Rollo, p. 155).
It will be observed that while Monetary Board Resolution No. 1995
cannot be said to be the product of grave abuse of discretion but
rather the result of respondent's overzealous desire to carry into
effect the provisions of RA 6125, it is evident that the Board acted
beyond its authority under the law and the Constitution. Hence, the
petition for certiorari and prohibition in the case at bar, is proper.
Moreover, there is no dispute that in case of discrepancy between the
basic law and a rule or regulation issued to implement said law, the
basic law prevails because said rule or regulation cannot go beyond
the terms and provisions of the basic law (People vs. Lim, 108 Phil.
1091). Rules that subvert the statute cannot be sanctioned
(University of Sto. Tomas v. Board of Tax Appeals, 93 Phil. 376; Del
Mar v. Phil. Veterans Administration, 51 SCRA 340). Except for
constitutional officials who can trace their competence to act to the
fundamental law itself, a public official must locate to the statute
relied upon a grant of power before he can exercise it. Department
zeal may not be permitted to outrun the authority conferred by statute
(Radio Communications of the Philippines, Inc. v. Santiago L-29236,
August 21, 1974, 58 SCRA 493; cited in Tayug Rural Bank v. Central
Bank, L-46158, November 28,1986,146 SCRA 120,130).
PREMISES CONSIDERED, this petition is hereby GRANTED.
SO ORDERED.
Melencio-Herrera (Chairperson), Padilla and Sarmiento JJ., concur.
Notes:
CIR v. Central Luzon Drug Corp.
THIRD DIVISION
G.R. No. 159647 April 15, 2005
DECISION
PANGANIBAN, J.:
The 20 percent discount required by the law to be given to senior
citizens is a tax credit, not merely a tax deduction from the gross
income or gross sale of the establishment concerned. A tax credit is
used by a private establishment only after the tax has been
computed; a tax deduction, before the tax is computed. RA 7432
unconditionally grants a tax credit to all covered entities. Thus, the
provisions of the revenue regulation that withdraw or modify such
grant are void. Basic is the rule that administrative regulations cannot
amend or revoke the law.
The Case
Before us is a Petition for Review1 under Rule 45 of the Rules of
Court, seeking to set aside the August 29, 2002 Decision2 and the
August 11, 2003 Resolution3 of the Court of Appeals (CA) in CA-GR
SP No. 67439. The assailed Decision reads as follows:
"WHEREFORE, premises considered, the Resolution appealed from
is AFFIRMED in toto. No costs."4
The assailed Resolution denied petitioner’s Motion for
Reconsideration.
The Facts
The CA narrated the antecedent facts as follows:
"Respondent is a domestic corporation primarily engaged in retailing
of medicines and other pharmaceutical products. In 1996, it operated
six (6) drugstores under the business name and style ‘Mercury Drug.’
"From January to December 1996, respondent granted twenty (20%)
percent sales discount to qualified senior citizens on their purchases
of medicines pursuant to Republic Act No. [R.A.] 7432 and its
Implementing Rules and Regulations. For the said period, the amount
allegedly representing the 20% sales discount granted by respondent
to qualified senior citizens totaled ₱904,769.00.
"On April 15, 1997, respondent filed its Annual Income Tax Return for
taxable year 1996 declaring therein that it incurred net losses from its
operations.
"On January 16, 1998, respondent filed with petitioner a claim for tax
refund/credit in the amount of ₱904,769.00 allegedly arising from the
20% sales discount granted by respondent to qualified senior citizens
in compliance with [R.A.] 7432. Unable to obtain affirmative response
from petitioner, respondent elevated its claim to the Court of Tax
Appeals [(CTA or Tax Court)] via a Petition for Review.
"On February 12, 2001, the Tax Court rendered a Decision5
dismissing respondent’s Petition for lack of merit. In said decision, the
[CTA] justified its ruling with the following ratiocination:
‘x x x, if no tax has been paid to the government, erroneously or
illegally, or if no amount is due and collectible from the taxpayer, tax
refund or tax credit is unavailing. Moreover, whether the recovery of
the tax is made by means of a claim for refund or tax credit, before
recovery is allowed[,] it must be first established that there was an
actual collection and receipt by the government of the tax sought to
be recovered. x x x.
‘x x x x x x x x x
‘Prescinding from the above, it could logically be deduced that tax
credit is premised on the existence of tax liability on the part of
taxpayer. In other words, if there is no tax liability, tax credit is not
available.’
"Respondent lodged a Motion for Reconsideration. The [CTA], in its
assailed resolution,6 granted respondent’s motion for reconsideration
and ordered herein petitioner to issue a Tax Credit Certificate in favor
of respondent citing the decision of the then Special Fourth Division
of [the CA] in CA G.R. SP No. 60057 entitled ‘Central [Luzon] Drug
Corporation vs. Commissioner of Internal Revenue’ promulgated on
May 31, 2001, to wit:
‘However, Sec. 229 clearly does not apply in the instant case
because the tax sought to be refunded or credited by petitioner was
not erroneously paid or illegally collected. We take exception to the
CTA’s sweeping but unfounded statement that ‘both tax refund and
tax credit are modes of recovering taxes which are either erroneously
or illegally paid to the government.’ Tax refunds or credits do not
exclusively pertain to illegally collected or erroneously paid taxes as
they may be other circumstances where a refund is warranted. The
tax refund provided under Section 229 deals exclusively with illegally
collected or erroneously paid taxes but there are other possible
situations, such as the refund of excess estimated corporate quarterly
income tax paid, or that of excess input tax paid by a VAT-registered
person, or that of excise tax paid on goods locally produced or
manufactured but actually exported. The standards and mechanics
for the grant of a refund or credit under these situations are different
from that under Sec. 229. Sec. 4[.a)] of R.A. 7432, is yet another
instance of a tax credit and it does not in any way refer to illegally
collected or erroneously paid taxes, x x x.’"7
Ruling of the Court of Appeals
The CA affirmed in toto the Resolution of the Court of Tax Appeals
(CTA) ordering petitioner to issue a tax credit certificate in favor of
respondent in the reduced amount of ₱903,038.39. It reasoned that
Republic Act No. (RA) 7432 required neither a tax liability nor a
payment of taxes by private establishments prior to the availment of a
tax credit. Moreover, such credit is not tantamount to an unintended
benefit from the law, but rather a just compensation for the taking of
private property for public use.
Hence this Petition.8
The Issues
Petitioner raises the following issues for our consideration:
"Whether the Court of Appeals erred in holding that respondent may
claim the 20% sales discount as a tax credit instead of as a deduction
from gross income or gross sales.
"Whether the Court of Appeals erred in holding that respondent is
entitled to a refund."9
These two issues may be summed up in only one: whether
respondent, despite incurring a net loss, may still claim the 20
percent sales discount as a tax credit.
The Court’s Ruling
The Petition is not meritorious.
Sole Issue:
Claim of 20 Percent Sales Discount
as Tax Credit Despite Net Loss
Section 4a) of RA 743210 grants to senior citizens the privilege of
obtaining a 20 percent discount on their purchase of medicine from
any private establishment in the country.11 The latter may then claim
the cost of the discount as a tax credit.12 But can such credit be
claimed, even though an establishment operates at a loss?
We answer in the affirmative.
Tax Credit versus
Tax Deduction
Although the term is not specifically defined in our Tax Code,13 tax
credit generally refers to an amount that is "subtracted directly from
one’s total tax liability."14 It is an "allowance against the tax itself"15 or
"a deduction from what is owed"16 by a taxpayer to the government.
Examples of tax credits are withheld taxes, payments of estimated
tax, and investment tax credits.17
Tax credit should be understood in relation to other tax concepts.
One of these is tax deduction -- defined as a subtraction "from
income for tax purposes,"18 or an amount that is "allowed by law to
reduce income prior to [the] application of the tax rate to compute the
amount of tax which is due."19 An example of a tax deduction is any of
the allowable deductions enumerated in Section 3420 of the Tax
Code.
A tax credit differs from a tax deduction. On the one hand, a tax credit
reduces the tax due, including -- whenever applicable -- the income
tax that is determined after applying the corresponding tax rates to
taxable income.21 A tax deduction, on the other, reduces the income
that is subject to tax22 in order to arrive at taxable income.23 To think
of the former as the latter is to avoid, if not entirely confuse, the issue.
A tax credit is used only after the tax has been computed; a tax
deduction, before.
Tax Liability Required
for Tax Credit
Since a tax credit is used to reduce directly the tax that is due, there
ought to be a tax liability before the tax credit can be applied. Without
that liability, any tax credit application will be useless. There will be no
reason for deducting the latter when there is, to begin with, no
existing obligation to the government. However, as will be presented
shortly, the existence of a tax credit or its grant by law is not the same
as the availment or use of such credit. While the grant is mandatory,
the availment or use is not.
If a net loss is reported by, and no other taxes are currently due from,
a business establishment, there will obviously be no tax liability
against which any tax credit can be applied.24 For the establishment
to choose the immediate availment of a tax credit will be premature
and impracticable. Nevertheless, the irrefutable fact remains that,
under RA 7432, Congress has granted without conditions a tax credit
benefit to all covered establishments.
Although this tax credit benefit is available, it need not be used by
losing ventures, since there is no tax liability that calls for its
application. Neither can it be reduced to nil by the quick yet callow
stroke of an administrative pen, simply because no reduction of taxes
can instantly be effected. By its nature, the tax credit may still be
deducted from a future, not a present, tax liability, without which it
does not have any use. In the meantime, it need not move. But it
breathes.
Prior Tax Payments Not
Required for Tax Credit
While a tax liability is essential to the availment or use of any tax
credit, prior tax payments are not. On the contrary, for the existence
or grant solely of such credit, neither a tax liability nor a prior tax
payment is needed. The Tax Code is in fact replete with provisions
granting or allowing tax credits, even though no taxes have been
previously paid.
For example, in computing the estate tax due, Section 86(E) allows a
tax credit -- subject to certain limitations -- for estate taxes paid to a
foreign country. Also found in Section 101(C) is a similar provision for
donor’s taxes -- again when paid to a foreign country -- in computing
for the donor’s tax due. The tax credits in both instances allude to the
prior payment of taxes, even if not made to our government.
Under Section 110, a VAT (Value-Added Tax)- registered person
engaging in transactions -- whether or not subject to the VAT -- is
also allowed a tax credit that includes a ratable portion of any input
tax not directly attributable to either activity. This input tax may either
be the VAT on the purchase or importation of goods or services that
is merely due from -- not necessarily paid by -- such VAT-registered
person in the course of trade or business; or the transitional input tax
determined in accordance with Section 111(A). The latter type may in
fact be an amount equivalent to only eight percent of the value of a
VAT-registered person’s beginning inventory of goods, materials and
supplies, when such amount -- as computed -- is higher than the
actual VAT paid on the said items.25 Clearly from this provision, the
tax credit refers to an input tax that is either due only or given a value
by mere comparison with the VAT actually paid -- then later prorated.
No tax is actually paid prior to the availment of such credit.
In Section 111(B), a one and a half percent input tax credit that is
merely presumptive is allowed. For the purchase of primary
agricultural products used as inputs -- either in the processing of
sardines, mackerel and milk, or in the manufacture of refined sugar
and cooking oil -- and for the contract price of public work contracts
entered into with the government, again, no prior tax payments are
needed for the use of the tax credit.
More important, a VAT-registered person whose sales are zero-rated
or effectively zero-rated may, under Section 112(A), apply for the
issuance of a tax credit certificate for the amount of creditable input
taxes merely due -- again not necessarily paid to -- the government
and attributable to such sales, to the extent that the input taxes have
not been applied against output taxes.26 Where a taxpayer
is engaged in zero-rated or effectively zero-rated sales and also in
taxable or exempt sales, the amount of creditable input taxes due that
are not directly and entirely attributable to any one of these
transactions shall be proportionately allocated on the basis of the
volume of sales. Indeed, in availing of such tax credit for VAT
purposes, this provision -- as well as the one earlier mentioned --
shows that the prior payment of taxes is not a requisite.
It may be argued that Section 28(B)(5)(b) of the Tax Code is another
illustration of a tax credit allowed, even though no prior tax payments
are not required. Specifically, in this provision, the imposition of a final
withholding tax rate on cash and/or property dividends received by a
nonresident foreign corporation from a domestic corporation is
subjected to the condition that a foreign tax credit will be given by the
domiciliary country in an amount equivalent to taxes that are merely
deemed paid.27 Although true, this provision actually refers to the tax
credit as a condition only for the imposition of a lower tax rate, not as
a deduction from the corresponding tax liability. Besides, it is not our
government but the domiciliary country that credits against the
income tax payable to the latter by the foreign corporation, the tax to
be foregone or spared.28
In contrast, Section 34(C)(3), in relation to Section 34(C)(7)(b),
categorically allows as credits, against the income tax imposable
under Title II, the amount of income taxes merely incurred -- not
necessarily paid -- by a domestic corporation during a taxable year in
any foreign country. Moreover, Section 34(C)(5) provides that for
such taxes incurred but not paid, a tax credit may be allowed, subject
to the condition precedent that the taxpayer shall simply give a bond
with sureties satisfactory to and approved by petitioner, in such sum
as may be required; and further conditioned upon payment by the
taxpayer of any tax found due, upon petitioner’s redetermination of it.
In addition to the above-cited provisions in the Tax Code, there are
also tax treaties and special laws that grant or allow tax credits, even
though no prior tax payments have been made.
Under the treaties in which the tax credit method is used as a relief to
avoid double taxation, income that is taxed in the state of source is
also taxable in the state of residence, but the tax paid in the former is
merely allowed as a credit against the tax levied in the latter.29
Apparently, payment is made to the state of source, not the state of
residence. No tax, therefore, has been previously paid to the latter.
Under special laws that particularly affect businesses, there can also
be tax credit incentives. To illustrate, the incentives provided for in
Article 48 of Presidential Decree No. (PD) 1789, as amended by
Batas Pambansa Blg. (BP) 391, include tax credits equivalent to
either five percent of the net value earned, or five or ten percent of
the net local content of exports.30 In order to avail of such credits
under the said law and still achieve its objectives, no prior tax
payments are necessary.
From all the foregoing instances, it is evident that prior tax payments
are not indispensable to the availment of a tax credit. Thus, the CA
correctly held that the availment under RA 7432 did not require prior
tax payments by private establishments concerned.31 However, we do
not agree with its finding32 that the carry-over of tax credits under the
said special law to succeeding taxable periods, and even their
application against internal revenue taxes, did not necessitate the
existence of a tax liability.
The examples above show that a tax liability is certainly important in
the availment or use, not the existence or grant, of a tax credit.
Regarding this matter, a private establishment reporting a net loss in
its financial statements is no different from another that presents a
net income. Both are entitled to the tax credit provided for under RA
7432, since the law itself accords that unconditional benefit. However,
for the losing establishment to immediately apply such credit, where
no tax is due, will be an improvident usance.
Sections 2.i and 4 of Revenue
Regulations No. 2-94 Erroneous
RA 7432 specifically allows private establishments to claim as tax
credit the amount of discounts they grant.33 In turn, the Implementing
Rules and Regulations, issued pursuant thereto, provide the
procedures for its availment.34 To deny such credit, despite the plain
mandate of the law and the regulations carrying out that mandate, is
indefensible.
First, the definition given by petitioner is erroneous. It refers to tax
credit as the amount representing the 20 percent discount that "shall
be deducted by the said establishments from their gross income for
income tax purposes and from their gross sales for value-added tax
or other percentage tax purposes."35 In ordinary business language,
the tax credit represents the amount of such discount. However, the
manner by which the discount shall be credited against taxes has not
been clarified by the revenue regulations.
By ordinary acceptation, a discount is an "abatement or reduction
made from the gross amount or value of anything."36 To be more
precise, it is in business parlance "a deduction or lowering of an
amount of money;"37 or "a reduction from the full amount or value of
something, especially a price."38 In business there are many kinds of
discount, the most common of which is that affecting the income
statement39 or financial report upon which the income tax is based.
Business Discounts
Deducted from Gross Sales
A cash discount, for example, is one granted by business
establishments to credit customers for their prompt payment.40 It is a
"reduction in price offered to the purchaser if payment is made within
a shorter period of time than the maximum time specified."41 Also
referred to as a sales discount on the part of the seller and a
purchase discount on the part of the buyer, it may be expressed in
such
terms as "5/10, n/30."42
A quantity discount, however, is a "reduction in price allowed for
purchases made in large quantities, justified by savings in packaging,
shipping, and handling."43 It is also called a volume or bulk discount.44
A "percentage reduction from the list price x x x allowed by
manufacturers to wholesalers and by wholesalers to retailers"45 is
known as a trade discount. No entry for it need be made in the
manual or computerized books of accounts, since the purchase or
sale is already valued at the net price actually charged the buyer.46
The purpose for the discount is to encourage trading or increase
sales, and the prices at which the purchased goods may be resold
are also suggested.47 Even a chain discount -- a series of discounts
from one list price -- is recorded at net.48
Finally, akin to a trade discount is a functional discount. It is "a
supplier’s price discount given to a purchaser based on the [latter’s]
role in the [former’s] distribution system."49 This role usually involves
warehousing or advertising.
Based on this discussion, we find that the nature of a sales discount
is peculiar. Applying generally accepted accounting principles
(GAAP) in the country, this type of discount is reflected in the income
statement50 as a line item deducted -- along with returns, allowances,
rebates and other similar expenses -- from gross sales to arrive at net
sales.51 This type of presentation is resorted to, because the accounts
receivable and sales figures that arise from sales discounts, -- as well
as from quantity, volume or bulk discounts -- are recorded in the
manual and computerized books of accounts and reflected in the
financial statements at the gross amounts of the invoices.52 This
manner of recording credit sales -- known as the gross method -- is
most widely used, because it is simple, more convenient to apply
than the net method, and produces no material errors over time.53
However, under the net method used in recording trade, chain or
functional discounts, only the net amounts of the invoices -- after the
discounts have been deducted -- are recorded in the books of
accounts54 and reflected in the financial statements. A separate line
item cannot be shown,55 because the transactions themselves
involving both accounts receivable and sales have already been
entered into, net of the said discounts.
The term sales discounts is not expressly defined in the Tax Code,
but one provision adverts to amounts whose sum -- along with sales
returns, allowances and cost of goods sold56 -- is deducted from gross
sales to come up with the gross income, profit or margin57 derived
from business.58 In another provision therein, sales discounts that are
granted and indicated in the invoices at the time of sale -- and that do
not depend upon the happening of any future event -- may be
excluded from the gross sales within the same quarter they were
given.59 While determinative only of the VAT, the latter provision also
appears as a suitable reference point for income tax purposes
already embraced in the former. After all, these two provisions affirm
that sales discounts are amounts that are always deductible from
gross sales.
Reason for the Senior Citizen Discount:
The Law, Not Prompt Payment
A distinguishing feature of the implementing rules of RA 7432 is the
private establishment’s outright deduction of the discount from the
invoice price of the medicine sold to the senior citizen.60 It is,
therefore, expected that for each retail sale made under this law, the
discount period lasts no more than a day, because such discount is
given -- and the net amount thereof collected -- immediately upon
perfection of the sale.61 Although prompt payment is made for an
arm’s-length transaction by the senior citizen, the real and compelling
reason for the private establishment giving the discount is that the law
itself makes it mandatory.
What RA 7432 grants the senior citizen is a mere discount privilege,
not a sales discount or any of the above discounts in particular.
Prompt payment is not the reason for (although a necessary
consequence of) such grant. To be sure, the privilege enjoyed by the
senior citizen must be equivalent to the tax credit benefit enjoyed by
the private establishment granting the discount. Yet, under the
revenue regulations promulgated by our tax authorities, this benefit
has been erroneously likened and confined to a sales discount.
To a senior citizen, the monetary effect of the privilege may be the
same as that resulting from a sales discount. However, to a private
establishment, the effect is different from a simple reduction in price
that results from such discount. In other words, the tax credit benefit
is not the same as a sales discount. To repeat from our earlier
discourse, this benefit cannot and should not be treated as a tax
deduction.
To stress, the effect of a sales discount on the income statement and
income tax return of an establishment covered by RA 7432 is
different from that resulting from the availment or use of its tax credit
benefit. While the former is a deduction before, the latter is a
deduction after, the income tax is computed. As mentioned earlier, a
discount is not necessarily a sales discount, and a tax credit for a
simple discount privilege should not be automatically treated like a
sales discount. Ubi lex non distinguit, nec nos distinguere debemus.
Where the law does not distinguish, we ought not to distinguish.
Sections 2.i and 4 of Revenue Regulations No. (RR) 2-94 define tax
credit as the 20 percent discount deductible from gross income for
income tax purposes, or from gross sales for VAT or other
percentage tax purposes. In effect, the tax credit benefit under RA
7432 is related to a sales discount. This contrived definition is
improper, considering that the latter has to be deducted from gross
sales in order to compute the gross income in the income statement
and cannot be deducted again, even for purposes of computing the
income tax.
When the law says that the cost of the discount may be claimed as a
tax credit, it means that the amount -- when claimed -- shall be
treated as a reduction from any tax liability, plain and simple. The
option to avail of the tax credit benefit depends upon the existence of
a tax liability, but to limit the benefit to a sales discount -- which is not
even identical to the discount privilege that is granted by law -- does
not define it at all and serves no useful purpose. The definition must,
therefore, be stricken down.
Laws Not Amended
by Regulations
Second, the law cannot be amended by a mere regulation. In fact, a
regulation that "operates to create a rule out of harmony with
the statute is a mere nullity";62 it cannot prevail.
It is a cardinal rule that courts "will and should respect the
contemporaneous construction placed upon a statute by the
executive officers whose duty it is to enforce it x x x."63 In the scheme
of judicial tax administration, the need for certainty and predictability
in the implementation of tax laws is crucial.64 Our tax authorities fill in
the details that "Congress may not have the opportunity or
competence to provide."65 The regulations these authorities issue are
relied upon by taxpayers, who are certain that these will be followed
by the courts.66 Courts, however, will not uphold these authorities’
interpretations when clearly absurd, erroneous or improper.
In the present case, the tax authorities have given the term tax credit
in Sections 2.i and 4 of RR 2-94 a meaning utterly in contrast to what
RA 7432 provides. Their interpretation has muddled up the intent of
Congress in granting a mere discount privilege, not a sales discount.
The administrative agency issuing these regulations may not enlarge,
alter or restrict the provisions of the law it administers; it cannot
engraft additional requirements not contemplated by the legislature.67
In case of conflict, the law must prevail.68 A "regulation adopted
pursuant to law is law."69 Conversely, a regulation or any portion
thereof not adopted pursuant to law is no law and has neither the
force nor the effect of law.70
Availment of Tax
Credit Voluntary

Third, the word may in the text of the statute71 implies that the
availability of the tax credit benefit is neither unrestricted nor
mandatory.72 There is no absolute right conferred upon respondent,
or any similar taxpayer, to avail itself of the tax credit remedy
whenever it chooses; "neither does it impose a duty on the part of the
government to sit back and allow an important facet of tax collection
to be at the sole control and discretion of the taxpayer."73 For the tax
authorities to compel respondent to deduct the 20 percent discount
from either its gross income or its gross sales74 is, therefore, not only
to make an imposition without basis in law, but also to blatantly
contravene the law itself.
What Section 4.a of RA 7432 means is that the tax credit benefit is
merely permissive, not imperative. Respondent is given two options --
either to claim or not to claim the cost of the discounts as a tax credit.
In fact, it may even ignore the credit and simply consider the gesture
as an act of beneficence, an expression of its social conscience.
Granting that there is a tax liability and respondent claims such cost
as a tax credit, then the tax credit can easily be applied. If there is
none, the credit cannot be used and will just have to be carried over
and revalidated75 accordingly. If, however, the business continues to
operate at a loss and no other taxes are due, thus compelling it to
close shop, the credit can never be applied and will be lost altogether.
In other words, it is the existence or the lack of a tax liability that
determines whether the cost of the discounts can be used as a tax
credit. RA 7432 does not give respondent the unfettered right to avail
itself of the credit whenever it pleases. Neither does it allow our tax
administrators to expand or contract the legislative mandate. "The
‘plain meaning rule’ or verba legis in statutory construction is thus
applicable x x x. Where the words of a statute are clear, plain and
free from ambiguity, it must be given its literal meaning and applied
without attempted interpretation."76
Tax Credit Benefit
Deemed Just Compensation
Fourth, Sections 2.i and 4 of RR 2-94 deny the exercise by the State
of its power of eminent domain. Be it stressed that the privilege
enjoyed by senior citizens does not come directly from the State, but
rather from the private establishments concerned. Accordingly, the
tax credit benefit granted to these establishments can be deemed as
their just compensation for private property taken by the State for
public use.77
The concept of public use is no longer confined to the traditional
notion of use by the public, but held synonymous with public interest,
public benefit, public welfare, and public convenience.78 The discount
privilege to which our senior citizens are entitled is actually a benefit
enjoyed by the general public to which these citizens belong. The
discounts given would have entered the coffers and formed part of
the gross sales of the private establishments concerned, were it not
for RA 7432. The permanent reduction in their total revenues is a
forced subsidy corresponding to the taking of private property for
public use or benefit.
As a result of the 20 percent discount imposed by RA 7432,
respondent becomes entitled to a just compensation. This term refers
not only to the issuance of a tax credit certificate indicating the correct
amount of the discounts given, but also to the promptness in its
release. Equivalent to the payment of property taken by the State,
such issuance -- when not done within a reasonable time from the
grant of the discounts -- cannot be considered as just compensation.
In effect, respondent is made to suffer the consequences of being
immediately deprived of its revenues while awaiting actual receipt,
through the certificate, of the equivalent amount it needs to cope with
the reduction in its revenues.79
Besides, the taxation power can also be used as an implement for the
exercise of the power of eminent domain.80 Tax measures are but
"enforced contributions exacted on pain of penal sanctions"81 and
"clearly imposed for a public purpose."82 In recent years, the power to
tax has indeed become a most effective tool to realize social justice,
public welfare, and the equitable distribution of wealth.83
While it is a declared commitment under Section 1 of RA 7432, social
justice "cannot be invoked to trample on the rights of property owners
who under our Constitution and laws are also entitled to protection.
The social justice consecrated in our [C]onstitution [is] not intended to
take away rights from a person and give them to another who is not
entitled thereto."84 For this reason, a just compensation for income
that is taken away from respondent becomes necessary. It is in the
tax credit that our legislators find support to realize social justice, and
no administrative body can alter that fact.
To put it differently, a private establishment that merely breaks even85
-- without the discounts yet -- will surely start to incur losses because
of such discounts. The same effect is expected if its mark-up is less
than 20 percent, and if all its sales come from retail purchases by
senior citizens. Aside from the observation we have already raised
earlier, it will also be grossly unfair to an establishment if the
discounts will be treated merely as deductions from either its gross
income or its gross sales. Operating at a loss through no fault of its
own, it will realize that the tax credit limitation under RR 2-94 is
inutile, if not improper. Worse, profit-generating businesses will be put
in a better position if they avail themselves of tax credits denied those
that are losing, because no taxes are due from the latter.
Grant of Tax Credit
Intended by the Legislature
Fifth, RA 7432 itself seeks to adopt measures whereby senior citizens
are assisted by the community as a whole and to establish a program
beneficial to them.86 These objectives are consonant with the
constitutional policy of making "health x x x services available to all
the people at affordable cost"87 and of giving "priority for the needs of
the x x x elderly."88 Sections 2.i and 4 of RR 2-94, however, contradict
these constitutional policies and statutory objectives.
Furthermore, Congress has allowed all private establishments a
simple tax credit, not a deduction. In fact, no cash outlay is required
from the government for the availment or use of such credit. The
deliberations on February 5, 1992 of the Bicameral Conference
Committee Meeting on Social Justice, which finalized RA 7432,
disclose the true intent of our legislators to treat the sales discounts
as a tax credit, rather than as a deduction from gross income. We
quote from those deliberations as follows:
"THE CHAIRMAN (Rep. Unico). By the way, before that ano, about
deductions from taxable income. I think we incorporated there a
provision na - on the responsibility of the private hospitals and
drugstores, hindi ba?
SEN. ANGARA. Oo.
THE CHAIRMAN. (Rep. Unico), So, I think we have to put in also a
provision here about the deductions from taxable income of that
private hospitals, di ba ganon 'yan?
MS. ADVENTO. Kaya lang po sir, and mga discounts po nila affecting
government and public institutions, so, puwede na po nating hindi
isama yung mga less deductions ng taxable income.
THE CHAIRMAN. (Rep. Unico). Puwede na. Yung about the private
hospitals. Yung isiningit natin?
MS. ADVENTO. Singit na po ba yung 15% on credit. (inaudible/did
not use the microphone).
SEN. ANGARA. Hindi pa, hindi pa.
THE CHAIRMAN. (Rep. Unico) Ah, 'di pa ba naisama natin?
SEN. ANGARA. Oo. You want to insert that?
THE CHAIRMAN (Rep. Unico). Yung ang proposal ni Senator
Shahani, e.
SEN. ANGARA. In the case of private hospitals they got the grant of
15% discount, provided that, the private hospitals can claim the
expense as a tax credit.
REP. AQUINO. Yah could be allowed as deductions in the
perpetrations of (inaudible) income.
SEN. ANGARA. I-tax credit na lang natin para walang cash-out ano?
REP. AQUINO. Oo, tax credit. Tama, Okay. Hospitals ba o lahat ng
establishments na covered.
THE CHAIRMAN. (Rep. Unico). Sa kuwan lang yon, as private
hospitals lang.
REP. AQUINO. Ano ba yung establishments na covered?
SEN. ANGARA. Restaurant lodging houses, recreation centers.
REP. AQUINO. All establishments covered siguro?
SEN. ANGARA. From all establishments. Alisin na natin 'Yung kuwan
kung ganon. Can we go back to Section 4 ha?
REP. AQUINO. Oho.
SEN. ANGARA. Letter A. To capture that thought, we'll say the grant
of 20% discount from all establishments et cetera, et cetera, provided
that said establishments - provided that private establishments may
claim the cost as a tax credit. Ganon ba 'yon?
REP. AQUINO. Yah.
SEN. ANGARA. Dahil kung government, they don't need to claim it.
THE CHAIRMAN. (Rep. Unico). Tax credit.
SEN. ANGARA. As a tax credit [rather] than a kuwan - deduction,
Okay.
REP. AQUINO Okay.
SEN. ANGARA. Sige Okay. Di subject to style na lang sa Letter A".89
Special Law
Over General Law
Sixth and last, RA 7432 is a special law that should prevail over the
Tax Code -- a general law. "x x x [T]he rule is that on a specific
matter the special law shall prevail over the general law, which shall
be resorted to only to supply deficiencies in the former."90 In addition,
"[w]here there are two statutes, the earlier special and the later
general -- the terms of the general broad enough to include the
matter provided for in the special -- the fact that one is special and
the other is general creates a presumption that the special is to be
considered as remaining an exception to the general,91 one as a
general law of the land, the other as the law of a particular case."92 "It
is a canon of statutory construction that a later statute, general in its
terms and not expressly repealing a prior special statute, will
ordinarily not affect the special provisions of such earlier statute."93
RA 7432 is an earlier law not expressly repealed by, and therefore
remains an exception to, the Tax Code -- a later law. When the
former states that a tax credit may be claimed, then the requirement
of prior tax payments under certain provisions of the latter, as
discussed above, cannot be made to apply. Neither can the instances
of or references to a tax deduction under the Tax Code94 be made to
restrict RA 7432. No provision of any revenue regulation can supplant
or modify the acts of Congress.
WHEREFORE, the Petition is hereby DENIED. The assailed Decision
and Resolution of the Court of Appeals AFFIRMED. No
pronouncement as to costs.
SO ORDERED.
ARTEMIO V. PANGANIBAN
Associate Justice
Chairman, Third Division
W E C O N C U R:
ANGELINA SANDOVAL-GUTIERREZ RENATO C. CORONA
Associate Justice Associate Justice

CONCHITA CARPIO MORALES CANCIO C. GARCIA

Associate Justice Associate Justice
ATTESTATION
I attest that the conclusions in the above decision had been reached
in consultation before the case was assigned to the writer of the
opinion of the Court’s Division.
ARTEMIO V. PANGANIBAN
Associate Justice
Chairman, Third Division
CERTIFICATION
Pursuant to Section 13, Article VIII of the Constitution, and the
Chairman’s Attestation, it is hereby certified that the conclusions in
the above Decision had been reached in consultation before the case
was assigned to the writer of the opinion of the Court’s Division.
HILARIO G. DAVIDE, JR.
Chief Justice

Footnotes
1
Rollo, pp. 9-31.
2
Id., pp. 33-41. Penned by Justice Rebecca de Guia-
Salvador, with the concurrence of Justices Godardo A.
Jacinto (Fourth Division chair) and Eloy R. Bello Jr.
(member, now retired).
3
Id., p. 43.
4
CA Decision, p. 9; rollo, p. 41.
5
Penned by Judge Ramon O. De Veyra with the
concurrence of Judge Amancio Q. Saga. Presiding Judge
(now Presiding Justice) Ernesto D. Acosta dissented.
6
Penned by Presiding Judge (now Presiding Justice)
Ernesto D. Acosta with the concurrence of Judge (now
Justice) Juanito C. Castañeda, Jr. Judge Amancio Q.
Saga dissented.
7
Id., pp. 2-4 & 34-36.
8
The Petition was deemed submitted for decision on June
10, 2004, upon receipt by the Court of respondent’s
Memorandum, signed by Atty. Joy Ann Marie G. Nolasco.
Petitioner’s Memorandum -- signed by Solicitor General
Alfredo L. Benipayo, Assistant Solicitor General Ma.
Antonia Edita C. Dizon, and Solicitor Magtanggol M.
Castro -- was filed on June 2, 2004.
9
Petitioner’s Memorandum, p. 5; rollo, p. 96. Original in
upper case.
10
Entitled "An Act to Maximize the Contribution of Senior
Citizens to Nation Building, Grant Benefits and Special
Privileges and for other purposes," this law took effect in
1992. See Santos, Jr. v. Llamas, 379 Phil. 569, 577,
January 20, 2000.
11
§4.a of RA 7432.
12
Ibid.
13
Republic Act No. (RA) 8424 as amended by RAs 8761
and 9010.
Likewise, the term tax credit is not defined in Presidential
Decree No. (PD) 1158, otherwise known as the National
Internal Revenue Code of 1977 as amended.
14
Garner (ed.), Black’s Law Dictionary (8th ed., 1999), p.
1501.
15
Smith, West’s Tax Law Dictionary (1993), pp. 177-178.
16
Oran and Tosti, Oran’s Dictionary of the Law (3rd ed.,
2000), p. 124.
17
Malapo-Agato and San Andres-Francisco, Dictionary of
Accounting Terms (2003), p. 258.
18
Oran and Tosti, supra, p. 135.
19
Smith, supra, p. 196.
20
The itemized deductions considered as allowable
deductions from gross income include ordinary and
necessary expenses, interest, taxes, losses, bad debts,
depreciation, depletion of oil and gas wells and mines,
charitable and other contributions, research and
development expenditures, and pension trust
contributions.
21
"While taxable income is based on the method of
accounting used by the taxpayer, it will almost always
differ from accounting income. This is so because of a
fundamental difference in the ends the two concepts
serve. Accounting attempts to match cost against
revenue. Tax law is aimed at collecting revenue. It is
quick to treat an item as income, slow to recognize
deductions or losses. Thus, the tax law will not recognize
deductions for contingent future losses except in very
limited situations. Good accounting, on the other hand,
requires their recognition. Once this fundamental
difference in approach is accepted, income tax
accounting methods can be understood more easily."
Consolidated Mines, Inc. v. CTA, 157 Phil. 608, August
29, 1974, per Makalintal, CJ. Underscoring supplied.
22
Smith, supra, pp. 177-178.
23
Id., p. 196.
24
BPI-Family Savings Bank, Inc. v. CA, 386 Phil. 719,
727, April 12, 2000.
25
§4.105-1 of BIR Revenue Regulations No. (RR) 7-95.
26
Commissioner of Internal Revenue v. Seagate
Technology (Phils.), Inc., GR No. 153866, February 11,
2005, pp. 13-15.
27
Commissioner of Internal Revenue v. Procter & Gamble
Philippine Manufacturing Corp., 204 SCRA 377, 388,
December 2, 1991.
28
Deoferio Jr. and Tan Torres, Know Your CTRP:
Comments on the Amendments to the National Internal
Revenue Code under Republic Act No. 8424 (2nd
printing, 1999), p. 61.
29
Commissioner of Internal Revenue v. S.C. Johnson and
Son, Inc., 368 Phil. 388, 405-406, June 25, 1999.
30
Pilipinas Kao, Inc. v. CA, 423 Phil. 834, 838-839, 851,
December 18, 2001.
31
CA Decision, p. 9; rollo, pp. 40-41.
32
Id., pp. 7-8; id., pp. 39-40.
33
§4.a of RA 7432.
34
D. and E. of Rule V of the "Rules And Regulations in
the Implementation of RA 7432, The Act to Maximize the
Contribution of Senior Citizens to Nation Building, Grant
Benefits and Special Privileges and for other purposes,"
approved per Resolution No. 1 (Series 1993) issued by
the National Economic and Development Authority
(NEDA) Social Development Committee.
35
§2.i of RR 2-94, issued August 23, 1993. See also §4
thereof.
36
Gove (Ed. in Chief), Webster’s Third New International
Dictionary of the English Language, Unabridged (1976),
p. 646.
37
Oran and Tosti, supra, p. 149.
38
Garner (ed.), supra, p. 498.
39
An income statement, profit and loss statement, or
statement of income and expenses is a "financial
statement prepared from accounts and designed to show
the several elements entering into the computation of net
income for a given period." Malapo-Agato and San
Andres-Francisco, Dictionary of Accounting Terms
(2003), p. 136.
40
Valix and Peralta, Financial Accounting, Volume One
(2002), p. 347.
41
Editorial Staff of Prentice-Hall, Inc., Encyclopedic
Dictionary of Business Finance (2nd printing, 1962), pp.
117-118. See Malapo-Agato and San Andres-Francisco,
supra, p. 49.
42
This means that the customer is entitled to a 5%
discount, if payment is made within 10 days from the
invoice date. Beyond that, but within 30 days from the
invoice date, the gross amount of the invoice price is due.
Valix and Peralta, supra, p. 347.
43
Editorial Staff of Prentice-Hall, Inc., supra, pp. 503-504.
44
Garner (Ed.), supra, p. 498.
45
Editorial Staff of Prentice-Hall, Inc., supra, pp. 607-609.
46
Valix and Peralta, supra, p. 453. See Malapo-Agato and
San Andres-Francisco, supra, p. 263.
47
Id., p. 453.
48
Editorial Staff of Prentice-Hall, Inc., supra, pp. 607-609.
49
Garner (Ed.), supra, p. 498.
50
Functional, as opposed to the natural, presentation is
the traditional and common form of the income statement.
Functional presentation classifies expenses according to
their function -- whether as part of cost of sales, selling
activities, administrative activities, or other operating
activities. The Accounting Standards Council (ASC) in the
Philippines does not prescribe any format, the choice
being based on that which "fairly presents the elements of
the enterprise performance." If the functional format is
used, an additional disclosure of the nature of the
expenses is necessary. Valix and Peralta, supra, pp. 155
& 162.
51
Garner (Ed.), supra, p. 1365. See Valix and Peralta,
supra, pp. 156-160 & 453.
On the other hand, purchase discounts are deducted --
also along with returns, allowances, rebates and other
similar revenues -- from gross purchases to arrive at net
purchases.
52
Valix and Peralta, supra, p. 347.
53
Id., pp. 347 & 456.
54
Id., p. 347.
55
Except when presented for managerial or cost
accounting reports, these items are chiefly internal and
are neither disseminated to the general public nor
attested to by the external auditors.
56
Cost of goods sold is the most commonly used term
referring to a particular section in the financial statements,
reports, or notes to financial statements of trading or
merchandising concerns. For a manufacturing business,
however, the term used is cost of goods manufactured
and sold or cost of goods produced and sold; for a service
enterprise, cost of services; and, in general, cost of sales
of a business. See Malapo-Agato and San Andres-
Francisco, supra, p. 73.
57
Gross income, profit or margin is the "difference
between sales revenues and manufacturing costs as an
intermediate step in the computation of operating profits
or net income." It is also the "excess of sales over the
cost of goods sold." Malapo-Agato and San Andres-
Francisco, supra, p. 129.
More simply, gross sales less sales discounts, returns,
allowances, rebates, and other similar expenses equal
net sales; and net sales less cost of sales equal gross
income.
58
Paragraphs 7 to 10 of §27(A), Chapter IV, Title II of RA
8424 as amended.
59
§106(D)(2), Chapter I, Title IV of RA 8424 as amended.
60
See D. of Rule V of the "Rules And Regulations in the
Implementation of RA 7432, The Act to Maximize the
Contribution of Senior Citizens to Nation Building, Grant
Benefits and Special Privileges and for other purposes,"
approved per Resolution No. 1 (Series 1993) issued by
the National Economic and Development Authority
(NEDA) Social Development Committee.
61
Theoretically, an allowance for sales discount account
can also be set up by a business establishment in its
books of account at the end of its accounting period to
reflect its estimates of cash discounts on open accounts
based on past experience. The accounting entry for this
account is then reversed at the beginning of the next
accounting period, so that such discounts can again be
normally charged to the sales discount account. Valix and
Peralta, supra, p. 348.
62
Commissioner of Internal Revenue v. Vda. de Prieto,
109 Phil. 592, 597, September 30, 1960, per Gutierrez
David, J. (citing Miller v. US, 294 US 435, 439-441, 55
S.Ct. 440,442, March 4, 1935; and Lynch v. Tilden
Produce Co., 265 US 315, 321-322, 44 S.Ct. 488, 490,
May 26, 1924).
63
Molina v. Rafferty, 37 Phil. 545, 555, February 1, 1918,
per Malcolm, J. (citing Government ex rel. Municipality of
Cardona v. Municipality of Binangonan, 34 Phil. 518, 520-
521, March 29, 1916; In re Allen, 2 Phil. 630, 640,
October 29, 1903; and Pennoyer v. McConnaughy, 11
S.Ct. 699, 706, April 20, 1891).
64
Lim Hoa Ting v. Central Bank of the Philippines, 104
Phil. 573, 580, September 24, 1958 (citing Griswold, A
Summary of the Regulations Problem, 54 Harvard Law
Review 3, 398, 406, January 1941).
65
Eastern Shipping Lines, Inc. v. Philippine Overseas
Employment Administration, 166 SCRA 533, 544,
October 18, 1988, per Cruz, J.
66
Lim Hoa Ting v. Central Bank of the Philippines, supra,
p. 580.
67
Pilipinas Kao, Inc. v. CA, supra, p. 858.
68
Wise & Co., Inc. v. Meer, 78 Phil. 655, 676, June 30,
1947.
69
Macailing v. Andrada, 31 SCRA 126, 139, January 30,
1970, per Sanchez, J.
70
See Banco Filipino Savings and Mortgage Bank v. Hon.
Navarro, 158 SCRA 346, 354, July 28, 1987; and Valerio
v. Secretary of Agriculture & Natural Resources, 117 Phil.
729, 733, April 23, 1963.
71
§4.a of RA 7432.
72
See also Manufacturers Hanover Trust Co. and/or
Chemical Bank v. Guerrero, 445 Phil. 770, 782, February
19, 2003 (citing Shauf v. CA, 191 SCRA 713, 738,
November 27, 1990; Ayala Land, Inc. v. Spouses Carpo,
345 SCRA 579, 585, November 22, 2000; and In re
Guariña, 24 Phil. 37, 41, January 8, 1913).
73
San Carlos Milling Co., Inc. v. Commissioner of Internal
Revenue, 228 SCRA 135, 142, November 23, 1993, per
Padilla, J.
74
§§2.i & 4 of RR 2-94.
75
§230(B), Chapter III, Title VIII of RA 8424 as amended.
76
National Federation of Labor v. NLRC, 383 Phil. 910,
918, March 2, 2000, per De Leon Jr., J. (quoting Fianza v.
People’s Law Enforcement Board, 243 SCRA 165, 178,
March 31, 1995, per Romero, J.).
77
See City of Cebu v. Spouses Dedamo, 431 Phil. 524,
532, May 7, 2002.
78
Reyes v. National Housing Authority, 443 Phil. 603,
610-611, January 20, 2003 (citing Heirs of Juancho
Ardona v. Hon. Reyes, 210 Phil. 187, 197-201, October
26, 1983).
79
See Land Bank of the Philippines v. De Leon, 437 Phil.
347, 359, September 10, 2002 (citing Estate of Salud
Jimenez v. Philippine Export Processing Zone, 349 SCRA
240, 264, January 16, 2001).
80
See Association of Small Landowners in the
Philippines, Inc. v. Secretary of Agrarian Reform, 175
SCRA 343, 371, July 14, 1989 (citing Powell v.
Pennsylvania, 127 US 678, 683, 8 S.Ct. 992, 995, April 9,
1888).
81
Republic v. COCOFED, 423 Phil. 735, 764, December
14, 2001, per Panganiban, J.
82
Id. at 765.
83
National Power Corp. v. City of Cabanatuan, 449 Phil.
233, 248, April 9, 2003 (citing Vitug and Acosta, Tax Law
and Jurisprudence [2nd ed., 2000], pp.1-2).
84
Salonga v. Farrales, 192 Phil. 614, 624, July 10, 1981,
per Fernandez, J.
85
Break-even is the point at which a business neither
generates an income nor incurs a loss from its operations.
86
Items 1 & 2, 2nd paragraph of §1 of RA 7432.
87
1st paragraph of §1 of RA 7432 and §11 of Article XIII
of the 1987 Constitution.
88
Ibid. The constitutional references are reiterated in the
sponsorship speech delivered on January 23, 1992 by
Representative Dionisio S. Ojeda, regarding House Bill
No. (HB) 35335, per Committee Report No. 01730, pp 38-
39 (jointly submitted by the Committee on Revision of
Laws, the Committee on Family Relations and Population,
and the Committee on Ways and Means). HB 35335 was
approved on second reading without any amendment.
89
Deliberations of the Bicameral Conference Committee
Meeting on Social Justice, February 5, 1992, pp. 22-24.
Italics supplied.
90
Leyte Asphalt & Mineral Oil Co., Ltd. v. Block, Johnston
& Greenbaum, 52 Phil. 429, 432, December 14, 1928, per
Romualdez, J.
91
City Mayor v. The Chief Police Constabulary, 128 Phil.
674, 687, October 31, 1967.
92
Manila Railroad Co. v. Rafferty, 40 Phil. 224, 229,
September 30, 1919, per Johnson, J. (citing State v. Stoll,
84 US 425, 431, 436, 17 Wall. 425, 431, 436, October
term, 1873).
93
Ibid, per Johnson, J. (citing Minnesota v. Hitchcock, 185
US, 373, 396-397, 22 S.Ct. 650, 659, May 5, 1902, Cass
County v. Gillett, 100 US 585, 593, 10 Otto 585, 593,
October term, 1879; and New Jersey Steamboat Co. v.
Collector, 85 US 478, 490-491, 18 Wall 478, 490-491,
October term, 1873).
94
Not even the provisions of PD 1158 -- reiterated later in
RA 8424 as amended -- change the Court’s observations
on tax liability, prior tax payments, sales discount, tax
deduction, and tax credit. PD 1158 was a general law that
preceded RA 7432, a special law; thus, the latter prevails
over the former. With all the more reason should the rules
on statutory construction apply.
Notes:
Solid Homes v Payawal

FIRST DIVISION

G.R. No. 84811 August 29, 1989

SOLID HOMES, INC., petitioner,

vs.
TERESITA PAYAWAL and COURT OF APPEALS, respondents.

CRUZ, J.:

We are asked to reverse a decision of the Court of Appeals sustaining the jurisdiction of the
Regional Trial Court of Quezon City over a complaint filed by a buyer, the herein private
respondent, against the petitioner, for delivery of title to a subdivision lot. The position of the
petitioner, the defendant in that action, is that the decision of the trial court is null and void ab
initio because the case should have been heard and decided by what is now called the
Housing and Land Use Regulatory Board.

The complaint was filed on August 31, 1982, by Teresita Payawal against Solid Homes, Inc.
before the Regional Trial Court of Quezon City and docketed as Civil Case No. Q-36119.
The plaintiff alleged that the defendant contracted to sell to her a subdivision lot in Marikina
on June 9, 1975, for the agreed price of P 28,080.00, and that by September 10, 1981, she
had already paid the defendant the total amount of P 38,949.87 in monthly installments and
interests. Solid Homes subsequently executed a deed of sale over the land but failed to
deliver the corresponding certificate of title despite her repeated demands because, as it
appeared later, the defendant had mortgaged the property in bad faith to a financing
company. The plaintiff asked for delivery of the title to the lot or, alternatively, the return of all
the amounts paid by her plus interest. She also claimed moral and exemplary damages,
attorney's fees and the costs of the suit.

Solid Homes moved to dismiss the complaint on the ground that the court had no jurisdiction,
this being vested in the National Housing Authority under PD No. 957. The motion was
denied. The defendant repleaded the objection in its answer, citing Section 3 of the said
decree providing that "the National Housing Authority shall have exclusive jurisdiction to
regulate the real estate trade and business in accordance with the provisions of this Decree."
After trial, judgment was rendered in favor of the plaintiff and the defendant was ordered to
deliver to her the title to the land or, failing this, to refund to her the sum of P 38,949.87 plus
interest from 1975 and until the full amount was paid. She was also awarded P 5,000.00
moral damages, P 5,000.00 exemplary damages, P 10,000.00 attorney's fees, and the costs
of the suit.1

Solid Homes appealed but the decision was affirmed by the respondent court, 2 which also
berated the appellant for its obvious efforts to evade a legitimate obligation, including its
dilatory tactics during the trial. The petitioner was also reproved for its "gall" in collecting the
further amount of P 1,238.47 from the plaintiff purportedly for realty taxes and registration
expenses despite its inability to deliver the title to the land.
In holding that the trial court had jurisdiction, the respondent court referred to Section 41 of
PD No. 957 itself providing that:

SEC. 41. Other remedies.-The rights and remedies provided in this

Decree shall be in addition to any and all other rights and remedies
that may be available under existing laws.

and declared that "its clear and unambiguous tenor undermine(d) the (petitioner's)
pretension that the court a quo was bereft of jurisdiction." The decision also dismissed the
contrary opinion of the Secretary of Justice as impinging on the authority of the courts of
justice. While we are disturbed by the findings of fact of the trial court and the respondent
court on the dubious conduct of the petitioner, we nevertheless must sustain it on the
jurisdictional issue.

The applicable law is PD No. 957, as amended by PD No. 1344, entitled "Empowering the
National Housing Authority to Issue Writs of Execution in the Enforcement of Its Decisions
Under Presidential Decree No. 957." Section 1 of the latter decree provides as follows:

SECTION 1. In the exercise of its function to regulate the real estate

trade and business and in addition to its powers provided for in
Presidential Decree No. 957, the National Housing Authority shall
have exclusive jurisdiction to hear and decide cases of the following
nature:

A. Unsound real estate business practices;

B. Claims involving refund and any other claims filed by subdivision

lot or condominium unit buyer against the project owner, developer,
dealer, broker or salesman; and

C. Cases involving specific performance of contractuala statutory

obligations filed by buyers of subdivision lot or condominium unit
against the owner, developer, dealer, broker or salesman. (Emphasis
supplied.)

The language of this section, especially the italicized portions, leaves no room for doubt that
"exclusive jurisdiction" over the case between the petitioner and the private respondent is
vested not in the Regional Trial Court but in the National Housing Authority. 3

The private respondent contends that the applicable law is BP No. 129, which confers on
regional trial courts jurisdiction to hear and decide cases mentioned in its Section 19, reading
in part as follows:

SEC. 19. Jurisdiction in civil cases.-Regional Trial Courts shall

exercise exclusive original jurisdiction:

(1) In all civil actions in which the subject of the litigation is incapable
of pecuniary estimation;

(2) In all civil actions which involve the title to, or possession of, real
property, or any interest therein, except actions for forcible entry into
 and unlawful detainer of lands or buildings, original jurisdiction over
which is conferred upon Metropolitan Trial Courts, Municipal Trial
Courts, and Municipal Circuit Trial Courts;

xxx xxx xxx

(8) In all other cases in which the demand, exclusive of interest and
cost or the value of the property in controversy, amounts to more than
twenty thousand pesos (P 20,000.00).

It stresses, additionally, that BP No. 129 should control as the later enactment, having been
promulgated in 1981, after PD No. 957 was issued in 1975 and PD No. 1344 in 1978.

This construction must yield to the familiar canon that in case of conflict between a general
law and a special law, the latter must prevail regardless of the dates of their enactment.
Thus, it has been held that-

The fact that one law is special and the other general creates a
presumption that the special act is to be considered as remaining an
exception of the general act, one as a general law of the land and the
other as the law of the particular case. 4

xxx xxx xxx

The circumstance that the special law is passed before or after the
general act does not change the principle. Where the special law is
later, it will be regarded as an exception to, or a qualification of, the
prior general act; and where the general act is later, the special
statute will be construed as remaining an exception to its terms,
unless repealed expressly or by necessary implication. 5

It is obvious that the general law in this case is BP No. 129 and PD No. 1344 the special law.

The argument that the trial court could also assume jurisdiction because of Section 41 of PD
No. 957, earlier quoted, is also unacceptable. We do not read that provision as vesting
concurrent jurisdiction on the Regional Trial Court and the Board over the complaint
mentioned in PD No. 1344 if only because grants of power are not to be lightly inferred or
merely implied. The only purpose of this section, as we see it, is to reserve. to the aggrieved
party such other remedies as may be provided by existing law, like a prosecution for the act
complained of under the Revised Penal Code. 6

On the competence of the Board to award damages, we find that this is part of the exclusive
power conferred upon it by PD No. 1344 to hear and decide "claims involving refund and any
other claims filed by subdivision lot or condominium unit buyers against the project owner,
developer, dealer, broker or salesman." It was therefore erroneous for the respondent to
brush aside the well-taken opinion of the Secretary of Justice that-

Such claim for damages which the subdivision/condominium buyer

may have against the owner, developer, dealer or salesman, being a
 necessary consequence of an adjudication of liability for non-
performance of contractual or statutory obligation, may be deemed
necessarily included in the phrase "claims involving refund and any
other claims" used in the aforequoted subparagraph C of Section 1 of
PD No. 1344. The phrase "any other claims" is, we believe,
sufficiently broad to include any and all claims which are incidental to
or a necessary consequence of the claims/cases specifically included
in the grant of jurisdiction to the National Housing Authority under the
subject provisions.

The same may be said with respect to claims for attorney's fees
which are recoverable either by agreement of the parties or pursuant
to Art. 2208 of the Civil Code (1) when exemplary damages are
awarded and (2) where the defendant acted in gross and evident bad
faith in refusing to satisfy the plaintiff 's plainly valid, just and
demandable claim.

xxx xxx xxx

Besides, a strict construction of the subject provisions of PD No. 1344

which would deny the HSRC the authority to adjudicate claims for
damages and for damages and for attorney's fees would result in
multiplicity of suits in that the subdivision condominium buyer who
wins a case in the HSRC and who is thereby deemed entitled to claim
damages and attorney's fees would be forced to litigate in the regular
courts for the purpose, a situation which is obviously not in the
contemplation of the law. (Emphasis supplied.)7

As a result of the growing complexity of the modern society, it has become necessary to
create more and more administrative bodies to help in the regulation of its ramified activities.
Specialized in the particular fields assigned to them, they can deal with the problems thereof
with more expertise and dispatch than can be expected from the legislature or the courts of
justice. This is the reason for the increasing vesture of quasi-legislative and quasi-judicial
powers in what is now not unreasonably called the fourth department of the government.

Statutes conferring powers on their administrative agencies must be liberally construed to

enable them to discharge their assigned duties in accordance with the legislative purpose. 8
Following this policy in Antipolo Realty Corporation v. National Housing Authority, 9 the Court
sustained the competence of the respondent administrative body, in the exercise of the
exclusive jurisdiction vested in it by PD No. 957 and PD No. 1344, to determine the rights of
the parties under a contract to sell a subdivision lot.

It remains to state that, contrary to the contention of the petitioner, the case of Tropical
Homes v. National Housing Authority 10 is not in point. We upheld in that case the
constitutionality of the procedure for appeal provided for in PD No. 1344, but we did not rule
there that the National Housing Authority and not the Regional Trial Court had exclusive
jurisdiction over the cases enumerated in Section I of the said decree. That is what we are
doing now.

It is settled that any decision rendered without jurisdiction is a total nullity and may be struck
down at any time, even on appeal before this Court. 11 The only exception is where the party
raising the issue is barred by estoppel, 12 which does not appear in the case before us. On
the contrary, the issue was raised as early as in the motion to dismiss filed in the trial court
by the petitioner, which continued to plead it in its answer and, later, on appeal to the
respondent court. We have no choice, therefore, notwithstanding the delay this decision will
entail, to nullify the proceedings in the trial court for lack of jurisdiction.

WHEREFORE, the challenged decision of the respondent court is REVERSED and the
decision of the Regional Trial Court of Quezon City in Civil Case No. Q-36119 is SET ASIDE,
without prejudice to the filing of the appropriate complaint before the Housing and Land Use
Regulatory Board. No costs.

SO ORDERED.

Narvasa, Gancayco, Griñ;o-Aquino and Medialdea, JJ., concur.

Footnotes

1 Rollo, pp. 6 & 14.

2 Tensuan, J., ponente, with Nocon and Kalalo, JJ., concurring.

3 Under E.O. No. 648 dated Feb. 7, 1981, the regulatory functions
conferred on the National Housing Authority under P.D. Nos. 957,
1216, 1344 and other related laws were transferred to the Human
Settlements Regulatory Commission, which was renamed Housing
and Land Use Regulatory Board by E.O. No. 90 dated Dec. 17, 1986.

4 Manila Railroad Co. v. Rafferty, 40 Phil. 224 (1919); Butuan

Sawmill, Inc. v. City of Butuan, 16 SCRA 758-1 Bagatsing v. Ramirez,
74 SCRA 306.

5 59 C.J., 1056-1058.

6 Article 316.

7 Min. of Justice Op. No. 271, s. 1982.

8 Cooper River Convalescent Ctr., Inc. v. Dougherty, 356 A. 2d 55,

1975.

9 153 SCRA 399.

10 152 SCRA 54.

11 Trinidad v. Yatco, 1 SCRA 866; Corominas, Jr. v. Labor Standards

Commission, 2 SCRA 721; Sebastian v. Gerardo, 2 SCRA 763;
Buena v. Sapnay, 6 SCRA 706.
12 Tijam v. Sibonghanoy, 23 SCRA 29; Philippine National Bank v.
IAC, 143 SCRA 299; Tan Boon Bee & Company, Inc. v. Judge
Jarencio, G.R. No. 41337, June 30, 1988.
SOJ v Lantion

EN BANC

G.R. No. 139465 January 18, 2000

SECRETARY OF JUSTICE, petitioner,

vs.
HON. RALPH C. LANTION, Presiding Judge, Regional Trial Court of Manila, Branch 25,
and MARK B. JIMENEZ, respondents.

MELO, J.:

The individual citizen is but a speck of particle or molecule vis-à-vis the vast and
overwhelming powers of government. His only guarantee against oppression and tyranny are
his fundamental liberties under the Bill of Rights which shield him in times of need. The Court
is now called to decide whether to uphold a citizen's basic due process rights, or the
government's ironclad duties under a treaty. The bugle sounds and this Court must once
again act as the faithful guardian of the fundamental writ.

The petition at our doorstep is cast against the following factual backdrop:

On January 13, 1977, then President Ferdinand E. Marcos issued Presidential Decree No.
1069 "Prescribing the Procedure for the Extradition of Persons Who Have Committed Crimes
in a Foreign Country". The Decree is founded on: the doctrine of incorporation under the
Constitution; the mutual concern for the suppression of crime both in the state where it was
committed and the state where the criminal may have escaped; the extradition treaty with the
Republic of Indonesia and the intention of the Philippines to enter into similar treaties with
other interested countries; and the need for rules to guide the executive department and the
courts in the proper implementation of said treaties.

On November 13, 1994, then Secretary of Justice Franklin M. Drilon, representing the
Government of the Republic of the Philippines, signed in Manila the "Extradition Treaty
Between the Government of the Republic of the Philippines and the Government of the
United States of America" (hereinafter referred to as the RP-US Extradition Treaty). The
Senate, by way of Resolution No. 11, expressed its concurrence in the ratification of said
treaty. It also expressed its concurrence in the Diplomatic Notes correcting Paragraph (5)(a),
Article 7 thereof (on the admissibility of the documents accompanying an extradition request
upon certification by the principal diplomatic or consular officer of the requested state
resident in the Requesting State).

On June 18, 1999, the Department of Justice received from the Department of Foreign
Affairs U.S. Note Verbale No. 0522 containing a request for the extradition of private
respondent Mark Jimenez to the United States. Attached to the Note Verbale were the Grand
Jury Indictment, the warrant of arrest issued by the U.S. District Court, Southern District of
Florida, and other supporting documents for said extradition. Based on the papers submitted,
private respondent appears to be charged in the United States with violation of the following
provisions of the United States Code (USC):
 A) 18 USC 371 (Conspiracy to commit offense or to defraud the United
States; two [2] counts; Maximum Penalty — 5 years on each count);

B) 26 USC 7201 (Attempt to evade or defeat tax; four [4] counts; Maximum
Penalty — 5 years on each count);

C) 18 USC 1343 (Fraud by wire, radio, or television; two [2] counts;

Maximum Penalty — 5 years on each count);

D) 18 USC 1001 (False statement or entries; six [6] counts; Maximum

Penalty — 5 years on each count);

E) 2 USC 441f (Election contributions in name of another; thirty-three [33]

counts; Maximum Penalty — less than one year).

(p. 14, Rollo.)

On the same day, petitioner issued Department Order No. 249 designating and authorizing a
panel of attorneys to take charge of and to handle the case pursuant to Section 5(1) of
Presidential Decree No. 1069. Accordingly, the panel began with the "technical evaluation
and assessment" of the extradition request and the documents in support thereof. The panel
found that the "official English translation of some documents in Spanish were not attached
to the request and that there are some other matters that needed to be addressed" (p. 15,
Rollo).

Pending evaluation of the aforestated extradition documents, private respondent, through

counsel, wrote a letter dated July 1, 1999 addressed to petitioner requesting copies of the
official extradition request from the U.S. Government, as well as all documents and papers
submitted therewith; and that he be given ample time to comment on the request after he
shall have received copies of the requested papers. Private respondent also requested that
the proceedings on the matter be held in abeyance in the meantime.

Later, private respondent requested that preliminary, he be given at least a copy of, or
access to, the request of the United States Government, and after receiving a copy of the
Diplomatic Note, a period of time to amplify on his request.

In response to private respondent's July 1, 1999 letter, petitioner, in a reply-letter dated July
13, 1999 (but received by private respondent only on August 4, 1999), denied the foregoing
requests for the following reasons:

1. We find it premature to furnish you with copies of the extradition request

and supporting documents from the United States Government, pending
evaluation by this Department of the sufficiency of the extradition documents
submitted in accordance with the provisions of the extradition treaty and our
extradition law. Article 7 of the Extradition Treaty between the Philippines and
the United States enumerates the documentary requirements and
establishes the procedures under which the documents submitted shall be
received and admitted as evidence. Evidentiary requirements under our
domestic law are also set forth in Section 4 of P.D. No. 1069.
 Evaluation by this Department of the aforementioned documents is not a
preliminary investigation nor akin to preliminary investigation of criminal
cases. We merely determine whether the procedures and requirements
under the relevant law and treaty have been complied with by the Requesting
Government. The constitutionally guaranteed rights of the accused in all
criminal prosecutions are therefore not available.

It is only after the filing of the petition for extradition when the person sought
to be extradited will be furnished by the court with copies of the petition,
request and extradition documents and this Department will not pose any
objection to a request for ample time to evaluate said documents.

2. The formal request for extradition of the United States contains grand jury
information and documents obtained through grand jury process covered by
strict secrecy rules under United States law. The United States had to secure
orders from the concerned District Courts authorizing the United States to
disclose certain grand jury information to Philippine government and law
enforcement personnel for the purpose of extradition of Mr. Jimenez. Any
further disclosure of the said information is not authorized by the United
States District Courts. In this particular extradition request the United States
Government requested the Philippine Government to prevent unauthorized
disclosure of the subject information. This Department's denial of your
request is consistent with Article 7 of the RP-US Extradition Treaty which
provides that the Philippine Government must represent the interests of the
United States in any proceedings arising out of a request for extradition. The
Department of Justice under P.D. No. 1069 is the counsel of the foreign
governments in all extradition requests.

3. This Department is not in a position to hold in abeyance proceedings in

connection with an extradition request. Article 26 of the Vienna Convention
on the Law of Treaties, to which we are a party provides that "[E]very treaty
in force is binding upon the parties to it and must be performed by them in
good faith". Extradition is a tool of criminal law enforcement and to be
effective, requests for extradition or surrender of accused or convicted
persons must be processed expeditiously.

(pp. 77-78, Rollo.)

Such was the state of affairs when, on August 6, 1999, private respondent filed with the
Regional Trial Court of the National Capital Judicial Region a petition against the Secretary
of Justice, the Secretary of Foreign Affairs, and the Director of the National Bureau of
Investigation, for mandamus (to compel herein petitioner to furnish private respondent the
extradition documents, to give him access thereto, and to afford him an opportunity to
comment on, or oppose, the extradition request, and thereafter to evaluate the request
impartially, fairly and objectively); certiorari (to set aside herein petitioner's letter dated July
13, 1999); and prohibition (to restrain petitioner from considering the extradition request and
from filing an extradition petition in court; and to enjoin the Secretary of Foreign Affairs and
the Director of the NBI from performing any act directed to the extradition of private
respondent to the United States), with an application for the issuance of a temporary
restraining order and a writ of preliminary injunction (pp. 104-105, Rollo).
The aforementioned petition was docketed as Civil Case No. 99-94684 and thereafter raffled
to Branch 25 of said regional trial court stationed in Manila which is presided over by the
Honorable Ralph C. Lantion.

After due notice to the parties, the case was heard on August 9, 1999. Petitioner, who
appeared in his own behalf, moved that he be given ample time to file a memorandum, but
the same was denied.

On August 10, 1999, respondent judge issued an order dated the previous day, disposing:

WHEREFORE, this Court hereby Orders the respondents, namely: the

Secretary of Justice, the Secretary of Foreign Affairs and the Director of the
National Bureau of Investigation, their agents and/or representatives to
maintain the status quo by refraining from committing the acts complained of;
from conducting further proceedings in connection with the request of the
United States Government for the extradition of the petitioner; from filing the
corresponding Petition with a Regional Trial court; and from performing any
act directed to the extradition of the petitioner to the United States, for a
period of twenty (20) days from service on respondents of this Order,
pursuant to Section 5, Rule 58 of the 1997 Rules of Court.

The hearing as to whether or not this Court shall issue the preliminary
injunction, as agreed upon by the counsels for the parties herein, is set on
August 17, 1999 at 9:00 o'clock in the morning. The respondents are,
likewise, ordered to file their written comment and/or opposition to the
issuance of a Preliminary Injunction on or before said date.

SO ORDERED.

(pp. 110-111, Rollo.)

Forthwith, petitioner initiated the instant proceedings, arguing that:

PUBLIC RESPONDENT ACTED WITHOUT OR IN EXCESS OF

JURISDICTION OR WITH GRAVE ABUSE OF DISCRETION AMOUNTING
TO LACK OR EXCESS OF JURISDICTION IN ISSUING THE TEMPORARY
RESTRAINING ORDER BECAUSE:

I.

BY ORDERING HEREIN PETITIONER TO REFRAIN FROM COMMITTING

THE ACTS COMPLAINED OF, I.E., TO DESIST FROM REFUSING
PRIVATE RESPONDENT ACCESS TO THE OFFICIAL EXTRADITION
REQUEST AND DOCUMENTS AND FROM DENYING PRIVATE
RESPONDENT AN OPPORTUNITY TO FILE A COMMENT ON, OR
OPPOSITION TO, THE REQUEST, THE MAIN PRAYER FOR A WRIT OF
MANDAMUS IN THE PETITION FOR MANDAMUS, CERTIORARI AND
PROHIBITION WAS, IN EFFECT, GRANTED SO AS TO CONSTITUTE AN
ADJUDICATION ON THE MERITS OF THE MANDAMUS ISSUES;

II.
 PETITIONER WAS UNQUALIFIEDLY PREVENTED FROM PERFORMING
LEGAL DUTIES UNDER THE EXTRADITION TREATY AND THE
PHILIPPINE EXTRADITION LAW;

III.

THE PETITION FOR (MANDAMUS), CERTIORARI AND PROHIBITION IS,

ON ITS FACE, FORMALLY AND SUBSTANTIALLY DEFICIENT; AND

IV.

PRIVATE RESPONDENT HAS NO RIGHT IN ESSE THAT NEEDS

PROTECTION AND ENFORCEMENT, AND WILL NOT SUFFER ANY
IRREPARABLE INJURY.

(pp. 19-20, Rollo.)

On August 17, 1999, the Court required private respondent to file his comment. Also issued,
as prayed for, was a temporary restraining order (TRO) providing:

NOW, THEREFORE, effective immediately and continuing until further orders

from this Court, You, Respondent Judge Ralph C. Lantion, your agents,
representatives or any person or persons acting in your place or stead are
hereby ORDERED to CEASE and DESIST from enforcing the assailed order
dated August 9, 1999 issued by public respondent in Civil Case No. 99-
94684.

GIVEN by the Honorable HILARIO G. DAVIDE, JR., Chief Justice, Supreme

Court of the Philippines, this 17th day of August 1999.

(pp. 120-121, Rollo.)

The case was heard on oral argument on August 31, 1999, after which the parties, as
directed, filed their respective memoranda.

From the pleadings of the opposing parties, both procedural and substantive issues are
patent. However, a review of these issues as well as the extensive arguments of both
parties, compel us to delineate the focal point raised by the pleadings: During the evaluation
stage of the extradition proceedings, is private respondent entitled to the two basic due
process rights of notice and hearing? An affirmative answer would necessarily render the
proceedings at the trial court, moot and academic (the issues of which are substantially the
same as those before us now), while a negative resolution would call for the immediate lifting
of the TRO issued by this Court dated August 24, 1999, thus allowing petitioner to fast-track
the process leading to the filing of the extradition petition with the proper regional trial court.
Corollarily, in the event that private respondent is adjudged entitled to basic due process
rights at the evaluation stage of the extradition proceedings, would this entitlement constitute
a breach of the legal commitments and obligations of the Philippine Government under the
RP-US Extradition Treaty? And assuming that the result would indeed be a breach, is there
any conflict between private respondent's basic due process rights and the provisions of the
RP-US Extradition Treaty?
The issues having transcendental importance, the Court has elected to go directly into the
substantive merits of the case, brushing aside peripheral procedural matters which concern
the proceedings in Civil Case No. 99-94684, particularly the propriety of the filing of the
petition therein, and of the issuance of the TRO of August 17, 1999 by the trial court.

To be sure, the issues call for a review of the extradition procedure. The RP-US Extradition
Treaty which was executed only on November 13, 1994, ushered into force the implementing
provisions of Presidential Decree No. 1069, also called as the Philippine Extradition Law.
Section 2(a) thereof defines extradition as "the removal of an accused from the Philippines
with the object of placing him at the disposal of foreign authorities to enable the requesting
state or government to hold him in connection with any criminal investigation directed against
him or the execution of a penalty imposed on him under the penal or criminal law of the
requesting state or government." The portions of the Decree relevant to the instant case
which involves a charged and not convicted individual, are abstracted as follows:

The Extradition Request

The request is made by the Foreign Diplomat of the Requesting State, addressed to the
Secretary of Foreign Affairs, and shall be accompanied by:

1. The original or an authentic copy of the criminal charge and the warrant of
arrest issued by the authority of the Requesting State having jurisdiction over
the matter, or some other instruments having equivalent legal force;

2. A recital of the acts for which extradition is requested, with the fullest
particulars as to the name and identity of the accused, his whereabouts in the
Philippines, if known, the acts or omissions complained of, and the time and
place of the commission of these acts;

3. The text of the applicable law or a statement of the contents of said law,
and the designation or description of the offense by the law, sufficient for
evaluation of the request; and

4. Such other documents or information in support of the request.

(Sec. 4. Presidential Decree No. 1069.)

Sec. 5 of the Presidential Decree, which sets forth the duty of the Secretary of Foreign
Affairs, pertinently provides

. . . (1) Unless it appears to the Secretary of Foreign Affairs that the request
fails to meet the requirements of this law and the relevant treaty or
convention, he shall forward the request together with the related documents
to the Secretary of Justice, who shall immediately designate and authorize an
attorney in his office to take charge of the case.

The above provision shows only too clearly that the executive authority given the task of
evaluating the sufficiency of the request and the supporting documents is the Secretary of
Foreign Affairs. What then is the coverage of this task?
In accordance with Paragraphs 2 and 3, Article 7 of the RP-US Extradition Treaty, the
executive authority must ascertain whether or not the request is supported by:

1. Documents, statements, or other types of information which describe the

identity and probable location of the person sought;

2. A statement of the facts of the offense and the procedural history of the
case;

3. A statement of the provisions of the law describing the essential elements

of the offense for which extradition is requested;

4. A statement of the provisions of law describing the punishment for the

offense;

5. A statement of the provisions of the law describing any time limit on the
prosecution or the execution of punishment for the offense;

6. Documents, statements, or other types of information specified in

paragraph 3 or paragraph 4 of said Article, as applicable.

(Paragraph 2, Article 7, Presidential Decree No. 1069.)

7. Such evidence as, according to the law of the Requested State, would
provide probable cause for his arrest and committal for trial if the offense had
been committed there;

8. A copy of the warrant or order of arrest issued by a judge or other

competent authority; and

9. A copy of the charging document.

(Paragraph 3, ibid.)

The executive authority (Secretary of Foreign Affairs) must also see to it that the
accompanying documents received in support of the request had been certified by the
principal diplomatic or consular officer of the Requested State resident in the Requesting
State (Embassy Note No. 052 from U. S. Embassy; Embassy Note No. 951309 from the
Department of Foreign Affairs).

In this light, Paragraph 3, Article 3 of the Treaty provides that "[e]xtradition shall not be
granted if the executive authority of the Requested State determines that the request is
politically motivated, or that the offense is a military offense which is not punishable under
non-military penal legislation."

The Extradition Petition

Upon a finding made by the Secretary of Foreign Affairs that the extradition request and its
supporting documents are sufficient and complete in form and substance, he shall deliver the
same to the Secretary of Justice, who shall immediately designate and authorize an attorney
in his office to take charge of the case (Paragraph [1], Section 5, P.D. No. 1069). The lawyer
designated shall then file a written petition with the proper regional trial court of the province
or city, with a prayer that the court take the extradition request under consideration
(Paragraph [2], ibid.).

The presiding judge of the regional trial court, upon receipt of the petition for extradition,
shall, as soon as practicable, issue an order summoning the prospective extraditee to appear
and to answer the petition on the day and hour fixed in the order. The judge may issue a
warrant of arrest if it appears that the immediate arrest and temporary detention of the
accused will best serve the ends of justice (Paragraph [1], Section 6, ibid.), particularly to
prevent the flight of the prospective extraditee.

The Extradition Hearing

The Extradition Law does not specifically indicate whether the extradition proceeding is
criminal, civil, or a special proceeding. Nevertheless, Paragraph [1], Section 9 thereof
provides that in the hearing of the extradition petition, the provisions of the Rules of Court,
insofar as practicable and not inconsistent with the summary nature of the proceedings, shall
apply. During the hearing, Section 8 of the Decree provides that the attorney having charge
of the case may, upon application by the Requesting State, represent the latter throughout
the proceedings.

Upon conclusion of the hearing, the court shall render a decision granting the extradition and
giving the reasons therefor upon a showing of the existence of a prima facie case, or dismiss
the petition (Section 10, ibid.). Said decision is appealable to the Court of Appeals, whose
decision shall be final and immediately executory (Section 12, ibid.). The provisions of the
Rules of Court governing appeal in criminal cases in the Court of Appeals shall apply in the
aforementioned appeal, except for the required 15-day period to file brief (Section 13, ibid.).

The trial court determines whether or not the offense mentioned in the petition is extraditable
based on the application of the dual criminality rule and other conditions mentioned in Article
2 of the RP-US Extradition Treaty. The trial court also determines whether or not the offense
for which extradition is requested is a political one (Paragraph [1], Article 3, RP-US
Extradition Treaty).1âw phi1.nêt

With the foregoing abstract of the extradition proceedings as backdrop, the following query
presents itself: What is the nature of the role of the Department of Justice at the evaluation
stage of the extradition proceedings?

A strict observance of the Extradition Law indicates that the only duty of the Secretary of
Justice is to file the extradition petition after the request and all the supporting papers are
forwarded to him by the Secretary of Foreign Affairs. It is the latter official who is authorized
to evaluate the extradition papers, to assure their sufficiency, and under Paragraph [3],
Article 3 of the Treaty, to determine whether or not the request is politically motivated, or that
the offense is a military offense which is not punishable under non-military penal legislation.
Ipso facto, as expressly provided in Paragraph [1], Section 5 of the Extradition Law, the
Secretary of Justice has the ministerial duty of filing the extradition papers.

However, looking at the factual milieu of the case before us, it would appear that there was
failure to abide by the provisions of Presidential Decree No. 1069. For while it is true that the
extradition request was delivered to the Department of Foreign Affairs on June 17, 1999, the
following day or less than 24 hours later, the Department of Justice received the request,
apparently without the Department of Foreign Affairs discharging its duty of thoroughly
evaluating the same and its accompanying documents. The statement of an assistant
secretary at the Department of Foreign Affairs that his Department, in this regard, is merely
acting as a post office, for which reason he simply forwarded the request to the Department
of Justice, indicates the magnitude of the error of the Department of Foreign Affairs in taking
lightly its responsibilities. Thereafter, the Department of Justice took it upon itself to
determine the completeness of the documents and to evaluate the same to find out whether
they comply with the requirements laid down in the Extradition Law and the RP-US
Extradition Treaty. Petitioner ratiocinates in this connection that although the Department of
Justice had no obligation to evaluate the extradition documents, the Department also had to
go over them so as to be able to prepare an extradition petition (tsn, August 31, 1999, pp.
24-25). Notably, it was also at this stage where private respondent insisted on the following;
(1) the right to be furnished the request and the supporting papers; (2) the right to be heard
which consists in having a reasonable period of time to oppose the request, and to present
evidence in support of the opposition; and (3) that the evaluation proceedings be held in
abeyance pending the filing of private respondent's opposition to the request.

The two Departments seem to have misread the scope of their duties and authority, one
abdicating its powers and the other enlarging its commission. The Department of Foreign
Affairs, moreover, has, through the Solicitor General, filed a manifestation that it is adopting
the instant petition as its own, indirectly conveying the message that if it were to evaluate the
extradition request, it would not allow private respondent to participate in the process of
evaluation.

Plainly then, the record cannot support the presumption of regularity that the Department of
Foreign Affairs thoroughly reviewed the extradition request and supporting documents and
that it arrived at a well-founded judgment that the request and its annexed documents satisfy
the requirements of law. The Secretary of Justice, eminent as he is in the field of law, could
not privately review the papers all by himself. He had to officially constitute a panel of
attorneys. How then could the DFA Secretary or his undersecretary, in less than one day,
make the more authoritative determination?

The evaluation process, just like the extradition proceedings proper, belongs to a class by
itself. It is sui generis. It is not a criminal investigation, but it is also erroneous to say that it is
purely an exercise of ministerial functions. At such stage, the executive authority has the
power: (a) to make a technical assessment of the completeness and sufficiency of the
extradition papers; (b) to outrightly deny the request if on its face and on the face of the
supporting documents the crimes indicated are not extraditable; and (c) to make a
determination whether or not the request is politically motivated, or that the offense is a
military one which is not punishable under non-military penal legislation (tsn, August 31,
1999, pp. 28-29; Article 2 & and Paragraph [3], Article 3, RP-US Extradition Treaty). Hence,
said process may be characterized as an investigative or inquisitorial process in contrast to a
proceeding conducted in the exercise of an administrative body's quasi-judicial power.

In administrative law, a quasi-judicial proceeding involves: (a) taking and evaluation of

evidence; (b) determining facts based upon the evidence presented; and (c) rendering an
order or decision supported by the facts proved (De Leon, Administrative Law: Text and
Cases, 1993 ed., p. 198, citing Morgan vs. United States, 304 U.S. 1). Inquisitorial power,
which is also known as examining or investigatory power, is one or the determinative powers
of an administrative body which better enables it to exercise its quasi-judicial authority (Cruz,
Phil. Administrative Law, 1996 ed., p. 26). This power allows the administrative body to
inspect the records and premises, and investigate the activities, of persons or entities coming
under its jurisdiction (Ibid., p. 27), or to require disclosure of information by means or
accounts, records, reports, testimony of witnesses, production of documents, or otherwise
(De Leon, op. cit., p. 64).

The power of investigation consists in gathering, organizing, and analyzing evidence, which
is a useful aid or tool in an administrative agency's performance of its rule-making or quasi-
judicial functions. Notably, investigation is indispensable to prosecution.

In Ruperto v. Torres (100 Phil. 1098 [1957], unreported), the Court had occasion to rule on
the functions of an investigatory body with the sole power of investigation. It does not
exercise judicial functions and its power is limited to investigating the facts and making
findings in respect thereto. The Court laid down the test of determining whether an
administrative body is exercising judicial functions or merely investigatory functions:
Adjudication signifies the exercise of power and authority to adjudicate upon the rights and
obligations of the parties before it. Hence, if the only purpose for investigation is to evaluate
evidence submitted before it based on the facts and circumstances presented to it, and if the
agency is not authorized to make a final pronouncement affecting the parties, then there is
an absence of judicial discretion and judgment.

The above description in Ruperto applies to an administrative body authorized to evaluate

extradition documents. The body has no power to adjudicate in regard to the rights and
obligations of both the Requesting State and the prospective extraditee. Its only power is to
determine whether the papers comply with the requirements of the law and the treaty and,
therefore, sufficient to be the basis of an extradition petition. Such finding is thus merely
initial and not final. The body has no power to determine whether or not the extradition
should be effected. That is the role of the court. The body's power is limited to an initial
finding of whether or not the extradition petition can be filed in court.

It is to be noted, however, that in contrast to ordinary investigations, the evaluation

procedure is characterized by certain peculiarities. Primarily, it sets into motion the wheels of
the extradition process. Ultimately, it may result in the deprivation of liberty of the prospective
extraditee. This deprivation can be effected at two stages: First, the provisional arrest of the
prospective extraditee pending the submission of the request. This is so because the Treaty
provides that in case of urgency, a contracting party may request the provisional arrest of the
person sought pending presentation of the request (Paragraph [1], Article 9, RP-US
Extradition Treaty), but he shall be automatically discharged after 60 days if no request is
submitted (Paragraph 4). Presidential Decree No. 1069 provides for a shorter period of 20
days after which the arrested person could be discharged (Section 20[d]). Logically, although
the Extradition Law is silent on this respect, the provisions only mean that once a request is
forwarded to the Requested State, the prospective extraditee may be continuously detained,
or if not, subsequently rearrested (Paragraph [5], Article 9, RP-US Extradition Treaty), for he
will only be discharged if no request is submitted. Practically, the purpose of this detention is
to prevent his possible flight from the Requested State. Second, the temporary arrest of the
prospective extraditee during the pendency of the extradition petition in court (Section 6,
Presidential Decree No. 1069).

Clearly, there is an impending threat to a prospective extraditee's liberty as early as during

the evaluation stage. It is not only an imagined threat to his liberty, but a very imminent one.

Because of these possible consequences, we conclude that the evaluation process is akin to
an administrative agency conducting an investigative proceeding, the consequences of
which are essentially criminal since such technical assessment sets off or commences the
procedure for, and ultimately, the deprivation of liberty of a prospective extraditee. As
described by petitioner himself, this is a "tool" for criminal law enforcement (p. 78, Rollo). In
essence, therefore, the evaluation process partakes of the nature of a criminal investigation.
In a number of cases, we had occasion to make available to a respondent in an
administrative case or investigation certain constitutional rights that are ordinarily available
only in criminal prosecutions. Further, as pointed out by Mr. Justice Mendoza during the oral
arguments, there are rights formerly available only at the trial stage that had been advanced
to an earlier stage in the proceedings, such as the right to counsel and the right against self-
incrimination (tsn, August 31, 1999, p. 135; Escobedo vs. Illinois, 378 U.S. 478; Gideon vs.
Wainwright, 372 U.S. 335; Miranda vs. Arizona, 384 U.S. 436).

In Pascual v. Board of Medical Examiners (28 SCRA 344 [1969]), we held that the right
against self-incrimination under Section 17, Article III of the 1987 Constitution which is
ordinarily available only in criminal prosecutions, extends to administrative proceedings
which possess a criminal or penal aspect, such as an administrative investigation of a
licensed physician who is charged with immorality, which could result in his loss of the
privilege to practice medicine if found guilty. The Court, citing the earlier case of Cabal vs.
Kapunan (6 SCRA 1059 [1962]), pointed out that the revocation of one's license as a
medical practitioner, is an even greater deprivation than forfeiture of property.

Cabal vs. Kapunan (supra) involved an administrative charge of unexplained wealth against
a respondent which was filed under Republic Act No. 1379, or the Anti-Graft Law. Again, we
therein ruled that since the investigation may result in forfeiture of property, the
administrative proceedings are deemed criminal or penal, and such forfeiture partakes the
nature of a penalty. There is also the earlier case of Almeda, Sr. vs. Perez (5 SCRA 970
[1962]), where the Court, citing American jurisprudence, laid down the test to determine
whether a proceeding is civil or criminal: If the proceeding is under a statute such that if an
indictment is presented the forfeiture can be included in the criminal case, such proceeding
is criminal in nature, although it may be civil in form; and where it must be gathered from the
statute that the action is meant to be criminal in its nature, it cannot be considered as civil. If,
however, the proceeding does not involve the conviction of the wrongdoer for the offense
charged, the proceeding is civil in nature.

The cases mentioned above refer to an impending threat of deprivation of one's property or
property right. No less is this true, but even more so in the case before us, involving as it
does the possible deprivation of liberty, which, based on the hierarchy of constitutionally
protected rights, is placed second only to life itself and enjoys precedence over property, for
while forfeited property can be returned or replaced, the time spent in incarceration is
irretrievable and beyond recompense.

By comparison, a favorable action in an extradition request exposes a person to eventual

extradition to a foreign country, thus saliently exhibiting the criminal or penal aspect of the
process. In this sense, the evaluation procedure is akin to a preliminary investigation since
both procedures may have the same result — the arrest and imprisonment of the respondent
or the person charged. Similar to the evaluation stage of extradition proceedings, a
preliminary investigation, which may result in the filing of an information against the
respondent, can possibly lead to his arrest, and to the deprivation of his liberty.

Petitioner's reliance on Wright vs. Court of Appeals (235 SCRA 241 [1992]) (p. 8, petitioner's
Memorandum) that the extradition treaty is neither a piece of criminal legislation nor a
criminal procedural statute is not well-taken. Wright is not authority for petitioner's conclusion
that his preliminary processing is not akin to a preliminary investigation. The characterization
of a treaty in Wright was in reference to the applicability of the prohibition against an ex post
facto law. It had nothing to do with the denial of the right to notice, information, and hearing.

As early as 1884, the United States Supreme Court ruled that "any legal proceeding
enforced by public authority, whether sanctioned by age or custom, or newly devised in the
discretion of the legislative power, in furtherance of the general public good, which regards
and preserved these principles of liberty and justice, must be held to be due process of law"
(Hurtado vs. California, 110 U.S. 516). Compliance with due process requirements cannot be
deemed non-compliance with treaty commitments.

The United States and the Philippines share a mutual concern about the suppression and
punishment of crime in their respective jurisdictions. At the same time, both States accord
common due process protection to their respective citizens.

The due process clauses in the American and Philippine Constitutions are not only worded in
exactly identical language and terminology, but more importantly, they are alike in what their
respective Supreme Courts have expounded as the spirit with which the provisions are
informed and impressed, the elasticity in their interpretation, their dynamic and resilient
character which make them capable of meeting every modern problem, and their having
been designed from earliest time to the present to meet the exigencies of an undefined and
expanding future. The requirements of due process are interpreted in both the United States
and the Philippines as not denying to the law the capacity for progress and improvement.
Toward this effect and in order to avoid the confines of a legal straitjacket, the courts instead
prefer to have the meaning of the due process clause "gradually ascertained by the process
of inclusion and exclusion in the course of the decisions of cases as they arise" (Twining vs.
New Jersey, 211 U.S. 78). Capsulized, it refers to "the embodiment of the sporting idea of
fair play" (Ermita-Malate Hotel and Motel Owner's Association vs. City Mayor of Manila, 20
SCRA 849 [1967]). It relates to certain immutable principles of justice which inhere in the
very idea of free government (Holden vs. Hardy, 169 U.S. 366).

Due process is comprised of two components — substantive due process which requires the
intrinsic validity of the law in interfering with the rights of the person to his life, liberty, or
property, and procedural due process which consists of the two basic rights of notice and
hearing, as well as the guarantee of being heard by an impartial and competent tribunal
(Cruz, Constitutional Law, 1993 Ed., pp. 102-106).

True to the mandate of the due process clause, the basic rights of notice and hearing
pervade not only in criminal and civil proceedings, but in administrative proceedings as well.
Non-observance of these rights will invalidate the proceedings. Individuals are entitled to be
notified of any pending case affecting their interests, and upon notice, they may claim the
right to appear therein and present their side and to refute the position of the opposing
parties (Cruz, Phil. Administrative Law, 1996 ed., p. 64).

In a preliminary investigation which is an administrative investigatory proceeding, Section 3,

Rule 112 of the Rules of Court guarantees the respondent's basic due process rights,
granting him the right to be furnished a copy of the complaint, the affidavits, and other
supporting documents, and the right to submit counter-affidavits and other supporting
documents within ten days from receipt thereof. Moreover, the respondent shall have the
right to examine all other evidence submitted by the complainant.

These twin rights may, however, be considered dispensable in certain instances, such as:
 1. In proceeding where there is an urgent need for immediate action, like the
summary abatement of a nuisance per se (Article 704, Civil Code), the
preventive suspension of a public servant facing administrative charges
(Section 63, Local Government Code, B.P. Blg. 337), the padlocking of filthy
restaurants or theaters showing obscene movies or like establishments which
are immediate threats to public health and decency, and the cancellation of a
passport of a person sought for criminal prosecution;

2. Where there is tentativeness of administrative action, that is, where the

respondent is not precluded from enjoying the right to notice and hearing at a
later time without prejudice to the person affected, such as the summary
distraint and levy of the property of a delinquent taxpayer, and the
replacement of a temporary appointee; and

3. Where the twin rights have previously been offered but the right to
exercise them had not been claimed.

Applying the above principles to the case at bar, the query may be asked: Does the
evaluation stage of the extradition proceedings fall under any of the described situations
mentioned above?

Let us take a brief look at the nature of American extradition proceedings which are quite
noteworthy considering that the subject treaty involves the U.S. Government.

American jurisprudence distinguishes between interstate rendition or extradition which is

based on the Extradition Clause in the U.S. Constitution (Art. IV, §2 cl 2), and international
extradition proceedings. In interstate rendition or extradition, the governor of the asylum state
has the duty to deliver the fugitive to the demanding state. The Extradition Clause and the
implementing statute are given a liberal construction to carry out their manifest purpose,
which is to effect the return as swiftly as possible of persons for trial to the state in which they
have been charged with crime (31A Am Jur 2d 754-755). In order to achieve extradition of an
alleged fugitive, the requisition papers or the demand must be in proper form, and all the
elements or jurisdictional facts essential to the extradition must appear on the face of the
papers, such as the allegation that the person demanded was in the demanding state at the
time the offense charged was committed, and that the person demanded is charged with the
commission of the crime or that prosecution has been begun in the demanding state before
some court or magistrate (35 C.J.S. 406-407). The extradition documents are then filed with
the governor of the asylum state, and must contain such papers and documents prescribed
by statute, which essentially include a copy of the instrument charging the person demanded
with a crime, such as an indictment or an affidavit made before a magistrate. Statutory
requirements with respect to said charging instrument or papers are mandatory since said
papers are necessary in order to confer jurisdiction on the government of the asylum state to
effect extradition (35 C.J.S. 408-410). A statutory provision requiring duplicate copies of the
indictment, information, affidavit, or judgment of conviction or sentence and other
instruments accompanying the demand or requisitions be furnished and delivered to the
fugitive or his attorney is directory. However, the right being such a basic one has been held
to be a right mandatory on demand (Ibid., p. 410, citing Ex parte Moore, 256 S.W. 2d 103,
158 Tex. Cr. 407 and Ex parte Tucker, Cr., 324, S.W.2d 853).

In international proceedings, extradition treaties generally provide for the presentation to the
executive authority of the Requested State of a requisition or demand for the return of the
alleged offender, and the designation of the particular officer having authority to act in behalf
of the demanding nation (31A Am Jur 2d 815).

In petitioner's memorandum filed on September 15, 1999, he attached thereto a letter dated
September 13, 1999 from the Criminal Division of the U.S. Department of Justice,
summarizing the U.S. extradition procedures and principles, which are basically governed by
a combination of treaties (with special reference to the RP-US Extradition Treaty), federal
statutes, and judicial decisions, to wit:

1. All requests for extradition are transmitted through the diplomatic channel.
In urgent cases, requests for the provincial arrest of an individual may be
made directly by the Philippine Department of Justice to the U.S. Department
of Justice, and vice-versa. In the event of a provisional arrest, a formal
request for extradition is transmitted subsequently through the diplomatic
channel.

2. The Department of State forwards the incoming Philippine extradition

request to the Department of Justice. Before doing so, the Department of
State prepares a declaration confirming that a formal request has been
made, that the treaty is in full force and effect, that under Article 17 thereof
the parties provide reciprocal legal representation in extradition proceedings,
that the offenses are covered as extraditable offenses under Article 2 thereof,
and that the documents have been authenticated in accordance with the
federal statute that ensures admissibility at any subsequent extradition
hearing.

3. A judge or magistrate judge is authorized to issue a warrant for the arrest

of the prospective extraditee (18 U.S.C. §3184). Said judge or magistrate is
authorized to hold a hearing to consider the evidence offered in support of
the extradition request (Ibid.)

4. At the hearing, the court must determine whether the person arrested is
extraditable to the foreign country. The court must also determine that (a) it
has jurisdiction over the defendant and jurisdiction to conduct the hearing; (b)
the defendant is being sought for offenses for which the applicable treaty
permits extradition; and (c) there is probable cause to believe that the
defendant is the person sought and that he committed the offenses charged
(Ibid.)

5. The judge or magistrate judge is vested with jurisdiction to certify

extraditability after having received a "complaint made under oath, charging
any person found within his jurisdiction" with having committed any of the
crimes provided for by the governing treaty in the country requesting
extradition (Ibid.) [In this regard, it is noted that a long line of American
decisions pronounce that international extradition proceedings partake of the
character of a preliminary examination before a committing magistrate, rather
than a trial of the guilt or innocence of the alleged fugitive (31A Am Jur 2d
826).]

6. If the court decides that the elements necessary for extradition are
present, it incorporates its determinations in factual findings and conclusions
of law and certifies the person's extraditability. The court then forwards this
 certification of extraditability to the Department of State for disposition by the
Secretary of State. The ultimate decision whether to surrender an individual
rests with the Secretary of State (18 U.S.C. §3186).

7. The subject of an extradition request may not litigate questions concerning

the motives of the requesting government in seeking his extradition.
However, a person facing extradition may present whatever information he
deems relevant to the Secretary of State, who makes the final determination
whether to surrender an individual to the foreign government concerned.

From the foregoing, it may be observed that in the United States, extradition begins and
ends with one entity — the Department of State — which has the power to evaluate the
request and the extradition documents in the beginning, and, in the person of the Secretary
of State, the power to act or not to act on the court's determination of extraditability. In the
Philippine setting, it is the Department of Foreign Affairs which should make the initial
evaluation of the request, and having satisfied itself on the points earlier mentioned (see pp.
10-12), then forwards the request to the Department of Justice for the preparation and filing
of the petition for extradition. Sadly, however, the Department of Foreign Affairs, in the
instant case, perfunctorily turned over the request to the Department of Justice which has
taken over the task of evaluating the request as well as thereafter, if so warranted, preparing,
filing, and prosecuting the petition for extradition.

Private respondent asks what prejudice will be caused to the U.S. Government should the
person sought to be extradited be given due process rights by the Philippines in the
evaluation stage. He emphasizes that petitioner's primary concern is the possible delay in
the evaluation process.

We agree with private respondent's citation of an American Supreme Court ruling:

The establishment of prompt efficacious procedures to achieve legitimate

state ends is a proper state interest worthy of cognizance in constitutional
adjudication. But the Constitution recognizes higher values than speed and
efficiency. Indeed, one might fairly say of the Bill of Rights in general, and the
Due Process Clause, in particular, that they were designed to protect the
fragile values of a vulnerable citizenry from the overbearing concern for
efficiency and efficacy that may characterize praiseworthy government
officials no less, and perhaps more, than mediocre ones.

(Stanley vs. Illinois, 404 U.S. 645, 656)

The United States, no doubt, shares the same interest as the Philippine Government that no
right — that of liberty — secured not only by the Bills of Rights of the Philippines Constitution
but of the United States as well, is sacrificed at the altar of expediency.

(pp. 40-41, Private Respondent's Memorandum.)

In the Philippine context, this Court's ruling is invoked:

One of the basic principles of the democratic system is that where the rights
of the individual are concerned, the end does not justify the means. It is not
enough that there be a valid objective; it is also necessary that the means
employed to pursue it be in keeping with the Constitution. Mere expediency
 will not excuse constitutional shortcuts. There is no question that not even
the strongest moral conviction or the most urgent public need, subject only to
a few notable exceptions, will excuse the bypassing of an individual's rights.
It is no exaggeration to say that a person invoking a right guaranteed under
Article III of the Constitution is a majority of one even as against the rest of
the nation who would deny him that right (Association of Small Landowners
in the Philippines, Inc. vs. Secretary of Agrarian Reform, 175 SCRA 343,
375-376 [1989]).

There can be no dispute over petitioner's argument that extradition is a tool of criminal law
enforcement. To be effective, requests for extradition or the surrender of accused or
convicted persons must be processed expeditiously. Nevertheless, accelerated or fast-
tracked proceedings and adherence to fair procedures are, however, not always
incompatible. They do not always clash in discord. Summary does not mean precipitous
haste. It does not carry a disregard of the basic principles inherent in "ordered liberty."

Is there really an urgent need for immediate action at the evaluation stage? At that point,
there is no extraditee yet in the strict sense of the word. Extradition may or may not occur. In
interstate extradition, the governor of the asylum state may not, in the absence of mandatory
statute, be compelled to act favorably (37 C.J.S. 387) since after a close evaluation of the
extradition papers, he may hold that federal and statutory requirements, which are
significantly jurisdictional, have not been met (31 Am Jur 2d 819). Similarly, under an
extradition treaty, the executive authority of the requested state has the power to deny the
behest from the requesting state. Accordingly, if after a careful examination of the extradition
documents the Secretary of Foreign Affairs finds that the request fails to meet the
requirements of the law and the treaty, he shall not forward the request to the Department of
Justice for the filing of the extradition petition since non-compliance with the aforesaid
requirements will not vest our government with jurisdiction to effect the extradition.

In this light, it should be observed that the Department of Justice exerted notable efforts in
assuring compliance with the requirements of the law and the treaty since it even informed
the U.S. Government of certain problems in the extradition papers (such as those that are in
Spanish and without the official English translation, and those that are not properly
authenticated). In fact, petitioner even admits that consultation meetings are still supposed to
take place between the lawyers in his Department and those from the U.S. Justice
Department. With the meticulous nature of the evaluation, which cannot just be completed in
an abbreviated period of time due to its intricacies, how then can we say that it is a
proceeding that urgently necessitates immediate and prompt action where notice and
hearing can be dispensed with?

Worthy of inquiry is the issue of whether or not there is tentativeness of administrative action.
Is private respondent precluded from enjoying the right to notice and hearing at a later time
without prejudice to him? Here lies the peculiarity and deviant characteristic of the evaluation
procedure. On one hand there is yet no extraditee, but ironically on the other, it results in an
administrative if adverse to the person involved, may cause his immediate incarceration. The
grant of the request shall lead to the filing of the extradition petition in court. The "accused"
(as Section 2[c] of Presidential Decree No. 1069 calls him), faces the threat of arrest, not
only after the extradition petition is filed in court, but even during the evaluation proceeding
itself by virtue of the provisional arrest allowed under the treaty and the implementing law.
The prejudice to the "accused" is thus blatant and manifest.
Plainly, the notice and hearing requirements of administrative due process cannot be
dispensed with and shelved aside.

Apart from the due process clause of the Constitution, private respondent likewise invokes
Section 7 of Article III which reads:

Sec. 7. The right of the people to information on matters of public concern

shall be recognized. Access to official records, and to documents and papers
pertaining to official acts, transactions, or decisions, as well as to government
research data used as basis for policy development, shall be afforded the
citizen, subject to such limitations as may be provided by law.

The above provision guarantees political rights which are available to citizens of the
Philippines, namely: (1) the right to information on matters of public concern, and (2) the
corollary right of access to official records documents. The general right guaranteed by said
provision is the right to information on matters of public concern. In its implementation, the
right of access to official records is likewise conferred. These cognate or related rights are
"subject to limitations as may be provided by law" (Bernas, The 1987 Phil. Constitution A
Reviewer-Primer, 1997 ed., p. 104) and rely on the premise that ultimately it is an informed
and critical public opinion which alone can protect the values of democratic government
(Ibid.).

Petitioner argues that the matters covered by private respondent's letter-request dated July
1, 1999 do not fall under the guarantee of the foregoing provision since the matters
contained in the documents requested are not of public concern. On the other hand, private
respondent argues that the distinction between matters vested with public interest and
matters which are of purely private interest only becomes material when a third person, who
is not directly affected by the matters requested, invokes the right to information. However, if
the person invoking the right is the one directly affected thereby, his right to information
becomes absolute.

The concept of matters of public concerns escapes exact definition. Strictly speaking, every
act of a public officer in the conduct of the governmental process is a matter of public
concern (Bernas, The 1987 Constitution of the Republic of the Philippines, 1996 ed., p. 336).
This concept embraces a broad spectrum of subjects which the public may want to know,
either because these directly affect their lives or simply because such matters arouse the
interest of an ordinary citizen (Legaspi v. Civil Service Commission, 150 SCRA 530 [1987]).
Hence, the real party in interest is the people and any citizen has "standing".

When the individual himself is involved in official government action because said action has
a direct bearing on his life, and may either cause him some kind of deprivation or injury, he
actually invokes the basic right to be notified under Section 1 of the Bill of Rights and not
exactly the right to information on matters of public concern. As to an accused in a criminal
proceeding, he invokes Section 14, particularly the right to be informed of the nature and
cause of the accusation against him.

The right to information is implemented by the right of access to information within the control
of the government (Bernas, The 1987 Constitution of the Republic of the Philippines, 1996
ed., p. 337). Such information may be contained in official records, and in documents and
papers pertaining to official acts, transactions, or decisions.
In the case at bar, the papers requested by private respondent pertain to official government
action from the U.S. Government. No official action from our country has yet been taken.
Moreover, the papers have some relation to matters of foreign relations with the U.S.
Government. Consequently, if a third party invokes this constitutional provision, stating that
the extradition papers are matters of public concern since they may result in the extradition
of a Filipino, we are afraid that the balance must be tilted, at such particular time, in favor of
the interests necessary for the proper functioning of the government. During the evaluation
procedure, no official governmental action of our own government has as yet been done;
hence the invocation of the right is premature. Later, and in contrast, records of the
extradition hearing would already fall under matters of public concern, because our
government by then shall have already made an official decision to grant the extradition
request. The extradition of a fellow Filipino would be forthcoming.

We now pass upon the final issue pertinent to the subject matter of the instant controversy:
Would private respondent's entitlement to notice and hearing during the evaluation stage of
the proceedings constitute a breach of the legal duties of the Philippine Government under
the RP-Extradition Treaty? Assuming the answer is in the affirmative, is there really a conflict
between the treaty and the due process clause in the Constitution?

First and foremost, let us categorically say that this is not the proper time to pass upon the
constitutionality of the provisions of the RP-US Extradition Treaty nor the Extradition Law
implementing the same. We limit ourselves only to the effect of the grant of the basic rights
of notice and hearing to private respondent on foreign relations.

The rule of pacta sunt servanda, one of the oldest and most fundamental maxims of
international law, requires the parties to a treaty to keep their agreement therein in good
faith. The observance of our country's legal duties under a treaty is also compelled by
Section 2, Article II of the Constitution which provides that "[t]he Philippines renounces war
as an instrument of national policy, adopts the generally accepted principles of international
law as part of the law of the land, and adheres to the policy of peace, equality, justice,
freedom, cooperation and amity with nations." Under the doctrine of incorporation, rules of
international law form part of the law of the and land no further legislative action is needed to
make such rules applicable in the domestic sphere (Salonga & Yap, Public International Law,
1992 ed., p. 12).

The doctrine of incorporation is applied whenever municipal tribunals (or local courts) are
confronted with situations in which there appears to be a conflict between a rule of
international law and the provisions of the constitution or statute of the local state. Efforts
should first be exerted to harmonize them, so as to give effect to both since it is to be
presumed that municipal law was enacted with proper regard for the generally accepted
principles of international law in observance of the observance of the Incorporation Clause in
the above-cited constitutional provision (Cruz, Philippine Political Law, 1996 ed., p. 55). In a
situation, however, where the conflict is irreconcilable and a choice has to be made between
a rule of international law and municipal law, jurisprudence dictates that municipal law should
be upheld by the municipal courts (Ichong vs. Hernandez, 101 Phil. 1155 [1957]; Gonzales
vs. Hechanova, 9 SCRA 230 [1963]; In re: Garcia, 2 SCRA 984 [1961]) for the reason that
such courts are organs of municipal law and are accordingly bound by it in all circumstances
(Salonga & Yap, op. cit., p. 13). The fact that international law has been made part of the law
of the land does not pertain to or imply the primacy of international law over national or
municipal law in the municipal sphere. The doctrine of incorporation, as applied in most
countries, decrees that rules of international law are given equal standing with, but are not
superior to, national legislative enactments. Accordingly, the principle lex posterior derogat
priori takes effect — a treaty may repeal a statute and a statute may repeal a treaty. In states
where the constitution is the highest law of the land, such as the Republic of the Philippines,
both statutes and treaties may be invalidated if they are in conflict with the constitution (Ibid.).

In the case at bar, is there really a conflict between international law and municipal or
national law? En contrario, these two components of the law of the land are not pined
against each other. There is no occasion to choose which of the two should be upheld.
Instead, we see a void in the provisions of the RP-US Extradition Treaty, as implemented by
Presidential Decree No. 1069, as regards the basic due process rights of a prospective
extraditee at the evaluation stage of extradition proceedings. From the procedures earlier
abstracted, after the filing of the extradition petition and during the judicial determination of
the propriety of extradition, the rights of notice and hearing are clearly granted to the
prospective extraditee. However, prior thereto, the law is silent as to these rights. Reference
to the U.S. extradition procedures also manifests this silence.

Petitioner interprets this silence as unavailability of these rights. Consequently, he describes

the evaluation procedure as an "ex parte technical assessment" of the sufficiency of the
extradition request and the supporting documents.

We disagree.

In the absence of a law or principle of law, we must apply the rules of fair play. An application
of the basic twin due process rights of notice and hearing will not go against the treaty or the
implementing law. Neither the Treaty nor the Extradition Law precludes these rights from a
prospective extraditee. Similarly, American jurisprudence and procedures on extradition pose
no proscription. In fact, in interstate extradition proceedings as explained above, the
prospective extraditee may even request for copies of the extradition documents from the
governor of the asylum state, and if he does, his right to be supplied the same becomes a
demandable right (35 C.J.S. 410).

Petitioner contends that the United States requested the Philippine Government to prevent
unauthorized disclosure of confidential information. Hence, the secrecy surrounding the
action of the Department of Justice Panel of Attorneys. The confidentiality argument is,
however, overturned by petitioner's revelation that everything it refuses to make available at
this stage would be obtainable during trial. The Department of Justice states that the U.S.
District Court concerned has authorized the disclosure of certain grand jury information. If the
information is truly confidential, the veil of secrecy cannot be lifted at any stage of the
extradition proceedings. Not even during trial.

A libertarian approach is thus called for under the premises.

One will search in vain the RP-US Extradition Treaty, the Extradition Law, as well as
American jurisprudence and procedures on extradition, for any prohibition against the
conferment of the two basic due process rights of notice and hearing during the evaluation
stage of the extradition proceedings. We have to consider similar situations in jurisprudence
for an application by analogy.

Earlier, we stated that there are similarities between the evaluation process and a
preliminary investigation since both procedures may result in the arrest of the respondent or
the prospective extraditee. In the evaluation process, a provisional arrest is even allowed by
the Treaty and the Extradition Law (Article 9, RP-US Extradition Treaty; Sec. 20, Presidential
Decree No. 1069). Following petitioner's theory, because there is no provision of its
availability, does this imply that for a period of time, the privilege of the writ of habeas corpus
is suspended, despite Section 15, Article III of the Constitution which states that "[t]he
privilege of the writ or habeas corpus shall not be suspended except in cases of invasion or
rebellion when the public safety requires it"? Petitioner's theory would also infer that bail is
not available during the arrest of the prospective extraditee when the extradition petition has
already been filed in court since Presidential Decree No. 1069 does not provide therefor,
notwithstanding Section 13, Article III of the Constitution which provides that "[a]ll persons,
except those charged with offenses punishable by reclusion perpetua when evidence of guilt
is strong, shall, before conviction, be bailable by sufficient sureties, or be released on
recognizance as may be provided by law. The right to bail shall not be impaired even when
the privilege of the writ of habeas corpus is suspended. . ." Can petitioner validly argue that
since these contraventions are by virtue of a treaty and hence affecting foreign relations, the
aforestated guarantees in the Bill of Rights could thus be subservient thereto?

The basic principles of administrative law instruct us that "the essence of due process in
administrative proceeding is an opportunity to explain one's side or an opportunity to seek
reconsideration of the actions or ruling complained of (Mirano vs. NLRC, 270 SCRA 96
[1997]; Padilla vs. NLRC, 273 SCRA 457 [1997]; PLDT vs. NLRC, 276 SCRA 1 [1997];
Helpmate, Inc. vs. NLRC, 276 SCRA 315 [1997]; Aquinas School vs. Magnaye, 278 SCRA
602 [1997]; Jamer vs. NLRC, 278 SCRA 632 [1997]). In essence, procedural due process
refers to the method or manner by which the law is enforced (Corona vs. United Harbor
Pilots Association of the Phils., 283 SCRA 31 [1997]). This Court will not tolerate the least
disregard of constitutional guarantees in the enforcement of a law or treaty. Petitioner's fears
that the Requesting State may have valid objections to the Requested State's non-
performance of its commitments under the Extradition Treaty are insubstantial and should
not be given paramount consideration.

How then do we implement the RP-US Extradition Treaty? Do we limit ourselves to the four
corners of Presidential Decree No. 1069?

Of analogous application are the rulings in Government Service Insurance System vs. Court
of Appeals (201 SCRA 661 [1991]) and Go vs. National Police Commission (271 SCRA 447
[1997]) where we ruled that in summary proceedings under Presidential Decree No. 807
(Providing for the Organization of the Civil Service Commission in Accordance with
Provisions of the Constitution, Prescribing its Powers and Functions and for Other
Purposes), and Presidential Decree No. 971 (Providing Legal Assistance for Members of the
Integrated National Police who may be charged for Service-Connected Offenses and
Improving the Disciplinary System in the Integrated National Police, Appropriating Funds
Therefor and for other purposes), as amended by Presidential Decree No. 1707, although
summary dismissals may be effected without the necessity of a formal investigation, the
minimum requirements of due process still operate. As held in GSIS vs. Court of Appeals:

. . . [I]t is clear to us that what the opening sentence of Section 40 is saying is

that an employee may be removed or dismissed even without formal
investigation, in certain instances. It is equally clear to us that an employee
must be informed of the charges preferred against him, and that the normal
way by which the employee is so informed is by furnishing him with a copy of
the charges against him. This is a basic procedural requirement that a statute
cannot dispense with and still remain consistent with the constitutional
provision on due process. The second minimum requirement is that the
employee charged with some misfeasance or malfeasance must have a
reasonable opportunity to present his side of the matter, that is to say, his
defenses against the charges levelled against him and to present evidence in
support of his defenses. . . .
 (at p. 671)

Said summary dismissal proceedings are also non-litigious in nature, yet we upheld the due
process rights of the respondent.

In the case at bar, private respondent does not only face a clear and present danger of loss
of property or employment, but of liberty itself, which may eventually lead to his forcible
banishment to a foreign land. The convergence of petitioner's favorable action on the
extradition request and the deprivation of private respondent's liberty is easily
comprehensible.

We have ruled time and again that this Court's equity jurisdiction, which is aptly described as
"justice outside legality," may be availed of only in the absence of, and never against,
statutory law or judicial pronouncements (Smith Bell & Co., Inc. vs. Court of Appeals, 267
SCRA 530 [1997]; David-Chan vs. Court of Appeals, 268 SCRA 677 [1997]). The
constitutional issue in the case at bar does not even call for "justice outside legality," since
private respondent's due process rights, although not guaranteed by statute or by treaty, are
protected by constitutional guarantees. We would not be true to the organic law of the land if
we choose strict construction over guarantees against the deprivation of liberty. That would
not be in keeping with the principles of democracy on which our Constitution is premised.

Verily, as one traverses treacherous waters of conflicting and opposing currents of liberty
and government authority, he must ever hold the oar of freedom in the stronger arm, lest an
errant and wayward course be laid.

WHEREFORE, in view of the foregoing premises, the instant petition is hereby DISMISSED
for lack of merit. Petitioner is ordered to furnish private respondent copies of the extradition
request and its supporting papers, and to grant him a reasonable period within which to file
his comment with supporting evidence. The incidents in Civil Case No. 99-94684 having
been rendered moot and academic by this decision, the same is hereby ordered dismissed.

SO ORDERED.

Bellosillo, Purisima, Buena and De Leon, Jr., JJ., concur.

Davide, Jr., C.J., I join Mr. Justice Puno in his dissent.
Puno, J., please see dissent.
Vitug, J., see separate opinion.
Kapunan, J., see separate concurring opinion.
Panganiban, J., please see my dissenting opinion.
Mendoza, J., I join the dissents of Puno and Panganiban, JJ.
Quisumbing, J., with concurring opinion.
Pardo, J., I join J. Puno & J. Panganiban.
Gonzaga-Reyes, J., I join the dissent of Justices Puno & Panganiban.
Ynares-Santiago, J., please see separate concurring opinion.

Separate Opinions

VITUG, J., separate opinion;

The only real issue before the Court, I would take it, is whether or not private respondent can
validly ask for copies of pertinent documents while the application for extradition against him
is still undergoing process by the Executive Department.

There is, I agree with the majority, a right of access to such extradition documents
conformably with the provisions of Article III, Section 7, of the Philippine Constitution.1 The
constitutional right to free access to information of public concern is circumscribed only by
the fact that the desired information is not among the species exempted by law from the
operation of the constitutional guaranty and that the exercise of the right conforms with such
reasonable conditions as may be prescribed by law.

There is no hornbook rule to determine whether or not an information is of public concern.

The term "public concern" eludes exactitude, and it can easily embrace a broad spectrum of
matters which the public may want to know either because the subject thereof can affect
their lives or simply because it arouses concern.2

I am not convinced that there is something so viciously wrong with, as to deny, the request of
private respondent to be furnished with copies of the extradition documents.

I add. The constitutional right to due process secures to everyone an opportunity to be

heard, presupposing foreknowledge of what he may be up against, and to submit any
evidence that he may wish to proffer in an effort to clear himself. This right is two-pronged —
substantive and procedural due process — founded, in the first instance, on Constitutional or
statutory provisions, and in the second instance, on accepted rules of procedure.3
Substantive due process looks into the extrinsic and intrinsic validity of the law that figures to
interfere with the right of a person to his life, liberty and property. Procedural due process —
the more litigated of the two — focuses on the rules that are established in order to ensure
meaningful adjudication in the enforcement and implementation of the law. Like "public
concern," the term due process does not admit of any restrictive definition. Justice
Frankfurter has viewed this flexible concept, aptly I believe, as being ". . . compounded by
history, reason, the past course of decisions, and stout confidence in the democratic faith."4
The framers of our own Constitution, it would seem, have deliberately intended, to make it
malleable to the ever-changing milieu of society. Hitherto, it is dynamic and resilient,
adaptable to every situation calling for its application that makes it appropriate to accept an
enlarged concept of the term as and when there is a possibility that the right of an individual
to life, liberty and property might be diffused.5 Verily, whenever there is an imminent threat to
the life, liberty or property of any person in any proceeding conducted by or under the
auspices of the State, his right to due process of law, when demanded, must not be ignored.

A danger to the liberty of the extraditee, the private respondent, is real. Article 9 of the
Extradition Treaty between the Government of the Republic of the Philippines and the
Government of the United States of America provides that in case of urgency, a Contracting
Party may request the provisional arrest of the person prior to the presentation of the request
for extradition. I see implicit in this provision that even after the request for extradition is
made and before a petition for extradition is filed with the courts, the possibility of an arrest
being made on the basis of a mere evaluation by the Executive on the request for extradition
by the foreign State cannot totally be discounted.

The conclusion reached by the majority, I hasten to add, does not mean that the Executive
Department should be impeded in its evaluation of the extradition request. The right of the
extraditee to be furnished, upon request, with a copy of the relevant documents and to file
his comment thereon is not necessarily anathema to the proceedings duly mandated by the
treaty to be made.

I vote to deny the petition.

KAPUNAN, J., separate concurring opinion;

I vote to dismiss the petition, both on technical and substantial grounds.

The petition in the case at bar raises one and only issue, which is the validity of the
Temporary Restraining Order (TRO) issued by respondent Judge Ralph C. Lantion on
August 9, 1999 in Civil Case No. 99-94684. The TRO directed respondents in said case to:

. . . maintain the status quo by refraining from committing the acts

complained of; from conducting further proceedings in connection with the
request of the United States Government for the extradition of the petitioner;
from filing the corresponding Petition with the Regional Trial Court; and from
performing any act directed to the extradition of the petitioner to the United
States, for a period of twenty days from the service on respondents of this
Order, pursuant to Section 5, Rule 58 of the 1997 Rules of Court.1 (Emphasis
ours.)

The petition itself categorically states that "(t)he issue sought to be presented and litigated
here is solely-the validity of the TRO."2

Notably, there is no allegation in the petition that respondent Judge is without jurisdiction to
hear the case below or that he has exceeded his jurisdiction in hearing the same. Nor is
there any other act, ruling, order, or decision, apart from the TRO already mentioned, of
respondent Judge that is being challenged in the petition before us.

Since, as alleged in the petition, a copy of the TRO was served on respondents below on
August 10, 1999, the TRO ceased to be effective on August 30, 1999; consequently, the
instant petition has become moot and academic. This Court does not exercise jurisdiction
over cases which are moot and academic or those not ripe for judicial consideration.3

Assuming that the present case has not become moot and academic, still, it should be
dismissed for lack of merit.

The substantive issues raised in this case are: (a) whether a person whose extradition is
sought by a foreign state has due process rights under Section 2, Article III of the 1997
Constitution before the Department of Justice as the request for extradition is being
evaluated, or whether due process rights maybe invoked only upon the filing of a petition for
extradition before a regional trial court; and (b) whether or not private respondent has a right
of access to extradition documents under Section 7, Article III of the 1997 Constitution.

Petitioner contends that due process rights such as the right to be informed of the basis of
the request for extradition and to have an opportunity to controvert are not provided in the
extradition treaty or in P.D. 1069 and therefore does not exist in this stage of the
proceedings. Further, he argues that the documents sought to be furnished to private
respondent only involve private concerns, and not matters of public concern to which the
people have a constitutional right to access.

While the evaluation process conducted by the Department of Justice is not exactly a
preliminary investigation of criminal cases, it is akin to a preliminary investigation because it
involves the basic constitutional rights of the person sought to be extradited. A person
ordered extradited is arrested, forcibly taken from his house, separated from his family and
delivered to a foreign state. His rights of abode, to privacy, liberty and pursuit of happiness
are taken away from him — a fate as harsh and cruel as a conviction of a criminal offense.
For this reason, he is entitled to have access to the evidence against him and the right to
controvert them.

While the extradition treaty and P.D. 1069 do not provide for a preliminary investigation,
neither does either prohibit it. The right to due process is a universal basic right which is
deemed written into our laws and treaties with foreign countries.

Like a preliminary investigation, the evaluation by the Department of Justice of the extradition
request and its accompanying documents is to establish probable cause and to secure the
innocent against hasty, malicious and oppressive prosecution.

In this connection, it should be stressed that the evaluation procedure of the extradition
request and its accompanying documents by the Department of Justice cannot be
characterized as a mere "ex-parte technical assessment of the sufficiency" thereof. The
function and responsibilities of the Department of Justice in evaluating the extradition papers
involve the exercise of judgment. They involve a determination whether the request for
extradition conforms fully to the requirements of the extradition treaty and whether the
offense is extraditable. These include, among others, whether the offense for which
extradition is requested is a political or military offense (Article 3); whether the documents
and other informations required under Article 7(2) have been provided (Article 7); and
whether the extraditable offense is punishable under the laws of both contracting parties by
deprivation of liberty for a period of more than one year (Article 2). Consequently, to arrive at
a correct judgment, the parties involved are entitled to be heard if the requirements of due
process and equal protection are to be observed.

With respect to petitioner's claim that private respondent has no right to demand access to
the documents relating to the request for extradition, suffice it to say, that any document
used in a proceeding that would jeopardize a person's constitutional rights is matter of public
concern. As Martin Luther King said, "injustice anywhere is a threat to justice everywhere,"
so any violation of one's rights guaranteed by the Bill of Rights is everybody's concern
because they, one way or another, directly or indirectly, affect the rights of life and liberty of
all the citizens as a whole.

Due process rights in a preliminary investigation is now an established principle. The

respondent has a right of access to all of the evidence. He has the right to submit
controverting evidence. The prosecuting official who conducts the preliminary investigation is
required to be neutral, objective, and impartial in resolving the issue of probable cause. I see
no reason why the same rights may not be accorded a person sought to be extradited at the
stage where the Department of Justice evaluates whether a petition for extradition would be
filed before a regional trial court. If denied such rights, not only denial of due process rights
but of equal protection may be raised.
It is suggested that after a petition for extradition is filed with a regional trial court, the person
sought to be extradited may exercise all due process rights. He may then have access to all
the records on the basis of which the request for extradition has been made. He may
controvert that evidence and raise all defenses he may consider appropriate. That, it is
urged, meets the due process requirement.

But why must he wait until the petition for extradition is filed? As succinctly expressed, if the
right to notice and hearing is to serve its full purpose, then, it is clear that it must be granted
at a time when the deprivation can still be prevented.4 Like the filing of an information in a
criminal case, the mere filing of a petition for extradition causes immediate impairment of the
liberty of the person sought to be extradited and a substantial curtailment of other rights. His
arrest may be immediately ordered by the regional trial court. He would be compelled to face
an open and public trial. He will be constrained to seek the assistance of counsel and incur
other expenses of litigation. The public eye would be directed at him with all the concomitant
intrusions to his right to privacy. Where the liberty of a person is at risk, and extradition
strikes at the very core of liberty, invocation of due process rights can never be too early.

QUISUMBING, J., concurring opinion;

As I concur in the result reached by the ponencia of Justice Melo, may I just add my modest
observations.

The human rights of person, whether citizen or alien, and the rights of the accused
guaranteed in our Constitution should take precedence over treaty rights claimed by a
contracting state. Stated otherwise, the constitutionally mandated duties of our government
to the individual deserve preferential consideration when they collide with its treaty
obligations to the government of another state. This is so although we recognize treaties as a
source of binding obligations under generally accepted principles of international law
incorporated in our Constitution as part of the law of the land.

For this primordial reason, I vote to DENY the petition.

Moreover, considering that the Extradition Treaty between the USA and Philippines appears
mute on the specific issue before us, the Court — in the exercise of its judicial power to find
and state what the law is — has this rare opportunity of setting a precedent that enhances
respect for human rights and strengthens due process of law.

As both majority and dissenting colleagues in the Court will recognize, American authorities
follow two tracks in extradition proceedings: (1) the interstate practice where, pursuant to
statute, the state Executive upon demand furnishes the would be extraditee or counsel
copies of pertinent documents as well as the request for extradition; and (2) the international
practice where the Executive department need not initially grant notice and hearing at all.
Rules of reciprocity and comity, however, should not bar us from applying internationally now
what appears the more reasonable and humane procedure, that is, the interstate practice
among Americans themselves. For in this case the American people should be among the
most interested parties.

Truly, what private respondent is asking our Executive department (notice, copies of
documents, and the opportunity to protect himself at the earliest time against probable peril)
does not, in my view, violate our Extradition Treaty with the USA. His request if granted
augurs well for transparency in interstate or intergovernmental relations rather than secrecy
which smacks of medieval diplomacy and the inquisition discredited long ago.

That private respondent is a Filipino citizen is not decisive of the issue here, although it is
obviously pertinent. Even if he were a resident alien (other than American perhaps), he is, in
my view, entitled to our full protection against the hazards of extradition (or deportation,
similarly) from the very start. More so because, looking at the facts adduced at the hearing
and on the record of this case, the charges against him involve or are co-mingled with, if not
rooted in, certain offenses of a political nature or motivation such as the ones involving
alleged financial contributions to a major American political party. If so, long established is
the principle that extradition could not be utilized for political offenses or politically motivated
charges.

There may, of course, be other charges against private respondent in the USA. But then they
are, in my view, already tainted there with political color due to the highly charged partisan
campaign atmosphere now prevailing. That private respondent's cases will be exploited as
political fodder there is not far-fetched, hence the need here for cautious but comprehensive
deliberation on the matter at bar. For, above all, it is not only a Treaty provision we are
construing; it is about constitutional and human rights we are most concerned.

YNARES-SANTIAGO, J., concurring opinion;

I concur in the ponencia of Mr. Justice Jose A.R. Melo with its conceptive analysis of a
citizen's right to be given what is due to him. I join in his exposition of this Court's
constitutional duty to strike the correct balance between overwhelming Government power
and the protection of individual rights where only one person is involved.

However, I am constrained to write this short concurrence if only to pose the question of why
there should be any debate at all on a plea for protection of one's liberty which, if granted,
will not result in any meaningful impediment of thwarting any state policy and objectives.

I see no reason why respondent Mark Jimenez, or other citizens not as controversial or
talked about, should first be exposed to the indignity, expense, and anxiety of a public
denunciation in court before he may be informed of what the contracting states in an
extradition treaty have against him. There is no question that everything which respondent
Jimenez now requests will be given to him during trial. Mr. Jimenez is only petitioning that, at
this stage, he should be informed why he may be deported from his own country.

I see no ill effects which would arise if the extradition request and supporting documents are
shown to him now, instead of later.

Petitioner Secretary of Justice states that his action on the extradition request and its
supporting documents will merely determine whether or not the Philippines is complying with
its treaty obligations. He adds that, therefore, the constitutional rights of an accused in all
criminal prosecutions are not available to the private respondent.

The July 13, 1999 reply-letter from petitioner states the reasons why he is denying
respondent Jimenez's requests. In short, the reasons are:
 1. In evaluating the documents, the Department merely determines whether
the procedures and requirements under the relevant law and treaty have
been complied with by the Requesting Government. The constitutional rights
of the accused in all criminal prosecutions are, therefore, not available.

2. The United States Government has requested the Philippine Government

to prevent unauthorized disclosure of certain grand jury information.

3. The petitioner cannot hold in abeyance proceedings in connection with an

extradition request. For extradition to be an effective tool of criminal law
enforcement, requests for surrender of accused or convicted persons must
be processed expeditiously.

I respectfully submit that any apprehensions in the Court arising from a denial of the petition
— "breach of an international obligation, rupture of states relations, forfeiture of confidence,
national embarrassment, and a plethora of other equally undesirable consequences" — are
more illusory than real. Our country is not denying the extradition of a person who must be
extradited. Not one provision of the extradition treaty is violated. I cannot imagine the United
States taking issue over what, to it, would be a minor concession, perhaps a slight delay,
accorded in the name of human rights. On the other hand, the issue is fundamental in the
Philippines. A citizen is invoking the protection, in the context of a treaty obligation, of rights
expressly guaranteed by the Philippine Constitution.

Until proved to be a valid subject for extradition, a person is presumed innocent or not
covered by the sanctions of either criminal law or international treaty. At any stage where a
still prospective extraditee only seeks to know so that he can prepare and prove that he
should not be extradited, there should be no conflict over the extension to him of
constitutional protections guaranteed to aliens and citizens alike.

Petitioner cites as a reason for the denial of respondent's requests, Article 7 of the Treaty.
Article 7 enumerates the required documents and establishes the procedures under which
the documents shall be submitted and admitted as evidence. There is no specific provision
on how that Secretary of Foreign Affairs should conduct his evaluation. The Secretary of
Justice is not even in the picture at this stage. Under petitioner's theory, silence in the treaty
over a citizen's rights during the evaluation stage is interpreted as deliberate exclusion by the
contracting states of the right to know. Silence is interpreted as the exclusion of the right to a
preliminary examination or preliminary investigation provided by the laws of either one of the
two states.

The right to be informed of charges which may lead to court proceedings and result in a
deprivation of liberty is ordinarily routine. It is readily available to one against whom the
state's coercive power has already been focused. I fail to see how silence can be interpreted
as exclusion. The treaty is silent because at this stage, the preliminary procedure is still an
internal matter. And when a law or treaty is silent, it means a right or privilege may be
granted. It is not the other way around.

The second reason alleging the need for secrecy and confidentiality is even less convincing.
The explanation of petitioner is self-contradictory. On one hand, petitioner asserts that the
United States Government requested the Philippine Government to prevent unauthorized
disclosure of certain information. On the other hand, petitioner declares that the United
States has already secured orders from concerned District Courts authorizing the disclosure
of the same grand jury information to the Philippine Government and its law enforcement
personnel.

Official permission has been given. The United States has no cause to complain about the
disclosure of information furnished to the Philippines.

Moreover, how can grand jury information and documents be considered confidential if they
are going to be introduced as evidence in adversely proceedings before a trial court? The
only issue is whether or not Mr. Jimenez should be extradited. His innocence or guilt of any
crime will be determined in an American court. It is there where prosecution strategies will be
essential. If the Contracting States believed in a total non-divulging of information prior to
court hearings, they would have so provided in the extradition treaty. A positive provision
making certain rights unavailable cannot be implied from silence.

I cannot believe that the United States and the Philippines with identical constitutional
provisions on due process and basic rights should sustain such a myopic view in a situation
where the grant of a right would not result in any serious setbacks to criminal law
enforcement.

It is obvious that any prospective extraditee wants to know if his identity as the person
indicated has been established. Considering the penchant of Asians to adopt American
names when in America, the issue of whether or not the prospective extraditee truly is the
person charged in the United States becomes a valid question. It is not only identity of the
person which is involved. The crimes must also be unmistakably identified and their essential
elements clearly stated.

There are other preliminary matters in which respondent is interested. I see nothing in our
laws or in the Treaty which prohibits the prospective extraditee from knowing until after the
start of trial whether or not the extradition treaty applies to him.

Paraphrasing Hasmin vs. Boncan, 71 Phil. 216; Trocio vs. Manta, 118 SCRA 241 (1941);
and Salonga vs. Hon. Paño, 134 SCRA 438 (1985), the purpose of a preliminary evaluation
is to secure an innocent person against hasty, faulty and, therefore, oppressive proceedings;
to protect him from an open and extensively publicized accusation of crimes; to spare him
the trouble, expense, and anxiety of a public trial; and also to protect the state from useless
and expensive trails. Even if the purpose is only to determine whether or not the respondent
is a proper subject for extradition, he is nonetheless entitled to the guarantees of fairness
and freedom accorded to those charged with ordinary crimes in the Philippines.

The third reason given by petitioner is the avoidance of delay. Petitioner views the request to
be informed as part of undesirable delaying tactics. This is most unfortunate. Any request for
extradition must be viewed objectively and impartially without any predisposition to granting it
and, therefore, hastening the extradition process.

In the first place, any assistance which the evaluating official may get from the participation
of respondent may well point out deficiencies and insufficiencies in the extradition
documents. It would incur greater delays if these are discovered only during court trial. On
the other hand, if, from respondent's participation, the evaluating official discovers a case of
mistaken identity, insufficient pleadings, inadequate complaints, or any ruinous shortcoming,
there would be no delays during trial. An unnecessary trial with all its complications would be
avoided.
The right to be informed is related to the constitutional right to a speedy trial. The
constitutional guarantee extends to the speedy disposition of cases before all quasi-judicial
and administrative bodies (Constitution, Art. III, Sec. 16). Speedy disposition, however, does
not mean the deliberate exclusion of the defendant or respondent from the proceedings. As
this Court rules in Acebedo vs. Sarmiento, 36 SCRA 247 (1970), "the right to a speedy trial,
means one free from vexatious, capricious and oppressive delays, its salutary objective
being to assure that an innocent person may be free from the anxiety and expense of a court
litigation or, if otherwise, of having his guilt (in this case, his being extradited) determined
within the shortest possible time compatible with the presentation and consideration of
whatsoever legitimate defense he may interpose."

The right to be informed and the right to a preliminary hearing are not merely for respondent.
They also serve the interests of the State. 1âwphi1.nêt

In closing, I maintain that the paramount consideration of guaranteeing the constitutional

rights of individual respondent override the concerns of petitioner. There should be no
hurried or indifferent effort to routinely comply with all requests for extradition. I understand
that this is truer in the United States than in other countries. Proposed extraditees are given
every legal protection available from the American justice system before they are extradited.
We serve under a government of limited powers and inalienable rights. Hence, this
concurrence.

PUNO, J., dissenting opinion;

If the case at bar was strictly a criminal case which involves alone the right of an accused to
due process, I would have co-signed the ponencia of our esteemed colleague, Mr. Justice
Jose A.R. Melo, without taking half a pause. But the case at bar does not involve the guilt or
innocence of an accused but the interpretation of an extradition treaty where at stake is our
government's international obligation to surrender to a foreign state a citizen of its own so he
can be tried for an alleged offense committed within that jurisdiction. The issues are of first
impression and the majority opinion dangerously takes us to unknown shoals in
constitutional and international laws, hence this dissenting opinion.

Extradition is a well-defined concept and is more a problem in international law. It is the

"process by which persons charged with or convicted of crime against the law of a State and
found in a foreign State are returned by the latter to the former for trial or punishment. It
applies to those who are merely charged with an offense but have not been brought to trial;
to those who have been tried and convicted and have subsequently escaped from custody;
and those who have been convicted in absentia. It does not apply to persons merely
suspected of having committed an offense but against who no charge has been laid or to a
person whose presence is desired as a witness or for obtaining or enforcing a civil
judgment."1 The definition covers the private respondent who is charged with two (2) counts
of conspiracy to commit offense or to defraud the United States, four (4) counts of attempt to
evade or defeat tax, two (2) counts of fraud by wire, radio or television, six (6) counts of false
statements or entries and thirty-three (33) counts of election contributions in the name of
another. There is an outstanding warrant of arrest against the private respondent issued by
the US District Court, Southern District of Florida.

A brief review of the history of extradition law will illumine our labor. Possibly the most
authoritative commentator on extradition today, M. Cherif Bassiouni, divides the history of
extradition into four (4) periods: "(1) ancient times to seventeenth century — a period
revealing almost exclusive concern for political and religious offenders; (2) the eighteenth
century and half of the nineteenth century — a period of treaty-making chiefly concerned with
military offenders characterizing the condition of Europe during that period; (3) from 1833 to
1948 — a period of collective concern in suppressing common criminality; and (4) post-1948
developments which ushered in a greater concern for protecting the human rights of persons
and revealed an awareness of the need to have international due process of law regulate
international relations."2

It is also rewarding to have a good grip on the changing slopes in the landscape of
extradition during these different periods. Extradition was first practiced by the Egyptians,
Chinese, Chaldeans and Assyro-Babylonians but their basis for allowing extradition was
unclear. Sometimes, it was granted due to pacts; at other times, due to plain good will.3 The
classical commentators on international law thus focused their early views on the nature of
the duty to surrender an extraditee — whether the duty is legal or moral in character. Grotius
and de Vattel led the school of thought that international law imposed a legal duty called
civitas maxima to extradite criminals.4 In sharp contrast, Puffendorf and Billot led the school
of thought that the so-called duty was but an "imperfect obligation which could become
enforceable only by a contract or agreement between states.5

Modern nations tilted towards the view of Puffendorf and Billot that under international law
there is no duty to extradite in the absence of treaty, whether bilateral or multilateral. Thus,
the US Supreme Court in US v. Rauscher,6 held: ". . . . it is only in modern times that the
nations of the earth have imposed upon themselves the obligation of delivering up these
fugitives from justice to the states where their crimes were committed, for trial and
punishment. This has been done generally by treaties . . . Prior to these treaties, and apart
from them there was no well-defined obligation on one country to deliver up such fugitives to
another; and though such delivery was often made it was upon the principle of comity . . ."

Then came the long and still ongoing debate on what should be the subject of international
law. The 20th century saw the dramatic rise and fall of different types and hues of
authoritarianism — the fascism of Italy's Mussolini and Germany's Hitler, the militarism of
Japan's Hirohito and the communism of Russia's Stalin, etc. The sinking of these isms led to
the elevation of the rights of the individual against the state. Indeed, some species of human
rights have already been accorded universal recognition.7 Today, the drive to internationalize
rights of women and children is also on high gear.8 The higher rating given to human rights in
the hierarchy of values necessarily led to the re-examination of rightful place of the individual
in international law. Given the harshest eye is the moss-covered doctrine that international
law deals only with States and that individuals are not its subject. For its undesirable corrally
is the sub-doctrine that an individual's right in international law is a near cipher. Translated in
extradition law, the view that once commanded a consensus is that since a fugitive is a mere
object and not a subject of international law, he is bereft of rights. An extraditee, so it was
held, is a mere "object transported from one state to the other as an exercise of the
sovereign will of the two states involved."9 The re-examination consigned this pernicious
doctrine to the museum of ideas.10 The new thinkers of international law then gave a
significant shape to the role and rights of the individual in state-concluded treaties and other
international agreements. So it was declared by then US Ambassador Philip C. Jessup in
audible italics: "A very large part of international affairs and, thus, of the process of
international accommodation, concerns the relations between legal persons known as states.
This is necessarily so. But it is no longer novel for the particular interest of the human being
to break through the mass of interstate relationship."11 The clarion call to re-engineer a new
world order whose dominant interest would transcend the parochial confines of national
states was not unheeded. Among the world class scholars who joined the search for the
elusive ideological underpinnings of a new world order were Yale Professor Myres McDougal
and Mr. Justice Florentino Feliciano. In their seminal work. Law and Minimum World Public
Order, they suggested that the object of the new world should be "to obtain in particular
situations and in the aggregate flow of situations the outcome of a higher degree of
conformity with the security goals of preservation, deterrence, restoration, rehabilitation and
reconstruction of all societies comprising the world community."12 Needless to stress, all these
prescient theses accelerated the move to recognize certain rights of the individual in
international law.

We have yet to see the final and irrevocable place of individual rights, especially the rights of
an extraditee, in the realm of international law. In careful language, Bassiouni observes that
today, "institutionalized conflicts between states are still rationalized in terms of sovereignty,
national interest, and national security, while human interests continue to have limited,
though growing impact on the decision-making processes which translate national values
and goals into specific national and international policy."13

I belabor the international law aspect of extradition as the majority opinion hardly gives it a
sideglance. It is my humble submission that the first consideration that should guide us in the
case at bar is that a bilateral treaty — the RP-US Extradition Treaty — is the subject matter
of the litigation. In our constitutional scheme, the making of a treaty belongs to the executive
and legislative departments of our government. Between these two departments, the
executive has a greater say in the making of a treaty. Under Section 21, Article VII of our
Constitution, the President has the sole power to negotiate treaties and international
agreements although to be effective, they must be concurred in by at least two thirds of all
the members of the Senate. Section 20 of the same Article empowers the President to
contract or guarantee foreign loans with the prior concurrence of the Monetary Board.
Section 16 of the same Article gives the President the power to appoint ambassadors, other
public ministers and consuls subject to confirmation by the Commission on Appointments. In
addition, the President has the power to deport undesirable aliens. The concentration of
these powers in the person of the President is not without a compelling consideration. The
conduct of foreign relations is full of complexities and consequences, sometimes with life and
death significance to the nation especially in times of war. It can only be entrusted to that
department of government which can act on the basis of the best available information and
can decide with decisiveness. Beyond debate, the President is the single most powerful
official in our land for Section 1 of Article VII provides that "the executive power shall be
vested in the President of the Philippines," whereas Section 1 of Article VI states that "the
legislative power shall be vested in the Congress of the Philippines which shall consist of a
Senate and a House of Representatives . . . except to the extent reserved to the people by
the provision on initiative and referendum," while Section 1 of Article VIII provides that
"judicial power shall be vested in one Supreme Court and in such lower courts as may be
established by law." Thus, we can see that executive power is vested in the President alone
whereas legislative and judicial powers are shared and scattered. It is also the President who
possesses the most comprehensive and the most confidential information about foreign
countries for our diplomatic and consular officials regularly brief him on meaningful events all
over the world. He has also unlimited access to ultra-sensitive military intelligence data.14 In
fine, the presidential role in foreign affairs is dominant and the President is traditionally
accorded a wider degree of discretion in the conduct of foreign affairs. The regularity, nay,
validity of his actions are adjudged under less stringent standards, lest their judicial
repudiation lead to breach of an international obligation, rupture of state relations, forfeiture
of confidence, national embarrassment and a plethora of other problems with equally
undesirable consequences.
These are some of the dominant policy considerations in international law that the Court
must balance against the claim of the private respondent that he has a right to be given the
extradition documents against him and to comment thereon even while they are still at the
evaluation stage by the petitioner Secretary of Justice, an alter ego of the President. The
delicate questions of what constitutional rights and to what degree they can be claimed by an
extraditee do not admit of easy answers and have resulted in discrete approaches the world
over.15 On one end of the pole is the more liberal European approach. The European Court of
Human Rights embraces the view that an extraditee is entitled to the benefit of all relevant
provisions of the European Convention for the Protection of Human Rights and Fundamental
Freedoms. It has held that ". . . in so far as a measure of the extradition has consequences
adversely affecting the enjoyment of a convention right, it may, assuming that the
consequences are not too remote, attract the obligations of a Contracting State under the
relevant convention guarantee."16 At the other end of the pole is the more cautious approach
of the various Courts of Appeal in the United States. These courts have been more
conservative in light of the principle of separation of powers and their faith in the presumptive
validity of executive decisions. By and large, they adhere to the rule of non-inquiry under
which the extraditing court refuses to examine the requesting country's criminal justice
system or consider allegations that the extraditee will be mistreated or denied a fair trial in
that country.17

The case at bar, I respectfully submit, does not involve an irreconcilable conflict between the
RP-US Extradition Treaty and our Constitution where we have to choose one over the other.
Rather, it calls for a harmonization between said treaty and our Constitution. To achieve this
desirable objective, the Court should consider whether the constitutional rights invoked by
the private respondent have truly been violated and even assuming so, whether he will be
denied fundamental fairness. It is only when their violation will destroy the respondent's right
to fundamental fairness that his constitutional claims should be given primacy.

Given this balancing approach, it is my humble submission that considering all the facts and
facets of the case, the private respondent has not proved entitlement to the right he is
claiming. The majority holds that the Constitution, the RP-US extradition and P.D. No. 1069
do not prohibit respondent's claims, hence, it should be allowed. This is too simplistic an
approach. Rights do not necessarily arise from a vacuum. Silence of the law can even mean
an implied denial of a right. Also, constitutional litigations do not always involve a clear cut
choice between right and wrong. Sometimes, they involve a difficult choice between right
against right. In these situations, there is need to balance the contending rights and primacy
is given to the right that will serve the interest of the nation at that particular time. In such
instances, the less compelling right is subjected to soft restraint but without smothering its
essence. Proceeding from this premise of relativism of rights, I venture the view that even
assuming arguendo respondent's weak claim, still, the degree of denial of private
respondent's rights to due process and to information is too slight to warrant the interposition
of judicial power. As admitted in the ponencia itself, an extradition proceeding is sui generis.
It is, thus, futile to determine what it is. What is certain is that it is not a criminal proceeding
where there is an accused who claim the entire array of rights guaranteed by the Bill of
Rights. Let it be stressed that in an extradition proceeding, there is no accused and the guilt
or innocence of the extraditee will not be passed upon by our executive officials nor by the
extradition judge. Hence, constitutional rights that are only relevant do determine the guilt or
innocence of an accused cannot be invoked by an extraditee. Indeed, an extradition
proceeding is summary in nature which is untrue of criminal proceedings.18 Even the rules of
evidence are different in an extradition proceeding. Admission of evidence is less stringent,
again because the guilt of the extraditee is not under litigation.19 It is not only the quality but
even the quantum of evidence in extradition proceeding is different. In a criminal case, an
accused can only be convicted by proof beyond reasonable doubt.20 In an extradition
proceeding, an extraditee can be ordered extradited "upon showing of the existed of a prima
facie case."21 If more need be said, the nature of an extradition decision is different from a
judicial decision whose finality cannot be changed by executive fiat. Our courts22 may hold an
individual extraditable but the ultimate decision to extradite the individual lies in the hands of
the Executive. Section 3, Article 3 of the RP-US Extradition Treaty specifically provides that
"extradition shall not be granted if the executive authority of the Requested State determined
that the request was politically motivated, or that the offense is a military offense which is not
punishable under non-military penal legislation." In the United States, the Secretary of State
exercises this ultimate power and is conceded considerable discretion. He balances the
equities of the case and the demands of the nation's foreign relations.23 In sum, he is not
straitjacketed by strict legal considerations like an ordinary court.

The type of issue litigated in extradition proceedings which does not touch on the guilt or
innocence of the extraditee, the limited nature of the extradition proceeding, the availability of
adequate remedies in favor of the extraditee, and the traditional leeway given to the
Executive in the conduct of foreign affairs have compelled courts to put a high threshold
before considering claims of individuals that enforcement of an extradition treaty will violate
their constitutional rights. Exemplifying such approach is the Supreme Court of Canada
which has adopted a highly deferential standard that emphasizes international comity and
the executive's experience in international matters.24 It continues to deny Canada's charter
protection to extraditees unless the violation can be considered shocking to the conscience.

In the case, at bar and with due respect, the ponencia inflates with too much significance the
threat to liberty of the private respondent to prop us its thesis that his constitutional rights to
due process and access to information must immediately be vindicated. Allegedly,
respondent Jimenez stands in danger of provisional arrest, hence, the need for him to be
immediately furnished copies of documents accompanying the request for his extradition.
Respondent's fear of provisional arrest is not real. It is a self-imagined fear for the realities on
the ground show that the United States authorities have not manifested any desire to request
for his arrest. On the contrary, they filed the extradition request through the regular channel
and, even with the pendency of the case at bar, they have not moved for respondent's arrest
on the ground of probable delay in the proceedings. To be sure, the issue of whether
respondent Jimenez will be provisionally arrested is now moot. Under Section 1 of Article 9
of the RP-US Extradition Treaty, in relation to Section 20(a) of PD No. 1069, the general
principle is enunciated that a request for provisional arrest must be made pending receipt of
the request for extradition. By filing the request for extradition, the US authorities have
implicitly decided not to move for respondent's provisional arrest. But more important, a
request for respondent's arrest does not mean he will be the victim of an arbitrary arrest. He
will be given due process before he can be arrested. Article 9 of the treaty provides:

PROVISIONAL ARREST

1. In case of urgency, a Contracting Party may request the provisional arrest

of the person sought pending presentation of the request for extradition. A
request for provisional arrest may be transmitted through the diplomatic
channel or directly between the Philippine Department of Justice and the
United States Department of Justice.

2. The application for provisional arrest shall contain:

a) a description of the person sought;

 b) the location of the person sought, if known;

c) a brief statements of the facts of the case, including, if possible, the

time and location of the offense;

d) a description of the laws violated;

e) a statement of the existence of a warrant of a warrant of arrest or

finding of guilt or judgment of conviction against the person sought;
and

f) a statement that a request for extradition for the person sought will
follow.

3. The Requesting State shall be notified without delay of the disposition of

its application and the reasons for any denial.

4. A person who is provisionally arrested may be discharged from custody

upon the expiration of sixty (60) days from the date of arrest pursuant to this
Treaty if the executive authority of the Requested State has not received the
formal request for extradition and the supporting documents required in
Article 7.

In relation to the above, Section 20 of P.D. No. 1069 provides:

Sec. 20. Provisional Arrest. — (a) In case of urgency, the requesting state
may, pursuant to the relevant treaty or convention and while the same
remains in force, request for the provisional arrest of the accused, pending
receipt of the request for extradition made in accordance with Section 4 of
this Decree.

(b) A request for provisional arrest shall be sent to the Director of the
National Bureau of Investigation, Manila, either through the diplomatic
channels or direct by post or telegraph.

(c) The Director of the National Bureau of Investigation or any official acting
on his behalf shall upon receipt of the request immediately secure a warrant
for the provisional arrest of the accused from the presiding judge of the Court
of First Instance of the province or city having jurisdiction of the place, who
shall issue the warrant for the provisional arrest of the accused. The Director
of the National Bureau of Investigation through the Secretary of Foreign
Affairs shall inform the requesting state of the result of its request.

(d) If within a period of 20 days after the provisional arrest, the Secretary of
Foreign Affairs has not received the request for extradition and the
documents mentioned in Section 4 of this Decree, the accused shall be
released from custody.

The due process protection of the private-respondent against arbitrary arrest is written in
cyrillic letters in these two (2) related provisions. It is self-evident under these provisions that
a request for provisional arrest does not mean it will be granted ipso facto. The request must
comply with certain requirements. It must be based on an "urgent" factor. This is subject to
verification and evaluation by our executive authorities. The request can be denied if not
based on a real exigency of if the supporting documents are insufficient. The protection of
the respondent against arbitrary provisional arrest does not stop on the administrative level.
For even if the Director of the National Bureau of Investigation agrees with the request for
the provisional arrest of the respondent, still he has to apply for a judicial warrant from the
"presiding judge of the Court of First Instance (now RTC) of the province of city having
jurisdiction of the place. . . . ." It is a judge who will issue a warrant for the provisional arrest
of the respondent. The judge has comply with Section 2, Article III of the Constitution which
provides that "no . . . warrant of arrest shall issue except upon probable cause to be
determined personally by the judge after examination under oath or affirmation of the
complainant and the witnesses he may produce, and particularly describing the . . . persons
or things to be seized." The message that leaps to the eye is that compliance with this
requirements precludes any arbitrary arrest.

In light of all these considerations, I respectfully submit that denying respondent's

constitutional claim to be furnished all documents relating to the request for his extradition by
the US authorities during their evaluation stage will not subvert his right to fundamental
fairness. It should be stressed that this is not a case where the respondent will not be given
an opportunity to know the basis of the request for his extradition. In truth, and contrary to
the impression of the majority, P.D. No. 1069 fixes the specific time when he will be given the
papers constituting the basis for his extradition. The time is when he is summoned by the
extradition court and required to answer the petition for extradition. Thus, Section 6 of P.D.
No. 1069 provides:

Sec. 6. Issuance of Summons; Temporary Arrest; Hearing, Service of

Notices. — (1) Immediately upon receipt of the petition, the presiding judge of
the court shall, as soon as practicable, summon the accused to appear and
to answer the petition on the day and hour fixed in the order. He may issue a
warrant for the immediate arrest of the accused which may be served
anywhere within the Philippines if it appears to the presiding judge that the
immediate arrest and temporary detention of the accused will best serve the
ends of justice. Upon receipt of the answer within the time fixed, the presiding
judge shall hear the case or set another date for the hearing thereof.

(2) The order and notice as well as a copy of the warrant of arrest, if issued,
shall be promptly served each upon the accused and the attorney having
charge of the case.

Upon receipt of the summons and the petition, respondent is free to foist all defense
available to him. Such an opportunity does not deny him fairness which is the essence of
due process of law.

Thus, with due respect, I submit that the ponencia failed to accord due importance to the
international law aspect of an extradition treaty as it unduly stressed its constitutional law
dimension. This goes against the familiar learning that in balancing the clashing interests
involved in extradition treaty, national interest is more equal than the others. While lately,
humanitarian considerations are being factored in the equation, still the concept of extradition
as a national act is the guiding idea. Requesting and granting extradition remains a power
and prerogative of the national government of a State. The process still involves relations
between international personalities.25 Needless to state, a more deferential treatment should
be given to national interest than to individual interest. Our national interest in extraditing
persons who have committed crimes in a foreign country are succinctly expressed in the
whereas clauses of P.D. No. 1069, viz:

WHEREAS, the Constitution of the Philippines adopts the generally accepted

principles of international law as part of law of the land, and adheres to the
policy of peace, equality, justice, freedom, cooperation and amity with all
nations;

WHEREAS, the suppression of crime is the concern not only of the state
where it is committed but also of any other state to which the criminal may
have escaped, because it saps the foundation of social life and is an outrage
upon humanity at large, and it is in the interest of civilized communities that
crimes should not go unpunished. . . . .

The increasing incidence of international and transnational crimes, the development of new
technologies of death, and the speed and scale of improvement of communication are
factors which have virtually annihilated time and distance. They make more compelling the
vindication of national interest to insure that the punishment of criminals should not be
frustrated by the frontiers of territorial sovereignty. This overriding national interest must be
upheld as against respondent's weak constitutional claims which in no way amount to denial
of fundamental fairness.

At bottom, this case involves the respect that courts should accord to the Executive that
concluded the RP-US Extradition Treaty in the conduct of our foreign affairs. As early as
1800, the legendary John Marshall, then a congressman, has opined that the power to
extradite pursuant to a treaty rests in the executive branch as part of its power to conduct
foreign affairs.26 Courts have validated this forward-looking opinion in a catena of unbroken
cases. They defer to the judgment of the Executive on the necessities of our foreign affairs
and on its view of the requirements of international comity. The deferential attitude is dictated
by the robust reality that of the three great branches of our government, it is the Executive
that is most qualified to guide the ship of the state on the known and unknown continents of
foreign relations. It is also compelled by considerations of the principle of separation of
powers for the Constitution has clearly allocated the power to conduct our foreign affairs to
the Executive. I respectfully submit that the majority decision has weakened the Executive by
allowing nothing less than an unconstitutional headbutt on the power of the Executive to
conduct our foreign affairs. The majority should be cautions in involving this Court in the
conduct of the nation's foreign relations where the inviolable rule dictated by necessity is that
the nation should speak with one voice. We should not overlook the reality that courts by
their nature, are ill-equipped to fully comprehend the foreign policy dimension of a treaty,
some of which are hidden in shadows and silhouettes.

I vote to grant the petition.

PANGANIBAN, J., dissenting opinion;

With due respect, I dissent.

The main issue before us is whether Private Respondent Mark B. Jimenez is entitled to the
due process rights of notice and hearing during the preliminary or evaluation stage of the
extradition proceeding against him.
Two Staged in Extradition

There are essentially two stages in extradition proceedings: (1) the preliminary or evaluation
stage, whereby the executive authority of the requested state ascertains whether the
extradition request is supported by the documents and information required under the
Extradition Treaty; and (2) the extradition hearing, whereby the petition for extradition is
heard before a court of justice, which determines whether the accused should be extradited.

The instant petition refers only to the first stage. Private respondent claims that he has a right
to be notified and to be heard at this early stage. However, even the ponencia admits that
neither the RP-US Extradition Treaty nor PD 1069 (the Philippine Extradition Law) expressly
requires the Philippine government, upon receipt of the request for extradition, to give copies
thereof and its supporting documents to the prospective extraditee, much less to give him an
opportunity to be heard prior to the filing of the petition in court.

Notably, international extradition proceedings in the United States do not include the grant by
the executive authority of notice and hearing to the prospective extraditee at this initial stage.
It is the judge or magistrate who is authorized to issue a warrant of arrest and to hold a
hearing to consider the evidence submitted in support of the extradition request. In contrast,
in interstate rendition, the governor must, upon demand, furnish the fugitive or his attorney
copies of the request and its accompanying documents, pursuant to statutory provisions.1 In
the Philippines, there is no similar statutory provision.

Evaluation Stage Essentially Ministerial

The evaluation stage simply involves the ascertainment by the foreign affairs secretary of
whether the extradition request is accompanied by the documents stated in paragraphs 2
and 3, Article 7 of the Treaty, relating to the identity and the probable location of the fugitive;
the facts of the offense and the procedural history of the case; provisions of the law
describing the essential elements of the offense charged and the punishment therefor; its
prescriptive period; such evidence as would provide probable cause for the arrest and the
committal for trial of the fugitive; and copies of the warrant or order of arrest and charging
document. The foreign affairs secretary also sees to it that these accompanying documents
have been certified by the principal diplomatic or consular officer of the Philippines in the
United States, and that they are in English language or have English translations. Pursuant
to Article 3 of the Treaty, he also determines whether the request is politically motivated, and
whether the offense charged is a military offense not punishable under non-military penal
legislation.2

Upon a finding of the secretary of foreign affairs that the extradition request and its
supporting documents are sufficient and complete in form and substance, he shall deliver the
same to the justice secretary, who shall immediately designate and authorize an attorney in
his office to take charge of the case. The lawyer designated shall then file a written petition
with the proper regional trial court, with a prayer that the court take the extradition request
under consideration.3

When the Right to Notice and Hearing Becomes Available

According to private Respondent Jimenez, his right to due process during the preliminary
stage emanates from our Constitution, particularly Section 1, Article III thereof, which
provides:
 No person shall be deprived of life, liberty or property without due process of
law.

He claims that this right arises immediately, because of the possibility that he may be
provisionally arrested pursuant to Article 9 of the RP-US Treaty, which reads:

In case of urgency, a Contracting Party may request the provisional arrest of

the person sought pending presentation of the request for extradition. A
request for provisional arrest may be transmitted through the diplomatic
channel or directly between the Philippine Department of Justice and the
United States Department of Justice.

xxx xxx xxx

Justice Melo's ponencia supports private respondent's contention. It states that there are two
occasions wherein the prospective extraditee may be deprived of liberty: (1) in case of a
provisional arrest pending the submission of the extradition request and (2) his temporary
arrest during the pendency of the extradition petition in court.4 The second instance is not in
issue here, because no petition has yet been filed in court.

However, the above-quoted Article 9 on provisional arrest is not automatically operative at all
times, and in enforcement does not depend solely on the discretion of the requested state.
From the wordings of the provision itself, there are at least three requisites: (1) there must be
an urgency, and (2) there is a corresponding request (3) which must be made prior to the
presentation of the request for extradition.

In the instant case, there appears to be no urgency characterizing the nature of the
extradition of private respondent. Petitioner does not claim any such urgency. There is no
request from the United States for the provisional arrest of Mark Jimenez either. And the
secretary of justice states during the Oral Argument that he had no intention of applying for
the provisional arrest of private respondent.5 Finally, the formal request for extradition has
already been made; therefore, provisional arrest is not likely, as it should really come before
the extradition request.6

Mark Jimenez Not in Jeopardy of Arrest

Under the outlined facts of this case, there is no open door for the application of Article 9,
contrary to the apprehension of private respondent. In other words, there is no actual danger
that Jimenez will be provisionally arrested or deprived of his liberty. There is as yet no threat
that his rights would be trampled upon, pending the filing in court of the petition for his
extradition. Hence, there is no substantial gain to be achieved in requiring the foreign affairs
(or justice) secretary to notify and hear him during the preliminary stage, which basically
involves only the exercise of the ministerial power of checking the sufficiency of the
documents attached to the extradition request.

It must be borne in mind that during the preliminary stage, the foreign affairs secretary's
determination of whether the offense charged is extraditable or politically motivated is merely
preliminary. The same issue will be resolved by the trial court.7 Moreover, it is also the power
and the duty of the court, not the executive authority, to determine whether there is sufficient
evidence to establish probable cause that the extraditee committed the crimes charged.8 The
sufficiency of the evidence of criminality is to be determined based on the laws of the
requested state.9 Private Respondent Jimenez will, therefore, definitely have his full
opportunity before the court, in case an extradition petition will indeed be filed, to be heard
on all issues including the sufficiency of the documents supporting the extradition request.10

Private respondent insists that the United States may still request his provisional arrest at
any time. That is purely speculative. It is elementary that this Court does not declare
judgments or grant reliefs based on speculations, surmises or conjectures.

In any event, even granting that the arrest of Jimenez is sought at any time despite the
assurance of the justice secretary that no such measure will be undertaken, our local laws
and rules of procedure respecting the issuance of a warrant of arrest will govern, there being
no specific provision under the Extradition Treaty by which such warrant should issue.
Therefore, Jimenez will be entitled to all the rights accorded by the Constitution and the laws
to any person whose arrest is being sought. 1âwphi1.nêt

The right of one state to demand from another the return of an alleged fugitive from justice
and the correlative duty to surrender the fugitive to the demanding country exist only when
created by a treaty between the two countries. International law does not require the
voluntary surrender of a fugitive to a foreign government, absent any treaty stipulation
requiring it.11 When such a treaty does exist, as between the Philippines and the United
States, it must be presumed that the contracting states perform their obligations under it with
uberrimae fidei, treaty obligations being essentially characterized internationally by comity
and mutual respect.

The Need for Respondent Jimenez to Face Charges in the US

One final point. Private respondent also claims that from the time the secretary of foreign
affairs gave due course to the request for his extradition, incalculable prejudice has been
brought upon him. And because of the moral injury caused, he should be given the
opportunity at the earliest possible time to stop his extradition. I believe that any moral injury
suffered by private respondent had not been caused by the mere processing of the
extradition request. And it will not cease merely by granting him the opportunity to be heard
by the executive authority. The concrete charges that he has allegedly committed certain
offenses already exist. These charges have been filed in the United States and are part of
public and official records there. Assuming the existence of moral injury, the only means by
which he can restore his good reputation is to prove before the proper judicial authorities in
the US that the charges against him are unfounded. Such restoration cannot be
accomplished by simply contending that the documents supporting the request for his
extradition are insufficient.

Conclusion

In the context of the factual milieu of private respondent, there is really no threat of any
deprivation of his liberty at the present stage of the extradition process. Hence, the
constitutional right to due process — particularly the right to be heard — finds no application.
To grant private respondent's request for copies of the extradition documents and for an
opportunity to comment thereon will constitute "over-due process" and unnecessarily delay
the proceedings.

WHEREFORE, I vote to grant the Petition.

Footnotes

VITUG, J., separate opinion;

1
Sec. 7. The right of the people to information of public concern shall be
recognized. Access to official records, and to documents, and papers a
pertaining to official acts, transactions, or decisions, as well as to government
research data used as basis for policy development, shall be afforded the
citizen, subject to such limitations as may be provided by law.

2
Legaspi vs. Civil Service Commission, 150 SCRA 530; Valmonte vs.
Belmonte, Jr., 170 SCRA 256.

3
Aniag, Jr. vs. Commission on Elections, 237 SCRA 424; Tupas vs. Court of
Appeals, 193 SCRA 597.

4
Abraham, Henry J., Some Basic Guidelines of "Due Process of Law." The
Lawyers Review, Vol. IX, 30 April 1995, p. 1.

5
Cruz, Isagani A. Constitutional Law. 1995 Ed. pp. 94-95.

KAPUNAN, J., separate concurring opinion;

1
Annex "L," petition.

2
Petition, p. 4.

3
Edillon vs. Fernandos, 114 SCRA 153 (1982); Pangilinan vs. Zapata, 69
SCRA 334 (1976).

4
Stanley v. Illinois, 1405 U.S. 645, 647.

PUNO, J., dissenting opinion;

1
Weston, Falk, D'Amato, International Law and World Order, 2nd ed., p. 630
(1990).

2
International Extradition, United States Law and Practice, 2nd ed., p. 7
(1987).

3
The Practice of Extradition from Antiquity to Modern France and the United
States: A Brief History, 4 B.C. Int'l. & Comp. L. Rev. 39 (1981).

4
They were supported by scholars like Heineccuis, Burlamaqui, Rutherford,
Schmelzing and Kent. See Sheareer, Extradition in Internal Law, p. 24
(1971).
5
They were supported by scholars like Voet, Martons, Kuber, Leyser, Lint,
Seafied, Schmaltz, Mittermaier and Heffter. See Shearer, supra, p. 24.

6
119 US 407, 411, 7 S. Ct. 234, 236, 30 L. ed. 425 (1886).

7
See Universal Declaration of Human Rights (1948), The International
Covenant on Economic, Social and Cultural Rights (1966) and The
International Covenant on Civil and Political Rights (1966).

8
The Convention on the Elimination of All Forms of Discrimination Against
Women (CEDAW) otherwise known as "Bill of Rights for Women" was
adopted by the UN General Assembly in December 1979. As of November
1999, one hundred sixty seven (167) states including the Philippines have
ratified or acceded to it. See Statement of Angela King, Special Adviser to
the Secretary General of the UN on Gender Issues and Advancement of
Women, Judicial Colloquium on the Application of International Human
Rights Law at the Domestic Level, Vienna, Austria, October 27, 1999.

9
Blakesley and Lagodny, Finding armony Amidst Disagreement Over
Extradition, Jurisdiction, The Role of Human Rights and Issues of
Extraterritoriality Under International Criminal Law, Vanderbilt Journal of
Transnational Law, Vol. 24, No. 1, pp. 44 (1991).

See generally Kelsen, Principles of International Law, 2nd ed., (1966);

10

Korowicz, The Problem of the International Personality of Individuals, 50 Am.

J., Int'l. Law 553 (1966).

The Conquering March of an Idea, Speech before the 72nd Annual Meeting
11

of the American Bar Association, St. Louis, Mo., September 6, 1949.

12
See also R. Falk and S. Mendlovitz, Strategy of World Order, etc. (1996); G.
Clark and L. Sohn, World Peace Through World Law (1966); Bassiouni,
International Extradition in American Practice and World Public Order, 36
Tenn. L. Rev. 1 (1968).

13
Bassiouni, supra, p. 625.

US v. Curtiss-Wright Expert Corp., 299 US 304, 57 S Ct. 216, 81 L. ed. 255

14

(1936).

Spencer, The Role of the Charter in Extradition Cases, University of Toronto

15

L. Rev., vol. 51, pp. 62-63, (Winter, 1993).

16
Spencer, op cit., citing the decision in Soering, 11 E.H.R.R. 439 (1989).

17
Semmelman, Federal Courts, The Constitution and the Rule of Non-Inquiry
in International Extradition Proceedings, Cornell Law Rev., vol. 76, No. 5, p.
1198 (July 1991).

18
Sec. 9, P.D. No. 1069.
19
Ibid.

20
Sec. 2, Rule 133, Revised Rules of Court.

21
Sec. 10, P.D. No. 1069.

Referring to the Regional Trial Courts and the Court of Appeals whose
22

decisions are deemed final and executory. See Section 12, P.D. No. 1069.

23
Note, Executive Discretion in Extradition, 62 Col. Law Rev., pp. 1314-1329.

24
Spencer, op cit., citing decided cases.

Weston, Falk and Amato, International Law and World Order, 2nd ed., p.
25

630 (1990).

26
Semmelman. op cit., p. 1206.

PANGANIBAN, J., dissenting opinion;

1
35 CJS § 14(1) Extradition 410. See also ponencia, p. 25.

2
See ponencia, pp. 11-12.

3
Ibid., Section 5, pars. (1) & (2), PD 1069.

4
Ponencia, p. 18.

5
TSN, p. 76.

6
See also TSN, p. 30.

7
§ 5 (2) & (3) in rel. to § 10, PD 1069. See also last par., p. 13 of ponencia.

8
18 USCS § 3184, n 58 Criminal Procedure 456; 31A Am Jur 2d § 109
Extradition 828.

9
18 USCS § 3184, n 64 Criminal Procedure 458.

10
See Wright v. Court of Appeals, 235 SCRA 341, August 15, 1994.

11
31A Am Jur 2d Extradition § 14.
Heirs of Santiago Pastoral v SPW and Communications

THIRD DIVISION

G.R. No. L-44485 June 27, 1988

HEIRS OF SANTIAGO PASTORAL and AGUSTIN BATO, petitioners-appellants,

vs.
THE SECRETARY OF PUBLIC WORKS and COMMUNICATIONS, THE CITY ENGINEER
OF DAGUPAN CITY and LEONARDO ESPANOL, respondents-appellees.

Paulino S. Cabugao for petitioners-appellants.

GUTIERREZ, JR., J.:

This case was certified to us by the Court of Appeals pursuant to Sections 17 and 21 of the Judiciary Act, as amended in relation
to Section 3, Rule 50 of the Rules of Court on the ground that the issues raised are pure questions of law. The main issue centers
on the authority of the Secretary of Public Works and Communications under Republic Act 2056 to declare the construction of
dikes encroaching into public navigable waters as a public nuisance and to order their removal.

Sometime in October 1958, residents of Bacayao Norte, Caranglaan, and Mayombo Districts
of Dagupan City led by Leonardo Espanol filed complaints with the Secretary of Public
Works and Communications (hereinafter referred to as Secretary) denouncing the heirs of
Santiago Pastoral and Agustin Bato for "alleged encroachments into the Tulao River ... to the
prejudice of public interest." The complaints were docketed as Cases Nos. RA-2056-26 and
RA-2056-37 respectively.

The Secretary designated the City Engineer of Dagupan City to conduct hearings in the two
cases. All the parties were notified of the hearings set for both cases.

Based on the evidence submitted by the parties, the Secretary rendered two separate
decisions ordering the removal of the encroachments complained of within thirty (30) days
from receipt of notice. Thus, in Case No. RA-2056-26, the heirs of Santiago Pastoral were
ordered to remove the fishpond dikes indicated as Encroachments Nos. 1, 2, 3 and 4 in
Exhibit "A" while in Case No. RA-2056-37, Agustin Bato was ordered to remove the fishpond
dikes indicated as Encroachment No. 5 in Exhibit "A." The Secretary ruled that
encroachments Nos. 1, 2, 3, 4 and 5 in Exhibit "A" had been illegally constructed within the
channel of Tulao River. The Secretary declared the encouragement croachments as public
nuisances under Republic Act 2056.

Their motion for reconsideration having been denied by the Secretary, the respondents filed
in the Court of First Instance of Pangasinan a petition for certiorari and prohibition with a
prayer for a writ of preliminary injunction against the Secretary, the City Engineer of Dagupan
City and Leonardo Espanol. The case was docketed as Civil Case No. D-833.

The petitioners (respondents in the administrative cases) alleged "... that respondent City
Engineer informed petitioners that the 30-day period given them to remove the fishpond
dikes has expired and that his office will proceed to demolish the dikes on orders from the
Secretary of Public Works and Communications; that they have title over the alleged
encroachments and a fishpond permit issued by the Department of Agriculture and Natural
Resources, through the Bureau of Fisheries, authorizing them to construct a fishpond on an
adjoining parcel of their property not covered by title." The petitioners sought the annulment
of the decision of the Secretary of Public Works and Communications on the ground of lack
of jurisdiction and the issuance of a writ of prohibition commanding the respondents to desist
absolutely and perpetually from further molesting in any manner the petitioners and
interfering with the exercise of their rights over the lands in question.

In his answer, the Secretary invoked his authority to remove the encroachments under
Republic Act No. 2056 and stated that he had acted lawfully and justly and within the sound
limits of his authority and jurisdiction thereunder.

The parties agreed to submit the case for judgment on the pleadings and were allowed by
the lower court to submit their respective memoranda.

The trial court then rendered a decision in favor of the petitioners-appellants prompting the
Secretary to interpose an appeal to the Court of Appeals.

The Secretary assigned a single assignment of error, to wit:

THE TRIAL COURT COMMITTED ERROR IN HAVING ANNULLED

THE DECISIONS RENDERED BY THE SECRETARY OF PUBLIC
WORKS AND COMMUNICATIONS, IN CASES JURISDICTION,
AND IN PERMANENTLY ENJOINING SAID SECRETARY FROM
IMPLEMENTING THE ORDER TO REMOVE THE
ENCROACMENTS PLACED BY THE APPEALLEES ON THE
TULAO RIVER. (At p. 17, Rollo)

In support of this lone assignment of error, the petitioner raised the following arguments:

1) The Secretary was duly vested with jurisdiction both over the
parties and subject matter of the controversy.

2) The Secretary duly conformed to the requirements of due process

in the exercise of his authority under Republic Act No. 2056.

3) The Secretary did not, as concluded by the court a quo, rule on the
validity of appellees' titles over the lots in question.

4) The issuance of fishpond permits by the Bureau of Fisheries did

not preclude the Secretary from conducting due investigation and in
ruling upon the same.

5) The Secretary's findings of fact are entitled to respect from the

courts. (At pp. 17-18, Rollo)

As stated earlier, the main issue hinges on the authority of the Secretary of Public Works and
Communications under Republic Act 2056 to declare that the construction or building of
dams, dikes or any other works which encroach into any public navigable river, stream,
coastal waters and any other navigable public waters or waterways as well as the
construction or building of dams, dikes or any other works in areas declared as communal
fishing grounds is prohibited and to order their removal as "public nuisances or as prohibited
constructions."

The lower court concluded that the Secretary abused his authority under Republic Act No.
2056 on the following points: (1) The Secretary passed judgment on the validity of the titles
of the petitioners over Encroachments 3, 4 and 5 when he declared such titles as null and
void; and (2) the dikes denominated as Encroachments Nos. 1 and 2 were constructed by
virtue of a permit legally issued in favor of the late Santiago Pastoral by the Bureau of
Fisheries on July 19, 1948 because the area was deemed fit by said Office of fishpond
purposes, and the construction of such dikes would not impede the flow of the river. The
lower court opined that in constructing the dikes, the petitioners were only exercising a right
legally granted to them and that "they shall remain to enjoy the privilege until such time that
their permit shall have been cancelled."

The petition is impressed with merit.

The records belie the lower court's finding that the Secretary passed judgment on the titles of
the lots in question.

In connection with Encroachments Nos. 3 and 4, the Heirs of Santiago Pastoral presented a
certified true copy of Original Certificate of Title No. 9 issued by the Register of Deeds of
Dagupan City to show that the encroachments are within their titled lands. The Secretary,
however, stated in his decision:

As regards the last two encroachments, the evidence shows that the
southern boundary thereof is the original bank of the Tulao River. The
properties in question, titled as they are, are clearly within the bed of
the river. Even the testimony of Aniceto Luis, a representative of the
Bureau of Lands in the investigation, shows without doubt, that the
encroachments are within the river bed as may be gleaned from the
following:

Q As it appears in the record, title was granted to

Santiago Pastoral on this alleged encroachment No. 3
and 4 which falls squarely on the Tulao River and
during the ocular inspection by the undersigned, the
fact became evident that the river is highly navigable.
Now, what explanation can you make as to why title
was issued over a portion of a river, public river at
that, which is highly navigable?

A So far, our record does not show that it is a

navigable river, but it is just stated that "the area
applied for is a part of the Tulao River and therefore it
is covered by water." (From the report of the Deputy
Public Land Inspector E. Ventura dated March, 1954
in connection with the Sales application of Santiago
Pastoral.)
 Q So in the report, it was stated that the land applied
for by Santiago Pastoral is entirely covered by water
and part of the river?

A Yes, sir,

The propriety of the title over the last two encroachments is beyond
the jurisdiction of this Office to inquire into, much less question,
although it seems worth looking into by the proper authorities. Be that
as it may, the fact remains that the dikes and other works therein are
encroachments into the Tulao River and, as such, are public
nuisances within the contemplation of Republic Act No. 2056. (pp. 1-
2, Decision in RA-2056-26)

Petitioner Agustin Bato also submitted a verified copy of the Original Certificate of Title No. 2
to show that encroachment No. 5 was privately owned.

Anent this argument, the Secretary said:

xxx xxx xxx

... It has been found, however, that the land in question, although
titled, is within the bed of the Tulao River. Even the representative of
the Bureau of Lands bolstered such finding as may be gleaned from
the following portion of his testimony:

Q But you stated that the technical description falls

squarely to the Tulao River. What I am after is the
condition of the land when the application was made.
Do you have that in your records? "

A Yes sir.

Q Now, if I show the certificate of title that covered the

portion of this land, will you agree with me that the
technical description is the same as that appearing in
your record?

A Yes, they are the same.

Q Mr. Luis, we have the technical description

appearing in the certificate of title which you admitted
to be the same as appearing in your record plotted,
and it appears that the same land covered by the
description falls squarely on the river? Is it still on the
side of the river or in the river itself? I am referring to
the encroachment No. 5 by Agustin Bato.

A No, if this encroachment made by Agustin Bato is

the same land as described in the technical
description from the title, then it is within the river."
 Moreover, Section 39 of Act No. 496, in defining the scope and
efficacy of a certificate of title under the Torrens System, established
some exceptions which the force of said title does not reach or affect.
Among them are properties of the public domain. Since the portion
appropriated is of public dominion, registration under Act No. 496 did
not make the possessor a true owner thereof. (Celso Ledesma v. The
Municipality of Iloilo, Concepcion Lopez, Maximo M. Kalaw and wife,
and Julia Ledesma, defendants, 49 Phil. 769). (pp. 1-2, Decision in
RA-2056-37)

In effect, the Secretary passed judgment only to the extent that, although the encroachments
were inside titled properties, they are within the bed of a river. With this factual finding, he
declared the encroachments, converted into fishponds within the Tulao River, as prohibited
and ordered their removal pursuant to his authority under Republic Act 2056. He never
declared that the titles of the petitioners over the lots in question were null and void.

The Secretary's authority to determine questions of fact such as the existence of a river even
inside titled properties was recognized in the cases of Lovina v. Moreno, (9 SCRA 557) and
Taleon vs. Secretary of Public Works and Communications (20 SCRA 69). We stated that
the fact-finding power of the Secretary of Public Works and Communications is merely
"incidental to his duty to clear all navigable streams of unauthorized constructions and,
hence its grant did not constitute an unlawful delegation of judicial power. ... that although
the titles were silent as to the existence of any stream inside the property, that did not confer
a right to the stream, it being of a public nature and not subject to private appropriation, even
by prescription." In the instant cases, the residents along the Tulao River complained about
obstructions on the river. From a width of 70 to 105 meters, the river had been reduced to a
width of only 10 to 15 meters. The river was navigable and even at low-tide was two to three
meters deep.

As regards the lower court's finding that the dikes designated as Encroachments Nos. 1 and
2 were constructed under the petitioners' Fishpond Permit issued by the Bureau of Fisheries
in 1948 and, therefore, must be respected, the Secretary counters that such issuance of
fishpond permit did not preclude him from conducting due investigation pursuant to his
authority under Republic Act 2056.

We agree.

Section 1 of Republic Act 2056 is explicit in that "Any provision or provisions of law to the
contrary notwithstanding, the construction or building of dams, dikes ... which encroaches
into any public navigable river, stream, coastal waters and any other navigable public waters
or waterways ... shall be ordered removed as public nuisance or as prohibited construction
as herein provided ... The record shows that the petitioners' fishpond permit was issued in
1948 while the Act took effect on June 3, 1958. Therefore, the Secretary's more specific
authority to remove dikes constructed in fishponds whenever they obstruct or impede the
free passage of any navigable river or stream or would cause inundation of agricultural areas
(Section 2, Republic Act 2056) takes precedence. Moreover, the power of the Secretary of
Public Works to investigate and clear public streams from unauthorized encroachments and
obstructions was granted as early as Act 3708 of the old Philippine Legislature and has been
upheld by this Court in the cases of Palanca v. Commonwealth (69 Phil. 449) and Meneses
v. Commonwealth (69 Phil. 647). The same rule was applied in Lovina v. Moreno, (supra)
Santos etc., et al. v. Secretary of Public Works and Communications (19 SCRA 637).
All in all, we find no grave abuse of discretion or an illegal exercise of authority on the part of
the Secretary of Public Works and Communications in ordering the removal of the
encroachments designated as Nos. 1, 2, 3, 4 and 5 of Exhibit "A".

The rules of due process were observed in the conduct of investigation in the two cases. The
parties concerned were all notified and hearings of the two cases were conducted by the
Secretary through the City Engineer of Dagupan City. All parties were given opportunity to
present evidence to prove their claims after which the Secretary rendered separate decisions
pursuant to Republic Act 2056.

The factual findings of the Secretary are substantiated by evidence in the administrative
records. In the absence of any illegality, error of law, fraud or imposition, none of which were
proved by the petitioners in the instant case, said findings should be respected. (Lovina v.
Moreno, supra; Santos, etc., et al. v. Secretary of Public Works and Communications, supra;
See also Borja v. Moreno, 11 SCRA 568; Taleon v. Secretary of Public Works and
Communications, 20 SCRA 69).

WHEREFORE, the instant appeal is GRANTED. The questioned decision of the Court of
First Instance of Pangasinan is REVERSED and SET ASIDE. The decisions of the then
Secretary of Public Works and Communications in Cases No. RA 2056-26 and No. RA-2056-
37 are REINSTATED.

SO ORDERED.

Fernan (Chairman), Feliciano, Bidin and Cortes, JJ., concur.

GSIS v CSC

EN BANC

G.R. No. 96938 October 15, 1991

GOVERNMENT SERVICE INSURANCE SYSTEM (GSIS), petitioner,

vs.
CIVIL SERVICE COMMISSION, HEIRS OF ELIZAR NAMUCO, and HEIRS OF EUSEBIO
MANUEL, respondents.

Benigno M. Puno for private respondents.

Fetalino, Llamas-Villanueva and Noro for CSC.

NARVASA, J.:

In May, 1981, the Government Service Insurance System (GSIS) dismissed six (6)
employees as being "notoriously undersirable," they having allegedly been found to be
connected with irregularities in the canvass of supplies and materials. The dismissal was
based on Article IX, Presidential Decree No. 807 (Civil Service Law) 1 in relation to LOI 14-A
and/or LOI No. 72. The employees' Motion for Reconsideration was subsequently denied.

Five of these six dismissed employees appealed to the Merit Systems Board. The Board
found the dismissals to be illegal because effected without formal charges having been filed
or an opportunity given to the employees to answer, and ordered the remand of the cases to
the GSIS for appropriate disciplinary proceedings.

The GSIS appealed tothe Civil Service Commission. By Resolution dated October 21, 1987,
the Commission ruled that the dismissal of all five was indeed illegal and disposed as
follows:

WHEREFORE, it being obvious that respondents' separation from the service

is illegal, the GSIS is directed to reinstate them with payment of back salaries
and benefits due them not later than ten (10) days from receipt of a copy
hereof, without prejudice to the right of the GSIS to pursue proper disciplinary
action against them. It is also directed that the services of their replacement
be terminated effective upon reinstatement of herein respondents.

xxx xxx xxx

Still unconvinced, the GSIS appealed to the Supreme Court (G.R. Nos. 80321-22). Once
more, it was rebuffed. On July 4, 1988 this Court's Second Division promulgated a
Resolution which:
 a) denied its petition for failing to show any grave abuse of discretion on the
part of the Civl Service Commission, the dismissals of the employees having
in truth been made without formal charge and hearin, and

b) declared that reinstatement of said five employees was proper, "without

prejudice to the right of the GSIS to pursue proper disciplinary action against
them;"

c) MODIFIED, however, the challenged CSC Resolution of October 21, 1987

"by elminating the payment of back salaries to private respondents
(employees) until the outcome of the disciplinary proceedings is known,
considering the gravity of the offenses imputed to them ..., 2
d) ordered reinstateement only of three employees, namely: Domingo Canero, Renato Navarro and Belen Guerrero, "it appearing tht respondents Elizar Namuco and Eusebio
Manuel have since passed away." 3

On January 8, 1990, the aforesaid Resolution of July 4, 1988 having become final, the heirs of Namuco and Manuel filed a motion for
execution of the Civil Service Commission Resolution of October 21, 1987, supra. The GSIS opposed the motion. It argued that the CSC
Resolution of October 21, 1987 — directing reinstatement of the employees and payment to them of back salaries and benefits — had
been superseded by the Second Division's Resolution of July 4, 1988 — precisely eliminating the payment of back salaries.

The Civil Service Commission granted the motion for execution in an Order dated June 20, 1990. It accordingly directed the GSIS "to pay
the compulsory heirs of deceased Elizar Namuco and Eusebio Manuel for the period from the date of their illegal separation up to the date
of their demise." The GSIS filed a motion for reconsideration. It was denied by Order of the CSC dated November 22, 1990.

Once again the GSIS has come to this Court, this time praying that certiorari issue to nullify the Orders of June 20, 1990 and November 22,
1990. Here it contends that the Civil Service Commission has no pwer to execute its judgments and final orders or resolutions, and even
conceding the contrary, the writ of execution issued on June 20, 1990 is void because it varies this Court's Resolution of July 4, 1988.

The Civil Service Commission, like the Commission on Elections and the Commission on Audit, is a consitutional commission invested by the Constitution and relevant laws not only with authority to administer the civil

but also with quasi-judicial powers. 5 It has the authority to hear and decide
service, 4

administrative disciplinary cases instituted directly with it or brought to it on appeal. 6 The

Commission shall decide by a majority vote of all its Members any case or matter brought
before it within sixty days from the date of its submission for decision it within sixty days from
the date of its submission for on certiorari by any aggrieved party within thirty days from
receipt of a copy thereof. 7 It has the power, too, sitting en banc, to promulgate its own rules
concerning pleadings and practice before it or before any of its offices, which rules should
not however diminish, increase, or modify substantive rights. 8
On October 9, 1989, the Civil Service Commission promulgated Resolution No. 89-779 adopting, approving and putting into effect simplified rules of procedure on administrative disciplinary and protest cases, pursuant

Those rules provide, among other things,

tothe authority granted by the constitutional and statutory provisions above cited, as well as Republic Act No. 6713. 9

10
that decision in "administrative disciplinary cases" shall be immediately executory unless a
motion for reconsideration is seasonably filed. If the decision of the Commission is brought to
the Supreme Court on certiorari, the same shall still be executory unless a restraining order
or preliminary injunction is issued by the High Court." 11 This is similar to a provision in the
former Civil Service Rules authorizing the Commissioner, "if public interest so warrants, ...
(to) order his decision executed pending appeal to the Civil Service Board of Appeals." 12 The
provisions are analogous and entirely consistent with the duty or responsibility reposed in the
Chairman by PD 807, subject to policies and resolutions adopted by the Commission, "to
enforce decision on administrative discipline involving officials of the Commission," 13 as well
as with Section 37 of the same decree declaring that an appeal to the Commission 14 "shall
not stop the decision from being executory, and in case the penalty is suspension or
removal, the respondent shall be considered as having been under preventive suspension
during the pendency of the appeal in the event he wins an appeal."

In light of all the foregoing consitutional and statutory provisions, it would appear absurd to
deny to the Civil Service Commission the power or authority or order execution of its
decisions, resolutions or orders which, it should be stressed, it has been exercising through
the years. It would seem quite obvious that the authority to decide cases is inutile unless
accompanied by the authority to see taht what has been decided is carried out. Hence, the
grant to a tribunal or agency of adjudicatory power, or the authority to hear and adjudge
cases, should normally and logically be deemed to include the grant of authority to enforce or
execute the judgments it thus renders, unless the law otherwise provides.

In any event, the Commission's exercise of that power of execution has been sanctioned by
this Court in several cases.

In Cucharo v. Subido, 15 for instance, this Court sustained the challenged directive of the Civil
Service Commissioner, that his decision "be executed immediately 'but not beyond ten days
from receipt thereof ...". The Court said:

As a major premise, it has been the repeated pronouncement of this

Supreme Tribunal that the Civil Service Commissioner has the discretion
toorder the immediate execution in the public interst of his decision
separating petitioner-appellant from the service, always sbuject however to
the rule that, in the event the Civil Service Board of Appeals or the proper
court determines that his dismissal is illegal, he should be paid the salary
corresponding to the period of his separation from the service unitl his
reinstatement.

Petitioner GSIS concedes that the heirs of Namuco and Manuel "are entitled tothe
retirement/death and other benefits due them as government employees" since, at the time
of their death, they "can be considered not to have been separated from the separated from
the service." 16
It contend, however, that since Namuco and Manuel had not been "completely exonerated of the administrative charge filed against them — as the filing of the proper disciplinary action was yet to have been taken had
death not claimed them" — no back salaries may be paid to them, although they "may charge the period of (their) suspension against (their) leave credits, if any, and may commute such leave credits to money

this, on the authority of this Court's decision in Clemente v. Commission on Audit. 18 It is

value;" 17

in line with these considerations, it argues, that the final and executory Resolution of this
Court's Second Division of July 4, 1988 should be construed; 19 and since the Commission's
Order of July 20, 1990 maikes a contrary disposition, the latter order obviously cannot prevail
and must be deemed void and ineffectual.

This Court's Resolution of July 4, 1988, as already stated, modified the Civil Service
Commission's Resolution of October 21, 1987 — inter alia granting back salaries tothe five
dismissed employees, including Namuco and Manuel — and pertinently reads as follows:

We modify the said Order, however, by eliminating the payment of back

salaries to private respondents until the outcome of the disciplinary
proceedings is known, considering the gravity of the offense imputed to them
in connection with the irregularities in the canvass of supplies and materials
at the GSIS.
 The reinstatement order shall apply only to respondents Domingo Canero,
Renato Navarro and Belen Guerrero, it appearing that respondents Elizar
Namuco and Eusebio Manuel have since passed away. ....

On the other hand, as also already stated, the Commission's Order of June 20, 1990
directed the GSIS "to pay the compulsory heirs of deceased Elizar Namuco and Eusebio
Manuel for the period from the date of their illegal separation up to the date of their demise."

The Commission asserted that in promulgating its disparate ruling, it was acting "in the
interest of justice and for other humanitarian reasons," since the question of whether or not
Namuco and Manuel should receive back salaries was "dependent on the result of the
disciplinary proceedings against their co-respondents in the administrative case before the
GSIS," and since at the tiem of their death, "no formal charge ... (had) as yet been made, nor
any finding of their personal culpability ... and ... they are no longer in a position to refute the
charge."

The Court agrees that the challenged orders of the Civil Service Commission should be
upheld, and not merely upon compassionate grounds, but simply because there is no fair
and feasible alternative in the circumstances. To be sure, if the deceased employees were
still alive, it would at least be arguable, positing the primacy of this Court's final dispositions,
that the issue of payment of their back salaries should properly await the outcome of the
disciplinary proceedings referred to in the Second Division's Resolution of July 4, 1988.

Death, however, has already sealed that outcome, foreclosing the initiation of disciplinary
administrative proceedings, or the continuation of any then pending, against the deceased
employees. Whatever may be said of the binding force of the Resolution of July 4, 1988 so
far as, to all intents and pursposes, it makes exoneration in the adminstrative proceedings a
condition precedent to payment of back salaries, it cannot exact an impossible performance
or decree a useless exercise. Even in the case of crimes, the death of the offender
exteinguishes criminal liability, not only as to the personal, but also as to the pecuniary,
penalties if it occurs before final judgment. 20 In this context, the subsequent disciplinary
proceedings, even if not assailable on grounds of due process, would be an inutile, empty
procedure in so far as the deceased employees are concerned; they could not possibly be
bound by any substatiation in said proceedings of the original charges: irrigularities in the
canvass of supplies and materials. The questioned order of the Civil Service Commission
merely recognized the impossibility of complying with the Resolution of July 4, 1988 and the
legal futility of attempting a post-mortem investigation of the character contemplated.

WHEREFORE, the petition is DISMISSED, without pronouncement as to costs.

SO ORDERED.

Fernan, C.J., Gutierrez, Jr., Cruz, Paras, Feliciano, Padilla, Bidin, Griño-Aquino, Medialdea,
Regalado and Davide, Jr., JJ., concur.
Melencio-Herrera, J., is on leave.

# Footnotes

1 Sec. 40 of said PD 807 (sub-head, Summary Proceedings) provides that

"No formal investigation is necessary, and the respondent may be
immediately removed or dismissed if any of the following circumstances is
present: (a) When te charge is serious and the evidence of guilt is stron; (b)
When the respondent is a recidivist or has been repeatedly charged and
there is reasonable ground to believe that he is guilty of the present charge;
(c) When the respondent is notoriously undesirable. ...." (Emphasis supplied.)
However, said Section 40 has since been repealed by R.A. No. 6654,
approved on May 20, 1988 and published in the Official Gazette on May 30,
1988 (Abalos v. Civil Service Commission, et al., G.R. No. 95861, April 19,
1991)

2 Emphasis supplied.

3 Emphasis supplied.

4 SECS. 1, (1), 3, ART. IX-B, 1987 Constitution.

5 Secs. 1, 6, 7, ART, IX-A, 1987 Constitution; SEE Secs. 659-661, Revised

Administrative Code and CA 598 (repealed by RA 2260, which act in turne
repealed by PD 807.

6 SEC. 9(j), PD 807; SEE Sec. 16 (f), (g), (i) and (j); and SECS. 32 and 33 of
RA 2260.

7 SEC. 7, ART. IX Constitution.

8 SEC. 6, ART. IX, Constitution; SEE Sec. 9 (b), PD 807.

9 "An Act Establishing a Code of Conduct and Ethical Standards for Public
Officials and Employees, ...," requiring inter alia that public officials and
employees shall simplify and systematize policy, rules and procedures and
avoid red tape to better serve the public.

10 SEC. 3, Rule X (Decision) under the sub-head, "A. Rules on

Administrative Disciplinary Cases"

11 As regards "protest cases," the Rules similarly provide that decisions

therein of the Commission "shall be executory, unless a motion for
reconsideration is seasonably filed, in which case the execution of the
decision shall be held in abeyance" (Sec. 1, Rule VIII ["Execution of
Decision"] under the sub-head, "B. Rules on Protest Cases."

12 SEC. 28, under the sub-head, "D. Procedure in Administrative

Proceedings," Rule XVIII ("Discipline")

13 Sec. 10 (a) (3)

14 In "administrative disciplinary cases involving the imposition of a penalty

of suspension for more than thirty days, or fine in an amount exceeding thirty
days' salary, demotion in rank or salary, or transfer, removal or dismissal
from office"
15 37 SCRA 523, citing SEC. 35, Civil Service of Act of 1959; Yarcia v. City
of Baguio, 33 SCRA 419; Trocio v. Subido, 20 SCRA 354; Cabigao v. del
Rosario, 6 SCRA 578 (1962); Austria v. Auditor General, 19 SCRA 79, 83-84;
Gonzales v. Hernandez, 2 SCRA 228, 233-234).

16 Rollo, p. 7; p. 40; p. 8 of petitioner's "Reply to Comment" dated May, 29,

1991.

17 Id., p. 7; pp. 39-40; 7-8, Id.

18 128 SCRA 297, citing Octot v. Ibanez, et al., 111 SCRA 79 and San
Miguel Corporation v. Secretary of Labor, 64 SCRA 56.

19 SEE footnotes 2 and 3 and related text, supra.

20 ART. 89 (No. 1), Revised Penal Code.

Besaga v Acosta

SECOND DIVISION

G.R. No. 194061, April 20, 2015

EMELIE L. BESAGA, Petitioner, v. SPOUSES FELIPE ACOSTA AND

LUZVIMINDA ACOSTA AND DIGNA MATALANG COCHING, Respondent.

DECISION

BRION, J.:

We resolve the present petition for review on certiorari1 assailing the October 30,
2009 decision2 and the October 1, 2010 resolution3 of the Court of Appeals (CA)
in CA-G.R.'SP No. 100616.

The CA affirmed the decision4 of the Office of the President setting aside the
resolution5 of the Department of Environment and Natural Resources (DENR)
Secretary. The DENR Secretary earlier affirmed the orders dated December 1,
20036 and July 26, 20047 of the DENR Regional Executive Director (RED),
Region IV-B-MIMAROPA.8

The Antecedents9

The dispute involved Lot Nos. 4512 and 4514 located at Barangay Port Barton,
San Vicente, Palawan, which are parts of a six-hectare timberland.

On February 11, 2003, Emelie L. Besaga (petitioner) applied for a Special Land
Use Permit (SLUP) for Lot Nos. 4512, 4513 and 4514 for a bathing
establishment. According to the petitioner, the lots are covered by Tax
Declaration No. 048 in the name of her father, the late Arturo Besaga, Sr. who
allegedly occupied the land during his lifetime.

On February 13, 2003, spouses Felipe and Luzviminda Acosta (respondent

spouses) also applied for SLUP for a bathing establishment over Lot Nos. 4512
and 4514. According to the respondent spouses, they acquired Lot Nos. 4512
and 4514 through a March 19, 1998 Affidavit of Waiver of Rights executed by
Rogelio Maranon, a registered survey claimant, and a February 9, 1999 Joint
Affidavit of Waiver of Rights, executed by Arturo Besaga, Jr.,10 and Digna
Matalang Coching (another respondent in this case), also registered survey
claimants.

On September 10, 2003, the respondents challenged the petitioner's SLUP

application before the DENR. On December 1, 2003, the RED issued the order
giving due course to the petitioner's SLUP application and rejecting the
respondents' SLUP application. The RED later denied the respondents' motion
for reconsideration on July 26, 2004.

The respondent spouses received the July 26, 2004 order on August 16, 2004.
They tiled on. August 25, 2004, through registered mail, an Appeal
Memorandum to the Office of the DENR Secretary, copy furnished the
petitioner's lawyer and the Office of the RED. The appeal fee was paid on
September 10, 2004. Respondent Digna Matalang Coching received the July 26,
2004 order on August 30, 2004 and filed her appeal (which adopted the appeal of
the respondent spouses) on September 16, 2004.

While the appeal was pending in the Office of the DENR Secretary, the RED
issued a Certificate of Finality11 declaring the December 1, 2003 and July 26,
2004 orders final and executory for failure of the respondents to file a Notice of
Appeal.

On December 10, 2004, the Provincial Environment and Natural Resources

Officer (PENRO) issued the SLUP12 to the petitioner covering Lot Nos. 4512,
4513 and 4514. On November 18, 2005, the SLUP was converted into a Special
Forest Land-Use Agreement for Tourism Purposes (FLAgT).

On August 6, 2006, the DENR Secretary rendered a decision (i) vacating the
December 1, 2003 and July 26, 2004 orders of the RED; (ii) amending the
coverage of the SLUP of the petitioner to cover Lot No. 4513 only; and (iii) giving
due course to the SLUP of the respondent spouses to cover Lot Nos. 4512 and
4514.

Acting on the motion for reconsideration13 filed by the petitioner, the DENR
Secretary reversed his August 6, 2006 decision on October 17, 2006 and held
that the December 1, 2003 and July 26, 2004 orders of the RED have attained
finality because: (i) the respondent spouses filed an Appeal Memorandum,
instead of a Notice of Appeal; (ii) the Appeal Memorandum was directly filed with
the DENR Secretary and not with the RED; and (iii) the respondent spouses
failed to pay the required appeal fees within the reglementary period.

The Office of the President reversed the October 17, 2006 resolution of the
DENR Secretary.

The CA, through the assailed decision and resolution, affirmed the decision of
the Office of the President.

The petitioner filed the present petition to contest the CA's ruling.

The DENR's Findings

The RED, relying mainly on the report14 prepared by the chief of Forest
Management Services ruled in favor of the petitioner.

The report gave credence to Tax Declaration No. 048,15 which purportedly
showed that Lot Nos. 4512, 4513 and 4514 are parts of the six (6) hectare
timberland occupied by the petitioner's father during his lifetime. The RED also
gave weight to the statements of two former Barangay Captains of Port Barton
and the document signed by the alleged occupants of the said six (6) hectare
timberland supporting the petitioner's claim.

The DENR Secretary reversed the orders of the RED in his decision dated
August 6, 2006.16

He ruled that the petitioner cannot claim preferential right to apply for an SLUP
over Lot Nos. 4512 and 4514 in view of her sweeping allegation that the said lots
are part of the six (6) hectare timberland, which his father possessed in his
lifetime and whose possession she tacked. The DENR Secretary asked: if indeed
the petitioner tacked the possession of his father and she was the actual
occupant over Lot Nos. 4512 and 4514, why was she not made the survey
claimants of the said lots?

The DENR Secretary found that the respondent spouses have a preferential right
over Lot Nos. 4512 and 4514. Rogelio Maranon, the registered survey claimant
and occupant of Lot No. 4512, waived and transferred his right over the lot in
favor of the respondent spouses in a duly-notarized Affidavit of Waiver of Rights.
The respondent spouses derived their right over Lot No. 4514 from Arturo
Besaga, Jr. and Digna Matalang Coching, the registered survey claimants, who
executed a duly-notarized Joint-Affidavit of Waiver of Rights over the said lot.
The DENR Secretary held that these are the legal and vital documents
(disregarded by the chief of Forest Management Services) which support the
preferential rights of the respondent spouses over Lot Nos. 4512 and 4514.

The DENR Secretary, however, reversed his August 6, 2006 decision in a

resolution17 dated October 17, 2006. He ruled that the respondent spouses failed
to perfect the appeal because they filed a Memorandum of Appeal instead of a
Notice of Appeal contrary to Section 1(a) of DENR Department Administrative
Order (DAO) No. 87, series of 1990.18

The Office of the President's Ruling19

The Office of the President reversed the October 17, 2006 resolution of the
DENR Secretary.

It held that the orders of the RED did not become final because there is no law,
rule or regulation prohibiting an appellant to file an appeal memorandum, instead
of a notice of appeal, to the office concerned. It further held that the appeal
memorandum itself serves as a sufficient notice of the party's intention to elevate
the case to a higher authority. The Office of the President observed that in a
plethora of cases, notices of appeal are filed directly with the DENR, rather than
with the RED, which practice has not since been prohibited nor made as a
ground for the outright dismissal of the appeal. Finally, it found that the
respondent spouses paid the appeal fees. All of these negate the finding that the
respondent spouses did not perfect their appeal to the DENR Secretary.

As to the merits of the case, the Office of the President found that Tax
Declaration No. 048 did not cover Lot Nos. 4512, 4513 and 4514 but Lot No.
4741, which is entirely different and distinct from the contested lots. It gave
credence to the Affidavit of Waiver of Rights executed by Rogelio Maranon and
the Joint Affidavit of Waiver of Rights jointly executed by Arturo Besaga, Jr. and
Digna Matalang Coching in favor of the respondent spouses. No countervailing
proof was presented by the petitioner to impugn these affidavits.

The CA's Ruling

The CA sustained the Office of the President. Citing decisions of this Court, it
held that rules of procedure are construed liberally in proceedings before
administrative bodies. They are not to be applied in a very rigid and technical
manner, as they are used only to hold secure and not to override substantial
justice.

The CA ruled that the orders of the RED have not attained finality.

The Petition

The petitioner seeks reversal of the CA decision and resolution for being contrary
to law and jurisprudence. She submits that the respondent spouses failed to
perfect an appeal in the administrative proceedings. She argues that the
perfection of an appeal in the manner and within the period prescribed by law is
not only mandatory but also jurisdictional and that failure to conform to the rules
will render the judgment sought to be reviewed final and unappealable. She adds
that the liberal interpretation of the rules has no clear application in the present
case because the respondents failed to adequately explain their non-compliance
therewith.

As is proper under Rule 45 of the Rules of Court, the petitioner does not raise
any factual questions.

Respondent's Comment20

The respondent spouses ask for the petition's dismissal for lack of merit. They
submit that the CA acted in accordance with law and jurisprudence in upholding
the ruling of the Office of the President.
They argue that to dismiss the case on the mere ground of technicalities would
mean to dispense with the determination of the party having preferential right on
the disputed lots and could cause the perpetuation of a wrong. They maintain
that the cases cited by the petitioner, where procedural rules were strictly
enforced by this Court, involved violation of the rules either before the trial court,
the CA or before this Court, and not before an administrative agency like the
DENR. In sum, the respondent spouses contend that the orders of the RED have
not attained finality, thus, said orders are still subject to reversal, amendment or
modification on appeal.

Issues

The petitioner raises the following issues:21

I. WHETHER THE APPEAL INTERPOSED BY THE

RESPONDENTS WAS CORRECTLY FILED TO THE DENR
SECRETARY AND NOT TO THE REGIONAL OFFICE AS
PROVIDED UNDER SECTION 1 (A) OF DAO NO. 87, SERIES OF
1990;

II. WHETHER OR NOT RESPONDENTS' APPEAL TO THE OFFICE

OF THE DENR SECRETARY WAS PERFECTED DESPITE OF
THEIR FAILURE TO COMPLY WITH SECTION 1 (A) OF DAO NO.
87, SERIES OF 1990;

III. WHETHER THE LIBERAL INTERPRETATION OF THE RULES

ON APPEAL INVOLVING ADMINISTRATIVE PROCEEDINGS
WAS CORRECTLY APPLIED BY THE HONORABLE COURT OF
APPEALS IN THE CASE OF RESPONDENTS;

IV. WHETHER� THE� ASSAILED� ORDERS,� ISSUED� ON

DECEMBER 1, 2003 AND JULY 26, 2004, OF THE REGIONAL
EXECUTIVE DIRECTOR OF DENR REGION IV-MIMAROPA IN
DENR CASE NO. M-003-03-F, WERE ALREADY FINAL AND
EXECUTORY;

V. WHETHER THE PERFECTION OF APPEAL IN ACCORDANCE

WITH SECTION 1 (A) OF DAO NO. 87, SERIES OF 1990 IS NOT
ONLY MANDATORY BUT JURISDICTIONAL; AND

VI. WHETHER THE ORDERS DATED DECEMBER 1, 2003 AND

JULY 23, 2014 CAN STILL BE MODIFIED AND SET ASIDE BY
THE HONORABLE COURT OF APPEALS.

The resolution of these issues hinges on whether the orders of the RED dated
December 1, 2003 and July 26, 2004 have attained finality because the
respondents filed a Memorandum of Appeal directly to the DENR Secretary
instead of a Notice of Appeal to the RED.

The Court's Ruling

We deny the petition.

The petitioner insists that the filing of a Memorandum of Appeal instead of a

Notice of Appeal was fatal to the respondent spouses' case.

We are not convinced of the merits of this position.

The crux of the dispute is Section 1(a) of DAO No. 87. It provides:

Section 1. Perfection of Appeals. - a) Unless otherwise provided by law or

executive order, appeals from the decisions/orders of the DENR Regional Offices
shall be perfected within fifteen (15) days after the receipt of a copy of the
decision/order complained of by the party adversely affected, by tiling with
the Regional Office which adjudicated the case a notice of appeal, serving
copies thereof upon the prevailing party and Office of the Secretary, and
paying the required fees. [Emphasis ours.]

According to the petitioner, this provision is mandatory and jurisdictional. She

argues that respondents filed a defective appeal because: (i) they filed a
Memorandum of Appeal instead of a Notice of Appeal; (ii) directly to the DENR
and not to the Regional Office, which adjudicated the case; and (iii) no docket fee
was paid.22

The petitioner cites jurisprudence to bolster her argument that the perfection of
an appeal in the manner and within the period prescribed by law is not oniy
mandatory but also jurisdictional.

We accordingly review the cited cases to determine the correctness of the

petitioner's submitted position.

In Asian Spirit Airlines v. Bautista,23 the CA dismissed the appeal because the
appellant failed to file his brief within the time provided by the Rules of Court. The
appellant not only neglected to file its brief within the stipulated time but also
failed to seek an extension of time based on a cogent ground before the
expiration of the time sought to be extended. In sustaining the CA, we held that
liberality in the application of rules of procedure may not be invoked if it will result
in the wanton disregard of the rules or cause needless delay in the administration
of justice.

In Land Bank of the Philippines v. Natividad,24 we affirmed the trial court when it
considered a motion for reconsideration pro forma for not containing a notice of
hearing. We held that a motion that does not contain the requisite notice of
hearing is nothing but a mere scrap of paper. The clerk of court does not even
have the duty to accept it, much less to bring it to the attention of the presiding
judge.

In Videogram Regulatory Board v. CA,25 the Regional Trial Court granted the
petitioner a non-extendible 15-day period to file a Petition for Review from the
decision of the Metropolitan Trial Court. The petitioner failed to file the petition
despite the extension. We held that the requirements for perfecting an appeal
within the reglementary period specified in the law must be strictly followed as
they are considered indispensable interdictions against needless delays and for
orderly discharge of judicial business.

In MC Engineering, Inc. v. NLRC,26 we affirm the CA when it denied due course

to the petitioner's appeal because of its failure to explain why another mode of
service other than personal service was resorted to. We held that an affidavit of
service is required merely as proof that service has been made to the other
parties in a case. It is a requirement totally different from the requirement that an
explanation be made if personal service of pleadings was not resorted to.

Finally, in Artistica Ceramica v. Ciudad Del Carmen Homeowner's Association,

Inc.,27 the issue was whether the petitioner properly filed a petition for certiorari
under Rule 65 instead of an appeal by certiorari under Rule 45 of the Rules of
Court. We held that as a rule, the remedy from a judgment or final order of the
CA is appeal by certiorari under Rule 45. The failure to file the appeal within the
15-day reglementary period under Rule 45 is not an excuse to use Rule 65. Rule
65 is not a substitute for a lost appeal,

In sum, all these cases strictly applied the rule that the right to appeal is a mere
statutory right and the party who avails of such right must comply with the law.
Otherwise, the right to appeal is lost.

To reiterate, these involved violations of the Rules of Court while the cases were
pending in the trial court, the CA or before this Court. They do not involved
violation of administrative rules of procedure. They are not strictly applicable
in the present case.

The Nature of Administrative

Rules of Procedure

It is true that the right to appeal, being merely a statutory privilege, should be
exercised in the manner prescribed by law. This has been consistently held in
relation to non-observance by a party-litigant of the Rules of Court and failure to
offer a valid and acceptable excuse for non-compliance.

Yet, it is equally true that in proceedings before administrative bodies the general
rule has always been liberality.

Strict compliance with the rules of procedure in administrative cases is not

required by law.28� Administrative rules of procedure should be construed
liberally in order to promote their object to assist the parties in obtaining a just,
speedy and inexpensive determination of their respective claims and defenses.29

In Birkenstock Orthopaedie GmbH and Co. KG v. Philippine Shoe Expo

Marketing Corp.,30 we held:

It is well-settled that the rules of procedure are mere tools aimed at facilitating the
attainment of justice, rather than its frustration. A strict and rigid application of the
rules must always be eschewed when it would subvert the primary objective of
the rules, that is, to enhance fair trials and expedite justice. Technicalities
should never be used to defeat the substantive rights of the other party.
Every party-litigant must be afforded the amplest opportunity for the proper and
just determination of his cause, free from the constraints of technicalities, x x x
This is especially true with quasi-judicial and administrative bodies, such
as the IPO, which are not bound by technical rules of procedure. [Emphasis
supplied.]

The liberality of procedure in administrative actions, however, is subject to

limitations imposed by the requirements of due process.31

Administrative due process means reasonable opportunity to be heard. As held

in Vivo v. Pagcor.32

The observance of fairness in the conduct of any investigation is at the very heart
of procedural due process. The essence of due process is to be heard, and, as
applied to administrative proceedings, this means a fair and reasonable
opportunity to explain one's side, or an opportunity to seek a
reconsideration of the action or ruling complained of. Administrative due
process cannot be fully equated with due process in its strict judicial sense, for in
the former a formal or trial-type hearing is not always necessary, and technical
rules of procedure are not strictly applied. [Emphasis supplied.]

Where due process is present, the administrative decision is generally

sustained.33

Thus, while this Court allows liberal construction of administrative rules of

procedure to enhance fair trial and expedite justice, we are keenly aware that
liberal construction has no application when due process is violated. The crucial
point of inquiry in cases involving violation of administrative rules of procedure is
whether such violation disregards the basic tenets of administrative due process.
If the gravity of the violation of the rules is such that due process is breached, the
rules of procedure should be strictly applied. Otherwise, the rules are liberally
construed.

Liberal Construction as
Applied in the Present Case

It is undisputed that the respondent spouses, instead of filing a Notice of Appeal

to the RED, filed a Memorandum of Appeal to the DENR Secretary within the
fifteen (15)-day reglementary period. They paid the appeal fee, although beyond
the fifteen (15)-day period. These violate Section 1 (a) of DAO No. 87 which
requires the filing of a Notice of Appeal and the payment of the appeal fee within
the reglementary period.

Do these errors breach due process so as to call for the strict application of
administrative rules of procedure? Is there basis for the liberal construction of the
rules?

We uphold liberality.

First, there is no violation of due process. In fact, to sustain the position of the
petitioner and strictly apply Section l(a) of DAO No. 87 may violate the
respondent spouses right to due process as this would result to a denial of their
right to appeal.

We stress that the respondent spouses appealed within the reglementary

period. The appeal was timely filed, albeit not directly to the office which issued
the order sought to be reviewed. They also paid the full appeal fees although
beyond the 15-day period.

We hold that these procedural lapses were neither prejudicial nor unfair to the
petitioner. The petitioner's right to due process was not breached.

Notably, both the petitioner and the RED were furnished copies of the
Memorandum of Appeal, a fact that the petitioner did not deny.34

We agree with the observation of the Office of the President that the
Memorandum of Appeal essentially served the purpose of the Notice of Appeal.
The filing of the Memorandum of Appeal had the same practical effect had a
Notice of Appeal been filed: inform the RED that his order is sought to be
appealed to the DENR Secretary.

Significantly, the respondent spouses notified the petitioner of the filing of the
Memorandum of Appeal. The petitioner subsequently filed her opposition thereto.
When the DENR Secretary initially ruled in favor of the respondent spouses, the
petitioner tiled a motion for reconsideration of the said decision.

Clearly, the petitioner participated in every stage of the administrative

proceeding. Her right to be heard was not compromised despite the wrong mode
of appeal.

As to the late payment of the appeal fee, suffice it to say that this Court has
disregarded late payment of appeal fees at the administrative level in order to
render substantial justice.35

Second, the liberal construction of DAO No. 87 would serve its purpose, i.e.,
grant a party the right to appeal decisions of the Regional Offices to the DENR
Secretary in order for the latter to review the findings of the former. To disallow
appeal in this case would not only work injustice to the respondent spouses, it
would also diminish the DENR Secretary's power to review the decision of the
RED. It would deny the DENR Secretary the opportunity to correct, at the earliest
opportunity, "errors of judgment" of his subordinates. This is obviously not the
intent of DAO No. 87.

Finally, the petitioner failed to convince us why liberality should not be applied.
The petitioner does not claim that her right to due process was violated as a
result of the wrong mode of appeal. The petitioner merely asks this Court to
strictly construe DAO No. 87 and affirm the orders of the RED, which according
to her, have attained finality.

Between strict construction of administrative rules of procedure for their own

sake and their liberal application in order to enhance fair trials and expedite
justice, we uphold the latter. After all, administrative rules of procedure do not
operate in a vacuum. The rules facilitate just, speedy and inexpensive resolution
of disputes before administrative bodies. The better policy is to apply these rules
in a manner that would give effect rather than defeat their intended purpose.

WHEREFORE, premises considered, we DENY the petition and AFFIRM the

October 30, 2009 decision and October 1, 2010 resolution of the Court of
Appeals in CA-G.R. SP No. 100616, affirming the August 13, 2007 decision of
the Office of the President in O.P. Case No. 06-K-398.

SO ORDERED.

Carpio, (Chairperson), Del Castillo, Mendoza, and Leonen, JJ., concur.

Endnotes:

1 Rollo, pp. 3-27. The petition is hied under Mule 45 of the Rules of Court.

2Id. at 28-40. The assayed decision and resolution are penned by Associate
Justice Stephen C. Cruz, and concurred in by Associate Justice Jose C. Reyes,
Jr. and Associate Justice Estela M. Perlas-Bernabe (now a Member of this
Court).

3 Id. at 42-43.

4 Id. at 61-65. O.P. Case No. 06-K-398 dated August 13, 2007.

5 Id. at 157-162. The Resolution is dated October 17, 2006.

6 Id. at 104-106.

7 Id, at 107-108.

8MIMAROPA is Region IV-B composed of the provinces of Occidental Mindoro,

Oriental Mindoro, Marinduque, Romblon and Palawan (Executive Order No. 103
dated May 17, 2002).

9 Supra note 2, at 29-31.

10 Son of Arturo Besaga, Sr.

11Rollo, p. 114

12 Id. at 102.

13 Id. at 133-140.

14 Id. at 91-94.

15 Id. at 71.

16 Id. at 125-132.

17Supra note 5.

18Rollo,pp. 163-164. "Regulations Governing Appeals to the Office of the

Secretary from the Decisions/Orders of the Regional Offices" (DAO No. 87,
series of 1990).

19Supra note 4.

20Rollo,
pp. 224-241. Comment is dated February 24, 2011.� Respondent Digna
Matalang Coching filed her Manifestation on April 7, 2011 adopting, in toto; the
respondent spouses' Comment.
21Supra note 1, at 17-18.

22Supra note 1, at 18.

23 491 Phil. 476 (2005).

24 497 Phil. 738 (2005).

25 322 Phil. 820 (1996).

26 412 Phil 614(2001).

27 635 Phil. 21 (2010).

28Barcelona v. Lim, G.R. No. 189171, June 03, 2014.

29 Id.

30 G.R. No. 194307, November 20, 2013, 710 SCRA 474, 482.

31Spouses Aya-ay v. Arpaphil Shipping Corp., 576 Phil. 628 (2006).

32 G.R. No 187854, November 12, 2013, 709 SCRA 276, 281.

33Mangubat v. De Castro, 246 Phil. 620 (1998)

34 Supra note 2, at 30.

35See Adalim v. Taninas, et al., G.R. No., 198682, April 10, 2013, 695 SCRA
648.
Pison Arceo Agricultural and Development Corp v NLRC

THIRD DIVISION

G.R. No. 117890 September 18, 1997

PISON-ARCEO AGRICULTURAL and DEVELOPMENT CORPORATION,

petitioner,
vs.
NATIONAL LABOR RELATIONS COMMISSION and NATIONAL
FEDERATION OF SUGAR WORKERS-FOOD and GENERAL TRADE (NFSW-
FGT)/JESUS PASCO, MARTIN BONARES, EVANGELINE PASCO, TERESITA
NAVA, FELIXBERTO NAVA, JOHNNY GARRIDO, EDUARDO NUÑEZ and
DELMA NUÑEZ, respondents.

PANGANIBAN, J.:

In the proceedings before the labor arbiter, only the unregistered trade
name of the employer-corporation and its administrator/manager were
impleaded and subsequently held liable for illegal dismissal, backwages
and separation pay. On appeal, however, the National Labor Relations
Commission motu proprio included the corporate name of the employee as
jointly and severally liable for the workers' claims. Because of such
inclusion, the corporation now raises of due process and jurisdiction
before this Court.

The Case

Assailed in this petition for certiorari under Rule 65 of the Rules of Court is
the Decision1 of Public Respondent National Labor Relations Commission2
in NLRC Case No. V-0334-923 promulgated on September 27, 1993 and its
Resolution4 promulgated on September 12, 1994 denying reconsideration.
Affirming the decision5 dated September 2, 1992 of Executive Labor Arbiter
Oscar S. Uy, the impugned NLRC Decision disposed thus:6

WHEREFORE, judgment is hereby rendered affirming the

decision of Executive Labor Arbiter Oscar S. Uy, dated
September 2, 1992, subject to the amendments and
modification stated above and ordering the respondent-
appellant, Jose Edmundo Pison and the respondent Pison-
Arceo Agricultural and Development Corporation to pay
jointly and severally the claims for backwages and
 separation pay of the complainant-appellees in the above-
entitled case, except the claims of Danny Felix and Helen
Felix, in the amount specified below:

Name Backwages Separation Pay Total

1. Jesus Pasco P14,729.00 P12,818.06 P27,547.06

2. Evangeline 14,729.00 12,874.81 27,603.81

Pasco

3. Martin Bonares 14,729.00 9,035.06 23,764.06

4. Mariolita Bonares 14,729.00 8,455.00 23,184.00

5. Felixberto Nava 14,729.00 13,505.31 28,234.31

6. Teresita Nava 14,729.00 3,417.31 18,146.31

7. Johnny Garrido 8,489.00 4,463.94 12,952.94

8. Eduardo Nuñez 8,489.00 11,399.44 19,888.44

9. Delma Nuñez 8,489.00 9,507.94 17,996.94

In addition, the respondent-appellant and the respondent

corporation are ordered to pay attorney's fees equivalent to
ten (10%) percent of the total award.

The dispositive portion of the assailed Resolution, on the other hand, reads: 7

WHEREFORE, the decision in question is hereby modified in

the sense that the monetary award of Mariolita Bonares be
[sic] deleted. Except for such modification, the rest of the
decision stands.

Arguing that the National Labor Relations Commission did not have jurisdiction
over it because it was not a party before the labor arbiter, petitioner elevated this
matter before this Court via a petition for certiorari under Rule 65.

Acting on petitioner's prayer 8, this Court (First Division) issued on January 18,
1995 a temporary restraining order enjoining the respondents from executing the
assailed Decision and Resolution.

The Facts
As gathered from the complaint9 and other submissions of the parties filed with
Executive Labor Arbiter Oscar S. Uy, the facts of the case are as follows:

Together with Complainants Danny and Helen Felix, private respondents —

Jesus Pasco, Evangeline Pasco, Martin Bonares, Teresita Nava, Felixberto
Nava, Johnny Garrido, Eduardo Nuñez and Delma Nuñez, all represented by
Private Respondent National Federation of Sugar Workers-Food and General
Trade (NSFW-FGT) — filed on June 13, 1988 a complaint for illegal dismissal,
reinstatement, payment of backwages and attorney's fees against "Hacienda
Lanutan/Jose Edmundo Pison." Complainants alleged that they were previously
employed as regular sugar farm workers of Hacienda Lanutan in Talisay, Negros
Occidental. On the other hand, Jose Edmundo Pison claimed that he was merely
the administrator of Hacienda Lanutan which was owned by Pison-Arceo
Agricultural and Development Corporation.

As earlier stated, the executive labor arbiter rendered on September 2, 1992 a

decision in favor of the workers-complainants, the dispositive portion of which
reads:

WHEREFORE, premises considered, judgment is hereby

rendered ordering respondent Jose Edmundo Pison/Hda.
Lanutan, Talisay, Negros Occidental, to PAY the following
complainants their backwages (one year) plus separation
pay in the following amounts, to wit:

BACKWAGES
SEPARATION PAY
TOTAL

1. J. Pasco P14,729.00 P12,818.06 P27,547.06

2. E. Pasco 14,729.00 12,784.81 27,603.81

3. Bonares 14,729.00 8,404.56 23,133.56

4. F. Nava 14,729.00 13,505.31 28,234.31

5. T. Nava 14,729.00 3,427.31 18,146.31

6. J. Garrido 8,489.00 4,463.94 12,952.94

7. E. Nuñez 8,489.00 11,399.44 19,888.44

8. D. Nuñez 8,489.00 9,507.94 17,996.94

 plus ten percent (10%) of the total award as attorney's fees
in the amount of P17,550.34 or in the total amount of ONE
HUNDRED NINETY THREE THOUSAND FIFTY THREE
AND 71/100 (P193,053.71), all these amounts to be
deposited with this Office within ten (10) days from receipt of
this decision. The claim of complainants Danny and Helen
Felix are hereby DENIED for lack of merit.

In affirming the decision of the executive labor arbiter, public respondent ordered
"respondent-appellant, Jose Edmundo Pison and the respondent Pison-Arceo
Agricultural and Development Corporation to pay jointly and severally the claims
for backwages and separation pay" of private respondents. The motion for
reconsideration dated October 14, 1993 was apparently filed by Jose Edmundo
Pison for and on his own behalf only. However, Pison did not elevate his case
before this Court. The sole petitioner now before us is Pison-Arceo Agricultural
and Development Corporation, the owner of Hacienda Lanutan.

The Issue

Petitioner submits only one issue for our resolution: 10

Public Respondent NLRC acted without or in excess of

jurisdiction or with grave abuse of discretion when it included
motu proprio petitioner corporation as a party respondent
and ordered said corporation liable to pay jointly and
severally, with Jose Edmundo Pison the claims of private
respondents.

In essence, petitioner alleges deprivation of due process.

The Court's Ruling

The petition lacks merit.

Petitioner contends that it was never served any summons; hence, public
respondent did not acquire jurisdiction over it. It argues that "from the time the
complaint was filed before the Regional Arbitration Branch No. VI up to the time
the said case was appealed by Jose Edmundo Pison to the NLRC, Cebu,
petitioner Corporation was never impleaded as one of the parties . . . ." It was
only in the public respondent's assailed Decision of September 27, 1993 "that
petitioner Corporation was wrongly included as party respondent without its
knowledge." Copies of the assailed Decision and Resolution were not sent to
petitioner but only to Jose Edmundo Pison, on the theory that the two were one
and the same. Petitioner avers that Jose Edmundo Pison, "is only a minority
stockholder" of Hacienda Lanutan, which in turn is one of the of business of
petitioner. 11 Petitioner further argues that it did not "voluntarily appear before
said tribunal" and that it was not "given (any) opportunity to be heard", 12 thus,
the assailed Decision and Resolution in this case are void "for having been
issued without jurisdiction." 13

In its memorandum, petitioner adds that Eden vs. Ministry of Labor and
Employment, 14 cited by public respondent, does not apply to this case. In Eden,
"petitioners were duly served with notices of hearings, while in the instant case,
the petitioner was never summoned nor was served with notice of hearings as a
respondent in the case." 15

At the outset, we must stress that in quasi-judicial proceedings, procedural rules

governing service of summons are not strictly construed. Substantial compliance
thereof is sufficient. 16 Also, in labor cases, punctilious adherence to stringent
technical rules may be relaxed in the interest of the working man; it should not
defeat the complete and equitable resolution of the rights and obligations of the
parties. This Court is ever mindful of the underlying spirit and intention of the
Labor Code to ascertain the facts of each case speedily and objectively without
regard to technical rules of law and procedure, all in the interest of due process.
17 Furthermore, the Labor Code itself, as amended by RA 6715, 18 provides for

the specific power of the Commission to correct, amend, or waive any error,
defect or irregularity whether in the substance or in the form of the proceedings
before it 19 under Article 218 (c) as follows:

(c) To conduct investigation for the determination of a

question, matter or controversy within its jurisdiction,
proceed to hear and determine the disputes in the absence
of any party thereto who has been summoned or served with
notice to appear, conduct its proceedings or any part thereof
in public or in private, adjourn its hearings to any time and
place, refer technical matters or accounts to an expert and to
accept his report as evidence after hearing of the parties
upon due notice, direct parties to be joined in or excluded
from the proceedings, correct, amend, or waive any error,
defect or irregularity whether in substance or in form, give all
such directions as it may deem necessary or expedient in
the determination of the dispute before it, and dismiss any
matter or refrain from further hearing or from determining the
dispute or part thereof, where it is trivial or where further
proceedings by the Commission are not necessary or
desirable; . . . (Emphasis supplied.)

In this case, there are legal and factual reasons to hold petitioner jointly and
severally liable with Jose Edmundo Pison.

Jurisdiction Acquired
Over Petitioner
Consistent with the foregoing principles applicable to labor cases, we find that
jurisdiction was acquired over the petitioner. There is no dispute that Hacienda
Lanutan, which was owned SOLELY by petitioner, was impleaded and was
heard. If at all, the non-inclusion of the corporate name of petitioner in the case
before the executive labor arbiter was a mere procedural error which did not at all
affect the jurisdiction of the labor tribunals. 20 Petitioner was adequately
represented in the proceedings conducted at the regional arbitration branch by
no less than Hacienda Lanutan's administrator, Jose Edmundo Pison, who
verified and signed his/Hacienda Lanutan's position paper and other pleadings
submitted before the labor arbiter. It can thus be said that petitioner, acting
through its corporate officer Jose Edmundo Pison, traversed private respondents'
complaint and controverted their claims. Further rebutted by petitioner are the
following findings of public respondent: 21

It should further be noted that two responsible employees of

the said corporation, namely, Teresita Dangcasil, the
secretary of the administrator/manager, and Fernando
Gallego, the hacienda overseer, had submitted their
affidavits, both dated July 20, 1988, as part of the evidence
for the respondent, and that, as shown by the records, the
lawyer who appeared as the legal counsel of the
respondent-appellant, specifically, Atty. Jose Ma. Torres, of
the Torres and Valencia Law Office in Bacolod City, (Rollo,
p. 17) was also the legal counsel of the said corporation.
(Rollo, p. 23)

Also, it is undisputed that summons and all notices of hearing were duly served
upon Jose Edmundo Pison. Since Pison is the administrator and representative
of petitioner in its property (Hacienda Lanutan) and recognized as such by the
workers therein, we deem the service of summons upon him as sufficient and
substantial compliance with the requirements for service of summons and other
notices in respect of petitioner corporation. Insofar as the complainants are
concerned, Jose Edmundo Pison was their employer and/or their employer's
representative. In view of the peculiar circumstances of this case, we rule that
Jose Pison's knowledge of the labor case and effort to resist can be deemed
knowledge and action of the corporation. Indeed, to apply the normal precepts on
corporate fiction and the technical rules on service of summons would be to
overturn the bias of the Constitution and the laws in favor of labor.

Hence, it is fair to state that petitioner, through its administrator and manager,
Jose Edmundo Pison, was duly notified of the labor case against it and was
actually afforded an opportunity to be heard. That it refused to take advantage of
such opportunity and opted to hide behind its corporate veil will not shield it from
the encompassing application of labor laws. As we held in Bautista vs. Secretary
of Labor and Employment: 22
 Moreover, since the proceeding was not judicial but merely
administrative, the rigid requirements of procedural laws
were not strictly enforceable. It is settled that —

While the administrative tribunals exercising

quasi-judicial powers are free from the rigidity
of certain procedural requirements they are
bound by law and practice to observe the
fundamental and essential requirements of due
process in justiciable cases presented before
them. However, the standard of due process
that must be met in administrative tribunals
allows a certain latitude as long as the element
of fairness is not ignored. (fn: Adamson &
Adamson, Inc. vs. Amores, 152 SCRA 237).

xxx xxx xxx

It is of course also sound and settled rule that

administrative agencies performing quasi-
judicial functions are unfettered by the rigid
technicalities of procedure observed in the
courts of law, and this is so that disputes
brought before such bodies may be resolved in
the most expeditious and inexpensive manner
possible. (fn: Rizal Workers Union vs. Ferrer-
Calleja, 186 SCRA 431).

Given all these circumstances, we feel that the lack of

summons upon the petitioners is not sufficient justification for
annulling the acts of the public respondents.

Contrary to petitioner's contention, the principles laid down in Eden are to

relevant to this case. In that case, a religious organization, SCAFI, 23 denied
responsibility for the monetary claims of several employees, as these were filed
against SCAPS 24 and its officer in charge — the employees believed that
SCAPS was their employer. In rejecting such defense, this Court ruled: 25

With regard to the contention that SCAPS and SCAFI are

two different entities, this lacks merit. The change from
SCAPS to SCAFI was a mere modification, if not rectification
of the caption as to respondent in the MOLE case, when it
was pointed out in the complainant's position paper that
SCAPS belongs to or is integral with SCAFI as gleaned from
the brochure, Annex "A" of said position paper, which is
already part of the records of the case and incorporated in
 the Comment by way of reference. The brochure stated that
SCAPS is the implementing and service arm of SCAFI, with
Bishop Gaviola as National Director of SCAPS and Board
Chairman of SCAFI, both their address: 2655 F.B. Harrison,
St., Pasay City. Thus, the real party in interest is SCAFI,
more so because it has the juridical personality that can sue
and be sued. The change in caption from SCAPS to SCAFI
however does not absolve SCAPS from liability, for SCAFI
includes SCAPS, SCAPS — the arm, SCAFI, — the
organism to which the arm is an integral part of the rise and
fall of SCAPS, and vice-versa. Thus, SCAFI has never been
a stranger to the case. Jurisprudence is to the effect that:

An action may be entertained, notwithstanding

the failure to include an indispensable party
where it appears that the naming of the party
would be a formality. (Baguio vs. Rodriguez, L-
11078, May 27, 1959)

Comparable to Eden, Hacienda Lanutan is an arm of petitioner, the organism of

which it is an integral part. Ineluctably, the real party in interest in this case is
petitioner, not "Hacienda Lanutan" which is merely its non-juridical arm. In
dealing with private respondents, petitioner represented itself to be "Hacienda
Lanutan." Hacienda Lanutan is roughly equivalent to its trade name or even
nickname or alias. The names may have been different, but the IDENTITY of the
petitioner is not in dispute. Thus, it may be sued under the same by which it
made itself known to the workers.

Liability of Jose Edmundo Pison

Jose Edmundo Pison did not appeal from the Decision of public respondent. It
thus follows that he is bound by the said judgment. A party who has not appealed
an adverse decision cannot obtain from the appellate court any affirmative relief
other than those granted, if there is any, in the decision of the lower court or
administrative body. 26

WHEREFORE, premises considered, the petition is hereby DISMISSED, for its

failure to show grave abuse of discretion amounting to lack or excess of
jurisdiction on the part of the National Labor Relations Commission. The assailed
Decision and Resolution are AFFIRMED. The temporary restraining order issued
on January 19, 1995 is hereby LIFTED. Cost against petitioner.

SO ORDERED.

Narvasa, C.J., Romero, Melo and Francisco, JJ., concur.

Footnotes

1 In "National Federation of Sugar Workers-Food and

General Trade (NFSW-FGT)/Jesus Pasco, et al. vs. Hda.
Lanutan/Jose Edmundo Pison (And Pison-Arceo Agricultural
and Development Corporation)"; rollo, pp. 43-65.

2 Fourth Division composed of Commissioner Bernabe S.

Batuhan, ponente, and Commissioner Irenea S. Ceniza,
concurring. The third member is not named in the assailed
Decision.

3 Originally numbered as RAB Case No. 06-06-10202-88.

4 Rollo, pp. 78-79, with an additional concurrence of

Commissioner Anchito V. Cañete.

5 Ibid., pp. 18-25.

6 Ibid., pp. 64-65.

7 Ibid., p. 78.

8 Ibid., p. 11.

9 Rollo, pp. 15-17.

10 Ibid., p. 7; original text in upper case.

11 Ibid., p. 8.

12 Ibid., p. 9.

13 Ibid., p. 11.

14 182 SCRA 840, February 28, 11990.

15 Rollo, pp. 200-201.

16 Eden vs. Ministry of Labor and Employment, 182 SCRA

840, 847, February 28, 1990; citing Ang Tibay vs. Court of
Industrial Relations, 69 Phil. 635, February 27, 1940.

17 Cabalan Pastulan Negrito Labor Association vs. NLRC,

241 SCRA 643, 656-657, February 23, 1994; citing YBL
(Your Bus Lines), et al. vs. NLRC, et al., 190 SCRA 160,
September 28, 1990; Rada vs. NLRC, et al., G.R. No.
96078, 205 SCRA 69, January 9, 1992.

18 The New Labor Relations Law.

19 City Fair Corporation vs. National Labor Relations

Commission, 243 SCRA 572, 576, April 21, 1995.

20 This should be distinguished from the case of Laureano

Investment & Development Corporation vs. The Honorable
Court of Appeals and Bormaheco, Inc., (G.R. No. 100468, p.
13, May 6, 1997) where we ruled:

Examining the records of the case, we observe

that the motion adverted to indeed made use of
LIDECO as an acronym for Laureano
Investment and Development Corporation. But
said motion distinctly specified that LIDECO
was the shorter term for Laureano Investment
and Development Corporation. It is obvious
that no false representation or concealment
can be attributed to private respondent. Neither
can it be charged with conveying the
impression that the facts are other than, or
inconsistent with, those which it now asserts
since LIDECO, as an acronym, is clearly
different from "Lideco Corporation" which
represented itself as a corporation duly
registered and organized in accordance with
law. Nor can it be logically inferred that
petitioner relied or acted upon such
representation or private representation of
private respondent in thereafter referring to
itself as "Lideco Corporation;" for petitioner is
presumed to know by which name it is
registered, and the legal provisions on the use
of its corporate name.

21 NLRC's Decision, pp. 19-20; rollo, pp. 61-62.

22 196 SCRA 470, 475, April 30, 1991, per Cruz, J.

23 Share and Care Apostolate Foundation, Inc. (SCAFI).

24 Share and Care Apostolate for Poor Settlers (SCAPS).

25 Eden vs. Ministry of Labor and Employment, supra, p.
847.

26 Atlantic Gulf and Pacific Company of Manila, Inc. vs.

Court of Appeals, 247 SCRA 606, 612-613, August 23,
1995, citing cases of Makati Haberdashery, Inc., et al. vs.
National Labor Relations Commission, et al., G.R. Nos.
83380-81, November 15, 1989, 179 SCRA 448; Dizon, Jr.
vs. National Labor Relations Commission, et al., G.R. No.
69018, January 29, 1990, 181 SCRA 472; Lumibao vs.
Intermediate Appellate Court, et al., G.R. No. 64677,
September 13, 1990, 189 SCRA 649; SMI Fish Industries,
Inc., et al. vs. National Labor Relations Commission, et al.,
G.R. Nos. 96952-56, September 2, 1992, 213 SCRA 444;
Alba vs. Santander, et al., L-28409, April 15, 1988, 160
SCRA 8; Nessia vs. Fermin, et al., G.R. No. 102918, March
30, 1993, 220 SCRA 615.
Montemayor v Bundalian

THIRD DIVISION

G.R. No. 149335 July 1, 2003

EDILLO C. MONTEMAYOR, petitioner,

vs.
LUIS BUNDALIAN, RONALDO B. ZAMORA, Executive Secretary, Office of
the President, AND GREGORIO R. VIGILAR, Secretary, Department of
Public Works and Highways (DPWH), respondents.

PUNO, J.:

In this petition for review on certiorari, petitioner EDILLO C. MONTEMAYOR

assails the Decision of the Court of Appeals, dated April 18, 2001, affirming the
decision of the Office of the President in Administrative Order No. 12 ordering
petitioner’s dismissal as Regional Director of the Department of Public Works
and Highways (DPWH) for unexplained wealth.

Petitioner’s dismissal originated from an unverified letter-complaint, dated July

15, 1995, addressed by private respondent LUIS BUNDALIAN to the Philippine
Consulate General in San Francisco, California, U.S.A. Private respondent
accused petitioner, then OIC-Regional Director, Region III, of the DPWH, of
accumulating unexplained wealth, in violation of Section 8 of Republic Act No.
3019. Private respondent charged that in 1993, petitioner and his wife purchased
a house and lot at 907 North Bel Aire Drive, Burbank, Los Angeles, California,
making a down payment of US$100,000.00. He further alleged that petitioner’s
in-laws who were living in California had a poor credit standing due to a number
of debts and they could not have purchased such an expensive property for
petitioner and his wife. Private respondent accused petitioner of amassing wealth
from lahar funds and other public works projects.

Private respondent attached to his letter-complaint the following documents:

a) a copy of a Grant Deed, dated May 27, 1993, where spouses

David and Judith Tedesco granted the subject property to petitioner
and his wife;

b) a copy of the Special Power of Attorney (SPA) executed by

petitioner and his wife in California appointing petitioner’s sister-in-
law Estela D. Fajardo as their attorney-in-fact, to negotiate and
execute all documents and requirements to complete the purchase
of the subject property; and,
 c) an excerpt from the newspaper column of Lito A. Catapusan in
the Manila Bulletin, entitled "Beatwatch," where it was reported that
a low-ranking, multimillionaire DPWH employee, traveled to Europe
and the U.S. with his family, purchased an expensive house in
California, appointed a woman through an SPA to manage the
subject property and had hidden and unexplained wealth in the
Philippines and in the U.S.

Accordingly, the letter-complaint and its attached documents were indorsed by

the Philippine Consulate General of San Francisco, California, to the Philippine
Commission Against Graft and Corruption (PCAGC)1 for investigation. Petitioner,
represented by counsel, submitted his counter-affidavit before the PCAGC
alleging that the real owner of the subject property was his sister-in-law Estela
Fajardo. Petitioner explained that in view of the unstable condition of government
service in 1991, his wife inquired from her family in the U.S. about their possible
emigration to the States. They were advised by an immigration lawyer that it
would be an advantage if they had real property in the U.S. Fajardo intimated to
them that she was interested in buying a house and lot in Burbank, California, but
could not do so at that time as there was a provision in her mortgage contract
prohibiting her to purchase another property pending full payment of a real estate
she earlier acquired in Palmdale, Los Angeles. Fajardo offered to buy the
Burbank property and put the title in the names of petitioner and his wife to
support their emigration plans and to enable her at the same time to circumvent
the prohibition in her mortgage contract.

Petitioner likewise pointed out that the charge against him was the subject of
similar cases filed before the Ombudsman.2 He attached to his counter-affidavit
the Consolidated Investigation Report3 of the Ombudsman dismissing similar
charges for insufficiency of evidence.

From May 29, 1996 until March 13, 1997, the PCAGC conducted its own
investigation of the complaint. While petitioner participated in the proceedings
and submitted various pleadings and documents through his counsel, private
respondent-complainant could not be located as his Philippine address could not
be ascertained. In the course of the investigation, the PCAGC repeatedly
required petitioner to submit his Statement of Assets, Liabilities and Net Worth
(SALN), Income Tax Returns (ITRs) and Personal Data Sheet. Petitioner ignored
these directives and submitted only his Service Record. He likewise adduced in
evidence the checks allegedly issued by his sister-in-law to pay for the house
and lot in Burbank, California. When the PCAGC requested the Deputy
Ombudsman for Luzon to furnish it with copies of petitioner’s SALN from 1992-
1994, it was informed that petitioner failed to file his SALN for those years.

After the investigation, the PCAGC, in its Report to the Office of the President,
made the following findings: Petitioner purchased a house and lot in Burbank,
California, for US$195,000.00 (or P3.9M at the exchange rate prevailing in 1993).
The sale was evidenced by a Grant Deed. The PCAGC concluded that the
petitioner could not have been able to afford to buy the property on his annual
income of P168,648.00 in 1993 as appearing on his Service Record. It likewise
found petitioner’s explanation as unusual, largely unsubstantiated, unbelievable
and self-serving. The PCAGC noted that instead of adducing evidence,
petitioner’s counsel exerted more effort in filing pleadings and motion to dismiss
on the ground of forum shopping. It also took against petitioner his refusal to
submit his SALN and ITR despite the undertaking made by his counsel which
raised the presumption that evidence willfully suppressed would be adverse if
produced. The PCAGC concluded that as petitioner’s acquisition of the subject
property was manifestly out of proportion to his salary, it has been unlawfully
acquired. Thus, it recommended petitioner’s dismissal from service pursuant to
Section 8 of R.A. No. 3019.

On August 24, 1998, the Office of the President, concurring with the findings and
adopting the recommendation of the PCAGC, issued Administrative Order No.
12,4 ordering petitioner’s dismissal from service with forfeiture of all government
benefits.

Petitioner’s Motion for Reconsideration was denied. His appeal to the Court of
Appeals was likewise dismissed.5

Hence, this petition for review where petitioner raises the following issues for
resolution: first, whether he was denied due process in the investigation before
the PCAGC; second, whether his guilt was proved by substantial evidence; and,
third, whether the earlier dismissal of similar cases before the Ombudsman
rendered the administrative case before the PCAGC moot and academic.

On the issue of due process, petitioner submits that the PCAGC committed
infractions of the cardinal rules of administrative due process when it relied on
Bundalian’s unverified letter-complaint. He gripes that his counter-affidavit should
have been given more weight as the unverified complaint constitutes hearsay
evidence. Moreover, petitioner insists that in ruling against him, the PCAGC
failed to respect his right to confront and cross-examine the complainant as the
latter never appeared in any of the hearings before the PCAGC nor did he send a
representative therein.

We find no merit in his contentions. The essence of due process in administrative

proceedings is the opportunity to explain one’s side or seek a reconsideration of
the action or ruling complained of. As long as the parties are given the
opportunity to be heard before judgment is rendered, the demands of due
process are sufficiently met.6 In the case at bar, the PCAGC exerted efforts to
notify the complainant of the proceedings but his Philippine residence could not
be located.7 Be that as it may, petitioner cannot argue that he was deprived of
due process because he failed to confront and cross-examine the complainant.
Petitioner voluntarily submitted to the jurisdiction of the PCAGC by participating
in the proceedings before it. He was duly represented by counsel. He filed his
counter-affidavit, submitted documentary evidence, attended the hearings,
moved for a reconsideration of Administrative Order No. 12 issued by the
President and eventually filed his appeal before the Court of Appeals. His active
participation in every step of the investigation effectively removed any badge of
procedural deficiency, if there was any, and satisfied the due process
requirement. He cannot now be allowed to challenge the procedure adopted by
the PCAGC in the investigation.8

Neither can we sustain petitioner’s contention that the charge against him was
unsupported by substantial evidence as it was contained in an unverified
complaint. The lack of verification of the administrative complaint and the non-
appearance of the complainant at the investigation did not divest the PCAGC of
its authority to investigate the charge of unexplained wealth. Under Section 3 of
Executive Order No. 151 creating the PCAGC, complaints involving graft and
corruption may be filed before it in any form or manner against presidential
appointees in the executive department. Indeed, it is not totally uncommon that a
government agency is given a wide latitude in the scope and exercise of its
investigative powers. The Ombudsman, under the Constitution, is directed to act
on any complaint likewise filed in any form and manner concerning official acts or
omissions. The Court Administrator of this Court investigates and takes
cognizance of, not only unverified, but even anonymous complaints filed against
court employees or officials for violation of the Code of Ethical Conduct. This
policy has been adopted in line with the serious effort of the government to
minimize, if not eradicate, graft and corruption in the service.

It is well to remember that in administrative proceedings, technical rules of

procedure and evidence are not strictly applied. Administrative due process
cannot be fully equated with due process in its strict judicial sense for it is enough
that the party is given the chance to be heard before the case against him is
decided.9 This was afforded to the petitioner in the case at bar.

On the second issue, there is a need to lay down the basic principles in
administrative investigations. First, the burden is on the complainant to prove by
substantial evidence the allegations in his complaint.10 Substantial evidence is
more than a mere scintilla of evidence. It means such relevant evidence as a
reasonable mind might accept as adequate to support a conclusion, even if other
minds equally reasonable might conceivably opine otherwise. 11 Second, in
reviewing administrative decisions of the executive branch of the government,
the findings of facts made therein are to be respected so long as they are
supported by substantial evidence. Hence, it is not for the reviewing court to
weigh the conflicting evidence, determine the credibility of witnesses, or
otherwise substitute its judgment for that of the administrative agency with
respect to the sufficiency of evidence. Third, administrative decisions in matters
within the executive jurisdiction can only be set aside on proof of gross abuse of
discretion, fraud, or error of law. These principles negate the power of the
reviewing court to re-examine the sufficiency of the evidence in an administrative
case as if originally instituted therein, and do not authorize the court to receive
additional evidence that was not submitted to the administrative agency
concerned.12

In the case at bar, petitioner admitted that the subject property was in his name.
However, he insisted that it was his sister-in-law Estela Fajardo who paid for the
property in installments. He submitted as proof thereof the checks issued by
Fajardo as payment for the amortizations of the property. His evidence, however,
likewise fail to convince us. First, the record is bereft of evidence to prove the
alleged internal arrangement petitioner entered into with Fajardo. He did not
submit her affidavit to the investigating body nor did she testify before it regarding
her ownership of the Burbank property. Second, the checks allegedly issued by
Fajardo to pay for the monthly amortizations on the property have no evidentiary
weight as Fajardo’s mere issuance thereof cannot prove petitioner’s non-
ownership of the property. Fajardo would naturally issue the checks as she was
appointed by petitioner as attorney-in-fact and the latter would naturally course
through her the payments for the Burbank property. Third, petitioner’s own
evidence contradict his position. We cannot reconcile petitioner’s denial of
ownership of the property with the loan statement13 he adduced showing that he
obtained a loan from the World Savings and Loan Association for $195,000.00
on June 23, 1993 to finance the acquisition of the property. Then, three (3) years
later, on May 30, 1996, petitioner and his wife executed a Quitclaim Deed 14
donating the Burbank property to his sisters-in-law Estela and Rose Fajardo
allegedly to prove his non-ownership of the property. It is obvious that the
Quitclaim Deed is a mere afterthought, having been executed only after a
complaint for unexplained wealth was lodged against petitioner. Why the
Quitclaim Deed included Rose Fajardo when it was only Estela Fajardo who
allegedly owned the property was not explained on the record. Petitioner’s
evidence failed to clarify the issue as it produced, rather than settled, more
questions.

Petitioner admitted that the Grant Deed over the property was in his name. He
never denied the existence and due execution of the Grant Deed and the Special
Power of Attorney he conferred to Estela Fajardo with respect to the acquisition
of the Burbank property. With these admissions, the burden of proof was shifted
to petitioner to prove non-ownership of the property. He cannot now ask this
Court to remand the case to the PCAGC for reception of additional evidence as,
in the absence of any errors of law, it is not within the Court’s power to do so. He
had every opportunity to adduce his evidence before the PCAGC.

Lastly, we cannot sustain petitioner’s stance that the dismissal of similar charges
against him before the Ombudsman rendered the administrative case against
him before the PCAGC moot and academic. To be sure, the decision of the
Ombudsman does not operate as res judicata in the PCAGC case subject of this
review. The doctrine of res judicata applies only to judicial or quasi-judicial
proceedings, not to the exercise of administrative powers.15 Petitioner was
investigated by the Ombudsman for his possible criminal liability for the
acquisition of the Burbank property in violation of the Anti-Graft and Corrupt
Practices Act and the Revised Penal Code. For the same alleged misconduct,
petitioner, as a presidential appointee, was investigated by the PCAGC by virtue
of the administrative power and control of the President over him. As the
PCAGC’s investigation of petitioner was administrative in nature, the doctrine of
res judicata finds no application in the case at bar.

Thus, we find that the Court of Appeals correctly sustained petitioner’s dismissal
from service as the complaint and its supporting documents established that he
acquired a property whose value is disproportionate to his income in the
government service, unless he has other sources of income which he failed to
reveal. His liability was proved by substantial evidence.

IN VIEW WHEREOF, the petition is DISMISSED. No costs.

SO ORDERED.

Panganiban, Sandoval-Gutierrez, Corona, and Carpio Morales, JJ., concur.

Footnotes
1Created under Executive Order No. 151, dated January 11, 1994,
by then President Fidel V. Ramos and was subsequently abolished
by his successor, former President Joseph Estrada through E.O.
253, dated July 18, 2000.
2 OMB-0-94-1172, OMB-0-94-1329 and OMB-0-94-1560.
3 Rollo at 162-173.
4 Id. at 54-60.

5Decision, dated April 18, 2001; Penned by Associate Justice

Fermin A. Martin, Jr. and concurred in by Associate Justices Portia
Aliño-Hormachuelos and Mercedes Gozo-Dadole; Rollo at 41-50.
6Umali vs. Guingona, Jr., 305 SCRA 533 (2000); Audion Electric
Co., Inc. vs. NLRC, 308 SCRA 340 (2000).
7See Letter of PCAGC Chairman Dario Rama to the Solicitor
General, dated April 4, 2002; Rollo at 90.
8Emin vs. Chairman Corazon Alma de Leon, G.R. No. 139794,
February 27, 2002.
9 Ocampo vs. Office of the Ombudsman, 322 SCRA 17 (2000).
10Lorena vs. Encomienda, 302 SCRA 632 (1999); Cortez vs.
Agcaoili, 294 SCRA 423 (1998).
11 Enrique vs. Court of Appeals, 229 SCRA 180 (1994).
12
Ramos vs. Secretary of Agriculture and Natural Resources, 55
SCRA 330 (1974).
13 See Supplement to the Petition; Rollo at 74.
14 Id. at 75-78.
15 Dinsay vs. Cioco, 264 SCRA 703 (1996).
Evangelista v Jarencio

EN BANC

G.R. No. L-29274 November 27, 1975

SEC. QUIRICO P. EVANGELISTA, in his capacity as Secretary of the

Presidential Agency on Reforms and Government Operations, and the
PRESIDENTIAL AGENCY ON REFORMS AND GOVERNMENT OPERATIONS
(PARGO), petitioner,
vs.
HON. HILARION U. JARENCIO, as Presiding Judge, Court of First Instance
of Manila, Branch XXIII, and FERNANDO MANALASTAS, Assistant City
Public Service Officer of Manila, and ALL OTHER CITY OFFICIALS AND
EMPLOYEES SIMILARLY SITUATED, respondents.

Office of the Solicitor General Antonio P. Barredo, Ist. Assistant Solicitor General
Esmeraldo Umali and Solicitor Bernardo P. Pardo for petitioners.

Gregorio A. Ejercito and Felix C. Chavez for respondents.

MARTIN, J.:

This is an original action for certiorari and prohibition with preliminary injunction,
under Rule 65 of the Rules of Court, seeking to annul and set aside the order of
respondent Judge, the Honorable Hilarion J. Jarencio, Presiding Judge of the
Court of First Instance of Manila, dated July 1, 1968, in Civil Case No. 73305,
entitled "Fernando Manalastas vs. Sec. Ramon D. Bagatsing, etc.", which reads
as follows:

IT IS ORDERED that, upon the filing of a bond in the amount

of P5,000.00, let the writ of preliminary injunction prayed for
by the petitioner [private respondent] be issued restraining
the respondents [petitioners], their agents, representatives,
attorneys and/or other persons acting in their behalf from
further issuing subpoenas in connection with the fact-finding
investigations to the petitioner [private respondent] and from
instituting contempt proceedings against the petitioner
[private respondent] under Section 580 of the Revised
Administrative Code. (Stress supplied).
Pursuant to his special powers and duties under Section 64 of the Revised
Administrative Code,1 the President of the Philippines created the Presidential
Agency on Reforms and Government Operations (PARGO) under Executive
Order No. 4 of January 7, 1966.2 Purposedly, he charged the Agency with the
following functions and responsibilities:3

b. To investigate all activities involving or affecting immoral

practices, graft and corruptions, smuggling (physical or
technical), lawlessness, subversion, and all other activities
which are prejudicial to the government and the public
interests, and to submit proper recommendations to the
President of the Philippines.

c. To investigate cases of graft and corruption and violations

of Republic Acts Nos. 1379 and 3019, and gather necessary
evidence to establish prima facie, acts of graft and
acquisition of unlawfully amassed wealth ... .

h. To receive and evaluate, and to conduct fact-finding

investigations of sworn complaints against the acts, conduct
or behavior of any public official or employee and to file and
prosecute the proper charges with the appropriate agency.

For a realistic performance of these functions, the President vested in the

Agency all the powers of an investigating committee under Sections 71 and 580
of the Revised Administrative Code, including the power to summon witnesses
by subpoena or subpoena duces tecum, administer oaths, take testimony or
evidence relevant to the investigation.4

Whereupon, on June 7, 1968, petitioner Quirico Evangelista, as Undersecretary

of the Agency, issued to respondent Fernando Manalastas, then Acting City
Public Service Officer of Manila, a subpoena ad testificandum commanding him
"to be and appear as witness at the Office of the PRESIDENTIAL AGENCY ON
REFORMS AND GOVERNMENT OPERATIONS ... then and there to declare
and testify in a certain investigation pending therein."

Instead of obeying the subpoena, respondent Fernando Manalastas filed on June

25, 1968 with the Court of First Instance of Manila an Amended Petition for
prohibition, certiorari and/or injunction with preliminary injunction and/or
restraining order docketed as Civil Case No. 73305 and assailed its legality.

On July 1, 1968, respondent Judge issued the aforementioned Order:

IT IS ORDERED that, upon the filing of a bond in the amount

of P5,000.00, let the writ of preliminary injunction prayed for
by the petitioner [private respondent] be issued restraining
 the respondents [petitioners], their agents, representatives,
attorneys and/or other persons acting in their behalf from
further issuing subpoenas in connection with the fact-finding
investigations to the petitioner [private respondent] and from
instituting contempt proceedings against the petitioner
[private respondent] under Section 530 of the Revised
Administrative Code. (Stress supplied).

Because of this, petitioners 5 elevated the matter direct to Us without a motion

for reconsideration first filed on the fundamental submission that the Order is a
patent nullity.6

As unfurled, the dominant issue in this case is whether the Agency, acting thru its
officials, enjoys the authority to issue subpoenas in its conduct of fact-finding
investigations.

It has been essayed that the life blood of the administrative process is the flow of
fact, the gathering, the organization and the analysis of evidence. 7 Investigations
are useful for all administrative functions, not only for rule making, adjudication,
and licensing, but also for prosecuting, for supervising and directing, for
determining general policy, for recommending, legislation, and for purposes no
more specific than illuminating obscure areas to find out what if anything should
be done.8 An administrative agency may be authorized to make investigations,
not only in proceedings of a legislative or judicial nature, but also in proceedings
whose sole purpose is to obtain information upon which future action of a
legislative or judicial nature may be taken 9 and may require the attendance of
witnesses in proceedings of a purely investigatory nature. It may conduct general
inquiries into evils calling for correction, and to report findings to appropriate
bodies and make recommendations for actions. 10

We recognize that in the case before Us, petitioner Agency draws its subpoena
power from Executive Order No. 4, para. 5 which, in an effectuating mood,
empowered it to "summon witness, administer oaths, and take testimony relevant
to the investigation" 11 with the authority "to require the production of documents
under a subpoena duces tecum or otherwise, subject in all respects to the same
restrictions and qualifications as apply in judicial proceedings of a similar
character." 12 Such subpoena power operates in extenso to all the functions of
the Agency as laid out in the aforequoted sub-paragraphs (b),(e), and (h). It is not
bordered by nor is it merely exercisable, as respondents would have it, in quasi-
judicial or adjudicatory function under sub-paragraph (b). The functions
enumerated in all these sub-paragraphs (b), (e), and (h) interlink or intertwine
with one another with the principal aim of meeting the very purpose of the
creation of the Agency, which is to forestall and erode nefarious activities and
anomalies in the civil service. To hold that the subpoena power of the Agency is
confined to mere quasi-judicial or adjudicatory functions would therefore imperil
or inactiviate the Agency in its investigatory functions under
sub-paragraphs (e) and (h). More than that, the enabling authority itself
(Executive Order No. 4, para. 5) fixes no distinction when and in what function
should the subpoena power be exercised. Similarly, We see no reason to depart
from the established rule that forbids differentiation when the law itself makes
none.

Nor could We impress upon this subpoena power the alleged strictures of a
subpoena issued under the Rules of Court 13 to abridge its application. The
seeming proviso in Section 580 of the Revised Administrative Code that the right
to summon witnesses and the authority to require the production of documents
under a subpoena duces tecum or otherwise shall be "subject in all respects to
the same restrictions and qualifications as apply in judicial proceedings of a
similar character" cannot be validly seized upon to require, in respondents'
formulation, that, as in a subpoena under the Rules, a specific case must be
pending before a court for hearing or trial and that the hearing or trial must be in
connection with the exercise of the court's judicial or adjudicatory functions 14
before a non-judicial subpoena can be issued by an administrative agency like
petitioner Agency. It must be emphasized, however, that an administrative
subpoena differs in essence from a judicial subpoena. Clearly, what the Rules
speaks of is a judicial subpoena, one procurable from and issuable by a
competent court, and not an administrative subpoena. To an extent, therefore,
the "restrictions and qualifications" referred to in Section 580 of the Revised
Administrative Code could mean the restraints against infringement of
constitutional rights or when the subpoena is unreasonable or oppressive and
when the relevancy of the books, documents or things does not appear. 15

Rightly, administrative agencies may enforce subpoenas issued in the course of

investigations, whether or not adjudication is involved, and whether or not
probable cause is shown 16 and even before the issuance of a complaint. 17 It is
not necessary, as in the case of a warrant, that a specific charge or complaint of
violation of law be pending or that the order be made pursuant to one. It is
enough that the investigation be for a lawfully authorized purpose. 18 The
purpose of the subpoena is to discover evidence, not to prove a pending charge,
but upon which to make one if the discovered evidence so justifies. 19 Its
obligation cannot rest on a trial of the value of testimony sought; it is enough that
the proposed investigation be for a lawfully authorized purpose, and that the
proposed witness be claimed to have information that might shed some helpful
light. 20 Because judicial power is reluctant if not unable to summon evidence
until it is shown to be relevant to issues on litigations it does not follow that an
administrative agency charged with seeing that the laws are enforced may not
have and exercise powers of original inquiry. The administrative agency has the
power of inquisition which is not dependent upon a case or controversy in order
to get evidence, but can investigate merely on suspicion that the law is being
violated or even just because it wants assurance that it is not. When investigative
and accusatory duties are delegated by statute to an administrative body, it, too
may take steps to inform itself as to whether there is probable violation of the
law. 21 In sum, it may be stated that a subpoena meets the requirements for
enforcement if the inquiry is (1) within the authority of the agency; (2) the demand
is not too indefinite; and (3) the information is reasonably relevant. 22

There is no doubt that the fact-finding investigations being conducted by the

Agency upon sworn statements implicating certain public officials of the City
Government of Manila in anomalous transactions 23 fall within the Agency's
sphere of authority and that the information sought to be elicited from respondent
Fernando Manalastas, of which he is claimed to be in possession, 24 is
reasonably relevant to the investigations.

We are mindful that the privilege against self-incrimination extends in

administrative investigations, generally, in scope similar to adversary
proceedings. 25 In Cabal v. Kapunan, Jr., 26 the Court ruled that since the
administrative charge of unexplained wealth against the respondent therein may
result in the forfeiture of the property under the Anti-Graft and Corrupt Practices
Act, a proceeding criminal or penal in nature, the complainant cannot call the
respondent to the witness stand without encroaching upon his constitutional
privilege against self-incrimination. Later, in Pascual, Jr. v. Board of Medical
Examiners, 27 the same approach was followed in the administrative proceedings
against a medical practitioner that could possibly result in the loss of his privilege
to practice the medical profession. Nevertheless, in the present case, We find
that respondent Fernando Manalastas is not facing any administrative charge. 28
He is merely cited as a witness in connection with the fact-finding investigation of
anomalies and irregularities in the City Government of Manila with the object of
submitting the assembled facts to the President of the Philippines or to file the
corresponding charges. 29 Since the only purpose of investigation is to discover
facts as a basis of future action, any unnecessary extension of the privilege
would thus be unwise. 30 Anyway, by all means, respondent Fernando
Manalastas may contest any attempt in the investigation that tends to disregard
his privilege against self-incrimination.

A question of constitutional dimension is raised by respondents on the inherent

power of the President of the Philippines to issue subpoena. 31 More tersely
stated, respondents would now challenge, in a collateral way, the validity of the
basic authority, Executive Order No. 4, as amended in part by Executive Order
No. 88. Unfortunately, for reasons of public policy, the constitutionality of
executive orders, which are commonly said to have the force and effect of
statutes 32 cannot be collaterally impeached. 33 Much more when the issue was
not duly pleaded in the court below as to be acceptable for adjudication now. 34
The settled rule is that the Court will not anticipate a question of constitutional
law in advance of the necessity of deciding it. 35

Nothing then appears conclusive than that the disputed subpoena issued by
petitioner Quirico Evangelista to respondent Fernando Manalastas is well within
the legal competence of the Agency to issue.
WHEREFORE, the aforequoted order of respondent Judge, dated July 1, 1968,
is hereby set aside and declared of no force and effect.

Without pronouncement as to costs.

SO ORDERED.

Castro, Antonio, Esguerra, Muñoz Palma and Aquino, JJ., concur.

Makalintal, C.J., concurs in the result.

Barredo, Makasiar, and Concepcion, Jr., JJ, took no part.

Separate Opinions

FERNANDO, J., concurring:

The opinion of the Court, ably penned by Justice Martin, is both learned and
comprehensive. It reflects the current state of doctrinal pronouncements in
American Administrative Law, which up to now possesses worth in this
jurisdiction. It is in accordance with the views expressed in two authoritative
American treatises that of
Davis1 and that of Jaffe.2 The compact but highly useful text of Parker yields the
same conclusion.3 A similar approach may be discerned in the casebooks of
Katz,4 and McFarland and Vanderbelt.5 A concurrence is thus called for. That for
me does not conclude matters though. The constitutional rights of a person who
may be involved in such administrative investigation, call for respect. A
recognition of the expanded reach of the administrative process in order to
assure that the objectives of a regulatory statute be attained cannot obscure the
protection that the Constitution affords a person who may find himself in the
position of a respondent. It is worthwhile to my mind that there be a reference,
even if far from detailed, to such an aspect. Hence this separate opinion.

1. The right to be protected against unreasonable search and seizure should not
fall by the wayside. 6 The broad sweep of the administrative power of
investigation cannot, consistently with the Constitution, go so far as to render it
meaningless. It is with such a reading in mind that I view the pronouncement in
United States v. Morton Salt
Co.,7 on which reliance is placed in the opinion of Justice Martin. The doctrine
formulated in such American case by Justice Jackson reads thus: "Of course a
governmental investigation into corporate matters may be of such a sweeping
nature and so unrelated to the matter properly under inquiry as to exceed the
investigatory power. Federal Trade Comm. v. American Tobacco Co., ... . But it is
sufficient if the inquiry is within the authority of the agency, the demand is not too
indefinite and the information sought is reasonably relevant. "The gist of the
protection is in the requirement, expressed in terms, that the disclosure sought
shall not be unreasonable.""8 It has been given approval in an impressive number
of subsequent adjudications. 9 It suffices, however, to call attention to the words
of Justice Jackson in the two paragraphs preceding the excerpts cited to remove
any doubt as to its lending itself to the construction that an inroad into the right of
search and seizure is now permissible: "The Commission's order is criticized
upon grounds that the order transgresses the Fourth Amendment's proscription
of unreasonable searches and seizures and the Fifth Amendment's due process
of law clause. It is unnecessary here to examine the question of whether a
corporation is entitled to the protection of the Fourth Amendment. ... Although the
"right to be let alone — the most comprehensive of rights and the right most
valued by civilized men," ... is not confined literally to searches and seizures as
such, but extends as well to the orderly taking under compulsion of process, ...
neither incorporated nor unincorporated associations can plead an unqualified
right to conduct their affairs in secret. ... While they may and should have
protection from unlawful demands made in the name of public investigation, ...
corporations can claim no equality with individuals in the enjoyment of a right to
privacy . ... They are endowed with public attributes. They have a collective
impact upon society, from which they derive the privilege of acting as artificial
entities. The Federal Government allows them the privilege of engaging in
interstate commerce. Favors from government often carry with them an
enhanced measure of regulation. ... Even if one were to regard the request for
information in this case as caused by nothing more than official curiosity,
nevertheless law-enforcing agencies have a legitimate right to satisfy themselves
that corporate behavior is consistent with the law and the public interest." 10 Thus
is rendered clear that the landmark Boyd decision which warned against the use
of the subpoena power to trench upon this guarantee still speaks authoritatively.
This Court has spoken to the same effect, Boyd having been cited in a number of
cases. 11 I would, therefore, read the opinion of my brethren as not departing
from but precisely adhering to its command. Whatever relaxation of its
compelling force may be allowable in case of corporations should not apply
where an individual is concerned. That should reassure respondent Manalastas
that if he could demonstrate a failure to abide by the constitutional mandate on
search and seizure, he is not without a remedy.

2. Nor can I fully reconcile myself to the implications lurking in this observation in
the opinion of the Court: "Since the only purpose of investigation is to discover
facts as a basis of future action, any unnecessary extension of the privilege
would thus be unwise." 12 The right not to incriminate oneself 13 is equally
deserving of the utmost deference and respect. What is more, the present
Constitution by the adoption of the Miranda doctrine has vitalized it even further.
14 There is, happily, the last sentence of such paragraph: "Anyway, by all means,

respondent Fernando Manalastas may contest any attempt in the investigation

that tends to disregard his privilege against self-
incrimination." 15 When read in connection with the earlier reference to the fact
that the respondent is called as a witness not as the party proceeded against, it
cannot be said, in the light of the ruling in Planas v. Gil, 16 that it offends against
this constitutional guarantee. As of now then, with the question of any
modification of the Planas doctrine not being properly before us, I can yield my
concurrence. Candor compels the statement, however, that for me a
reexamination of such a pronouncement is desirable. A distinction between a
witness and a respondent may be too tenuous if the realities of the situation be
fully considered. I am bothered by the thought that the force of the Cabal 17 and
the Pascual, Jr. decisions 18 may be eroded if the prospective respondent is first
called as a witness and is thus compelled to testify. For the present, it may
suffice if I express my misgivings. At any rate, concurrence is not ruled out in
view of the aforementioned caveat in the able opinion of Justice Martin.

TEEHANKEE, J., dissenting:

I am constrained to dissent from the main opinion of Mr. Justice Martin which
grants the petition and sets aside respondent court's order and writ of preliminary
injunction of July 1, 1968 and would therefore require respondent Fernando
Manalastas as assistant city public service officer of Manila (and all other city
officials similarly situated) to comply with the PARGO subpoena "to testify to
matters relevant to the investigation of anomalies and sworn statements involving
or implicating certain City officials or other public officers."1

While the subpoena commands respondent Manalastas to appear as witness

before the PARGO,2 on the basis whereof the main opinion finds that said
respondent "is not facing any administrative charge" and that "he is merely cited
as witness in connection with the fact-finding investigation of anomalies and
irregularities in the City Government of Manila with the object of submitting the
assembled facts to the President of the Philippines or to file the corresponding
charges",3 it is a fact shown by the very petition at bar itself and its Annexes B
and B-1 that respondent Manalastas is in fact and for all intents and purposes
subpoenaed as a respondent or one directly implicated with alleged bribery and
graft in the said sworn statements that concededly as per the petition itself
initiated the PARGO's alleged "fact-finding investigation."4

Thus Annex B of the petition which is a sworn statement of one Edilberto

Arguelles, investigated by the PARGO on the overpricing of eight steam cleaners
sold through him as commission agent to the City of Manila, sets forth the
detailed allegations of said declarant that respondent Manalastas and a number
of other city officials named and unnamed got the lion's share of the overpricing.
Annex B-1 of the petition is the sworn statement of one Carlos Montañez with
reference to some overpriced equipment sold by him to the City of Manila
wherein he likewise narrated in detail the modus operandi and specifically named
respondent Manalastas and five other officials to whom he allegedly gave: "due
monetary consideration."

All claims of PARGO to the contrary notwithstanding, the very petition and said
annexed sworn statements (which were not shown to respondent judge in spite
of his expressly asking for them during the course of the hearing 5) show that
respondent Manalastas (and others similarly situated) are indeed not merely
witnesses but in reality respondents (subject to administrative and criminal
charges.)

Respondent has therefore correctly invoked Cabal vs. Kapunan,6 wherein the
Court through then Chief Justice Roberto Concepcion held that therein petitioner
rightfully refused to take the witness stand as against the order of the
Presidential Committee investigating the complaint against him for alleged
unexplained wealth (since such proceedings were in substance and effect a
criminal one and his position was virtually that of an accused on trial and he
therefore had the right to remain silent and invoke the privilege against self-
incrimination in support of a blanket refusal to answer any and all questions) and
ordered the dismissal of the criminal contempt charge against him.

Pascual Jr. vs. Bd. of Examiners7 is equally in point, wherein the Court sustained
the lower court's writ of injunction against the respondent board's order
compelling therein petitioner to take the witness stand in a malpractice case
(wherein he was respondent) in view of the penal nature of the proceedings and
the right of the accused to refuse "not only to answer incriminatory questions, but
also to take the witness stand."8 The Court therein stressed that "the
constitutional guarantee, along with other rights granted an accused, stands for a
belief that while crime should not go unpunished and that the truth must be
revealed, such desirable objectives should not be accomplished according to
means or methods offensive to the high sense of respect accorded the human
personality. More and more in line with the democratic creed, the deference
accorded an individual even those suspected of the most heinous crimes is given
due weight. To quote from Chief Justice Warren, "the constitutional foundation
underlying the privilege is the respect a government ... must accord to the dignity
and integrity of its citizens."" and that "while earlier decisions stressed the
principle of humanity on which this right is predicated, precluding as it does all
resort to force or compulsion, whether physical or mental, current judicial opinion
places equal emphasis on its identification with the right to privacy. Thus
according to Justice Douglas: "The Fifth Amendment in its Self-Incrimination
clause enables the citizen to create a zone of privacy which government may not
force to surrender to his detriment."
That petitioner's investigation and subpoena against respondent Manalastas
were in substance and effect criminal in nature against him as a respondent (and
not merely as witness) as indicated above, is borne out by the fact of record in
Sugay vs. Pamaran 9 (of which the Court can well take judicial notice) that on
July 22, 1971 respondent Manalastas as well as Carlos Montañez the trader
(affiant in Annex B-1, petition, supra, 10) and a number of other city officials were
charged by the city fiscal in the Circuit Criminal Court of Manila for violations of
Republic Act 3019 (Anti-Graft Law) in connection with the alleged gross
overpricing of the same equipment (steam cleaners and air compressor)
purchased for the City.

The main opinion's justification for upholding the subpoena, viz, that "since the
only purpose of investigation is to discover facts as a basis of future action, any
unnecessary extension of the privilege (against self-incrimination)would thus be
unnecessary" 11 thus appears to be flawed in fact and in law: respondent was in
fact being investigated as respondent-suspect and without submitting to the
investigation was actually criminally charged in court; as a pure matter of legal
principle, the 1973 Constitution has recognized the necessity of strengthening
(and extending) the privilege against self-incrimination by expressly providing as
a constitutional mandate in the Bill of Rights that "Any person under investigation
for the commission of an offense shall have the right to remain silent and to
counsel, and to be informed of such right" (Article IV, section 20) and outlawing
the use of any confession obtained in violation of said section by declaring its
inadmissibility in evidence.

Respondent Manalastas was therefore justified in invoking the privilege against

self-incrimination and in securing the respondent court's injunction against
enforcement of petitioner's subpoena. Respondent was unquestionably a party
respondent who under the doctrine of Cabal and Pascual, supra, had the right to
remain silent and invoke the privilege against self-incrimination and refuse to
take the witness stand. This legal and constitutional right may not be defeated by
the transparent expedient of citing respondent as a supposed witness in what
was avowed to be a general fact-finding investigation but obviously was a fishing
expedition to ensnare respondent as a prime suspect, as borne out by the sworn
statements withheld from respondent court and now annexed to the very petition
at bar and petitioner's contention that "In effect, the injunction issued by the lower
court is one to restrain criminal prosecutions." This contention has of course
been proven baseless by the events already cited above that such criminal
prosecutions were in fact filed in court against respondent and others without the
need of petitioner's "fact-finding investigation" and subpoenas.

The thrust of all this is that the State with its overwhelming and vast powers and
resources can and must ferret out and investigate wrongdoing, graft and
corruption and at the same time respect the constitutional guarantees of the
individual's right to privacy, silence and due process and against self-
incrimination and unreasonable search and seizure. This means that leads and
charges must be investigated and followed up through the assistance of the
corresponding police and law enforcement agencies as provided in the
petitioner's executive charter 12 and the evidence secured by proper applications
for search warrants, and as conceded in the petition itself, after the
corresponding report to the President "to file the corresponding charges against
the persons who may appear responsible or merely refer them to other
appropriate offices such as the Fiscal's office, like what was done in other
cases." 13

There appears to be validity in respondent's contention that the subpoena power

granted petitioner in its executive charter does not apply to general fact-finding
investigations conducted by it. 14 I find no need, however, of going further into
this issue, since this dissent is based directly on the fundamental tenet that
respondent Manalastas was unquestionably being investigated by petitioner as
respondent and a prime suspect (and not as a mere witness) and accordingly,
under settled doctrine, he had every right to remain silent and to invoke his right
against self-incrimination and to refuse to take the witness stand.

I therefore vote for upholding respondent court's injunction against enforcement

of petitioner's subpoena.

Footnotes

1 "Sec. 64 (c). To order, when in his opinion the good of the

public service so requires, an investigation of any action or
the conduct of any person in the Government service, and in
connection therewith to designate the official, committee, or
person by whom such investigation shall be conducted."

2 Executive Order No. 208, dated February 9, 1967,

converted the Agency into a division under the Executive
Office and is now known as "Complaints and Investigating
Office".

3 Executive Order No. 88, dated September 25, 1967,

amending in part Executive Order No. 4.

4 Executive Order No. 4, para. (5). "The Agency is hereby

vested with all the powers of an investigating committee
under Sections 71 and 580 of the Revised Administrative
Code, including the power to summon witnesses by
subpoena duces tecum, administer oaths, take testimony or
evidence relevant to the investigation.

5 Resolution of the Court on November 28, 1969 excluded

Ramon D. Bagatsing as petitioner in the case.
6 See Matute v. Court of Appeals, 31 Jan. 1969, 26 SCRA
799, 800; Central Bank v. Cloribel,
L-26971, 11 April 1972, 44 SCRA 314.

7 Administrative Law, Jaffe and Nathanson, 1961 ed., 491.

8 Pope & Talbot, Inc. v. Smith, 340 P. 2d 964, citing 1 Davis

Administrative Law Treatise, 160.

9 See Notes on 27 ALR 2d 1208, 1209, and cases cited.

10 Marchitto v. Waterfront Commission of New York Harbor,

160 A 2d 832.

11 Section 71, Revised Administrative Code.

12 Section 580, Revised Administrative Code.

13 See Sections 1 and 3, Rule 23, Rules of Court.

14 Answer, Respondents, at 43, 45 Case Records.

15 See Section 4, Rule 23, Rules of Court.

16 1 Davis, Administrative Law Treatise 171.

17 NLRB v. Anchor Rome Mills, Inc., 197 F. 2d 447 (5th Cir.

1952).

18 Oklahoma Press Pub. Co. v. Walling, 327 US 185 (1946).

19 SEC v. Vacuum Can Co., 157 F. 2d 530, cert den 330 US

820 (1947).

20 See Marchitto, ante.

21 United States v. Morton Salt Co., 338 US 632 (1950),

abandoning the Harriman, 211 US 407; (1908) and
American Tobacco, 264 US 298; (1924) doctrine against
"fishing expedition".

22 Adams v. FTC 296 F, 2d 861, cert den 369 US 864

(1962).

23 Petition, at 6, Case Records; See Annexes B, B-1,

Petition; at 17-24, Case Records.
24 Petition, at 7, Case Records.

25 Rights of Witnesses in Administrative Investigations, 54

Harv. L. Rev. 1214.

26 L-19052, 29 Dec. 1962, 6 SCRA 1064, per Concepcion,

J.

27 L-25018, 26 May 1969, 28 SCRA 345, per Fernando, J.

28 Memorandum, Petitioners, at 154, Case Records.

29 Idem; Petition, at 8, Case Records.

30 Rights of Witnesses in Administrative Investigations,

ante.

31 Memorandum, Respondents, at 160, 161, Case Records.

32 US v. Borja, 191 F. Supp 563, 566; Farkas vs. Texas

Instrument, Inc., 375 F. 2d 629, 632, dert den 389 US 977.

33 San Miguel Brewery, Inc. vs. Magno, L-21879, 29 Sept.

1967, 21 SCRA 297.

34 Idem; also 2 Modern Constitutional Law, Antieau 1969

ed., 648.

35 Petite vs. United States, 361 US 529 (1960).

FERNANDO J., concurring.

1 Cf. I Davis, Administrative Law Treatise 159-232 (1958).

2 Cf. Jaffe Judicial Control of Administrative Action, 115-119

(1965).

3 Cf. Parker, Administrative Law, 135-143 (1952). .

4 Cf. Katz Cases and Materials in Administrative Law, 175-

221 (1947).

5 Cf. McFarland and Vanderbilt, Administrative Law: Cases

and Materials, 83-86 (1952).
6 According to Article IV, Section 3 of the present
Constitution:

"The right of the people to be secure in their persons,

houses, papers and effects against unreasonable searches
and seizures of whatever nature and for any purpose shall
not be violated, and no search warrant or warrant of arrest
shall issue except upon probable cause to be determined by
the judge, or such other responsible officer as may be
authorized by law, after examination under oath or
affirmation of the complainant and the witnesses he may
produce, and particularly describing the place to be
searched, and the persons or things to be seized."

7 338 US 632 (1950).

8 Ibid, 652-653.

9 Cf. F. T. C. v. Browning, 435 F2d 96 (1970); Local No.

104, Sheet Metal Worker's International Association v. Equal
Employment Opportunity Commission, 439 F2d 237 (1971);
United States v. Newman 441 F2d 165 (1971);Securities and
Exchange Commission v. First Security Bank of Utah, 447
F2d 166(1971); Modine Manufacturing Company v. National
Labor Relations, 453 F2d 292(1971); United States v. Litton
Industries, Inc., 462 F2d 14 (1972); Burlington Northern Inc.
v. Interstate Commerce Commission, 462 F2d 280 (1972);
Wilmoth v. Hansel, 25 A 86 (1892); Flanagan v. New York
LE & W.R. Co., 32 S. 84 (1895); Mobil Oil Corporation v.
Durkin, 278 A2d 477 (1971); Fred Depkin & Son, Inc. v.
Director, New Jersey Division of Taxation, 276 A2d 161
(1971); Appeal of Ohio Radio, Inc., 266 NE 2d 575 (1970);
Mckay v. Stewart & Cecire v. Stewart, 272 NE 2d 887
(1971); McKay v. Cecire 324 S2d 302 (1971); Koch v.
Kosydar 290 NE 2d 847 (1972); State Real Estate
Commission v. Roberts, 271 A2d 246 (1970).

10 338 US 632, 651-652 (1950).

11 Cf. U.S. v. Navarro, 3 Phil, 143 (1904); Ocampo v.

Jenkins, 14 Phil. 681 (1909); Worcester v. Ocampo, 22 Phil.
42 (1912); U.S. v. Ipil, 27 Phil. 530 (1914); Uy Kheytin v.
Villareal, 42 Phil. 886 (1920); People v. Carlos, 47 Phil. 626
(1925); Alvarez v. Court of First Instance, 64 Phil. 33 (1937);
Rodriguez v. Villamiel, 65 Phil. 230 (1937); Yee Sue Kay v.
Almeda, 70 Phil. 141 (1940); Moncado v. Peoples Court, 80
Phil. 1 (1948).

12 At 9.

13 According to Article IV, Section 20 of the present

Constitution: "No person shall be compelled to be a witness
against himself. Any person under investigation for the
commission of an offense shall have the right to remain
silent and to counsel, and to be informed of such right. No
force, violence, threat, intimidation, or any other means
which vitiate the free will shall be used against him. Any
confession obtained in violation of this section shall be
inadmissible in evidence."

14 Cf. Magtoto v. Manguera, L-37021, March 3, 1975, 63

SCRA 4.

15 At 9.

16 67 Phil. 62 (1939).

17 Cabal v. Kapunan, Jr., L-19052, December 29, 1962, 6

SCRA 1064. .

18 Pascual, Jr. v. Board of Medical Examiners, L-25018,

May 26, 1969,28 SCRA 345.

TEEHANKEE, J., dissenting.

1 Petition, p. 11, prayer (b).

2 Now known as Complaints and Investigating Office (CIO)

under Ex. Order No. 208, dated Feb. 9, 1967.

3 Main opinion at p. 9 thereof, citing petitioners'

Memorandum at p. 154, Rollo, emphasis supplied.

4 Petition, p. 3, par. 5.

5. Answer, Rollo, p. 40.

6 6 SCRA 1064.

7 28 SCRA 344, per Fernando, J.; emphasis supplied.

8 Idem. at p. 348; citing Chavez vs. CA, 24 SCRA 663.

9 L-33877-79, 41 SCRA 260 (Sept. 30, 1971).

10 At page 2 hereof.

11 At page 9.

12 Ex. Order No. 88, dated Sept. 25, 1967, amending Ex.
Order No. 9 which created petitioner "as the executive
instrumentality in the Office of the President" thus provides
that petitioner shall "receive and evaluate, and (to) conduct
fact-finding investigations of sworn complaints against the
acts, conduct or behavior of any public official or employee
and (to) file aid prosecute the proper charges with the
appropriate agency." Petition, Annexes A and A-1.
(Emphasis supplied). .

13 Petition, at page 8.

14 Vide Harriman vs. Interstate Commerce Commission, 211

U.S. 407 and Federal Trade Commission vs. American
Tobacco Co., 264 U.S. 298, where Justice Holmes in the
first case ruled out a federal commission's application to
require witness to testify before it except in connection with
specific complaints for violation of the Interstate Commerce
Act or with its investigation of specific subjects that might
have been the object of complaint. In the second case,
Justice Holmes likewise ruled against a federal commission's
fishing expeditions into private papers on the mere possibility
that they may disclose evidence of crime in view of the
Constitutional provision against unreasonable searches and
seizures.
Lastimosa v Vasquez

EN BANC

G.R. No. 116801 April 6, 1995

GLORIA G. LASTIMOSA, First Assistant Provincial Prosecutor

of Cebu, petitioner,
vs.
HONORABLE OMBUDSMAN CONRADO VASQUEZ,
HONORABLE ARTURO C. MOJICA, DEPUTY OMBUDSMAN
FOR THE VISAYAS, and HONORABLE FRANKLIN DRILON,
SECRETARY OF JUSTICE, and UNDERSECRETARY OF
JUSTICE RAMON J. LIWAG, respondents.

MENDOZA, J.:

This case requires us to determine the extent to which the

Ombudsman may call upon government prosecutors for assistance
in the investigation and prosecution of criminal cases cognizable by
his office and the conditions under which he may do so.

Petitioner Gloria G. Lastimosa is First Assistant Provincial

Prosecutor of Cebu. Because she and the Provincial Prosecutor
refused, or at any rate failed, to file a criminal charge as ordered by
the Ombudsman, an administrative complaint for grave misconduct,
insubordination, gross neglect of duty and maliciously refraining
from prosecuting crime was filed against her and the Provincial
Prosecutor and a charge for indirect contempt was brought against
them, both in the Office of the Ombudsman. In the meantime the
two were placed under preventive suspension. This is a petition for
certiorari and prohibition filed by petitioner to set aside the orders of
the Ombudsman with respect to the two proceedings.

The background of this case is as follows:

On February 18, 1993 Jessica Villacarlos Dayon, public health

nurse of Santa Fe, Cebu, filed a criminal complaint for frustrated
rape and an administrative complaint for immoral acts, abuse of
authority and grave misconduct against the Municipal Mayor of
Santa Fe, Rogelio Ilustrisimo. 1 The cases were filed with the Office
of the Ombudsman-Visayas where they were docketed as OMB-
VIS-(CRIM)-93-0140 and OMB-VIS-(ADM)-93-0036, respectively.

The complaint was assigned to a graft investigation officer who,

after an investigation, found no prima facie evidence and
accordingly recommended the dismissal of the complaint. After
reviewing the matter, however, the Ombudsman, Hon. Conrado
Vasquez, disapproved the recommendation and instead directed
that Mayor Ilustrisimo be charged with attempted rape in the
Regional Trial Court.2

Accordingly, in a letter dated May 17, 1994, the Deputy

Ombudsman for Visayas, respondent Arturo C. Mojica, referred the
case to Cebu Provincial Prosecutor Oliveros E. Kintanar for the
"filing of appropriate information with the Regional Trial Court of
Danao City, . . ." 3 The case was eventually assigned to herein
petitioner, First Assistant Provincial Prosecutor Gloria G.
Lastimosa.

It appears that petitioner conducted a preliminary investigation on

the basis of which she found that only acts of lasciviousness had
been committed.4 With the approval of Provincial Prosecutor
Kintanar, she filed on July 4, 1994 an information for acts of
lasciviousness against Mayor Ilustrisimo with the Municipal Circuit
Trial Court of Santa Fe. 5

In two letters written to the Provincial Prosecutor on July 11, 1994

and July 22, 1994, Deputy Ombudsman Mojica inquired as to any
action taken on the previous referral of the case, more specifically
the directive of the Ombudsman to charge Mayor Ilustrisimo with
attempted rape.6

As no case for attempted rape had been filed by the Prosecutor's

Office, Deputy Ombudsman Mojica ordered on July 27, 1994
Provincial Prosecutor Kintanar and petitioner Lastimosa to show
cause why they should not be punished for contempt for "refusing
and failing to obey the lawful directives" of the Office of the
Ombudsman. 7

For this purpose a hearing was set on August 1, 1994. Petitioner

and the Provincial Prosecutor were given until August 3, 1994
within which to submit their answer. 8 An answer 9 was timely filed
by them and hearings were thereupon conducted.

It appears that earlier, on July 22, 1994, two cases had been filed
against the two prosecutors with the Office of the Ombudsman for
Visayas by Julian Menchavez, a resident of Santa Fe, Cebu. One
was an administrative complaint for violation of Republic Act No.
6713 and P.D. No. 807 (the Civil Service Law) 10 and another one
was a criminal complaint for violation of §3(e) of Republic Act No.
3019 and Art. 208 of the Revised Penal Code. 11 The complaints
were based on the alleged refusal of petitioner and Kintanar to
obey the orders of the Ombudsman to charge Mayor Ilustrisimo
with attempted rape.

In the administrative case (OMB-VIS-(ADM)-94-0189) respondent

Deputy Ombudsman for Visayas Mojica issued an order on August
15, 1994, placing petitioner Gloria G. Lastimosa and Provincial
Prosecutor Oliveros E. Kintanar under preventive suspension for a
period of six (6) months, 12 pursuant to Rule III, §9 of the Rules of
Procedure of the Office of the Ombudsman (Administrative Order
No. 7), in relation to §24 of R.A. No. 6770. The order was approved
by Ombudsman Conrado M. Vasquez on August 16, 1994 and on
August 18, 1994 Acting Secretary of Justice Ramon J. Liwag
designated Eduardo Concepcion of Region VII as Acting Provincial
Prosecutor of Cebu.

On the other hand, the Graft Investigation Officer II, Edgardo G.

Canton, issued orders 13 in the two cases, directing petitioner and
Provincial Prosecutor Kintanar to submit their counter affidavits and
controverting evidence.

On September 6, 1994, petitioner Gloria G. Lastimosa filed the

present petition for certiorari and prohibition to set aside the
following orders of the Office of the Ombudsman and Department
of Justice:

(a) Letter dated May 17, 1994 of Deputy Ombudsman

for Visayas Arturo C. Mojica and related orders,
referring to the Office of the Cebu Provincial
Prosecutor the records of OMB-VIS-CRIM-93-0140,
entitled Jessica V. Dayon vs. Mayor Rogelio
Ilustrisimo, "for filing of the appropriate action (for
Attempted Rape) with the Regional Trial Court of
Danao City.

(b) Order dated July 27, 1994 of Deputy Ombudsman

Mojica and related orders directing petitioner and
Cebu Provincial Prosecutor Oliveros E. Kintanar to
explain in writing within three (3) days from receipt
why they should not be punished for indirect
Contempt of the Office of the Ombudsman "for
 refusing and failing . . . to file the appropriate
Information for Attempted Rape against Mayor
Rogelio Ilustrisimo.

(c) The 1st Indorsement dated August 9, 1994 of

Acting Justice Secretary Ramon J. Liwag, ordering
the Office of the Provincial Prosecutor to comply with
the directive of the Office of the Ombudsman that a
charge for attempted rape be filed against respondent
Mayor Ilustrisimo in recognition of the authority of said
Office.

(d) Order dated August 15, 1994 of Deputy

Ombudsman Mojica, duly approved by Ombudsman
Conrado Vasquez, and related orders in OMB-VIS-
(ADM)-94-0189, entitled Julian Menchavez vs.
Oliveros Kintanar and Gloria Lastimosa, placing
petitioner and Provincial Prosecutor Kintanar under
preventive suspension for a period of six (6) months,
without pay.

(e) The 1st Indorsement dated August 18, 1994 of

Acting Justice Secretary Liwag directing Assistant
Regional State Prosecutor Eduardo O. Concepcion
(Region VII) to implement the letter dated August 15,
1994 of Ombudsman Vasquez, together with the
Order dated August 15, 1994, placing petitioner and
Provincial Prosecutor Kintanar under preventive
suspension.

(f) Department Order No. 259 issued by Acting

Secretary Liwag on August 18, 1994, designating
Assistant Regional State Prosecutor Concepcion
Acting Provincial Prosecutor of Cebu.

Petitioner raises a number of issues which will be discussed not

necessarily in the order they are stated in the petition.

I.

The pivotal question in this case is whether the Office of the

Ombudsman has the power to call on the Provincial Prosecutor to
assist it in the prosecution of the case for attempted rape against
Mayor Ilustrisimo. Lastimosa claims that the Office of the
Ombudsman and the prosecutor's office have concurrent authority
to investigate public officers or employees and that when the former
first took cognizance of the case against Mayor Ilustrisimo, it did so
to the exclusion of the latter. It then became the duty of the
Ombudsman's office, according to petitioner, to finish the
preliminary investigation by filing the information in court instead of
asking the Office of the Provincial Prosecutor to do so. Petitioner
contends that the preparation and filing of the information were part
and parcel of the preliminary investigation assumed by the Office of
the Ombudsman and the filing of information in court could not be
delegated by it to the Office of the Provincial Prosecutor. Petitioner
defends her actuations in conducting a preliminary investigation as
having been made necessary by the insistence of the Ombudsman
to delegate the filing of the case to her office.

In any event, petitioner contends, the Office of the Ombudsman has

no jurisdiction over the case against the mayor because the crime
involved (rape) was not committed in relation to a public office. For
this reason it is argued that the Office of the Ombudsman has no
authority to place her and Provincial Prosecutor Kintanar under
preventive suspension for refusing to follow his orders and to cite
them for indirect contempt for such refusal.

Petitioner's contention has no merit. The office of the Ombudsman

has the power to "investigate and prosecute on its own or on
complaint by any person, any act or omission of any public officer
or employee, office or agency, when such act or omission appears
to be illegal, unjust, improper or inefficient." 14 This power has been
held to include the investigation and prosecution of any crime
committed by a public official regardless of whether the acts or
omissions complained of are related to, or connected with, or arise
from, the performance of his official duty 15 It is enough that the act
or omission was committed by a public official. Hence, the crime of
rape, when committed by a public official like a municipal mayor, is
within the power of the Ombudsman to investigate and prosecute.

In the existence of his power, the Ombudsman is authorized to call

on prosecutors for assistance. §31 of the Ombudsman Act of 1989
(R.A. No. 6770) provides:

Designation of Investigators and Prosecutors. — The

Ombudsman may utilize the personnel of his office
and/or designate of deputize any fiscal, state
prosecutor or lawyer in the government service to act
as special investigator or prosecutor to assist in the
investigation and prosecution of certain cases. Those
designated or deputized to assist him as herein
 provided shall be under his supervision and control.
(Emphasis added)

It was on the basis of this provision that Ombudsman Conrado

Vasquez and Deputy Ombudsman Arturo C. Mojica ordered the
Provincial Prosecutor of Cebu to file an information for attempted
rape against Mayor Rogelio Ilustrismo.

It does not matter that the Office of the Provincial Prosecutor had
already conducted the preliminary investigation and all that
remained to be done was for the Office of the Provincial Prosecutor
to file the corresponding case in court. Even if the preliminary
investigation had been given over to the Provincial Prosecutor to
conduct, his determination of the nature of the offense to be
charged would still be subject to the approval of the Office of the
Ombudsman. This is because under §31 of the Ombudsman's Act,
when a prosecutor is deputized, he comes under the "supervision
and control" of the Ombudsman which means that he is subject to
the power of the Ombudsman to direct, review, approve, reverse or
modify his (prosecutor's) decision. 16 Petitioner cannot legally act
on her own and refuse to prepare and file the information as
directed by the Ombudsman.

II.

The records show that despite repeated orders of the Ombudsman,

petitioner refused to file an information for attempted rape against
Mayor Ilustrisimo, insisting that after investigating the complaint in
the case she found that he had committed only acts of
lasciviousness.

§15(g) of the Ombudsman Act gives the Office of the Ombudsman

the power to "punish for contempt, in accordance with the Rules of
Court and under the same procedure and with the same penalties
provided therein." There is no merit in the argument that petitioner
and Provincial Prosecutor Kintanar cannot be held liable for
contempt because their refusal arose out of an administrative,
rather than judicial, proceeding before the Office of the
Ombudsman. As petitioner herself says in another context, the
preliminary investigation of a case, of which the filing of an
information is a part, is quasi judicial in character.

Whether petitioner's refusal to follow the Ombudsman's orders

constitutes a defiance, disobedience or resistance of a lawful
process, order or command of the Ombudsman thus making her
liable for indirect contempt under Rule 71, §3 of the Rules of Court
is for respondents to determine after appropriate hearing. At this
point it is important only to note the existence of the contempt
power of the Ombudsman as a means of enforcing his lawful
orders.

III.

Neither is there any doubt as to the power of the Ombudsman to

discipline petitioner should it be found that she is guilty of grave
misconduct, insubordination and/or neglect of duty, nor of the
Ombudsman's power to place her in the meantime under
preventive suspension. The pertinent provisions of the Ombudsman
Act of 1989 state:

§21. Officials Subject To Disciplinary Authority;

Exceptions. — The Office of the Ombudsman shall
have disciplinary authority over all elective and
appointive officials of the Government and its
subdivisions, instrumentalities and agencies, including
Members of the Cabinet, local government,
government-owned or controlled corporations and
their subsidiaries, except over officials who may be
removed only by impeachment or over Members of
Congress, and the Judiciary.

§22. Preventive Suspension. — The Ombudsman or

his Deputy may suspend any officer or employee
under his authority pending an investigation, if in his
judgment the evidence of guilt is strong, and (a) the
charge against such officer or employee involves
dishonesty, oppression or grave misconduct or
neglect in the performance of duty; (b) the charges
would warrant removal from the service; or (c) the
respondent's continued stay in office may prejudice
the case filed against him.

The preventive suspension shall continue until the

case is terminated by the Office of the Ombudsman
but not more than six months, without pay, except
when the delay in the disposition of the case by the
Office of the Ombudsman is due to the fault,
negligence or petition of the respondent, in which
case the period of such delay shall not be counted in
computing the period of suspension herein provided.

A.
Petitioner contends that her suspension is invalid because the
order was issued without giving her and Provincial Prosecutor
Kintanar the opportunity to refute the charges against them and
because, at any rate, the evidence against them is not strong as
required by §24. The contention is without merit. Prior notice and
hearing is a not required, such suspension not being a penalty but
only a preliminary step in an administrative investigation. As held in
Nera v. Garcia: 17

In connection with the suspension of petitioner before

he could file his answer to the administrative
complaint, suffice it to say that the suspension was
not a punishment or penalty for the acts of dishonesty
and misconduct in office, but only as a preventive
measure. Suspension is a preliminary step in an
administrative investigation. If after such investigation,
the charges are established and the person
investigated is found guilty of acts warranting his
removal, then he is removed or dismissed. This is the
penalty. There is, therefore, nothing improper in
suspending an officer pending his investigation and
before the opportunity to prove his innocence.
(Emphasis added).

It is true that, under §24 of the Ombudsman's Act, to justify the

preventive suspension of a public official, the evidence against him
should be strong, and any of the following circumstances is
present:

(a) the charge against such officer or employee

involves dishonesty, oppression or grave misconduct
or neglect in the performance of duty;

(b) the charges would warrant removal from the

service; or

(c) the respondent's continued stay in office may

prejudice the case filed against him.

As held in Buenaseda v. Flavier, 18 however, whether the evidence

of guilt is strong is left to the determination of the Ombudsman by
taking into account the evidence before him. A preliminary hearing
as in bail petitions in cases involving capital offenses is not
required. In rejecting a similar argument as that made by petitioner
in this case, this Court said in that case:
 The import of the Nera decision is that the disciplining
authority is given the discretion to decide when the
evidence of guilt is strong. This fact is bolstered by
Section 24 of R.A. No. 6770, which expressly left
such determination of guilt to the "judgment" of the
Ombudsman on the basis of the administrative
complaint. . . . 19

In this case, respondent Deputy Ombudsman Mojica justified the

preventive suspension of petitioner and Provincial Prosecutor
Kintanar on the following grounds:

A careful assessment of the facts and circumstances

of the herein cases and the records pertaining thereto
against respondents [Provincial Prosecutor Kintanar
and herein petitioner] clearly leads to the conclusion
that the evidence on record of guilt is strong and the
charges involved offenses of grave misconduct, gross
neglect of duty and dishonesty which will warrant
respondents [Provincial Prosecutor Kintanar and
herein petitioner] removal from the service. Moreover,
considering the unabashed attitude of respondents in
openly announcing various false pretexts and alibis to
justify their stubborn disregard for the lawful directives
of the Ombudsman as their official position in their
pleadings filed in OMB-VIS-0-94-0478 and in print
and broadcast media, the probability is strong that
public service more particularly in the prosecution of
cases referred by the Office of the Ombudsman to the
Cebu Provincial Prosecutor's office will be disrupted
and prejudiced and the records of said cases even be
tampered with if respondents [Provincial Prosecutor
Kintanar and herein petitioner] are allowed to stay in
the Cebu Provincial Prosecutor's Office during the
pendency of these proceedings.

Indeed respondent Deputy Ombudsman Mojica had personal

knowledge of the facts justifying the preventive suspension of
petitioner and the Provincial Prosecutor since the acts alleged in
the administrative complaint against them were done in the course
of their official transaction with the Office of the Ombudsman. The
administrative complaint against petitioner and Provincial
Prosecutor Kintanar was filed in connection with their designation
as deputies of the ombudsman in the prosecution of a criminal case
against Mayor Rogelio Ilustrisimo. Respondent Deputy
Ombudsman did not have to go far to verify the matters alleged in
determine whether the evidence of guilt of petitioner and Provincial
Prosecutor was strong for the purpose of placing them under
preventive suspension.

Given the attitude displayed by petitioner and the Provincial

Prosecutor toward the criminal case against Mayor Rogelio
Ilustrisimo, their preventive suspension is justified to the end that
the proper prosecution of that case may not be hampered. 20 In
addition, because the charges against the two prosecutors involve
grave misconduct, insubordination and neglect of duty and these
charges, if proven, can lead to a dismissal from public office, the
Ombudsman was justified in ordering their preventive suspension.

B.

Petitioner questions her preventive suspension for six (6) months

without pay and contends that it should only be for ninety (90) days
on the basis of cases decided by this Court. Petitioner is in error.
She is referring to cases where the law is either silent or expressly
limits the period of suspension to ninety (90) days. With respect to
the first situation, we ruled in the case of Gonzaga v.
Sandiganbayan 21 that —

To the extent that there may be cases of indefinite

suspension imposed either under Section 13 of Rep.
Act 3019, or Section 42 of Pres. Decree 807, it is best
for the guidance of all concerned that this Court set
forth the rules on the period of preventive suspension
under the aforementioned laws, as follows:

1. Preventive suspension under Section 13, Rep. Act

3019 as amended shall be limited to a maximum
period of ninety (90) days, from issuances thereof,
and this applies to all public officers, (as defined in
Section 2(b) of Rep. Act 3019) who are validly
charged under said Act.

2. Preventive suspension under Section 42 of Pres.

Decree 807 shall apply to all officers or employees
whose positions are embraced in the Civil Service, as
provided under Sections 3 and 4 of said Pres. Decree
807, and shall be limited to a maximum period of
ninety (90) days from issuance, except where there is
delay in the disposition of the case, which is due to
the fault, negligence or petition of the respondent, in
which case the period of delay shall both be counted
 in computing the period of suspension herein stated;
provided that if the person suspended is a presidential
appointee, the continuance of his suspension shall be
for a reasonable time as the circumstances of the
case may warrant.

On the other hand, petitioner and the Provincial Prosecutor were

placed under preventive suspension pursuant to §24 of the
Ombudsman Act which expressly provides that "the preventive
suspension shall continue until the case is terminated by the Office
of the Ombudsman but not more than six months, without pay."
Their preventive suspension for six (6) months without pay is thus
according to law.

C.

Nor is there merit in petitioner's claim that the contempt charge

should first be resolved before any action in the administrative
complaint case can be taken because the contempt case involves a
prejudicial question. There is simply no basis for this contention.
The two cases arose out of the same act or omission and may
proceed hand in hand, or one can be heard before the other.
Whatever order is followed will not really matter.

WHEREFORE, the petition is DISMISSED for lack of merit and the

Motion to Lift Order of Preventive Suspension is DENIED.

SO ORDERED.

Narvasa, C.J., Feliciano, Padilla, Bidin, Davide, Jr., Bellosillo, Melo,

Quiason, Puno, Vitug, Kapunan and Francisco, JJ., concur.

Romero, J., is on leave.

Separate Opinions

REGALADO, J., concurring:

I concur and welcome this opportunity to make some observations

on the matter of the power of the Ombudsman to preventively
suspend petitioner for six (6) months without pay, and which
petitioner assails in the case at bar.
It would, of course, be a handy expedient to just refer petitioner to
the provisions of Section 24 of Republic Act No. 6770 which
expressly grants that authority to respondent Ombudsman.
Conveniently, we would merely need to remind petitioner that for
this Court to limit such authority to suspend to a lesser period
would, in effect, be constitutive of judicial legislation. But I will go a
little further by essaying the rationale for such conferment of a more
extended authority to the Ombudsman on the issue of preventive
suspension, vis-a-vis the provisions on preventive suspension in
other enactments, and thereby dispel lingering doubts or misgivings
thereon.

It is true that the Civil Service Decree allows a maximum preventive

suspension of only ninety (90) days. 1 However, a comparison of
the grounds therefor2 with those provided for in the Ombudsman
Act 3 will readily show that there is in the latter the added
requirement that the evidence of guilt is strong and the additional
ground that "the respondent's continued stay in office may
prejudice the case filed against him." Further, in the aforecited
Section 41 of the Civil Service Decree, preventive suspension may
be imposed on the mere simple showing that the charge involves
dishonesty, oppression or grave misconduct, neglect in the
performance of duty, or if there are reasons to believe that the
respondent is guilty of charges which would warrant his removal
from the service: whereas in Section 24 of Republic Act No. 6770, it
is required that such charges must be supported by strong
evidence of guilt in order to justify preventive suspension.

On the other hand, the still shorter period of sixty (60) days
prescribed in the Local Government Code of 1991 4 as the
maximum period for the preventive suspension of local elective
officials is justifiable and deemed sufficient not only because the
respondent involved is elected by the people, but more precisely
because such preventive suspension may only be ordered "after
the issues are joined." That means that before the order of
suspension is issued, all the preliminary requirements and
exchanges had been completed and the respondent had already
filed his counter-affidavits to the affidavits of the complainant and
the latter's witnesses. At that stage, the case is ready for resolution
if the parties would not opt for a formal hearing.

The preparatory procedures before such stage is reached

undoubtedly necessitate and consume a lot of time. Yet, it will be
noted that those preliminary steps are included in the case of the
period of preventive suspension ordered even before issues are
joined, as in preventive suspension by the Ombudsman pursuant to
the aforecited Section 24 of Republic Act No. 6770. They
conceivably include the service of the subpoena or order for the
respondent to file his counter-affidavits, the usual resort to motions
for extension of time to comply with the same, the improvident
recourse to the Supreme Court to suspend, annul or otherwise
delay the proceedings, as well as the filing and resolution of
motions to dismiss or for a bill of particulars or for the inhibition of
the investigating officer, the denial of which motions is often also
brought all over again to this Court on petitions for certiorari.

An illustration of how the proceedings can be delayed by such

procedural maneuvers is afforded by the case of Buenaseda, et al.
vs. Flavier, et al.,5 the decision in which was ultimately promulgated
by this Court on September 21, 1993. The petitioners therein
questioned through repeated resourceful submissions the order of
preventive suspension issued by the Ombudsman on January 7,
1992 and it took more than twenty (20) months before said order
could eventually be reviewed on the merits and finally sustained by
the Supreme Court.

That is not all. Even after the formal hearing is scheduled,

respondents can easily resort to the same dilatory tactics usually
employed by an accused in regular court trials in criminal actions.
Such stratagems can obviously result in the continued occupancy
by the respondent of his office and, in the language of the law,
could "prejudice the case filed against him."

The longer period of six (6) months for preventive suspension

under Republic Act No. 6770 was evidently induced by a desire to
more meaningfully emphasize and implement the authority of the
Office of the Ombudsman over public officials and employees in
order to serve as a deterrent against illegal, unjust, improper and
inefficient conduct on their part. As the agency mandated by the
Constitution to undertake such task, it was invested with the
corresponding authority to enable it to perform its mission. This
intention is easily deducible from the pertinent constitutional
provisions creating said office and from the express provisions of
Republic Act No. 6770. Significantly, it is the only body authorized
to investigate even officials removable by impeachment. 6

For purposes of the present case, therefore, and specifically on the

issue subject of this concurring opinion, it would be advisable to
recall what we said in Buenaseda, to wit:

The purpose of RA No. 6770 is to give the

Ombudsman such powers as he may need to perform
 efficiently the task committed to him by the
Constitution. Such being the case, said statute,
particularly its provisions dealing with procedure,
should be given such interpretation that will effectuate
the purposes and objective of the Constitution. Any
interpretation that will hamper the work of the
Ombudsman should be avoided.

A statute granting powers to an agency created by the

Constitution should be liberally construed for the
advancement of the purposes and objectives for
Department of which it was created (Cf. Department
of Public Utilities v. Arkansas Louisiana Gas, Co., 200
Ark. 983, 142 S.W. [2d] 213 [1940]; Wallace v.
Feehan, 206 Ind. 522, 190 N.E. 438 [1934]).

On the foregoing considerations, which are much a matter of

judicial and legislative experience, it is puerile for petitioner to
impugn the expanded authority of preventive suspension as now
granted by law to the Ombudsman. In fact, in certain situations, the
maximum allowable period may even prove too short to subserve
the intended purpose of the law.

Footnotes

1 Petition for Certiorari and Prohibition, Annex A,

Rollo, pp. 42-43.

2 Annex B, Rollo, pp. 47-52.

3 Annex D, Rollo, p. 54.

4 Annex H, Rollo, pp. 59-69.

5 Annex I, Rollo, p. 70.

6 Annex E & F, Rollo, pp. 55-57.

7 Rollo, p. 72.

8 Annex O, Rollo, p. 80.

9 Annex Q, Rollo, pp. 83-90.

10 OMB-VIS-(ADM)-94-0189.
11 OMB-VIS-(CRIM)-94-0475.

12 Annex V, Rollo, pp. 95-96.

13 Annexes FF and GG, Rollo, pp. 110 and 118.

14 Ombudsman Act of 1989, (R.A. No. 6770) §15(1).

15 Deloso v. Domingo, 191 SCRA 545 (1990).

16 ADMINISTRATIVE CODE of 1987, Bk IV, Ch. 7,

§38(1).

17 106 Phil. 1031 (1960). Accord, Buenaseda v.

Flavier, 226 SCRA 645 (1993).

18 226 SCRA 645 (1993).

19 At 655.

20 Cf. Lacson v. Rogue, 92 Phil. 456, 469 (1953).

21 201 SCRA 417, 427-8 (1991).

REGALADO, J., concurring:

1 Section 42, Presidential Decree No. 807.

2 Section 41, id.

3 Section 24, Republic Act No. 6770.

4 Section 63, Republic Act No. 7160.

5 G.R. No. 196719, September 21, 1993, 226 SCRA

645.

6 Section 22, Republic Act No. 6770.

Saunar v Executive Secretary

THIRD DIVISION

December 13, 2017

G.R. No. 186502

CARLOS R. SAUNAR, Petitioner

vs.
EXECUTIVE SECRETARY EDUARDO R. ERMITA AND CONSTANCIA P. DE
GUZMAN, CHAIRPERSON OF THE PRESIDENTIAL ANTI-GRAFT
COMMISSION, Respondents

DECISION

MARTIRES, J.:

This petition for review on certiorari seeks to reverse and set aside the 20
October 2008 Decision1 and the 17 February 2009 Resolution2 of the Court of
Appeals (CA) in CA-G.R. SP No. 100157 which affirmed the 19 January 2007
decision3 of the Office of the President (OP) dismissing petitioner Carlos R.
Saunar (Saunar) from government service.

THE FACTS

Saunar was a former Regional Director of the National Bureau of Investigation

(NBI), which he joined as an agent in 1988. Through the years, he rose from the
ranks and eventually became the Chief of the Anti-Graft Division. During his time
as chief of the said division, Saunar conducted an official investigation regarding
the alleged corruption relative to the tobacco excise taxes and involving then
Governor Luis "Chavit" Singson, former President Joseph E. Estrada (President
Estrada), and former Senator Jinggoy Estrada. President Estrada's assailed
involvement in the tobacco excise tax issue became one of the predicate crimes
included in his indictment for plunder.4

In Special Order No. 40035 dated 27 August 2004, Saunar was reassigned as
regional director for Western Mindanao based in Zamboanga City. During his
stint as such, he received a subpoena ad testificandum from the Sandiganbayan
requiring him to testify in the plunder case against President Estrada. After
securing approval from his immediate supervisor Filomeno Bautista (Bautista),
Deputy Director for Regional Operation Services (DDROS), Saunar appeared
before the Sandiganbayan on several hearing dates, the last being on 27
October 2004.6
On 29 October 2004, then NBI Director Reynaldo Wycoco (Wycoco) issued
Special Order No. 0050337 informing Saunar that he was relieved from his duties
as regional director for Western Mindanao and was ordered to report to the
DDROS for further instructions. Pursuant thereto, he reported to Bautista on the
first week of November 2004. Bautista informed Saunar that an investigation was
being conducted over his testimony before the Sandiganbayan and that he
should just wait for the developments in the investigation. In the meantime,
Bautista did not assign him any duty and told him to be available at any time
whenever he would be needed. He made himself accessible by staying in
establishments near the NBI. In addition, he also attended court hearings
whenever required.8

On 6 October 2006, Saunar received an order from the Presidential Anti-Graft

Commission (PAGC) requiring him to answer the allegations against him in the
PAGC Formal Charge dated 3 October 2006. The charge was based on a letter,
dated 19 August 2005, from Wycoco recommending an immediate appropriate
action against Saunar for his failure to report for work since 24 March 2005,
without approved leave of absence for four (4) months. 9

On 23 October 2006, Saunar was reassigned as regional director of the Bicol

Regional Office. On 29 January 2007, he received a copy of the OP decision
dismissing him from service.

The OP Decision

In its 19 January 2007 decision, the OP found Saunar guilty of Gross Neglect of
Duty and of violating Section 3(e) of Republic Act (R.A.) No. 3019, and dismissed
him from service. It pointed out that Saunar failed to report for work for more than
a year which he himself admitted when he explained that he did not report for
work because he had not been assigned any specific duty or responsibility. The
OP highlighted that he was clearly instructed to report to the DDROS but he did
not do so. It added that it would have been more prudent for Saunar to have
reported for work even if no duty was specifically assigned to him, for the precise
reason that he may at any time be tasked with responsibilities. The OP, however,
absolved Saunar from allegedly keeping government property during the time he
did not report for work, noting that he was able to account for all the items
attributed to him. The dispositive portion reads:

WHEREFORE, premises considered, and as recommended by PAGC, Atty.

Carlos R. Saunar, Regional Director, NBI, for Gross Neglect of Duty under
Section 22(b), Rule XIV of the Omnibus Rules Implementing Book V of EO 292 in
relation to Section 4(A) of RA 6713 and for violation of Section 3(e) of RA 3019,
is hereby DISMISSED from government service with cancellation of eligibility,
forfeiture of leave credits and retirement benefits, and disqualification for re-
employment in the government service.10
Saunar moved for reconsideration but it was denied by the OP in its 12 June
2007 resolution.11 Undeterred, he appealed before the CA.

The CA Ruling

In its assailed 20 October 2008 decision, the CA affirmed in toto the OP decision.
The appellate court ruled that Saunar was not deprived of due process because
he was informed of the charges against him and was given the opportunity to
defend himself. It expounded that the absence of formal hearings in
administrative proceedings is not anathema to due process.

On the other hand, the CA agreed that Saunar was guilty of Gross Neglect of
Duty as manifested by his being on Absence Without Leave (AWOL) for a long
period of time. The appellate court disregarded Saunar's explanation that he
stayed in establishments nearby and that he had attended court hearings from
time to time. In addition, the CA found that Saunar violated Section 3(e) of R.A.
No. 3019 because public interest was prejudiced when he continued to receive
his salary in spite of his unjustified absences. Thus, it ruled:

WHEREFORE, in view of the foregoing premises, the petition for review filed in
this case is hereby DENIED and, consequently, DISMISSED for lack of merit,
and the assailed Decision of the Executive Secretary Eduardo R. Ermita dated
January 19, 2007 is hereby AFFIRMEDintoto.12

Saunar moved for reconsideration but it was denied by the CA in its assailed 17
February 2009 resolution.

Hence, this appeal raising the following:

ISSUES

WHETHER THE HONORABLE COURT OF APPEALS ERRED IN RULING

THAT PETITIONER WAS NOT DENIED DUE PROCESS AND THAT
RESPONDENTS DID NOT VIOLATE PETITIONER'S RIGHT TO SECURITY OF
TENURE AS GUARANTEED IN THE CONSTITUTION; AND

II

WHETHER THE HONORABLE COURT OF APPEAELS GRAVELY ERRED

AND GRAVELY ABUSED ITS DISCRETION IN UPHOLDING THE FINDINGS
OF RESPONDENTS THAT PETITIONER COMMITTED GROSS NEGLECT OF
DUTY, HAD ABANDONED HIS POST AND WENT ON AWOL FOR HIS
ALLEGED FAILURE TO REPORT FOR WORK FROM MARCH 24, 2005 TO
MAY 2006.13
 THE COURT’S RULING

The petition is meritorious.

Administrative due process

revisited

Saunar bewails that he was deprived of due process, pointing out that no real
hearing was ever conducted considering that the clarificatory conference
conducted by the P AGC was a sham. In addition, he asserts that he was not
notified of the charges against him because he was only made aware of the
allegations after the P AGC had formally charged him. Further, Saunar highlights
the delay between the time PAGC received Wycoco’s letter-complaint and when
he received the formal charge from the P AGC.

Section 1, Article III of the Constitution is similar with the Fifth and Fourteenth
Amendment of the American Constitution in that it guarantees that no one shall
be deprived of life, liberty or property without due process of law. While the words
used in our Constitution slightly differ from the American Constitution, the
guarantee of due process is used in the same sense and has the same force and
effect.14 Thus, while decisions on due process of American courts are not
controlling in our jurisdiction, they may serve as guideposts in the analysis of due
process as applied in our legal system.

In American jurisprudence, the due process requirement entails the opportunity

to be heard at a meaningful time and in a meaningful manner.15 Likewise, it was
characterized with fluidity in that it negates any concept of inflexible procedures
universally applicable to every imaginable situation.16

In Goldberg v. kelly(Goldberg), 17 the United States (US.) Supreme Court ruled

that due process requires the opportunity for welfare r,ecipients to confront the
witnesses against them at a pre-termination hearing before welfare benefits are
terminated, to wit:

The opportunity to be heard must be tailored to the capacities and circumstances

of those who are to be heard. It is not enough that a welfare recipient may
present his position to the decision maker in writing or second hand through his
caseworker.x x x Moreover, written submissions do not afford the flexibility of oral
presentations; they do not permit the recipient to mold his argument to the issues
the decision maker appears to regard as important. Particularly where credibility
and veracity are at issue, as they must be in many termination proceedings,
written submissions are wholly unsatisfactory basis for decision.

In Goldberg, the U.S. Supreme Court went on to highlight the importance of

confronting the witnesses presented against the claimant, viz:
In almost every setting where important decisions turn on questions of fact, due
process requires an opportunity to confront and cross-examine adverse
witnesses. x x x What we said in Greene v McElroy, 360 US 474, 496-497, 3 Led
2d 1377, 1390, 1391, 79 S Ct 1400 (1959), is particularly pertinent here:

Certain principles have remained relatively immutable in our jurisprudence. One

of these is that where governmental action seriously injures an individual, and the
reasonableness of the action depends on fact findings the evidence used to
prove the Government's case must be disclosed to the individual so that he has
an opportunity to show that it is untrue. While this is important in the case of
documentary evidence, it is even more important where the evidence consists of
the testimony of individuals whose memory might be faulty or who, in fact, might
be perjurers or persons motivated by malice, vindictiveness, intolerance,
prejudice or jealousy. We have formalized these protections in the requirements
of confrontation and cross-examination. They have ancient roots. They find
expression in the Sixth Amendment . . . This Court has be zealous to protect
these rights from erosion. It has spoken out not only in criminal cases, but also in
all types of cases where administrative actions were under scrutiny.

Welfare recipients must therefore be given an opportunity to confront and cross-

examine the witnesses relied on by the department.18

In subsequent decisions, the U.S. Supreme Court clarified that a lack of formal
hearing in the administrative level does not violate procedural due process. In
Arnett v. Kennedy (Arnett), 19 a case involving the dismissal of a non-
probationary federal employee, the US Supreme Court ruled that a trial-type
hearing before an impartial hearing officer was not necessary before the
employee could be removed from office because the hearing afforded by
administrative appeal procedures after the actual dismissal is a sufficient
requirement of the Due Process Clause.

In Mathews v. Eldridge (Mathews), 20 the U.S. Supreme Court explained that an

evidentiary hearing prior to termination of disability benefits is not indispensable,
to wit:

Only in Goldberg has the Court held that due process requires an evidentiary
hearing prior to a temporary deprivation. It was emphasized there that welfare
assistance is given to persons on the very margin of subsistence:

The crucial factor in this context x x x is that termination of aid pending resolution
of a controversy over eligibility may deprive an eligible recipient of the very
means by which to live while he waits.

Eligibility for disability benefits, in contrast, is not based upon financial need. x x x

xxxx
All that is necessary is that the procedures be tailored, in light of the decision to
be made, to the "capacities and circumstances of those who are to be heard to
insure that they are given a meaningful opportunity to present their case. In
assessing what process is due in this case, substantial weight must be given to
the good-faith judgments of the individuals charged by Congress with the
administration of social welfare programs that the procedures they have provided
assure fair consideration of the entitlement claims of individuals. This is
especially so where, as here, the prescribed procedures not only provide the
claimant with an effective process for asserting his claim prior to any
administrative action, but also assure a right to an evidentiary hearing, as well as
to subsequent judicial review, before the denial of his claim becomes final. 21

It is true that in both Arnett and Mathews, the U.S. Supreme Court ruled that due
process. was not violated due to the lack of a formal hearing before the
employee "was dismissed and welfare benefits were cancelled in the respective
cases: Nevertheless, in bo.th cases it was recognized that the aggrieved party
had the opportunity for a hearing to settle factual or evidentiary disputes in
subsequent procedures. In our legal system, however, the opportunity for a
hearing after the administrative level may not arise as the reception of evidence
or the conduct of hearings are discretionary on the part of the appellate courts.

In our jurisdiction, the constitutional guarantee of due process is also not limited
to an exact definition.22 It is flexible in that it depends on the circumstances and
varies with the subject matter and the necessities of the situation.23

In the landmark case of Ang Tibay v. The Court of Industrial Relations,24 the
Court eruditely expounded on the concept of due process in administrative
proceedings, to wit:

The fact, however, that the Court of Industrial Relations may be said to be free
from the rigidity of certain procedural requirements does not mean that it can, in
justiciable cases coming before it, entirely ignore or disregard the fundamental
and essential requirements of due process in trials and investigations of an
administrative character. There are cardinal primary rights which must be
respected even in proceedings of this character:

(1) The first of these rights is the right to a hearing, which includes the right of the
party interested or affected to present his own case and submit evidence in
support thereof. In the language of Chief Justice Hughes, in Morgan v. U. S., 304
U. S. 1, 58 S. Ct. 773, 999, 82 Law. ed 1129, "the liberty and property of the
citizen shall be protected by the rudimentary requirements of fair play."

(2) Not only must the party be given an opportunity to present his case and to
adduce evidence tending to establish the rights which he asserts but the tribunal
must consider the evidence presented. (Chief Justice Hughes in Morgan v. U.S.
298 U.S. 468, 56 S. Ct. 906, 80 Law. ed. 1288.) In the language of this Court in
Edwards vs. McCoy, 22 Phil., 598, "the right to adduce evidence, without the
corresponding duty on the part of the board to consider it, is vain. Such right is
conspicuously futile if the person or persons to whom the evidence is presented
can thrust it aside without notice or consideration."

(3) While the duty to deliberate does not impose the obligation to decide right, it
does imply a necessity which cannot be disregarded, namely, that of having
something to support its decision. A decision with absolutely nothing to support it
is a nullity, a place when directly attached." (Edwards vs. McCoy, supra.) This
principle emanates from the more fundamental principle that the genius of
constitutional government is contrary to the vesting of unlimited power anywhere.
Law is both a grant and a limitation upon power.

(4) Not only must there be some evidence to support a finding or conclusion (City
of Manila vs. Agustin, G. R. No. 45844, promulgated November 29, 1937,
XXXV10. G. 1335), but the evidence must be "substantial." (Washington, Virginia
& Maryland Coach Co. v. National Labor Relations Board, 301 U. S. 142, 147, 57
S. Ct. 648, 650, 81 Law ed 965.) "Substantial evidence is more than a mere
scintilla It means such relevant evidence as a reasonable mind might accept as
adequate to support a conclusion." (Appalachian Electric Power v. National Labor
Relations Board, 4 Cir., 93 F. 2d 985, 989; National Labor Relations Board v.
Thompson Products, 6 Cir., 97 F. 2d 13, 15; Ballston-stillwater Knitting Co. v.
National Labor Relations Board, ·2 Cir., 98 F. 2d 758, 760.) ... The statute
provides that 'the rules of evidence prevailing in courts of law and equity
shall not be controlling.' The obvious purpose of this and similar
provisions is to free administrative boards from the compulsion of
technical rules so that the mere admission of matter which would be
deemed incompetent in judicial proceedings would not invalidate the
administrative order. (Interstate Commerce Commission v. Baird, 194 U. S. 25,
44, 24 S. Ct. 563, 568, 48 Law. ed. 860; Interstate Commerce Commission v.
Louisville & Nashville R. Co., 227 U. S. 88, 93, 33 S. Ct. 185, 187, 57 Law. ed.
431; United States v. Abilene & Southern Ry. Co., 265 U. S. 274, 288, 44 S. Ct.
565, 569, 68 Law. ed. lola; Tagg Bros. & Moorhead v. United States, 280 U. S.
420, 442, 50 S. Ct. 220, 225, 74 Law. ed. 624.) But this assurance of a desirable
flexibility in administrative procedure does not go so far as to justify orders
without a basis in evidence having rational probative force. Mere uncorroborated
hearsay or rumor does not constitute substantial evidence. (Consolidated Edison
Co. v. National Labor Relations Board, 59 S. Ct. 206, 83 Law. ed. No. 4, Adv.
Op., p. 131.)"

(5) The decision must be rendered on the evidence presented at the hearing, or
at least contained in the record and disclosed to the parties affected. (Interstate
Commence Commission vs. L. & N. R. Co., 227 U. S. 88, 33 S. Ct. 185, 57 Law.
ed. 431.) Only by confining the administrative tribunal to the evidence disclosed
to the parties, can the latter be protected in their right to know and meet the case
against them. It should not, however, detract from their duty actively to see
that the law is enforced, and for that purpose, to use the authorized legal
methods of securing evidence and informing itself of facts material and
relevant to the controversy. Boards of inquiry may be appointed for the
purpose of investigating and determining the facts in any given case, but their
report and decision are only advisory. (Section 9, Commonwealth Act No. 103.)
The Court of Industrial Relations may refer any industrial or agricultural dispute of
any matter under its consideration or advisement to a local board of inquiry, a
provincial fiscal, a justice of the peace or any public official in any part of the
Philippines for investigation, report and recommendation, and may delegate to
such board or public official such powers and functions as the said Court of
Industrial Relations may deem necessary, but such delegation shall not affect the
exercise of the Court itself of any of its powers (Section 10, ibid.)

(6) The Court of Industrial Relations or any of its judges, therefore, must act on
its or his own independent consideration of the law and facts of the controversy,
and not simply accept the views of a subordinate in arriving at a decision. It may
be that the volume of work is such that it is literally impossible for the titular
heads of the Court of Industrial Relations personally to decide all controversies
coming before them. In the United States the difficulty is solved with the
enactment of statutory authority ,authorizing examiners or other subordinates to
render final decision, with right to appeal to board or commission, but in our case
there is no such statutory authority.

(7) The Court of Industrial Relations should, in all controversial questions, render
its decision in such a manner that the parties to the proceeding can know the
various issues involved, and the reasons for the decisions rendered. The
performance of this duty is inseparable from the authority conferred upon it. 25
(emphases supplied)

From the pronouncements of the Court in Ang Tibay, the fluid concept of
administrative due process continued to progress. In In Re: De Borja and
Flores,26 the Court ruled that there was no denial of due process when the Public
Service Commission cancelled the certificate of Jose de Borja to operate an ice
plant without prior notice or hearing because a hearing was conducted after the
applicant filed a motion for reconsideration. In Manila Trading Supply Co. v.
Philippine Labor Union,27 the Court ruled that due process was observed even if
the report of the investigating officer was not set for hearing before the Court of
Industrial Relations because during the investigation stage, the parties were
given the opportunity to cross-examine and present their side to the case. It is
noteworthy that in both cases due process was observed because the parties
were given the chance for a hearing where they could confront the witnesses
against them.

In Gas Corporation of the Phils. v. Minister Inciong, 28 the Court explained that
there is no denial of due process when a party is afforded the right to cross-
examine the witnesses but fails to exercise the same, to wit:
1. The vigor with which counsel for petitioner pressed the claim that there was a
denial of procedural due process is inversely proportional to the merit of this
certiorari and prohibition suit as is quite evident from the Comment of the office of
the Solicitor General. It is undoubted that the due process mandate must be
satisfied by an administrative tribunal or agency. So it was announced by
Justice Laurel in the landmark case of Ang Tibay v. Court of Industrial
Relations. That is still good law. It follows, therefore, that if procedural due
process were in fact denied, then this petition must prosper. It is equally well-
settled, however, that the standard of due process that must be met in
proceedings before administrative tribunals allows a certain latitude as
long as the element of fairness is not ignored. So the following recent cases
have uniformly held: Maglasang v. Opie, Nation Multi Service Labor Union v.
Agcaoili, Jacqueline Industries v. National Labor Relations Commission,
Philippine Association of Free Labor Unions v. Bureau of Labor Relations,
Philippine Labor Alliance Council v. Bureau of Labor Relations, and Montemayor
v. Araneta University Foundation. From the Comment of the office of the Solicitor
General, it is quite clear that no imputation of arbitrariness can be justified. The
opportunity to present its side of the case was given both parties to the
controversy. If, for reasons best known to itself, petitioner did not avail of its right
to do so, then it has only itself to blame. No constitutional infirmity could then be
imputed to the proceeding before the labor arbiter.29 (emphasis supplied)

Again, there was no denial of due process in the above-mentioned case because
the parties were ultimately given the chance to confront the witnesses against
them. It just so happened that therein petitioner failed to

promptly avail of the same.

In Arboleda v. National Labor Relations Commission (Arbqleda), 30 the Court

expounded that administrative due process does not necessarily connote full
adversarial proceedings, to wit:

The requirement of notice and hearing in termination cases does not

connote full adversarial proceedings as elucidated in numerous cases
decided by this Court. Actual adversarial proceedings become necessary only
for clarification or when there is a need to propound searching questions to
witnesses who give vague testimonies. This is a procedural right which the
employee must ask for since it is not an inherent right, and summary
proceedings may be conducted thereon.31 (emphasis supplied)

Thus, while the Court in Arboleda recognized that the lack of a formal hearing
does not necessarily transgress the due process guarantee, it did not however
regard the formal hearing as a mere superfluity. It continued that it is a
procedural right that may be invoked by the party. It is true that in subsequent
cases,32 the Court reiterated that a formal hearing is not obligatory in
administrative proceedings because the due process requirement is satisfied if
the parties are given the opportunity to explain their respective sides through
position papers or pleadings. Nonetheless, the idea that a formal hearing is not
indispensable should not be hastily thrown around by administrative bodies.

A closer perusal of past jurisprudence shows that the Court did not intend to
trivialize the conduct of a formal hearing but merely afforded latitude to
administrative bodies especially in cases where a party fails to invoke the right to
hearing or is given the opportunity but opts not to avail of it. In the landmark case
of Ang Tibay, the Court explained that administrative bodies are free from a strict
application of technical rules of procedure and are given sufficient leeway. In the
said case, however, nothing was said that the freedom included the setting aside
of a hearing but merely to allow matters which would ordinarily be incompetent or
inadmissible in the usual judicial proceedings.

In fact, the seminal words of Ang Tibay manifest a desire for administrative
bodies to exhaust all possible means to ensure that the decision rendered be
based on the accurate appreciation of facts. The Court reminded that
administrative bodies have the active duty to use the authorized legal
methods of securing evidence and informing itself of facts material and
relevant to the controversy. As such, it would be more in keeping with
administrative due process that the conduct of a hearing be the general rule
rather than the exception.

The observance of a formal hearing in ·administrative tribunal or bodies other

than judicial is not novel. In Perez v. Philippine Telegraph and Telephone
Company, 33 the Court opined that in illegal dismissal cases, a formal hearing or
conference becomes mandatory when requested by the employee in writing, or
substantial evidentiary disputes exists, or a company rule or practice requires it,
or when similar circumstances justify it.

In Jason v. Executive Secretary Torres (Joson),34 the Court ruled that the
respondent was denied due process after he was deprived of the right to a formal
investigation with the opportunity to face the witnesses against him, to wit:

The rejection of petitioner’s right to a formal investigation denied him procedural

due process. Section 5 of A.O. No. 23 provides that at the preliminary
conference, the Investigating Authority shall summon the parties to consider
whether they desire a formal investigation. This provision does not give the
Investigating Authority the discretion to determine whether a formal
investigation would be conducted. The records show that petitioner filed a
motion for formal investigation. As respondent, he is accorded several rights
under the law, to wit:

xxxx
Petitioner's right to a formal investigation was not satisfied when the
complaint against him was decided on the basis of position papers. There
is nothing in the Local Government Code and its Implementing Rules and
Regulations nor in A.O. No. 23 that provide that administrative cases against
elective local officials can be decided on the basis of position papers. A.O. No.
23 states that the Investigating Authority may require the parties to submit their
respective memoranda but this is only after formal investigation and hearing.
A.O. No. 23 does not authorize the Investigating Authority to dispense with
a hearing especially in cases involving allegations of fact which are not
only in contrast but contradictory to each other. These contradictions are
best settled by allowing the examination and cross-examination of witnesses.
Position papers are often-times prepared with the assistance of lawyers and their
artful preparation can make the discovery of truth difficult. The jurisprudence
cited by the DILG in its order denying petitioner's motion for a formal investigation
applies to appointive officials and employees. Administrative disciplinary
proceedings against elective government officials are not exactly similar to those
against appointive officials. In fact, the provisions that apply to elective local
officials are separate and distinct from appointive government officers and
employees. This can be gleaned from the Local Government Code itself. 35
(emphases and underlining supplied)

xxxx

Under the P AGC rules of procedure, it is crystal clear that the conduct of
clarificatory hearings is discretionary. Nevertheless, in the event that it finds the
necessity to conduct one, there are rules to be followed. One, the parties are to
be notified of the clarificatory hearings. Two, the parties shall be afforded the
opportunity to be present in the hearings without the right to examine witnesses.
They, however, may ask questions and elicit answers from the opposing party
coursed through the P AGC.

To reiterate, due process is a malleable concept anchored on fairness and

equity. The due process requirement before administrative bodies are not as
strict compared to judicial tribunals in that it suffices that a party is given a
reasonable opportunity to be heard. Nevertheless, such "reasonable opportunity"
should not be confined to the mere submission of position papers and/or
affidavits and the parties must be given the opportunity to examine the witnesses
against them. The right to a hearing is a right which may be invoked by the
parties to thresh out substantial factual issues. It becomes even more imperative
when the rules itself of the administrative body provides for one. While the
absence of a formal hearing does not necessarily result in the deprivation of due
process, it should be acceptable only when the party does not invoke the said
right or waives the same.

The Court finds that Saunar was not treated fairly in the proceedings before the P
AGC. He was deprived of the opportunity to appear in all clarificatory hearings
since he was not notified of the clarificatory hearing attended by an NBI official.
Saunar was thus denied the chance to propound questions through the P AGC
against the opposing parties, when the rules of the P AGC itself granted Saunar
the right to be present during clarificatory hearings and the chance to ask
questions against the opposing party.

Even assuming that Saunar was not deprived of due process, we still find merit in
reversing his dismissal from the government service.

Gross neglect of duty negated

by intent of the government
employee concerned

It is true that the dropping from the rolls as a result of AWOL is not disciplinary in
nature and does not result in the forfeiture of benefits or disqualification from re-
employment in the government.36 Nevertheless, being on AWOL may constitute
other administrative offenses, which may result in the dismissal of the erring
employees and a forfeiture of retirement benefits.37 In the case at bar, Saunar
was charged with the administrative offense of gross neglect of duty in view of
his prolonged absence from work.

The OP found Saunar guilty of Gross Neglect of Duty and of violating Section
3(e) of R.A. No. 3019 because he was on AWOL from March 2005 to May 2006.
He, however, bewails that from the time we was directed to report to the DDROS,
he was never assigned a particular duty or responsibility. As such, Saunar
argues that he cannot be guilty of gross neglect of duty because there was no
"duty" to speak of. In addition, he assails that he had made himself readily
available because he stayed in establishments near the NBI.

Gross Neglect of Duty, as an administrative offense, has been jurisprudentially

defined. It refers to negligence characterized by the glaring want of care; by
acting or omitting to act in a situation where there is a duty to act, not
inadvertently, but willfully and intentionally; or by acting with a conscious
indifference to consequences with respect to other persons who may be
affected.38

When Saunar was relieved as regional director of Western Mindanao and was
ordered to report to the DDROS, he was obligated to report to the said office. He,
however, was not assigned any specific task or duty and was merely advised to
make himself readily available. Saunar often stayed in establishments near the
NBI because he was also not provided a specific station or office. The same,
nonetheless, does not establish that he willfully and intentionally neglected his
duties especially since every time he was required to attend court hearings
through special orders issued by the NBI, he would do so. Clearly, Saunar never
manifested any intention to neglect or abandon his duties as an NBI official as he
remained compliant with the lawful orders given to him. In addition, when he
received the order reassigning him as the regional director for the NBI Bicol
Office, he also obeyed the same. Saunar’s continued compliance with the special
orders given to him by his superiors to attend court hearings negate the charge
of gross neglect of duty as it evinces a desire to fulfil the duties and
responsibilities specifically assigned to him.

The Office of the Solicitor General (OSG), however, argues that Saunar’s
attendance at several court hearings pursuant to special orders does not
exculpate him from the charge of gross neglect of duty. As highlighted by the
OSG, the certificate of appearances Saunar presented account only for fourteen
(14) days.39

Notwithstanding, Saunar’s conduct neither constitutes a violation of Section 3(e)

of R.A. No. 3019. In order to be liable for violating the said provision, the
following elements must concur: (a) the accused must be a public officer
discharging administrative, judicial or official functions; (b) he must have acted
with manifest partiality, evident bad faith or inexcusable negligence; and (c) that
his action caused any undue injury to any party, including the government, or
giving any private party unwarranted benefits, advantage or preference in the
discharge of his functions.40 As discussed above, Saunar’s action was not
tantamount to inexcusable or gross negligence considering that there was no
intention to abandon his duty as an NBI officer.

Illegally dismissed government

employees entitled to full back
wages and retirement benefits

On 11 August 2014, Saunar reached the compulsory age of retirement from

government service.41 In view of Saunar’s retirement, reinstatement to

his previous position had become impossible. Thus, the only recourse left is to
grant monetary benefits to which illegally dismissed government employees are
entitled.

In Campol v. Balao-as, 42 the Court extensively expounded the rationale behind

the grant of full back wages to illegally dismissed employees, to wit:

An employee of the civil service who is invalidly dismissed is entitled to the

payment of backwages. While this right is not disputed, there have been
variations in our jurisprudence as to the proper fixing of the amount of
backwages that should be awarded in these cases. We take this opportunity to
clarify the doctrine on this matter.

Ginson and Regis also involved the question of the proper fixing of backwages.
Both cases awarded backwages but limited it to a period of five years. Ginson
does not provide for an exhaustive explanation for this five-year cap. Regis, on
the other hand, cites Cristobal v. Melchor, Balquidra v. CFI of Capiz, Branch II,
32 Laganapan v. Asedillo, Antiporda v. Ticao, and San Luis v. Court of Appeals,
in support of its ruling. We note that these cases also do not clearly explain why
there must be a cap for the award of backwages, with the exception of Cristobal.
In Cristobal, a 1977 case, we held that the award of backwages should be for a
fixed period of five years, applying by analogy the then prevailing doctrine in
labor law involving employees who suffered unfair labor practice. We highlight
that this rule has been rendered obsolete by virtue of Republic Act No. 6175
which amended the Labor Code. Under the Labor Code, employees illegally
dismissed are entitled to the payment of backwages from the time his or her
compensation was withheld up to the time of his or her actual reinstatement.

In 2005, our jurisprudence on backwages for illegally dismissed employees of the

civil service veered away from the ruling in Cristobal.

Thus, in Civil Service Commission v. Gentallan, we categorically declared-

An illegally dismissed government employee who is later ordered reinstated is

entitled to backwages and other monetary benefits from the time of her illegal
dismissal up to her reinstatement. This is only fair and just because an employee
who is reinstated after having been illegally dismissed is considered as not
having left her office and should be given the corresponding compensation at the
time of her reinstatement.

We repeated this ruling in the 2005 case Batangas State University v. Bonifacio,
in the 2007 case Ramagos v. Metro Cebu Water District, and in the 2010 case
Civil Service Commission v. Magnaye, Jr.

Thus, the Decision, in refusing to award backwages from Campol’s dismissal

until his actual reinstatement, must be reversed. There is no legal nor
jurisprudential basis for this ruling. An employee of the civil service who is
ordered reinstated is also entitled to the full payment of his or her
backwages during the entire period of time that he or she was wrongfully
prevented from performing the duties of his or her position and from
enjoying its benefits. This is necessarily so because, in the eyes of the law, the
employee never truly left the office. Fixing the backwages to five years or to
the period of time until the employee found a new employment is not a full
recompense for the damage done by the illegal dismissal of an employee.
Worse, it effectively punishes an employee for being dismissed without his or
her fault. In cases like this, the twin award of reinstatement and payment of full
backwages are dictated by the constitutional mandate to protect civil service
employees' right to security of tenure. Anything less than this falls short of the
justice due to government employees unfairly removed from office. This is the
prevailing doctrine and should be applied in Campol’s case.
This entitlement to full backwages also means that there is no need to deduct
Campol’s earnings from his employment with PAO from the award. The right to
receive full backwages means exactly this - that it corresponds to Campol’s
salary at the time of his dismissal until his reinstatement. Any income he may
have obtained during the litigation of the case shall not be deducted from
this amount. This is consistent with our ruling that an employee illegally
dismissed has the right to live and to find employment elsewhere during
the pendency of the case. At the same time, an employer who illegally
dismisses an employee has the obligation to pay him or her what he or she
should have received had the illegal act not be done. It is an employer's price
or penalty for illegally dismissing an employee.

xxxx

We rule that employees in the civil service should be accorded this same
right. It is only by imposing this rule that we will be able to uphold the
constitutional right to security of tenure with full force and effect. Through this,
those who possess the power to dismiss employees in the civil service will
be reminded to be more circumspect in exercising their authority as a
breach of an employee's right to security of tenure will lead to the full
application of law and jurisprudence to ensure that the employee is
reinstated and paid complete backwages. (emphasis supplied)

As it stands, Saunar should have been entitled to full back wages from the time
he was illegally dismissed until his reinstatement. In view of his retirement,
however, reinstatement is no longer feasible. As such, the back wages should be
computed from the time of his illegal dismissal up to his compulsory retirement. 43
In addition, Saunar is entitled to receive the retirement benefits he should have
received if he were not illegally dismissed.

WHEREFORE, the petition is GRANTED. The 20 October 2008 Decision of the

Court of Appeals in CA-G.R. SP No. 100157 is REVERSED and SET ASIDE.
Petitioner Carlos R. Saunar is entitled to full back wages from the time of his
illegal dismissal until his retirement and to receive his retirement benefits.

SO ORDERED.

SAMUEL R. MARTIRES
Associate Justice

Footnotes
*On Official Leave
1 Rollo, pp. 8-19.
2 Id. at 21-22.
3 Id. at 168-172; issued by Executive Secretary Eduardo R. Ermita.
4 Id. at 34-36.
5 Id. at 226.
6 Id. at 38-39.
7 Id. at 225.
8 Id. at 41-44.

9 Id.at51-52.
10 Id. at 172.
11 Id. at 173-174.
12 Id. at. 18.
13 Id. at 66.
14 Smith, Bell and Co v. Natividad, 40 Phil. 136, 144-145 (1919).
15 Goldberg v. Kelly, 397 U.S. 267 (1970).
16 Arnettv. Kennedy, 416 U.S. 155 (1974).
17 Goldbergv. Kelly, supra note 15 at 269.

18 Id.
19 Arnett v. Kennedy, supra note 16 at 164.

20 424 U.S. 341-342, 349 (1976).

21 Citations omitted.
22White Light Corporation v. City of Manila, 596 Phil. 444, 461
(2009).
23Bernas, The 1987 Constitution of the Republic of the
Philippiness: A Commentary (2003), p. 114.
24 69 Phil. 635 (1940).
25 Id. at 641-644.
26 62 Phil. 106 (1935).
27 70 Phil. 539 (1940).
28 182 Phil. 215 (1979).
29 Id. at 220-221.

30 362 Phil. 383 (1999).

31 Id. at 389.
32 Mateo v. Romulo, 799 Phil. 569 (2016); Samalio v. Court of
Appeals, 494 Phil. 456 (2005); Artezuela v. Maderazo, 431 Phil. 15
(2002), citing Arboleda v. National Labor Relations Commission, id
at 141, and Padilla v. Sto. Tomas, 243 SCRA 155.

33 602 Phil. 522, 542 (2009).

34 352 Phil. 888 (1998).
35 Id. at 923-925.
36Municipality of Butig, Lanao de/ Sur v. Court of Appeals, 513 Phil.
217, 235 (2005).
37Masadao, Jr. v. Glorioso, 345 Phil. 859, 864 (1997); Loyao v.
Manatad, 387 Phil. 337, 344 (2000); Leave Division-0.A.S, Office of
the Court Administrator v. Sarceno, 754 Phil. 1, 11 (2015)
38Office of the Ombudsman v. Delos Reyes, Jr., 745 Phil. 366, 381
(2014).
39 Rollo, p. 484.
40 Consignav. People, 731Phil.108, 123-124 (2014).
41 Rollo, p. 637.

42 G.R. No. 197634, 28 November 2016.

43 Paz v. Northern Tobacco Redrying Co, Inc., 754 Phil. 251 (2015).
PPC v CA

SECOND DIVISION

G.R. No. 173590 December 9, 2013

PHILIPPINE POSTAL CORPORATION, Petitioner,

vs.
COURT OF APPEALS and CRISANTO G. DE GUZMAN, Respondents.

DECISION

PERLAS-BERNABE, J.:

Assailed in this petition for review on certiorari1 are the Decision2 dated April 4,
2006 July 19, 2006 of the Court of Appeals (CA) in CA-G.R. SP No. 88891 which
reversed and set aside the Resolutions dated November 23, 2004 4 and January
6, 20055 of petitioner Philippine Postal Corporation (PPC), through its then
Postmaster General and Chief Executive Officer (CEO) Dario C. Rama (PG
Rama), finding that the latter gravely abused its discretion when it revived the
administrative charges against respondent Crisanto G. De Guzman (De
Guzman) despite their previous dismissal.

The Facts

Sometime in 1988, De Guzman, then a Postal Inspector at the Postal Services

Office,6 was investigated by Regional Postal Inspector Atty. Raul Q. Buensalida
(Atty. Buensalida) in view of an anonymous complaint charging him of dishonesty
and conduct grossly prejudicial to the best interest of the service.7 As a result
thereof, Atty. Buensalid are commended8 that De Guzman be formally charged
with twelve (12) counts of the same offenses and eventually be relieved from his
post to protect the employees and witnesses from harassment.

Since the Postal Services Office was then a line-agency of the Department of
Transportation and Communication(DOTC), Atty. Buensalida’s investigation
report was forwarded to the said department’s Investigation Security and Law
Enforcement Staff (ISLES) for further evaluation and approval. Contrary to the
findings of Atty. Buensalida, however, the ISLES, through a Memorandum9dated
February 26, 1990prepared by Director Antonio V. Reyes (Dir. Reyes),
recommended that De Guzman be exonerated from the charges against him due
to lack of merit. The said recommendation was later approved by DOTC
Assistant Secretary Tagumpay R. Jardiniano (Asec. Jardiniano) in a
Memorandum10 dated May 15, 1990.
On February 6, 1992, Republic Act No. (RA)7354,11 otherwise known as the ―
”Postal Service Act of 1992,” was passed. Pursuant to this law, the Postal
Services Office under the DOTC was abolished, and all its powers, duties, and
rights were transferred to the PPC.12 Likewise, officials and employees of the
Postal Services Office were absorbed by the PPC.13

Subsequently, or on July 16, 1993, De Guzman, who had by then become Chief
Postal Service Officer, was formally charged14 by the PPC, through Postmaster
General Eduardo P. Pilapil(PG Pilapil), for the same acts of ―dishonesty, gross
violation of regulations, and conduct grossly prejudicial to the best interest of the
service, and the Anti-graft law, committed as follows”:

Investigation disclosed that while you were designated as Acting District Postal
Inspector with assignment at South Cotabato District, Postal Region XI, Davao
City, you personally made unauthorized deductions and/or cuttings from the ten
(10%) percent salary differential for the months of January-March, 1988,when
you paid each of the employees of the post office at Surallah, South Cotabato, on
the last week of April 1988, and you intentionally failed to give to Postmaster
Juanito D. Dimaup, of the said post office his differential amounting to ₱453.91,
Philippine currency; that you demanded and required Letter Carrier Benjamin
Salero, of the aforestated post office to give fifty (₱50.00) pesos out of the
aforesaid differential; that you personally demanded, take away and encashed
the salary differential check No. 008695317 in the total amount of ₱1,585.67,
Philippine currency, of Postmaster Benjamin C. Charlon, of the post office at
Lake Cebu, South Cotabato, for your own personal gain and benefit to the
damage and prejudice of the said postmaster; that you personally demanded,
required and received from Postmaster Peniculita B. Ledesma, of the post office
of Sto. Niño, South Cotabato, the amount of ₱300.00, ₱200.00 and ₱100.00 for
hazard pay, COLA differential and contribution to the affair "Araw ng Kartero and
Christmas Party," respectively; that you personally demanded and required Letter
Carrier Feliciano Bayubay, of the post office at General Santos City to give
money in the amount of ₱1,000.00, Philippine Currency, as a condition precedent
for his employment in this Corporation, and you again demanded and personally
received from the said letter carrier the amount of ₱300.00 Philippine currency,
as gift to the employees of the Civil Service Commission, Davao City to facilitate
the release of Bayubay’s appointment; that you demanded and forced
Postmaster Felipe Collamar, Jr.,of the post office at Maitum, South Cotabato to
contribute and/or produce one (1) whole Bariles fish for shesami (sic), and you
also required and received from the aforesaid postmaster the amount of ₱500.00
Philippine currency; that you demanded and required Postmaster Diosdado B.
Delfin to give imported wine and/or ₱700.00, Philippine currency, for gift to the
outgoing Regional Director Escalada; and that you failed to liquidate and return
the substantial amount of excess contributionson April, 1987, June, 1987 and
December, 1987,for Postal Convention at MSU, arrival of Postmaster General
Banayo and Araw ng Kartero and Christmas Party, respectively, for your own
personal gain and benefit to the damage and prejudice of all the employees
assigned at the aforementioned district.

In a Decision15dated August 15, 1994, De Guzman was found guilty as charged

and was dismissed from the service. Pertinently, its dispositive reads that ―”[i]n
the interest of the service, it is directed that this decision be implemented
immediately.”16

It appears, however, that the a fore-stated decision was not implemented until
five (5) years later when Regional Director Mama S. Lalanto (Dir. Lalanto) issued
a Memorandum17 dated August 17, 1999 for this purpose. De Guzman lost no
time in filing a motion for reconsideration,18 claiming that: (a) the decision sought
to be implemented was recalled on August 29, 1994 by PG Pilapil himself; and
(b)since the decision had been dormant for more than five (5)years, it may not be
revived without filing another formal charge. The motion was, however, denied in
a Resolution19 dated May 14, 2003, pointing out that De Guzman failed to
produce a copy of the alleged recall order even if he had been directed to do so.

Undaunted, De Guzman filed a second motion for reconsideration, which was

resolved20 on June 2, 2003 in his favor in that: (a) the Resolution dated May 14,
2003 denying De Guzman’s first motion for Reconsideration was recalled; and
(b) a formal hearing of the case was ordered to be conducted as soon as
possible. After due hearing, the PPC, through PG Rama, issued a Resolution21
dated November 23, 2004, finding De Guzman guilty of the charges against him
and consequently dismissing him from the service. It was emphasized therein
that when De Guzman was formally charged on July 16, 1993, the complainant
was the PPC, which had its own charter and was no longer under the DOTC.
Thus, the ISLES Memorandum dated February 26, 1990 prepared by Dir. Reyes
which endorsed the exoneration of De Guzman and the dismissal of the
complaints against him was merely recommendatory. As such, the filing of the
formal charge on July 16, 1993 was an obvious rejection of said
recommendation.22

De Guzman’s motion for reconsideration was denied initially in a Resolution 23

dated January 6, 2005, but the motion was, at the same time, considered as an
appeal to the PPC Board of Directors (Board).24 The Board, however, required
PG Rama to rule on the motion. Thus, in a Resolution25 dated May 10, 2005, PG
Rama pointed out that, being the third motion for reconsideration filed by De
Guzman, the same was in gross violation of the rules of procedure recognized by
the PPC, as well as of the Civil Service Commission (CSC), which both allowed
only one (1) such motion to be entertained.26 It was further held that res judicata
was unavailing as the decision exonerating De Guzman was ―”only a ruling after
a fact-finding investigation.” Hence, the same could not be considered as a
dismissal on the merits but rather, a dismissal made by an investigative body
which was not clothed with judicial or quasi-judicial power.27
Meanwhile, before the issuance of the Resolution dated May 10, 2005, De
Guzman elevated his case on March 12, 200528 to the CA via a special civil
action for certiorari and mandamus,29 docketed as CA-G.R. SP No. 88891,
imputing grave abuse of discretion amounting to lack or excess of jurisdiction in
that: (a) the case against him was a mere rehash of the previous complaint
already dismissed by the DOTC, and therefore, a clear violation of the rule on res
judicata; (b) the assailed PPC Resolutions did not consider the evidences
submitted by De Guzman; (c) the uncorroborated, unsubstantiated and
contradictory statements contained in the affidavits presented became the bases
of the assailed Resolutions; (d) the Resolution dated November 23, 2004
affirmed a non-existent decision; (e) Atty. Buensalida was not a credible witness
and his testimony bore no probative value; and(f) the motion for reconsideration
filed by De Guzman of the Resolution dated November 23, 2004 is not the third
motion for reconsideration filed by him.

On June 10, 2005, De Guzman appealed30 the Resolution dated May 10, 2005
before the PPC Board, which resolution was allegedly received by De Guzman
on May 26, 2005. Almost a year later, the Board issued a Resolution 31 dated May
25, 2006,denying the appeal and affirming with finality the Decision dated
August 15, 1994 and the Resolution dated May 14, 2003. The motion for
reconsideration subsequently filed by De Guzman was likewise denied in
aResolution32 dated June 29, 2006. On April 4, 2006, the CA rendered a
Decision33 in CA-G.R. SP No. 88891, reversing the PPC Resolutions dated
November 23, 2004 and January 6, 2005, respectively. It held that the revival of
the case against De Guzman constituted grave abuse of discretion considering
the clear and unequivocal content of the Memorandum dated May 15, 1990 duly
signed by Asec. Jardiniano that the complaint against De Guzman was already
dismissed.

Aggrieved, PPC moved for reconsideration which was, however, denied in a

Resolution34 dated July 19, 2006, hence, the instant petition.

Meanwhile, on July 26, 2006, De Guzman filed an appeal of the PPC Board’s
Resolutions dated May 25, 2006 and June 29, 2006 with the CSC35 which was,
however, dismissedin Resolution No. 08081536 dated May 6, 2008. The CSC
equally denied De Guzman’s motion for reconsideration there from in Resolution
No. 09007737 dated January 14, 2009.

The Issues Before the Court

The essential issues for the Court’s resolution are whether: (a) De Guzman
unjustifiably failed to exhaust the administrative remedies available to him; (b) De
Guzman engaged inforum-shopping; and (c) the investigation conducted by the
DOTC, through the ISLES, bars the filing of the subsequent charges by PPC.

The Court’s Ruling

The petition is meritorious.

A. Exhaustion of administrative remedies.

The thrust of the rule on exhaustion of administrative remedies is that the courts
must allow the administrative agencies to carry out their functions and discharge
their responsibilities within the specialized areas of their respective competence.
It is presumed that an administrative agency, if afforded an opportunity to pass
upon a matter, will decide the same correctly, or correct any previous error
committed in its forum. Furthermore, reasons of law, comity and convenience
prevent the courts from entertaining cases proper for determination by
administrative agencies. Hence, premature resort to the courts necessarily
becomes fatal to the cause of action of the petitioner.38 PPC claims that De
Guzman failed to subscribe to the rule on exhaustion of administrative remedies
since he opted to file a premature certiorari case before the CA instead of filing
an appeal with the PPC Board, or of an appeal to the CSC, which are adequate
remedies under the law.39

The Court agrees with PPC’s submission.

Under Section 21(d) of RA7354, the removal by the Postmaster General of PPC
officials and employees below the rank of Assistant Postmaster General may be
appealed to the Board of the PPC, viz.:

Sec.21.Powers and Functions of the Postmaster General. — as the Chief

Executive Officer, the Postmaster General shall have the following powers and
functions:

xxxx

(d) to appoint, promote, assign, reassign, transfer and remove personnel below
the ranks of Assistant Postmaster General: Provided, That in the case of removal
of officials and employees, the same may be appealed to the Board;

xxxx

This remedy of appeal to the Board is reiterated in Section 2(a), Rule II of the
Disciplinary Rules and Procedures of the PPC, which providesfurther that the
decision of the Board is, in turn, appeal able to the CSC, viz.:

Section2. DISCIPLINARY JURISDICTION. – (a) The Board of Directors shall

decide upon appeal the decision of the Postmaster General removing officials
and employees from the service. (R.A. 7354, Sec. 21 (d)). The decision of the
Board of Directors is appeal able to the Civil Service Commission. It is well-
established that the CSC has jurisdiction over all employees of government
branches, subdivisions, instrumentalities, and agencies, including government-
owned or controlled corporations with original charters, and, as such, is the sole
arbiter of controversies relating to the civil service.40 The PPC, created under
RA7354, is a government-owned and controlled corporation with an original
charter. Thus, being an employee of the PPC, De Guzman should have, after
availing of the remedy of appeal before the PPC Board, sought further recourse
before the CSC. Records, however, disclose that while De Guzman filed on June
10, 2005 a notice of appeal41 to the PPC Board and subsequently appealed the
latter’s ruling to the CSC on July 26, 2006, the sewere all after he challenged the
PPC Resolution dated November 23, 2004 (wherein he was adjudged guilty of
the charges against him and consequently dismissed from the service) in a
petition for certiorari and mandamus before the CA(docketed as CA-G.R. SP No.
88891). That the subject of De Guzman’s appeal to the Board was not the
Resolution dated November 23, 2004 but the Resolution dated May 10, 2005
denying the motion for reconsideration of the first - mentioned resolution is of no
moment. In Alma Jose v. Javellana,42 the Court ruled that an appeal from an
order denying a motion for reconsideration of a final order or judgment is
effectively an appeal from the final order or judgment itself. 43 Thus, finding no
cogent explanation on DeGuzman’s endor any justifiable reason for his
premature resort to a petition for certiorari and mandamus before the CA, the
Court holds that he failed to adhere to the rule on exhaustion of administrative
remedies which should have warranted the dismissal of said petition.

B. Forum-shopping.

PPC further submits that De Guzman violated the rule on forum-shopping since
he still appealed the order of his dismissal before the PPC Board,
notwithstanding the pendency of his petition for certiorari before the CA
identically contesting the same.44

The Court also concurs with PPC on this point.

Aside from violating the rule on exhaustion of administrative remedies, De

Guzman was also guilty of forum-shopping by pursuing two (2) separate
remedies –petition for certiorari and appeal –that have long been held to be
mutually exclusive, and not alternative or cumulative remedies. 45 Evidently, the
ultimate reliefsought by said remedies whichDe Guzmanfiled only within a
few months from each other46 is one and the same – the setting aside of the
resolution dismissing him from the service. As illumined in the case of Sps.
Zosa v. Judge Estrella,47 where in several precedents have been cited on the
subject matter:48

The petitions are denied. The present controversy is on all fours with Young v.
Sy, in which we ruled that the successive filing of a notice of appeal and a
petition for certiorari both to assail the trial court’s dismissal order for non-suit
constitutes forum shopping. Thus,
Forum shopping consists of filing multiple suits involving the same parties for the
same cause of action, either simultaneously or successively, for the purpose of
obtaining a favorable judgment.

There is forum shopping where there exist: (a) identity of parties, or at least
suchparties as represent the same interests in both actions; (b) identity of rights
asserted and relief prayed for, the relief being founded on the same facts; and (c)
the identity of the two preceding particulars is such that any judgment rendered in
the pending case, regardless of which party is successful would amount to res
judicata.

Ineluctably, the petitioner, by filing an ordinary appeal and a petition for certiorari
with the CA, engaged in forum shopping. When the petitioner commenced the
appeal, only four months had elapsed prior to her filing with the CA the Petition
for Certiorari under Rule 65 and which eventually came up to this Court by way of
the instant Petition (re: Non-Suit). The elements of lit is pendentia are present
between the two suits. As the CA, through its Thirteenth Division, correctly noted,
both suits are founded on exactly the same facts and refer to the same subject
matter – the RTC Orders which dismissed Civil Case No. SP-5703 (2000) for
failure to prosecute. In both cases, the petitioner is seeking the reversal of the
RTC orders. The parties, the rights asserted, the issues professed, and the
reliefs prayed for, are all the same. It is evident that the judgment of one forum
may amount to res judicata in the other.

xxxx

The remedies of appeal and certiorari under Rule 65 are mutually exclusive and
not alternative or cumulative. This is a firm judicial policy. The petitioner cannot
hedge her case by wagering two or more appeals, and, in the event that the
ordinary appeal lags significantly behind the others, she cannot post facto
validate this circumstance as a demonstration that the ordinary appeal had not
been speedy or adequate enough, in order to justify the recourse to Rule 65. This
practice, if adopted, would sanction the filing of multiple suits in multiple fora,
where each one, as the petitioner couches it, becomes a ―precautionary
measure” for the rest, thereby increasing the chances of a favorable decision.
This is the very evil that the proscription on forum shopping seeks to put right. In
Guaranteed Hotels, Inc. v. Baltao, the Court stated that the grave evil sought to
be avoided by the rule against forum shopping is the rendition by two competent
tribunals of two separate and contradictory decisions. Unscrupulous party
litigants, taking advantage of a variety of competent tribunals, may repeatedly try
their luck in several different fora until a favorable result is reached. To avoid the
resultant confusion, the Court adheres strictly to the rules against forum
shopping, and any violation of these rules results in the dismissal of the case.

Thus, the CA correctly dismissed the petition for certiorari and the petition for
review (G.R. No. 157745) filed with this Court must be denied for lack of merit.
We also made the same ruling in Candido v. Camacho, when the respondent
therein assailed identical court orders through both an appeal and a petition for
an extraordinary writ.

Here, petitioners questioned the June 26, 2000 Order, the August 21, 2000
Clarificatory Order, and the November 23, 2000 Omnibus Order of the RTC via
ordinary appeal (CA-G.R. CV No. 69892) and through a petition for certiorari(CA-
G.R. SP No. 62915) in different divisions of the same court. The actions were
filed with a month’s interval from each one. Certainly, petitioners were seeking to
obtain the same relief in two different divisions with the end in view of endorsing
which ever proceeding would yield favorable consequences. Thus, following
settled jurisprudence, both the appeal and the certiorari petitions should be
dismissed.(Emphases supplied; citations omitted)

Similar thereto, the very evil that the prohibition on forum-shopping was seeking
to prevent – conflicting decisions rendered by two (2) different tribunals–resulted
from De Guzman’s abuse of the processes. Since De Guzman’s appeal before
the PPC Board was denied in its Resolutions49dated May 25, 2006 and June 29,
2006, De Guzmans ought the review of said resolutions before the CSC where
he raised yet again the defense of res judicata. Nonetheless, the CSC, in its
Resolution No. 08081550 dated May 6, 2008, affirmed De Guzman’s dismissal,
affirming "the Resolutions of the PPC Board of Directors dismissing De Guzman
from the service for Dishonesty, Gross Violation of Regulations, and Conduct
Grossly Prejudicial to the Best Interest of the Service."51

De Guzman’s motion for reconsideration of the aforesaid Resolution was

similarly denied by the CSC in its Resolution No. 09007752 dated January 14,
2009. On the other hand, the petition for certiorari, which contained De Guzman’s
prayer for the reversal of Resolutions dated November 23, 2004 and January 6,
2005 dismissing him from the service, was granted by the CA much earlier on
April 4, 2006. It should be pointed out that De Guzman was bound by his
certification53 with the CA that if he ―should thereafter learn that a similar action
or proceeding has been filed or is pending before the Supreme Court, the Court
of Appeals, or any other tribunal or agency,” he ―undertake[s]to report that fact
within five (5) days therefrom to [the]Honorable Court.”54 Nothing, however,
appears on record that De Guzman had informed the CA of his subsequent filing
of a notice of appeal before the PPC from the Resolution dated May 10, 2005. By
failing to do so, De Guzman committed a violation of his certification against
forum-shopping with the CA, which has been held to be a ground for dismissal of
an action distinct from forum-shopping itself.55

Moreover, De Guzman’s contention56 that the filing of the notice of appeal from
the said Resolution was only "taken as a matter of precaution" 57 cannot extricate
him from the effects of forum-shopping. He was fully aware when he filed CA-
G.R. SP No. 88891 that PG Ramahad forwarded the records of the case to the
PPC Board for purposes of appeal.58 Yet, he decided to bypass the
administrative machinery. And this was not the first time he did so. In his
Comment to the instant petition, De Guzman claimed59 that in response to the
Memorandum60 dated August 17, 1999 issued by Dir. Lalanto implementing his
dismissal from service, he not only filed a motion for reconsideration but he
likewise challenged the actions of the PPC before the Regional Trial Court of
Manila through a petition for mandamus docketed as Case No. 99-95442. Even
when CA-G.R. SP No. 88891 was decided in De Guzman’s favor on April 4,
2006, and PPC’s motion for reconsideration was denied on July 19, 2006, De
Guzman nonetheless filed on July 26, 2006 an appeal before the CSC from the
denial by the PPC Board of his Notice of Appeal dated June 7, 2005 as pointed
out in CSC Resolution No. 090077.61 While De Guzman did inform the CSC that
he previously filed a petition for certiorari with the CA, he failed to disclose the
fact that the CA had already rendered a decision thereon resolving the
issue of res judicata,62 which was the very same issue before the CSC.

Verily, unscrupulous party litigants who, taking advantage of a variety of

competent tribunals, repeatedly try their luck in several different for a until a
favorable result is reached63 cannot be allowed to profit from their wrongdoing.
The Court emphasizes strict adherence to the rules against forum-shopping, and
this case is no exception. Based on the foregoing, the CA should have then
dismissed the petition for certiorari filed by De Guzman not only for being
violative of the rule on exhaustion of administrative remedies but also due to
forum-shopping.

In addition, it may not be amiss to state that De Guzman’s petition for certiorari
was equally dismissible since one of the requirements for the availment thereof is
precisely that there should be no appeal. It is well-settled that the remedy to
obtain reversal or modification of the judgment on the merits is to appeal. This is
true even if the error, or one of the errors, ascribed to the tribunal rendering the
judgment is its lack of jurisdiction over the subject matter, or the exercise of
power in excess thereof, or grave abuse of discretion in the findings of fact or of
law set out in the decision.64 In fact, under Section 30, Rule III (C) of the
Disciplinary Rules and Procedures of the PPC, among the grounds for appeal to
the PPC Board from an order or decision of dismissal are: (a) grave abuse of
discretion on the part of the Postmaster General; and (b) errors in the finding of
facts or conclusions of law which, if not corrected, would cause grave and
irreparable damage or injury to the appellant. Clearly, therefore, with the remedy
of appeal to the PPC Board and thereafter to the CSC available to De Guzman,
certiorari to the CA should not have been permitted.

In this relation, it bears noting that PPC has sufficiently addressed De Guzman’s
argument that an appeal would not be a speedy and adequate remedy
considering that the resolution dismissing him from service was to be
"implemented immediately."65
To elucidate, on February 24, 2005, before De Guzman filed the petition for
certiorari dated March 12, 2005, the PPC Board had passed Board Resolution 66
No. 2005-14 adopting a "Corporate Policy that henceforth the decision of the
Postmaster General in administrative cases when the penalty is removal or
dismissal, the same shall not be final and executory pending appeal to the
Office of the Board of Directors." Shortly thereafter, or on March 8, 2005, PG
Rama issued Philpost Administrative Order67 No. 05-05 pursuant to the
aforementioned Board Resolution, the pertinent portions of which are quoted
hereunder:

1. Decisions of the Postmaster General in administrative cases

where the penalty imposed is removal/dismissal from the service
shall not be final and executory pending appeal to the Office of the
PPC Board of Directors x x x

2. Decisions of the Postmaster General in administrative cases

where the penalty imposed is removal/dismissal from the service
shall be executory pending appeal to the Civil Service Commission;

3. Respondents who have pending appealed administrative cases

to the PPC Board of Directors are entitled to report back to office
and receive their respective salary and benefits beginning at the
time they reported back to work. No back wages shall be allowed
by virtue of the PPC Board Resolution No. 2005-14;

4. Following the Civil Service Rules and Regulations, back wages

can only be recovered in case the respondent is exonerated of the
administrative charges on appeal; and

5. PPC Board Resolution No. 2005-14 took effect on 24 February

2005. x x x

PPC further claimed that instead of reporting for work while his motion for
reconsideration and, subsequently, his appeal were pending, "[De Guzman]
voluntarily elected to absent himself." Much later, however, De Guzman "finally
reported back [to]work and thereby received his salary and benefits in full for the
covered period."68 De Guzman failed to sufficiently rebut these claims, except to
say that he was never given any copy of the aforementioned board resolution
and administrative order.69 Therefore, considering that his dismissal was not to
be executed by PPC immediately (if he had appealed the same), De Guzman’s
contention that an appeal would not be a speedy and adequate remedysimilarly
deserves no merit.

C. Res judicata.
De Guzman likewise failed to convince the Court of the applicability of the
doctrine of res judicata for having been charged of the same set of acts for which
he had been exculpated by the ISLES of the DOTC whose recommendation for
the dismissal of the complaint against De Guzman was subsequently approved
by then DOTC Asec. Jardiniano.

The Court agrees with PPC’s argument that there was no formal charge filed by
the DOTC against De Guzman and, as such, the dismissal of the complaint
against him by Asec. Jardiniano, upon the recommendation of the ISLES, did not
amount to a dismissal on the merits that would bar the filing of another case.

While the CA correctly pointed out that it was the DOTC, through its Department
Head, that had disciplinary jurisdiction over employees of the then Bureau of
Posts, including De Guzman, it however proceeded upon the presumption that
De Guzman had been formally charged. But he was not.

Pertinent is Section 16 of the Uniform Rules on Administrative Cases in the Civil

Service which reads as follows:

Section 16. Formal Charge. – After a finding of a prima facie case, the
disciplining authority shall formally charge the person complained of. The
formal charge shall contain a specification of charge(s), a brief statement of
material or relevant facts, accompanied by certified true copies of the
documentary evidence, if any, sworn statements covering the testimony of
witnesses, a directive to answer the charge(s) in writing under oath in not less
than seventy-two (72) hours from receipt thereof, an advice for the respondent to
indicate in his answer whether or not he elects a formal investigation of the
charge(s), and a notice that he is entitled to be assisted by a counsel of his
choice. (Emphasis supplied)

The requisite finding of a prima facie case before the disciplining authority shall
formally charge the person complained of is reiterated in Section 9, Rule III (B) of
the Disciplinary Rules and Procedures of the PPC, to wit:

Section 9. FORMAL CHARGE. – When the Postmaster General finds the

existence of a prima facie case, the respondent shall be formally charged.
He shall be furnished copies of the complaint, sworn statements and other
documents submitted by the complainant, unless he had already received the
same during the preliminary investigation. The respondent shall be given at least
seventy-two (72) hours from receipt of said formal charge to submit his answer
under oath, together with the affidavits of his witnesses and other evidences, and
a statement indicating whether or not he elects a formal investigation. He shall
also be informed of his right to the assistance of a counsel of his choice. If the
respondent already submitted his comment and counter-affidavits during the
preliminary investigation, he shall be given the opportunity to submit additional
evidence. (Emphasis supplied)
The investigation conducted by the ISLES, which "provides, performs, and
coordinates security, intelligence, fact-finding, and investigatory functions for the
Secretary, the Department, and Department-wide official undertakings,"70 was
intended precisely for the purpose of determining whether or not a prima facie
case against De Guzman existed. Due to insufficiency of evidence, however, no
formal charge was filed against De Guzman and the complaint against him was
dismissed by Asst. Secretary Jardiniano.

In order that res judicata may bar the institution of a subsequent action, the
following requisites must concur: (a) the former judgment must be final; (b) it
must have been rendered by a court having jurisdiction over the subject matter
and the parties; (c) it must be a judgment on the merits; and (d) there must be
between the first and the second actions (i) identity of parties, (ii) identity of
subject matter, and (iii) identity of cause of action.71

A judgment may be considered as one rendered on the merits when it

determines the rights and liabilities of the parties based on the disclosed facts,
irrespective of formal, technical or dilatory objections; or when the judgment is
rendered after a determination of which party is right, as distinguished from a
judgment rendered upon some preliminary or formal or merely technical point. 72

In this case, there was no "judgment on the merits" in contemplation of the

above-stated definition.1âwphi1 The dismissal of the complaint against De
Guzman in the Memorandum73 dated May 15, 1990 of Asec. Jardiniano was a
result of a fact-finding investigation only for purposes of determining
whether a prima facie case exists and a formal charge for administrative
offenses should be filed. This being the case, no rights and liabilities of the
parties were determined therein with finality. In fact, the CA, conceding that the
ISLES was "a mere fact-finding body," pointed out that the Memorandum74 dated
February 26, 1990 issued by Dir. Reyes recommending the dismissal of the
complaint against De Guzman "did not make any adjudication regarding the
rights of the parties."75

Hence, for the reasons above-discussed, the Court holds that PPC did not
gravely abuse its discretion when it revived the case against De Guzman despite
the previous dismissal thereof by Asec. Jardiniano. Since said dismissal was not
a judgment on the merits, the doctrine of res judicata does not apply.

In fine, due to the errors of the CA as herein detailed, the Court hereby grants the
present petition and accordingly reverses and sets aside the farmer's
dispositions. The Resolutions dated November 23, 2004 and January 6, 2005 of
the PPC ordering De Guzman's dismissal from the service are thus reinstated.

WHEREFORE, the petition is GRANTED. The Decision dated April 4, 2006 and
the Resolution dated July 19, 2006 of the Court of Appeals in CA-G.R. SP No.
88891 are REVERSED and SET ASIDE, and the Resolutions dated November
23, 2004 and January 6, 2005 of petitioner Philippine Postal Corporation are
hereby REINSTATED.

SO ORDERED.

ESTELA M. PERLAS-BERNABE
Associate Justice

Footnotes

* Designated Acting Member per Special Order No. 1627.

1 Rollo, pp. 14-43.
2Id. at 44-56. Penned by Associate Justice Monina Arevalo-
Zenarosa, with Associate Justices Andres B. Reyes, Jr. and
Rosmari D. Carandang, concurring.
3 Id. at 57-59.
4 Id. at 85-101. Penned by Postmaster General and Dario C. Rama.
5 No copy on record.
6 Formerly the Bureau of Posts.
7 Rollo, p.45.
8 Id. at 68. Investigation Report dated August 3, 1988; id. at 61-69.
9 Id. at 70-71.
10 Id. at 72.
11― “AN ACT CREATING THE PHILIPPINE POSTAL
CORPORATION,DEFINING ITS POWERS,FUNCTIONS AND
RESPONSIBILITIES,PROVIDING FOR REGULATIONOF THE
INDUSTRY AND FOR OTHER PURPOSES CONNECTED
THEREWITH.”
12 Section 29 of RA 7354 provides:

Sec.29.Abolition of the Postal Services Office. —The Postal

Services Office under the Department of Transportation and
Communications, is hereby abolished. All powers and duties,
rights and choses of actions, vested by law or exercised by
 the Postal Services Office and its predecessor Bureau of
Posts, are hereby transferred to the Corporation.

xxxx
13 Id.
14 Rollo, pp.73-74. Docketed asPPC ADM. CASE No. 94-4803.
15 Id. at 75-77. Penned by Postmaster General Eduardo P. Pilapil.
16 Id. at 77.
17As stated in De Guzman’s Letter dated August 18, 1999 to
Postmaster General Nicasio P. Rodriguez; id. at 78-79.
18 Id.
19Id. at 80-82. Penned by Postmaster General and CEO Diomedio
P. Villanueva.
20 Id. at 83-84.
21 Id. at 85-101.
22 Id. at 94-95.
23 No copy on record
24 Rollo, p.22.
25 Id. at 102-108.
26QuotingtheCSC Resolution No. 94-0521, the Disciplinary Rules
and Procedures of the PPC,and the CSC M.C. No. 19, Series of
1999; id. at 103.
27 Id. at104-105.
28 Id. at 23.
29 Id. at 109-138.
30 Id. at 139-141.
31 Id. at 142-144.
32 Id. at 145-146.
33 Id. at 44-56.
34 Id. at 57-59.
35 Id. at 337-338.
36 Id. at 326-332.
37 Id. at 333 -340.
38 Gonzales v. CA, 409 Phil. 684, 690-691 (2001).
39 Rollo, p. 27.
40Olanda v. Bugayong, 491 Phil. 626, 632 (2003), citing Corsiga v.
Defensor, 439 Phil. 875, 883 (2002).

41 Rollo, pp.139-141.
42 G.R. No. 158239, January 25, 2012, 664 SCRA 11.
43 Id. at 20.
44 Rollo, p.38.
45 See Young v. Sy, 534 Phil. 246, 266 (2006).
46De Guzman filed the petition for certiorari before the CA on
March 12, 2005, while he filed the appeal before the PPC Board on
June 10, 2005.
47 593 Phil. 71 (2008).
48Id. at 77-79, citing Young v. Sy, supra note 45, at 264-267;
Guaranteed Hotels, Inc. v. Baltao, 489 Phil. 702, 709 (2005); and
Candido v. Camacho, 424 Phil.291 (2002).

49 Rollo, pp. 142-144 and 145-146, respectively.

50 Id. at326-332.
51 Id. at 332.
52 Id. at 333-340.
53 Id. at 137.
54 A certification against forum shopping is a requirement provided
under Section 5, Rule 7 of the Rules of Court which reads as
follows:

Sec.5.Certification against forum shopping. —The plaintiff or

principal party shall certify under oath in the complaint or
other initiatory pleading asserting a claim for relief, or in a
sworn certification annexed thereto and simultaneously filed
therewith: (a) that he has not theretofore commenced any
action or filed any claim involving the same issues in any
court, tribunal or quasi-judicial agency and,to the best of his
knowledge, no such other action or claim is pending therein;
(b) if there is such other pending action or claim, a complete
statement of the present status thereof; and (c) if he should
thereafter learn that the same or similar action or claim has
been filed or is pending, he shall report that fact within five
(5) days therefrom to the court wherein his aforesaid
complaint or initiatory pleading has been filed.

Failure to comply with the foregoing requirements shall not

be curable by mere amendment of the complaint or other
initiatory pleading but shall be cause for the dismissal of the
case without prejudice, unless otherwise provided, upon
motion and after hearing. The submission of a false
certification or non-compliance with any of the undertakings
therein shall constitute indirect contempt of court, without
prejudice to the corresponding administrative and criminal
actions. If the acts of the party or his counsel clearly
constitute willful and deliberate forum shopping, the same
shall be ground for summary dismissal with prejudice and
shall constitute direct contempt, as well as a cause for
administrative sanctions
55See Section 5, Rule 7 of the Rules of Court , id.; see also
Collantes v. CA, 546 Phil. 391, 402-403 (2007).

56 Rollo, p. 192.
57 Id.
58 Id. at 117.
59 Id. at170-171.
60As stated in De Guzman’s Letter dated August 18, 1999 to
Postmaster General Nicasio P. Rodriguez;id. at 78-79.
61 Id. at 337.
62 Id. at 338.
63Sps. Zosa v. Judge Estrella, supra note 47, at 79, citing Young v.
Sy, supra note 45, at 266-267, further citing Guaranteed Hotels,
Inc. v. Baltao, 489 Phil. 702, 709 (2005).
64Manacop v. Equitable PCIBank, G.R. Nos. 162814-17, August
25, 2005, 468 SCRA 256, 271.
65Rollo, p. 101. See dispositive portion of Resolution dated
November 23, 2004.
66 Id. at 147-149.
67 Id. at 151.
68 Id. at 30.
69 Id. at 187-188.
70

<http://www.dotc.gov.ph/index.php?option=com_k2&view=item&id=
118:dotc-proper>(visited November 6, 2013).
71
See Encinas v. Agustin, Jr., G.R. No. 187317, April 11, 2013, 696
SCRA 240, 260.
72 Id.
73 Rollo, p. 72.
74 Id. at 70-71.
75 See CA Decision dated April 4, 2006; id at 53.
Appendix A
EXECUTIVE ORDER NO. 292

INSTITUTING THE "ADMINISTRATIVE CODE OF 1987"

WHEREAS, the Administrative Code currently in force was first

forged in 1917 when the relationship between the people and the
government was defined by the colonial order then prevailing;

WHEREAS, efforts to achieve an integrative and over-all

recodification of its provisions resulted in the Administrative Code of
1978 which, however, was never published and later expressly
repealed;

WHEREAS, the effectiveness of the Government will be enhanced by

a new Administrative Code which incorporates in a unified document
the major structural, functional and procedural principles and rules of
governance; and

WHEREAS, a new Administrative Code will be of optimum benefit to

the people and Government officers and employees as it embodies
changes in administrative structures and procedures designed to
serve the people;

NOW, THEREFORE, I, CORAZON C. AQUINO, President of the

Philippines, by virtue of the powers vested in me by the Constitution,
do hereby promulgate the Administrative Code of 1987, as follows:

INTRODUCTORY PROVISIONS

Section 1. Title. - This Act shall be known as the "Administrative

Code of 1987."

Section 2. General Terms Defined. - Unless the specific words of the

text, or the context as a whole, or a particular statute, shall require a
different meaning:

(1) Government of the Republic of the Philippines refers to the

corporate governmental entity through which the functions of
government are exercised throughout the Philippines, including, save
as the contrary appears from the context, the various arms through
which political authority is made effective in the Philippines, whether
pertaining to the autonomous regions, the provincial, city, municipal
or barangay subdivisions or other forms of local government.

(2) National Government refers to the entire machinery of the central

government, as distinguished from the different forms of local
governments.

(3) Local Government refers to the political subdivisions established

by or in accordance with the Constitution.

(4) Agency of the Government refers to any of the various units of the
Government, including a department, bureau, office, instrumentality,
or government-owned or controlled corporations, or a local
government or a distinct unit therein.

(5) National Agency refers to a unit of the National Government.

(6) Local Agency refers to a local government or a distinct unit

therein.

(7) Department refers to an executive department created by law. For

purposes of Book IV, this shall include any instrumentality, as herein
defined, having or assigned the rank of a department, regardless of
its name or designation.

(8) Bureau refers to any principal subdivision or unit of any

department. For purposes of Book IV, this shall include any principal
subdivision or unit of any instrumentality given or assigned the rank of
a bureau, regardless of actual name or designation, as in the case of
department-wide regional offices.

(9) Office refers, within the framework of governmental organization,

to any major functional unit of a department or bureau including
regional offices. It may also refer to any position held or occupied by
individual persons, whose functions are defined by law or regulation.

(10) Instrumentality refers to any agency of the National Government,

not integrated within the department framework vested within special
functions or jurisdiction by law, endowed with some if not all
corporate powers, administering special funds, and enjoying
operational autonomy, usually through a charter. This term includes
regulatory agencies, chartered institutions and government-owned or
controlled corporations.

(11) Regulatory agency refers to any agency expressly vested with

jurisdiction to regulate, administer or adjudicate matters affecting
substantial rights and interests of private persons, the principal
powers of which are exercised by a collective body, such as a
commission, board or council.

(12) Chartered institution refers to any agency organized or operating

under a special charter, and vested by law with functions relating to
specific constitutional policies or objectives. This term includes the
state universities and colleges and the monetary authority of the
State.

(13) Government-owned or controlled corporation refers to any

agency organized as a stock or non-stock corporation, vested with
functions relating to public needs whether governmental or
proprietary in nature, and owned by the Government directly or
through its instrumentalities either wholly, or, where applicable as in
the case of stock corporations, to the extent of at least fifty-one (51)
per cent of its capital stock: Provided, That government-owned or
controlled corporations may be further categorized by the Department
of the Budget, the Civil Service Commission, and the Commission on
Audit for purposes of the exercise and discharge of their respective
powers, functions and responsibilities with respect to such
corporations.

(14) "Officer" as distinguished from "clerk" or "employee", refers to a

person whose duties, not being of a clerical or manual nature,
involves the exercise of discretion in the performance of the functions
of the government. When used with reference to a person having
authority to do a particular act or perform a particular function in the
exercise of governmental power, "officer" includes any government
employee, agent or body having authority to do the act or exercise
that function.
(15) "Employee", when used with reference to a person in the public
service, includes any person in the service of the government or any
of its agencies, divisions, subdivisions or instrumentalities.

BOOK I

SOVEREIGNTY AND GENERAL ADMINISTRATION

CHAPTER 1
THE NATIONAL TERRITORY

Section 3. What Comprises National Territory. - The national territory

comprises the Philippine archipelago, with all the islands and waters
embraced therein, and all other territories over which the Philippines
has sovereignty or jurisdiction, consisting of its terrestrial, fluvial, and
aerial domains, including its territorial sea, the seabed, the subsoil,
the insular shelves, and other submarine areas. The waters around,
between, and connecting the islands of the archipelago, regardless of
their breadth and dimensions, form part of the internal waters of the
Philippines.

Section 4. Territorial Subdivision of the Philippines. - The territorial

and political subdivisions of the Philippines are the autonomous
regions, provinces, subprovinces, cities, municipalities and
barangays.

CHAPTER 2
THE PEOPLE

Section 5. Who are Citizens. - The following are the citizens of the
Philippines:

(1) Those who are citizens of the Philippines at the time of the
adoption of the Constitution;

(2) Those whose fathers or mothers are citizens of the Philippines;

(3) Those born before January 17, 1973, of Filipino mothers, who
elect Philippine citizenship, unless by the act or omission they are
deemed, under the law, to have renounced it.
(4) Those who are naturalized in accordance with law.

Section 6. Effect of Marriage. - Citizens of the Philippines who marry

aliens shall retain their citizenship, unless by their act or omission
they are deemed, under the law, to have renounced it.

Section 7. Natural-born Citizen. - Natural-born citizens are those

who are citizens of the Philippines from birth without having to
perform any act to acquire or perfect their Philippine citizenship.
Those who elect Philippine citizenship in accordance with the
Constitution shall be deemed natural-born citizens.

Section 8. Loss or Reacquisition of Citizenship. - Philippine

citizenship may be lost or reacquired in the manner provided by law.

Section 9. Dual Allegiance. - Dual allegiance is inimical to the

national interest and shall be dealt with by law.

CHAPTER 3
STATE IMMUNITY FROM SUIT

Section 10. Non-suability of the State. - No suit shall lie against the
State except with its consent as provided by law.

Section 11. The State's Responsibility for Acts of Agents. -

(1) The State shall be legally bound and responsible only through the
acts performed in accordance with the Constitution and the laws by
its duly authorized representatives.

(2) The State shall not be bound by the mistakes or errors of its
officers or agents in the exercise of their functions.

CHAPTER 4
NATIONAL SYMBOLS AND OFFICIAL LANGUAGES

Section 12. National Flag. -

(1) The flag of the Philippines shall be red, white and blue, with a sun
and three stars, as consecrated and honored by the people and
recognized by law.

(2) The custody, ceremonial use, occasion and manner of display,

and the proper care and disposition of the flag shall be governed by
appropriate rules and regulations.

Section 13. National Anthem. - Until otherwise provided by law, the

musical arrangement and composition of Julian Felipe is adopted as
the national anthem. It shall be sung or played upon the opening or
start of all state celebrations or gatherings and on such other
occasions as may be prescribed by appropriate rules and regulations.

Section 14. Arms and Great Seal of the Republic of the Philippines. -

(1) The Arms shall have paleways of two (2) pieces, azure and gules;
a chief argent studded with three mullets equidistant from each other;
and, in point of honor, ovoid argent over all the sun rayonnant with
eight minor and lesser rays. Beneath shall be a scroll with the words
"Republic of the Philippines, " or its equivalent in the national
language, inscribed thereon.

(2) The Great Seal shall be circular in form, with the arms as
described in the preceding paragraph, but without the scroll and the
inscription thereon, and surrounding the whole, a double marginal
circle within which shall appear the words "Republic of the
Philippines," or its equivalent in the national language. For the
purpose of placing the Great Seal, the color of the arms shall not be
deemed essential.

Section 15. Use and Custody of Great Seal. - The Great Seal shall be
affixed to or placed upon all commissions signed by the President
and upon such other official documents and papers of the Republic of
the Philippines as may be required by custom and usage. The
President shall have custody of the Great Seal.

Section 16. Arms, Seals and Banners of Government Offices. - The

various offices of government may adopt appropriate coats-of-arms,
seals and banners.
Section 17. Official Languages. - Until otherwise provided by law,
Pilipino and English shall be the official languages.

CHAPTER 5
OPERATION AND EFFECT OF LAWS

Section 18. When Laws Take Effect. - Laws shall take effect after
fifteen (15) days following the completion of their publication in the
Official Gazette or in a newspaper of general circulation, unless it is
otherwise provided.

Section 19. Prospectivity. - Laws shall have prospective effect unless

the contrary is expressly provided.

Section 20. Interpretation of Laws and Administrative Issuances. - In

the interpretation of a law or administrative issuance promulgated in
all the official languages, the English text shall control, unless
otherwise specifically provided. In case of ambiguity, omission or
mistake, the other texts may be consulted.

Section 21. No Implied Revival of Repealed Law.- When a law which

expressly repeals a prior law itself repealed, the law first repealed
shall not be thereby revived unless expressly so provided.

Section 22. Revival of Law Impliedly Repealed. - When a law which

impliedly repeals a prior law is itself repealed, the prior law shall
thereby be revived, unless the repealing law provides otherwise.

Section 23. Ignorance of the Law. - Ignorance of the law excuses no

one from compliance therewith.

CHAPTER 6
OFFICIAL GAZETTE

Section 24. Contents. - There shall be published in the Official

Gazette all legislative acts and resolutions of a public nature; all
executive and administrative issuances of general application;
decisions or abstracts of decisions of the Supreme Court and the
Court of Appeals, or other courts of similar rank, as may be deemed
by said courts of sufficient importance to be so published; such
documents or classes of documents as may be required so to be
published by law; and such documents or classes of documents as
the President shall determine from time to time to have general
application or which he may authorize so to be published.

The publication of any law, resolution or other official documents in

the Official Gazette shall be prima facie evidence of its authority.
lawphi1.net

Section 25. Editing and Publications. - The Official Gazette shall be

edited in the Office of the President and published weekly in Pilipino
or in the English language. It shall be sold and distributed by the
National Printing Office which shall promptly mail copies thereof to
subscribers free of postage.

CHAPTER 7
REGULAR HOLIDAYS AND NATIONWIDE SPECIAL DAYS

Section 26. Regular Holidays and Nationwide Special Days. -

1.Unless otherwise modified by law, order or proclamation, the

following regular holidays and special days shall be observed in this
country:

(A)

Regular Holidays

New Year's Day

January 1

Maundy Thursday
Movable date

Good Friday

Movable date

Araw ng Kagitingan (Bataan and Corregidor Day)

April 9

Labor Day

May 1

Independence Day

June 12

National Heroes Day

Last Sunday of August

Bonifacio Day

November 30
Christmas Day

December 25

Rizal Day

December 30

(B)

Nationwide Special Days

All Saints Day

November 1

Last Day of the Year

December 31

(2) The terms "legal or regular holiday" and "special holiday", as used
in laws, orders, rules and regulations or other issuances shall be
referred to as "regular holiday" and "special day", respectively.
lawphi1.net

Section 27. Local Special Days. - The President may proclaim any
local special day for a particular date, group or place.
Section 28. Pretermission of Holiday. - Where the day, or the last day,
for doing any act required or permitted by law falls on a regular
holiday or special day, the act may be done on the next succeeding
business day. lawphi1.net

CHAPTER 8
LEGAL WEIGHTS MEASURES AND PERIOD

Section 29. Official Use of Metric System. - The metric system of

weights and measures shall be used in the Philippines for all
products, articles, goods, commodities, materials, merchandise,
utilities, services, as well as for commercial transactions like
contracts, agreements, deeds and other legal instruments publicly
and officially attested, and for all official documents. Only weights and
measures of the metric system shall be officially sealed and licensed.

Section 30. Mandatory Nation-wide Use. - The metric system shall be

fully adopted in all agricultural, commercial, industrial, scientific and
other sectors. Persons or entities allowed under existing laws to use
the English system or other standards and weights are given until the
date to be fixed by the Metric System Board to adopt the metric
system.

Section 31. Legal Periods. - "Year" shall be understood to be twelve

calendar months; "month" of thirty days, unless it refers to a specific
calendar month in which case it shall be computed according to the
number of days the specific month contains; "day," to a day of twenty-
four hours; and "night," from sunset to sunrise.

CHAPTER 9
GENERAL PRINCIPLES GOVERNING PUBLIC OFFICERS

Section 32. Nature of Public Office. - Public office is a public trust.

Public officers and employees must at all times be accountable to the
people, serve them with the utmost responsibility, integrity, loyalty
and efficiency, act with patriotism and justice, and lead modest lives.

Section 33. Policy on Change of Citizenship. - Public officers and

employees owe the Senate and the Constitution allegiance at all
times, and any public officer or employee who seeks to change his
citizenship or acquire the status of an immigrant of another country
during his tenure shall be dealt with by law.

Section 34. Declaration of Assets, Liabilities and Net Worth. - A public

officer or employee shall upon assumption of office and as often
thereafter as may be required by law, submit a declaration under oath
of his assets, liabilities, and net worth.

Section 35. Ethics in Government. - All public officers and employees

shall be bound by a Code of Ethics to be promulgated by the Civil
Service Commission.

Section 36. Inhibition Against Purchase of Property at Tax Sale. - No

officer or employee of the government shall purchase directly or
indirectly any property sold by the government for the non-payment of
any tax, fee or other public charge. Any such purchase by an officer
or employee shall be void.

Section 37. Powers Incidental to Taking of Testimony. - When

authority to take testimony or receive evidence is conferred upon any
administrative officer or any non-judicial person, committee, or other
body, such authority shall include the power to administer oaths,
summon witnesses, and require the production of documents by a
subpoena duces tecum.

Section 38. Liability of Superior Officers. -

(1) A public officer shall not be civilly liable for acts done in the
performance of his official duties, unless there is a clear showing of
bad faith, malice or gross negligence.

(2) Any public officer who, without just cause, neglects to perform a
duty within a period fixed by law or regulation, or within a reasonable
period if none is fixed, shall be liable for damages to the private party
concerned without prejudice to such other liability as may be
prescribed by law.

(3) A head of a department or a superior officer shall not be civilly

liable for the wrongful acts, omissions of duty, negligence, or
misfeasance of his subordinates, unless he has actually authorized
by written order the specific act or misconduct complained of.

Section 39. Liability of Subordinate Officers. -No subordinate officer or

employee shall be civilly liable for acts done by him in good faith in
the performance of his duties. However, he shall be liable for willful or
negligent acts done by him which are contrary to law, morals, public
policy and good customs even if he acted under orders or instructions
of his superiors.

CHAPTER 10
OFFICIAL OATHS

Section 40. Oaths of Office for Public Officers and Employees. - All
public officers and employees of the government including every
member of the armed forces shall, before entering upon the
discharge of his duties, take an oath or affirmation to uphold and
defend the Constitution; that he will bear true faith and allegiance to
it; obey the laws, legal orders and decrees promulgated by the duly
constituted authorities; will well and faithfully discharge to the best of
his ability the duties of the office or position upon which he is about to
enter; and that he voluntarily assumes the obligation imposed by his
oath of office, without mental reservation or purpose of evasion.
Copies of the oath shall be deposited with the Civil Service
Commission and the National Archives.

Section 41. Officers Authorized to Administer Oath. -

(1) The following officers have general authority to administer oath:

Notaries public, members of the judiciary, clerks of courts, the
Secretary of the either House of the Congress of the Philippines, of
departments, bureau directors, registers of deeds, provincial
governors and lieutenant-governors, city mayors, municipal mayors
and any other officer in the service of the government of the
Philippines whose appointment is vested in the President.

(2) Oaths may also be administered by any officer whose duties, as

defined by law or regulation, require presentation to him of any
statement under oath..
Section 42. Duty to Administer Oath. - Officers authorized to
administer oaths, with the exception of notaries public, municipal
judges and clerks of court, are not obliged to administer oaths or
execute certificates save in matters of official business; and with the
exception of notaries public, the officer performing the service in
those matters shall charge no fee, unless specifically authorized by
law.

CHAPTER 11
OFFICIAL REPORTS

Section 43. Annual Reports. - The heads of the several branches,

subdivisions, department and agencies or instrumentalities of the
Government shall prepare and submit annual reports to the President
on or before the first day of July 1 of each year.

Section 44. Contents of Reports. - The contents of the annual reports

shall be prescribed by law or, in the absence thereof, by executive
order.

Section 45. Special Reports. - Each chief of Bureau or other officer of

the government shall make such special reports concerning the work
of his Bureau or Office as may from time to time be required of him by
the President of the Philippines or Head of Department.

Section 46. Deposit with Archives. - Official copies of annual reports

shall be deposited with the National Archives and shall be open to
public inspection.

CHAPTER 12
PUBLIC CONTRACTS AND CONVEYANCES

Section 47. Contracts and Conveyances. - Contracts or conveyances

may be executed for and in behalf of the Government or of any of its
branches, subdivisions, agencies, or instrumentalities, including
government-owned or controlled corporations, whenever demanded
by the exigency or exigencies of the service and as long as the same
are not prohibited by law.
Section 48. Official Authorized to Convey Real Property. - Whenever
real property of the Government is authorized by law to be conveyed,
the deed of conveyance shall be executed in behalf of the
government by the following:

(1) For property belonging to and titled in the name of the Republic of
the Philippines, by the President, unless the authority therefor is
expressly vested by law in another officer.

(2) For property belonging to the Republic of the Philippines but titled
in the name of any political subdivision or of any corporate agency or
instrumentality, by the executive head of the agency or
instrumentality.

Section 49. Authority to Convey other Property. - Whenever property

other than real is authorized to be conveyed, the contract or deed
shall be executed by the head of the agency with the approval of the
department head. Where the operations of the agency regularly
involve the sale or other disposition of personal property, the deed
shall be executed by any officer or employee expressly authorized for
that purpose.

Section 50. Conveyance of National Government Property to Local

Governments. - When the real property belonging to the National
Government is needed for school purposes, or other official use by
any local government, the President shall authorize its transfer, and
the department head or other authority concerned shall execute in
favor of the local government the necessary deed of conveyance by
way of gift, sale, exchange, or otherwise, and upon such terms as
shall be for the interest of the parties concerned. Nothing herein
provided shall be deemed to authorize the conveyance of unreserved
public land, friar land or any real property held by the Government in
trust or for a special purpose defined by law.

Section 51. Execution of Contracts. -

(1) Contracts in behalf of the Republic of the Philippines shall be

executed by the President unless authority therefor is expressly
vested by law or by him in any other public officer.
(2) Contracts in behalf of the political subdivisions and corporate
agencies or instrumentalities shall be approved by their respective
governing boards or councils and executed by their respective
executive heads.

BOOK II

DISTRIBUTION OF POWERS OF GOVERNMENT

CHAPTER 1
BASIC PRINCIPLES AND POLICIES

Section 1. Guiding Principles and Policies in Government. -

Governmental power shall be exercised in accordance with the
following basic principles and policies:

(1) The Philippines is a democratic and republican State. Sovereignty

resides in the people and all government authority emanates from
them.

(2) The State values the dignity of every human person and
guarantees full respect for human rights.

(3) Civilian authority is, at all times, supreme over the military.

(4) The State shall ensure the autonomy of local governments.

(5) The territorial and political subdivisions of the Republic of the

Philippines are the provinces, cities, municipalities, and barangays.
There shall be autonomous regions, in accordance with the
Constitution, in Muslim Mindanao and the Cordilleras as may be
provided by law.

(6) The separation of Church and State shall be inviolable.

(7) The right of the people and their organizations to effective and
reasonable participation at all levels of social, political, and economic
decision-making shall not be abridged. The State shall, by law,
facilitate the establishment of adequate consultation mechanisms.
(8) The powers expressly vested in any branch of the Government
shall not be exercised by, nor delegated to, any other branch of the
Government, except to the extent authorized by the Constitution.

CHAPTER 2
LEGISLATIVE POWER

Section 2. Seat of Legislative Power. - The legislative power shall be

vested in the Congress of the Philippines which shall consist of a
Senate and a House of Representatives, except to the extent
reserved to the people by the Constitutional provision on initiative and
referendum.

Section 3. Inhibitions Against Members of Congress. -

(1) No Senator or Member of the House of Representatives may hold

any other office or employment in the Government, or any subdivision
agency, or instrumentality thereof, including government-owned or
controlled corporations or their subsidiaries, during his term without
forfeiting his seat. Neither shall he be appointed to any office which
may have been created or the emoluments thereof increased during
the term for which he was elected.

(2) No Senator or Member of the House of Representatives may

personally appear as counsel before any court of justice or before the
Electoral Tribunals, or quasi-judicial and other administrative bodies.
Neither shall he, directly or indirectly, be interested financially in any
contract with, or in any franchise or special privilege granted by the
Government, or any subdivision, agency or instrumentality thereof
including any government-owned or controlled corporation, or its
subsidiary, during his term of office. He shall not intervene in any
matter before any office of the Government for his pecuniary benefit
or where he may be called upon to act on account of his office.

Section 4. Electoral Tribunal. - The Senate and the House of

Representatives shall each have an Electoral Tribunal which shall be
the sole judge of all contests relating to the election, returns, and
qualifications of their respective Members. Each Electoral Tribunal
shall be composed of nine (9) Members, three (3) of whom shall be
Justices of the Supreme Court to be designated by the Chief Justice,
and the remaining six (6) shall be Members of the Senate or the
House of Representatives, as the case may be, who shall be chosen
on the basis of proportional representation from the political parties
and the parties or organizations registered under the party-list system
represented therein. The senior Justice in the Electoral Tribunal shall
be its Chairman.

Section 5. Commission on Appointments. - There shall be a

Commission on Appointments consisting of the President of the
Senate, as ex officio Chairman, and twelve (12) Senators and twelve
(12) Members of the House of Representatives, elected by each
House on the basis of proportional representation from the political
parties and parties or organizations registered under the party-list
system represented therein. The Chairman of the Commission shall
not vote, except in case of a tie. The Commission shall act on all
appointments submitted to it within thirty (30) session days of the
Congress from their submission. The Commission shall rule by a
majority vote of all its Members.

Section 6. Legislative Investigation. - The Senate or the House of

Representatives or any of its respective committees may conduct
inquiries in aid of legislation in accordance with its duly published
rules of procedure. The rights of persons appearing in or affected by
such inquiries shall be respected.

Section 7. Appearance of Heads of Departments. - The heads of

departments may upon their own initiative, with the consent of the
President, or upon the request of either House, as the rules of each
House shall provide, appear before and be heard by such House on
any matter pertaining to their departments. Written questions shall be
submitted to the President of the Senate or the Speaker of the House
of Representatives at least three (3) days before their scheduled
appearance. Interpellations shall not be limited to written questions,
but may cover matters related thereto. When the security of the State
or the public interest so requires and the President so states in
writing, the appearance shall be conducted in executive session.

Section 8. Initiative and Referendum. - The Congress shall, as early

as possible, provide for a system of initiative and referendum and the
exceptions therefrom, whereby the people can directly propose and
enact laws or approve or reject any act or law or part thereof passed
by the Congress or local legislative body after the registration of a
petition therefor signed by at least ten (10) per centum of the total
number of registered voters, of which every legislative district must be
represented by at least three (3) per centum of the registered voters
thereof.

Section 9. Power to Propose Constitutional Amendments. -

(1) Any amendment to, or revision of the Constitution may be

proposed by: (a) The Congress, upon a vote of three-fourths (3/4) of
all its Members; or (b) a constitutional convention. The Congress
may, by a vote of two-thirds (2/3) of all its Members, call a
constitutional convention, or by a majority vote of all its Members,
submit to the electorate the question of calling such a convention.

(2) Amendments to the Constitution may likewise be directly

proposed by the people through initiative upon a petition of at least
twelve (12) per centum of the total number of registered voters, of
which every legislative district must be represented by at least three
(3) per centum of the registered voters therein. No amendments
under this paragraph shall be authorized within five years following
the ratification of the 1987 Constitution nor oftener than once every
five years thereafter. The Congress shall provide for the
implementation of the exercise of this right.

Section 10. Validity of Constitutional Amendments. -

(1) Any amendment to or revision of the Constitution proposed by

Congress or a constitutional convention shall be valid when ratified by
a majority of the votes cast in a plebiscite which shall be held not
earlier than sixty days (60) nor later than ninety days (90) after the
approval of such amendment or revision.

(2) Any amendment to or revision of the Constitution directly

proposed by the people through initiative shall be valid when ratified
by a majority of the votes cast in a plebiscite which shall be held not
earlier than sixty days (60) nor later than ninety days (90) after the
certification by the Commission on Elections of the sufficiency of the
petition.
CHAPTER 3
EXECUTIVE POWER

Section 11. Exercise of Executive Power. - The Executive power shall

be vested in the President.

Section 12. The Vice-President. - There shall be a Vice-President

who shall have the same qualifications and term of office and be
elected with and in the same manner as the President. He may be
removed from office in the same manner as the President.

The Vice-President may be appointed as a Member of the Cabinet.

Such appointment requires no confirmation.

Section 13. Vacancy in Office of the President. - In case of death,

permanent disability, removal from office, or resignation of the
President, the Vice-President shall become the President to serve the
unexpired term. In case of death, permanent disability, removal from
office, or resignation of both the President and Vice-President, the
President of the Senate or, in case of his inability, the Speaker of the
House of Representatives, shall then act as President until the
President or Vice-President shall have been elected and qualified.

The Congress shall, by law, provide who shall serve as President in

case of death, permanent disability, or resignation of the Acting
President. He shall serve until the President or Vice-President shall
have been elected and qualified, and be subject to the same
restrictions of powers and disqualifications as the Acting President.

Section 14. Vacancy in Office of the Vice-President. - Whenever there

is a vacancy in the Office of the Vice-President during the term for
which he was elected, the President shall nominate a Vice-President
from among the Members of the Senate and the House of
Representatives who shall assume office upon confirmation by a
majority vote of all the Members of both Houses of the Congress,
voting separately.

Section 15. Inhibitions Against Executive Officials. - The President,

Vice-President, the Members of the Cabinet, and their deputies or
assistants shall not, unless otherwise provided in this Constitution,
hold any other office or employment during their tenure. They shall
not, during said tenure, directly or indirectly practice any other
profession, participate in any business, or be financially interested in
any contract with, or in any franchise, or special privilege granted by
the Government or any subdivision, agency, or instrumentality
thereof, including government-owned or controlled corporations or
their subsidiaries. They shall strictly avoid conflicts of interest in the
conduct of their office.

The spouse and relatives by consanguinity or affinity within the fourth

civil degree of the President shall not during his tenure be appointed
as Members of the Constitutional Commissions, or the Office of the
Ombudsman, or as Secretaries, Undersecretaries, chairmen or heads
of bureaus or offices, including government-owned or controlled
corporations and their subsidiaries.

CHAPTER 4
JUDICIAL POWER

Section 16. Judicial Power. - The judicial power shall be vested in one
(1) Supreme Court, and in such lower courts as may be established
by law. Such lower courts include the Court of Appeals,
Sandiganbayan, Court of Tax Appeals, Regional Trial Courts, Shari's
District Courts, Metropolitan Trial Courts, Municipal Trial Courts and
Municipal Circuit Trial Courts, and Shari'a Circuit Courts and they
shall continue to exercise their respective jurisdiction until otherwise
provided by law.

Judicial power includes the duty of the courts of justice to settle actual
controversies involving rights which are legally demandable and
enforceable, and, in cases prescribed by law, to determine whether or
not there has been a grave abuse of discretion amounting to lack or
excess of jurisdiction on the part of any branch or instrumentality of
the Government.

Section 17. Composition of the Supreme Court. - The Supreme Court

shall be composed of a Chief Justice and fourteen Associate
Justices. It may sit en banc or in its discretion, in divisions of three,
five or seven Members.
Section 18. Jurisdiction and Powers of Supreme Court. - The
Supreme Court shall have the following powers:

(1) Exercise original jurisdiction over cases affecting ambassadors,

other public ministers and consuls, and over petitions for certiorari,
prohibition, mandamus, quo warranto, and habeas corpus.

(2) Review, revise, reverse, modify, or affirm on appeal or certiorari

as the law or the Rules of Court may provide, final judgments and
orders of lower courts in:

(a) All cases in which the constitutionality or validity of any treaty,

international or executive agreement, law, presidential decree,
proclamation, order, instruction, ordinance, or regulation is in
question.

(b) All cases involving the legality of any tax, impost, assessment, or
toll, or any penalty imposed in relation thereto.

(c) All cases in which the jurisdiction of any lower court is in issue.

(d) All criminal cases in which the penalty imposed is reclusion

perpetua or higher.

(e) All cases in which only an error or question of law is involved.

(3) Assign temporarily judges of lower courts to other stations as

public interest may require. Such temporary assignment shall not
exceed six (6) months without the consent of the judge concerned.

(4) Order a change of venue or place of trial to avoid a miscarriage of

justice.

(5) Promulgate rules concerning the protection and enforcement of

constitutional rights, pleading, practice, and procedure in all courts,
the admission to the practice of law, the Integrated Bar, and legal
assistance to the underprivileged. Such rules shall provide a
simplified and inexpensive procedure for the speedy disposition of
cases, shall be uniform for all courts of the same grade; and shall not
diminish, increase, or modify substantive rights. Rules of procedure of
special courts and quasi-judicial bodies shall remain effective unless
disapproved by the Supreme Court.

(6) Appoint all officials and employees of the Judiciary in accordance

with the Civil Service law.

Section 19. Apportionment of Jurisdiction. - Congress shall define,

prescribe and apportion the jurisdiction of the various courts but may
not deprive the Supreme Court of its jurisdiction enumerated in the
immediately preceding section. Neither shall a law be passed
increasing its appellate jurisdiction as therein specified without its
advice and concurrence.

No law shall be passed reorganizing the Judiciary when it

undermines the security of tenure of its Members.

Section 20. Administrative Supervision.- The Supreme Court shall

have administrative supervision over all courts and the personnel
thereof.

Section 21. Judicial and Bar Council. -

(1) A Judicial and Bar Council is hereby created under the

supervision of the Supreme Court composed of the Chief Justice as
ex officio Chairman, the Secretary of Justice, and a representative of
the Congress as ex officio Member, a representative of the Integrated
Bar, a professor of law, a retired Member of the Supreme Court, and
a representative of the private sector.

(2) The regular members of the Council shall be appointed by the

President for a term of four (4) years with the consent of the
Commission of Appointments. Of the Members first appointed, the
representative of the Integrated Bar shall serve for four (4) years, the
professor of law for three (3) years, the retired Justice for two (2)
years, and the representative of the private sector for one (1) year.

(3) The Clerk of the Supreme Court shall be the Secretary ex officio
of the Council and shall keep a record of its proceedings.
(4) The regular Members of the Council shall receive such
emoluments as may be determined by the Supreme Court. The
Supreme Court shall provide in its annual budget the appropriations
for the Council.

(5) The Council shall have the principal function of recommending

appointees to the Judiciary. It may exercise such other functions and
duties as the Supreme Court may assign to it.

Section 22. Appointment of Members of Judiciary. - The Members of

the Supreme Court and judges of lower courts shall be appointed by
the President from a list of at least three (3) nominees prepared by
the Judicial and Bar Council for every vacancy. Such appointments
need no confirmation.

For the lower courts, the President shall issue the appointments
within ninety (90) days from the submission of the list.

Section 23. Prohibition Against Performing Quasi-Judicial or

Administrative Functions. - The Members of the Supreme Court and
of other courts established by law shall not be designated to any
agency performing quasi-judicial or administrative functions.

CHAPTER 5
CONSTITUTIONAL COMMISSIONS

Section 24. Constitutional Commissions. - The Constitutional

Commissions, which shall be independent, are the Civil Service
Commission, the Commission on Elections, and the Commission on
Audit.

Section 25. Inhibitions Against Constitutional Commissioners. - No

member of a Constitutional Commission shall, during his tenure, hold
any other office or employment. Neither shall he engage in the
practice of any profession or in the active management or control of
any business which in anyway may be affected by the functions of his
office, nor shall he be financially interested, directly or indirectly, in
any contract with, or in any franchise or privilege granted by the
Government, any of its subdivisions, agencies, or instrumentalities,
including government-owned or controlled corporations or their
subsidiaries.

Section 26. Fiscal Autonomy. - The Constitutional Commissions shall

enjoy fiscal autonomy. The approved annual appropriations shall be
automatically and regularly released.

Section 27. Promulgation of Rules. - Each Commission en banc may

promulgate its own rules concerning pleadings and practice before it
or before any of its offices. Such rules however shall not diminish,
increase, or modify substantive rights.

Section 28. Decisions by the Constitutional Commissions.- Each

Commission shall decide, by a majority vote of all its Members, any
case or matter brought before it within sixty (60) days from the date of
its submission for decision or resolution. A case or matter is deemed
submitted for decision or resolution upon the filing of the last
pleading, brief, or memorandum required by the rules of the
Commission or by the Commission itself. Unless otherwise provided
by the Constitution or by law, any decision, order, or ruling of each
Commission may be brought to the Supreme Court on certiorari by
the aggrieved party within thirty (30) days from receipt of a copy
thereof.

CHAPTER 6
OTHER BODIES

Section 29. Other Bodies. - There shall be in accordance with the

Constitution, an Office of the Ombudsman, a Commission on Human
Rights, an independent central monetary authority, and a national
police commission. Likewise, as provided in the Constitution,
Congress may establish an independent economic and planning
agency. lawphi1.net

BOOK III

OFFICE OF THE PRESIDENT

Title I
POWERS OF THE PRESIDENT

CHAPTER 1
POWER OF CONTROL

Section 1. Power of Control. - The President shall have control of all

the executive departments, bureaus, and offices. He shall ensure that
the laws be faithfully executed.

CHAPTER 2
ORDINANCE POWER

Section 2. Executive Orders. - Acts of the President providing for

rules of a general or permanent character in implementation or
execution of constitutional or statutory powers shall be promulgated
in executive orders.

Section 3. Administrative Orders. - Acts of the President which relate

to particular aspect of governmental operations in pursuance of his
duties as administrative head shall be promulgated in administrative
orders.

Section 4. Proclamations. - Acts of the President fixing a date or

declaring a status or condition of public moment or interest, upon the
existence of which the operation of a specific law or regulation is
made to depend, shall be promulgated in proclamations which shall
have the force of an executive order.

Section 5. Memorandum Orders. - Acts of the President on matters

of administrative detail or of subordinate or temporary interest which
only concern a particular officer or office of the Government shall be
embodied in memorandum orders.

Section 6. Memorandum Circulars. - Acts of the President on

matters relating to internal administration, which the President desires
to bring to the attention of all or some of the departments, agencies,
bureaus or offices of the Government, for information or compliance,
shall be embodied in memorandum circulars.
Section 7. General or Special Orders. - Acts and commands of the
President in his capacity as Commander-in-Chief of the Armed
Forces of the Philippines shall be issued as general or special orders.

CHAPTER 3
POWER OVER ALIENS

Section 8. Power to Deport. - The President shall have the power to

deport aliens subject to the requirements of due process.

Section 9. Power to Change Non-Immigrant Status of Aliens. - The

President, subject to the provisions of law, shall have the power to
change the status of non-immigrants by allowing them to acquire
permanent residence status without necessity of visa.

Section 10. Power to Countermand Decisions of the Board of

Commissioners of the Bureau of Immigration. - The decision of the
Board of Commissioners which has jurisdiction over all deportation
cases shall become final and executory after thirty (30) days from
promulgation, unless within such period the President shall order the
contrary.

Section 11. Power over Aliens under the General Principles of

International Law. - The President shall exercise with respect to
aliens in the Philippines such powers as are recognized by the
generally accepted principles of international law.

CHAPTER 4
POWERS OF EMINENT DOMAIN, ESCHEAT, LAND
RESERVATION AND RECOVERY OF ILL-GOTTEN WEALTH

Section 12. Power of Eminent Domain. - The President shall

determine when it is necessary or advantageous to exercise the
power of eminent domain in behalf of the National Government, and
direct the Solicitor General, whenever he deems the action advisable,
to institute expropriation proceedings in the proper court.

Section 13. Power to Direct Escheat or Reversion Proceedings. - The

President shall direct the Solicitor General to institute escheat or
reversion proceedings over all lands transferred or assigned to
persons disqualified under the Constitution to acquire land.

Section 14. Power to Reserve Lands of the Public and Private

Domain of the Government. -

(1) The President shall have the power to reserve for settlement or
public use, and for specific public purposes, any of the lands of the
public domain, the use of which is not otherwise directed by law. The
reserved land shall thereafter remain subject to the specific public
purpose indicated until otherwise provided by law or proclamation;

(2) He shall also have the power to reserve from sale or other
disposition and for specific public uses or purposes, any land
belonging to the private domain of the Government, or any of the
Friar Lands, the use of which is not otherwise directed by law, and
thereafter such land shall be used for the purposes specified by such
proclamation until otherwise provided by law.

Section 15. Power over Ill-gotten Wealth. - The President shall direct
the Solicitor General to institute proceedings to recover properties
unlawfully acquired by public officials or employees, from them or
from their nominees or transferees.

Within the period fixed in, or any extension thereof authorized by, the
Constitution, the President shall have the authority to recover ill-
gotten properties amassed by the leaders and supporters of the
previous regime and protect the interest of the people through orders
of sequestration or freezing of assets or accounts.

CHAPTER 5
POWER OF APPOINTMENT

Section 16. Power of Appointment. - The President shall exercise the

power to appoint such officials as provided for in the Constitution and
laws.

Section 17. Power to Issue Temporary Designation. -

(1) The President may temporarily designate an officer already in the
government service or any other competent person to perform the
functions of an office in the executive branch, appointment to which is
vested in him by law, when: (a) the officer regularly appointed to the
office is unable to perform his duties by reason of illness, absence or
any other cause; or (b) there exists a vacancy;

(2) The person designated shall receive the compensation attached

to the position, unless he is already in the government service in
which case he shall receive only such additional compensation as,
with his existing salary, shall not exceed the salary authorized by law
for the position filled. The compensation hereby authorized shall be
paid out of the funds appropriated for the office or agency concerned.

(3) In no case shall a temporary designation exceed one (1) year.

CHAPTER 6
GENERAL SUPERVISION OVER LOCAL GOVERNMENTS

Section 18. General Supervision Over Local Governments. - The

President shall exercise general supervision over local governments.

CHAPTER 7
OTHER POWERS

Section 19. Powers Under the Constitution. - The President shall

exercise such other powers as are provided for in the Constitution.

Section 20. Residual Powers. - Unless Congress provides otherwise,

the President shall exercise such other powers and functions vested
in the President which are provided for under the laws and which are
not specifically enumerated above, or which are not delegated by the
President in accordance with law.

Title II

ORGANIZATION

CHAPTER 8
ORGANIZATION OF THE OFFICE OF THE PRESIDENT
Section 21. Organization. - The Office of the President shall consist of
the Office of the President Proper and the agencies under it.

Section 22. Office of the President Proper. -

(1) The Office of the President Proper shall consist of the Private
Office, the Executive Office, the Common Staff Support System, and
the Presidential Special Assistants/Advisers System;

(2) The Executive Office refers to the Offices of the Executive

Secretary, Deputy Executive Secretaries and Assistant Executive
Secretaries;

(3) The Common Staff Support System embraces the offices or units
under the general categories of development and management,
general government administration and internal administration; and

(4) The President Special Assistants/Advisers System includes such

special assistants or advisers as may be needed by the President.

Section 23. The Agencies under the Office of the President. - The
agencies under the Office of the President refer to those offices
placed under the chairmanship of the President, those under the
supervision and control of the President, those under the
administrative supervision of the Office of the President, those
attached to it for policy and program coordination, and those that are
not placed by law or order creating them under any specific
department.

Title III

FUNCTIONS

CHAPTER 9
FUNCTIONS OF THE DIFFERENT OFFICES IN THE OFFICE OF
THE PRESIDENT PROPER

A - PRIVATE OFFICE
Section 24. Functions of the Private Office. - The Private Office shall
provide direct services to the President and shall for this purpose
attend to functions and matters that are personal or which pertain to
the First Family.

B - THE EXECUTIVE OFFICE

Section 25. Declaration of Policy. - The Executive Office shall be fully

responsive to the specific needs and requirements of the President to
achieve the purposes and objectives of the Office.

Section 26. The Executive Secretary, the Deputy Executive

Secretaries, and the Assistant Executive Secretaries. - The Executive
Office shall be headed by the Executive Secretary who shall be
assisted by one (1) or more Deputy Executive Secretaries and one
(1) or more Assistant Executive Secretaries.

Section 27. Functions of the Executive Secretary. - The Executive

Secretary shall, subject to the control and supervision of the
President, carry out the functions assigned by law to the Executive
Office and shall perform such other duties as may be delegated to
him. He shall:

(1) Directly assist the President in the management of the affairs

pertaining to the Government of the Republic of the Philippines;

(2) Implement presidential directives, orders and decisions;

(3) Decide, for and in behalf of the President, matters not requiring
personal presidential attention;

(4) Exercise supervision and control over the various units in the
Office of the President Proper including their internal administrative
requirements;

(5) Exercise supervision, in behalf of the President, over the various

agencies under the Office of the President;

(6) Appoint officials and employees of the Office of the President

whose appointments are not vested in the President;
(7) Provide overall coordination in the operation of the Executive
Office;

(8) Determine and assign matters to the appropriate units in the

Office of the President;

(9) Have administrative responsibility for matters in the Office of the

President coming from the various departments and agencies of
government;

(10) Exercise primary authority to sign papers "By authority of the

President", attest executive orders and other presidential issuances
unless attestation is specifically delegated to other officials by him or
by the President;

(11) Determine, with the President's approval, the appropriate

assignment of offices and agencies not placed by law under any
specific executive department;

(12) Provide consultative, research, fact-finding and advisory service

to the President;

(13) Assist the President in the performance of functions pertaining to

legislation;

(14) Assist the President in the administration of special projects;

(15) Take charge of matters pertaining to protocol in State and

ceremonial functions;

(16) Provide secretarial and clerical services for the President, the
Cabinet, the Council of State, and other advisory bodies to the
President

(17) Promulgate such rules and regulations necessary to carry out

the objectives, policies and functions of the Office of the President
Proper;

1.Perform such other functions as the President may direct.

C - COMMON STAFF SUPPORT SYSTEM

Section 28. Functions of the Common Staff Support System. - The

various staff units in the Office of the President Proper shall form a
common staff support system and shall be organized along the
various tasks of the Office namely:

(1) The Cabinet Secretariat which shall assist the President in the
establishment of agenda topics for the Cabinet deliberation, or
facilitate the discussion of cabinet meetings. It shall have such
organization, powers and functions as are prescribed by law;

(2) The Presidential Management Staff (PMS) which shall be the

primary governmental agency directly responsible to the Office of the
President for providing staff assistance in the Presidential exercise of
overall management of the development process. It shall have such
organization, powers and functions as are prescribed by law;

(3) General Government Administration Staff which shall provide the

President with staff support on matters concerning general
government administration relative to the operations of the national
government including the provision of legal services, administrative
services, staff work on political and legislative matters, information
and assistance to the general public, measures toward resolution of
complaints against public officials and employees brought to the
attention of the Office of the President and such other matters as the
President may assign;

(4) Internal Administrative Staff which shall render auxiliary and

support services for the internal administration of the Office of the
President.

D - PRESIDENTIAL ASSISTANT/ADVISERS SYSTEM

Section 29. Functions of Presidential Assistants/Advisers Systems. -

The Special Assistants/Advisers System shall provide advisory or
consultative services to the President in such fields and under such
conditions as the President may determine.
CHAPTER 10
FUNCTIONS OF THE AGENCIES UNDER THE OFFICE OF THE
PRESIDENT

Section 30. Functions of Agencies Under the Office of the President. -

Agencies under the Office of the President shall continue to operate
and function in accordance with their respective charters or laws
creating them, except as otherwise provided in this Code or by law.

Section 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.

BOOK IV

THE EXECUTIVE BRANCH

CHAPTER 1
THE DEPARTMENTS

Section 1. Purpose and Number of Departments. - The Executive

Branch shall have such Departments as are necessary for the
functional distribution of the work of the President and for the
performance of their functions.

Section 2. Declaration of Policy. -

(1) The Departments shall be organized and maintained to insure

their capacity to plan and implement programs in accordance with
established national policies;

(2) Bureaus and offices shall be grouped primarily on the basis of

major functions to achieve simplicity, economy and efficiency in
government operations and minimize duplication and overlapping of
activities; and

(3) The functions of the different Departments shall be decentralized

in order to reduce red tape, free central officials from administrative
details concerning field operations, and relieve them from
unnecessary involvement in routine and local matters. Adequate
authority shall be delegated to subordinate officials. Administrative
decisions and actions shall, as much as feasible, be at the level
closest to the public.

Section 3. Department Proper. -

(1) Unless otherwise provided in this Code or by law, the Department

proper shall include the Office of the Secretary and the staff consist of
the Secretary and the Undersecretary or Undersecretaries, together
with the personnel in their immediate offices;

(2) Every Secretary shall be assisted by such number of

Undersecretaries as may be provided for by this Code or by law;

The Undersecretary shall perform the functions as provided in

Chapter 2 of this Book;

(3) Whenever necessary, Assistant Secretary position or positions

may be created to form part of the Department proper; and

(4) In the absence of special provisions, the major staff units of each
department shall be the services which shall include: the Planning
Service, the Financial and Management Service, the Administrative
Service, and when necessary, the Technical and Legal Services.

Section 4. Jurisdiction over Bureaus, Offices, Regulatory Agencies

and Government Corporations. - Each Department shall have
jurisdiction over bureaus, offices, regulatory agencies, and
government-owned or controlled corporations assigned to it by law, in
accordance with the applicable relationship as defined in Chapter 7,
8, and 9 of this Book.

Section 5. Assignment of Offices and Agencies. - The President

shall, by executive order, assign offices and agencies not otherwise
assigned by law to any department, or indicate to which department a
government corporation or board may be attached.

CHAPTER 2
SECRETARIES, UNDERSECRETARIES, AND ASSISTANT
SECRETARIES

Section 6. Authority and Responsibility of the Secretary. - The

authority and responsibility for the exercise of the mandate of the
Department and for the discharge of its powers and functions shall be
vested in the Secretary, who shall have supervision and control of the
Department.

Section 7. Powers and Functions of the Secretary. - The Secretary

shall:

(1) Advise the President in issuing executive orders, regulations,

proclamations and other issuances, the promulgation of which is
expressly vested by law in the President relative to matters under the
jurisdiction of the Department;

(2) Establish the policies and standards for the operation of the
Department pursuant to the approved programs of governments;

(3) Promulgate rules and regulations necessary to carry out

department objectives, policies, functions, plans, programs and
projects;
(4) Promulgate administrative issuances necessary for the efficient
administration of the offices under the Secretary and for proper
execution of the laws relative thereto. These issuances shall not
prescribe penalties for their violation, except when expressly
authorized by law;

(5) Exercise disciplinary powers over officers and employees under

the Secretary in accordance with law, including their investigation and
the designation of a committee or officer to conduct such
investigation;

(6) Appoint all officers and employees of the Department except

those whose appointments are vested in the President or in some
other appointing authority; Provided, however, that where the
Department is regionalized on a department-wide basis, the
Secretary shall appoint employees to positions in the second level in
the regional offices as defined in this Code;

(7) Exercise jurisdiction over all bureaus, offices, agencies and

corporations under the Department as are provided by law, and in
accordance with the applicable relationships as specified in Chapters
7, 8, and 9 of this Book;

(8) Delegate authority to officers and employees under the

Secretary's direction in accordance with this Code; and

(9) Perform such other functions as may be provided by law.

Section 8. Submission of Performance Evaluation Reports. - The

Secretary shall formulate and enforce a system of measuring and
evaluating periodically and objectively the performance of the
Department and submit the same annually to the President.

Section 9. Submission of Budget Estimates. - The Secretary shall

prepare and submit to the President through the Department of
Budget and Management an estimate of the necessary expenditures
of the department during the next fiscal year, on the basis of the
reports and estimates submitted by bureaus and officers under him.
Section 10. Powers and Duties of the Undersecretary. - The
Undersecretary shall:

(1) Advise and assist the Secretary in the formulation and

implementation of department objectives and policies;

(2) Oversee all the operational activities of the department for which
he shall be responsible to the Secretary;

(3) Coordinate the programs and projects of the department and be

responsible for its economical, efficient and effective administration;

(4) Serve as deputy to the Secretary in all matters relating to the

operations of the department;

(5) Temporarily discharge the duties of the Secretary in the latter's

absence or inability to discharge his duties for any cause or in case of
vacancy of the said office, unless otherwise provided by law. Where
there are more than one Undersecretary, the Secretary shall allocate
the foregoing powers and duties among them. The President shall
likewise make the temporary designation of Acting Secretary from
among them; and

(6) Perform such other functions and duties as may be provided by

law.

Section 11. Duties and Functions of the Assistant Secretary. - The

Assistant Secretary shall perform such duties and functions as may
be provided by law or assigned to him by the Secretary.

CHAPTER 3
DEPARTMENT SERVICES

Section 12. Department Services. - Except as otherwise provided by

law, each Department shall have Department Services which shall
include the Planning Service, the Financial and Management Service,
the Administrative Service, and whenever necessary the Technical
and Legal Services.
Section 13. Planning Service. - The Planning Service shall provide
the department with economical, efficient and effective services
relating to planning, programming, and project development, and
discharge such other functions as may be provided by law. Where the
work of the department does not call for substantial planning and
programming, the Planning Service shall be constituted as a single
unit without subdivisions. Where substantial primary data-gathering is
essential to the operations of the department, a statistical unit may be
constituted as part of a technical service.

Section 14. Financial and Management Services. - The Financial and

Management Services shall advise and assist the Secretary on
financial and management matters and shall perform such other
functions as may be provided by law.

Section 15. Administrative Service. - The Administrative Service shall

provide the Department with economical, efficient and effective
services relating to personnel, legal assistance, information, records,
delivery and receipt of correspondence, supplies, equipment,
collections, disbursement, security and custodial work. It shall also
perform such other functions as may be provided by law.

Section 16. Technical Service. - Whenever necessary, one or more

technical services shall be established to take charge of technical
staff activities essential to a department and which cannot be
allocated to the three other services or to the bureaus.

Section 17. Legal Service. - A Legal Service shall be provided where

the operations of the department involve substantial legal work, in
which case the Administrative Service shall not have a Legal Division.
The Legal Service shall provide legal advice to the department;
interpret laws and rules affecting the operation of the department;
prepare contracts and instruments to which the department is a party,
and interpret provisions of contracts covering work performed for the
department by private entities; assist in the promulgation of rules
governing the activities of the department; prepare comments on
proposed legislation concerning the department; answer legal queries
from the public; assist the Solicitor General in suits involving the
Department or its officers, or employees or act as their principal
counsel in all actions taken in their official capacity before judicial or
administrative bodies; and perform such other functions as may be
provided by law.

Where the workload of the department does not warrant a Legal

Service or a Legal Division, there shall be one or more legal
assistants in the Office of the Secretary.

CHAPTER 4
BUREAUS

Section 18. Bureaus in General. -

(1) A Bureau is any principal subdivision of the department

performing a single major function or closely related functions.
Bureaus are either staff or line.

(2) Each bureau shall be headed by a Director who may have one or
more Assistant Directors as provided by law; and

(3) Each bureau may have as many divisions as are provided by law
for the economical, efficient and effective performance of its
functions.

Section 19. Staff Bureau. -

(1) A staff bureau shall primarily perform policy, program

development and advisory functions.

(2) The Director of a staff bureau shall:

(a) Advise and assist the Office of the Secretary on matters pertaining
to the Bureau's area of specialization;

(b) Provide consultative and advisory services to the regional offices

of the department;

(c) Develop plans, programs, operating standards, and administrative

techniques for the attainment of the objectives and functions of the
bureau; and
(d) Perform such other duties as may be provided by law.

(3) The staff bureau shall avail itself of the planning, financial and
administrative services in the department proper. The bureau may
have a separate administrative division, if circumstances so warrant.

Section 20. Line Bureau. -

(1) A line bureau shall directly implement programs adopted pursuant

to department policies and plans.

(2) The Director of a line bureau shall:

(a) Exercise supervision and control over all division and other units,
including regional offices, under the bureau;

(b) Establish policies and standards for the operations of the bureau
pursuant to the plans and programs of the department;

(c) Promulgate rules and regulations necessary to carry out bureau

objectives, policies and functions; and

(d) Perform such other duties as may be provided by law.

1.The line bureau may have staff units, as may be necessary,

corresponding to the services of the department proper. If the bureau
is small, only a single unit performing combined staff functions may
be provided.

CHAPTER 5
FIELD OFFICES

Section 21. Regional Offices. - Regional Offices shall be established

according to law defining field service areas. The administrative
regions shall be composed of a National Capital Region and Regions
I to XII. Provincial and district offices may be established only by law
whenever necessary.
Section 22. Integration of Field Service. - Except as otherwise
provided by law and when the needs of the service so require, the
department or agency shall organize an integrated regional office on
a department or agency-wide basis.

Section 23. Administration of Regional Office. - The regional office

shall be headed by a Regional Director who may be assisted by one
(1) Assistant Regional Director, except as may otherwise be provided
by law. The Regional Director shall be responsible for department or
agency functions performed in the region under his jurisdiction.

Section 24. Supervision of Regional Offices. -

(1) Whenever the function or activity of a department or agency

requires central or interregional action, the function may be
performed by the regional offices under the supervision and control of
the department proper or line bureau concerned.

(2) The staff bureau or division shall perform primarily advisory or

auxiliary functions and exercise in behalf of the department or agency
functional supervision over the regional offices. This shall include
authority to develop and set down standards, policies and procedures
to be implemented by operating units, and to evaluate continuously
such implementation for the purpose of recommending or when
authorized, taking corrective measures.

Section 25. Organization of Regional Offices. - Regional offices

organized on a department wide basis shall have units or personnel
in which the functional areas of the staff bureaus and services in the
department shall be represented. Regional offices of a line bureau
may have units or personnel in which the functional areas of the
primary units of the bureau are represented. Related functions of
regional units shall be consolidated.

Section 26. Functions of a Regional Office. -

(1) A regional office shall:

(a) Implement laws, policies, plans, programs, rules and regulations

of the department or agency in the regional area;
(b) Provide economical, efficient and effective service to the people in
the area;

(c) Coordinate with regional offices of other departments, bureaus

and agencies in the area;

(d) Coordinate with local government units in the area; and

(e) Perform such other functions as may be provided by law.

(2) District offices may be established only in cases of clear

necessity.

Section 27. Duties of a Regional Director. - The Regional Director

shall:

(1) Implement laws, policies, rules and regulations within the

responsibility of the agency;

(2) Implement agency programs in the region;

(3) Exercise the management functions of planning organizing,

directing and controlling

(4) Appoint personnel to positions in the first level and casual and
seasonal employees; and exercise disciplinary actions over them in
accordance with the Civil Service Law;

(5) Approve sick, vacation and maternity leaves of absence with or

without pay, for a period not beyond one year;

(6) Prepare and submit budget proposals for the region to the central
office, administer the budget of the regional office, authorize
disbursement of funds pursuant to approved financial and work
programs, and administer the budget control machinery in the region;

(7) Approve requisition for supplies, materials and equipment, as well

as books and periodicals, and other items for the region, in
accordance with the approved supply procurement program;
(8) Negotiate and enter into contracts for services or furnishing
supplies, materials and equipment to the regional office involving an
amount not exceeding fifty thousand pesos (P50,000.00) within a
given quarter, provided that authority in excess of fifty thousand
pesos (P50,000.00) may be further authorized by the proper
department or agency head;

(9) Approve claims for benefits under existing laws;

(10) Approve requests for overtime services;

(11) Promote coordination among the regional offices, and between

his regional office and local government units in the region;

(12) Provide housekeeping services for the regional office;

(13) Approve application of personnel for permission to teach,

exercise a profession, or engage in business outside of office hours
in accordance with standards and guidelines of the Civil Service
Commission;

(14) Issue travel vouchers authorizing employees to travel on official

business within the region for a period not exceeding thirty days;

(15) Approve attendance of personnel in conferences, seminars, and

non-degree training programs within the region;

(16) Authorize the allocation of funds to provincial/district offices; and

(17) Perform such other duties and functions as may be provided by

law or further delegated by the head of agency or other proper
authorities concerned.

Section 28. Review of Acts of Regional Director. - Nothing in the

preceding Section shall be construed as a limitation on the power of
the Secretary to review and modify, alter or reverse any action of the
Regional Director, or to initiate promotions and transfers of personnel
from one region to another.
CHAPTER 6
POWERS AND DUTIES OF HEADS OF BUREAUS OR OFFICES

Section 29. Powers and Duties in General. - The head of bureau or

office shall be its chief executive officer. He shall exercise overall
authority in matters within the jurisdiction of the bureau, office or
agency, including those relating to its operations, and enforce all laws
and regulations pertaining to it.

Section 30. Authority to Appoint and Discipline. - The head of bureau

or office shall appoint personnel to all positions in his bureau or office,
in accordance with law. In the case of the line bureau or office, the
head shall also appoint the second level personnel of the regional
offices, unless such power has been delegated. He shall have the
authority to discipline employees in accordance with the Civil Service
Law.

Section 31. Duties of Assistant Heads and Subordinates. -

(1) Assistant heads and other subordinates in every bureau or office

shall perform such duties as may be required by law or regulations, or
as may be specified by their superiors not otherwise inconsistent with
law;

(2) The head of bureau or office may, in the interest of economy,

designate the assistant head to act as chief of any division or unit
within the organization, in addition to his duties, without additional
compensation; and

(3) In the absence of special restriction prescribed by law, nothing

shall prevent a subordinate officer or employee from being assigned
additional duties by proper authority, when not inconsistent with the
performance of the duties imposed by law.

Section 32. Acting Head of Bureau or Office. - In case of the absence

or disability of the head of a bureau or office, his duties shall be
performed by the assistant head. When there are two or more
assistant heads, the Secretary shall make the designation. In the
absence of an assistant head, the Secretary may designate any
officer or employee of the bureau or office as acting head without
additional compensation.

Section 33. Performance of Duties of Subordinate Officers

Temporarily Absent. - In case of the temporary absence or disability
of any subordinate officer or employee in any bureau or office, its
head may, subject to existing laws, rules and regulations, designate
any other subordinate officer or employee within the organization to
perform temporarily the duties of the absent or disabled person.

Section 34. Filling of Vacancies. - Vacancies caused by death,

resignation or removal of any officer or subordinate may be
temporarily filled in the same manner as in the case of temporary
absence or disability. The vacancies shall not be filled by permanent
appointment, until the expiration of any leave allowable to the
predecessor, unless the exigencies of the service require that the
appointment be made immediately.

Section 35. Power to Require Bonds. -

(1) The head of each bureau or office shall, consistent with law, rules
and regulations, prescribe the form and fix the amount of all bonds
executed by private parties to the government under the laws
pertaining to his bureau or office. He shall pass on the sufficiency of
the security and retain possession of the bond.

(2) When it appears that any such bond is insufficient, the head may
require additional security. He may withdraw the privilege secured by
the bond upon failure of the party to give additional security within the
period fixed in the notice, but such an action shall be without
prejudice to the liability of any person or property already obligated.

Section 36. Authority to Prescribe Forms and Issue Regulations. -

(1) The head of a bureau or office shall prescribe forms and issue
circulars or orders to secure the harmonious and efficient
administration of his bureau or office and to carry into full effect the
laws relating to matters within his jurisdiction. Penalties shall not be
prescribed in any circular or order for its violation, except as
expressly allowed by law;
(2) Heads of bureaus or offices are authorized to issue orders
regarding the administration of their internal affairs for the guidance of
or compliance by their officers and employees;

(3) Regional directors are authorized to issue circulars of purely

information or implementing nature and orders relating to the
administration of the internal affairs of regional offices and units within
their supervision; and

(4) Issuances under paragraphs (2) and (3) hereof shall not require,
for their effectivity, approval by the Secretary or other authority.

Section 37. Annual Reports. -

(1) All heads of bureaus or offices of the national government shall

render annual reports to their respective Secretaries on or before the
last day of February of each year.

(2) The reports shall contain concise statements of accomplishments

and assessment of the progress attained in terms of approved
programs and projects, including pertinent financial statements on
expenditures incurred in their implementation during the calendar
year. Broad recommendations and plans for undertaking work during
the ensuing period shall be included together with matters specifically
required by law or regulation to be incorporated therein.

CHAPTER 7
ADMINISTRATIVE RELATIONSHIP

Section 38. Definition of Administrative Relationship. - Unless

otherwise expressly stated in the Code or in other laws defining the
special relationships of particular agencies, administrative
relationships shall be categorized and defined as follows:

(1) Supervision and Control. - Supervision and control shall include

authority to act directly whenever a specific function is entrusted by
law or regulation to a subordinate; direct the performance of duty;
restrain the commission of acts; review, approve, reverse or modify
acts and decisions of subordinate officials or units; determine
priorities in the execution of plans and programs; and prescribe
standards, guidelines, plans and programs. Unless a different
meaning is explicitly provided in the specific law governing the
relationship of particular agencies, the word "control" shall
encompass supervision and control as defined in this paragraph.

(2) Administrative Supervision. - (a) Administrative supervision which

shall govern the administrative relationship between a department or
its equivalent and regulatory agencies or other agencies as may be
provided by law, shall be limited to the authority of the department or
its equivalent to generally oversee the operations of such agencies
and to insure that they are managed effectively, efficiently and
economically but without interference with day-to-day activities; or
require the submission of reports and cause the conduct of
management audit, performance evaluation and inspection to
determine compliance with policies, standards and guidelines of the
department; to take such action as may be necessary for the proper
performance of official functions, including rectification of violations,
abuses and other forms of maladministration; and to review and pass
upon budget proposals of such agencies but may not increase or add
to them;

(b) Such authority shall not, however, extend to: (1) appointments
and other personnel actions in accordance with the decentralization
of personnel functions under the Code, except appeal is made from
an action of the appointing authority, in which case the appeal shall
be initially sent to the department or its equivalent, subject to appeal
in accordance with law; (2) contracts entered into by the agency in
the pursuit of its objectives, the review of which and other procedures
related thereto shall be governed by appropriate laws, rules and
regulations; and (3) the power to review, reverse, revise, or modify
the decisions of regulatory agencies in the exercise of their regulatory
or quasi-judicial functions; and

(c) Unless a different meaning is explicitly provided in the specific law

governing the relationship of particular agencies, the word
"supervision" shall encompass administrative supervision as defined
in this paragraph.
(3) Attachment. - (a) This refers to the lateral relationship between the
department or its equivalent and the attached agency or corporation
for purposes of policy and program coordination. The coordination
may be accomplished by having the department represented in the
governing board of the attached agency or corporation, either as
chairman or as a member, with or without voting rights, if this is
permitted by the charter; having the attached corporation or agency
comply with a system of periodic reporting which shall reflect the
progress of programs and projects; and having the department or its
equivalent provide general policies through its representative in the
board, which shall serve as the framework for the internal policies of
the attached corporation or agency;

(b) Matters of day-to-day administration or all those pertaining to

internal operations shall be left to the discretion or judgment of the
executive officer of the agency or corporation. In the event that the
Secretary and the head of the board or the attached agency or
corporation strongly disagree on the interpretation and application of
policies, and the Secretary is unable to resolve the disagreement, he
shall bring the matter to the President for resolution and direction;

(c) Government-owned or controlled corporations attached to a

department shall submit to the Secretary concerned their audited
financial statements within sixty (60) days after the close of the fiscal
year; and

(d) Pending submission of the required financial statements, the

corporation shall continue to operate on the basis of the preceding
year's budget until the financial statements shall have been
submitted. Should any government-owned or controlled corporation
incur an operation deficit at the close of its fiscal year, it shall be
subject to administrative supervision of the department; and the
corporation's operating and capital budget shall be subject to the
department's examination, review, modification and approval.

CHAPTER 8
SUPERVISION AND CONTROL

Section 39. Secretary's Authority. -

(1) The Secretary shall have supervision and control over the
bureaus, offices, and agencies under him, subject to the following
guidelines:

(a) Initiative and freedom of action on the part of subordinate units

shall be encouraged and promoted, rather than curtailed, and
reasonable opportunity to act shall be afforded those units before
control is exercised;

(b) With respect to functions involving discretion, experienced

judgment or expertise vested by law upon a subordinate agency,
control shall be exercised in accordance with said law; and

(c) With respect to any regulatory function of an agency subject to

department control, the authority of the department shall be governed
by the provisions of Chapter 9 of this book.

(2) This Chapter shall not apply to chartered institutions or

government-owned or controlled corporations attached to the
department.

Section 40. Delegation of Authority. - The Secretary or the head of an

agency shall have authority over and responsibility for its operation.
He shall delegate such authority to the bureau and regional directors
as may be necessary for them to implement plans and programs
adequately. Delegated authority shall be to the extent necessary for
economical, efficient and effective implementation of national and
local programs in accordance with policies and standards developed
by each department or agency with the participation of the regional
directors. The delegation shall be in writing; shall indicate to which
officer or class of officers or employees the delegation is made; and
shall vest sufficient authority to enable the delegate to discharge his
assigned responsibility.

Section 41. Line Bureau Authority. -

(1) Line bureaus of a department shall exercise supervision and

control over their regional and other field offices. They shall be
directly responsible for the development and implementation of plans
and programs within their respective functional specializations; and
(2) The regional and other field offices shall constitute the operating
arms of the bureau concerned for the direct implementation of the
plans and programs drawn up in accordance with approved policies
and standards. As counterparts of the bureau in the region, they shall
undertake bureau operations within their respective jurisdictions, and
be directly responsible to their bureau director.

CHAPTER 9
RELATIONSHIPS OF GOVERNMENT-OWNED OR CONTROLLED
CORPORATIONS AND REGULATORY AGENCIES TO THE
DEPARTMENT

Section 42. Government-Owned or Controlled Corporations. -

Government-owned or controlled corporations shall be attached to
the appropriate department with which they have allied functions, as
hereinafter provided, or as may be provided by executive order, for
policy and program coordination and for general supervision provided
in pertinent provisions of this Code.

In order to fully protect the interests of the government in

government-owned or controlled corporations, at least one-third (1/3)
of the members of the Boards of such corporations should either be a
Secretary, or Undersecretary, or Assistant Secretary.

Section 43. Regulatory Agencies. -

(1) A regulatory agency shall be subject to the administrative

supervision of the department under which they are placed, except
when they are government corporations in which case they shall be
governed by the provisions of the preceding section;

(2) The heads of regulatory agencies shall submit annually, for the
approval of the Secretary concerned, their budgets and work plans
which shall be the basis of their day-to-day operations; and

(3) The regulatory agencies may avail themselves of the common

auxiliary and management services of the department as may be
convenient and economical for their operations.
CHAPTER 10
APPOINTMENTS AND QUALIFICATIONS

Section 44. Appointment of Secretaries. - The Secretaries of

Departments shall be appointed by the President with the consent of
the Commission on Appointments, at the beginning of his term of
office, and shall hold office, unless sooner removed, until the
expiration of his term of office, or until their successors shall have
been appointed and qualified.

Section 45. Qualifications of Secretaries. - The Secretaries shall be

citizens of the Philippines and not less than twenty-five years of age.

Section 46. Appointments of Undersecretaries and Assistant

Secretaries. - The Undersecretaries and Assistant Secretaries of
Departments shall, upon the nomination of the Secretary of the
Department concerned, be appointed by the President.

Section 47. Appointment to other Senior Positions and their

Equivalents. - Directors and Assistant Directors of Bureaus, Regional
and Assistant Regional Directors, Department Service Chiefs, and
their Equivalents shall be appointed by the President in accordance
with law, rules and regulations.

Section 48. Disqualification of the spouse and relatives of the

President. - The spouse and relatives by consanguinity or affinity
within the fourth civil degree of the President shall not during his
tenure be appointed as Secretaries, Undersecretaries, Chairmen or
heads of bureaus or offices including government-owned or
controlled corporations and their subsidiaries.

Section 49. Inhibitions Against Holding More than Two Positions. -

Even, if allowed by law or by the primary functions of his position, a
member of the Cabinet, undersecretary, assistant secretary or other
appointive official of the Executive Department may, in addition to his
primary position, hold not more than two positions in the government
and government-owned corporations and receive the corresponding
compensation therefor: Provided, that this limitation shall not apply to
ad hoc bodies or committees, or to boards, councils or bodies of
which the President is the Chairman.
If a Secretary, Undersecretary, Assistant Secretary or other
appointive official of the Executive Department holds more positions
than what is allowed in the preceding paragraph, he must relinquish
the excess positions in favor of a subordinate official who is next in
rank, but in no case shall any official hold more than two positions
other than his primary position.

CHAPTER 11
ADMINISTRATIVE ISSUANCES

Section 50. General Classification of Issuances. - The administrative

issuances of Secretaries and heads of bureaus, offices or agencies
shall be in the form of circulars or orders.

(1) Circulars shall refer to issuances prescribing policies, rules and

regulations, and procedures promulgated pursuant to law, applicable
to individuals and organizations outside the Government and
designed to supplement provisions of the law or to provide means for
carrying them out, including information relating thereto; and

(2) Orders shall refer to issuances directed to particular offices,

officials, or employees, concerning specific matters including
assignments, detail and transfer of personnel, for observance or
compliance by all concerned.

Section 51. Numbering System of Issuances. - Every circular or order

issued pursuant to the preceding section shall properly be identified
as such and chronologically numbered. Each class of issuance shall
begin with number 1 of each calendar year .

Section 52. Official Logbook. - Each department, bureau, office or

agency shall keep and preserve a logbook in which shall be recorded
in chronological order, all final official acts, decisions, transactions or
contracts, pertaining to the department, bureau, office or agency.
Whenever the performance of an official act is in issue, the date and
the time record in the logbook shall be controlling. The logbook shall
be in the custody of the chief Administrative Officer concerned and
shall be open to the public for inspection.
Section 53. Government-wide Application of the Classification of
Issuances. -

(1) The Records Management and Archives Office in the General

Services Administration shall provide such assistance as may be
necessary to effect general adherence to the foregoing classification
of issuances, including the conduct of studies for developing sub-
classifications and guidelines to meet peculiar needs; and

(2) All administrative issuances of a general or permanent character

shall be compiled, indexed and published pursuant to the provisions
of this Code.

CHAPTER 12
MISCELLANEOUS RECEIPTS

Section 54. Charges for Property Sold or Services Rendered;

Refunds. -

(1) For services required by law to be rendered for a fee, for supplies
furnished, or articles of any kind sold to other divisions of the
government or to any person, the head of bureau, office or agency
may, upon approval of the Secretary charge and collect the cost of
the service, supplies, or articles or other rate in excess of cost
prescribed by law or approved by the same authority. For local
governments, the rate, except where otherwise prescribed by law,
shall be affixed at cost or at such other reasonable rate in excess of
cost by the boards or councils concerned;

(2) The officer authorized to fix the amount to be paid for service
rendered and supplies or articles furnished or sold may recommend
that the whole or part of any sum so paid be refunded, upon approval
of the Commission on Audit.

Section 55. Disposition of Miscellaneous Bureau Receipts. - In the

absence of special provision, money collected for property sold or
service rendered, and all other receipts or earnings of bureaus,
offices, and agencies not derived from taxation, shall accrue to the
general unappropriated funds of the National Government.
Section 56. Printing of Studies and Researches. - With the approval
of the Secretary, a bureau, office, or agency may print its studies,
researches and similar materials for distribution at cost to the public.
The Secretary may authorize the printing or reprinting of the said
materials by private persons for sale to the public upon payment of
such royalties as may be fixed by him, which shall accrue to the
general fund.

CHAPTER 13
CONTRACTS

Section 57. Conveyances and Contracts to which the Government is

a Party. - Any deed, instrument or contract conveying the title to real
estate or to any other property the value of which does not exceed
fifty million pesos (P50,000,000) awarded through public bidding, and
five million pesos (P5,000,000) awarded through negotiation, shall be
executed and signed by the respective Secretary on behalf of the
Government of the Philippines. Where the value of the property
exceeds the aforesaid ceilings, such deed, instrument or contract
shall be executed and signed by the President of the Philippines on
behalf of the Government.

Section 58. Ceiling for Infrastructure Contracts. - The following shall

be the ceilings for all civil works, construction and other contracts for
infrastructure projects, including supply contracts for said projects,
awarded through public bidding or through negotiation, which may be
approved by the Secretaries of Public Works and Highways,
Transportation and Communications, Local Government with respect
to Rural Road Improvement Project, and governing boards of
government-owned or controlled corporations:

Awarded through Public Bidding

Awarded through Negotiation

a.
Secretary of Public Works and Highways

P100 Mil.

P10 Mil.

b.

Secretary of Transportation and Communications

100 Mil.

10 Mil.

c.

Secretary of Local Government with respect to the Rural Road

Improvement Project

100 Mil.

2 Mil.

d.

Government Boards of Infra- structure Corporations (National Power

Corporation, National Irrigation Administration, Metropolitan
Waterworks and Sewerage System, National Housing Authority,
Philippine Port Authority, National Electrification Administration,
Export Processing Zone Authority, Philippine National Railways,
Local Water Utilities Administration, Light Rail Transit Authority and
Philippine National Oil Company)

50 Mil.

5 Mil.
e.

Governing Boards of Non-Infrastructure Corporations

7.5 Mil.

1 Mil.

Save as provided for above, the approval ceilings assigned to the

departments/agencies involved in national infrastructure and
construction projects shall remain at the levels provided in existing
laws, rules and regulations.

Section 59. Contracts for Approval by the President. - Contracts for

infrastructure projects, including contracts for the supply of materials
and equipment to be used in said projects, which involve amounts
above the ceilings provided in the preceding section shall be
approved by the President: Provided, That the President may, when
conditions so warrant, and upon recommendation of the National
Economic and Development Authority, revise the aforesaid ceilings of
approving authority.

Section 60. Approval of Consultancy Contracts. - All purely

consultancy contracts relating to infrastructure projects, regardless of
amount, shall be approved by the Secretaries concerned, in
accordance with the Guidelines on the Hiring of Consultants to be
promulgated by the National Economic and Development Authority:
Provided, That the National Economic and Development Authority
shall be furnished by the departments, agencies or government
corporations concerned, copies of all consultancy contracts entered
into by them involving an amount in excess of P1 million for
monitoring purposes.

Section 61. Delegation of Authority to Governing Boards of

Government Corporations. - The Secretaries are authorized to
delegate to the governing boards of government-owned or controlled
corporations which are attached to or are under the administrative
supervision of their respective departments, the authority to approve
contracts for infrastructure projects entered into by said corporations
involving amounts which are beyond the ceiling provided for
government corporations under Section 57 hereof but which are
within the approving authority of the Secretaries under the said
Section. In the case of government corporations which are attached
to or under the Office of the President, the delegation shall be made
by the Executive Secretary.

Section 62. Public Bidding of Contracts; Exceptions. - As a general

rule, contracts for infrastructure projects shall be awarded after open
public bidding to bidders who submit the lowest responsive/evaluated
bids. Open Public Bidding shall be conducted among prequalified
contractors in accordance with laws, rules and regulations not
inconsistent with the provisions of this Chapter. The award of such
contracts through negotiations shall only be allowed by the Secretary
or Governing Board of the Corporation concerned within the limits as
stated in Section 57 hereof in the following cases:

a. In times of emergencies arising from natural calamities where

immediate action is necessary to prevent imminent loss of life or
property, in which case, direct negotiation or simplified bidding may
be undertaken;

b. Failure to award the contract after competitive public bidding for

valid cause or causes, in which case, simplified bidding may be
undertaken; and

c. Where the construction project covered by the contract is adjacent

or contiguous to an on-going project and it could be economically
prosecuted by the same contractor, in which case, direct negotiation
may be undertaken with the said contractor at the same unit prices
and contract conditions, less mobilization costs, provided that he has
no negative slippage and has demonstrated a satisfactory
performance. Otherwise, the contract shall be awarded through public
bidding.

Section 63. Contracts for Community Employment and Development

Program Projects. - Contracts covering projects under the Community
Employment and Development Program of the government shall be
awarded through open public bidding: Provided, That the invitation to
bid for the said projects shall be advertised at least once within one
week in a newspaper of local circulation within the province where the
project is situated, through posting of notices in the premises of the
municipal/provincial office, and through other forms of media, such as
radio and television: Provided, further, That the deadline for
submission of bids for projects costing not more than P1 million each
may be shortened to one week after the date of such invitation,
posting of notices or advertisement through other forms of media.

Section 64. Constitution of the Prequalification, Bids, and Awards

Committee. - Each department, office or agency shall have in its head
office or in its implementing offices a Prequalification, Bids and
Awards Committee which shall be responsible for the conduct of
prequalification of contractors, biddings, evaluation of bids and
recommending awards of contracts. Each Prequalification, Bids and
Awards Committee shall be composed of the following:

a. A Chairman (regular) who should at least be a third ranking official

of the department/agency/implementing Office;

b. An Executive Officer and Secretary (regular) who is a Legal Officer

of the department/office/implementing office;

c. A Technical Member (regular) to be designated by the Secretary or

the head of the office/agency/implementing office;

d. Two members (provisional) with experience in the type of project to

be bidded and in project management, duly designated by the
Secretary or the head of the office/implementing office on a project-
to-project basis; and

e. A representative from at least one of the following organizations

who shall be a non-voting member:

1. Philippine Institute of Civil Engineers

2. Philippine Contractors Association

3. National Confederation of Contractors Associations of the
Philippines, Inc.

4. Philippine Institute of Certified Public Accountants

The representation in the Prequalification, Bids and Awards

Committee of the above-mentioned private organizations shall be
made as follows:

1. During the prequalification stage, the representative to be invited

shall come from the Philippine Institute of Certified Public
Accountants; and

2. In the bidding, bid evaluation and award stages, a representative

each from the Philippine Institute of Certified Public Accountants and
from the Philippine Contractors Association or the National
Confederation of Contractors Associations of the Philippines, Inc.
shall be invited as non-voting members of the Prequalification, Bids
and Awards Committee without prejudice to inviting another
representative/s from any of the other organizations mentioned
above.

Section 65. Approval of other types of Government Contracts. - All

other types of government contracts which are not within the
coverage of this Chapter shall, in the absence of a special provision,
be executed with the approval of the Secretary or by the head of the
bureau or office having control of the appropriation against which the
contract would create a charge. Such contracts shall be processed
and approved in accordance with existing laws, rules and regulations.

CHAPTER 14
CONTROVERSIES AMONG GOVERNMENT OFFICES AND
CORPORATIONS

Section 66. How Settled. - All disputes, claims and controversies,

solely between or among the departments, bureaus, offices, agencies
and instrumentalities of the National Government, including
government-owned or controlled corporations, such as those arising
from the interpretation and application of statutes, contracts or
agreements, shall be administratively settled or adjudicated in the
manner provided in this Chapter. This Chapter shall, however, not
apply to disputes involving the Congress, the Supreme Court, the
Constitutional Commissions, and local governments.

Section 67. Disputes Involving Questions of Law. - All cases involving

only questions of law shall be submitted to and settled or adjudicated
by the Secretary of Justice as Attorney-General of the National
Government and as ex officio legal adviser of all government-owned
or controlled corporations. His ruling or decision thereon shall be
conclusive and binding on all the parties concerned.

Section 68. Disputes Involving Questions of Fact and Law. - Cases

involving mixed questions of law and of fact or only factual issues
shall be submitted to and settled or adjudicated by:

(1) The Solicitor General, if the dispute, claim or controversy involves

only departments, bureaus, offices and other agencies of the National
Government as well as government-owned or controlled corporations
or entities of whom he is the principal law officer or general counsel;
and

(2) The Secretary of Justice, in all other cases not falling under
paragraph (1).

Section 69. Arbitration. - The determination of factual issues may be

referred to an arbitration panel composed of one representative each
of the parties involved and presided over by a representative of the
Secretary of Justice or the Solicitor General, as the case may be.

Section 70. Appeals. - The decision of the Secretary of Justice as well

as that of the Solicitor General, when approved by the Secretary of
Justice, shall be final and binding upon the parties involved. Appeals
may, however, be taken to the President where the amount of the
claim or the value of the property exceeds one million pesos. The
decision of the President shall be final.

Section 71. Rules and Regulations. - The Secretary of Justice shall

promulgate the rules and regulations necessary to carry out the
provisions of this Chapter.
Title I

FOREIGN AFFAIRS

CHAPTER 1
GENERAL PROVISIONS

Section 1. Declaration of Policy. - The State shall pursue an

independent foreign policy. In its relations with other states the
paramount consideration shall be national sovereignty, territorial
integrity, national interest, and the right to self-determination.

Section 2. Mandate. - The Department shall be the lead agency that

shall advise and assist the President in planning, organizing,
directing, coordinating and evaluating the total national effort in the
field of foreign relations.

Section 3. Powers and Functions. - To carry out its mandate and

accomplish its mission, the Department shall:

(1) Conduct the country's foreign relations;

(2) Maintain and develop the country's representation with foreign

governments;

(3) Conduct Philippine representation in the United Nations, the

Association of Southeast Asian Nations (ASEAN), and other
international and regional organizations;

(4) Serve as the channel for matters involving foreign relations,

including official communications to and from the Republic of the
Philippines;

(5) Negotiate treaties and other agreements pursuant to instructions

of the President, and in coordination with other government agencies;

(6) Promote trade, investments, tourism and other economic relations

with other countries in cooperation with other government agencies;
(7) Foster cultural relations with other countries and protect and
enhance the Philippines' image abroad;

(8) Undertake efforts to inform the international community about the

Philippines in cooperation with other government agencies;

(9) Protect and assist Philippine nationals abroad;

(10) Carry out legal documentation functions as provided for by law

and regulations;

(11) Monitor and analyze events in other countries and report them,
as appropriate, to the President and other government agencies;

(12) Initiate, formulate, integrate and submit to the President short,

medium, and long-range foreign policy plans and programs in
cooperation with other government agencies;

(13) Supervise and direct officials and employees assigned by the

Department and other government agencies to Foreign Service
establishments abroad in accordance with the pertinent laws, rules
and inter-agency agreements;

(14) Recruit, maintain and develop a professional career foreign

service based on merit; and

(15) Perform such other functions as may be provided by law.

Section 4. Organizational Structure. - The Department shall have the

following units:

(1) The Department Proper which shall be composed of the Office of

the Secretary, the Offices of the Undersecretaries, the Offices of the
Assistant Secretaries, and the Home Offices;

(2) The Foreign Service Establishments which are the Philippine

Embassies, Consulates, Legations and Permanent Missions.

CHAPTER 2
DEPARTMENT PROPER
Section 5. Offices Under the Direct Supervision of the Secretary. -
The Secretary shall exercise direct supervision over the following:

(1) Foreign Service Institute. - The Foreign Service Institute shall

continue to operate under its charter, and shall have the following
main objectives and responsibilities:

(a) Program, implement, and manage the Career Foreign Service

Development Program (CFSDP) in all of its main components for the
purpose of upgrading the professional Career Foreign Service Corps;

(b) Program, implement and manage complementary organizational

development programs for the Department as well as other training
and educational programs for both its career and non-career
personnel, and personnel of other government agencies assigned to
foreign missions;

(c) Program, implement and manage the necessary supportive plans

and operating systems for the Career Foreign Service Development
Programs and complementary programs;

(d) Develop its own policies, and rules, program of activities, core
staff and consultants, administrative structure, operating systems and
resources, in order to enable it to accomplish competently its
activities.

It shall be revitalized as the training, research, and career

development arm of the Department, in accordance with such rules
as may be prescribed by the Secretary. The Institute shall be an
integral participant in the planning review process in the Department.

(2) UNESCO National Commission of the Philippines. - The United

Nations Educational Scientific and Cultural Organization (UNESCO)
National Commission of the Philippines shall, in coordination with the
Office of United Nations and other international organizations, advise
the Philippine Government and the Philippine delegation to the
UNESCO Conference, on matters relating to UNESCO, and shall
function as a liaison agency on matters pertaining to the Commission.
(3) Technical Assistance Council. - The Technical Assistance Council
shall continue to perform its present functions including the conduct
and expansion of its programs.

Section 6. Undersecretaries. - The Secretary shall be assisted by

two (2) Undersecretaries, who shall be appointed by the President,
upon the recommendation of the Secretary. The Secretary shall
determine and assign the respective functions and responsibilities of
the Undersecretaries. The Secretary shall designate one of the
Undersecretaries as Acting Secretary in his absence.

Section 7. Assistant Secretaries. - The Secretary shall be assisted

by six (6) Assistant Secretaries who shall be appointed by the
President upon recommendation by the Secretary. The Secretary
shall delineate the respective areas of responsibility of each Assistant
Secretary.

Section 8. Home Offices. -

(1) Geographical Offices. - The following offices shall be responsible

for providing staff support and policy guidance in the coordination,
supervision, monitoring, integration, and reporting of the activities and
operations of Philippine diplomatic missions and establishments
within their geographical coverage:

(a) Office of Asian and Pacific Affairs: Japan and Northeast Asia,
China, Central Asia, Southeast Asia, South Asia and Pacific
countries;

(b) Office of Middle East and African Affairs: the Gulf States, Middle
East and North Africa, West Africa and East Africa;

(c) Office of American Affairs: United States of America, Canada,

Mexico, the Central American and Caribbean countries, and South
America.

(d) Office of European Affairs: Union of Soviet Socialist Republics,

Western Europe, Eastern Europe and Central Europe.
(2) Office of ASEAN Affairs. - The Office of ASEAN Affairs shall be
responsible for Philippine participation and negotiation, as well as
providing staff support and policy guidance in the coordination,
supervision, monitoring, integration, reporting and operations of the
Philippine Government in the ASEAN.

(3) Office of the United Nations and Other International

Organizations. - The Office of the United Nations and other
International Organizations shall be responsible for Philippine
participation and negotiation as well as providing staff support and
policy guidance in the coordination, supervision, monitoring,
integration, reporting and operations of the Philippine Government in
the United Nations, its specialized agencies and other international
organizations. It shall also serve as the secretariat of all Philippine
National Commissions and Councils created pursuant to
commitments in the United Nations and its specialized agencies.

(4) Office of International Economic Affairs and Development. - The

Office of International Economic Affairs and Development shall be
responsible for conducting programs and activities of the Department
in the fields of international trade, finance and economics; coordinate
with the regional offices and the Office of United Nations and
International Organizations; and, in coordination with the Department
of Trade and Industry, conduct trade and investment promotion
activities of the Department.

(5) Office of Cultural Affairs and Public Information Services. - The

Office of Cultural Affairs and Public Information Services shall be
responsible for promoting the cultural and public information program
of the Government abroad and for the development and
dissemination of information and the coordination of information
activities on the Government's foreign and domestic policies.

(6) Office of Personnel and Administrative Services. - The Office of

Personnel and Administrative Services shall be responsible for the
efficient management of human resources and administrative support
services, and shall make appropriate recommendations, including
those concerning job classification, salary administration, benefits,
retirement, and awards to deserving members of the Foreign Service.
(7) Office of Financial Management Services. - The Office of
Financial Management Services shall be responsible for budgetary,
financial and accounting services in the Department and the Foreign
Service.

(8) Office of Consular Services. - The Office of Consular Services

shall be responsible for the efficient and effective delivery of passport,
visa and authentication services. It shall also extend assistance to
Filipino nationals both here and abroad.

Section 9. Advisory Boards and Committees. - The Secretary may

create such advisory boards and committees as he may deem
necessary to assist and provide him with advice in the formulation of
policies, as well as designate as special advisers such Chiefs of
Mission who are on home assignment on specific areas of their
expertise.

CHAPTER 3
DEPARTMENT SERVICES

Section 10. Office of the Legal Adviser. - The Office of the Legal
Adviser shall be headed by a Legal Adviser, who shall be a career
Chief of Mission. However, the Legal Adviser may be appointed by
the President, upon the recommendation of the Secretary, from
outside the career service, in which case he shall have the
assimilated rank of a Chief of Mission. His term shall be co-terminus
with the tenure of the Secretary, unless sooner terminated, and he is
not eligible for foreign assignment. The Legal Adviser shall provide
legal advice and services to the Department.

Section 11. Office of Coordination and Policy Planning. - The Office of

Coordination and Policy Planning shall be headed by the Chief
Coordinator. The Office of Coordination and Policy Planning shall
initiate, coordinate and integrate the planning of foreign policy. It shall
provide staff support to the Office of Secretary and perform
coordinating and such other functions as may be prescribed by the
Secretary.

Section 12. Office of Data Banking and Communication. - The Office

of Data Banking and Communication shall establish and maintain a
modern data and communication center in the Department. The
Office shall:

(1) Assist the Secretary on all matters regarding data banking and
information retrieval;

(2) Establish, develop and maintain a computerized foreign-relations

data bank for the Department;

(3) Establish, develop and maintain both domestic and foreign service
communications systems, including efficient flow systems for all
correspondence between and among all Department units;

(4) Establish, develop and maintain the records system of the entire
Department;

(5) Provide technical assistance to any service, office, or attached

agency of the Department, on matters within its competence; and

(6) Perform such other functions as may be assigned by the

Secretary.

Section 13. Office of Protocol, State and Official Visits. - The Office of
Protocol, State and Official Visits shall coordinate preparations for
state visits, the reception of Chiefs of State, heads of Government,
the highest foreign dignitaries visiting the Philippines, as well as
official visits of Philippine officials abroad, as may be determined by
the President. It shall also be responsible for handling all activities of
the Department concerning protocol, ceremonials and socials, the
proper observance and enforcement of formalities, courtesies,
facilities, immunities and privileges under the Vienna Convention on
Diplomatic Relations and the Vienna Convention on Consular
Relations, and other applicable conventions and agreements.

Section 14. Office of Intelligence and Security. - The Office of

Intelligence and Security shall adopt a system of information
gathering and analysis, act as liaison with the intelligence community,
and provide security services in the Department. It shall also
undertake the enforcement and monitoring of security procedures in
the Department and Foreign Service establishments.
CHAPTER 4
BOARD OF FOREIGN SERVICE ADMINISTRATION

Section 15. Composition. - The Board of Foreign Service

Administration shall be composed of nine (9) members: one (1)
Undersecretary as Chairman; the other Undersecretary as Vice-
Chairman; the six (6) Assistant Secretaries and the Legal Adviser, as
members.

Section 16. Functions. - The Board shall be responsible for

considering and recommending policies for the efficient and
economical discharge of the administrative operations of the
Department and the Foreign Service. It shall also consider and
submit recommendation on policy and other matters concerning
personnel, including the appointment, promotion and assignment of
Foreign Service Staff Officers and Employees, as well as recommend
to the President through the Secretary the appointment and
promotion of Foreign Service Officers, Counselors and Chiefs of
Mission. It shall also act and submit recommendations on
administrative cases involving personnel of the Department and the
Foreign Service.

CHAPTER 5
BOARD OF FOREIGN SERVICE EXAMINERS

Section 17. Composition. - The Board of Foreign Service Examiners

shall be composed of one (1) Undersecretary as Chairman; and the
Assistant Secretary for Personnel and Administrative Services and a
Commissioner of the Civil Service Commission as members. The
Board shall be under the administrative supervision of such
Undersecretary.

Section 18. Functions. - The Board shall be responsible for planning

and administering the Foreign Service Officers Examinations and the
Foreign Service Staff Officers and Foreign Service Staff Employees
Examinations.

CHAPTER 6
ATTACHED AGENCIES
Section 19. Attached Agencies. - The Law of the Sea Secretariat, the
Inter-Agency Technical Committee on Economic, Scientific and
Technical Cooperation with Socialist Countries (SOCCOM), the Inter-
Agency Technical Committee on Technical Cooperation Among
Developing Countries (IATC-TCDC), the Permanent Inter-Agency
Technical Committee on ESCAP Matters (PITCEM), and other
agencies attached to the Department shall continue to operate and
function in accordance with their respective charters or laws creating
them, except as otherwise provided in this Code.

CHAPTER 7
THE FOREIGN SERVICE

Section 20. Functions of Diplomatic Missions. - The Diplomatic

Missions shall:

(1) Represent the Philippines abroad and promote friendly relations

with other countries in all fields;

(2) Protect national interests and the interests of Filipino nationals

abroad;

(3) Ascertain and evaluate conditions and developments abroad and

report thereon to the Department Head;

(4) Serve as channels of communication between the Government of

the Philippines and foreign governments; and

(5) Perform such other functions provided by law.

Section 21. Functions of Consular Establishments. - The consular

establishments shall:

(1) Protect national interests abroad and promote foreign relations in

all fields, particularly in the economic and trade areas;

(2) Ascertain and evaluate conditions and developments abroad in

the commercial, economic, cultural and scientific fields and report
thereon to the Department Head;
(3) Issue passports and travel documents to Filipino nationals, and
visas or appropriate documents to foreign nationals desiring to travel
to the Philippines;

(4) Protect the interests of Filipino nationals abroad, provide

necessary services and assistance, and perform notarial functions
allowed by regulations;

(5) Transmit judicial and extra-judicial documents and execute letters

rogatory or commissions to receive evidence abroad for Philippine
courts;

(6) Supervise and inspect in accordance with laws and regulations of

the Philippines, vessels and aircrafts and their crews; and

1.Perform such other functions as may be provided by law.

CHAPTER 8
ATTACHES AND REPRESENTATIVES

Section 22. Attaches of the Department. - The Department Head shall

designate attaches of the Department from the ranks of Foreign
Service Officers and Foreign Service Staff Officers.

Section 23. Attaches of Other Departments. - The assignment abroad

of personnel in any Department, Bureau or office of the Philippine
government as attaches or representatives shall have the prior
clearance of the Secretary of Foreign Affairs. The clearance shall
include such matters as the actual need for opening particular types
of attache services, and the specific places where these services will
be made available.

Section 24. Appointment and Accreditation of Attaches. -

(1) The authority to appoint attaches shall be vested in the Head of

the Department or agency maintaining the attache service, who shall
consult with the Secretary of Foreign Affairs on such appointments.
(2) A Department or agency shall have only one attache accredited to
it by the receiving government, except military attaches.

(3) The designation of attaches shall apply only to those serving in

diplomatic missions. Those assigned to consular establishments shall
be designated as representatives.

Except in extraordinary cases, each foreign service establishment

shall have only military, labor, revenue, tourism, information and
commercial attaches.

In the event of the actual need for more than one attache, as
determined by the department or agency in consultation with the
Department of Foreign Affairs, the succeeding attache shall be
accredited as assistant attache.

Section 25. Relationships Between the Chief of Mission and Attaches.

- The Chief of Mission shall be responsible for the conduct of affairs
of government at the diplomatic posts. All attaches and
representatives of other departments, shall during their tour of duty,
be under the immediate control and administrative supervision of the
Chief of Mission where they are assigned. They shall be required to
submit their reports to their agencies through the Chief of Mission and
the Department of Foreign Affairs, except when national security
requires otherwise. They shall clear with the Chief of Mission all their
public pronouncements at the diplomatic post, and all the documents
and materials they send shall be transmitted through the diplomatic
pouch.

The supremacy of the Chief of Mission for the conduct of foreign

relations at the post is established. The Chief of Mission shall have
the authority to discipline attaches within his Mission, including the
authority to have them recalled, if necessary.

Section 26. Assimilated Ranks. -

(1) Except as the President may appoint, no officer of the Philippine

government stationed abroad, outside the Department of Foreign
Affairs, shall be assigned assimilated ranks higher than Foreign
Service Officer Class I.
(2) The assignment of assimilated rank personnel of the Philippine
government stationed abroad shall remain with the President who
shall act on the basis of recommendations of the Department of
Foreign Affairs and the Department of Budget and Management.

(3) The assimilated ranks are for purposes of compensation only and
shall not confer diplomatic rank for purposes of protocol. Civil
attaches shall always rank after the lowest ranking Foreign Service
officer in the post.

Section 27. Relationship Between the Consul-General or the Principal

Officer at the Consulate and the Representative. - The relationship of
the Consul-General or the Principal Officer at the post and the
Representatives assigned to the said post shall be the same as the
relationship between the Chief of Mission and the attaches.

Section 28. Uniform Rules for Attache Services. - A uniform set of

rules and regulations shall govern attache and representative
services. This shall be drafted by an Inter-Department Committee to
be composed of the Undersecretary of Foreign Affairs as Chairman,
and the Undersecretaries, or equivalent officials, of the Departments
or agencies with attaches or representatives abroad, as members.

CHAPTER 9
PERSONNEL

Section 29. Policy. - To enable the Foreign Service to effectively

serve abroad the interests of the Republic of the Philippines, it shall
be the policy of the Department that only persons who are competent,
of good moral character, and fully informed of the Philippine History
and current trends in Filipino life shall be appointed to the service.

Section 30. Categories of Officers and Employees. - The Service shall

consist of the following categories of officers and employees:

(1) Chiefs of Missions

(2) Counsellors
(3) Foreign Service Officers

(4) Foreign Service Staff Officers

(5) Foreign Service Staff Employees

(6) Honorary Consuls

(7) Alien Employees

Section 31. Foreign Service Officers. - There shall be a career service

composed of foreign service officers. The Service shall consist of six
classes of Foreign Service Officers including Chiefs of Missions and
Counsellors.

(1) A Chief of Mission may be assigned as Ambassador Extraordinary

and Plenipotentiary, Head of an Office in the Department, or Deputy
Chief of Mission.

(2) A Counsellor may be assigned as Executive Officer of an Office in

the Department, Counsellor in an Embassy, or Head of a Consular
Post.

(3) The assignments of the other classes of Foreign Service Officers

shall be as follows:

Home Office Service

Diplomatic Service

Consular

Class I

-Chief of Division First Secretary

Consul
Class II

-Chief of Division Secondary Secretary

Consul

Class III

-Chief of Division Third Secretary

Consul

Class IV

-Asst. Chief of Division Third Secretary

Vice-Consul

(4) In the home office, assignment to a position requiring a rank

higher than the actual rank of the Foreign Service Officer shall be in
an acting capacity.

(5) A Foreign Service Officer in any class may be designated as a

special assistant to the Secretary or to an Undersecretary. A Foreign
Service Officer below the rank of Class I may be designated as
Principal Assistant to a Head of Office.

Section 32. Foreign Service Staff Officers. - There shall be three

classes of Foreign Service Staff Employees to provide the
administrative and technical services.

Section 33. Foreign Service Staff Employees. - There shall be three

classes of Foreign Service Staff Employees to provide the clerical,
custodial, messengerial and similar services.
Section 34. Honorary Consuls. - Honorary consuls shall be appointed
from among qualified private persons to perform certain consular
functions on a non-career basis.

CHAPTER 10
APPOINTMENTS, COMPENSATION AND BENEFITS

Section 35. Foreign Service Officers. -

(1) Foreign Service Officers shall be appointed by the President.

(2) No person shall be eligible for appointment as Foreign Service

Officers unless he has passed the competitive examinations given by
the Board of Foreign Service Examiners and successfully completed
his probationary service.

(3) The Secretary shall, upon the recommendation of the Board of

Foreign Service, submit to the President names of eligibles for
appointment as Foreign Service Officers. The initial appointment of
Foreign Service Officers shall only be to Foreign Service Officers
Class IV minimum.

Section 36. Staff Officers and Employees. - The Secretary shall

appoint, in accordance with the Civil Service Law, all Foreign Service
Officers and Foreign Service Staff Employees who must be in the
Philippines at the time of their original or initial appointment.

Section 37. Alien Employees. - The Secretary shall, upon the

recommendation of the head of diplomatic or consular establishment
and as much as possible in accordance with the Civil Service Law,
appoint alien employees who shall be recruited at the post to
supplement the regular staff of a foreign service establishment.

Section 38. Compensation and Benefits. - The salaries, allowances,

travel expenses, insurance and other benefits of Foreign Service
Officers, and Employees shall be as provided by law and regulations.

CHAPTER 11
PROMOTIONS
Section 39. Merit Promotion System. - The Board of the Foreign
Service shall establish a merit promotion system for all officers and
employees of the Department.

Section 40. Requirements for Promotion in the Career Service. -

(1) For promotion to Chief of Mission Class I, the candidate must

have served as a Chief of Mission Class II and rendered continuous
service as Foreign Service Officer for at least twelve (12) years;

(2) For promotion to Chief of Mission Class II, the candidate must
have served as a Foreign Service Officer Class I and rendered
continuous service as Foreign Service Officer for at least ten years;

(3) For promotion to Foreign Service Officer Class I, the candidate

must have served as a Foreign Service Officer Class II, and rendered
continuous service as Foreign Service Officer for at least eight years;

(4) For promotion to Foreign Service Officer Class II, the candidate
must have served as Foreign Service Officer Class III, and rendered
continuous service as Foreign Service Officer for at least six years;

(5) For promotion to Foreign Service Officer Class III, the candidate
must have rendered continuous service as a Foreign Service Officer
Class IV for at least two years.

Section 41. Promotion of Foreign Service Officers. -

(1) Promotions of Foreign Service Officers from one class to the next
higher class shall be made by the President upon the
recommendation of the Secretary. All promotions shall be to the
lowest grade of the class.

(2) Promotion in grade within the class shall be made by the

Secretary upon the recommendation of the Board of Foreign Service
Administration.

Section 42. Promotion of Foreign Service Staff Officers, Foreign

Service Staff Employees and Alien Employees. - Promotions of
foreign service staff officers and employees and alien employees
shall be made by the Secretary, upon recommendation of the Board
of the Foreign Service Administration in accordance with the
promotion system.

CHAPTER 12
ASSIGNMENTS AND TRANSFERS

Section 43. Rotation Plan. - The secretary shall establish a system of

assignments and transfers to ensure that all qualified officers and
employees, except the employees in the non-career service, shall
serve in diplomatic and consular establishments in different regions of
the world. The assignment and transfer of personnel shall follow a
regular rotation plan. For purposes of assignments, the home office
shall be considered a post. All personnel shall be available for
assignment to any post.

Section 44. Initial Home Office Requirement. - No Foreign Service

Officer, Staff Officer or Employee shall be assigned to any foreign
service establishment unless he has rendered continuous and
satisfactory service in the home office for at least three (3) years.

Section 45. Tour of Duty. -

(1) The tour of duty of a Foreign Service Officer at any post shall be
four (4) years commencing on the date of his arrival at the post, after
which he shall be transferred to another post;

(2) The tour of duty of a Foreign Service Staff Officer or Employee at

any post shall be for a period of six (6) years commencing on the
date of his arrival at the post, after which he shall be transferred to
another post;

(3) No Foreign Service Officer, Staff Officer or Employee shall serve

more than two (2) consecutive tours of duty abroad;

(4) No Foreign Service Officer may serve more than four (4)
consecutive years in the home office, except when designated as
Secretary or Undersecretary.

Section 46. Retirement. -

(1) Any Foreign Service Officer, Staff Officer or Employee who has
reached the age of sixty-five (65) shall be compulsorily retired from
the services unless his service is extended by the President in the
interest of the service. Alien employees shall be allowed to retire from
the service at the same age as that provided for employees of the
governments of their respective countries, provided that retirement
age shall not be beyond sixty-five (65) years.

(2) Foreign Service Officers reinstated to the service after retirement

and who are assigned abroad as ambassadors or chief of mission,
and persons who are appointed as ambassadors without previously
serving as Career Foreign Service Officers shall be considered
automatically separated from the Foreign Service upon termination of
their assignment abroad as ambassadors or chief of missions.

Section 47. Resignation. - The Secretary shall have authority to

accept the resignation of any Foreign Service Officer, Staff
Employee, Honorary Consul and Alien Employee.

CHAPTER 13
PASSPORT

Section 48. Definition. - A Philippine passport is an official document

of identity of Philippine citizenship of the holder issued for travel
purposes.

Section 49. Persons Entitled. - Only citizens of the Philippines may be

issued passports. A minor may, upon his own application, be issued a
passport, except when his natural or legal guardian requests that the
application be denied.

Section 50. Authority to Issue, Restrict, Withdraw or Cancel. - The

Secretary shall have authority to withhold the issuance or order the
cancellation or restriction of passports upon lawful order of the court
or when he deems it necessary in the interest of national security,
public safety or public health, or in cases when a passport was
secured through misrepresentation or fraud.
Section 51. Period of Validity, Extension and Renewal. - The original
period of validity of a Philippine passport is two (2) years. It may be
extended for another two (2) years provided that the application for
extension is made before the expiration of four (4) years from the
date of original issue of the passport. However, the validity of a
passport may be limited for a certain period or for a definite purpose.

Section 52. Supplementary Regulation. - The Secretary may

prescribe supplementary regulations for the issuance, extension or
amendment of all kinds of passports.

Section 53. Amendments. - Upon application, an unexpired passport

may be amended to reflect the new civil status or new name or
surname of the holder, or to add more pages, or to modify a condition
or restriction therein.

Section 54. Fees. - The Secretary shall prescribe uniform fees for the
issuance, extension and amendment of passports, and such other
services that may be rendered by the Department relating to
passports. However, no fee shall be collected for the issuance of
passports to government officials proceeding abroad in the discharge
of their official duties attested by regular travel orders or for those
issued to immediate members of their families on official travel.

CHAPTER 14
MISCELLANEOUS PROVISIONS

Section 55. Use of Savings. - The Secretary is authorized to use any

savings in the appropriations for the Department for the payment of:
(a) expenses for the evacuation or repatriation to the Philippines,
when necessary due to an emergency, of members of the household
of the personnel of any diplomatic or consular establishment as well
as the transportation of their personal effects; (b) actual return
passage by the most direct and economical means of transportation
and the cost of shipment of the household effects to Manila of any
officer or employee in the Foreign Service, including the immediate
dependent members of his family, who resigns or is separated from
the service for cause; (c) the cost of preparing and transporting the
remains of an officer or employee who is a citizen of the Philippines
and the immediate members of his family who may die abroad or
while in travel status; or (d) contingent and unforeseen expenses that
may arise in connection with the operation of the Foreign Service.

Section 56. Pool of Foreign Service Officers. - In all appropriation acts

providing funds for the operation and maintenance of the Department,
the positions of Foreign Service Officers, including those who may
serve in the home office, shall be in a pool grouped according to their
classes with their salaries and allowances indicated in one lump sum
for each class, leaving to the head of office the discretion to assign or
commission those officers whenever their services may be utilized to
advantage, subject to the limitations provided by law.

Title II

FINANCE

CHAPTER 1
GENERAL PROVISIONS

Section 1. Declaration of Policy. - It is the policy of the State that the

Department of Finance shall be primarily responsible for the sound
and efficient management of the financial resources of the
Government, its subdivisions, agencies and instrumentalities.

Section 2. Mandate. - The Department shall be responsible for the

formulation, institutionalization and administration of fiscal policies in
coordination with other concerned subdivisions, agencies and
instrumentalities of government.

Moreover, the Department shall be responsible for the generation and

management of the financial resources of the government, ensuring
that said resources are generated and managed judiciously and in a
manner supportive of development objectives.

The Department shall be responsible for the supervision of the

revenue operations of all local government units, with the objective of
making these entities less dependent on funding from the national
government.
Finally, the Department shall be responsible for the review, approval
and management of all public sector debt, whether foreign or
domestic, with the end in view of ensuring that all borrowed funds are
effectively utilized and all such obligations are promptly serviced by
the government.

Section 3. Powers and Functions. - To accomplish its goals, the

Department shall:

(1) Formulate long-range, medium-term and annual plans covering

the government's resources mobilization efforts, in coordination with
other concerned government agencies, and involving all public sector
resources whether generated by revenues and operations, foreign
and domestic borrowing, sale or privatization of corporations or
assets, or from other sources, and supervise the implementation of
such plans;

(2) Formulate, institutionalize and administer fiscal and tax policies;

(3) Supervise, direct and control the collection of government

revenues;

(4) Act as custodian and manage all financial resources of the

national government;

(5) Undertake and supervise activities related to the negotiation,

servicing and restructuring of domestic and foreign debt incurred or
guaranteed by the government and its instrumentalities, including
taking part in activities which affect the country's capacity to service
foreign debt;

(6) Review and coordinate the policies, plans and programs of

government financial institutions and, thereafter, recommend to them
courses of action consistent with national government fiscal policies,
plans and programs;

(7) Ensure the implementation of necessary policies and measures

on local revenue administration;
(8) Coordinate with other government agencies on matters
concerning fiscal and monetary policies, credit, economic
development, international finance, trade and investment; and

(9) Perform such other powers and functions as may be provided by

law.

Section 4. Organizational Structure. - The Department shall consist

of the Department proper comprising the Office of the Secretary, the
Offices of the Undersecretary and Assistant Secretaries, the
Economic Intelligence and Investigation Bureau, the Service, the
Operations Groups and their constituent units, and the Regional
Offices.

CHAPTER 2
DEPARTMENT PROPER

Section 5. Office of the Secretary. - The Office of the Secretary shall

consist of the Secretary, his Undersecretary and their immediate
staffs.

Section 6. Undersecretaries. - The Secretary shall be assisted by

five (5) Undersecretaries appointed by the President upon the
recommendation of the Secretary, each of whom shall head,
respectively, the Policy Development and Management Services
Group mentioned in Section 8 hereof and the four (4) Operations
Groups mentioned in Section 9 hereof.

Section 7. Assistant Secretaries. - The Secretary shall also be

assisted by five (5) Assistant Secretaries appointed by the President
upon the recommendation of the Secretary. The respective
assignments of the Assistant Secretaries and the reporting
procedures to be followed by them shall be determined by the
Secretary.

CHAPTER 3
DEPARTMENT SERVICES
Section 8. Policy Development and Management Services Group. -
The Policy Development and Management Services Group, which
shall be headed by an Undersecretary, shall consist of the following:

(1) Planning and Policy Research Office;

(2) Central Management Information Office;

(3) Central Administration Office;

(4) Central Financial Management Office;

(5) Public Information and Assistance Office;

(6) Legal Office; and

(7) Regional Coordination Office.

Section 9. Planning and Policy Research Office. - The Planning and

Policy Research Office shall have the following functions:

(1) Formulate long-range and annual projections of revenue needs,

cash position and borrowing capacity of the Government as basis for
policy decisions of the department;

(2) Supervise policy research and development on fiscal and tax

measures undertaken by the operating bureaus and offices of the
department;

(3) Coordinate with other government agencies on policy research

and its impact on fiscal and tax measures; and

(4) Perform such other functions as may be assigned by the

Secretary or his undersecretaries.

Section 10. Central Management Information Office. - The Central

Management Information Office shall have the following functions:
(1) Establish a Management Information System and sub-systems for
monitoring and evaluation of department-wide programs and projects,
including those that are executed by operating Bureaus and Offices;

(2) Formulate policies, plans and procedures for data control and
systems management;

(3) Act as the central repository of existing and future computer files;
and

(4) Perform such other appropriate functions as may be assigned by

the Secretary or his undersecretaries.

Section 11. Central Administration Office. - The Central

Administration Office shall have the following functions:

(1) Supervise Department-wide services relating to internal cash

management, personnel administration, property and supplies
procurement, and custody; and maintenance of central files, and
corresponding reporting systems;

(2) Assist in the formulation of policies and guidelines on the

management of human and physical resources and general
housekeeping activities for uniformity and standardization;

(3) Serve as a center for the establishment and periodic evaluation of

management operation systems, internal control and work outputs to
determine Department-wide performance efficiency;

(4) Design and develop training policies and guidelines, administer

and evaluate training programs and in coordination with external
training institutions, screen and recommend to the Secretary the
participation of Department personnel in training programs, seminars
and conferences in the country or abroad;

(5) Ensure that Department-wide activities and efforts are focused

towards a central direction as embodied in the national socio-
economic development plans; and
(6) Perform such other appropriate functions as may be assigned by
the Department or his Undersecretaries.

Section 12. Central Financial Management Office. - The Central

Financial Management Office shall have the following functions:

(1) Supervise Department-wide activities relating to budget

preparation and management, department accounting, and internal
audit;

(2) Perform such other appropriate functions as may be assigned by

the Department or his Secretary or his Undersecretaries.

Section 13. Public Information and Assistance Office. - The Public

Information and Assistance Office shall have the following functions:

(1) Provide policy direction and guidance to the operating Bureaus

and Offices of the Department for the proper dissemination of
appropriate information or Department- wide programs, operations
and activities;

(2) Provide the operating Bureaus and Offices with the general
framework for rendering direct assistance to the general public;

(3) Receive complaints and grievances from the general public;

prepare referrals to concerned Bureaus and Offices and monitor
responses or actions taken; and

(4) Perform such other appropriate functions as may be assigned by

the Secretary or Undersecretary for Policy Development and
Management Service.

Section 14. Legal Office. - The Legal Office shall have the following
functions:

(1) Prepare draft opinions or rulings for the signature of the

Department Secretary or his Undersecretaries on matters elevated to
it by the Bureaus and Offices of the Department;
(2) Conduct legal researches on all matters referred to it by the
Secretary or his Undersecretaries; and

(3) Perform such other appropriate functions as may be assigned by

the Secretary or his Undersecretaries.

Section 15. Regional Coordination Office. - The function of the

Regional Coordination Office is to coordinate the operations of the
Regional Offices.

CHAPTER 4
BUREAUS

Section 16. Operations Groups. - The Operation Groups, each of

which shall be headed by an Undersecretary, shall consist of the
following:

(1) Revenue Operations Group, composed of the following:

(a) Bureau of Internal Revenue;

(b) Bureau of Customs;

(c) Revenue Service;

(d) Legal Service;

(2) Domestic Operations Group, composed of the following:

(a) Bureau of Treasury;

(b) Bureau of Local Government Finance;

(c) Financial and Fiscal Policy and Planning Office;

(3) International Finance Group, composed of the following:

(a) International Finance Policy Office;

(b) International Finance Operations Office.

Section 17. Economic Intelligence and Investigation Bureau. - The
Economic Intelligence and Investigation Bureau, which shall be
headed by and subject to the supervision and control of the
Commissioner, who shall in turn be appointed by the President upon
the recommendation of the Secretary, shall have the following
functions:

(1) Receive, gather and evaluate intelligence reports and information

and evidence on the nature, modes and extent of illegal activities
affecting the national economy, such as, but not limited to, economic
sabotage, smuggling, tax evasion, and dollar-salting, to investigate
the same and aid in the prosecution of cases;

(2) Coordinate with external domestic or foreign agencies in

monitoring the financial and economic activities of persons or entities,
which may adversely affect national financial interest with the goal of
regulating, controlling or preventing said activities;

(3) Provide all intelligence units of operating Bureaus or Offices under

the Department with the general framework and guidelines for the
proper conduct of intelligence and investigation work;

(4) Supervise, monitor and coordinate all the intelligence and

investigation operations of the operating Bureaus and Offices under
the Department;

(5) Investigate, hear and file, upon clearance by the Secretary, anti-
graft and corruption cases against personnel of the Department and
its constituent units; and

(6) Perform such other appropriate functions as may be assigned by

the Secretary or his Undersecretaries.

Section 18. The Bureau of Internal Revenue.* - The Bureau of

Internal Revenue, which shall be headed by and subject to the
supervision and control of the Commissioner of Internal Revenue who
shall be appointed by the President upon the recommendation of the
Secretary shall have the following functions:
(1) Assess and collect all taxes, fees and charges and account for all
revenues collected;

(2) Exercise duly delegated police powers for the proper performance
of its functions and duties;

(3) Prevent and prosecute tax evasions and all other illegal economic
activities;

(4) Exercise supervision and control over its constituent and

subordinate units; and

(5) Perform such other functions as may be provided by law.

The Commissioner of Internal Revenue, with the approval of the

Secretary of Finance, shall draft and prepare the necessary rules and
regulation as may be needed to delineate the authority and
responsibility of the various groups and services of the Bureau.

Section 19. Deputy Commissioners. - The Commissioner shall be

assisted by two (2) Deputy Commissioners. Each Deputy
Commissioner shall supervise one (1) of the groups defined in Sec.
20 below, to be assigned by the Commissioner.

Section 20. Composition of the Bureau of Internal Revenue. - The

Bureau of Internal Revenue shall be composed of the following:

(1) Assessment and Collection Group, headed and supervised by a

Deputy Commissioner and composed of the following services, each
of which shall be headed by a Revenue Chief;

(2) Legal and Internal Administration Group, headed and supervised

by a Deputy Commissioner and composed of the following services,
each of which shall be headed by a Service Chief.

Section 21. Appointment by the President. - The aforementioned

Undersecretaries shall be appointed by the President upon
recommendation of the Secretary.
Section 22. Management and Technical Staff . - The Commissioner
and the two (2) Deputy Commissioners shall each have a
Management and Technical Staff to render technical and secretarial
support services.

Section 23. Bureau of Customs. - The Bureau of Customs which shall

be headed and subject to the management and control of the
Commissioner of Customs, who shall be appointed by the President
upon the recommendation of the Secretary and hereinafter referred to
as Commissioner, shall have the following functions:

(1) Collect customs duties, taxes and the corresponding fees,

charges and penalties;

(2) Account for all customs revenues collected;

(3) Exercise police authority for the enforcement of tariff and customs
laws;

(4) Prevent and suppress smuggling, pilferage and all other economic
frauds within all ports of entry;

(5) Supervise and control exports, imports, foreign mails, and the
clearance of vessels and aircrafts in all ports of entry;

(6) Administer all legal requirements that are appropriate ;

(7) Prevent and prosecute smuggling and other illegal activities in all
ports under its jurisdiction;

(8) Exercise supervision and control over its constituent units;

(9) Perform such other functions as may be provided by law.

Section 24. Composition. - The Bureau of Customs shall be

composed of the following:

(1) Customs Revenue Collection Monitoring Group, headed and

supervised by a Deputy Commissioner and composed of Legal,
Financial and Collection Services, each of which shall be headed by
a service chief;

(2) Customs Assessment and Operations Coordinating Group,

headed and supervised by a Deputy Commissioner and composed of
the Imports and Assessment and Ports Operations Services, each of
which shall be headed by a Service Chief; and

(3) Intelligence and Enforcement Group, headed and supervised by a

Deputy Commissioner and composed of the Intelligence and
Investigation Service and the Enforcement and Security Service.

Section 25. Appointment by President. - The aforementioned Deputy

and Assistant Commissioners shall be appointed by the President
upon the recommendation of the Commissioner of Customs in
keeping with the intent of Executive Order No. 9.

Section 26. Definition of Functions. -

(1) Customs Revenue Collection Monitoring Group. The Customs

Revenue Collection Monitoring Group shall have the following
functions:

(a) Maintain an updated accounting for all Customs revenues

collected;

(b) Administer legal requirements of the Bureau of Customs to

include litigation and prosecution of cases;

(c) Provide the Commissioner of Customs with accurate and timely

information and analysis of collection statistics;

(d) Conduct continuing audit of liquidated entries and outstanding

bonds; and

(e) Perform such other appropriate functions consistent with the

assigned tasks of the group and others which may be given by the
Commissioner;
(2) Customs Assessment and Operations Coordinating Group. The
Customs Assessment and Operations Coordinating Group shall have
the following functions:

(a) Regularly gather and upon approval of the Commissioner, publish

values of commodities imported into the Philippines, such values
being the bases for the computation of customs duties and other
revenues;

(b) Monitor for decision-making purposes the implementation of rules

and regulations governing assessment, warehousing and support
operations;

(c) Monitor auction and disposal activities together with port/airport

operations related activities for decision-making purposes; and

(d) Perform other appropriate functions consistent with the assigned

tasks of the Group which may be given by the Commissioner.

(3) Intelligence and Enforcement Group. The Intelligence and

Enforcement Group shall have the following functions:

(a) Regularly and consistently gather intelligence information related

to customs and economic activities for proper dissemination to the
Customs offices concerned;

(b) Conduct internal inquiry and investigation which may serve as the
basis for prosecution;

(c) Exercise police authority conferred by the Tariff and Customs

Code or other laws which include the enforcement of seizures and
forfeitures and the imposition of penalties and fines; and

(d) Perform such other appropriate functions consistent with the

assigned tasks of the Group and others which may be given by the
Commissioner.

Section 27. The Collection Districts. -

(1) The Bureau shall have thirteen (13) Collection Districts under the
direct control and supervision of the Commissioner. Each Collection
District shall have as many subports as necessary to maximize
revenue collection and the prevention of smuggling and fraud against
customs. Each Collection District shall be headed and supervised by
a District Collector while each subport will be headed by a Port
Collector. The Collectors shall have the following functions:

(a) Collect duties, taxes, fees, charges, penalties and fines accruing
to the Government under the Tariff and Customs Code and related
laws;

(b) Exercise police powers conferred to him/her by the Tariff and

Customs Code or other laws which include the enforcement of
penalties and fines;

(c) Examine goods, assess duties, fees, charges, penalties and fines
accruing to the Government under the Tariff and Customs Code and
other related laws;

(d) Supervise the entrance and clearance of vessels and aircrafts

engaged in foreign commerce;

(e) Supervise and control handling of foreign mails arriving in the

Philippines; and

(f) Supervise all import and export cargoes landed and/or stored in
piers, airports, terminal facilities, yards and freight stations;

(2) Perform such other appropriate functions consistent with the

assigned task of the District/Port Collectors and those which may be
given by the Commissioner.

Section 28. Management and Technical Staff . - The Commissioner

and three (3) Deputy Commissioners, and the Assistant
Commissioner shall each have a Management and Technical Staff,
which shall be limited to a specific number of personnel as
determined by the Secretary, to render technical and secretarial
support services.
Section 29. Bureau of Treasury. - The Bureau of Treasury, which
shall be headed by and subject to the supervision and control of the
National Treasurer who shall be appointed by the President upon the
recommendation of the Secretary, shall have the following functions:

(1) Act as the principal custodian of all national government funds;

(2) Assist in the formulation of, and execute, policies on financial

management, public borrowings and capital market development;

(3) Formulate, in coordination with government agencies concerned,

annual projections of revenue needs, cash position and borrowing
capacity of the government;

(4) Maintain accounts of the financial transactions of all national

secretaries, bureaus, agencies and instrumentalities;

(5) Manage the cash resources of the Government and perform

banking functions in relation to receipts and disbursements of
national funds;

(6) Manage, control and service public debts from domestic or foreign
sources;

(7) Exercise line supervision over its Regional Offices/field units

within Department Regional Administrative Coordination Offices; and

(8) Perform such other appropriate functions as may be assigned by

the Secretary or Undersecretary for Domestic Operations.

Section 30. Composition. - The Bureau of Treasury shall be

composed of the following:

(1) Internal Affairs Sub-Sector under the direct supervision and

control of an Assistant National Treasurer and composed of the
following:

(a) Administrative Service;

(b) Financial and Management Service;

(c) Management Information and Data Systems Service;

(d) Planning and Policy Research Division;

(e) Public Information and Assistance Division; and

(f) Legal Division.

(2) National Government Affairs Sub-Sector under the direct

supervision and control of an Assistant National Treasurer and
composed of the following:

(a) Public Debt Management Service;

(b) Debt Clearing Service;

(c) National Cash Accounts Service;

(d) Treasury Banking Service;

(e) Operations Planning Service;

(f) Regional Offices which shall have under their supervision all
provincial offices and shall be under the direct control and supervision
of the National Treasurer.

Section 31. Assistance to National Treasurer. - The National

Treasurer shall be directly assisted by the:

(1) Management and Technical Staff, which shall perform the

functions of rendering technical and secretarial support services;

(2) Intelligence and Investigation Office, which shall perform the

following functions:

(a) Monitor, gather and evaluate reports on financial and economic

activities of persons or entities, foreign and domestic, which may
adversely affect national financial interests;
(b) Perform such other appropriate functions as may be assigned by
the National Treasurer.

Section 32. Appointment by the President. - The aforementioned two

(2) Assistant National Treasurers shall be appointed by the President
upon the recommendation of the Secretary. lawphi1.net

Section 33. Bureau of Local Government Finance. - The Bureau of

Local Government Finance, which shall be headed by and subject to
the supervision and control of an Executive Director who shall be
appointed by the President and upon the recommendation of the
Secretary, shall have the following functions:

(1) Assist in the formulation and implementation of policies on local

government revenue administration and fund management;

(2) Exercise administrative and technical supervision and

coordination over the treasury and assessment operations of local
governments;

(3) Develop and promote plans and programs for the improvement of
resource management systems, collection enforcement mechanisms,
and credit utilization schemes at the local levels;

(4) Provide consultative services and technical assistance to the local

governments and the general public on local taxation, real property
assessment and other related matters;

(5) Exercise line supervision over its Regional Offices/field units

within the Department Regional Administrative Coordination Office
and the Local Treasury and Assessment Services; and

(6) Perform such other appropriate functions as may be assigned by

the Secretary or Undersecretary for Domestic Operations.

Section 34. Composition. - The Bureau of Local Government Finance

shall be composed of the following:

(1) Internal Administration Office;

(2) Policy Enforcement and Special Projects Group;

(3) Field Operations Examination Group

Section 35. Assistance to the Executive Director. - The Executive

Director shall be directly assisted by the:

(1) Management and Technical Staff, which shall perform the

functions of rendering technical and secretarial support services;

(2) Intelligence and Investigation Office, which shall perform the

following functions:

(a) Monitor, gather and evaluate reports on financial and economic

activities of persons or entities, foreign and domestic, which may
adversely affect national financial interests;

(b) Perform such other appropriate functions as may be assigned by

the Director.

Section 36. Financial and Fiscal Policy Planning. - The Financial and
Fiscal Policy and Planning Office, which shall be headed by a
Director who shall be appointed by the President upon the
recommendation of the Secretary, shall have the following functions:

(1) Coordinate, in consultation with the appropriate government

agencies, the formulation of integrated financial and fiscal plans of
the national Government and the local government, consistent with
the national development plan;

(2) Monitor and review the implementation of such financial and fiscal
plans in relation to recent developments in the economy;

(3) Coordinate with other government agencies involved in financial,

fiscal and economic planning and policy formulation;

(4) Undertake special studies and research projects on financial and

fiscal policies;
(5) Coordinate the formulation and assessment of Department
policies affecting domestic finance operations with the different
bureaus and offices of the Department; and

(6) Perform such other appropriate functions as may be assigned by

the Secretary, the Undersecretary for Domestic Operations or the
Assistant Secretary directly assisting the Undersecretary for
Domestic Operations.

Section 37. International Finance Policy Office. - The International

Finance Policy Office, headed by a Director who shall be appointed
by the President upon recommendation of the Secretary, shall have
the following functions:

(1) Monitor and analyze international monetary, financial and trade

developments and their implications for the Philippine economy and
evolve proposals for appropriate response to said events;

(2) Provide inputs into the formulation of fiscal, monetary, financial,

foreign trade and exchange rate policies as well as budgetary and
balance of payments programming in line with domestic economic
goals and the external financial and trade environment;

(3) Formulate and monitor a foreign financing program on the basis of

domestic requirements and trends in development assistance and
other capital flows;

(4) Interact with multilateral, regional and other international

organizations and formulate in coordination with appropriate agencies
Philippine positions on institutional and policy issues taken up in
these bodies;

(5) Coordinate with other appropriate secretaries and government

agencies in areas concerning international finance and foreign trade;
and

(6) Perform such other appropriate functions as may be assigned by

the Secretary or Undersecretary for International Finance.
Section 38. International Finance Operations Office. - The
International Finance Operations Office, headed by a Director, shall
have the following functions:

(1) Assist in the formulation of policies and guidelines for foreign

borrowings including provision of government guarantees, and
monitor compliance with these policies;

(2) Provide support work for international financial negotiations and

participate in such negotiations with multilateral financial institutions,
bilateral creditors and donors and commercial creditors. This includes
negotiations for new assistance (grants and loans) as well as for debt
rescheduling;

(3) Monitor implementation of projects funded by foreign assistance

and credits, utilization of such external resources and compliance
with commitments as well as debt repayment obligations;

(4) Assist in the structuring and conduct of international conferences

and meetings of the Department's officers (the term "officer" as used
in this Executive Order is intended to be within the meaning of the
term "official" as used in the Freedom Constitution) with foreign
dignitaries or organizations; and

(5) Perform such other appropriate functions as may be assigned by

the Secretary or Undersecretary for International Finance.

Section 39. Administrative Staff . - The Undersecretary for

International Finance shall be directly assisted by a Finance Attache
Division and Administrative Staff.

CHAPTER 5
REGIONAL OFFICES

Section 40. Regional Offices. - There shall be a Regional Office in

each region. Each Regional Office shall be headed by a Regional
Director.

A Regional Office shall have, within its administrative region, the

following functions:
(1) Implement laws, rules and regulations, policies, plans, programs
and projects of the Department;

(2) Provide efficient and effective services to the people;

(3) Coordinate with regional offices of other departments, offices and

agencies in the region;

(4) Coordinate with local government units; and

(5) Perform such other functions as may be provided by law.

Section 41. DOF-RACO. - For purposes of achieving maximum

utilization of resources, management coordination and administrative
integration at the regional levels, there is hereby created a
Department of Finance Regional Administrative Coordination Office
(DOF-RACO) in each of the administrative regions of the country, to
be headed by a Regional Executive Director who shall report directly
to the Undersecretary for Internal Administration. The Secretary shall
define the appropriate functions to be delegated to the DOF-RACO.

The Regional Offices of each operating Bureau under the

Department, however, shall remain under the technical supervision
and control of the head of the Bureau to which they belong. For
monitoring purposes, however, each Regional Office shall submit
operational reports to the DOF-RACO as required.

CHAPTER 6
ATTACHED AGENCIES

Section 42. Attached Agencies. - The following agencies are hereby

attached to the Department:

(1) Philippine Crop Insurance Corporation;

(2) Philippine Export and Foreign Loan Guarantee Corporation;

(3) Insurance Commission;

(4) National Tax Research Center;

(5) Central Board of Assessment Appeals; and

(6) Fiscal Incentives Review Board.

Section 43. Functions of the Attached Agencies. - The agencies

attached to the Department shall continue to operate and function in
accordance with the respective charters, laws, or orders creating
them, except as otherwise provided in this Code.

Title III

JUSTICE

CHAPTER 1
GENERAL PROVISIONS

Section 1. Declaration of Policy. - It is the declared policy of the

State to provide the government with a principal law agency which
shall be both its legal counsel and prosecution arm; administer the
criminal justice system in accordance with the accepted processes
thereof consisting in the investigation of the crimes, prosecution of
offenders and administration of the correctional system; implement
the laws on the admission and stay of aliens, citizenship, land titling
system, and settlement of land problems involving small landowners
and members of indigenous cultural minorities; and provide free legal
services to indigent members of the society.

Section 2. Mandate. - The Department shall carry out the policy

declared in the preceding section.

Section 3. Powers and Functions. - To accomplish its mandate, the

Department shall have the following powers and functions:

(1) Act as principal law agency of the government and as legal

counsel and representative thereof, whenever so required;

(2) Investigate the commission of crimes, prosecute offenders and

administer the probation and correction system;
(3) Extend free legal assistance/representation to indigents and poor
litigants in criminal cases and non-commercial civil disputes;

(4) Preserve the integrity of land titles through proper registration;

(5) Investigate and arbitrate untitled land disputes involving small

landowners and members of indigenous cultural communities;

(6) Provide immigration and naturalization regulatory services and

implement the laws governing citizenship and the admission and stay
of aliens;

(7) Provide legal services to the national government and its

functionaries, including government-owned or controlled corporations
and their subsidiaries; and

(8) Perform such other functions as may be provided by law.

Section 4. Organizational Structure. - The Department shall consist

of the following constituent units:

(1) Department proper;

(2) Office of the Government Corporate Counsel;

(3) National Bureau of Investigation;

(4) Public Attorney's Office;

(5) Board of Pardons and Parole;

(6) Parole and Probation Administration;

(7) Bureau of Corrections;

(8) Land Registration Authority;

(9) Commission on the Settlement of Land Problems.

CHAPTER 2
DEPARTMENT PROPER

Section 5. The Department Proper. - The Department Proper shall

be composed of the Office of the Secretary and the Undersecretaries,
Technical and Administrative Service, Financial Management
Service, Legal Staff and the Office of the Chief State Prosecutor.

Section 6. Undersecretaries. - The Secretary shall be assisted by

three (3) Undersecretaries. The Secretary is hereby authorized to
delineate and assign the respective functional areas of responsibility
of the Undersecretaries, provided, that such responsibility shall be
with respect to the mandate and objectives of the Department; and
provided, further, that no Undersecretary shall be assigned primarily
administrative responsibilities. Within his functional area of
responsibility, an Undersecretary shall have the following functions:

(1) Advise and assist the Secretary in the formulation and

implementation of the Department's policies, plans, programs and
projects;

(2) Oversee the operational activities of the Department;

(3) Coordinate the programs and projects of the Department for

efficient and effective administration;

(4) Serve as deputy for the Secretary;

(5) Perform, when so designated, the powers and functions of the

Secretary, during the latter's absence or incapacity; and

(6) Perform such other functions as may be provided by law or

assigned by the Secretary to promote efficiency and effectiveness in
the delivery of frontline services.

Section 7. Legal Staff . - The Legal Staff shall have the following
functions:

(1) Assist the Secretary in the performance of his duties as Attorney

General of the Philippines and as ex-officio legal adviser of
government-owned or controlled corporations or enterprises and their
subsidiaries;

(2) Prepare and finally act for and in behalf of the Secretary on all
queries and/or requests for legal advice or guidance coming from
private parties and minor officials and employees of the government;

(3) Maintain and supervise the operation of the Department Law

Library as well as its personnel; and

(4) Perform such other functions as are now or may hereafter be

provided by law or assigned by the Secretary.

Section 8. Office of the Chief State Prosecutor. - The Office of the

Chief State Prosecutor shall have the following functions:

(1) Assist the Secretary in the performance of powers and functions

of the Department relative to its role as the prosecution arm of the
government;

(2) Implement the provisions of laws, executive orders and rules, and
carry out the policies, plans, programs and projects of the
Department relative to the investigation and prosecution of criminal
cases;

(3) Assist the Secretary in exercising supervision and control over the
National Prosecution Service as constituted under P. D. No. 1275
and/or otherwise hereinafter provided; and

(4) Perform such other functions as may be provided by law or

assigned by the Secretary.

Section 9. Provincial/City Prosecution Offices. - The Provincial and

City Fiscal's Office established in each of the provinces and cities
pursuant to law, is retained and renamed Provincial/City Prosecution
Office. It shall be headed by a Provincial Prosecutor or City
Prosecutor, as the case may be, assisted by such number of
Assistant Provincial/City Prosecutors as fixed and/or authorized by
law. The position titles of Provincial and City Fiscal and of Assistant
Provincial and City Fiscal are hereby abolished.
All provincial/city prosecution offices shall continue to discharge their
functions under existing law.

All provincial and city prosecutors and their assistants shall be

appointed by the President upon the recommendation of the
Secretary. lawphi1.net

CHAPTER 3
OFFICE OF THE GOVERNMENT CORPORATE COUNSEL

Section 10. Office of the Government Corporate Counsel. - The Office

of the Government Corporate Counsel (OGCC) shall act as the
principal law office of all government-owned or controlled
corporations, their subsidiaries, other corporate off-springs and
government acquired asset corporations and shall exercise control
and supervision over all legal departments or divisions maintained
separately and such powers and functions as are now or may
hereafter be provided by law. In the exercise of such control and
supervision, the Government Corporate Counsel shall promulgate
rules and regulations to effectively implement the objectives of the
Office.

The OGCC is authorized to receive the attorney's fees adjudged in

favor of their client government-owned or controlled corporations,
their subsidiaries/other corporate offsprings and government acquired
asset corporations. These attorney's fees shall accrue to a special
fund of the OGCC, and shall be deposited in an authorized
government depository as a trust liability and shall be made available
for expenditure without the need for a Cash Disbursement Ceiling, for
purposes of upgrading facilities and equipment, granting of
employees' incentive pay and other benefits, and defraying such
other incentive expenses not provided for in the General
Appropriations Act as may be determined by the Government
Corporate Counsel.

CHAPTER 4
NATIONAL BUREAU OF INVESTIGATION
Section 11. National Bureau of Investigation. - The National Bureau of
Investigation (NBI) with all its duly authorized constituent units
including its regional and district offices and rehabilitation center,
shall continue to perform the powers and functions as are now vested
in it under the existing law and such additional functions as may
hereafter be provided by law.

Section 12. The NBI Director and Other Officials. - The NBI shall be
headed by a Director assisted by an Assistant Director and five (5)
Deputy Directors, for Intelligence, Investigation, Technical,
Administrative and Comptroller Services, respectively.

The NBI is also authorized to continue the operation and

maintenance of a Regional Office in each of the twelve (12)
administrative regions of the country, to be headed by a Regional
Director and assisted by an Assistant Regional Director.

Section 13. Internal Organization and Assignment of Personnel. -

Subject to prior approval of the Secretary and to the limitations
prescribed in the General Appropriations Act for personnel services
expenditures in the NBI, the NBI director may be authorized to
determine the internal organization of the constituent units of the
Bureau including the composition and size thereof and the number,
classes and level of positions (below the rank of presidential
appointees) to be assigned or allocated thereto.

CHAPTER 5
PUBLIC ATTORNEY'S OFFICE

Section 14. Public Attorney's Office (PAO). - The Citizen's Legal

Assistance Office (CLAO) is renamed Public Attorney's Office (PAO).
It shall exercise the powers and functions as are now provided by law
for the Citizen's Legal Assistance Office or may hereafter be provided
by law.

Section 15. Organizational Structure. - The PAO shall consist of the

following constituent units:

(1) Office of the Chief Public Attorney and two (2) Deputy Chief Public
Attorneys;
(2) Five (5) line divisions in the Central Office, namely: Administrative,
Financial and Management, Special and Appealed Cases, Legal
Research and Statistics, and Field Services Divisions; and

(3) Regional and Provincial/District Offices.

Section 16. The Chief Public Attorney and Other PAO Officials. - The
PAO shall be headed by a Chief Public Attorney and shall be assisted
by two (2) Deputy Chief Public Attorneys. Each PAO Regional Office
established in each of the administrative regions of the country shall
be headed by a Regional Public Attorney who shall be assisted by an
Assistant Regional Public Attorney.

The Chief Public Attorney, Deputy Chief Public Attorneys, Regional

Public Attorneys and Assistant Regional Public Attorneys shall be
appointed by the President upon the recommendation of the
Secretary.

CHAPTER 6
BOARD OF PARDONS AND PAROLE

Section 17. Board of Pardons and Parole. - The Board of Pardons

and Parole shall continue to discharge the powers and functions as
provided in existing law and such additional functions as may be
provided by law.

Section 18. Board Composition. - The Board shall be composed of

the Secretary as Chairman and six (6) members consisting of: The
Administrator of the Parole and Probation Administration as ex-officio
member, a sociologist, a clergyman, an educator, a person with
training and experience in correction work, and a member of the
Philippine Bar; Provided, that one of them is a woman. The members
of the Board shall be appointed by the President upon the
recommendation of the Secretary and shall hold office for a term of
six (6) years, without prejudice to reappointment.

In case of vacancy by reason of death, incapacity, resignation or

removal of any of the Board members, the Secretary shall have the
authority to designate a temporary member possessing the
qualifications of his predecessor and to serve out his unexpired term
or until the President shall have appointed a regular member to fill the
vacancy.

Section 19. Executive Director and Board Secretary; Support Staff . -

In the performance of his duties as Chairman of the Board of Pardons
and Parole, the Secretary shall be assisted by a staff headed by the
Executive Director who is at the same time the Secretary of the
Board. The Executive Director shall be appointed by the President
upon the recommendation of the Secretary. The Executive Director
shall receive a monthly salary of thirteen thousand five hundred
pesos.

The Board Secretary shall prepare and keep the minutes of all the
board sessions in a book of records kept for the purpose, as well as
all the resolutions and recommendations of the Board on all actions
involving parole, pardons and executive clemency to the President;
authenticate and/or attest all minutes, resolutions and
recommendations of the Board; prepare and serve all notices of
board meetings or sessions to the members of the Board; prepare an
annual report of all resolutions and recommendations for parole or
executive clemency and other reports that the Department may
require. He shall also perform such other functions as the Board may
from time to time assign to him.

Section 20. Board Meetings. - The Board shall meet regularly every
week, or as the Board may direct, or upon call by the
Chairman/Secretary. The members shall act only as a Board, and
every decision of the majority shall be valid as an act of the Board,
provided, that the Board may direct a Board member to prepare and
submit a report involving any application for parole, pardon or any
request for executive clemency for appropriate action by the Board.

Section 21. Board Rules and Regulations. - The Board is hereby

authorized to establish and prescribe, subject to the approval of the
Secretary, rules and regulations to govern the proceedings of the
Board.

Section 22. Indeterminate Sentence Law. - The provisions of Act No.

4103, otherwise known as the Indeterminate Sentence Law, as
amended, shall continue to apply except as otherwise amended,
modified or repealed by this Code.

CHAPTER 7
PAROLE AND PROBATION ADMINISTRATION

Section 23. Parole and Probation Administration. - The Parole and

Probation Administration hereinafter referred to as the Administration
shall have the following functions:

(1) Administer the parole and probation system;

(2) Exercise general supervision over all parolees and probationers;

(3) Promote the correction and rehabilitation of offenders; and

(4) Such other functions as may hereafter be provided by law.

Section 24. Structural and Personnel Organization. -

(1) The Administration shall be headed by an Administrator who shall

be immediately assisted by a Deputy Administrator. The
Administrator and Deputy Administrator shall be appointed by the
President upon the recommendation of the Secretary.

The appointees to the positions of Administrator and Deputy

Administrator must be holders of a doctoral/masteral degree in public
administration and/or lawyers with at least one year of supervisory
experience in probation work.

(2) The Administration shall have a Technical Service under the

Office of the Administrator which shall serve as the service arm of the
Board of Pardons and Parole in the supervision of parolees and
pardonees.

The Board and the Administration shall jointly determine the staff
complement of the Technical Service.

(3) The Administration shall likewise continue to operate and maintain

a Regional Office in each of the administrative regions including the
National Capital Region and also a probation and parole office in
every province and city of the country.

The Regional, Provincial and City Offices of the Administration shall

each be headed by a Regional Probation and Parole Officer,
Provincial/City Probation and Parole Officer, respectively, all of whom
shall be appointed by the Secretary upon the recommendation of the
Administrator.

The Provincial or City Probation and Parole Officer shall be assisted

by such field assistants and subordinate personnel as may be
necessary to enable them to carry out their duties and functions. For
this purpose, the Administrator may appoint citizens of good repute
and probity to act as Probation and Parole Aides who shall not
receive any regular compensation for their services except
reasonable travel allowance.

Section 25. Applicability of P.D. No. 968, as amended. - The

Provisions of P.D. 968 otherwise known as the Probation Law of
1976 shall continue to govern the operation and management of the
Administration including the enumeration of functions and
qualifications for appointment of the Administrator, Deputy
Administrators, Regional, Provincial and City Probation Officers and
their assistants and other subordinate personnel not inconsistent with
this title.

CHAPTER 8
BUREAU OF CORRECTIONS

Section 26. Bureau of Corrections. - The Bureau of Corrections shall

have its principal task the rehabilitation of prisoners. The Bureau of
Corrections shall exercise such powers and functions as are now
provided for the Bureau of Prisons or may hereafter be provided by
law.

Section 27. Structural and Personnel Organization. - The Bureau of

Corrections shall be headed by a Director who shall be assisted by
two (2) Assistant Directors, one for Administration and Rehabilitation
and one for Prisons and Security. The Director and Assistant
Directors of the Bureau shall be appointed by the President upon
recommendation of the Secretary.

The Bureau shall carry out its functions through its divisions and its
seven (7) Penal institutions namely - New Bilibid Prisons,
Correctional Institution for Women, Iwahig, Davao, San Ramon and
Sablayan Prisons and Penal Farms and the Leyte Regional Prisons.

CHAPTER 9
LAND REGISTRATION AUTHORITY

Section 28. The Land Registration Authority. - The Land Registration

Authority, hereinafter referred to as the Authority shall continue to
exercise its powers and functions under existing law on the Land
Titles and Deeds Registration Authority and those which may
hereafter be provided by law.

Section 29. Organizational Structure. - The Authority shall be headed

by an Administrator who shall be assisted by two (2) Deputy
Administrators, all of whom shall be appointed by the President upon
the recommendation of the Secretary.

Section 30. Reorganization of Registry Offices in the National Capital

Region. - The Registries of Deeds in the National Capital Region is
hereby reorganized as follows:

(1) The Registries of Deeds in the cities of Manila, Quezon, Pasay

and Caloocan shall be maintained;

(2) There is hereby created Registries of Deeds in the Municipalities

of Navotas, Malabon, Valenzuela, Mandaluyong, San Juan, Marikina,
Las Piñas and Parañaque with jurisdiction over their respective
municipalities;

(3) The Registry of Deeds of Pasig shall be maintained with

jurisdiction over the Municipalities of Pasig, Taguig and Pateros; and

(4) The Registry of Deeds of Makati shall have jurisdiction over the
municipalities of Makati and Muntinlupa.
CHAPTER 10
BUREAU OF IMMIGRATION

Section 31. Bureau of Immigration. - The Bureau of Immigration is

principally responsible for the administration and enforcement of
immigration, citizenship and alien admission and registration laws in
accordance with the provisions of the Philippine Immigration Act of
1940, as amended (C.A. No. 613, as amended). The following units
shall comprise the structural organization of the Bureau:

(1) Office of the Commissioner and Associate Commissioners;

(2) Board of Commissioners - composed of the Commissioner as

Chairman and two (2) Associate Commissioners as members; and

(3) Boards of Special Inquiry which are authorized to be organized in

the Commission pursuant to the provisions of the Immigration Act of
1940, as amended.

Subject to the provisions of existing law, the Secretary is hereby

authorized to review, revise and/or promulgate new rules and
regulations to govern the conduct of proceedings in the Board of
Commissioners and the Boards of Special Inquiry, including the
determination of the size and number of the support staff to be
assigned thereat.

The Bureau shall be headed by a Commissioner assisted by two

Associate Commissioners, all of whom shall be appointed by the
President upon the recommendation of the Secretary.

The Commissioner and the two Associate Commissioners shall

compose the Board of Commissioners, a collegial body hereby
granted exclusive jurisdiction over all deportation cases. The Board
shall also have appellate jurisdiction over decisions of the Boards of
Special Inquiry and shall perform such other functions as may be
provided by law.

Each Board of Special Inquiry shall be composed of a Chairman and

two members who shall be appointed by the Secretary upon the
recommendation of the Commissioner.
Likewise, the appointment of all the other personnel of the Bureau
including the designation of Acting Immigration Officers shall be
vested in the Secretary upon the recommendation of the
Commissioner.

CHAPTER 11
COMMISSION ON THE SETTLEMENT OF LAND PROBLEMS

Section 32. Commission on the Settlement of Land Problems. - The

Commission on the Settlement of Land Problems shall be responsible
for the settlement of land problems involving small landowners and
members of cultural minorities. It shall also perform such other
functions, as are now or may hereafter be provided by law.

Section 33. Structure and Personnel Organization. - The Commission,

as a collegial body, shall be composed of the Commissioner and two
Associate Commissioners. For administrative purposes, the
Commissioner shall be the head of the Commission and the two
Associate Commissioners shall be his immediate assistants.

The Commissioner and the two Associate Commissioners shall be

appointed by the President upon the recommendation of the
Secretary. They shall have the same qualifications for appointment
and receive a salary, retirement benefits, longevity pay and other
privileges equivalent to that of an Associate Justice of the Court of
Appeals and a Judge of the Regional Trial Court, respectively, as
provided in E.O. No. 561.

The Commission shall have a technical staff which shall be headed

by an Executive Director and assisted by a Deputy Executive Director
who shall both be appointed by the President upon the
recommendation of the Secretary. All the other members of the
technical staff shall be appointed by the Secretary upon the
recommendation of the Commissioner.

When conditions in any province so warrant, the Commission may,

subject to the approval of the Secretary, establish regional and
provincial offices thereat which shall exercise such powers and
perform such functions as may be assigned to it by the Commission.
CHAPTER 12
OFFICE OF THE SOLICITOR GENERAL

Section 34. Organizational Structure. - The Office of the Solicitor

General shall be an independent and autonomous office attached to
the Department of Justice.

The Office of the Solicitor General shall be headed by the Solicitor

General, who is the principal law officer and legal defender of the
Government. He shall have the authority and responsibility for the
exercise of the Office's mandate and for the discharge of its duties
and functions, and shall have supervision and control over the Office
and its constituent units.

The Solicitor General shall be assisted by a Legal Staff composed of

fifteen (15) Assistant Solicitors General, and such number of
Solicitors and Trial Attorneys as may be necessary to operate the
Office, which shall be divided into fifteen (15) divisions: Provided,
That the Solicitor General may assign or transfer the Assistant
Solicitors General, Solicitors or Trial Attorneys to any of the divisions.

Section 35. Powers and Functions. - The Office of the Solicitor

General shall represent the Government of the Philippines, its
agencies and instrumentalities and its officials and agents in any
litigation, proceeding, investigation or matter requiring the services of
lawyers. When authorized by the President or head of the office
concerned, it shall also represent government-owned or controlled
corporations. The Office of the Solicitor General shall constitute the
law office of the Government and, as such, shall discharge duties
requiring the services of lawyers. It shall have the following specific
powers and functions:

(1) Represent the Government in the Supreme Court and the Court of
Appeals in all criminal proceedings; represent the Government and its
officers in the Supreme Court, the Court of Appeals, and all other
courts or tribunals in all civil actions and special proceedings in which
the Government or any officer thereof in his official capacity is a
party.
(2) Investigate, initiate court action, or in any manner proceed against
any person, corporation or firm for the enforcement of any contract,
bond, guarantee, mortgage, pledge or other collateral executed in
favor of the Government. Where proceedings are to be conducted
outside of the Philippines the Solicitor General may employ counsel
to assist in the discharge of the aforementioned responsibilities.

(3) Appear in any court in any action involving the validity of any
treaty, law, executive order or proclamation, rule or regulation when
in his judgment his intervention is necessary or when requested by
the Court.

(4) Appear in all proceedings involving the acquisition or loss of

Philippine citizenship.

(5) Represent the Government in all land registration and related

proceedings. Institute actions for the reversion to the Government of
lands of the public domain and improvements thereon as well as
lands held in violation of the Constitution.

(6) Prepare, upon request of the President or other proper officer of

the National Government, rules and guidelines for government
entities governing the preparation of contracts, making of
investments, undertaking of transactions, and drafting of forms or
other writings needed for official use, with the end in view of
facilitating their enforcement and insuring that they are entered into or
prepared conformably with law and for the best interests of the public.

(7) Deputize, whenever in the opinion of the Solicitor General the

public interest requires, any provincial or city fiscal to assist him in the
performance of any function or discharge of any duty incumbent upon
him, within the jurisdiction of the aforesaid provincial or city fiscal.
When so deputized, the fiscal shall be under the control and
supervision of the Solicitor General with regard to the conduct of the
proceedings assigned to the fiscal, and he may be required to render
reports or furnish information regarding the assignment.

(8) Deputize legal officers of government departments, bureaus,

agencies and offices to assist the Solicitor General and appear or
represent the Government in cases involving their respective offices,
brought before the courts, and exercise supervision and control over
such legal officers with respect to such cases.

(9) Call on any department, bureau, office, agency or instrumentality

of the Government for such service, assistance and cooperation as
may be necessary in fulfilling its functions and responsibilities and for
this purpose enlist the services of any government official or
employee in the pursuit of his tasks.

Departments, bureaus, agencies, offices, instrumentalities and

corporations to whom the Office of the Solicitor General renders legal
services are authorized to disburse funds from their sundry operating
and other funds for the latter Office. For this purpose, the Solicitor
General and his staff are specifically authorized to receive allowances
as may be provided by the Government offices, instrumentalities and
corporations concerned, in addition to their regular compensation.

(10) Represent, upon the instructions of the President, the Republic

of the Philippines in international litigations, negotiations or
conferences where the legal position of the Republic must be
defended or presented.

(11) Act and represent the Republic and/or the people before any
court, tribunal, body or commission in any matter, action or
proceeding which, in his opinion, affects the welfare of the people as
the ends of justice may require; and

(12) Perform such other functions as may be provided by law.

Section 36. Appointments. - The Solicitor General shall be appointed

by the President and shall have the same qualifications for
appointment, rank, prerogatives, and privileges as those of the
Presiding Justice of the Court of Appeals.

The Assistant Solicitors General and the Solicitors shall be appointed

by the President upon recommendation of the Solicitor General. The
Trial Attorneys and administrative personnel in the Office of the
Solicitor General shall be appointed by the Solicitor General.
Section 37. Acting Solicitor General. - In case of absence or
temporary incapacity of the Solicitor General, the President shall
designate an Acting Solicitor General. In case of death, permanent
incapacity, removal or resignation of the Solicitor General, or vacancy
thereof, the President shall designate an Acting Solicitor General,
who shall act as such until a new Solicitor General is appointed, or
appoint a new Solicitor General.

Title IV

AGRICULTURE

CHAPTER 1
GENERAL PROVISIONS

Section 1. Declaration of Policy. - The State shall promote the well

being of farmers, including share tenants, leaseholders, settlers,
fishermen, and other rural workers by providing an environment in
which they can increase their income, improve their living conditions,
and maximize their contributions to the national economy. Toward
this end, the State shall accelerate agricultural development and
enhance the production of agricultural crops, fisheries, and livestock
by optimizing the use of resources and by applying modern farming
systems and technology in order to attain food security for domestic
use and expand and diversify agricultural production for export. It
shall also encourage private initiative in agri-business ventures both
in the production and in the exportation and importation of food and
other allied commodities.

Section 2. Mandate. - The Department is the government agency

responsible for the promotion of agricultural development by
providing the policy framework, public investments, and support
services needed for domestic and export-oriented business
enterprises.

In the fulfillment of this mandate, it shall be the primary concern of the

Department to improve farm income and generate work opportunities
for farmers, fishermen, and other rural workers. It shall encourage
people's participation in agricultural development through sectoral
representation in agricultural policy-making bodies so that the
policies, plans, and programs of the Department are formulated and
executed to satisfy their needs.

It shall ensure social justice, equity, productivity and sustainability in

the use of agricultural resources.

Section 3. Powers and Functions. - The Department shall:

(1) Provide integrated services to farmers, fishermen, and other food

producers on production, utilization, conservation, and disposition of
agricultural and fishery resources;

(2) Be responsible for the planning, formulation, execution, regulation,

and monitoring of programs and activities relating to agriculture, food
production and supply;

(3) Promulgate and enforce all laws, rules and regulations governing
the conservation and proper utilization of agricultural and fishery
resources;

(4) Establish central and regional information systems to serve the

production, marketing, and financing date requirements of the
farmers as well as domestic and foreign investors in agribusiness
ventures;

(5) Provide comprehensive and effective extension services and

training to farmers and other agricultural entrepreneurs on the
production, marketing, and financing aspects of agricultural
enterprises;

(6) Conduct, coordinate, and disseminate research studies on

appropriate technologies for the improvement and development of
agricultural crops, fisheries, and other allied commodities;

(7) Provide the mechanism for the participation of farmers, fishermen,

and entrepreneurs at all levels of policy-making, planning and
program formulation;
(8) Coordinate with and enlist other public and private agencies for
cooperation and assistance on matters affecting the policies, plans
and programs of the Department;

(9) Perform such other functions as may be provided by law.

Section 4. Organizational Structure. - The Department shall consist

of the Department Proper, the Bureaus, and the Regional, Provincial,
Municipal, and Barangay Offices.

The Department Proper shall consist of the Office of the Secretary,

the Offices of the Undersecretaries and Assistant Secretaries and
their immediate staffs as determined by them respectively, and the
Department Services.

The Department Services and Bureaus shall be grouped as follows:

(1) Production Group; (2) Research, Training and Extension Group;
(3) Agri-Business Group; (4) Planning and Monitoring Group; and (5)
Support Group.

CHAPTER 2
DEPARTMENT PROPER

Section 5. Office of the Secretary. - The Office of the Secretary shall

consist of the Secretary and his immediate staff as determined by
him.

Section 6. Assistant to the Secretary. - The Secretary shall be

assisted by five (5) Undersecretaries, seven (7) Assistant
Secretaries, and the heads of the National Food Authority and the
Philippine Coconut Authority who shall have the rank of
Undersecretaries.

Section 7. Undersecretaries. - The Undersecretaries shall assist the

Secretary in the exercise of the mandate and in the discharge of the
powers and functions of the Department.

The five (5) Undersecretaries shall be assigned the following

functions:
(1) The Undersecretary assigned to Regional Operations shall
oversee the implementation of the agricultural plans, policies,
programs, and projects of the regional and field offices of the
Department;

(2) The Undersecretary assigned to Staff Operations shall provide

staff support services, particularly in administration and finance,
production, research, training, and extension;

(3) The Undersecretary assigned to Policy and Planning shall provide

policy and planning support services, particularly in policy-
formulation, planning, and agri-business;

(4) The Undersecretary assigned to Attached Agencies shall exercise

supervision over the attached agencies to ensure that their
operations are in conformity with the approved plans and policies of
the Department;

(5) The Undersecretary assigned to Special Concerns shall develop

and implement agricultural policies and priority projects aimed at
improving the quality of life of disadvantaged and cultural community
groups living in lowland and upland areas. In addition, he shall handle
other special projects as may be identified or directed by the
Department Secretary.

Section 8. Functions of the Undersecretaries. - With respect to his

area of responsibility, an Undersecretary shall have the following
functions:

(1) Advise the Secretary in the promulgation of orders and other

issuances, with respect to his area of responsibility;

(2) Exercise supervision and control over the offices, services,

operating units, and officers and employees under his responsibility;

(3) Promulgate rules and regulations, consistent with the policies of

the Department that will efficiently and effectively govern the activities
of the units under his responsibility;
(4) Coordinate the functions and activities of the units under his
responsibility with those of other units under the responsibility of the
other Undersecretaries;

(5) Exercise delegated authority on matters related to the functions

and activities of the units under his responsibility to the extent granted
by the Secretary; and

(6) Perform such other functions as may be provided by law or

assigned by the Secretary.

Section 9. Functions of the Assistant Secretaries. - Each of the

seven (7) Assistant Secretaries shall head any of the following:
Production Group, Agri-Business Group, Research, Training and
Extension Group, Planning and Monitoring Group, Support Group,
Foreign Assisted Projects and the Regional Operations. In connection
therewith, the Assistant Secretaries shall have the following functions:

(1) The Assistant Secretary assigned to the Production Group shall

be responsible for providing services relating to planning,
programming, and project development of agricultural production.
This group shall consist of the Bureau of Animal Industry, Bureau of
Plant Industry, Bureau of Fisheries and Aquatic Resources, and
Bureau of Soils and Water Management;

(2) The Assistant Secretary assigned to the Agri-Business Group

shall be responsible for assisting farmers and other agri-business
ventures by providing marketing assistance and investment
information. This group shall consist of the Marketing Assistance
Services and the Agri-Business Investment Information Services;

(3) The Assistant Secretary assigned to the Research, Training and

Extension Group shall be responsible for conducting research and
training as well as providing assistance in the establishment of
agricultural cooperatives. This group shall be composed of the
Bureau of Agricultural Research (BAR), Agricultural Training Institute
(ATI), and Bureau of Agricultural Cooperatives Development
(BACOD);
(3) The Assistant Secretary assigned to the Planning and Monitoring
Group shall take charge of developing, integrating, monitoring and
evaluating all plans and programs of the Department and shall
collect, monitor, and publish agricultural statistics for the Department
and its clientele. This group shall be composed of the Planning and
Monitoring Services, Computer Services, and Bureau of Agricultural
Statistics;

(5) The Assistant Secretary assigned to the Support Group shall take
charge of providing staff support services in finance, administration,
and management. This shall be composed of the Financial and
Management Services, the Legal Services, and the Administrative
Services;

(6) The Assistant Secretary assigned to the Foreign Assisted Projects

shall be responsible for the negotiation and implementation of foreign
assisted projects of the Department;

(7) The Assistant Secretary assigned to Regional Operations shall

assist the Undersecretary for Regional Operations in the supervision
of regional offices, including the coordination and implementation of
Department plans, policies and programs.

The seven (7) Assistant Secretaries shall, in addition to the

abovementioned duties, perform such other functions as may be
assigned by the Secretary. They may also be assigned or placed
under the supervision of the Undersecretaries at the discretion of the
Secretary.

CHAPTER 3
DEPARTMENT SERVICES

Section 10. Planning and Monitoring Service. - The Planning and

Monitoring Service shall be responsible for the formulation and
integration of plans and programs, emanating from all units of the
Department, including the Bureau, Regional Offices and Attached
Agencies. It shall also be responsible for data analysis and
monitoring of the implementation of said plans and programs through
its management information system.
Section 11. Computer Service. - The Computer Service shall be
responsible for the development and maintenance of the electronic
data processing requirements of the Department.

Section 12. Financial and Management Service. - The Financial and

Management Service shall provide services relating to budgeting,
accounting and management.

Section 13. Administrative Service. - The Administrative Service shall

be responsible for providing personnel, records, information, training
and other general services.

Section 14. Legal Service. - The Legal Service shall handle the legal
requirements including those pertaining to the quasi-judicial and
regulatory functions of the Department Proper and its Bureaus.

Section 15. Agribusiness Investment Information Service. - The

Agribusiness Investment Information Service shall conduct research,
gather and collate data related to agribusiness such as laws and
regulations, taxation, production technologies, market strategies,
competition, foreign assistance, grants, credit, and new venture
considerations relating to agribusiness and shall package information
on agribusiness investment opportunities and provide sample
feasibility studies for different agricultural products and markets.

Section 16. Marketing Assistance Service. - The Marketing

Assistance Service shall be responsible for identifying markets for
Philippine agricultural products and shall assist in the planning of
market centers, marketing channels, and distribution networks.

Section 17. Department Services Head. - Each of the Services of the

Department shall be headed by a Staff Director.

CHAPTER 4
BUREAUS AND OFFICES

Section 18. Bureau of Animal Industries. - The Bureau of Animal

Industry shall:
(1) Formulate programs for the development and expansion of the
livestock, poultry, and dairy industries to meet the requirements of the
growing populace;

(2) Recommend the specific policies and procedures governing the

flow of livestock products through the various stages of marketing, as
well as the proper preservation and inspection of such products;

(3) Coordinate and monitor the activities and projects relating to

livestock and allied industries;

(4) Prescribe standards for quality in the manufacture, importation,

labelling, advertising, distribution, and sale of livestock, poultry, and
allied industries; and

(5) For its own sector, recommend plans, programs, policies, rules
and regulations to the Secretary and provide technical assistance in
the implementation of the same.

Section 19. Bureau of Plant Industry. - The Bureau of Plant Industry

shall:

(1) Be responsible for the production of improved planting materials,

protection of agricultural crops from pests and diseases, and
development and improvement of farm equipment and other
structures related to the plant industry;

(2) Prepare a program for the selection, production and certification of

improved planting materials as well as guidelines for its
implementation;

(3) Recommend plant quarantine policies, and prescribe rules and

regulations for the prevention, control, and eradication of pests,
diseases, and injuries to plants and plant products; and

(4) For its own sector, recommend plans, programs, policies, rules
and regulations to the Secretary and provide technical assistance in
the implementation of the same.
Section 20. Bureau of Fisheries and Aquatic Resources. - The Bureau
of Fisheries and Aquatic Resources shall:

(1) Formulate plans for the proper management, accelerated

development, and proper utilization of the country's fishery and
aquatic resources;

(2) Undertake studies on the economics of the various phases of the

fishing industry, which studies shall form the bases for the formulation
of policies and programs on fisheries and aquatic resources;

(3) Render technical assistance and advisory services in the proper

procurement, construction and operation of the fishing vessels as well
as determination and designation of fish landing points for all
commercial fishing boats; and

(4) For its own sector, recommend plans, programs, policies, rules
and regulations to the Secretary and provide technical assistance in
the implementation of the same.

Section 21. Bureau of Soils and Water Management. - The Bureau of

Soils and Water Management shall:

(1) Advise and render assistance on matters relative to the utilization

and management of soils and water as vital agricultural resources;

(2) Formulate measures and guidelines for effective soil, land, and
water resource utilization, as well as soil conservation in croplands
and other agricultural areas;

(3) Undertake soil research programs;

(4) Coordinate with the relevant government agencies in resettlement

areas and prepare the necessary plans for the provision of technical
assistance in solving soil impounding and the prevention of soil
erosion, fertility preservation, and other related matters;

(5) Engage in rainmaking projects for agricultural areas and

watersheds to solve the problem of prolonged droughts and minimize
their effects on standing agricultural crops; and
(6) For its own sector, recommend plans, programs, policies, rules
and regulations to the Secretary and provide technical assistance in
the implementation of the same.

Section 22. Bureau of Agricultural Research. - The Bureau of

Agricultural Research shall:

(1) Ensure that all agricultural research is coordinated and

undertaken for maximum utility to agriculture;

(2) Tap farmers, farmers' organizations, and research institutions,

especially the state colleges and universities, in the conduct of
research for use of the Department and its clientele, particularly the
farmers, fishermen and other rural workers.

Section 23. Bureau of Agricultural Cooperatives and Development. -

The Bureau of Agricultural Cooperatives and Development shall:

(1) Formulate an integrated system for development and evaluation

of agricultural cooperatives;

(2) Provide advice and assistance in the establishment of agricultural

cooperatives in the rural communities; and

(3) Evolve a program to promote the economic viability of agricultural

cooperatives.

The Bureau shall include in its area of responsibility non-agricultural

cooperatives.

Section 24. Bureau of Agricultural Statistics. - The Bureau of

Agricultural Statistics shall:

(1) Be mainly responsible for the collection, compilation, and official

release of agricultural statistics;

(2) Exercise technical supervision over data collection centers;

(3) Coordinate all agricultural statistics and economic research
activities of all bureaus, corporations and offices under the
Department.

Section 25. Agricultural Training Institute. - The Agricultural Training

Institute shall:

(1) Be responsible for the training of all agricultural extension workers

and their clientele, who are mostly farmers and other agricultural
workers;

(2) Ensure that training programs address the real needs of the
agricultural sectors; and

(3) Ensure that the research results are communicated to the farmers
through the appropriate training and extension activities.

CHAPTER 5
REGIONAL OFFICES

Section 26. Functions. - The Department of Agriculture is authorized

to establish, operate, and maintain a Regional Office in each of the
administrative regions of the country. Each Regional Office shall be
headed by a Regional Director, to be assisted by three (3) Assistant
Regional Directors, assigned to Operations, Research, and Support
Services, respectively. Each Regional Office shall have, within its
administrative regions, the following duties and responsibilities:

(1) Provide efficient and effective frontline services to the people;

(2) Implement and enforce in its area the laws and policies, plans,
programs, projects, rules, and regulations issued by the Department
including plant and animal quarantine laws, rules and regulations;

(3) Coordinate with regional offices of other departments, offices and

agencies in the region;

(4) Coordinate with local government units; and

(5) Perform such other functions as may be provided by law or
assigned appropriately by the Secretary.

At the provincial level, policies, plans, programs, projects, laws, rules,

and regulations of the Department shall be implemented by the
Provincial Agriculture and Fisheries Officer and, at the municipal and
barangay levels, by the Municipal Agriculture and Fisheries Office.

Section 27. Importation of Plants and Plant Products. - Subject to

such special quarantine orders, rules and regulations as may be
promulgated by the Secretary of Agriculture upon recommendation of
the Plant Quarantine Board, it is prohibited to import or introduce into
the Philippines, plants, plant products, soil or packing materials of
plants capable of harboring plant pests or being a source or medium
of infection or infestation of plants by pests. For purposes of this
Chapter, the term "plants" shall refer to living plants and any part
thereof, while "plant products" shall mean products derived from
plants either in their natural state or processed form.

Section 28. Importation of Potential Animal Pests. - The importation of

certain species of animals which are liable to become agricultural
crop pests and capable of causing injury to agricultural crops is
hereby prohibited, except in limited quantities for justifiable purposes
and upon written permission from the Regional Director concerned or
other official of the Department who may be authorized by the
Secretary of Agriculture.

Section 29. Plants, Plant Products, and Other Materials in Transit. -

Commodities mentioned under the next two preceding sections,
including food provisions and ornaments on board carriers that are in
transit, shall be required to get a clearance from the Plant Quarantine
Officer assigned at the port concerned.

Section 30. Exportation of Plants and Plant Products. - The Regional

Director concerned, the Plant Quarantine Officer or other officials of
the Department who may be authorized by the Secretary of
Agriculture shall cause the inspection and certification of all plants,
plant products and other related materials for exportation, capable of
harboring plant pests, if the importing country so requires.
Section 31. Inspection of Plants, Plant Products, Potential Animal
Pests, and Other Materials. - The Regional Director concerned or
other officials of the Department who may be authorized by the
Secretary of Agriculture shall cause the appropriate inspection of the
commodities mentioned in the next four preceding sections and apply
the necessary plant quarantine measures in order to attain the
objectives of this Chapter.

Section 32. Domestic Quarantine of Plants and Plant Products. - In

order to prevent and arrest the spread to other areas of injurious plant
pests existing in certain localities within the Philippines, the Regional
Director concerned, the Plant Quarantine Officer or other officials of
the Department who may be authorized by the Secretary of
Agriculture shall cause the inspection, treatment and certification of
plants and plant products involved in movement from one locality to
another within the country.

Section 33. Appointment of Plant Quarantine Officers. - The Secretary

shall, upon recommendation of the Regional Director concerned and
in consultation with the Director of Plant Industry, appoint Plant
Quarantine Officers to act as his representatives in implementing and
enforcing the provisions of this Chapter.

Section 34. Powers and Duties and Plant Quarantine Officers. - The
Plant Quarantine Officers shall have authority to:

(1) Inspect all carriers, passengers, crew, luggage and incoming

mails to determine the presence of plants, plant products and other
materials capable of harboring plant pests as well as potential animal
pests;

(2) Enter into and inspect any and all areas where plants, plant
products and other materials capable of harboring plant pests are
landed, stored or grown;

(3) Examine imported plants, plant products, and other materials

capable of harboring plant pests as well as potential animal pests and
administer necessary measures to insure effective implementation of
the provisions of this Chapter;
(4) Inspect, administer treatment and certify plants, plant products
and other related materials intended for export, if the importing
country so requires;

(5) Confiscate and destroy or refuse entry of plants, plant products

and potential animal pests involved in prohibited importations and
deny inspection, certification or clearance of the same; and

(6) Perform such other related duties as may be provided by law.

Section 35. Non-Liability Clause. -

(1) All charges for storage, demurrage, cartage, labor and delays
incident to inspection, cost of disinfection or disinfestation and other
post-entry requirements shall be paid by the importer or exporter as
the case may be.

(2) The Regional Director and the authorized officials of the

Department shall not be held liable for damages to the commodity in
the course of the implementation of the provisions of this Chapter.

Section 36. Duties of Importer and Exporter. - The importers,

exporters, or their authorized representatives shall submit a
declaration to the Regional Director concerned or other authorized
officials of the Department, at or before the time of entry or
embarkation, of plants and plant products for importation or
exportation. Such declaration shall indicate the name and address of
the consignor or consignee, the purpose, nature and quantity of
plants and plant products, the country or locality where the same was
grown, place and date of unloading or embarkation and the registered
name of the carrier carrying the consignment.

Section 37. Entrance and Clearance of Carrier. -

(1) The owner, operator, agent or master of carriers plying

international or domestic routes are hereby required to serve notice of
arrival and departure and to provide inward and outward cargo
manifests and other declarations of said carriers to the Plant
Quarantine Officer at the post. Prior to departure, the agent or master
of said carrier must secure a clearance from the Plant Quarantine
Officer thereat.

(2) The Collector of Customs or his authorized agents shall require

the owner, agent or master of carrier to submit a copy of the
certificate of plant quarantine clearance as a pre-requisite to the
issuance of the customs clearance.

Section 38. Collection of Fees. -

(1) The Regional Director concerned shall, with the approval of the
Secretary of Agriculture, promulgate rules and regulations governing
the collection of regulatory fees for inspection, certification, import
permits, commodity treatment and others, on commodities described
in this Chapter which shall constitute the revolving fund of the
national plant quarantine service.

(2) Importations and exportations of all government departments or

agencies and government-owned or controlled corporations, and
donations to and for the account of any duly registered relief
organization or any charitable institution certified by the Department
of Social Services and Welfare, embassies of foreign governments,
and those that may be declared by the President, upon the
recommendation of the National Economic and Development
Authority, in the interest of economic development, are exempt from
payment of the fees herein prescribed excluding, however, the
expense incurred in commodity treatment.

Section 39. Overtime Services. - The services of Plant Quarantine

Officers, fumigators and helpers performed outside office hours and
reimbursement of meal, transportation, lodging and other incidental
expenses shall be chargeable to the party or parties served at the
rates to be prescribed by the Secretary of Agriculture upon
recommendation of the Regional Director concerned.

Section 40. Cooperating Agencies. - The Secretary of Agriculture may

call upon the other government agencies in the implementation of
plant quarantine regulations, and dissemination of information to the
general public.
Section 41. Special Quarantine Orders, Rules and Regulations. -
Special quarantine orders, rules and regulations shall be promulgated
by the Secretary of Agriculture upon recommendation of the Plant
Quarantine Board to carry out and implement the provisions of this
Chapter.

Section 42. Quasi-judicial Authority. -

(1) The Regional Directors and the other officials of the Department
who may be authorized by the Secretary of Agriculture, after proper
hearing, are hereby empowered to impose administrative fines for the
violation of and non-compliance with quarantine orders, rules and
regulations promulgated in accordance with this Chapter.

(2) The decisions of the Regional Directors concerned and those of

the other authorized officials of the Department under this section are
appealable to the Secretary of Agriculture whose decision shall be
final.

Section 43. Plant Quarantine Board. - For the purpose of carrying out
the provisions of this Chapter, there shall be a Plant Quarantine
Board which shall be composed of the Undersecretary of Agriculture
for Regional Operations as Chairman; the Director of Plant Industry,
as Vice-Chairman; and the following members: the Commissioner of
Customs, the General Manager of the Philippine Ports Authority, the
Director of Quarantine, the Director of Animal Industry, the
Postmaster General, the Administrator of the Philippine Coconut
Authority, the Director of Forest Development or their representatives,
the Chief of the Department Legal Service, the Chief of the Plant
Quarantine Section and the Chief of the Crop Protection Division of
the Bureau of Plant Industry, and a representative each from the
National Economic and Development Authority, the Central Bank of
the Philippines, and the Importers' and Exporters' Confederation, as
members.

Section 44. Duties of the Board. - The Plant Quarantine Board shall
act as the advisory body to assist the Secretary in formulating orders,
rules and regulations for the effective implementation of the
provisions of this Chapter.
Section 45. Board Meeting. - The Board shall meet once every
quarter or may call special meetings when necessary, provided that
such special meeting shall not be held more than four times annually.

Section 46. Quorum. - A majority of the members of the Board shall

constitute a quorum.

CHAPTER 6
ATTACHED AGENCIES

Section 47. Attached Agencies. - The following units are hereby

attached to the Department:

(1) Agricultural Credit Policy Council

(2) National Agricultural and Fishery Council

(3) Philippine Technical and Administrative Committee for SEAFDEC

(4) Livestock Development Council

(5) National Meat Inspection Commission

(6) Fertilizer and Pesticide Authority

(7) Fiber Industry Development Authority

(8) National Tobacco Administration

(9) Sugar Regulatory Administration

(10) National Food Authority and its subsidiaries

(11) Quedan Guarantee Fund Board

(12) Philippine Fisheries Development Authority

(13) Philippine Rice Research Institute

(14) Philippine Coconut Authority and its subsidiaries

(15) National Irrigation Administration

(16) Sacovia Development Authority; and

(17) Regional Cooperative Development Assistance Offices (Regions

IX and XII).

Section 48. Specific Functions. -

(1) The National Agricultural and Fishery Council shall act as an

advisory and coordinative body of the Department. As such, it shall
conduct and encourage consultative discussions among all
agricultural sectors at the municipal, provincial, regional and national
levels;

(2) The Philippine Technical and Administrative Committee for

Southeast Asia Fisheries Development Center (SEAFDEC) shall be
responsible for the administration and management of the SEAFDEC
Aquaculture Department and shall monitor and assess the
performance of research projects on fisheries and aquaculture in
accordance with the policies or standards established by the
SEAFDEC International Council and the Department;

(3) The Livestock Development Council shall be responsible for the

formulation and establishment of comprehensive policy guidelines for
the livestock industry, preparation of plans and programs and
evaluation of livestock programs/projects;

(4) The National Meat Inspection Commission shall conduct actual

ante mortem inspection on all animals presented for slaughter and
post mortem inspection on all animals presented for slaughter and
post mortem inspection on all carcasses intended for human
consumption in all abattoirs in the country; render technical
assistance in the construction of meat establishments (abattoirs,
dressing plants, processing plants and meat markets) particularly on
the selection of sites, and plant design preparation, equipment design
and test runs; exercise overall supervision and control of
management and operations of all abattoirs, dressing plants, meat
processing plants and meat markets.
Section 49. Organization and Operation. - The agencies attached to
the Department shall continue to operate and function in accordance
with their respective charters, laws or orders creating them, except as
otherwise provided in this Code. Any provision of law to the contrary
notwithstanding, the Secretary shall serve as Chairman of the
governing boards of all attached units or agencies.

Title V

PUBLIC WORKS AND HIGHWAYS

CHAPTER 1
GENERAL PROVISIONS

Section 1. Declaration of Policy. - The State shall maintain an

engineering and construction arm and continuously develop its
technology, for the purposes of ensuring the safety of all
infrastructure facilities and securing for all public works and highways
the highest efficiency and the most appropriate quality in
construction. The planning, design, construction and maintenance of
infrastructure facilities, especially national highways, flood control and
water resources development systems, and other public works in
accordance with national development objectives, shall be the
responsibility of such an engineering and construction arm. However,
the exercise of this responsibility shall be decentralized to the fullest
extent feasible.

Section 2. Mandate. - The Department of Public Works and Highways

shall be the State's engineering and construction arm and is tasked to
carry out the policy enunciated above.

Section 3. Powers and Functions. - The Department, in order to

carry out its mandate, shall:

(1) Provide technical services for the planning, design, construction,

maintenance, or operation of infrastructure facilities;

(2) Develop and implement effective codes, standards, and

reasonable guidelines to ensure the safety of all public and private
structures in the country and assure efficiency and proper quality in
the construction of public works;

(3) Ascertain that all public works plans and project implementation
designs are consistent with current standards and guidelines;

(4) Identify, plan, secure funding for, program, design, construct or

undertake prequalification, bidding, and award of contracts of public
works projects with the exception only of specialized projects
undertaken by Government corporate entities with established
technical capability and as directed by the President of the
Philippines or as provided by law;

(5) Provide the works supervision function for all public works
constructions and ensure that actual construction is done in
accordance with approved government plans and specifications;

(6) Assist other agencies, including the local governments, in

determining the most suitable entity to undertake the actual
construction of public works projects;

(7) Maintain or cause to be maintained all highways, flood control,

and other public works throughout the country except those that are
the responsibility of other agencies as directed by the President of the
Philippines or as provided by law;

(8) Provide an integrated planning for highways, flood control and

water resource development systems, and other public works;

(9) Classify road and highways into national, regional, provincial, city,
municipal, and barangay roads and highways, based on objective
criteria it shall adopt; provide or authorize the conversion of roads
and highways from one category to another; and

(10) Delegate, to any agency it determines to have the adequate

technical capability, any of the foregoing powers and functions; and

(11) Perform such other functions as may be provided by law.

Section 4. Organizational Structure. - The Department shall be
composed of:

(1) The Department Proper consisting of the Office of the Secretary,

the Offices of the Undersecretaries and Assistant Secretaries, the
Internal Audit Service, Monitoring and Information Service, Planning
Service, Comptrollership and Financial Management Service, Legal
Service, and the Administrative and Manpower Management Service;

(2) The Bureau of Research and Standards, Bureau of Design,

Bureau of Construction, Bureau of Maintenance, and Bureau of
Equipment; and

(3) The Field Offices, consisting of fourteen (14) Regional Offices

composed of Region I (Ilocos), Region II (Cagayan Valley), Region III
(Central Luzon, National Capital Region), Region IV-A (Southern
Tagalog Mainland Provinces), Region IV-B (Southern Tagalog Island
Provinces), Region V (Bicol), Region VI (Western Visayas), Region
VII (Central Visayas), Region VIII (Eastern Visayas), Region IX
(Western Mindanao) Region X (Northeastern Mindanao) Region XI
(Southern Mindanao) and Region XII (Central Mindanao), and their
respective District Offices.

CHAPTER 2
DEPARTMENT PROPER

Section 5. Office of the Secretary. - The Office of the Secretary shall

be composed of the Secretary and his immediate staff.

Section 6. Undersecretaries. - The Secretary shall be assisted by

not more than five (5) Undersecretaries who shall be appointed by
the President upon the recommendation of the Secretary. The
Secretary is hereby authorized to delineate and assign the respective
functional areas of responsibility of the Undersecretaries. Such
responsibility shall be with respect to the mandate and objectives of
the Department and no Undersecretary shall be assigned primarily
administrative responsibilities. Within his functional area of
responsibility, an Undersecretary shall have the following functions:
(1) Advise and assist the Secretary in the formulation and
implementation of Department policies, plans programs and projects;

(2) Supervise all the operational activities of the units assigned to

him, for which he is responsible to the Secretary; and

(3) Perform such other duties and responsibilities as may be

assigned or delegated by the Secretary to promote efficiency and
effectiveness in the delivery of public services, or as may be required
by law.

Section 7. Assistant Secretaries. - The Secretary shall also be

assisted by six (6) Assistant Secretaries appointed by the President
of the Philippines upon the recommendation of the Secretary; one (1)
to be responsible for the Internal Audit Services; one (1) for the
Monitoring and Information Service; one (1) for the Planning Service;
one (1) for the Comptrollership and Financial Management Service;
one (1) for the Legal Service; and one (1) for the Administrative and
Manpower Management Service.

CHAPTER 3
DEPARTMENT SERVICES

Section 8. Internal Audit Service. - The Internal Audit Service shall

conduct comprehensive audit of various Department activities.
Specifically, it shall have the following functions:

(1) Advice the Secretary on all matters relating to management

control and operations audit;

(2) Conduct management and operations performance audit of

Department activities and units and determine the degree of
compliance with established objectives, policies, methods and
procedures, government regulations, and contractual obligations of
the Department;

(3) Review and appraise systems and procedures, organizational

structure, assets management practices, accounting and other
records, reports and performance standards (such as budgets and
standard costs) of the Department Proper, Bureaus and Regional
Offices;

(4) Analyze and evaluate management deficiencies and assist top

management to solve the problems by recommending realistic
courses of action; and

(5) Perform such other related duties and responsibilities as may be

assigned or delegated by the Secretary or as may be required by law.

Section 9. Monitoring and Information Service. - The Monitoring and

Information Service is hereby created to provide the Secretary timely
reports on the status of various Department projects and activities;
and develop and implement information programs for mass
dissemination in coordination with the appropriate government
agencies. The Monitoring and Information Service shall have the
following functions:

(1) Advice the Secretary on all matters relating to monitoring and

public information;

(2) Develop and maintain a system for retrieving and processing

monitoring information on all projects and activities of concern to the
Secretary;

(3) Provide accurate and timely status and exception reports to the
Secretary;

(4) Generate monitoring reports for the President, the Cabinet, or for
any other purpose as required by the Secretary;

(5) Develop and supervise the implementation of communications

programs to have relevant policies, programs and plans of the
Department understood by the public;

(6) Produce and supervise the dissemination of media materials in

line with the national government public information programs;

(7) Coordinate with appropriate national government agencies tasked

with public information affairs; and
(8) Perform such other related duties and responsibilities as may be
assigned or delegated by the Secretary or as may be required by law.

The existing Infrastructure Computer Center shall be under the

supervision of the Assistant Secretary for Monitoring Information. It
shall establish and maintain a computerized data bank as a
repository of statistics and information on infrastructure operations. It
shall also provide computer service to the different offices of the
Department.

Section 10. Planning Service. - The Planning Service shall provide

the Department with the capability to undertake infrastructure
development planning and programming. For this purpose, it shall
have the following functions:

(1) Advice the Secretary on all matters relating to infrastructure

planning;

(2) Formulate strategies and priorities for infrastructure development

consistent with national development objectives; and initiate or
undertake, coordinate and review area and sector surveys for
development planning;

(3) Formulate long-range, medium-term and annual development

plans and programs for infrastructure, especially highways, flood
control and water resource development systems, and other public
works projects, including phasing of implementation;

(4) Identify priority packages for infrastructure development,

especially highways, flood control and water resource development
systems, and other public works projects, undertake or supervise and
evaluate the conduct of feasibility studies and project preparation
thereof;

(5) Prioritize project implementation and the allocation of funds and

other resources and package project proposals for funding and
implementation;
(6) Evaluate and appraise all regional and interregional infrastructure
development plans and programs as to their feasibility and
consistency with approved strategies and long and medium-term
plans;

(7) Initiate regular Department-wide planning exercises and act as the

secretariat thereof;

(8) Gather, analyze and organize needed statistical data and

information;

(9) Provide technical assistance related to its functions to the other

Services, Bureaus and the Regional Offices as needed; and

(10) Perform such other related duties and responsibilities as may be

assigned or delegated by the Secretary or as may be required by law.

Section 11. Comptrollership and Financial Management Service. -

The Comptrollership and Financial Management Service shall provide
the Department with coordinated services relating to financial
systems and procedures, budget, cash, accounting, and all financial
housekeeping matters. For such purposes, it shall have the following
functions:

(1) Advise the Secretary on all matters relating to the accounting of

government expenditures and receipts, budgeting and cash
management, project finances, and financial systems and
procedures;

(2) Prepare budget proposals and pursue formal budget

authorizations; undertake budget execution, and prepare and submit
all appropriate reports to the proper offices;

(3) Develop and maintain accounting, financial and assets

management systems, procedures, and practices in the Department
proper, Bureaus, and Regional Offices;

(4) Provide assistance in its area of specialization to any unit of the

Department and, when requested, to government corporations and
councils attached to the Department; and
(5) Perform such other related duties and responsibilities as may be
assigned or delegated by the Secretary or as may be required by law.

Section 12. Legal Service. - The Legal Service provides the

Department with services on such legal affairs as contract letting and
litigation, legal and legislative research, complaints and investigation,
legal counselling and other matters of law. For such purposes, it shall
have the following functions:

(1) Advise the Secretary on all matters relating to legal affairs;

(2) Prepare Department contracts and legal instruments, review and

interpret all contracts and agreements entered into by the
Department; evaluate all legal proposals;

(3) Conduct administrative investigation as well as the review of

administrative charges against officers and employees of the
Department;

(4) Exercise functional jurisdiction over the legal staffs of Regional

Offices;

(5) Provide legal assistance to the Department Proper, the Bureaus

and Regional Offices and, when requested, the attached
corporations; and

(6) Perform such other related duties and responsibilities as may be

assigned or delegated by the Secretary or as may be required by law.

Section 13. Administrative and Manpower Management Service. -

The Administrative and Manpower Management Service provides the
Department with services relating to human resources development,
personnel, records, facilities maintenance, medical and dental,
security and property and procurement services. For such purposes,
it shall have the following functions:

(1) Advise the Secretary, on all matters relating to internal

administration and human resources management;
(2) Prepare and implement an integrated personnel plan that shall
include provisions on merit promotions, performance evaluation, job
rotation, suggestions and incentive awards systems and health and
welfare services;

(3) Provide services related to human resources training, education,

and development, including manpower and career planning and
forecasting and development of indigenous training materials;

(4) Develop, establish and maintain an efficient and cost-effective

property procurement system and facilities and coordinate or
otherwise interface with relevant agencies, whether government or
private, for the purpose of developing or upgrading the system;

(5) Secure and maintain necessary Department facilities and develop,

establish and maintain an efficient and effective security system
covering among others, personnel, physical installations, equipment,
documents and materials, including the conduct of security
investigations;

(6) Coordinate with the appropriate government agencies for a more

efficient conduct of administrative processes;

(7) Develop, establish and maintain an efficient records system;

(8) Provide assistance in its area of specialization to the Department

Proper, Bureaus and Regional Offices and, when requested, the
government agencies and corporations attached to the Department;
and

(9) Perform such other related duties and responsibilities as may be

assigned or delegated by the Secretary or as may be required by law.

CHAPTER 4
THE BUREAU

Section 14. Bureau Head. - Each Bureau shall be headed by a

Bureau Director who shall be responsible for efficiently and effectively
carrying out the functions of the Bureau.
Section 15. Bureau of Research and Standards. - The Bureau of
Research and Standards shall develop and set effective standards
and reasonable guidelines to ensure the safety of all infrastructure
facilities in the country and to assure efficiency and proper quality in
the construction of government public works. In pursuit of this task,
the Bureau shall engage in research and development in all major
areas pertinent to infrastructure development. For such purposes, it
shall have the following functions:

(1) Study, on a continuing basis, and formulate and recommend

guidelines, standards, criteria, and systems for the survey and
design, construction, rehabilitation, maintenance and improvement of
all public works and highways;

(2) Conduct or sponsor research on construction materials and

formulate and recommend policies, standards and guidelines on
materials and quality control;

(3) Undertake or cause to be undertaken specialized technical

studies to advance the inhouse technology of the Department and
secure the most complete information for project development and
implementation purposes;

(4) Formulate technical training programs for Department technical

personnel, including the identification of appropriate local and foreign
training programs, and recommend the selection of Department
personnel for such programs;

(5) Review and study, for the purpose of recognizing new

technologies especially those utilizing indigenous resources, current
national building and construction standards and procedures and
make appropriate recommendations thereon;

(6) Promote, publish and disseminate technical publications;

(7) Provide technical assistance to the Department Proper, other

Bureaus, Regional Offices and other agencies on matters within its
competence, including technical assistance in the upgrading or
updating of the Building Code, and other services;
(8) Cooperate or coordinate with other established research,
development, and engineering centers in areas of common or
national interests; and

(9) Perform such other duties and responsibilities as may be

assigned or delegated by the Secretary or as may be required by law.

Section 16. Bureau of Design. - The Bureau of Design shall ascertain

that all government infrastructure project implementation plans and
designs are consistent with current standards and guidelines. For this
purpose, it shall have the following duties and responsibilities:

(1) Conduct or initiate, supervise and review the results of field

surveys for highways, flood control and water resource development
systems, and other public works projects, including aerial, hydrologic,
hydrographic, topographic, geotechnical and other investigations;

(2) Conduct or initiate, supervise and review the preparation of

schemes, designs, specifications, estimates, tender and contract
documents covering the architectural, structural, mechanical,
electrical and other technical design aspects of highways, flood
control and other projects of the Department or of other departments
upon request or agreement;

(3) Review and evaluate the designs, specifications, estimates,

tender and contract documents covering the architectural, structural,
mechanical, electrical and other technical design aspects of public
works projects of all agencies in accordance with current standards
and guidelines;

(4) Provide technical assistance in the selection of firms or entities

that shall undertake actual construction of public works projects via
participation in the technical evaluation aspect of the bidding/award
process; and

(5) Perform such other related duties and responsibilities as may be

assigned or delegated by the Secretary of as may be required by law.

Section 17. Bureau of Construction. - The Bureau of Construction

shall provide technical services on construction works for
infrastructure projects and facilities. For this purpose, it shall have the
following duties and responsibilities:

(1) Formulate policies relating to construction management and

contract administration;

(2) Review and evaluate construction programs, estimates, tender

and contract documents;

(3) Inspect, check and monitor construction and works supervision

activities of field implementing offices for the purpose of ensuring that
such activities are being conducted in accordance with the current
standards and guidelines of the Department;

(4) Provide specialist support to implementing field offices on

construction management and contract administration; and

(5) Perform such other related duties and responsibilities as may be

assigned or delegated by the Secretary or as may be required by law.

Section 18. Bureau of Maintenance. - The Bureau of Maintenance

provides technical services on the maintenance and repair of
infrastructure projects and facilities. For this purpose, it shall have the
following duties and responsibilities:

(1) Formulate policies relating to the maintenance of infrastructure

projects and facilities;

(2) Review and evaluate maintenance programs, estimates and

tender and contract documents;

(3) Inspect, check, and monitor maintenance activities of

implementing field offices for the purpose of ensuring that such
activities are being conducted in accordance with the current
standards and policies of the Department;

(4) Provide specialist support to implementing field offices on the

maintenance of infrastructure projects and facilities;
(5) Perform such other related duties and responsibilities as may be
assigned or delegated by the Secretary or as may be required by law.

Section 19. Bureau of Equipment. - The Bureau of Equipment

provides technical services on the management of construction and
maintenance equipment and ancillary facilities. For this purpose it
shall have the following duties and responsibilities:

(1) Formulate policies relating to the management of infrastructure

equipment and ancillary facilities;

(2) Review and evaluate programs, estimates, tender and contract

documents for equipment;

(3) Inspect, check and monitor the management of equipment by

regional equipment services and area shops for the purpose of
ensuring that such activities are being conducted in accordance with
the current standards and policies of the Department;

(4) Provide specialist support to implementing field offices on

equipment management; and

(5) Perform such other related duties and responsibilities as may be

assigned or delegated by the Secretary or as may be required by law.

CHAPTER 5
REGIONAL OFFICES

Section 20. Regional Offices. - Regional Offices shall be responsible

for highways, flood control and water resource development systems,
and other public works within the region, except those defined in
Section 3, par. (4) hereof. For this purpose, their duties and
responsibilities shall be as follows:

(1) Undertake and evaluate the planning, design, construction and

works supervision functions of the Department for the above
mentioned infrastructure within the region;

(2) Undertake the maintenance of the above mentioned infrastructure

within the region and supervise the maintenance of such local road
and other infrastructure receiving national government financial
assistance as the Secretary may determine;

(3) Ensure the implementation of laws, policies, programs, rules and

regulations regarding the above mentioned infrastructure as well as
all public and private physical structures;

(4) Provide technical assistance related to their functions to other

agencies within the region, especially the local government;

(5) Coordinate with other departments, agencies, institutions and

organizations, especially local government units within the region in
the planning and implementation of infrastructure projects;

(6) Conduct continuing consultations with the local communities, take

appropriate measures to make the services of the Department
responsive to the needs of the general public, compile and submit
such information to the central office, and recommend such
appropriate actions as may be necessary; and

(7) Perform such other related duties and responsibilities as may be

assigned or delegated by the Secretary or as may be required by law.

The Department shall retain and have such Project Management

Offices as may be required which shall be under the supervision and
control of the appropriate Regional Director, unless otherwise
determined by the Secretary for reasons of supra-regional scope,
magnitude, and multi-functional coverage.

Section 21. Regional Director. - The Regional Office shall be headed

by a Regional Director who shall be responsible for efficiently and
effectively carrying out the duties and responsibilities of the Regional
Office. Towards this end, and in line with the policy of
decentralization, he shall, within his defined powers, exercise
functional and administrative supervision over District Offices within
the region including the authority to commit their resources and
personnel to integrated province or city-wide development thrusts.
He shall also perform such other related duties and responsibilities as
may be assigned or delegated by the Secretary or as may be
required by law.

The Regional Director shall be assisted by two (2) Assistant Regional

Directors who shall exercise supervision, respectively over: (1) the
construction, maintenance and works supervision functions in the
region; and (2) the planning, project design, evaluation and technical
assistance functions of the Regional Office.

Section 22. District Office. - There shall be a District Office in each of

the provinces and cities throughout the country to be headed by a
District Engineer appointed by the Secretary. A province or city may,
however, be divided into two (2) or more engineering districts, upon
determination and issuance of an administrative order by the
Secretary. The District Office shall be responsible for all highways,
flood control and water resource development systems, and other
public works within the district, except those defined under Section 3,
par. (4) hereof. For this purpose, it shall have the following duties and
responsibilities:

(1) Undertake and evaluate the planning, design, construction, and

works supervision functions of the Department for the above
mentioned infrastructure in the district;

(2) Undertake the maintenance of the abovementioned infrastructure

within the district and supervise the maintenance of such local roads
and other infrastructure receiving national government financial
assistance as the Secretary may determine;

(3) Coordinate with other departments, agencies, institutions, and

organizations, especially local government units within the district in
the planning and implementation of infrastructure projects;

(4) Provide technical assistance to other agencies at the local level

on public works planning, design, construction, maintenance and
other engineering matters including securing from the Regional Office
or, through the same office, assistance from the Department Proper
or Bureaus;
(5) Conduct continuing consultations with the local communities, take
appropriate measures to make the services of the Department
responsive to the needs of the general public, compile and submit
such information to the Regional Office and recommend such
appropriate actions as may be necessary; and

(6) Perform such other related duties and responsibilities as may be

assigned or delegated by the Secretary or as may be required by law.

Section 23. District Engineer. - The District Engineer of or within a

province or city shall be accountable for the efficient and effective
conduct of the duties and responsibilities of the District Office of
which he is the head. Within his defined powers, he shall exercise
functional and administrative supervision over district operations
including the authority to recommend that field resources and
personnel be committed to integrated district-wide development
thrusts. He shall also perform such other related duties and
responsibilities as may be assigned or delegated by the Secretary or
as may be required by law.

Section 24. Equipment Services. - The Regional Equipment Services,

including regional depots and area shops are hereby reorganized to
undertake the management, repair, maintenance and rehabilitation of
construction and maintenance equipment. Each depot or shop shall
be operated, to the extent practicable, as a profit center. The
Regional Equipment Services shall be under the administrative
supervision of the Regional Director and technical supervision of the
Bureau of Equipment.

CHAPTER 6
ATTACHED AGENCIES

Section 25. Attached Agencies and Corporations. - Agencies and

corporations attached to the Department shall continue to operate
and function in accordance with their respective
charters/laws/executive orders creating them. Accordingly, the
Metropolitan Waterworks and Sewerage System, the Local Water
Utilities Administration, the National Irrigation Administration, and the
National Water Resources Council, among others, shall continue to
be attached to the Department; while the Metropolitan Manila Flood
Control and Drainage Council, as reorganized, shall be attached to
the Department.

Title VI

EDUCATION, CULTURE AND SPORTS

CHAPTER 1
GENERAL PROVISIONS

Section 1. Declaration of Policy. - The State shall protect and

promote the right of all citizens to quality education at all levels and
shall take appropriate steps to make such education accessible to all.
Pursuant to this, the State shall:

1) Establish, maintain and support a complete, adequate, and

integrated system of education relevant to the needs of the people
and society;

2) Establish and maintain a system of free public education in the

elementary and high school levels. Without limiting the natural right of
parents to rear their children, elementary education is compulsory for
all children of school age;

3) Establish and maintain a system of scholarship grants, student

loan programs, subsidies, and other incentives which shall be
available to deserving students in both public and private schools,
especially to the underprivileged;

4) Encourage non-formal, informal, and indigenous learning systems,

as well as self-learning, independent, and out-of-school study
programs particularly those that respond to community needs; and

5) Provide adult citizens, the disabled, and out-of-school youth with

training in civics, vocational efficiency, and other skills.

Section 2. Mandate. - The Department shall be primarily responsible

for the formulation, planning, implementation and coordination of the
policies, plans, programs and projects in the areas of formal and non-
formal education at all levels, supervise all educational institutions,
both public and private, and provide for the establishment and
maintenance of a complete, adequate and integrated system of
education relevant to the goals of national development.

Section 3. Powers and Functions. - To accomplish its mandate and

objectives, the Department shall have the powers and functions of
formulating, planning, implementing and coordinating the policies,
plans, programs and projects for the following:

(1) Elementary, secondary, physical and international education;

(2) Non-formal and vocational or technical education;

(3) Higher education;

(4) Development of culture;

(5) Foreign and locally assisted projects and other activities relative to
Subsections (1), (2), (3) and (4); and

(6) Perform such other functions as may be provided by law.

Section 4. Organizational Structure. - The Department, aside from

the Department Proper, shall consist of Bureau and Regional Offices.

CHAPTER 2
DEPARTMENT PROPER

Section 5. Office of the Secretary. - The Office of the Secretary shall

be composed of the Secretary and his immediate staff.

Section 6. Undersecretaries. - The Secretary shall be assisted by

five (5) Undersecretaries, each of whom shall be responsible for the
following:

(1) Elementary education, secondary education, physical education

and international education programs and centers;

(2) Non-formal education, vocational/technical education, and youth

organizations;
(3) Higher education, cultural agencies, and foreign assisted projects;

(4) Internal administration and management, and regional

coordination; and

(5) Legal and legislative affairs, and other attached agencies and
centers.

CHAPTER 3
DEPARTMENT SERVICES

Section 7. Functions of the Services. - The Services of the

Department shall consist of the following:

(1) The Planning Service shall be responsible for providing the

Department with economical, efficient, and effective services relating
to planning, programming, and project development;

(2) The Financial and Management Service shall be responsible for

providing the Department with staff advice and assistance on
budgetary, financial, and management improvement matters;

(3) The Administrative Service shall be responsible for providing the

Department with economical, efficient, and effective services relating
to legal assistance, information, records, supplies or equipment,
collection, disbursement, security and custodial work;

(4) The Human Resources Development Service, shall:

(a) Develop and administer a personnel program which shall include

selection and placement, classification and pay, career, and
employment development, performance rating, employee relations
and welfare services;

(b) Act on all matters concerning attendance, leaves of absences,

appointments, promotions, and other personnel transactions; and

(c) Conduct training programs in the Department.

(5) The Technical Service, which includes the Office of the Head
Executive Assistant and the Information and Publication Service shall
take charge of technical staff activities which cannot be allocated to
the four (4) other services.

CHAPTER 4
BOARD OF HIGHER EDUCATION

Section 8. Organization. - The Board shall be composed of an

Undersecretary of the Department of Education, Culture and Sports
designated as Chairman and four other members to be appointed by
the President of the Philippines upon nomination by the Secretary of
Education, Culture and Sports for a term of four years. The four
members shall have distinguished themselves in the field of higher
education and development either in the public or private sector. The
Director of the Bureau of Higher Education shall participate in the
deliberation of the Board but without the right to vote.

Section 9. Functions. - The Board of Higher Education shall:

(1) Articulate the policy and support the framework for both public and
private post-secondary education;

(2) Make policy recommendations regarding the planning and

management of the integrated system of higher education and the
continuing evaluation thereof;

(3) Recommend to the Secretary of Education, Culture and Sports

steps to improve the governance of the various components of the
higher education system at national and regional levels; and

(4) Assist the Secretary of Education, Culture and Sports in making

recommendations relative to the generation of resources and their
allocation for higher education.

Section 10. Staff Assistance. - The Bureau of Higher Education shall

provide the Board with the necessary technical and staff support;
Provided, That the Board may create technical panels of experts in
the various disciplines as the need arises.
CHAPTER 5
STATE COLLEGES AND UNIVERSITIES

Section 11. Governance. - By virtue of his chairmanship of their

boards of trustees as provided in their respective charters, the
Secretary, directly or through his Undersecretaries, shall continue to
govern state colleges and universities.

CHAPTER 6
BUREAUS AND OFFICES

Section 12. Bureau of Elementary Education. - The Bureau of

Elementary Education shall have the following functions:

(1) Conduct studies and formulate, develop, and evaluate programs

and educational standards for elementary education;

(2) Undertake studies necessary for the preparation of prototype

curricular designs, instructional materials and teacher training
programs for elementary education;

(3) Formulate guidelines to improve elementary school physical plans

and equipment, and general management of these schools; and

(4) Perform such other functions as may be provided by law.

Section 13. Bureau of Secondary Education. - The Bureau of

Secondary Education shall have the following functions:

(1) Conduct studies and formulate, develop and evaluate programs

and educational standards for secondary education;

(2) Develop curricular designs, prepare instructional materials, and

prepare and evaluate programs to upgrade the quality of the teaching
and non-teaching staff at the secondary level;

(3) Formulate guidelines to improve the secondary schools physical

plants and equipment, and general management of these schools;
and
(4) Perform such other functions as may be provided by law.

Section 14. Bureau of Technical and Vocational Education. - The

Bureau of Technical and Vocational Education shall have the
following functions:

(1) Collaborate with other agencies in the formulation of manpower

plans;

(2) Conduct studies, formulate, develop and evaluate post-secondary

vocational technical staff, and formulate guidelines to improve the
physical plant and equipment of post-secondary vocational-technical
schools; and

(3) Develop curricular designs and prepare instructional materials,

prepare and evaluate programs to upgrade the quality of teaching
and non-teaching staff, and formulate guidelines to improve the
physical plant and equipment of post-secondary, vocational/technical
schools.

Section 15. Bureau of Higher Education. - The Bureau of Higher

Education shall have the following functions:

(1) Develop, formulate and evaluate programs, projects and

educational standards for higher education;

(2) Provide staff assistance to the Board of Higher Education in its

policy and advisory functions;

(3) Provide technical assistance to encourage institutional

development programs and projects;

(4) Compile, analyze and evaluate data on higher education; and

(5) Perform other functions provided by law.

Section 16. Bureaus of Non-Formal Education. - The Bureau of Non-

Formal Education shall have the following functions:
(1) Serve as a means of meeting the learning needs of those unable
to avail themselves of the educational services and programs of
formal education;

(2) Coordinate with various agencies in providing opportunities for the

acquisition of skills necessary to enhance and ensure continuing
employability, efficiency, productivity, and competitiveness in the
labor market; and

(3) Serve as a means for expanding access to educational

opportunities to citizens of varied interests, demographic
characteristics and socio-economic origins of status.

Section 17. Bureau of Physical Education and School Sports. - The

Bureau of Physical Education and School Sports shall have the
following functions:

(1) Develop human resources through mass-based sports education;

(2) Improve the general fitness of the citizenry;

(3) Promote social and cultural integration through the revival of

indigenous games and sports;

(4) Identify and nurture sports talents and promote excellence in

sports, traditional games and other physical activities; and

(5) Perform such other functions as may be provided by law.

CHAPTER 7
REGIONAL OFFICES

Section 18. Organization. - The Department is hereby authorized to

establish, operate and maintain a Regional Office in each of the
administrative regions of the country. Each Regional Office shall be
headed by a Regional Director who shall be assisted by an Assistant
Regional Director. The Regional Director shall be responsible for the
School Divisions and their Superintendents within his administrative
region.
Section 19. Functions. - A Regional Office shall have, within its
administrative region, the following functions:

(1) Formulate the regional plan of education based on the national

plan of the Department taking into account the specific needs and
special traditions of the region;

(2) Implement laws, rules, regulations, policies, plans, programs and

projects of the Department;

(3) Provide economical, efficient and effective education service to

the people;

(4) Coordinate with regional offices of other Departments, Offices and

agencies in the region;

(5) Coordinate with local government units; and

(6) Perform such other functions as may be provided by law.

CHAPTER 8
ATTACHED AGENCIES

Section 20. Attached Agencies. - The following agencies are hereby

attached to the Department:

(1) National Museum;

(2) National Library;

(3) National Historical Institute;

(4) Institute of Philippine Languages;

(5) Instructional Materials Corporation;

(6) Instructional Materials Council;

(7) Educational Development Projects Implementing Task Force;

(8) Educational Assistance Policy Council;

(9) National Youth and Sports Development Board;

(10) National Social Action Council;

(11) National Board of Teachers;

(12) Boy Scouts of the Philippines;

(13) Girl Scouts of the Philippines; and

(14) Records Management and Archives Office.

Section 21. Supervised and Controlled Agencies. - The Department

shall exercise supervision and control over the following agencies:

(1) Health and Nutrition Center; and

(2) National Education Testing and Research Center.

Section 22. Functions and Duties. - The agencies attached to as well

as those under the supervision and control of the Department shall
continue to operate and function in accordance with their respective
charters or laws creating them except as otherwise provided in this
Code.

CHAPTER 9
MISCELLANEOUS PROVISIONS

Section 23. Medium of Instruction. - The Department shall promulgate

rules and the regulations on the medium of instruction for all schools
in accordance with the policy declared in Section 7, Article XIV of the
Constitution.

Section 24. School Year. -

1) The school year for public and private schools shall consist of not
less than forty (40) weeks for the elementary and secondary levels,
and thirty-six (36) weeks for the college level or eighteen (18) weeks
a semester.

2) The opening date shall be fixed by the Secretary, but it shall not be
earlier than the first day of June nor later than the last day of July of
each year unless prevented by fortuitous events.

3) The long school vacation period shall likewise be fixed by the

Secretary taking into consideration the convenience of the pupils and
the special climatic conditions prevailing during the said period.

4) The dates established for the long school vacation shall not be
changed oftener than one every five (5) years without prior public
hearing properly advertised in a newspaper of general circulation or
announced by the school authorities concerned.

Section 25. School Holidays. - All schools, whether public or private,

shall not hold classes on public holidays, whether regular or special.
On holidays especially proclaimed by the President, the schools in
the municipality, city or province affected by the proclamation shall
not hold classes. The Secretary may, by reason of public calamity or
emergency, order the closure of any school, public or private, as may
have been affected thereby for such period as necessity may
demand.

Section 26. School Sessions. - The regular daily sessions of all public
and private schools shall be held during the hours fixed by the
Secretary or his duly authorized representatives. Except in college,
no class sessions shall be held on Saturdays, Sundays, or holidays
unless to offset class sessions suspended by competent authority.

Section 27. School Rituals. -

(1) School rituals prepared and prescribed by the Secretary shall be

observed in all public and private elementary and secondary schools
in the Philippines.

2) The school rituals shall consist of solemn and patriotic mass

singing of the Philippine National Anthem and the recitation of
prescribed patriotic pledges.
3) The rituals shall be held in school premises as often as may be
practicable under the direction of the respective school authorities.

Section 28. Flag Ceremony. -

1) All educational institutions shall observe a simple and dignified flag

ceremony, including the playing or singing of the Philippine National
Anthem.

2) The flag ceremony shall be conducted under the rules and

regulations issued by the Secretary.

3) Failure or refusal to observe the flag ceremony in accordance with

the rules and regulations issued by the Secretary shall, after proper
notice and hearing, subject the educational institution concerned and
its head to public censure as an administrative punishment, which
shall be published at least once in a newspaper of general circulation.

4) Failure to observe for the second time the said flag ceremony
shall, after notice and hearing, be a ground for the cancellation of the
recognition or the permit of the private educational institution
concerned.

5) Any teacher or student or pupil who refuses to join or participate in

the flag ceremony may be dismissed after due investigation .

Section 29. Local School Boards. - In every province, city or

municipality, there shall be established a Provincial School Board,
City School Board and Municipal School Board, respectively, whose
composition, powers, functions and duties shall be provided by law.

Title VII

LABOR AND EMPLOYMENT

CHAPTER 1
GENERAL PROVISIONS

Section 1. Declaration of Policy. -

(1) The State shall afford full protection to labor and promote full
employment and equality of employment opportunities for all.

It shall guarantee the rights of all workers to self-organization,

collective bargaining negotiations, and peaceful concerted activities,
including the right to strike in accordance with law. They shall be
entitled to security of tenure, humane conditions of work, and a living
wage. They shall also participate in policy and decision-making
processes affecting their rights and benefits as may be provided by
law.

(2) The State shall promote the principle of shared responsibility

between workers and employers and the preferential use of voluntary
modes in settling disputes, including conciliation, and shall enforce
their mutual compliance therewith to foster industrial peace.

(3) The State shall regulate the relations between workers and
employers, recognizing the right of labor to its just share in the fruits
of production and the right of enterprises to reasonable returns on
investments, and to expansion and growth.

Section 2. Mandate. - The Department shall be the primary policy-

making, programming, coordinating and administrative entity of the
Executive Branch of the government in the field of labor and
employment. It shall assume primary responsibility for:

(1) The promotion of gainful employment opportunities and the

optimization of the development and utilization of the country's
manpower resources;

(2) The advancement of workers' welfare by providing for just and

humane working conditions and terms of employment;

(3) The maintenance of industrial peace by promoting harmonious,

equitable, and stable employment relations that assure equal
protection for the rights of all concerned parties.

Section 3. Powers and Functions. - The Department of Labor and

Employment shall:
(1) Enforce social and labor legislation to protect the working class
and regulate the relations between the worker and his employer;

(2) Formulate and recommend policies, plans and programs for

manpower development, training, allocation, and utilization;

(3) Recommend legislation to enhance the material, social and

intellectual improvement of the nation's labor force;

(4) Protect and promote the interest of every citizen desiring to work
locally or overseas by securing for him the most equitable terms and
conditions of employment, and by providing social and welfare
services;

(5) Regulate the employment of aliens, including the enforcement of a

registration or work permit system for such aliens, as provided for by
law;

(6) Formulate general guidelines concerning wage and income policy;

(7) Recommend necessary adjustments in wage structures with a

view to developing a wage system that is consistent with national
economic and social development plans;

(8) Provide for safe, decent, humane and improved working

conditions and environment for all workers, particularly women and
young workers;

(9) Maintain a harmonious, equitable and stable labor relations

system that is supportive of the national economic policies and
programs;

(10) Uphold the right of workers and employers to organize and

promote free collective bargaining as the foundation of the labor
relations system;

(11) Provide and ensure the fair and expeditious settlement and
disposition of labor and industrial disputes through collective
bargaining, grievance machinery, conciliation, mediation, voluntary
arbitration, compulsory arbitration as may be provided by law, and
other modes that may be voluntarily agreed upon by the parties
concerned; and

(12) Perform such other functions as may be provided by law.

Section 4. Organizational Structure. - The Department shall consist

of the Office of the Secretary, and Undersecretaries and Assistant
Secretaries, the Services and Staff Bureaus, and the Regional
Offices.

CHAPTER 2
DEPARTMENT PROPER

Section 5. Office of the Secretary. - The Office of the Secretary shall

consist of the Secretary and his immediate staff.

Section 6. Joint RP-US Labor Committee Staff . - There is hereby

created in the Office of the Secretary a Joint RP-US Labor Committee
Staff which shall provide technical and other necessary services to
the Philippine panel in the Joint Labor Committee created under the
RP-US Base Labor Agreement and for other special projects. The
unit shall be headed by a Head Executive Assistant who shall be
assisted by five (5) staff assistants.

Section 7. Undersecretary. - The Secretary shall be assisted by not

more than four (4) Undersecretaries who shall be appointed by the
President upon the recommendation of the Secretary. The Secretary
is hereby authorized to delineate and assign the respective functional
areas of responsibility of the Undersecretaries.

Section 8. Assistant Secretaries. - The Secretary shall likewise be

assisted by not more than four (4) Assistant Secretaries who shall be
appointed by the President upon the recommendation of the
Secretary. The Secretary is hereby authorized to delineate and
assign the respective areas of functional responsibility of the
Assistant Secretaries. Within his functional area of responsibility, the
Assistant Secretary shall assist the Secretary and Undersecretaries
in the formulation, determination and implementation of laws, policies,
plans, programs and projects on labor and shall oversee the day-to-
day administration and supervision of the constituent units of the
Department.

CHAPTER 3
DEPARTMENT SERVICES

Section 9. Planning Service. - The Planning Service shall provide the

Department with efficient, effective and economical services relating
to planning, programming, project development and evaluation, and
the development and implementation of a management information
system.

Section 10. Administrative Service. - The Administrative Service shall

provide the Department with efficient, effective and economical
services relating to records, management, supplies, equipment,
collections, disbursements, building administration and maintenance,
security and custodial work.

Section 11. Human Resource Development Service. - The Human

Resource Development Service shall provide the Department with a
program and corresponding projects that shall make available
training, education and development opportunities needed to upgrade
the levels of competence and productivity of Department managers
and personnel. It shall absorb the powers and functions of the
Administrative Service in relation to the development and
administration of personnel programs including selection and
placement, development, performance evaluation, employee relations
and welfare.

Section 12. Financial Management Service. - The Financial and

Management Service shall be responsible for providing the
Department with efficient, effective and economical services relating
to budgetary, financial, management improvement and internal
control matters.

Section 13. Legal Service. - The Legal Service shall provide legal
advice and service to Department officers and employees; prepare
informative or clarificatory opinions on labor laws, rules and
regulations for uniform interpretation thereof; answer legal queries
from the public; assist the Office of the Solicitor General in suits
involving the Department or its officers or employees or act as their
principal counsel in all actions taken in their official capacity or other
causes before judicial or administrative bodies.

Section 14. International Labor Affairs Service. - The International

Labor Affairs Service shall be responsible for monitoring the
observance and implementation of all obligations, courtesies, and
facilities required by international labor affairs, particularly the
International Labor Organization, the Conference of Asian Pacific
Labor Ministries, the Association of Southeast Asian Nations Labor
Ministries Meeting, of which the Philippines is a member, and related
international labor standards and agreements reached in various
international labor forums, treaties, and other multilateral, bilateral or
multi-bilateral agreements in the area of labor and employment;
provide staff support and policy guidelines to the Secretary in the
supervision, monitoring and reporting of the activities of the Philippine
overseas labor officers assigned in different countries; serve as the
instrumentality of the Department for technical cooperation, programs
and activities with other countries and international institutions.

Section 15. Information and Publication Service. - The Information

and Publication Service shall be responsible for rapport and
understanding between the Department and the public through the
development of public relations programs and the dissemination of
accurate and updated information on labor and employment, by
means of publications and media coverages of special events and
related matters on the Department's policies, plans, programs, and
projects; likewise, it shall be responsible for providing answers to
queries from the public regarding the Department's policies, rules,
regulations, programs, activities and services.

CHAPTER 4
BUREAUS

Section 16. Bureau of Labor Relations. - The Bureau of Labor

Relations shall set policies, standards, and procedures on the
registration and supervision of legitimate labor union activities
including denial, cancellation and revocation of labor union permits. It
shall also set policies, standards, and procedure relating to collective
bargaining agreements, and the examination of financial records of
accounts of labor organizations to determine compliance with
relevant laws.

The Bureau shall also provide proper orientation to workers on their

schemes and projects for the improvement of the standards of living
of workers and their families.

Section 17. Bureau of Local Employment. - The Bureau of Local

Employment shall:

(1) Formulate policies, standards and procedures on productive

manpower resources, development, utilization and allocation.

(2) Establish and administer a machinery for the effective allocation of

manpower resources for maximum employment and placement;

(3) Develop and maintain a responsive vocational guidance and

testing system in aid of proper human resources allocation;

(4) Regulate and supervise private sector participation in the

recruitment and placement of workers locally under such rules and
regulations as may be issued by the Secretary;

(5) Establish and maintain a registration or work permit system to

regulate employment of aliens;

(6) Develop and maintain a labor market information system in aid of

proper manpower and development planning;

(7) Formulate employment programs designed to benefit

disadvantaged groups and communities; and

(8) Perform other functions as may be provided by law.

Section 18. Bureau of Women and Young Workers. - The Bureau of

Women and Young Workers shall:

(1) Formulate policies and promulgate orders, rules and regulations

implementing the provisions of the Labor Code affecting working
women and minors;
(2) Set standards which shall protect the welfare of the working
women and minors, improve their working conditions, increase their
efficiency, secure opportunities for their profitable employment and
find ways for their economic, educational, social and cultural
advancement;

(3) Prepare and recommend to the Secretary of Labor and

Employment the approval and issuance of such rules and regulations
necessary in the interpretation of all laws relating to the employment
of women and minors;

(4) Undertake studies and submit recommendations on the

employment of women and minors in commercial, industrial and
agricultural establishments and other places of labor;

(5) Act as the government's clearinghouse of all information relating

to working women and minors;

(6) Undertake development studies on the training needs of women

and minors and develop programs and projects to enhance their
productivity and effective participation in community development;

(7) Protect every child employed in the movie, television, radio and
entertainment industries against exploitation, improper influences,
hazards and other conditions or circumstances prejudicial to his
physical, mental, emotional, social and moral development.

(8) Undertake projects and in-service training programs for working

children to improve their potentials for employment and their
capabilities and physical fitness, increase their efficiency, secure
opportunities for their promotion, prepare them for more responsible
positions, and provide for their social, educational and cultural
advancement, in cooperation with labor and management; and

(9) Perform such other functions as may be provided by law.

Section 19. Bureau of Rural Workers. - The Bureau of Rural Workers

shall:
(1) Assist rural workers, displaced farmers, and migratory workers in
seeking gainful employment;

(2) Conduct studies and draw up programs for re-training of displaced

agricultural workers;

(3) Coordinate with regional offices and local government units in

preparing a census of rural workers seeking employment; and

(4) Perform such other functions as may be assigned by the

Secretary.

Section 20. Bureau of Working Conditions. - The Bureau of Working

Conditions shall:

(1) Develop and prescribe safety standards, measures and devices;

promote safety consciousness and habits among workers; develop
and evaluate occupational safety and health programs for workers;

(2) Develop plans, programs, standards and procedures for the

enforcement of laws relating to labor standards, including the
operation of boilers, pressure vessels, machinery, internal
combustion engines, elevators, electrical equipment, wiring
installations, and the construction, demolition, alteration and use of
commercial and industrial buildings and other workplaces;

(3) Prepare rules and regulations, interpretative bulletins and legal

opinions relating to the administration and enforcement of labor
standards; and provide manuals and plan programs for the training of
field personnel;

(4) Provide technical and legal assistance to the Labor Standards

Commission; and

(5) Perform such other functions as may be provided by law.

Section 21. Institute for Labor Studies. - The Institute for Labor
Studies shall be attached to the Department of Labor and
Employment. For policy and program coordination and administrative
supervision, the Institute shall absorb the research and publication
functions of the Institute of Labor and Manpower Studies. The
Institute, to be headed by an Executive Director, assisted by a Deputy
Executive Director, shall have the following functions:

(1) Undertake research and studies in all areas of labor and

manpower policy and administration;

(2) Review the rationale of existing legislation and regulations and

analyze the costs involved in the implementation of such legislation
against the benefits expected to be derived;

(3) Study and develop innovative and indigenous approaches

towards the promotion of harmonious and productive labor-
management and the improvement of workers' welfare services;

(4) Develop and undertake research programs and projects in

collaboration with other national agencies to enhance the
Department's capability to participate in national decision and policy
making;

(5) Enter into agreements with international or bilateral agencies for

the carrying out of the foregoing functions;

(6) Expand the scope of its research interests into other countries and
regions;

(7) Publish its research studies for dissemination to government as

well as to all concerned parties; and

(8) Perform such other functions as may be provided by law.

Section 22. Bureau of Labor and Employment Statistics. - The Bureau

of Labor and Employment Statistics shall:

(1) Formulate, develop and implement plans and programs on the

labor statistical system in order to provide the government with timely,
accurate and reliable data on labor and employment;

(2) Conduct nationwide surveys and studies which will generate

trends and structures on labor and employment;
(3) Develop and prescribe uniform statistical standards,
nomenclatures and methodologies for the collection, processing,
presentation and analysis of labor and employment data;

(4) Establish appropriate mechanisms for the coordination of all

statistical activities in the Department and for collaboration with other
government and private agencies including international research
organizations in the conduct of surveys and studies in the area of
labor and employment;

(5) Disseminate statistical information and provide statistical services

or advice to the users by establishing a data bank and issuing the
Bureau's statistical materials and research findings;

(6) Develop and undertake programs and projects geared toward

enhancement of the technical competence of the Department on
theories, techniques and methodologies for the improvement of the
labor statistical system;

(7) Monitor and exercise technical supervision over the statistical

units in the Department and its agencies; and

(8) Perform such other functions as may be provided by law or

assigned by the Secretary.

Section 23. National Conciliation and Mediation Board. - The National

Conciliation and Mediation Board, shall absorb the conciliation,
mediation and voluntary arbitration functions of the Bureau of Labor
Relations. The Board shall be composed of an Administrator and two
(2) Deputy Administrators. It shall be an attached agency under the
administrative supervision of the Secretary of Labor and Employment.

The Administrator and the Deputy Administrators shall be appointed

by the President upon recommendation of the Secretary of Labor and
Employment. There shall be as many Conciliators-Mediators as the
needs of the public service require, who shall have at least three (3)
years of experience in handling labor relations and who shall be
appointed by the Secretary. The Board shall have its main office in
Metropolitan Manila and its Administrator shall exercise supervision
over Conciliators-Mediators and all its personnel. It shall establish as
many branches as there are administrative regions in the country,
with as many Conciliators-Mediators as shall be necessary for its
effective operation. Each branch of the Board shall be headed by an
Executive Conciliator-Mediator.

The Board shall have the following functions:

(1) Formulate policies, programs, standards, procedures, manuals of

operation and guidelines pertaining to effective mediation and
conciliation of labor disputes;

(2) Perform preventive mediation and conciliation functions;

(3) Coordinate and maintain linkages with other sectors or

institutions, and other government authorities concerned with matters
relative to the prevention and settlement of labor disputes;

(4) Formulate policies, plans, programs, standards, procedures,

manuals of operation and guidelines pertaining to the promotion of
cooperative and non-adversarial schemes, grievance handling,
voluntary arbitration and other voluntary modes of dispute settlement;

(5) Administer the voluntary arbitration program; maintain or update a

list of voluntary arbitrations; compile arbitration awards and decisions;

(6) Provide counselling and preventive mediation assistance

particularly in the administration of collective agreements;

(7) Monitor and exercise technical supervision over the Board

programs being implemented in the regional offices; and

(8) Perform such other functions as may be provided by law or

assigned by the Secretary.

The Tripartite Voluntary Arbitration Advisory Council, which is

attached to the National Conciliation and Mediation Board, shall
advise the National and Conciliation and Mediation Board on matters
pertaining to the promotion of voluntary arbitration as the preferred
mode of dispute settlement.
The Tripartite Voluntary Arbitration Advisory Council shall consist of
the Administrator of the National Conciliation and Mediation Board as
Chairman, one other member from the government, two (2) members
representing labor, and two (2) other members representing
management. The members shall be appointed by the President to
serve for a term of three (3) years. The Chairman and Members shall
serve without compensation.

CHAPTER 5
REGIONAL OFFICES

Section 24. Regional Offices, District Offices and Provincial Extension

Units. - The Department is hereby authorized to establish, operate
and maintain such Department-wide Regional Offices, District Offices
and Provincial Extension Units in each of the administrative regions
of the country, insofar as necessary to promote economy and
efficiency in the delivery of its services. Its Regional Office shall be
headed by a Regional Director who shall have supervision and
control thereof. The Regional Director, whenever necessary, shall be
assisted by an Assistant Regional Director. A Regional Office shall
have, within its regional areas, the following functions:

(1) Implement laws, policies, plans, programs, projects, rules and

regulations of the Department;

(2) Provide economical, efficient and effective service to the people;

(3) Coordinate with regional offices of other departments and

agencies;

(4) Coordinate with local government units; and

(5) Perform such other functions as may be provided by law or

assigned by the Secretary.

CHAPTER 6
ATTACHED AGENCIES
Section 25. Attached Agencies. - The following agencies are attached
to the Department for policy and program coordination and
administrative supervision:

(1) National Wages Council;

(2) Philippine Overseas Employment Administration;

(3) Employees' Compensation Commission (ECC) which shall include

the Executive Director of the ECC as an ex officio member of the
Commission;

(4) The National Manpower and Youth Council;

(5) The National Labor Relations Commission;

(6) Overseas Workers' Welfare Administration;

(7) Maritime Training Council; and

(8) National Maritime Polytechnic.

Title VIII

NATIONAL DEFENSE

Subtitle I

PRELIMINARY PROVISIONS

CHAPTER 1
NATIONAL DEFENSE POLICIES

Section 1. Declaration of Policies. -

(1) The prime duty of the Government is to serve and protect the
people. Government may call upon the people to defend the State
and, in fulfillment thereof, all citizens may be required, under
conditions provided by law, to render personal military or civil service.
(2) Civilian authority is, at all times, supreme over the military. The
Armed Forces of the Philippines is the protector of the people and the
State. Its goal is to secure the sovereignty of the State and the
integrity of the national territory.

CHAPTER 2
NATIONAL SECURITY COUNCIL

Section 2. Declaration of Policies. -

(1) The formulation of integrated and rationalized national, foreign,

military, political, economic, social and educational policies,
programs, and procedures vital to the security of the state.

(2) The national interest requires that an agency exist to formulate

and adopt policies, programs, and procedures on all matters
pertaining to or affecting the national security so that judgments and
actions thereon by the President may rest on sound advice and
accurate information.

Section 3. Mandate. - The National Security Council shall serve as

the lead agency of the government for coordinating the formulation of
policies, relating to or with implications on the national security.

Section 4. Composition. - The National Security Council, hereinafter

referred to as Council, shall be composed of the President as
Chairman, the Vice-President, the Secretary of Foreign Affairs, the
Executive Secretary, the Secretary of National Defense, the
Secretary of Justice, the Secretary of Labor and Employment, the
Secretary of Local Governments, the National Security Director, the
Chief of Staff of the Armed Forces of the Philippines (AFP), and such
other government officials and private individuals as the President
may appoint.

Section 5. Powers and Functions. - In addition to such specific

duties and responsibilities as the President may direct, the Council
shall:

(1) Advise the President with respect to the integration of domestic,

foreign, military, political, economic, social, and educational policies
relating to the national security so as to enable all concerned
departments and agencies of the government to meet more
effectively, problems and matters involving the national security;

(2) Evaluate and analyze all information, events, and incidents in

terms of the risks they pose or implications upon or threats to the
overall security and stability of the nation, for the purpose of
recommending to the President appropriate action thereon;

(3) Formulate and coordinate the implementation of policies on

matters of common interest to the various departments, and agencies
of the government concerned with the national security, and make
recommendations to the President in connection therewith;

(4) Insure that policies adopted by the Council on national security

are effectively and efficiently implemented; and

(5) Make such recommendations or render such other reports as the

President may from time to time require.

Section 6. Executive Committee. - The Council shall have an

Executive Committee composed of the President as Chairman, and
the Vice-President and Secretary of Foreign Affairs, the Executive
Secretary, the Secretary of National Defense, the National Security
Director, the Chief of Staff of the Armed Forces of the Philippines and
such other members or advisers as the President may appoint from
time to time.

The Executive Committee shall review national security and defense

problems and formulate positions or solutions for consideration by the
Council. It shall determine the agenda and order of business of the
Council, and shall ensure that decisions of the Council are clearly
communicated to the agencies involved. It shall advise the President
on the implementation of decisions.

To carry out the functions of the Executive Committee, the Chairman

shall utilize the facilities and expertise of any of the government
agencies and instrumentalities and shall promulgate rules and
regulations to govern the operations of the Executive Committee.
Section 7. Secretariat. - The Council shall have a permanent
Secretariat which shall be under the supervision and control of the
National Security Director. The National Security Director shall be
assisted by a Deputy who like the National Security Director, shall be
appointed by, and serve at the pleasure of, the President. The
National Security Director shall attend and participate in meetings of
the Cabinet and have the privileges of a member thereof.

Section 8. Duties of Director. - Among other duties, the National

Security Director shall advise the President on matters pertaining to
national security and, whenever directed by the President, see to the
implementation of decisions and policies by the President or the
National Security Council which have implications on national
security.

CHAPTER 3
NATIONAL INTELLIGENCE COORDINATING AGENCY

Section 9. Functions. - The National Intelligence Coordinating

Agency, hereinafter referred to as the Agency, shall:

(1) Serve as the focal point for coordination and integration of

government activities involving national intelligence;

(2) Prepare intelligence estimates of local and foreign situations for

the formulation of national policies by the President; and

(3) Provide support and assistance to the National Security Council.

Section 10. The Director-General. - The Agency shall be headed by a

Director-General who shall be assisted by a Deputy Director-General.
Both officials shall be appointed by the President and shall hold office
at the pleasure of the President.

Section 11. The Deputy-Director General. - The Deputy Director-

General shall assist the Director-General in the performance of
official functions and, in his absence, perform the functions of the
Director-General.
Section 12. Organizational Structure. - The organization of the
Agency shall consist of the following:

(1) The Office of the Director-General which shall undertake the

overall management and operation of the various components of the
agency, provide executive staff support, public relations, legal
service, and internal audit for the Agency;

(2) The Directorate for Operations, headed by the Assistant Director-

General for Operations, which shall be responsible for the collection
of information;

(3) The Directorate for Production, headed by the Assistant Director-

General for Production, which shall be responsible for the preparation
of intelligence estimates and other reports, and the maintenance of
automated data processing for the Agency;

(4) The Directorate for Administration, headed by the Assistant

Director-General for Administration, which shall be responsible for
personnel and training, transportation and communications, supplies
and materials, grounds and building maintenance, security, and other
support services;

(5) The Management and Planning Office which shall formulate

plans, policies and programs on the direction, integration and
coordination of national intelligence activities and on the operation
and management improvement of the Agency;

(6) The Office of the Comptroller which shall, provide financial

management and control for the Agency; and

(7) As many Field Stations as may be determined by the Director-

General which shall undertake intelligence collection activities and
provide reports necessary for the preparation of assessments and
estimates.

The organization and staffing pattern of the Agency shall be

recommended by the Director-General for approval of the President.
Section 13. Administrative Supervision By the National Security
Council. - The Agency shall be under the administrative supervision
of, and give support services to, the National Security Council;
however, the agency may report directly to the President, as the
President may require.

Section 14. National Intelligence Board. -

(1) The National Intelligence Board shall serve as an advisory body to

the Director of the Agency, on matters pertaining to the integration
and coordination of intelligence activities, and shall make
recommendations on such matters as the Director may from time to
time submit to it for consideration.

(2) The members of the National Intelligence Board shall be

appointed by the President. The National Security Director may sit in
all meetings of the Board.

Subtitle II

DEPARTMENT OF NATIONAL DEFENSE

CHAPTER 1
GENERAL PROVISIONS

Section 15. Declaration of Policy. - The defense establishment shall

be maintained to maximize its effectiveness for guarding against
external and internal threats to national peace and security and
provide support for social and economic development.

Section 16. General Military Council. - The General Military Council

shall advise and assist the Secretary in the formulation of military
policies and shall consider and report on such other matters as the
Secretary may direct. The Council shall be composed of the
Secretary as Chairman; and the Undersecretary of National Defense,
the Chief of Staff, the Vice-chief of Staff, the Assistant Chief of Staff
of the Armed Forces of the Philippines, and the Commanders of the
Major Services, as members. The Deputy Chief of Staff of the Armed
Forces of the Philippines shall be the Secretary of the Council.
Section 17. Prohibition on Detail of AFP Personnel. - No member of
the armed forces in the active service shall, at any time, be appointed
or designated in any capacity to a civilian position in the Government
including government-owned or controlled corporations or any of their
subsidiaries.

Section 18. Organizational Structure. - The Department shall be

composed of the Secretary, the Undersecretary and Assistant
Secretaries and their immediate staffs as determined by them
respectively, and such other bodies as are provided by law.

The Government Arsenal, Office of Civil Defense, Philippine Veterans

Affairs Office, Armed Forces of the Philippines, National Defense
College of the Philippines and the Integrated National Police shall be
under the supervision and control of the Department, except as may
be provided by special laws.

CHAPTER 2
DEPARTMENT PROPER

Section 19. Office of the Secretary. - The Office of the Secretary shall
consist of the Secretary and his immediate staff as determined by
him.

Section 20. Office of the Undersecretary. - The functions of the

Undersecretary shall be as follows:

(1) Advise and assist the Secretary in the formulation and

implementation of Department's objectives and policies;

(2) Oversee all the operational activities of the Department for which
he shall be responsible to the Secretary;

(3) Coordinate the programs and projects of the Department, and be

responsible for its economical, efficient, and effective administration;

(4) Serve as deputy to the Secretary, in all matters relating to the

operations of the Department; and

(5) Perform such other functions as may be provided by law.

When the Secretary is unable to perform his duties owing to illness,
absence, or other cause, as in case of vacancy in the Office, the
Undersecretary shall temporarily perform the functions of said Office.

Section 21. Executive Staff . - The Executive Staff shall be composed

of the Staff for Plans and Programs, Staff for Installation and
Logistics, Staff for Public Affairs, Staff for Strategic Assessment, Staff
for Comptrollership, Staff for Personnel, and the Legal Service.

Section 22. The Service Staff . - The Service Staff shall be composed
of the Administrative Services Office, and Information Management
Office.

Section 23. Personal Staff . - There shall be a Personal Staff as may

be determined by the Secretary.

CHAPTER 3
GOVERNMENT ARSENAL

Section 24. Organization. - The Government Arsenal shall be headed

by a Director who shall be assisted by one or more Assistant
Directors. It shall have staff and operating units provided by law.

Section 25. Qualification. - The Director and Assistant Directors shall

have the expertise, training or experience in the field of munitions.

Section 26. Functions. - (1) The Arsenal shall:

(1) Establish, operate, and maintain government arsenal;

(2) Formulate plans and programs to achieve self-sufficiency in arms,

mortars and other weapons and munitions;

(3) Design, develop, manufacture, procure, stockpile, and allocate

arms, mortars and other weapons and munitions without the
necessity of obtaining any permits or licenses, and devise ways and
means for the efficient mobilization of civilian industry to augment the
production of the Arsenal in times of emergency; and
(4) Perform such other functions as may be provided by law.

CHAPTER 4
OFFICE OF CIVIL DEFENSE

Section 27. Organization. - The Office of Civil Defense shall be

headed by an Administrator who shall be assisted by a Deputy
Administrator. The Office shall have staff and operating units as may
be provided by law.

Section 28. Functions. - The Office shall:

(1) In times of war and other national emergencies of equally grave

character, coordinate the activities and functions of various
government agencies and instrumentalities, as well as of private
institutions and civic organization devoted to public welfare to
maximize the utilization of the facilities and resources of the entire
nation for the protection and preservation of the civilian population
and property;

(2) Establish and administer a comprehensive national civil defense

and assistance program to include the estimation of the total material,
manpower fiscal requirements for carrying out the said program and
coordinate the allocation to local government units such aid in
facilities, materials and funds as may be made available by the
national government;

(3) Furnish guidance and coordinate the activities of the national

government, local governments, private institutions and civic
organization for civil preparedness;

(4) Develop and coordinate a program for informing, educating and

training the public on civil defense measures and activities; and

(5) Perform such other functions as may be provided by law.

Section 29. Operating Services. - The Administrator shall, subject to

the approval of the Secretary of National Defense, prescribe the
organization, functions, duties and responsibilities of civil defense
units on the national and local government levels, in connection with
the various operating units for civil defense. Civil defense operating
units shall be established for the national and local government
defense organizations. The local units shall operate under the
supervision and control of the respective heads of the local
government civil defense organizations to which they appertain.

Section 30. Basic, Technical and Administrative Services. -

(1) The basic services of the AFP shall be composed of the Major
Services. Enlisted personnel of the standing force and the reserve
force must belong to one of the basic services.

(2) The technical services of the AFP shall be composed of the

Medical Corps, Dental Service, Nurse Corps, Veterinary Corps and
the Judge Advocate General Service.

(3) The administrative services shall consist of the Chaplain Service,

Women Auxiliary Corps, Medical Administrative Corps and the Corps
of Professors.

(4) Appropriate military occupational specialties may be prescribed by

the Chief of Staff for each of the basic, technical and administrative
services.

(5) Appointment of officers to the basic, technical and administrative

services, and enlistment in the basic service shall be governed by
rules and regulations prescribed by the Secretary of National
Defense.

CHAPTER 5
PHILIPPINE VETERANS AFFAIRS OFFICE

Section 31. Organization. - The Philippine Veterans Affairs Office

shall be headed by an Administrator who may be assisted by one
Deputy Administrator. It shall have staff and operating units provided
by law.

Section 32. Functions. - The Office shall:

(1) Formulate and promulgate, subject to the approval of the
Secretary of National Defense, policies, rules and regulations
governing the adjudication and administration of veterans claims and
benefit;

(2) Adjudicate and administer benefits, pensions and other privileges

granted to veterans, their heirs and beneficiaries;

(3) Provide medical care and treatment to veterans pursuant to

existing law;

(4) Administer, develop, and maintain military shrines;

(5) Formulate policies concerning the affairs, placement and training

of ex-servicemen, and assist their widows and dependents, and other
retired military personnel; and

(6) Perform such other functions as may be provided by law.

CHAPTER 6
ARMED FORCES OF THE PHILIPPINES

Section 33. Functions. - The Armed Forces of the Philippines (AFP)

shall:

(1) Uphold the sovereignty, support the Constitution, and defend the
territory of the Republic of the Philippines against all enemies, foreign
and domestic;

(2) Promote and advance the national aims, goals, interests and
policies;

(3) Plan, organize, maintain, develop and deploy its regular and
citizen reserve forces for national security; and

(4) Perform such other functions as may be provided by law or

assigned by higher authorities.

Section 34. Composition. -

(1) The AFP shall be composed of a citizen armed force which shall
undergo military training and serve, as may be provided by law. It
shall be organized and maintained in a manner that shall render it
capable of rapid expansion from a peacetime organization to a
wartime or emergency organization. The AFP shall keep a regular
force necessary for the security of the State. The officers and men of
the regular force shall be recruited proportionately from all provinces
and cities as far as practicable.

(2) The Standing Force shall be composed of regular officers and

enlisted personnel; reservists called to active duty; draftees; trainees
and government-sponsored Filipino cadets enrolled in local or foreign
military schools. In time of peace, the size and composition of the
Standing Force shall be prescribed by the Secretary of National
Defense, upon recommendation of the Chief of Staff.

(3) The Citizen Armed Force shall be composed of all reservists, and
officers and enlisted men on inactive status. All Able-bodied citizens
shall undergo military training, after which they shall become
reservists with appropriate ranks. All reservists in a particular locality
shall be organized into reserve geographical units subject to call and
mobilization as the need arises, individually or as a unit. The
Secretary of National Defense shall prescribe and implement a
continuing program of recruitment and training for the Citizen Armed
Force to enable it to respond to all types of threats to national
security.

Section 35. Organizational Structure. - The AFP shall consist of the

General Headquarters; the Major Services namely: the Philippine
Army, the Philippine Air Force, the Philippine Navy and, until
otherwise provided by law, the Philippine Constabulary; and other
existing units, services and commands of the AFP. The Secretary of
National Defense may, in accordance with the policies or directives of
the President, create additional units, services and commands, or
reorganize the AFP in response to any situation or in pursuance of
operational or contingency plans. No Major Service may be unfilled,
inactivated or merged with another Service, without the approval of
the Congress.

Section 36. Basic, Technical and Administrative Service. -

(1) The basic services of the AFP shall be composed of the major
services. Enlisted personnel of the standing force and the reserve
force must belong to one of basic services.

(2) The technical services of the AFP shall be composed of Medical

Corps, Dental Service, Nurse Corps, Veterinary Corps and the Judge
Advocate General Service.

(3) The administrative service shall consist of the Chaplain Service,

Women Auxiliary Corps, Medical Administrative Corps and the Corps
of Professors.

(4) Appropriate military occupational specialties may be prescribed by

the Chief of Staff for each of the basic, technical and administrative
services.

(5) Appointment of officers to the basic, technical and administrative

by rules and regulations prescribed by the Secretary of National
Defense.

Section 37. The Citizen Armed Forced. -

(1) The Secretary of National Defense shall cause the organization of

the Citizen Armed Force into Geographical Units throughout the
country. The Citizen Armed Force Geographical Units shall consist of
cadre of officers and men in the Standing Force and all qualified
reservists residing in a particular locality. The cadre may, however,
be assigned to another unit in the active force while the Geographical
Units to which they are assigned are on inactive status.

(2) Whenever dictated by military necessity, and upon the

recommendation of the Secretary of National Defense and approved
by the President, the Citizen Armed Force may be called or mobilized
to complement the operations of the regular force of the AFP or to
support the regular force formations or units. For this purpose, Active
Auxiliary Units which shall be part of the Citizen Armed Force
Geographical Units, may be utilized, to be constituted out of
volunteers to be screened in consultations with the local executives
and civic business leaders. The status of Active Auxiliary Units shall
be of a degree of activation of military reservists short of full active
duty status. They shall not be vested with law-enforcement or police
functions.

(3) All members of the Citizen Armed Force on training or service

shall be subject to military law and the Articles of War.

Section 38. Tactical and Territorial Organization. - Unless otherwise

prescribed by law, the major services and other units of the AFP may
be organized into such commands, forces and organizations as may
be prescribed by the Secretary of National Defense. For this purpose,
the territory of the Philippines may be divided into such tactical and
geographical areas and zones or regions and districts as the
Secretary of National Defense may direct.

Section 39. Organizational Principles. - The organizational structure

of the AFP shall provide for:

(1) Centralized direction and control of General Headquarters to

insure unity and coordination of efforts throughout the military
establishment;

(2) Decentralized execution of operations to the Major Services and

other separate units to achieve maximum operational efficiency within
the military establishment;

(3) Common doctrine, standardized procedures and techniques

throughout the military establishment to assure common
understanding among all its forces and elements, facilitating thereby
the attainment of maximum operational efficiency and effectiveness;

(4) Development of self-reliance concepts for each Major Service to

insure national defense and security and maximum utilization of
resources; and

(5) Development of the capability to participate in the infrastructure

projects of the government.

CHAPTER 7
GENERAL HEADQUARTERS
Section 40. Functions. - The General Headquarters, AFP, shall:

(1) Serve as military advisor and staff to the Secretary of National

Defense;

(2) Prepare strategic plans and provide for the strategic direction of
the AFP, including the direction of operations of unified or specified
commands;

(3) Prepare integrated logistic responsibilities in accordance with

those plans;

(4) Prepare integrated plans for military mobilization;

(5) Provide adequate, timely and reliable joint intelligence for use
within the Department;

(6) Review major personnel, material and logistic requirements of the

AFP in relation to strategic and logistic plans;

(7) Review plans and programs of the Major Services and separate
units to determine their adequacy, feasibility and suitability for the
performance of their respective detailed plans;

(8) Participate in the preparation of combined plans or military action

in conjunction with the armed forces of other nations;

(9) Recommend to the Secretary of National Defense the

establishment and force structure of unified or specified commands;

(10) Determine the headquarters support, such as facilities,

personnel and communications required by unified or specified
commands, and assign the responsibility of providing that support to
appropriate Major Services;

(11) Prepare and submit to the Secretary of National Defense for his
consideration in the preparation of budgets and statements of military
requirements based upon strategic war plans, tasks, priority of tasks,
force requirements, and general strategic guidance for the
development of military force;

(12) Advise and assist the Secretary of National Defense on research

and engineering matters by submitting periodic reports on board
strategic guidance, overall military requirements, and relative military
importance of development activities to meet the needs of the AFP;

(13) Prepare and submit to the secretary of National Defense

recommendations to appropriate agencies concerning general
strategic guidance for the development of industrial mobilization
programs;

(14) Formulate policies and guidelines on the organization of the

Major Services and other elements of the military establishment, the
training of military forces, the employment of forces in the prosecution
of tasks required by law, and the employment of forces to assist
government agencies in the implementation of laws and regulations
when so directed by higher authorities; and

(15) Perform such other functions as may be provided by law or

assigned by higher authorities.

Section 41. Composition. - The General Headquarters shall be the

command and control element of the AFP. It shall be composed of
the Office of the Chief of Staff, Office of the Vice-Chief of Staff, the
AFP General Staff, and other staff offices and units necessary for
effective command and control of the AFP.

Section 42. The Chief of Staff . -

(1) The Chief of Staff, under the authority and direction of the
President and the Secretary of National Defense shall be responsible
for the development and execution of the national defense programs
and armed forces mission; and prescribe, in accordance with policies
of the Secretary of National Defense, the organization, powers,
functions and duties of the various staff, services, installations and
other units of the AFP.
(2) The President shall nominate and with the consent of the
Commission on Appointments, appoint the Chief of Staff from among
the general and flag officers of the basic services. He shall hold the
grade of general (Four-Star) and shall if eligible be retired in such a
grade, upon relief from his assignment.

(3) The tour of duty of the Chief of Staff shall not exceed three (3)
years. However, in times of war or other national emergency declared
by the Congress, the President may extend such tour of duty.

Section 43. Vice-Chief of Staff . - The Vice-Chief of Staff shall be the

principal assistant of the Chief of Staff and shall perform the functions
of the Chief of Staff during the latter's absence or disability. He shall
be appointed in the same manner as the Chief of Staff and shall hold
the grade of Lieutenant General (Three-Star). He shall be retired in
that grade if eligible for retirement after his relief from his assignment,
unless appointed as Chief of Staff.

Section 44. The AFP General Staff . - The AFP General Staff shall
advise and assist the Chief of Staff in the performance of his
functions and in the accomplishment of the tasks of the General
Headquarters. It shall be headed by the Deputy Chief of Staff, who
shall be appointed by the Chief of Staff. The AFP General Staff shall
be a joint staff. The various General Staff Offices shall each be
headed by a Deputy Chief of Staff whose appointment and tenure
shall be determined by the Chief of Staff. The organization, functions
and duties of the General Staff shall be prescribed by the Chief of
Staff.

Section 45. Authority to Reorganize the General Headquarters. -

(1) The Secretary of National Defense, upon recommendation of the

Chief of Staff in the interest of efficiency and economy, may:

(a) Establish and organize staffs, offices and units in the General
Headquarters in addition to the Armed Forces General Staff, and
prescribe the titles, functions and duties of their members;

(b) Abolish existing staffs, offices and units in the General

Headquarters not specifically provided in this Chapter or by any other
provision of law, or transfer or consolidate their functions and duties
with other staffs, offices or units; and

(c) Abolish the position of any Deputy Chief of Staff or any general
staff office and transfer or consolidate its functions and duties with
those of another Deputy Chief of Staff or General Staff Office

(2) If the President does not prescribe otherwise, the organization,

functions, and duties of various staffs, offices and units in the General
Headquarters shall continue as provided under existing laws and
regulations not in conflict with provisions of this Chapter.

CHAPTER 8
MAJOR SERVICES

Section 46. Organization.- The Major Services shall be organized by

the Chief of Staff in accordance with the policies laid down by the
Secretary of National Defense. The commanders of the Major
Services shall hold such grade as provided by law, and shall be
appointed by the President upon the recommendation of the
Secretary of National Defense.

Section 47. General Provisions. - The Secretary of National Defense,

upon recommendation of the Chief of Staff, AFP, shall assign to the
Major Services specific functions in support of the overall
responsibilities of the AFP and the Department.

Section 48. The Philippine Army. - The Philippine Army shall be

responsible for the conduct of operations on land, in coordination with
the other Major Services. It shall be organized as prescribed by the
Secretary of National Defense, upon recommendation of the Chief of
Staff.

Section 49. Functions. - The Philippine Army shall:

(1) Organize, train and equip forces for the conduct of prompt and
sustained operations on land;

(2) Prepare such units as may be necessary for the effective

prosecution of the national defense plans and programs and armed
forces missions, including the expansion of the peacetime army
component to meet any emergency;

(3) Develop, in coordination with the other Major Services, tactics,

techniques and equipment of interest to the army for field operations;

(4) Organize, train and equip all army reserve units; and

(5) Perform such other functions as may be provided by law or

assigned by higher authorities.

Section 50. The Philippine Air Force. - The Philippine Air Force shall
be responsible for the air defense of the Philippines. It shall be
organized as prescribed by the Secretary of National Defense, upon
recommendation of the Chief of Staff.

Section 51. Functions. - The Philippine Air Force shall:

(1) Organize, train, and equip forces for prompt and sustained air
operations for the defense of the Philippines;

(2) Organize, train, and equip for airlift, airborne and tactical air
operations unilaterally or in coordination with surface forces;

(3) Formulate and develop doctrines, concepts, systems, policies,

procedures, strategies, tactics and techniques for operations peculiar
to the Air Force;

(4) Organize, train, and equip all air force reserve units; and

(5) Perform such other functions as may be provided by law or

assigned by higher authorities.

Section 52. The Philippine Navy. - The Philippine Navy shall be

responsible for the naval defense of the Philippines. It shall be
organized as prescribed by the Secretary of National Defense, upon
recommendation of the Chief of Staff.

Section 53. Functions. - The Philippine Navy shall:

(1) Organize, train and equip forces for prompt and sustained naval
operations;

(2) Prepare the necessary naval units for the effective enforcement of
all applicable laws upon the Philippine seas and waters, the
prosecution of national defense plans and programs and armed
forces missions, including the expansion of a peacetime navy
component to meet any emergency;

(3) Formulate and develop doctrines, concepts, systems, policies,

procedures, strategies, tactics and techniques for operations peculiar
to the Navy;

(4) Enforce laws and regulations pertaining to navigation safety of life

at sea, immigration, customs revenues, narcotics, quarantine, fishing
and neutrality of the territory contiguous waters of the Philippines;

(5) Organize, train and equip all naval reserve units; and

(6) Perform such other functions as may be provided by law of

assigned by higher authorities.

Section 54. The Philippine Coast Guard. - The Philippine Coast

Guard shall remain as a major subordinate unit of the Philippine Navy
and assigned functions pertaining to safety of life at sea as vested in
it by law.

Section 55. The Philippine Constabulary. - Unless otherwise provided

by law, the Philippine Constabulary, as the national police force, shall
be primarily responsible for the preservation of peace and order and
the enforcement of laws throughout the Philippines. It shall be
organized, trained and equipped primarily as a law enforcement
agency. It shall be organized as prescribed by the Secretary of
National Defense upon recommendation of the Chief of Staff.

Section 56. Functions. -

(1) The Philippine Constabulary shall:

(a) Prevent and suppress lawless violence, rebellion, insurrection,
riots, brigandage, breaches of the peace and other disturbances, and
see to it that perpetrators of those offenses are brought to justice;

(b) Organize, retain, equip and prepare its forces for effective law
enforcement operations and police duties;

(c) Organize, train and equip constabulary draftees, reservists and

reserve units;

(d) Develop tactics, techniques, organization, weapons, equipment

and supplies essential to the accomplishment of its missions; and

(e) Perform such other functions as may be provided by law or

assigned by higher authorities.

(2) In times of war or national emergency, the Philippine

Constabulary or any of its subordinate units may be employed jointly
with, or in support of the operations of, the other Major Services, as
the President may direct.

Section 57. Authority of Constabulary Officers and Enlisted

Personnel. -

(1) Commissioned officers and enlisted personnel of the Philippine

Constabulary, as peace officers, shall execute lawful warrants and
orders of arrest issued against any person for any violation of law.

(2) The Philippine Constabulary shall have police jurisdiction

throughout the Philippines.

(3) When the constabulary forces in any area are unable to cope
effectively with violations of law, the Secretary of National Defense in
accordance with the policies or directives of the President, may
assign or detail commissioned officers and enlisted personnel of the
Army, Air Force, or Navy, to the Philippine Constabulary or any of its
subordinate units. The officers and enlisted personnel so assigned or
detailed shall have the authority and duties of peace officers and shall
be governed by the provisions of this section for the duration of their
assignment or detail.
CHAPTER 9
PHILIPPINE MILITARY ACADEMY

Section 58. Organization. -

(1) The Philippine Military Academy is the primary training and

educational institution of the AFP. It shall be the primary sources of
regular officers of the Standing Force.

(2) The Academy shall be organized as prescribed by the Secretary

of National Defense, upon recommendation of the Chief of Staff,
AFP.

(3) The student body of the Academy shall be known as the Cadet
Corps of the Armed Forces of the Philippines (CC-AFP) and shall
have such strength as the Secretary of National Defense shall
determine upon the recommendation of the Chief of Staff, and within
the strength limited by the annual Appropriation Act.

(4) There shall be an Academic Board organized by the Chief of Staff,

which shall be composed of not more than fifteen (15) members
selected from the officers of the Academy upon recommendation of
the Superintendent. The Board shall, in accordance with the rules
and regulations prescribed by the Chief of Staff, have the power to
confer baccalaureate degrees upon the cadets who satisfactorily
complete the approved course of study.

Section 59. Functions. - The Academy shall prepare the candidates

for commission in the regular force of the AFP and shall instruct, train
and develop cadets so that each graduate shall possess the
characters, the broad and basic military skills and the education
essential to the successful pursuit of a progressive military career.

CHAPTER 10
NATIONAL DEFENSE COLLEGE OF THE PHILIPPINES

Section 60. Organization and Administration. -

(1) The National Defense College of the Philippines, hereafter
referred to as the College, shall be under the direction, supervision
and control of the Secretary of National Defense.

(2) The College shall be headed by a President who shall administer

the affairs of the College with the assistance of an Executive Vice-
President, a Vice-President for Academic Affairs, a Vice-President for
Administrative Affairs and a Vice-President for Research and Special
Studies. The Executive Vice-President shall act for the President in
his absence and shall perform such other functions as may be
assigned to him by the President.

(3) The Vice-President for Academic Affairs shall be responsible for

the development, implementation, supervision and evaluation of
academic programs; the Vice-President for Administrative Affairs, for
the overall administrative support to all the activities of the College;
and the Vice-President for Research and Special Studies, on the
conduct of research work and special studies.

(4) The College shall have an Academic Board to assist the President
discharge the following functions:

(a) Supervise the academic affairs of the College;

(b) Recommend academic consultants, professors, lecturers,

instructors, research assistants and other resource persons of the
College; and

(c) Recommend the courses of studies to be conducted by the

College to accomplish its objectives.

The Board shall be composed of the Vice-President for Academic

Affairs as Chairman, and the Heads of the various academic
disciplines as members, who shall be designated by the President
subject to the approval of the Secretary of National Defense.

(5) All resource persons of the College including but not limited to
academic consultants, professors, lecturers, instructor, thesis
advisers, members of examining and evaluating panels, examiners,
correctors, and technicians who are regularly employed in the
Government shall, in addition to their salaries, be entitled to receive
honoraria, fees and other emoluments fixed by the Secretary of
National Defense.

Section 61. Powers and Functions. -

(1) The College shall train and develop the skills and competence of
potential national defense leaders, civilian officials of the different
agencies and instrumentalities of the Government, and selected
executives from the private sector in the formulation and
implementation of national security policies, and for high command
and staff duty.

(2) The College shall have the power to confer the degree of Master
in National Security Administration (MNSA) upon all its students who
have satisfactorily completed the prescribed course of study.

Section 62. Graduates of the Regular Course of the College. -

(1) Graduates of the College will receive for purposes of promotion to

key and sensitive positions in the military and civilian offices,
preferential consideration and/or credit points in the grade or class of
their respective positions.

(2) All civilian graduates who are holders of the degree of Master in
National Security Administration shall qualify for appointment to the
initial rank of Lieutenant Colonel in the reserve force of the Armed
Forces of the Philippines.

(3) Authority to use with honor the abbreviation MNSA after their
names is hereby given to all graduates of the regular course of the
College.

CHAPTER 11
INTEGRATED NATIONAL POLICE

Section 63. Composition. - Unless otherwise provided by law, the

Integrated National Police shall be composed of the Philippine
Constabulary as the nucleus and the Integrated Police Force, Fire
Services and Jail Management Services as components, under the
Department of National Defense.

Section 64. Organizational Structures. - The Chief of Constabulary

shall prescribe, subject to the approval of the Secretary of National
Defense, the table of organization and equipment, ranks, and position
titles, functions, duties and powers of the various staffs, services,
installations and other units of the Integrated National Police. The
different headquarters of the Philippine Constabulary in the national,
zone or regional and provincial levels shall be the nuclei of the
corresponding headquarters of the Integrated National Police. The
appropriate offices in the different headquarters levels may be jointly
staffed by the constabulary, police, jail and fire service officers and
personnel so that an integrated police and public safety services
would be effectively discharged.

Section 65. Head of the Integrated National Police. - The Chief of

Constabulary to be known as Director-General shall be the head of
the Integrated National Police. He shall have command of all
elements thereof. He may issue from time to time instructions
regarding personnel, funds, records, property, correspondence and
such other matters to carry out the provisions of this Chapter. As
Director-General, the Chief of Constabulary shall be assisted by the
Deputy Chiefs of Constabulary, the general staff and the special,
administrative and technical staffs of the Philippine Constabulary.

Section 66. Functions. - The Integrated National Police shall:

(1) Enforce law and maintain peace and order;

(2) Insure public safety;

(3) Prevent and control fires;

(4) Administer city and municipal jails; and

(5) Perform such other functions provided by law or assigned by

higher authorities.
Section 67. Authority of the President Over the Integrated National
Police. - In the exercise of its power to maintain peace, law, order,
and public safety, the Integrated National Police shall be subject to
the command and supervision and control of the President and shall
function directly under the Secretary of National Defense.

CHAPTER 12
ATTACHED AGENCIES

Section 68. Attached Agencies. - Agencies which are attached to the

Department shall operate in accordance with their respective
organizational structures and perform the functions and duties
assigned to them by law, subject to the requirements of economy,
efficiency, and effectiveness.

Subtitle III

THE NATIONAL POLICE COMMISSION

Section 69. Declaration of Policy. -

(1) The State shall establish and maintain one police force which
shall be national in scope and civilian in character, to be administered
and controlled by a national police commission and shall provide, by
law, the authority of local executives over the police units in their
jurisdiction.

(2) The maintenance of peace and order, the protection of life, liberty,
and property, and the promotion of the general welfare are essential
for the enjoyment by all the people of the blessings of democracy.

Section 70. The National Police Commission. - Unless otherwise

provided by law, the National Police Commission shall be under the
control and supervision of the Office of the President and shall
continue to operate in accordance with its present organizational
structure and perform the functions and duties assigned to it by law.

Section 71. Powers and Functions. - As provided by law, the

Commission shall exercise the following functions:
(1) Investigate, decide, and review administrative cases against
members of the Integrated National Police;

(2) Adjudicate death and permanent disability benefit claims of

members of the Integrated National Police;

(3) Administer appropriate examinations for the police, fire and jail
services;

(4) Attest appointments of members of the Integrated National Police;

(5) Inspect and audit the performance of the Integrated National

Police;

(6) Prepare a National Crime Prevention Program and coordinate its

implementation upon approval by the President; and

(7) Perform other duties provided by law or assigned by higher

authorities.

Title IX

HEALTH

CHAPTER 1
GENERAL PROVISIONS

Section 1. Declaration of Policy. - The State shall protect and

promote the right to health of the people and instill health
consciousness among them; adopt an integrated and comprehensive
approach to health development, with priority for the underprivileged
sick, elderly, disabled, women and children; endeavor to make
essential goods, health and other social services available to all the
people at affordable cost; establish and maintain an effective food
and drug regulatory system; and undertake appropriate health
manpower development and research, responsive to the country's
health needs and problems.

Section 2. Mandate. - The Department shall be primarily responsible

for the formulation, planning, implementation, and coordination of
policies and programs in the field of health. The primary function of
the Department is the promotion, protection, preservation or
restoration of the health of the people through the provision and
delivery of health services and through the regulation and
encouragement of providers of health goods and services.

Section 3. Powers and Functions. - The Department shall:

(1) Define the national health policy and formulate and implement a
national health plan within the framework of the government's general
policies and plans, and present proposals to appropriate authorities
on national issues which have health implications;

(2) Provide for health programs, services, facilities and other

requirements as may be needed, subject to availability of funds and
administrative rules and regulations;

(3) Coordinate or collaborate with, and assist local communities,

agencies and interested groups including international organizations
in activities related to health;

(4) Administer all laws, rules and regulations in the field of health,
including quarantine laws and food and drug safety laws;

(5) Collect, analyze and disseminate statistical and other relevant

information on the country's health situation, and require the reporting
of such information from appropriate sources;

(6) Propagate health information and educate the population on

important health, medical and environmental matters which have
health implications;

(7) Undertake health and medical research and conduct training in

support of its priorities, programs and activities;

(8) Regulate the operation of and issue licenses and permits to

government and private hospitals, clinics and dispensaries,
laboratories, blood banks, drugstores and such other establishments
which by the nature of their functions are required to be regulated by
the Department;
(9) Issue orders and regulations concerning the implementation of
established health policies; and

(10) Perform such other functions as may be provided by law.

Section 4. Organizational Structure. - The Department shall consist

of the Department Proper, National Health Facilities, Regional
Offices, Provincial Health Offices, District Health Offices and Local
Health Agencies.

CHAPTER 2
DEPARTMENT PROPER

Section 5. Department Proper. - The Department Proper shall be

composed of the Office of the Secretary, the Office for Management
Services, the Office for Public Health Services, the Office for Hospital
and Facilities Services, the Office for Standards and Regulations, and
the Executive Committee for National Field Operations.

Section 6. Office of the Secretary. - The Office of the Secretary shall

be composed of the Secretary of Health and his immediate staff; the
undersecretary acting as Chief of Staff in the Office of the Secretary;
the Assistant Secretary for Legal Affairs; the Assistant Secretary for
Financial, Operations and Front Line Services Audit; and the Staff
Services for the Secretary.

Section 7. Duties of the Undersecretary Acting as Chief of Staff . -

The Undersecretary acting as Chief of Staff in the Office of the
secretary, shall supervise the Assistant Secretary for Legal Affairs,
the Assistant Secretary for Financial Operations, and Front Line
Services Audit, and the Staff Support Services to the Secretary; and
head the secretariat of the Executive Committee for National Field
Operations.

Section 8. Duties of the Assistant Secretary for Legal Affairs. - The

Assistant Secretary for Legal Affairs shall head the office that shall
provide the Secretary with legal advice on all policy, program and
operational matters of the Department; act as Counsel for the
Department in cases in which it is a party; handle administrative
cases against Department personnel and submit recommendations
pertaining thereto; and review legislative proposals.

Section 9. Duties of the Assistant Secretary for Financial Operation.

- The Assistant Secretary for Financial Operations, and Front Line
Services Audit shall head the office that shall monitor the
Department's financial affairs, internal operations, and the delivery of
frontline services with a view to assuring the integrity of the
Department's financial operations and the requirements of the
Commission on Audit; optimizing the internal operating efficiency of
the Department and its field offices; and ensuring that the
Department's constituencies are provided front line services from the
Department with the adequacy, quality, and efficiency that they are
entitled to.

Section 10. The Staff Support Services. - The following Staff Support
Services shall undertake such staff services intended to assist the
Secretary in performing his functions;

(1) Community Health Service which shall provide services related to

formulating and implementing plans and programs for coordinating
with local governments and non-government organizations in health
related activities, programs and projects;

(2) Public Information and Health Education Service which shall

provide services related to formulating and implementing plans,
programs, and projects for public education on health and for the
timely and accurate public communication of Department policy on
health issues;

(3) Health Intelligence Service which shall provide services related to

the formulation of disease intelligence, assessment of the state of
health of the country and development and maintenance of effective
and comprehensive health information system to support planning
and implementation of health programs;

(4) Internal Planning Service which shall provide the Department with
necessary services related to planning, programming and project
development;
(5) Foreign Assistance Coordination Service which shall provide staff
services related to the development, coordination, monitoring,
reporting and assessment of foreign assisted projects of the
Department.

Section 11. Undersecretaries. - The Secretary shall be assisted by

five (5) Undersecretaries who shall exercise the following functions;

(1) Advise the Secretary in the promulgation of Department orders,

administrative orders and other issuances;

(2) Exercise supervision and control over the offices, services,

operating units and individuals under their authority and
responsibility;

(3) Recommend the promulgation of rules and regulations, consistent

with Department policies, that will effectively implement the activities
of operating units under their authority and responsibility;

(4) Coordinate the functions and activities of the units under their
authority with that of the Undersecretaries and regional health
directors;

(5) Exercise delegated authority on substantive and administrative

matters related to the functions and activities of agencies under their
office to the extent granted by the Secretary through administrative
issuances;

(6) Perform such other functions as may be provided by law or

appropriately assigned by the Secretary.

CHAPTER 3
DEPARTMENT SERVICES

Section 12. Office for Management Services. - The Office for

Management Services, headed by an Undersecretary who shall be
supported by an Assistant Secretary, shall include six (6) staff
services involved in providing support services to the Department
Proper, field offices and attached agencies, which are as follows:
(1) Financial Services which shall provide the Department with staff
advice and assistance on accounting, budget and financial matters;
supervise the coordinated preparation and implementation of annual
and long term financial and work plan and budget estimates; conduct
periodic department-wide performance and financial reviews; and
design and implement improvements in financial management
systems, procedures and practices;

(2) Management Advisory Service which shall provide staff advice

and assistance on internal control and management system
improvement, including management information systems; supervise
the establishment of a management accounting system, control
procedures and management information systems for improved
decision-making;

(3) Health Manpower Development and Training Service which shall

formulate plans, policies, standards and techniques for the effective
and efficient manpower development and training of Department
personnel; provide consultative, training and advisory services to
implementing agencies; conduct studies and research related to
health manpower development and training; and develop plans and
programs for improved recruitment, deployment, development, and
maintenance of personnel;

(4) Procurement and Logistics Service which shall undertake the

central procurement of the health care products and supplies needed
by the Department and its field offices which are not produced by or
beyond the production capacity of its in-house production facilities;
and ensure the proper, adequate and timely flow of health products
and services to the Department's field offices;

(5) Biological Production Services which shall formulate plans,

policies, programs, standards and techniques for the processing,
manufacture, standardization, and improvement of biological products
for Department use; manufacture vaccines, sera, anti-iodins, and
other biologicals; provide consultative training and advisory services
to implementing agencies; and conduct studies and research related
to biological production, distribution and use;
(6) Administrative Service which shall provide the Department with
efficient and effective services relating to personnel, records,
collections, disbursements, security, custodial work, and other
general services not covered by the preceding Services.

CHAPTER 4
OFFICES AND BUREAUS

Section 13. Office for Public Health Services. - The Office for Public
Health Services, headed by an Undersecretary, shall include ten (10)
staff services involved in policy formulation, standards development,
programs development, and program monitoring of disease control
and service delivery programs implemented by the field offices. The
Undersecretary for Public Health Services, who shall be supported by
an Assistant Secretary, shall supervise the following:

(1) Maternal and Child Health Services which shall formulate plans,
policies, programs, standards and techniques relative to maternal and
child health; provide consultative training and advisory services to
implementing agencies; and conduct studies and research related to
health services for mothers and children;

(2) Tuberculosis Control Service which shall formulate plans, policies,

programs, standards and techniques relative to control morbidity and
mortality from tuberculosis; provide consultative, training and advisory
services to implementing agencies; and conduct studies and research
related to tuberculosis;

(3) Family Planning Service which shall formulate plans, policies,

programs, standards and techniques relative to family planning in the
context of health and family welfare; provide consultative, training and
advisory services to implementing agencies; and conduct studies and
research related to family planning;

(4) Environmental Health Service which shall formulate plans,

policies, programs, standards and techniques relative to
environmental health and sanitation; provide consultative, training
and advisory services to implementing agencies; and conduct studies
and research related to environmental health;
(5) Nutrition Service which shall formulate plans, policies, programs,
standards and techniques relative to nutrition services in the context
of primary health care, provide consultative, training and advisory
services to implementing agencies; and conduct studies and research
related to Nutrition;

(6) Dental Health Service which shall formulate plans, policies,

programs, standards and techniques relative to dental health
services; provide consultative, training and advisory services to
implementing agencies; and conduct studies and research related to
dental services.

(7) Malaria Control Service which shall formulate plans, policies,

programs, standards and techniques relative to the control of malaria;
provide consultative, training and advisory services to implementing
agencies; and conduct studies and research to malaria and its
control;

(8) Schistosomiasis Control Service which shall formulate plans,

policies, programs, standards and techniques relative to the control of
schistosomiasis; provide consultative, training and advisory services
to implementing agencies; and conduct studies and research related
to schistosomiasis and its control;

(9) Communicable Disease Control Service which shall formulate

plans, policies, programs, standards and techniques relative to the
control of communicable diseases, other than the major causes or
mortality and morbidity, such as leprosy, sexually transmitted
diseases, filariasis and others; provide consultative, training and
advisory services to implementing agencies; and conduct studies and
research related to these other communicable diseases;

(10) Non-communicable Disease Control Services which shall

formulate plans, policies, programs, standards and techniques
relative to the control of non-communicable diseases; provide
consultative, training and advisory services to implementing
agencies; and conduct studies and research related to mental illness,
cardiovascular-diseases, cancer, other non-communicable diseases,
and occupational health.
Section 14. Office for Hospital and Facilities Services. - The Office for
Hospital and Facilities Services, headed by an Undersecretary who
shall be supported by an Assistant Secretary, shall include four (4)
staff services involved in policy formulation, standards development,
program monitoring and provision of specialized assistance in the
operations of hospitals and the management of facilities, which are as
follows:

(1) Hospital Operations and Management Service which shall

formulate and implement plans, programs, policies, standards and
techniques related to management improvement and quality control
of hospital operations; provide consultative, training and advisory
services to field offices in relation to the supervision and management
of hospital components; and conduct studies and research related to
hospital operations and management;

(2) Radiation Health Service which shall formulate and implement

plans, policies, programs, standards and techniques to ensure
radiation health safety; provide consultative, monitoring, training and
advisory services to private and government facilities with radiation-
emitting apparatus; and conduct studies and research related to
radiation health;

(3) Hospital Maintenance Service which shall formulate and

implement plans, programs, policies, standards and techniques
related to assuring the proper maintenance of Department
equipment; provide consultative, training and advisory services to
implementing agencies in relation to preservation, repair and
maintenance of medical and non-medical equipment of the
Department; and conduct studies and research related to equipment
and facility maintenance;

(4) Health Infrastructure Service which shall formulate and implement

plans, policies, programs, standards and techniques related to
development and preservation of health infrastructure; provide
consultative, training and advisory services to implementing agencies
in relation to infrastructure projects to assure economical and efficient
implementation; and conduct studies and research related to
infrastructure development and utilization.
Section 15. Office for Standards and Regulations. - The Office for
Standards and Regulations, headed by an Undersecretary and
supported by an Assistant Secretary, shall include three (3) bureaus
and one (1) national office that shall be responsible for the
formulation of regulatory policies and standards over the various
areas of concern in the health sector, whose implementation shall be
the general responsibility of the Department's regional field offices.
The same bureaus shall also be responsible for those areas of
activity covered by regulatory policy to provide the Secretary with
current information on the status of these regulated areas of activity
and to provide the Secretary with a basis for preliminary evaluation of
the efficiency of the Department's field offices in performing their
regulatory functions. The same bureaus shall conduct studies and
research pertinent to their areas of responsibility . In certain instances
the bureaus may also perform consultative, training and advisory
services to the practitioners and institutions in the area of regulated
activity. The same bureaus and national office are the following:

(1) Bureau of Research and Laboratories which shall develop and

formulate plans, standards and policies for the establishment and
accreditation and licensing of laboratories; blood banks and entities
handling biological products, provide consultative, training and
advisory services to public and private laboratories; and conduct
studies and research related to laboratory procedures and
operations;

(2) Bureau of Food and Drugs which shall act as the policy
formulation and sector monitoring arm of the Secretary on matters
pertaining to foods, drugs, traditional medicines, cosmetics and
household products containing hazardous substances, and the
formulation of rules, regulations and standards in accordance with
Republic Act 3720 (1963), as amended by Executive Order No. 175,
s. 1987, and other pertinent laws for their proper enforcement;
prescribe general standards and guidelines with respect to the
veracity of nutritional and medicinal claims in the advertisement of
food, drugs and cosmetics in the various media, to monitor such
advertisements; advise the Department's field offices to call upon any
erring manufacturer, distributor, or advertiser to desist from such
inaccurate or misleading nutritional or medicinal claims in their
advertising; should such manufacturer, distributor, or advertiser
refuse or fail to obey the desistance order issued by the Bureau, he
shall be subject to the applicable penalties as may be prescribed by
law and regulations; the Bureau shall provide consultative, training
and advisory services to all agencies and organizations involved in
food and drug manufacturing and distribution with respect to assuring
safety and efficacy of food and drugs; conduct studies and research
related to food and drug safety; maintain a corps of specially trained
food and drugs inspectors for assignment to the various field offices
of the Department; while these inspectors shall be under the technical
supervision and guidance of the Bureau, they shall be under the
administrative supervision of the head of the field office to which they
shall be assigned, the latter being responsible for regulatory program
implementation within the geographic area of his jurisdiction;

(3) Bureau of Licensing and Regulation which shall formulate policies

and establish the standards for the licensing and regulation of
hospitals, clinics and other health facilities; establish standards that
shall be the basis of inspections and licensure procedures of the
Department's field offices; and provide consultative, training and
advisory services to field offices on the conduct of licensing and
regulatory functions over hospitals, clinics and other health facilities.

(4) National Quarantine Office which shall formulate and implement

quarantine laws and regulations and, through its field offices, exercise
supervision over rat-proof zones in designated international ports and
airports and over medical examination of aliens for immigration
purposes.

CHAPTER 5
FIELD OFFICES

Section 16. Office for National Field Operations. - The Office for
National Field Operations, through an Executive Committee, shall
supervise the operations of the various Regional Field Offices and the
National Health Facilities, as enumerated in Section 17(3) and further
described in Sections 18, 19 and 20 hereof.

Section 17. Department Field Offices. - The Department field offices,

under the supervision and control of the Executive Committee for
National Field Operations, shall be composed of the following:
(1) Regional Health Offices (other than the National Capital Region)
and subordinate units that include regional medical centers, regional
hospitals, provincial health offices including component hospitals and
district health offices, city health offices;

(2) Regional Health Office for the National Capital Region: Municipal
Health Offices of Makati, Mandaluyong, Pasig, Marikina, Las Piñas,
Muntinlupa, San Juan, Valenzuela, Navotas, Malabon, Parañaque,
Taguig, Pateros;

(3) National Health Facilities which are health facilities classified as

National Health Resources because their services and activities
accrue to the whole country's health care and infrastructure. These
facilities are of two classifications: National Medical Centers and the
Special Research Centers and Hospitals, which are attached to the
Department:

(a) National Medical Centers: San Lazaro Hospital, Tondo Medical

Center, Jose Fabella Memorial Hospital, Quirino Memorial Hospital,
Rizal Medical Center, National Children's Hospital, Jose Reyes
Memorial Medical Center and the East Avenue Medical Center.

(b) Special Research Centers and Hospitals; Philippine Heart Center,

Lung Center of the Philippines, National Orthopedic Hospital,
National Center for Mental Health, Research Institute for Tropical
Medicine, National Kidney Institute, and the Philippine Children's
Medical Center.

Section 18. Regional Health Offices. - The Department is authorized

to establish, operate, and maintain a Department-wide Regional
Office, in each of the administrative regions of the country, under the
supervision of an Executive Committee chaired by the Secretary.
Each Regional Office shall be headed by a Regional Director to be
appointed by the President, and supported by an Assistant Regional
Director. The appointment of the Regional Director and Assistant
Regional Director shall be to the Department-at-large and assignment
shall be by administrative issuances of the Secretary. The Regional
Health Office shall be responsible for the field operations of the
Department in its administrative region and for providing the region
with efficient and effective health and medical services. It shall
supervise all Department agencies in its administrative region
including whatever medical centers, regional hospitals, sanitaria,
provincial health officers and city health offices are located in the
region except those placed under the Department Proper.

In addition to the foregoing, a Regional Office shall have within its

administrative region, the following functions:

(1) Implement laws and rules, regulations, policies, plans, programs

and projects of the Department in the region;

(2) Provide efficient and effective health and medical services to the
people;

(3) Coordinate with regional offices of other departments, offices, and

agencies in the region;

(4) Coordinate with local government units; and

(5) Perform such other functions as may be provided by law.

Section 19. Provincial Health Office. - The Provincial Health Office

shall be the Department agency in the province. It shall exercise
supervision and control over district health offices and other field units
of the department in the province, except those otherwise placed
under the Department Proper or directly under the Regional Health
Office.

The Provincial Health Office shall be headed by a Provincial Health

Officer. Depending on the size, population, and health facilities of the
province as well as budgetary provisions, a province may have one
Assistant Provincial Health Officer assisting the Provincial Health
Officers, or two Assistant Provincial Health Officers, one assisting the
Provincial Health Officer in public health activities and the other
assisting in hospital operations. The Provincial Health Officers and
Assistant Provincial Health Officers shall be appointed by the
Secretary to a region, and their assignment to a province shall be
made by the Secretary on recommendation of the Regional Health
Director.
Section 20. District Health Office. - The District Health Office shall
exercise supervision and control over district hospitals, municipal
hospitals, rural health units, barangay health stations and all other
Department units in the health district, except those otherwise placed
directly under the Provincial Health Office, or Regional Health Office,
or the Department Proper.

The District Health Office shall be headed by a District Health Officer

who shall also serve as the Chief of the district hospital as well as the
head of all field units in the district. District Health Officers shall be
appointed by the Secretary to a region, and their assignments shall
be made by the Secretary on the recommendation of the Regional
Health Director.

Section 21. Local Health Agencies. - The Department shall review

and monitor the establishment, operation and maintenance of health
agencies funded by local governments. Proposals for integrating
locally funded health agencies under the supervision and control of
the Department without regard to the sourcing of funds shall be made
by the Department for the appropriate local government's approval.
Any such agreement shall be allowed and, whenever possible,
funding from national sources may be extended to achieve a
nationally integrated government health service under the
Department.

Section 22. City Health Officers. - The City Health Officers and
Assistant City Health Officers shall be appointed by the Secretary.
Their compensation shall be paid out of national funds.

Section 23. Delegation of Power by Secretary. - The Secretary shall

have the authority to delegate such substantive and administrative
powers and authority as may be necessary to the heads of the
Regional Health Offices, in addition to such administrative authority
as have been mandated for delegation for all Departments by the
President. The Secretary shall also delegate such powers and
authority to the heads of the Provincial Health Offices and those of
other subordinate units of the Regional Health Offices as in his sound
judgment would make for a more efficient and effective administration
of health and medical services.
CHAPTER 6
ATTACHED AGENCIES

Section 24. Attached Entities. - The Philippine Medical Care

Commission and the Dangerous Drugs Board shall be attached to the
Department and shall continue to operate and function in accordance
with the law creating them, except as otherwise provided in this
Code.

Section 25. The Philippine Medical Care Commission. - The

Philippine Medical Care Commission shall be composed of the
Secretary of Health as Chairman, an Undersecretary of Health
designated by the Secretary as Vice-Chairman, and the following
members: the Administrator of the Social Security System, the
President and General Manager of the Government Service
Insurance System, the Secretary of Finance, the Secretary of Local
Government, the Secretary of Labor and Employment, and four (4)
other members representing the beneficiaries, the private employers,
the physicians and the hospitals. The four other members shall be
appointed by the President of the Philippines for a term of six (6)
years.

The ex officio members may designate their representatives who

shall exercise the plenary powers of their principals as well as enjoy
the benefits available to the latter.

Section 26. The Dangerous Drugs Board. - The Dangerous Drugs

Board shall be composed of the Secretary of Health, who shall be ex
officio chairman, an Undersecretary of Health designated by the
Secretary, who shall be ex officio Vice-Chairman, an Executive
Director and the following members: the Secretary of Justice or his
representative; the Secretary of National Defense or his
representative; the Secretary of Education or his representative; the
Secretary of Finance or his representative; and the Secretary of the
Department of Social Welfare and Development or his representative.
The Director of the National Bureau of Investigation shall be the
permanent consultant of the Board.

Title X
TRADE AND INDUSTRY

CHAPTER 1
GENERAL PROVISIONS

Section 1. Declaration of Policy. - The State shall develop a self-

reliant and independent national economy effectively controlled by
Filipinos. It recognizes the indispensable role of the private sector,
encourages private enterprise, and provides incentives to needed
investments.

The State shall promote industrialization and full employment based

on sound agricultural development and agrarian reform, through
industries that make full and efficient use of human and natural
resources, and which are competitive in both domestic and foreign
markets. It shall protect Filipino enterprises against unfair foreign
competition and trade practices.

In pursuit of these goals, all sectors of the economy and all regions of
the country shall be given optimum opportunity to develop. Private
enterprises, including corporations, cooperatives, and similar
collective organizations shall be encouraged to broaden the base of
their ownership.

The State shall pursue a trade policy that serves the general welfare
and utilizes all forms and arrangements of exchange on the basis of
equality and reciprocity.

The State shall regulate or prohibit monopolies when the public

interest so requires. No combinations in restraint of trade or unfair
competition shall be allowed. The state shall protect consumers from
trade malpractices and from substandard or hazardous products.

Section 2. Mandate. - The Department of Trade and Industry shall

be the primary coordinative, promotive, facilitative and regulatory arm
of the Executive Branch of government in the area of trade, industry
and investments. It shall promote and develop an industrialization
program effectively controlled by Filipinos and shall act as catalyst for
intensified private sector activity in order to accelerate and sustain
economic growth through: (a) comprehensive industrial growth
strategy, (b) a progressive and socially responsible liberation
program, (c) policies designed for the expansion and diversification of
trade, and (d) policies to protect Filipino enterprises against unfair
foreign competition and trade practices.

Section 3. Powers and Functions. - The Department of Trade and

Industry, shall:

(1) Formulate and implement policies, plans and programs relative to

the development, expansion, promotion and regulation of trade,
industry, and investments;

(2) Consolidate and coordinate all functions and efforts pertaining to

the promotion of exports, diversification and decentralization of
industries, and development of foreign trade;

(3) Encourage and promote the growth and expansion of industries

which make full use of human and natural resources and which are
competitive in domestic and foreign markets;

(4) Adopt and implement measures to protect Filipino enterprises

against unfair foreign competition and trade practices.

(5) Provide incentives to broaden the base of ownership of large-

scale industrial enterprises and accelerate the formulation and growth
of small and medium-scale enterprises;

(6) Regulate the importation of essential consumer and producer

items to maintain their fair and competitive prices to end-users;

(7) Protect consumers from trade malpractices and from substandard

or hazardous products;

(8) Adopt and implement measures to prohibit combinations in

restraint of trade and unfair competition;

(9) Develop the capabilities of industry to increase the domestic

content of its products and upgrade the quality of products according
to competitive international standards;
(10) Encourage and support the formation of People's Economic
Councils at regional, provincial and municipal levels as well as other
trade, industry and consumer protection institutions or associations;

(11) Upgrade and develop the manufacture of local capital goods and
precision machinery components;

(12) Formulate the appropriate mechanics to guide and manage the

transfer of appropriate industrial technology in the country;

(13) Formulate country and product export strategies which will guide
the export promotion and development thrusts of the government;
and implement programs and activities geared towards the overseas
promotion of Philippine exports in overseas markets;

(14) Take the primary role in negotiating and reviewing existing

international trade agreements, particularly those affecting commodity
quotas limiting existing exports of Philippine products to determine
programs for renegotiations of more favorable terms;

(15) Administratively adjudicate and impose reasonable fines and

penalties for violation of existing trade and industry laws;

(16) Prepare, for consideration of the Monetary Board, proposed

programs in the commercial banking sector for directing commercial
lending facilities towards priority areas of commercial and industrial
development, as well as coordinate government direct funding and
financial guarantee programs to achieve trade and industry growth;

(17) Issue subpoena and subpoena duces tecum to compel the

attendance of witnesses and the production of the necessary
information, papers and documents which it may deem necessary in
the exercise of its powers and functions;

(18) Prescribe and enforce compliance with such rules and

regulations as may be necessary to implement the intent and
provisions of this Code, which rules and regulations shall take effect
fifteen (15) days following their publication in the Official Gazette; and
(19) Perform such other functions as may be necessary or incidental
in carrying into effect the provisions of this Code and as may be
provided by law.

Section 4. Organizational Structure. - The department shall consist

of the offices of the secretary, undersecretaries and assistant
secretaries, national service centers, regional offices, and line
corporate agencies and government entities.

CHAPTER 2
DEPARTMENT PROPER

Section 5. Office of the Secretary. - The Office of the Secretary shall

consist of the Secretary, his immediate staff, the Undersecretary for
Policy Planning and Support Services, and the Offices and Services
directly supportive of the Office of the Secretary. The functions of the
foregoing shall be as follows:

(1) The Undersecretary for Policy Planning and Support Services

shall supervise the Office of Policy Research, the Office of
Operational Planning, the Office of Legal Affairs, the Human
Resource Development Service, the General Administrative Service,
the Management Information Service, the Financial Management
Service and the Public Relations Office;

(2) The Office of Policy Research shall coordinate and help formulate
general trade and industry policies for the Department; evaluate the
effectiveness of trade and industry programs as such, as their
implementation by the Department's Line Operating Units; and
research on trade and industry issues for policy analysis and
formulation;

(3) The Office of Operational Planning shall develop operating plans,

programs and projects of the Department as such; supervise the
Annual Trade and Industry Development Planning Conferences
between government and the private sector; evaluate the cost-
effectiveness of various projects and activities of the Department;
coordinate the updating of the Department's operating plans in
response to relevant environment changes; review the Department's
performance against standards and targets previously established;
and provide staff services related to the development, monitoring,
reporting and assessment of foreign assisted projects of the
Department;

(4) The Office of Legal Affairs shall provide the Secretary with legal
advise on all policies, programs, and operational matters of the
Department, serve as Counsel for the Department in cases in which it
is a party; handle administrative cases against Department personnel
and submit recommendations pertaining thereto; and review
legislative proposals;

(5) The Human Resource Development Service shall design and

implement human resource development plans and programs for the
personnel of the Department; provide for present and future
manpower needs of the organization; and maintain high morale and
favorable employee attitudes towards the organization through the
continuing design and implementation of employee development
programs;

(6) The Financial Management Service shall formulate and manage a

financial program to ensure availability and proper utilization of funds;
and provide for an effective monitoring system of the financial
operations of the Department;

(7) The General Administrative Service shall provide services relative

to procurement and allocation of supplies and equipment,
transportation, messengerial work, cashiering, payment of salaries
and other Department obligations, office maintenance, property
safety and security, and other utility services; and comply with
government regulatory requirements in the areas of performance
appraisal, compensation and benefits, employment records and
reports;

(8) The Management Information Service shall design and implement

a comprehensive management information system, both
computerized and manual, for the Department; provide technical
assistance to the various information generating units within the
Department; and establish data exchange linkages with public and
private agencies whenever feasible;
(9) The Public Relations Office shall perform The Department's public
relations function: provide a two-way flow of information between the
Department and its constituencies; and coordinate the Secretary's
regular press conferences and the Department's relations with the
mass media;

(10) The Trade and Investment Information Center shall, as the

primary information arm of the Department, design and operate a
computerized system of collection, documentation, storage, retrieval,
and timely dissemination of comprehensive and relevant information
on trade, industry, and investment for use by other government
agencies and the business sector; coordinate and monitor the
information campaigns on the Department's services, programs, and
projects; develop a communications programs to promote Philippine
investment opportunities and the country's export products which
shall be directed at foreign audiences; and provide creative services
to other units of the Department in support of their own information
programs;

(11) The National Industrial Manpower Training Council shall act as

the umbrella agency to coordinate and operate the Cottage Industry
Technology Center, the Construction Manpower Development
Foundation, and the Construction Manpower Development Center
and perform other functions such as initiating specialized industrial
training centers and identifying supply-demand factors and industrial
skills subject to the direction formulated by the National Manpower
and Youth Council; and

(12) There is hereby created in the Office of the Secretary the Office
of Special Concerns to attend to matters that require special
attention, whether involving a matter that crosses several functional
areas, demands urgent action, or otherwise necessitates, in the
Secretary's opinion, attention by a special group.

Section 6. Undersecretaries. - The Secretary shall be assisted by

five (5) Undersecretaries. They shall exercise supervision over the
offices, services, operating units and individuals under their authority
and responsibility.
The Secretary may designate any Undersecretary to supervise the
bureaus, offices, and agencies, including the attached entities,
consistent with the mandate of the department.

Section 7. Assistant Secretaries. - The Secretary shall also be

assisted by five (5) Assistant Secretaries who shall be appointed by
the President upon the recommendation of the Secretary. The
Secretary is hereby authorized to delineate and assign the respective
areas of functional responsibility of the Assistant Secretaries. Within
his functional area of responsibility, an Assistant Secretary shall
assist the Secretary and the Undersecretaries in the formulation,
determination and implementation of laws, policies, plans, programs
and projects on trade and industry and shall oversee the day-to-day
administration of the constituent units of the Department.

Section 8. Staff Bureaus and Services. - The Bureaus and Service

Units shall be responsible for research, formulation of policy,
development of standards, framing of rules and regulations, program
formulation and program monitoring, related to the concerns covered
by the Department's mandate, powers and functions. Implementation
of such policies, standards, rules and regulations, and programs shall
be the responsibility of the Department's Line Operating Units.

Section 9. Department Line Operating Units. - The Department Line

Operating Units shall be composed of the following:

(1) Regional Offices. These are offices which shall be located in the
National Capital Region and each of the twelve (12) other
administrative regions of the country. They shall be operated and
maintained on a Department-wide basis, acting as implementing
arms in the regions under their jurisdiction, of the Department's
policies, programs, rules and regulations as well as those laws which
the Department is mandated to enforce.

(2) Line Corporate Agencies and Government Entities. These are the
government entities and the government-owned or controlled
corporations under the administrative supervision of the Department
which are deemed to be integral parts of the Department structure
notwithstanding their organizational form, and which perform a focal
and implemental role in the Department's programs for the
development of trade, industry and investments.

CHAPTER 3
OFFICE OF THE UNDERSECRETARY FOR DOMESTIC TRADE

Section 10. Office of the Undersecretary for Domestic Trade. - The

Office of the Undersecretary for Domestic Trade shall include all the
staff bureaus and services involved in policy formulation, standards
development, regulatory, and service delivery programs pertinent to
domestic trade and commerce being implemented by the
Department's line operating units. The Undersecretary for Domestic
Trade shall supervise the following:

(1) Bureau of Trade Regulations and Consumer Protection. This

Bureau shall formulate and monitor the implementation of programs
for the effective enforcement of laws, correct interpretation and
adoption of policies on monopolies and restraint of trade,
mislabelling, product misrepresentation and other unfair trade
practices; monitor the registration of business names and the
licensing and accreditation of establishments and practitioners;
protect and safeguard the interest of consumers and the public,
particularly the health and safety implications of intrinsic products
features, product representation, and the like; and establish the basis
for evaluating consumer complaints and product utility failures.

(2) Bureau of Domestic Trade Promotion. This Bureau shall prepare

and monitor the implementation of plans and programs directed at the
promotion and development of domestic trade, particularly in the area
of efficiency, fairness and balance in the distribution of essential
products and services and in the strengthening of the domestic base
for export activities; conceptualize, monitor, and evaluate programs,
plans and projects intended to create awareness of domestic
marketing opportunities for new projects, new technologies and
investments.

(3) Bureau of Patents, Trademarks, and Technology Transfer. This

Bureau shall examine applications for grant of letters, patent for
inventions, utility models and industrial designs, and the subsequent
grant or refusal of the same; register trademarks, tradenames,
service marks and other marks of ownership; hear and adjudicate
contested proceedings affecting rights to patents and trademarks;
receive, process for registration and evaluate technology transfer
arrangements as to their appropriateness and need for the
technology or industrial property rights, reasonableness of the
technology payment, and for the prohibition of restrictive business
clauses, and comply with all its statutory publication requirements by
publishing the same in a newspaper of general circulation or in the
Official Gazette.

(4) Bureau of Product Standards. This Bureau shall review the

products contained in the critical imports list in accordance with
established national standards or relevant international standards and
buyer-seller specifications; promulgate rules and regulations
necessary for the country's shift to the international system of units;
study and carry out research on the various reference materials to be
used as basis for the start of whatever analysis or evaluation is
demanded by the products under examination or investigation;
establish standards for all products of the Philippines for which no
standards have as yet been fixed by law, executive order, rules and
regulations and which products are not covered by the
standardization activities of other government agencies; participate
actively in international activities on standardization, quality control
and metrology; ensure the manufacture, production, and distribution
of quality products for the protection of consumers; test and analyze
standardized and unstandardized products for purposes of product
standard formulation and certification; extend technical assistance to
producers to improve the quality of their products; check length, mass
and volume measuring instruments; and maintain consultative liaison
with the International Organization for Standardization, Pacific Area
Standards Congress, and other international standards organizations.

(5) Video Regulatory Board. This Board shall regulate videogram

establishments; prevent unfair practices, unfair competition, pirating
of legitimately produced video products, and other deceptive, unfair
and unconscionable acts and practices to protect the viewing public
and the general public.

CHAPTER 4
OFFICE OF THE UNDERSECRETARY FOR INTERNATIONAL
TRADE

Section 11. Office of the Undersecretary for International Trade. - The

Office of the Undersecretary for International Trade shall include all
the units involved in policy formulation, standards development,
program monitoring of the development, regulatory, and service
delivery programs of the Department pertinent to international trade
and commerce being implemented by the Department's line operating
units. The Undersecretary for International Trade shall supervise the
following:

(1) Bureau of International Trade Relations. This Bureau shall be the

primary agent responsible for all matters pertaining to foreign trade
relations, whether bilateral, regional or multilateral, especially market
access and market access related matters; formulate positions and
strategies for trade negotiations, consultations and conferences as
well as supervise trade negotiations, consultations and conferences;
coordinate with other Departments and agencies of the Philippine
government with the view of assuring consistency in the
government's positions in trade negotiations and on other activities
pertaining to foreign trade relations; consult with industry groups and
provide technical advice and information on the above matters and
activities; identify tariff and non-tariff barriers affecting products of
export interest to the Philippines, and negotiate measures for
liberalizing them at bilateral, regional and multilateral form; and
evaluate and submit recommendations on existing and proposed
commercial policies of the Philippines.

(2) Bureau of Export Trade Promotion. This Bureau shall formulate

and monitor programs, plans, and projects pertinent to the
development, promotion, and expansion of the foreign trade of the
Philippines; formulate country and product export strategies; conduct
research on new product development and adaptation opportunities
in the export markets, as well as identify the domestic supply base for
such products, prepare situation reports on all export production;
prepare and update country and regional market profiles; maintain an
integrated information system on all aspects of the products and
commodities relevant to export marketing; formulate, plan, supervise,
coordinate and monitor the implementation of both private and official
incoming and outgoing missions, and review the results of such;
promote and coordinate international subcontracting arrangements
between and among foreign and Philippine investors whereby
production operations and facilities may be located in the Philippines;
formulate and monitor the implementation of policies and guidelines
for the registration and certification of bona fide exporters eligible for
the various export incentive programs of the Philippines; and review
and identify appropriate measures to minimize or deregulate export-
import procedures and other foreign trade laws necessary to
stimulate the international marketing of Philippine products.

(3) Foreign Trade Service Corps. This Corps shall assist Philippine
businessmen, producers, and exporters with marketing information,
project development support, and liaison with foreign government
agencies; develop marketing and commercial intelligence for
dissemination to Philippine businessmen through the Trade and
Investment Information Center; provide direct support to the
Department's overseas promotional programs; assist Philippine
businessmen handle trade complaints against foreign firms and
governments; support Department units in import and export
administration, monitoring of trade agreements, and investments
promotion; and be accountable for establishment of foreign
investment and export targets for their respective areas of
responsibility.

In addition to the existing Foreign Trade Service Corps. the President

may appoint Trade Commissioners with the rank of Assistant
Secretary to coordinate trade and investment matters in the various
continents to which they are assigned for the purpose of increasing
trade and investments.

(4) Bonded Export Marketing Board. This Board shall promote the
establishment of bonded manufacturing and trading facilities for the
re-export of those products where a clear net value added may be
generated based on the emerging comparative advantage of the
Philippine export industry; study and analyze the international market
for specific products where the Philippines has or can develop a
comparative advantage; recommend to the Bureau of Customs the
licensing of bonded manufacturing facilities and monitor all bonded
manufacturing sites, with the objective of ensuring operational
efficiency; identify and designate sites where export bonded
manufacturing sites shall be located with a view of dispersal to the
regions; and initiate studies on the development and maintenance of
the country's competitive advantage in export products.

(5) Philippine Shippers' Council. This Council shall represent

Philippine shippers in international liner conferences and negotiate in
their behalf, for more favorable freight and shipping rates; evaluate
and issue waivers to the use of Philippine flag carriers; and provide
assistance and information to Philippine shippers, specially exporters,
in matters related to shipping.

(6) Philippine Trade Training Center. This Center shall develop

training modules on export and import techniques and procedures;
raise the level of awareness of Philippine businessmen of export
opportunities and the availability of alternative sources of import
products or diversified markets for exports; offer specialized courses
for specific industry groups directed at overcoming barriers to
overseas market penetration; and conduct training programs in
international trade practices, inspection techniques and exhibitions
mounting.

(7) Product Development and Design Center of the Philippines. This

Center shall provide product identification, research, and
development services to the private sector; conduct seminars and
workshops on product design and development; set up design
exhibitions; publish product design related materials; and conduct
continuing research on product and product packaging design trends
and processing technologies.

CHAPTER 5
OFFICE OF THE UNDERSECRETARY FOR INDUSTRY AND
INVESTMENTS

Section 12. Office of the Undersecretary for Industry and Investments.

- The Office of the Undersecretary for Industry and Investments shall
supervise all agencies involved in the formulation and implementation
of programs and projects pertinent to the development of domestic
industries and the promotion of investments in activities or
enterprises critical to the Department's trade and industry
development program.

(1) Bureau of Small and Medium Business Development. This Bureau

shall formulate and monitor development programs for private
institutions involved in assisting the trade and industry sector, delivery
mechanisms and linkages for marketing, financial and subcontracting
services, and development programs for livelihood and micro, small
and medium enterprises.

(2) Board of Investments, whose functions are defined below.

(3) Export Processing Zone Authority, whose functions are defined

below.

(4) Bureau of Import Services. This Bureau shall monitor import levels
and prices, particularly liberalized items; analyze and forecast import
levels; analyze and publish import return statistics; perform annual
reviews of the substantive components of the Philippine Tariff System
and submit recommendations thereon; perform such other functions
on import transactions as the President or the Central Bank of the
Philippines shall delegate or authorize; and ensure that the
Department's views on goods under the jurisdiction of other
Departments are taken into consideration.

(5) Iron and Steel Authority.

(6) Construction Industry Authority of the Philippines.

CHAPTER 6
OFFICE OF THE UNDERSECRETARY FOR REGIONAL
OPERATIONS

Section 13. Office of the Undersecretary for Regional Operations. -

The Office of the Undersecretary for Regional Operations shall
exercise supervision and control over the Department's Regional
Offices, described in Section 9, par. 1 hereof. It shall be responsible
for the field operations of the Department, ensuring full compliance
with Department policies, rigorous implementation of Department and
regulations, and proper implementation of Department plans and
programs by the Regional Offices in their respective administrative
jurisdictions.

Section 14. Regional Offices. - The Department is hereby authorized

to establish, operate and maintain a Department-wide regional office
in each of the country's administrative regions. Each Regional Office
shall be headed by a Regional Director who shall be assisted by an
Assistant Regional Director. A Regional Office shall have, within its
administrative region, the following functions:

(1) Implement pertinent laws, and the rules, regulations, policies,

plans, programs and projects of the Department;

(2) Provide efficient and effective service to the people;

(3) Coordinate with the regional offices of other departments, offices

and agencies in the region;

(4) Coordinate with the local government units; and

(5) Perform such other functions as may be provided by law or

appropriately assigned by the Secretary.

CHAPTER 7
ATTACHED AGENCIES

Section 15. Line Corporate Agencies and Government Entities. - The

following are the Line Corporate Agencies and Government Entities
that will perform their specific regulatory functions, particular
developmental responsibilities, and specialized business activities in
a manner consonant with the Departments' mandate, objectives,
policies, plans, and programs:

(1) National Development Company. This Company shall promote

investments in or establish enterprises for the express purposes of
encouraging the private sector to follow suit by proving the financial
viability of such enterprises; or of filling critical gaps in the input-
output structure of Philippine commerce and industry when the
private sector is unwilling or unable to engage in such enterprises
because of the magnitude of investments required or the risk
complexion of the undertaking.

(2) Garments and Textile Export Board. This Board, which shall be
supervised by the Undersecretary for International Trade, shall
oversee the implementation of the garment and textile agreements
between the Philippines and other countries, particularly garments
and textiles quotas; approve quota allocations and export
authorizations; issue export licenses and adopt appropriate measures
to expedite their processing; provide the necessary information and
statistics relating to the administration of garments and textiles export
quotas and the flow of garments and textiles exports for monitoring
purposes and for negotiations with other countries; implement rules
and regulations for the administration of all international textile
agreements entered into between the Philippines and importing
countries; and fix and collect reasonable fees for the issuance of
export quotas, export authorizations, export licenses, and other
related services, in accordance with the Department policies, rules
and regulations.

(3) International Coffee Organization-Certifying Agency. This Agency,

which shall be supervised by the Undersecretary for International
Trade, shall oversee the implementation of the coffee agreements
between the Philippines and other countries, particularly coffee
quotas.

(4) Philippine International Trading Corporation. This Corporation,

which shall be supervised by the Undersecretary for International
Trade, shall only engage in both export and import trading on new or
non-traditional products and markets not normally pursued by the
private business sector; provide a wide range of export oriented
auxiliary services to the private sector; arrange for or establish
comprehensive system and physical facilities for handling the
collection, processing, and distribution of cargoes and other
commodities; monitor or coordinate risk insurance services for
existing institutions; promote or organize, whenever warranted,
production enterprises and industrial establishments and collaborate
or associate in joint venture with any person, association, company,
or entity, whether domestic or foreign, in the fields of production,
marketing, procurement, and other related businesses; and provide
technical, advisory, investigatory, consultancy, and management
services with respect to any and all of the functions, activities, and
operations of the corporation.

(5) Board of Investments. This Board, which shall be supervised by

the Undersecretary for Industry and Investments shall be responsible
for coordinating the formulation and implementation of short, medium
and long term industrial plans as well as promoting investments in the
Philippines in accordance with national policies and priorities;
register, monitor, and grant investment incentives to individual
enterprises; formulate policies and guidelines aimed at creating an
environment conducive to the expansion of existing investments or
attracting prospective investments in the Philippines, Provided, That
the Board shall place primary emphasis on its promotive functions.

(6) Export Processing Zone Authority. This Authority which shall be

supervised by the Undersecretary for Industry and Investments, shall
develop and manage export processing zones, in consonance with
Department policies and programs.

(7) The Center for International Trade Expositions and Missions, Inc.
is hereby merged with the Philippine Trade Exhibition Center. The
latter shall be the surviving entity and is hereby renamed "Center for
International Trade Expositions and Missions."

Title XI

AGRARIAN REFORM

CHAPTER 1
GENERAL PROVISIONS

Section 1. Declaration of Policy. - The State shall undertake an

agrarian reform program founded on the right of farmers and regular
farmworkers who are landless to own directly or collectively the lands
they till or, in the case of other farmworkers, to receive a just share of
the fruits thereof.

The State shall recognize the right of farmers, farmworkers, and

landowners, as well as cooperatives, and other independent farmers'
organizations to participate in the planning, organization and
management of the land reform program, and shall provide support to
agriculture through appropriate technology and research, and through
adequate financial, production, marketing, and other support
services.

The State shall provide incentives for voluntary land-sharing. It may

resettle landless farmers and farmworkers in its own agricultural
estates which shall be distributed to them in the manner provided by
law.

Section 2. Mandate. - The Department shall provide central direction

and coordination to the national agrarian reform program extended to
transform farm lessees and farm tenants into owner-cultivators of
economic family-size farms to improve their living conditions.

The Department shall formulate and implement policies, plans and

programs for the distribution and cultivation of all agricultural lands,
including sugar and coconut lands, with the participation of farmers,
farmworkers, landowners, cooperatives, and other independent
farmers' organizations. It shall provide leadership in developing
support services to tenant-owners, farm managers, and other
cultivators through appropriate research and development programs,
and shall render adequate assistance in finance, marketing,
production and other aspects of farm management.

Section 3. Powers and Functions. - To accomplish its mandate, the

Department shall:

(1) Implement laws, programs and policies for the acquisition and
distribution of all agricultural lands as provided by laws;

(2) Resettle landless farmers and farmworkers in government-owned

agricultural estates which shall be distributed to them as provided by
law;

(3) Recommend and provide incentives for voluntary sharing of lands

by owners of agricultural lands;
(4) Acquire, determine the value, subdivide into family-size farms,
develop and distribute to qualified tillers, actual occupants and
displaced urban poor, private agricultural lands regardless of area
and crops planted;

(5) Administer and dispose of, under a settlement scheme, all

portions of the public domain declared as alienable and disposable
lands for speedy distribution to and development by deserving and
qualified persons who do not own any land and under such terms and
conditions as the Department may prescribe, giving priority to
qualified and deserving farmers in the province where such lands are
located;

(6) Provide free legal assistance to farmers covered by agrarian

reform and expedite the resolution of agrarian conflicts and land
tenure problems either through conciliatory or adversary proceedings;

(7) Provide creative, responsive and effective information, education

and communication programs and projects both for the tenant
beneficiaries, landowners, the government and private sectors and
the general public, thereby generating a broad spectrum of support
and understanding of the new agrarian reform program;

(8) Strengthen agrarian reform beneficiaries organizations to a

degree of national viability that would enable them to share in the
shaping of government policies and institutionalize farmers'
participation in agrarian reform policy formulation, program
implementation and evaluation;

(9) Promote the organization and development of cooperatives of

agrarian reform beneficiaries and register the same;

(10) Implement all agrarian reform laws and for the this purpose issue
subpoena, subpoena duces tecum, and writs of execution of its
orders, and decisions and other legal processes to ensure
compliance from all parties concerned for successful and expeditious
program implementation;
(11) Undertake land surveys on lands covered by agrarian reform,
and issue patents to farmers covered by agrarian reform, both on
private and public lands;

(12) Develop, implement and undertake alternative and innovative

land development schemes and land tenure systems such as, but not
limited to land consolidation, land farming cooperative farming and
agro-industrial estates;

(13) Approve or disapprove conversion of agricultural lands to non-

agricultural uses such as residential and industrial conversions in
accordance with the existing provisions of law;

(14) Undertake land use management studies;

(15) Compensate the landowners covered by agrarian reform;

(16) Integrate and synchronize program implementation of the Land

Bank of the Philippines and other relevant civilian and military
government and private entities involved and mandated to support
the agrarian reform program through Inter-Agency Committees and
Agrarian Reform Coordinating Councils; and

(17) Perform such other functions as may be provided by law.

Section 4. Organizational Structure. - The Department shall consist of

the Office of the Secretary, the Undersecretary, the Assistant
Secretary, the Services and Staff Bureaus, the Regional Offices, the
Provincial Offices, and the Team Offices.

CHAPTER 2
DEPARTMENT PROPER

Section 5. Office of the Secretary. - The Office of the Secretary shall

consist of the Secretary and his immediate staff.

Section 6. Undersecretary. - The Secretary shall be assisted by one

(1) Undersecretary who shall perform the following functions:
(1) Oversee the operational activities of the Department delegated to
him by and for which he shall be responsible to the Secretary;

(2) Coordinate programs and projects within the DAR and with other
government agencies and farmer organizations when so delegated
by the Secretary;

(3) Assist the Secretary on matters relating to the operations of the

Department;

(4) Assist the Secretary in the preparation of reports; and

(5) Perform such other duties and functions as may be provided by

law or assigned by the Secretary.

Section 7. Assistant Secretary. - The Secretary shall be assisted by

one Assistant Secretary.

CHAPTER 3
DEPARTMENT SERVICES

Section 8. Management and Executive Services. - The Management

and Executive Services shall have the following functions:

(1) Recommend the implementation of appropriate systems and

procedures as it relates to the overall monitoring and feedback
mechanisms required by the Office of the Secretary;

(2) Gather, consolidate, appraise, prepare and submit regular top

management reports pertaining to the Department and overall
administration, financial, programs and projects implementation
status for decision making purposes;

(3) Design and maintain a program/project display center(s) that will

showcase the Department's various plans, programs and
accomplishments;

(4) Prepare and review office orders, memoranda and other

communications;
(5) Provide secretariat support during meetings and conferences
including international conferences and seminars relative to agrarian
reform;

(6) Supervise the implementation of department-wide records

management and disposal system;

(7) Develop alternative management systems which will increase

efficiency in the delivery of services, attain better means of control,
maximize use of available human and physical resources;

(8) Conduct periodic systems and procedures audit of the various

units of the Department;

(9) Prepare news items on agrarian reform accomplishments and

handle press and media relations work for the Secretary; and

(10) Perform such other functions as may be assigned by the

Secretary.

Section 9. Legal and Public Assistance Service. - The Legal and

Public Assistance Service shall have the following functions:

(1) Prepare legal decisions and resolutions of administrative cases

and render legal opinions, interpretation of contracts, laws, rules and
other administrative issuances;

(2) Prepare legal decisions and resolutions of administrative cases;

and

(3) Provide public assistance services.

Section 10. Research and Strategic Planning Service. - The Research

and Strategic Planning Service shall have the following functions:

(1) Review, analyze and integrate submitted plans and programs and
special project proposals by Bureaus, services, and field offices and
determine if plans and programs are in accordance with priorities set
for budgetary support;
(2) Review, coordinate and integrate all recommendations for
reprogramming and revision of work programs of the Department to
support fund releases or requests;

(3) Initiate, integrate, or prioritize research studies and recommend

for funding in coordination with units concerned and review and
interpret research findings for policy applicability;

(4) Conduct researches or case studies for policy recommendations

and application;

(5) Coordinate, integrate and assist in the assessment of programs

and projects against plans, costs and resources, standards and
performance targets;

(6) Coordinate, integrate and analyze periodic accomplishment

reports of the Department as may be required or necessary;

(7) Maintain liaison with public and private development and planning
bodies, public and private; and

(8) Perform such other functions as may be provided by law or

assigned by the Secretary.

Section 11. Finance and Physical Assets Management Service. - The

Finance and Physical Assets Management Services shall have the
following functions:

(1) Prepare, execute and administer the Department's budget

including standards and guidelines;

(2) Monitor and evaluate the implementation of the Central and

Regional budget;

(3) Process all money claims related to all types of Department

expenditures including personal services, maintenance and other
operating expenses and capital outlays;

(4) Prepare financial reports and maintain books of accounts;

(5) Prepare, release and control check disbursements and index or
monitor check payments;

(6) Implement proper internal control mechanisms;

(7) Formulate and implement policies and systems on the disposition

of supplies, materials and equipment requirements of all operating
units for their effective functioning;

(8) Undertake repair and maintenance of all equipment furniture,

building facilities and grounds of the Department; and

(9) Manage and maintain an inventory of physical assets in the

Department's Central and Regional offices.

Section 12. Administrative and Personnel Service. - The

Administrative and Personnel Service shall exercise the following
functions:

(1) Formulate and implement policies and guidelines on personnel

placement, appraisal and action;

(2) Formulate and implement policies and guidelines on employee

services, employee relations management and staff development;

(3) Service the reproduction, utility and messengerial requirements of

all Departmental groups and offices;

(4) Provide the major operating units of the Department with basic
equipment, supplies and materials including logical support;

(5) Engage in general canvassing and purchasing of supplies,

materials and equipment;

(6) Implement guidelines with respect to procurement services; and

(7) Perform such other functions as the Secretary may assign.

CHAPTER 4
BUREAUS
Section 13. Bureau of Agrarian Legal Assistance. - The Bureau of
Agrarian Legal Assistance shall have the following functions:

(1) Formulate guidelines, plans and programs for the effective

delivery of legal assistance to the clientele;

(2) Adopt the process of mediation and conciliation to judiciously

settle agrarian problems;

(3) Investigate cases, review recommendations, and prepare orders,

decisions and resolutions on matters involving agrarian dispute;

(4) Maintain a docket of cases on claims and conflicts and issue

clearance in relation thereto;

(5) Provide legal information and prepare materials for publication;

(6) Conduct and compile legal research and studies on agrarian

reform and maintain a law library;

(7) Prepare legal opinions on matters pertaining to agrarian reform

program implementation;

(8) Represent agrarian reform beneficiaries or members of their

immediate farm households before all courts and quasi-judicial and
administrative bodies in civil, criminal or administrative cases
instituted by or against them, arising from or are connected with, an
agrarian dispute;

(9) Develop, maintain and coordinate para-legal services for agrarian

reform clientele;

(10) Advise and assist the Office of the Secretary and field offices in
agrarian legal matters;

(11) Conduct a continuing follow-up and evaluation of the handling

and disposition of judicial cases, claims and conflicts adjudication,
legal information and para-legal services of the Department; and
(12) Perform such other functions and duties as may be provided by
law.

Section 14. Bureau of Land Development. - The Bureau shall have

the following functions:

(1) Draw up plans and programs of land surveys and determine which
land survey projects can be done by administration or by contract;

(2) Develop and prescribe procedures and techniques on land

surveys in accordance with approved standards;

(3) Develop plans and programs, guidelines, procedures and

techniques for soil surveys and classification and for complete aerial
photogrammetry;

(4) Analyze and compile soil data and survey reports essential for the
production of soil maps and identify particular areas for soil research;

(5) Develop land use patterns, procedures and compile adequate

maps for proper land use;

(6) Draw up plans, programs and designs for agricultural

development under the scheme of land consolidation;

(7) Formulate policies, guidelines and procedures for the regulation of

conversion of private agricultural lands to non-agricultural use, in
accordance with the provisions of existing laws, as amended, and
other related issuances;

(8) Establish a schedule of priorities in the construction of houses,

waterworks, irrigations systems and other community facilities;

(9) Formulate policies and guidelines in the procurement,

maintenance or rehabilitation of agricultural machinery and
equipment, and review, and evaluate plans, programs, specifications,
and cost estimates of land development projects;

(10) Provide functional and technical assistance on the

implementation of land development;
(11) Monitor and evaluate activities of field offices on land
development; and

(12) Perform such other functions as may be provided by law.

Section 15. Bureau of Land Tenure Development. - The Bureau shall

have the following functions:

(1) Develop policies, plans and programs, and standard operating

procedures in the acquisition and distribution of public and private
agricultural lands, including measures to ensure that the lands
distributed by the government to the beneficiaries of the agrarian
reform program shall be subsequently transferred or sold only to
qualified tenant-tillers, agricultural workers and other landless
citizens;

(2) Design socio-economic survey plans and prescribe standards,

guidelines and procedures in the conduct of such surveys in areas
sought to be acquired or administered by the Department of Agrarian
Reform;

(3) Develop standards for the valuation of lands placed under the
agrarian reform program and formulate appropriate land
compensation schemes for affected landowners;

(4) Formulate, general policies and guidelines in the identification of

tillers and agricultural lands to be purchased or expropriated, subject
of petitions or applications for the exercise of the right of pre-emption
or redemption, or voluntarily offered for coverage under the agrarian
reform program, and portions of the public domain which may be
opened for settlement;

(5) Maintain a current inventory of tillers, landowners, land-holdings,

including crops and production thereon, and other related records;

(6) Streamline procedures governing the titling of lands transferred to

the beneficiaries of agrarian reform and the documentation of
leasehold and other tenurial arrangements;
(7) Develop alternative tenurial or working arrangements or
relationships in agrarian reform areas aimed at ensuring security of
tenure and equitable distribution of income;

(8) Formulate policies, guidelines, standards, procedures and

programs in the development and conduct of land tenure research;

(9) Identify areas of research relevant to land tenure, determine

priority needs, and prepare land tenure research designs/proposals;

(10) Undertake operational research and evaluation studies on land

tenure programs and projects;

(11) Monitor research findings on land tenure and other related

studies by various research agencies;

(12) Review and evaluate documents for the generation, registration,

and issuance of Emancipation Patents/Title, land valuation, and
landowners compensation claims as to its completeness, accuracy
and validity;

(13) Initiate verification and/or investigation of questionable or

inconsistent documents as well as data or information critical for
expeditious disposition of land transactions by authorities concerned;
and

(14) Perform such other functions as may be provided by law.

Section 16. Bureau of Agrarian Reform Information Education. - The

Bureau shall have the following functions:

(1) Provide policy guidance and develop plans and programs for
effective and continuing information, education and promotional
activities of the Department;

(2) Develop, conduct, assist and coordinate training and education

programs to increase farmer, DAR and other governmental personnel
participation in program implementation;
(3) Coordinate or implement linkage training or education programs
and projects;

(4) Integrate agrarian reform concepts into all levels of the national
education system;

(5) Develop appropriate communication materials or aids to support

agrarian reform promotion and training;

(6) Produce and disseminate media materials to implement the

information programs of the Department;

(7) Maintain and update a library of materials on agrarian reform;

(8) Provide for the establishment of a center for agrarian reform

studies;

(9) Provide functional and technical assistance on farmer education

and public information;

(10) Coordinate and evaluate training programs and activities

undertaken by the regional offices and other units of the Department;
and

(11) Perform such other functions as may be provided by law.

Section 17. Bureau of Agrarian Reform Beneficiaries Development. -

The Bureau shall have the following functions:

(1) Formulate plans, programs, policies and guidelines for the

development of agrarian reform areas into viable agro-industrial
estates, the promotion of cooperative systems of production,
processing, marketing, distribution, credit and services;

(2) Formulate policies, programs and guidelines for the development

and management of resettlement areas and landed estates;

(3) Promote the organization and participation of agrarian reform

beneficiaries to enhance the dignity and welfare of the beneficiaries
and to serve as sources of development information inputs and
feedback as basis for policy formulation;

(4) Serve as liaison between the DAR and the legitimate

organizations of agrarian reform beneficiaries and serve as receiving
zone for request and proposals from legitimately organized agrarian
reform beneficiaries associations for appropriate action by any of the
Bureaus or Services;

(5) Develop and undertake research and pilot studies of alternative

land tenure systems such as agro-industrial estates, cooperative
farming and other cooperative-cultivatorship schemes;

(6) Develop project models such as but not limited to compact farms,
and other income generating projects, and undertake research and
pilot studies on these models and other innovative schemes in
coordination with field offices;

(7) Establish linkages with concerned agencies for farm support

services and to ensure immediate and effective project
implementation;

(8) Provide functional and technical assistance on development and

management of resettlement areas and landed estates, organization
of agrarian reform beneficiaries and implementation of economic
projects;

(10) Perform such other functions as may be provided by law.

CHAPTER 5
REGIONAL AND DISTRICT OFFICES AND ATTACHED AGENCIES

Section 18. Regional Office. - The Regional Office shall be

responsible for supporting the field units and supervising program
implementation of the Department within the region. It shall:

(1) Implement laws, policies, plans, rules and regulations of the

Department in the regional area;
(2) Develop and implement a regional personnel management
program;

(3) Prepare, submit, execute and control the budget for the region;

(4) Prepare and properly maintain books of accounts;

(5) Pay salaries and wages and other approved vouchers;

(6) Provide administrative services to the regional and provincial

offices;

(7) Prepare and submit plans and programs for the region on:

a. land tenure development

b. information and education

c. land use management and land development

d. legal services

e. agrarian reform beneficiaries development

(8) Provide technical assistance to the provincial offices and agrarian

reform teams in the implementation of approved plans and programs;

(9) Extend effective legal assistance, advice or service to agrarian

reform beneficiaries;

(10) Conduct operations research and evaluation of agrarian reform

program implementation within the region;

(11) Coordinate with other government and private agencies and

farmer organizations at the Regional level through the Agrarian
Reform Coordinating Council, to carry out programs/projects for the
general welfare of the agrarian reform beneficiaries;

(12) Coordinate para-legal services;

(13) Maintain a data-based information system in coordination with
the established monitoring system;

(14) Review documents submitted by the Provincial and Team

Offices or by the clientele;

(15) Submit periodic feedback and recommend policy changes and/or

modification of procedures on program implementation; and

(16) Perform such other functions as may be necessary in the service

of the clientele.

Section 19. Provincial Offices. - The Agrarian Reform Provincial

Office is responsible for the direction and coordination of the
operation and activities of the Agrarian Reform Teams operating
within the province and has the following functions:

(1) Set priorities, specific targets, schedules and deadlines for the
execution of approved plans, programs and projects on:

a. land acquisition, distribution, transfer of land ownership to actual

tillers, including land tiller-landowners identification, tenurial security
and leasehold arrangements, land surveys, land valuation and
landowners compensation;

b. continuing information and education programs on agrarian reform;

c. organization and development of Agrarian Reform Beneficiaries

Cooperatives and institutionalizing farmers-government partnership in
agrarian policy formulation and program implementation;

d. landowner's compensation and diversion of landowner's capital to

industrial development;

e. development and implementation of alternative land tenure

systems such as cooperative farming, agro-industrial estates and
cooperative-cultivatorship schemes;

f. land use management;

g. compact farming, land consolidation, land reclamation, integrated
farming systems, sloping agricultural land technology, and other land
conservation measures in agrarian reform covered areas;

h. legal services to farmers covered by agrarian reform and resolution

of agrarian conflicts and land tenure problems;

(2) Provide administrative services to the Agrarian Reform Teams

within the province;

(3) Provide legal services to agrarian reform beneficiaries in cases

arising from or are connected with agrarian disputes, handling of
expropriation proceedings, registering cooperatives organized by
Agrarian Reform Teams and reviewing and acting on all matters
initially investigated and elevated by Agrarian Reform Teams;

(4) Provide technical assistance to the Agrarian Reform Teams in the

implementation of approved plans and programs;

(5) Coordinate with government, private agencies and farmer

organizations at the provincial level to carry out programs;

(6) Conduct periodic performance audit surveys in collaboration with

the regional office, and monitor agrarian reform program
accomplishments of Agrarian Reform Teams including operational
problems and constraints and recommend appropriate remedial
measures for effective program implementation; and

(7) Perform such other functions as may be necessary in the service

of the clientele.

Section 20. Team Offices. - The Agrarian Reform Team shall be

responsible for directly implementing the agrarian reform programs
and delivering expected results. It shall:

(1) Implement policies and programs on land acquisition, and

distribution, and transfer of landownership to actual tillers, including
farmer-landowner's identification, leasehold arrangements, land
valuation and landowners compensation and transfer actions;
(2) Undertake continuing information and education programs on
agrarian reform among the beneficiaries;

(3) Promote the organization and development of agrarian reform

beneficiaries and assist in the registration of organized cooperatives;

(4) Institutionalize farmers participation in agrarian reform policy

formulation and program implementation;

(5) Organize and establish compact farms, land consolidation,

integrated farm systems, sloping agricultural land technology and
other cooperative-cultivatorship schemes;

(6) Provide assistance in agrarian reform research;

(7) Provide assistance to various legal services, including legal

information and legal counselling, documentation and preliminary
processing of applications for free patent and applications to
purchase lots, preliminary investigation of conflicting claims on lot
boundaries and appraisal of properties, and mediation of different
problems arising from tenancy relationship, execution and registration
of lease contracts, initial investigation of administrative cases, and
other legal services;

(8) Provide assistance on project identification, formulation and

development that would uplift the socio-economic status of the
beneficiaries including projects that would divert landlord capital to
industrial development;

(9) Coordinate with other government and private agencies and

farmer organizations within the area of coverage for effective
program/project implementation;

(10) Submit periodic reports on program/project accomplishments

including problems identified and recommended solutions thereto;

(11) Implement DAR commitment programs supportive of national

priority programs; and
(12) Perform such other functions as may be assigned from time to
time.

Section 21. Attached Agencies. - The following agencies are attached

to the Department for administrative supervision and policy
coordination:

(1) Land Bank of the Philippines

(2) Agricultural Credit Administration

(3) Agrarian Reform Coordinating Council

Title XII

LOCAL GOVERNMENT

CHAPTER 1
GENERAL PROVISIONS

Section 1. Declaration of Policy. - The State shall ensure the

autonomy of local governments. For this purpose, it shall provide for
a more responsive and accountable local government structure
instituted through a system of decentralization. The allocation of
powers and resources to local government units shall be promoted,
and inter-local government grouping, consolidation and coordination
of resources shall be encouraged. The State shall guarantee the local
government units their just share in national taxes and their equitable
share in proceeds from the use of natural resources, and afford them
a wider latitude for resources generation.

Section 2. Mandate. - The Department shall assist the President in

the exercise of general supervision over local governments and in
ensuring autonomy, decentralization and community empowerment.

Section 3. Powers and Functions. - To accomplish its mandate, the

Department shall:
(1) Advise the President on the promulgation of policies, rules,
regulations and other issuances relative to the general supervision of
local government units;

(2) Establish and prescribe rules, regulations and other issuances

and implementing laws on the general supervision of local
government units and on the promotion of local autonomy and
monitor compliance thereof by said units;

(3) Provide assistance in the preparation of national legislation

affecting local government units;

(4) Establish and prescribe plans, policies, programs and projects to

strengthen the administrative, technical and fiscal capabilities of local
government offices and personnel;

(5) Formulate and implement policies, plans, programs and projects

to meet national and local emergencies arising from natural and man-
made disasters; and

(6) Perform such other functions as may be provided by law.

Section 4. Organization Structure. - The Department, shall be

composed of the Office of the Secretary and the staff and line offices
which shall consist of the following:

(1) Bureau of Local Government Supervision;

(2) Bureau of Local Government Development;

(3) National Barangay Operations Office;

(4) Project Development Services;

(5) Department Services;

(6) Office of Public Affairs; and

(7) Regional and Field Offices.

CHAPTER 2
DEPARTMENT PROPER

Section 5. Office of the Secretary. - The Office of the Secretary shall

consist of the Secretary and his immediate staff.

Section 6. Undersecretaries and Assistant Secretaries. - The

Secretary shall be assisted by not more than three (3)
Undersecretaries and three (3) Assistant Secretaries who shall be
appointed by the President upon the recommendation of the
Secretary. The Secretary is hereby authorized to delineate and
assign the respective functional areas of responsibility of the
Undersecretaries and Assistant Secretaries.

CHAPTER 3
DEPARTMENT SERVICES

Section 7. Planning Service. - The Planning Service shall be

responsible for providing the Department with efficient and effective
services relating to planning, programming, research and statistics.

Section 8. Financial and Management Service. - The Financial and

Management Service shall be responsible for providing the
Department with efficient and effective staff advise and assistance on
budgetary, financial and management improvement matters.

Section 9. Legal Service. - The Legal Service shall be responsible

for providing the Department with efficient and effective legal
counselling services, assistance to the Secretary in the review or
determination of subordinate bodies or agencies, collaboration with
Solicitor General in handling cases affecting the Department, and
investigation of administrative cases involving Department personnel
and local officials;

Section 10. Administrative Service. - The Administrative Service shall

be responsible for providing the Department with efficient and
effective services relative to personnel, information, records, supplies,
equipment, collection, disbursement, security and custodial work, and
other kinds of services not related to the other services above
enumerated.
Section 11. Electronic Data Processing Service. - The Electronic Data
Processing Service shall be responsible for providing adequate and
up-to-date data and management information inputs, including
monitoring of all field operations, to serve as basis for effective
planning, management and control, policy formulation and decision-
making.

CHAPTER 4
BUREAUS AND OFFICES

Section 12. Bureau of Local Government Supervision. - The Bureau

of Local Government Supervision, to be headed by a Bureau Director
appointed by the President upon the recommendation of the
Secretary, shall have the following functions:

(1) Advise and assist the Secretary in the exercise of the power of
general supervision of the President over local government units,
particularly in the formulation and implementation of national laws,
policies, and standards concerning local government operations and
their personnel;

(2) Establish and prescribe guidelines for the administration of the

Katarungang Pambarangay Laws;

(3) Monitor compliance with national laws and policies by local

government units;

(4) Provide assistance in the preparation of national legislation

affecting local government units and in the promotion of local
autonomy;

(5) Extend consultation service and advice to local government units

involved in promoting local autonomy; and

(6) Provide assistance to local governments in the promotion of

citizens participation in local government activities;

(7) Provide technical and financial assistance, as well as secretariat

services to the Leagues of Provinces, Cities and Municipalities; and
(8) Perform such other functions as may be provided by law.

Section 13. Bureau of Local Government Development. - The Bureau

of Local Government Development, to be headed by a Bureau
Director appointed by the President upon the recommendation of the
Secretary shall have the following functions:

(1) Establish and prescribe plans, policies, programs, and projects to

strengthen the administrative and technical capabilities of local
government offices and personnel;

(2) Provide technical assistance to enhance the administrative, fiscal

and technical capabilities of local government officers and personnel;

(3) Formulate, prescribe and periodically evaluate local development

policies, plans, programs and projects designed to enhance the
participation of local government units in planning and
implementation;

(4) Establish a system of incentives and grants to local governments

and prescribe policies, procedures and guidelines in the
implementation of self-help assistance projects;

(5) Formulate and develop models, standards and technical materials

on local government development;

(6) Extend consultation service and advice to local government units

involved in development programs;

(6) Extend consultation service and advice to local government units

involved in development programs;

(7) Establish a viable system of strategies and approaches for local

governments anchored on citizen participation within a wholistic and
integrated framework for the development of communities; and

(8) Perform such other functions as may be provided by law.

Section 14. Office of Public Affairs. - The Office of Public Affairs shall
have the following functions:

(1) Provide technical assistance in the modernization and

maintenance of a Department-wide micro-telecommunica- tions
systems;

(2) Provide mechanisms for the operationalization of the intent of the

provisions of public information, coverages and documentation of the
activities of the Department;

(3) Perform functional supervision over regional information centers in

providing the citizenry with relevant information on the program of the
Department and the Government's thrust towards the participation of
the citizens in the democratic processes;

(4) Formulate plans and programs to implement the administrative

and technical capabilities of public officers and personnel both on the
central and regional levels;

(5) Establish and prescribe guidelines in the administration of

Information and Public Assistance Services;

(6) Extend consultation services and advice in the implemen- tation of

Regional Information Services;

(7) Assess information needs of the people through opinion polls and
surveys;

(8) Provide assistance on various public programs of the Department;

(9) Establish and implement policies, plans, programs and projects to

meet local emergencies arising from natural and man-made
disasters; and

(10) Perform such other duties and responsibilities and projects

assigned or delegated by the Secretary in the effective delivery of
public services or as may be required by law.
Section 15. Local Government Academy. - The Local Government
Academy shall be responsible for human resource development and
training of local government officials and Department personnel. The
Academy shall be under the direct supervision of a Board of Trustees
composed of the Secretary of Local Government as Chairman and
four (4) other members to be appointed by the President upon
recommendation of the Secretary. The structure and staffing pattern
of the Local Government Academy shall be prescribed and approved
by the Secretary.

Section 16. National Barangay Operations Office. - The National

Barangay Operations Office which shall be headed by a Director to
be appointed by the President upon the recommendation of the
Secretary, shall have the following functions:

(1) Formulate policies, plans and programs that will promote

community and citizen participation in the political development of the
barangay through the mobilization and participation of barangay
assemblies;

(2) Initiate projects on innovative barangay development strategies

and approaches in close coordination with the Bureau of Local
Government Development;

(3) Provide secretariat services to the Association of Barangay

Councils and serve as a clearing house on matters affecting
barangay officials' insurance, hospitalization, educational and other
benefits as provided by law;

(4) Provide continuing information dissemination to barangay units on

national development efforts and issues in order for barangay
assembly members to participate meaningfully in national
development;

(5) Establish and maintain masterlists of barangays, barangay

officials and barangay socio-economic profiles;

(6) Provide situational and political analysis for the Secretary on

barangay affairs; and
(7) Perform other functions as may be delegated by the Secretary or
as provided for by law.

Section 17. Office of Project Development Services. - The Office of

Project Development Services shall have the following functions:

(1) Formulate innovative approaches and strategies designed to

promote technical capabilities of local governments;

(2) Assist in the development of program components for the

implementation of tested and appropriate system and processes at
the local level; and

(3) Perform other functions as may be delegated by the Secretary or

as provided by law.

CHAPTER 5
REGIONAL AND FIELD OFFICES

Section 18. Regional and Field Offices. - The Secretary is authorized

to establish, operate and maintain one Regional Office in each of the
administrative regions established by law. A Regional Office shall
have, within its administrative region, the following functions:

(1) Implement laws, rules, and regulations, other issuances, policies,

plans, programs and projects of the Department;

(2) Provide efficient and effective service to local government;

(3) Coordinate with regional offices of other departments, offices and

agencies affecting local administration and development;

(4) Assist local government units in developing their capabilities for

local government administration and development; and

(5) Perform such other functions as may be delegated by the

Secretary or as provided by law.

CHAPTER 6
LEAGUES OF PROVINCES, CITIES AND MUNICIPALITIES
Section 19. Leagues of Provinces, Cities and Municipalities. - There is
hereby created the Leagues of Provinces, Cities and Municipalities.

The functions, budget and records of the Katipunan ng mga

Sanggunian National Secretariat and the Pambansang Katipunan ng
mga Punong Bayan sa Pilipinas, shall be transferred to the Leagues
of Provinces, Cities and Municipalities. The Leagues shall be under
the supervision of the Bureau of Local Government Supervision.

The Secretary is hereby authorized to promulgate the necessary

implementing rules that will activate these Leagues.

Title XIII

TOURISM

CHAPTER 1
GENERAL PROVISIONS

Section 1. Declaration of Policy. - The State shall promote,

encourage and develop tourism as a major national activity in which
private sector investment, effort and initiative are fostered and
supported, and through which socio-economic development may be
accelerated, foreign exchange earned, international visitors offered
the opportunity to travel to the Philippines and appreciate its natural
beauty, history and culture, and Filipinos themselves enabled to see
more of their country and imbued with greater pride in and
commitment to the nation.

Section 2. Mandate. - The Department of Tourism shall be the

primary government agency charge with the responsibility to
encourage, promote and develop tourism as a major socio-economic
activity to generate foreign currency and employment and to spread
the benefits of tourism to a wider segment of the population with the
support, assistance and cooperation of both the private and public
sectors, and to assure the safe, convenient, enjoyable stay and travel
of the foreign and local tourists in the country.
Section 3. Powers and Functions. - The Department shall have the
following powers and functions:

(1) Formulate policies, plans, programs and projects for the

development of the tourism industry;

(2) Administer, coordinate and supervise all activities of the

Government concerning tourism;

(3) Advise the President on the promulgation of laws relative to the

policy, plans, programs and projects designed to promote and
develop the tourism industry;

(4) Effect the removal of unnecessary barriers to travel, the

integration and simplification of travel regulations as well as their
efficient, fair and courteous enforcement to assure expeditious and
hospitable reception of all tourists and travelers;

(5) Represent the government in all such conferences and meetings

concerning tourism and travel and discharge such responsibilities of
the government as may arise from treaties, agreements and other
commitments on tourism and travel to which it is signatory;

(6) Formulate standards for tourism-oriented establishments that will

prescribe minimum levels of operating quality and efficiency in order
to ensure that facilities, personnel and services are maintained in
accordance with acceptable local and international norms in the
operations of tourism-oriented establishments;

(7) Approve the construction standards of accredited tourism-oriented

establishments including hotels, resorts, inns, motels and other
related facilities and services and prescribe information reporting on
the purchase, sale or lease of the said establishments and facilities;

(8) Provide the protection, maintenance and preservation of historical,

cultural and natural assets which are tourist attractions with the
appropriate government agencies or with the private sector or with
the owners of said assets or attractions;
(9) Undertake research studies and surveys for the continuing
analysis of economic conditions and trends relating to tourism and
maintain a statistical data bank on the tourism industry;

(10) Design programs to encourage private-sector investment and

participation in tourism activities and projects;

(11) Set up and organize foreign field offices for the purpose of
overseeing all marketing and promotional activities and implementing
programs of the Department;

(12) Arrange, whenever deemed appropriate, for the reclamation of

any land adjacent to or adjoining a tourist zone in coordination with
appropriate government agencies;

(13) Delegate any specific powers and functions in favor of the

regional offices to promote efficiency and effectiveness in the delivery
of public service;

(14) Enlist the aid, assistance and support of any and all government
agencies, civil or military, in the implementation of the provisions of
laws pertaining to the Department or of its rules and regulations;

(15) Exercise such powers and functions as may be necessary,

proper, or incidental to the attainment of its mandate;

(16) Perform such other functions as may be provided by law.

Section 4. Organizational Structure. - The Department shall consist

of the Department Proper, Department Services, Bureaus and
Offices, Regional and Foreign Offices.

The Department Proper shall consist of the Offices of the Secretary

and Undersecretaries which shall be responsible for the preparation
and development of policies, plans, programs and projects of the
Department.

CHAPTER 2
DEPARTMENT PROPER
Section 5. Office of the Secretary. - The Office of the Secretary shall
consist of the Secretary and his immediate staff.

Section 6. Undersecretaries. - The Secretary shall be assisted by

four (4) Undersecretaries, namely:

(1) Undersecretary for Planning, Product Development and

Coordination, who shall be responsible for the Office of Tourism
Development Planning, Office of Product Development and Office of
Tourism Coordination;

(2) Undersecretary for Tourism Services and Regional Offices, who

shall be responsible for the Office of Tourism Standards and all
Regional Offices;

(3) Undersecretary for Tourism Promotions, who shall be responsible

for the Bureau of International Tourism Promotion, Bureau of
Domestic Tourism Promotion and Office of Tourism Information; and

(4) Undersecretary for Internal Services, who shall be responsible for

the Financial and Management Service, Administrative Service and
Legal Service.

CHAPTER 3
DEPARTMENT SERVICES

Section 7. Department Service Character and Head. - The

Department Services shall be essentially staff in character, each of
which shall be headed by a Service Chief. (1987), sec. 14)

Section 8. Financial and Management Service. - The Financial and

Management Service shall provide the Department with staff advice
and assistance on budgetary, financial and management matters and
shall perform such other related functions as may be assigned or
delegated to it by the Secretary.

Section 9. Administrative Service. - The Administrative Service shall

provide the Department with staff advice and assistance on personnel
information, records, communications, supplies, equipment,
collection, disbursements, security, other custodial work and such
other related duties and responsibilities as may be assigned or
delegated to it by the Secretary.

Section 10. Legal Service. - The Legal Service shall provide the
Department with staff advice and assistance on all legal matters
affecting the Department and perform such other related functions as
may be assigned or delegated to it by the Secretary.

CHAPTER 4
BUREAUS AND OFFICES

Section 11. Bureau and Office Character and Head. - The Bureaus
and Offices shall be essentially staff in character, each of which shall
be headed by a Staff Director.

Section 12. Bureau of Domestic Tourism Promotions and Information.

- The Bureau of Domestic Tourism Promotions and Information shall
have the following functions:

(1) Organize and coordinate programs of public relations, promotions,

and publicity; encourage domestic tourism and encourage overseas
visitors to travel throughout the Philippines;

(2) Design and provide support for dissemination of materials for

publicity as tourist attractions in the Philippines; promote educational
and cultural tours to increase travel within the country;

(4) Plan promotional campaigns through advertising and publicity and

coordinate promotional efforts with the private sector through sales
campaigns and information dissemination; and

(5) Organize special events for the promotion of local destinations.

Section 13. Bureau of International Tourism Promotions. - The

Bureau of International Tourism promotions shall have the following
functions:

(1) Generate favorable publicity on the Philippines;

(2) Disseminate current information on the country and its tourist
products;

(3) Provide support for the private sector in the promotional

campaign;

(4) Organize special events to promote the country as a tourist

destination;

(5) Gather market intelligence and research information on tourist

markets through the Foreign Field Offices;

(6) Monitor trends and developments in international tourism through

the Foreign Field Offices;

(7) Organize, set up and participate in international meetings,

conferences and conventions on tourism; and

(8) Supervise foreign field offices charged with coordinating and

assisting in the marketing and promotional activities and programs of
the Department.

Section 14. Office of Tourism Information. - The Office of Tourism

Information shall have the following functions:

(1) Promote a continuing wholesome and informative relationship

between the Department and the travelling public;

(2) Cause the widest publicity of existing and forthcoming activities

and programs of the Department through a functional relationship
with the media; and

(3) Organize and disseminate promotional and tourist information

materials to various tourist assistance centers.

Section 15. Office of Tourism Standards. - The Office of Tourism

Standards shall have the following functions:

(1) Approve the construction standards of tourism-oriented

establishments including hotels, resorts, inns, motels, and other
related facilities and services, prescribe information reporting on
purchase, sale or lease of accredited tourism-oriented facilities and
ensure a harmonious, positive and constructive development of the
tourism, industry;

(2) Formulate operating standards for tourism-oriented

establishments including hotels and resorts, restaurants, inns, motels,
and other related facilities and services, that will prescribe minimum
levels of operating quality and efficiency in order to ensure that
facilities, personnel and services are maintained in accordance with
acceptable local and international norms in the operations of tourism-
oriented establishments;

(3) Regulate and issue licenses to qualified travel agencies in

accordance with the rules and regulations promulgated by the
Secretary;

(4) Encourage formation of industry associations for accreditations by

the Department;

(5) Assist in auditioning Filipino entertainers in order to project

properly and enhance the Filipino image in the entertainment field
and thereby gain better international respect and reputation; and

(6) Coordinate with all agencies concerned on the enforcement of

rules and regulations promulgated by the Department.

Section 16. Office of Tourism Development Planning. - The Office of

Tourism Development Planning shall have the following functions:

(1) Formulate plans and policies for the development of the tourism
industry, including but not limited to national tourism plans and the
identification of master physical plans for tourism zones within the
country;

(2) Monitor and evaluate plans, programs and projects of the

Department to ensure their effective implementation;

(3) Undertake research studies and surveys for the continuing

analysis of the tourism industry;
(4) Compile and integrate statistical data on the tourism industry and
publish the same;

(5) Coordinate and assist in the implementation of tourism-oriented

projects, plans or operations of local governments, governmental
agencies, public corporations, and where clearly necessary and
feasible, those of private entities so as to make possible the
accelerated and balanced growth and development of tourism in the
Philippines which is responsible to the needs of targetted travel
markets, domestic and foreign, and beneficial to a greater number of
Filipino communities;

(6) Analyze specific geographical areas with potential tourism value

leading to the preparation of a national tourism development plan
which will establish the order of priority for the development plan of
tourist zone;

(7) Formulate a government plan for each zone in coordination with

other government agencies and local government units exercising
political jurisdiction over the area, provided, that the plan of the zone
to be developed shall cover specifically those aspects pertaining to
tourisms; provided further, that the tourism development plan is fully
coordinated and integrated with other sectoral plans for the area; and

(8) Coordinate with appropriate local government units and other

government agencies to assist in formulating and implementing zone
regulations, including building codes, hotel standards and such other
restrictions as may be necessary within a tourist zone to control its
orderly development; preserve such historical, cultural or natural
assets or relics giving the zone its tourism value and significance; and
assure adherence to approved zone development plans;

(9) Ensure through proper coordination with appropriate government

agencies and local private agencies the social growth of the
community within a tourist zone; carefully control possible negative
social impact brought about by tourism development.

Section 17. Office of Product Development. - The Office of Product

Development shall have the following functions:
(1) Develop and conceptualize new products which can lead to the
enhancement of tourist sites and facilities;

(2) Undertake pilot tests for testing the viability and acceptability of
new tourism-related products and programs; and

(3) Encourage and promote joint undertakings with the private sector
of new tourism-related products and programs.

Section 18. Office of Tourism Coordination. - The Office of Tourism

Coordination shall have the following functions:

(1) Initiate and coordinate with all sectors, both government and
private, the development of the national tourism plans and policies;

(2) Coordinate priority activities and projects of the Department, and

other government agencies, and the private sector;

(3) Enlist the assistance and support of any or all of the government
agencies in the implementation of the policies of the Department; and

(4) Provide support to all tourism-related activities of the private

sector needing government assistance.

CHAPTER 5
FOREIGN AND REGIONAL OFFICES

Section 19. Foreign Field Offices. - Subject to the approval of the

President, the Department shall have foreign offices as may be
necessary in the marketing and promotion of the Philippines as an
international tourist destination, which shall oversee and implement
the marketing and promotional programs of the Department.

Section 20. Regional Office. - The Department is authorized to

establish, operate and maintain a Regional Office in each of the
administrative regions of the country, under the immediate
supervision of the Assistant Secretary for Tourism Services and
Regional Offices. A Regional Office shall be headed by a Regional
Director and shall, within its administrative region, have the following
functions:

(1) Implement laws, policies, plans, programs, rules and regulations

of the Department;

(2) Provide economical, efficient and effective service to the people;

(3) Coordinate with regional offices of other departments, bureaus,

and agencies;

(4) Coordinate with local government units; and

(5) Perform such other functions as may be provided by law.

CHAPTER 6
ATTACHED AGENCIES

Section 21. Attached Agencies. - The Philippine Tourism Authority,

and Philippine Convention Bureau, Intramuros Administration, and
National Parks Development Committee are hereby attached to the
Department and shall continue to operate and function in accordance
with the respective charters/laws/orders provided in this Code.

Title XIV

ENVIRONMENT AND NATURAL RESOURCES

CHAPTER 1
GENERAL PROVISIONS

Section 1. Declaration of Policy. -

(1) The State shall ensure, for the benefit of the Filipino people, the
full exploration and development as well as the judicious disposition,
utilization, management, renewal and conservation of the country's
forest, mineral, land, waters, fisheries, wildlife, off-shore areas and
other natural resources, consistent with the necessity of maintaining a
sound ecological balance and protecting and enhancing the quality of
the environment and the objective of making the exploration,
development and utilization of such natural resources equitably
accessible to the different segments of the present as well as future
generations.

(2) The State shall likewise recognize and apply a true value system
that takes into account social and environmental cost implications
relative to the utilization, development and conservation of our natural
resources.

Section 2. Mandate. -

(1) The Department of Environment and Natural Resources shall be

primarily responsible for the implementation of the foregoing policy.

(2) It shall, subject to law and higher authority, be in charge of

carrying out the State's constitutional mandate to control and
supervise the exploration, development, utilization, and conservation
of the country's natural resources.

Section 3. Guidelines for Implementation. - In the discharge of its

responsibility the Department shall be guided by the following
objectives:

(1) Assure the availability and sustainability of the country's natural

resources through judicious use and systematic restoration or
replacement, whenever possible;

(2) Increase the productivity of natural resources in order to meet the

demands for the products from forest, mineral, land and water
resources of a growing population;

(3) Enhance the contribution of natural resources for achieving

national economic and social development;

(4) Promote equitable access to natural resources by the different

sectors of the population; and

(5) Conserve specific terrestrial and marine areas representative of

the Philippine natural and cultural heritage for present and future
generations.
Section 4. Powers and Functions. - The Department shall:

(1) Advise the President and the Congress on the enactment of laws
relative to the exploration, development, use, regulation and
conservation of the country's natural resources and the control of
pollution;

(2) Formulate, implement and supervise the implementation of the

government's policies, plans and programs pertaining to the
management, conservation, development, use and replenishment of
the country's natural resources;

(3) Promulgate rules and regulations in accordance with law

governing the exploration, development, conservation, extraction,
disposition, use and such other commercial activities tending to
cause the depletion and degradation of our natural resources;

(4) Exercise supervision and control over forest lands, alienable and
disposable public lands, mineral resources and, in the process of
exercising such control, impose appropriate taxes, fees, charges,
rentals and any such form of levy and collect such revenues for the
exploration, development, utilization or gathering of such resources;

(5) Undertake the exploration, assessment, classification and

inventory of the country's natural resources, using ground surveys,
remote sensing and complementary technologies;

(6) Promote proper and mutual consultation with the private sector on
matters involving natural resources exploration, development, use
and conservation;

(7) Undertake geological surveys of the whole country including its

territorial waters;

(8) Issue licenses and permits for activities related to the use and
development of aquatic resources, treasure hunting, salvaging of
sunken vessels and other similar activities:

(9) Establish policies and implement programs for the:

(a) Accelerated inventory, survey and classification of lands, forest
and mineral resources, using appropriate technology, to be able to
come up with a more accurate assessment of resource quality and
quantity;

(b) Equitable distribution of natural resources through the judicious

administration, regulation, utilization, development and conservation
of public lands, forest, water and mineral resources (including mineral
reservation areas), that would benefit a greater number of Filipinos;

(c) Promotion, development and expansion of natural resource-based

industries;

(d) Preservation of cultural and natural heritage through wildlife

conservation and segregation of national parks and other protected
areas;

(e) Maintenance of a wholesome natural environment by enforcing

environmental protection laws; and

(f) Encouragement of greater people participation and private

initiative in rural resource management;

(10) Promulgate rules and regulations necessary to:

(a) Accelerate cadastral and emancipation patent surveys, land use

planning and public land titling:

(b) Harness forest resources in a sustainable manner, to assist rural

development, support forest-based industries, and provide raw
materials to meet increasing demands, at the same time keeping
adequate reserves for environmental stability;

(c) Expedite mineral resources surveys, promote the production of

metallic and non-metallic minerals and encourage mineral marketing;

(d) Assure conservation and judicious and sustainable development

of aquatic resources.
(11) Assess, review and provide direction to, in coordination with
concerned government agencies, energy research and development
programs, including identification of sources of energy and
determination of their commercial feasibility for development;

(12) Regulate the development, disposition, extraction, exploration

and use of the country's forest, land, water and mineral resources;

(13) Assume responsibility for the assessment, development,

protection, licensing and regulation as provided for by law, where
applicable, of all energy and natural resources; the regulation and
monitoring of service contractors, licensees, lessees, and permit for
the extraction, exploration, development and use of natural resources
products; the implementation of programs and measures with the end
in view of promoting close collaboration between the government and
the private sector; the effective and efficient classification and
subclassification of lands of the public domain; and the enforcement
of natural resources and environmental laws, rules and regulations;

(14) Promulgate rules, regulations and guidelines on the issuance of

licenses, permits, concessions, lease agreements and such other
privileges concerning the development, exploration and utilization of
the country's marine, freshwater, and brackish water and over all
aquatic resources of the country and shall continue to oversee,
supervise and police our natural resources; cancel or cause to cancel
such privileges upon failure, non-compliance or violations of any
regulation, order, and for all other causes which are in furtherance of
the conservation of natural resources and supportive of the national
interest;

(15) Exercise exclusive jurisdiction on the management and

disposition of all lands of the public domain and serve as the sole
agency responsible for classification, sub-classification, surveying
and titling of lands in consultation with appropriate agencies;

(16) Implement measures for the regulation and supervision of the

processing of forest products, grading and inspection of lumber and
other forest products and monitoring of the movement of timber and
other forest products;
(17) Promulgate rules and regulations for the control of water, air and
land pollution;

(18) Promulgate ambient and effluent standards for water and air
quality including the allowable levels of other pollutants and
radiations;

(19) Promulgate policies, rules and regulations for the conservation of

the country's genetic resources and biological diversity, and
endangered habitats;

(20) Formulate an integrated, multi-sectoral, and multi-disciplinary

National Conservation Strategy, which will be presented to the
Cabinet for the President's approval;

(21) Perform such other functions as may be provided by law.

Section 5. Organizational Structure. - The Department shall consist

of the Department Proper, the Staff Offices, the Staff Bureaus, and
the Regional Offices, Provincial Offices and Community Offices.

CHAPTER 2
THE DEPARTMENT PROPER

Section 6. Composition. - The Department Proper shall be

composed of the Office of the Secretary, the Offices of the
Undersecretaries and Assistant Secretaries, and the Public Affairs
Office, Special Concerns Office, and the Pollution Adjudication Board.

Section 7. Office of the Secretary. - The Office of the Secretary shall

consist of the Secretary and his immediate staff.

Section 8. The Secretary. - The Secretary shall:

(1) Advise the President on the promulgation of rules, regulations and

other issuances relative to the conservation, management,
development and proper use of the country's natural resources;
(2) Establish policies and standards for the efficient and effective
operations of the Department in accordance with the programs of the
government;

(3) Promulgate rules, regulations and other issuances necessary in

carrying out the Department's mandate, objectives, policies, plans,
programs and projects.

(4) Exercise supervision and control over all functions and activities of
the Department;

(5) Delegate authority for the performance of any administrative or

substantive function to subordinate officials of the Department; and

(6) Perform such other functions as may be provided by law or

assigned by the President.

Section 9. Undersecretaries. - The Secretary shall be assisted by

five (5) Undersecretaries upon the recommendation of the Secretary.
The Secretary is thereby authorized to delineate, assign and/or
reassign the respective functional areas of responsibility of each
Undersecretary, Provided, That such responsibility shall be with
respect to the mandate and objectives of the Department; and
Provided, further, That no Undersecretary shall be assigned primarily
administrative responsibilities. Within his functional area of
responsibility, an Undersecretary shall have the following functions:

(1) Advise the Secretary in the promulgation of Department orders,

administrative orders and other issuances, with respect to his area of
responsibility;

(2) Exercise supervision and control over the offices, services,

operating units and officers and employees under his responsibility;

(3) Promulgate rules and regulations, consistent with Department

policies, that will efficiently and effectively govern the activities of
units under his responsibility;
(4) Coordinate the functions and activities of the units under his
responsibility with those of other units under the responsibility of other
Undersecretaries;

(5) Exercise such authority on substantive and administrative matters

related to the functions and activities of units under his responsibility
to the extent granted by the Secretary through administrative
issuances; and

(6) Perform such other functions as may be provided by law or

assigned by the Secretary.

Section 10. Assistant Secretaries. - The Secretary and the

Undersecretaries shall, in the formulation, management and
implementation of natural resources laws, policies, plans and
programs and projects, also be assisted by seven (7) Assistant
Secretaries who shall be responsible for the following: one (1) for
Policy and Planning Studies, one (1) for Foreign-Assisted and Special
Projects, one (1) for Field Operations in Luzon, one (1) for Field
Operations in the Visayas, and one (1) for Field Operations in
Mindanao, one (1) for Legal Affairs, and one (1) for Management
Services.

Section 11. Public Affairs Office. - The Public Affairs Office, under the
Office of the Secretary, shall be headed by a Director to be assisted
by an Assistant Director, and shall serve as the public information
arm of the Department. It shall be responsible for disseminating
information on natural resources development policies, plans,
programs and projects and respond to public queries related to the
development and conservation of natural resources.

Section 12. Special Concerns Office. - The Special Concerns Office,

also under the Office of the Secretary, shall be headed by a Director
to be assisted by an Assistant Director, and shall be responsible for
handling priority areas or subjects identified by the Secretary which
necessitate special and immediate attention.

Section 13. Pollution Adjudication Board. - The Pollution Adjudication

Board, under the Office of the Secretary, shall be composed of the
Secretary as Chairman, two Undersecretaries as may be designated
by the Secretary, the Director of Environmental Management, and
three others to be designated by the Secretary as members. The
Board shall assume the powers and functions of the
Commission/Commissioners of the National Pollution Control
Commission with respect to the adjudication of pollution cases under
Republic Act 3931 and Presidential Decree 984, particularly with
respect to Section 6 letters (e), (f), (g), (j), (k) and (p) of P.D. 984. The
Environmental Management Bureau shall serve as the Secretariat of
the Board. These powers and functions may be delegated to the
regional officers of the Department in accordance with rules and
regulations to be promulgated by the Board.

CHAPTER 3
THE STAFF SECTORAL BUREAUS

Section 14. Forest Management Bureau. - The Forest Management

Bureau shall be headed by a Director and assisted by an Assistant
Director, and shall integrate and absorb the powers of the Bureau of
Forest Development and the Wood Industry Development Authority
which were abolished by Executive Order No. 131, except those line
functions and powers thereof which are transferred to the regional
field office.

It shall advise the Secretary on matters pertaining to forest

development and conservation. As its primary functions, it shall:

(1) Recommend policies and/or programs for the effective protection,

development, occupancy, management and conservation of forest
lands and watersheds, including the grazing and mangrove areas;
reforestation and rehabilitation of critically denuded or degraded
forest reservations, improvement of water resource use and
development, development of national parks, preservation of
wilderness areas, game refuges and wildlife sanctuaries, ancestral
lands, wilderness areas and other natural preserves, development of
forest plantations, including rattan, bamboo, and other valuable non-
timber forest resources; and rationalization of the wood-based
industries, regulation of the utilization and exploitation of forest
resources, including wildlife, to ensure continuous supply of forest
and goods and services;
(2) Advise the regional offices in the implementation of the above
policies and/or programs;

(3) Develop plans, programs, operating standards and administrative

measures to promote the Bureau's objectives and functions;

(4) Assist in the monitoring and evaluation of forestry and watershed

development projects to ensure efficiency and effectiveness;

(5) Undertake studies on the economics of forestry and forest-based

industries, including supply and demand trends on the local, national
and international levels, identifying investment problems and
opportunities in various areas; and

(6) Perform such other functions as may be provided by law or

assigned by the Secretary.

Section 15. Lands Management Bureau. - The Lands Management

Bureau, to be headed by Director and assisted by an Assistant
Director, shall absorb the functions and powers of the Bureau of
Lands abolished by Executive Order No. 131, except those line
functions and powers thereof which are transferred to the regional
field offices.

It shall advise the Secretary on matters pertaining to rational

management and disposition and shall have the following functions:

(1) Recommend policies and programs for the efficient and effective
administration, surveys, management and disposition of alienable
and disposable lands of the public domain and other lands outside
the responsibilities of other government agencies, such as reclaimed
areas and other areas not needed for or are not being utilized for the
purposes for which they have been established;

(2) Advise the Regional Offices on the efficient and effective

implementation of policies, programs and projects for more effective
public lands management;
(3) Assist in the monitoring and evaluation of land surveys,
management and disposition of lands to ensure efficiency and
effectiveness thereof;

(4) Issue standards, guidelines, regulations and orders to enforce

policies for the maximization of land use and development;

(5) Develop operating standards and procedures to promote the

Bureau's objectives and functions; and

(6) Perform such other functions as may be provided by law or

assigned by the Secretary.

Section 16. Mines and Geo-Sciences Bureau. - The Mines and Geo-
Sciences Bureau, to be headed by a Director and assisted by an
Assistant Director shall absorb the functions of the Bureau of Mines
and Geo-Sciences, Mineral Reservation Development Board, and the
Gold Mining Development Board which were abolished by Executive
Order No. 131, except line functions and powers thereof which are
transferred to the regional field offices.

It shall advise the Secretary on matters pertaining to geology and

mineral resources exploration, development, utilization and
conservation and shall:

(1) Recommend policies, regulations or programs pertaining to

mineral resources development and geology;

(2) Advise the Secretary on the granting of mining rights and

contracts over areas containing metallic and non-metallic mineral
resources;

(3) Advise the Regional Offices on the effective implementation of

mineral development and conservation programs as well as
geological surveys;

(4) Recommend policies, regulations and oversee the development

and exploitation of mineral resources of the sea within the country's
jurisdiction such as silica sand, gold placer, magnetic and chromite
sand, etc;
(5) Assist in the monitoring and evaluation of the Bureau's programs
and projects to ensure efficiency and effectiveness thereof;

(6) Develop and promulgate standards and operating procedures on

mineral resources development and geology;

(7) Supervise and control the development and packaging of

nationally applicable technologies on geological survey, mineral
resource assessment, mining and metallurgy; the provision of
geological, metallurgical, chemical and rock mechanics laboratory
services; the conduct of marine geological and geophysical survey
and natural exploration drilling programs; and

(8) Perform such other functions as may be provided by law or

assigned by the Secretary.

Section 17. Environmental Management Bureau. - The Environmental

Management Bureau, to be headed by a Director who shall be
assisted by an Assistant Director shall, subject to the provisions of
this Code relative to the Pollution Adjudication Board, absorb and
integrate the powers and functions of the National Environmental
Protection Council, the National Pollution Control Commission, and
the Environmental Center of the Philippines which are hereby
abolished.

It shall advise the Secretary on matters relating to environmental

management, conservation, and pollution control, and shall:

(1) Recommend possible legislation, policies and programs for

environmental management and pollution control;

(2) Advise the Regional Offices in the efficient and effective

implementation of policies, programs, and projects for the effective
and efficient environmental management and pollution control;

(3) Formulate environmental quality standards such as the quality

standards for water, air, land, noise and radiations;
(4) Recommend rules and regulation for environmental impact
assessments and provide technical assistance for their
implementation and monitoring;

(5) Formulate rules and regulations for the proper disposition of solid
wastes, toxic and hazardous substances;

(6) Advise the Secretary on the legal aspects of environmental

management and pollution control and assist in the conduct of public
hearings in pollution cases;

(7) Provide secretariat assistance to the Pollution Adjudication Board;

(8) Coordinate the inter-agency committees that may be created for

the preparation of the State of the Philippine Environment Report and
the National Conservation Strategy;

(9) Provide assistance to the Regional Office in the formulation and

dissemination of information on environmental and pollution matters
to the general public;

(10) Assist the Secretary and the Regional Officers by providing

technical assistance in the implementation of environmental and
pollution laws; and

(11) Provide scientific assistance to the Regional Offices in the

conduct of environmental research programs.

Section 18. Ecosystems Research and Development Bureau. - The

Ecosystems Research and Development Bureau, to be headed by a
Director and assisted by an Assistant Director, shall absorb the
powers and functions of the Forest Research Institute and the
National Mangrove Committee, which are hereby abolished.

It shall:

(1) Formulate and recommend an integrated research program

relating to Philippine ecosystems and natural resources such as
minerals, lands, forests, as holistic and interdisciplinary fields of
inquiry;
(2) Assist the Secretary in determining a system of priorities for the
allocation of resources to various technological research programs of
the department;

(3) Provide technical assistance in the implementation and monitoring

of the aforementioned research programs;

(4) Generate technologies and provide scientific assistance in the

research and development of technologies relevant to the sustainable
uses of Philippine ecosystems and natural resources; and

(5) Assist the Secretary in the evaluation of the effectiveness of the

implementation of the integrated research programs.

The Ecosystems Research and Development Bureau shall directly

manage and administer the Forest Research Institute Research
Offices, laboratories, and forest experiment stations located at UP
Los Baños and such other field laboratories as the Secretary may
assign to its direct supervision. The Bureau shall coordinate all
technological researches undertaken by the field offices, assess and
translate all recommendable findings and disseminate such findings
for all possible users and clientele.

Section 19. Protected Areas and Wildlife Bureau. - The Protected

Areas and Wildlife Bureau, to be headed by a Director and assisted
by an Assistant Director, shall absorb the Division of Parks and
Wildlife and the Marine Parks Program of the Bureau of Forest
Development as well as the Calauit Game Preserve and Wildlife
Sanctuary, Presidential Committee on the Conservation of Tamaraw,
Ninoy Aquino Parks and Wildlife Center (formerly Parks and Wildlife
Nature Center), shares in Kabuhayan Program and Agro Forestry
State Projects of the KKK Processing Authority, all national parks,
wildlife sanctuaries and game preserves previously managed and
administered by the Ministry of Human Settlement including National
Parks Reservation situated in the provinces of Bulacan, Rizal,
Laguna and Quezon formerly declared as Bagong Lipunan Sites of
said Ministry, Magat Forest Reservation and Mt. Arayat National
Park, formerly with the Ministry of Tourism.
The Bureau shall:

(1) Formulate and recommend policies, guidelines, rules and

regulations for the establishment and management of an Integrated
Protected Areas Systems such as national parks, wildlife sanctuaries
and refuge, marine parks, and biospheric reserves;

(2) Formulate and recommend policies, guidelines, rules and

regulations for the preservation of biological diversity, genetic
resources, the endangered Philippine flora and fauna;

(3) Prepare an up-to-date listing of endangered Philippine flora and

fauna and recommend a program of conservation and propagation of
the same;

(4) Assist the Secretary in the monitoring and assessment of the

management of the Integrated Protected Areas System and provide
technical assistance to the Regional Offices in the implementation of
programs for these areas; and

(5) Perform such other functions as may be provided by law or

assigned by the Secretary.

CHAPTER 4
THE DEPARTMENT FIELD OFFICES

Section 20. Field Offices of the Department. - The Field offices of the
Department are the Environmental and Natural Resources Regional
Offices in the thirteen (13) administrative regions of the country; the
Environment and Natural Resources Provincial Office in every
province, and the Community Office in every municipality, whenever
deemed necessary.

Section 21. Environment and Natural Resources Regional Office. - A

Regional Office shall be directly under the supervision and control of
the Undersecretary for Field Operations and shall be headed by a
Regional Executive Director (with the rank of Regional Director) who
shall be assisted by five (5) Assistant Regional Technical Directors,
(with the rank of Assistant Regional Director), one (1) each for
Forestry, for Lands Management, for Mines and Geo-Sciences,
Environmental Management and Ecosystems Research, respectively,
and who shall be Career Executive Service Officers.

An Environment and Natural Resources Regional Office shall be

located in the identified regional capital and shall have the following
functions:

(1) Implement laws, policies, plans, programs, projects, and rules and
regulations of the Department to promote the sustainability and
productivity of natural resources, social equity in natural resource
utilization and environmental protection;

(2) Provide efficient and effective delivery of services to the people;

(3) Coordinate with regional offices of other departments, offices,

agencies in the region and local government units in the enforcement
of natural resource conservation laws and regulations, and in the
formulation/implementation of natural resource programs and
projects;

(4) Recommend and, upon approval, implement programs and

projects on forestry, minerals, and land management and disposition;

(5) Conduct a comprehensive inventory of natural resources in the

region and formulate regional short and long-term development plans
for the conservation, utilization and replacement of natural resources;

(6) Evolve respective regional budget in conformity with the priorities

established by the Regional Development Councils;

(7) Supervise the processing of natural resources products, grade

and inspect minerals, lumber and other wood processed products,
and monitor the movement of these products;

(8) Conduct field researches for appropriate technologies

recommended for various projects; and

(9) Perform such other functions as may be provided by law or

assigned by the Secretary.
Section 22. Provincial and Community Offices. - The Natural
resources provincial and community offices shall each be headed by
a provincial natural resource officer and community natural resource
officer, respectively. They shall take over the functions of the district
offices of the former Bureau of Forest Development, Bureau of
Lands, and Bureau of Mines and Geo-Sciences.

CHAPTER 5
ATTACHED AGENCIES AND CORPORATIONS

Section 23. Attached Agencies and Corporations. - The following

agencies and corporations shall be attached to and under the
administrative supervision of the Department:

(1) National Mapping and Research Information Authority;

(2) National Electrification Administration; and

(3) National Resources Development Corporation.

The agencies attached to the Department shall continue to operate

and function in accordance with the respective laws creating them,
except as otherwise provided in this Code.

Title XV

TRANSPORTATION AND COMMUNICATIONS

CHAPTER 1
GENERAL PROVISIONS

Section 1. Declaration of Policy. - The State is committed to the

maintenance and expansion of viable, efficient, fast, safe and
dependable transportation and communications systems as effective
instruments for national recovery and economic progress. It shall not
compete as a matter of policy with private enterprise and shall
operate transportation and communications facilities only in those
areas where private initiatives are inadequate or non-existent.
Section 2. Mandate. - The Department of Transportation and
Communications shall be the primary policy, planning, programming,
coordinating, implementing, regulating and administrative entity of the
Executive Branch of the government in the promotion, development
and regulation of dependable and coordinated networks of
transportation and communications systems as well as in the fast,
safe, efficient and reliable postal, transportation and communications
services.

Section 3. Powers and Functions.- To accomplish its mandate, the

Department shall:

(1) Formulate and recommend national policies and guidelines for the
preparation and implementation of integrated and comprehensive
transportation and communications systems at the national, regional
and local levels;

(2) Establish and administer comprehensive and integrated programs

for transportation and communications, and for this purpose, it may
call on any agency, corporation or organization, whether public or
private, whose development programs include transportation and
communications as integral parts thereof, to participate and assist in
the preparation and implementation of such programs;

(3) Assess, review and provide direction to transportation and

communications research and development programs of the
government in coordination with other institutions concerned;

(4) Administer and enforce all laws, rules and regulations in the field
of transportation and communications;

(5) Coordinate with the Department of Public Works and Highways in

the design, location, development, rehabilitation, improvement,
construction, maintenance and repair of all infrastructure projects and
facilities of the Department. However, government corporate entities
attached to the Department shall be authorized to undertake
specialized telecommunications, ports, airports and railways projects
and facilities as directed by the President of the Philippines or as
provided by law;
(6) Establish, operate and maintain a nationwide postal system that
shall include mail processing, delivery services and money order
services and promote the art of philately;

(7) Issue certificates of public convenience for the operation of public

land and rail transportation utilities and services;

(8) Accredit foreign aircraft manufacturers or international

organizations for aircraft certification in accordance with established
procedures and standards;

(9) Establish and prescribe rules and regulations for identification of

routes, zones or areas of operation of particular operators of public
land services;

(10) Establish and prescribe rules and regulations for the

establishment, operation and maintenance of such
telecommunications facilities in areas not adequately served by the
private sector in order to render such domestic and overseas services
that are necessary with due consideration for advances in
technology;

(11) Establish and prescribe rules and regulations for the issuance of
certificates of public convenience for public land transportation
utilities, such as motor vehicles, trimobiles and railways;

(12) Establish and prescribe rules and regulations for the inspection
and registration of air and land transportation facilities, such as motor
vehicles, trimobiles, railways and aircraft;

(13) Establish and prescribe rules and regulations for the issuance of
licenses to qualified motor vehicle drivers, conductors and airmen;

(14) Establish and prescribe the corresponding rules and regulations

for enforcement of laws governing land transportation, air
transportation and postal services, including the penalties for
violations thereof, and for the deputation of appropriate law
enforcement agencies in pursuance thereof;
(15) Determine, fix or prescribe charges or rates pertinent to postal
services and to the operation of public air and land transportation
utility facilities and services, except such rates or charges as may be
prescribed by the Civil Aeronautics Board under its charter and, in
cases where charges or rates are established by international bodies
or associations of which the Philippines is a participating member or
by bodies or associations recognized by the Philippine government
as the proper arbiter of such charges or rates;

(16) Establish and prescribe the rules, regulations, procedures and

standards for the accreditation of driving schools;

(17) Administer and operate the Civil Aviation Training Center

(CATC) and the National Telecommunications Training Institute
(NTTI); and

(18) Perform such other powers and functions as may be provided by

law.

Section 4. Organizational Structure. - The Department shall consist

of the Department Proper, the Department Regional Offices, the Land
Transportation Franchising and Regulatory Board, and the Attached
Agencies.

CHAPTER 2
DEPARTMENT PROPER

Section 5. Office of the Secretary. - The Office of the Secretary shall

consist of the Secretary, his immediate staff, the Franchising Review
Staff and the Investigation, Security and Law Enforcement Staff.

The Franchising Review Staff shall be headed by a Review Staff

Director with the same rank, salary and privileges of a Department
Regional Director who shall be appointed by the President upon the
recommendation of the Secretary. The Franchising Review Staff shall
assist the Secretary in the review of cases and matters pertaining to,
among others, grants of franchises and the regulation thereof.

The Investigation, Security and Law Enforcement Staff shall be

headed by a Staff Director with the same rank, salary and privileges
of a Department Service Chief. The Investigation, Security and Law
Enforcement Staff shall be responsible for: (a) providing security and
intelligence for the Department; (b) coordinating security and
intelligence activities of security units of its offices and attached
agencies; and (c) undertaking law enforcement, functions and
activities relating to land transportation.

Section 6. Undersecretaries. - The Secretary shall be assisted by

four (4) Undersecretaries. Each Undersecretary shall have control
and supervision over the respective offices and services assigned to
him by the Secretary.

Section 7. Assistant Secretaries. - The Secretary shall also be

assisted by eight (8) Assistant Secretaries each of whom shall be
responsible for the four (4) staff offices and four (4) line offices. Each
Assistant Secretary shall report to the respective Undersecretary to
whom he is assigned by the President.

Section 8. Staff Offices. - The Department shall have the following

staff offices:

(1) The Office of the Assistant Secretary for Administrative and Legal
Affairs composed of the Administrative Service and the Legal
Service;

(2) The Office of the Assistant Secretary for Finance and

Comptrollership composed of the Finance and Management Service
and the Comptrollership Service;

(3) The Office of the Assistant Secretary for Planning and Project
Development composed of the Planning Service and the Project
Development Service; and

(4) The Office of the Assistant Secretary for Management Information

and Project Management composed of the Management Information
Service and the Project Management Service.

Section 9. Line Offices. - The Department shall have the following

line offices:
(1) The Office of the Assistant Secretary for Land Transportation;

(2) The Office of the Assistant Secretary for Postal Services;

(3) The Office of the Assistant Secretary for Telecommunications;

and

(4) The Office of the Assistant Secretary for Air Transportation.

The line offices shall each have an Executive Director who shall
assist the respective Assistant Secretary in the implementation and
enforcement of the policies, programs and projects, and the pertinent
laws on their respective areas of responsibilities.

Section 10. Service Units in the Office of the Assistant Secretary for
Land Transportation. - There shall be two service units in the Office of
the Assistant Secretary for Land Transportation, namely:

(1) Law Enforcement Service, and

(2) Traffic Adjudication Service.

Each of the aforesaid service units shall be headed by a Service

Chief to be appointed by the President upon recommendation of the
Secretary of Transportation and Communication.

Section 11. Functions of the Law Enforcement Service. - The Law

Enforcement Service shall have the same functions and powers as
those that the former Law Enforcement Division in the Office of the
Assistant Secretary for Land Transportation exercised.

Section 12. Functions of the Traffic Adjudication Service. - The Traffic

Adjudication Service shall have the following powers and functions:

(1) To hear and decide cases involving violations of laws, rules and
regulations governing land transportation and to impose fines and/or
penalties therefor; provided that violations resulting in damage to
property and/or physical injuries or violations constituting offenses
punishable under the Revised Penal Code and other penal laws shall
be under the jurisdiction of the regular courts;
(2) To order the impounding of motor vehicles and confiscation of
plates or the arrest of violators of laws, rules and regulations
governing land transportation;

(3) To issue subpoena and subpoena duces tecum and to summon

witnesses to appear in any proceedings thereof, and to administer
oaths and affirmations;

(4) To promulgate rules and regulations governing the proceedings

before it; provided that except with respect to paragraph c, the rules
of procedure and evidence prevailing in the courts of law shall not be
controlling and all reasonable means to ascertain the facts in each
case shall be used without regard to technicalities of law and
procedures but all in the interest of due process; and

(5) To perform such other functions and duties as may be provided by

law, or as may be necessary, or proper or incidental to its powers and
functions.

CHAPTER 3
DEPARTMENT SERVICES

Section 13. Department Services. - The Department Services shall

include the following:

(1) Administrative Service;

(2) Legal Service;

(3) Finance and Management Service;

(4) Comptrollership Service;

(5) Planning Service;

(6) Project Development Service;

(7) Management Information Service; and

(8) Project Management Service.

Each of the above named services shall be headed by a Service

Chief appointed by the President upon the recommendation of the
Secretary.

CHAPTER 4
REGIONAL OFFICES

Section 14. Regional Offices. - The Department shall have three (3)
Regional Offices in each of the administrative regions of the country:
the Regional Office for Land Transportation, the Regional Office for
Telecommunications and the Regional Office for Postal Services.
Each Regional Office shall be headed by a Regional Director to be
assisted by an Assistant Regional Director.

The Regional Offices shall essentially be line in character and shall

be responsible for the delivery of all front line services of the
Department.

For such purposes, the Regional Offices shall have, within their
respective administrative regions, the following functions:

(1) Implement laws, policies, plans, programs, projects, rules and

regulations of the Department;

(2) Provide efficient and effective service to the people;

(3) Coordinate with regional offices of other departments, offices and

agencies;

(4) Coordinate with local government units; and

(5) Perform such other functions as may be provided by law.

The Office of the Secretary shall have direct line supervision and
control over Regional Offices.

CHAPTER 5
REGULATORY BOARD
Section 15. Land Transportation Franchising and Regulatory Board. -
The quasi-judicial powers and functions with respect to land
transportation shall be exercised through the Land Transportation
and Regulatory Board, hereinafter referred to as the "Board".

Section 16. Composition of the Board. - The Board shall be

composed of a Chairman and two (2) members with the rank, salary
and privileges of an Assistant Secretary, all of whom shall be
appointed by the President of the Philippines upon recommendation
of the Secretary of Transportation and Communications. One (1)
member of the Board shall be a member of the Bar and shall have
been engaged in the practice of law in the Philippines for at least five
(5) years, another a holder of a degree in civil engineering, and the
other a holder of a degree in economics, finance or management
both with the same number of years of experience and practice.

Section 17. Executive Director and Support Staff of the Board. - The
Board shall have an Executive Director who shall also be appointed
by the President of the Philippines upon the recommendation of the
Secretary of Transportation and Communications. He shall have the
rank, salary and privileges of a Department Service Chief. He shall
assist the Board in the performance of its powers and functions.

The Board shall be supported by the Technical Evaluation Division,

Legal Division, Management Information Division, Administrative
Division and Finance Division.

Section 18. Supervision and Control Over the Board. - The Secretary
of Transportation and Communications, through his duly designated
Undersecretary, shall exercise administrative supervision and control
over the Land Transportation Franchising and Regulatory Board.

Section 19. Powers and Functions of the Land Transportation

Franchising and Regulatory Board. - The Board shall:

(1) Prescribe and regulate routes, economically viable capacities, and

zones or areas of operation of public land transportation services
provided by motorized vehicles in accordance with the public land
transportation development plans and programs approved by the
Department of Transportation and Communications;

(2) Issue, amend, revise, suspend or cancel Certificates of Public

Convenience or permits authorizing the operation of public land
transportation services provided by motorized vehicles, and prescribe
the appropriate terms and conditions therefor;

(3) Determine, prescribe, approve and periodically review and adjust

reasonable fares, rates and other related charges, relative to the
operation of public land transportation services provided by motorized
vehicles;

(4) Issue preliminary or permanent injunctions, whether prohibitory or

mandatory, in all cases in which it has jurisdiction and in which cases
the pertinent provisions of the Rules of Court shall apply;

(5) Punish for contempt of the Board, both direct and indirect, in
accordance with the pertinent provisions of, and the penalties
prescribed by, the Rules of Court;

(6) Issue subpoena and subpoena duces tecum and to summon

witnesses to appear in any proceedings of the Board, to administer
oaths and affirmations, and, in appropriate cases, to order the search
and seizure of all vehicles and documents, upon probable cause and
as may be necessary for the proper disposition of the cases before it;

(7) Conduct investigations and hearings of complaints for violation of

the public service laws on land transportation and of the Board's rules
and regulations, orders, decisions or rulings and to impose fines or
penalties for such violations;

(8) Review motu propio the decisions/actions of the Regional

Franchising and Regulatory Offices;

(9) Promulgate rules and regulations governing proceedings before

the Board and the Regional Franchising and Regulatory Office.
However, except with respect to paragraphs 4, 5, 6, and 7 hereof, the
rules of procedure and evidence prevailing in the courts of law should
not be controlling but rather the spirit and intention of said rules. The
Board and the Regional Franchising and Regulatory Offices shall use
every and all reasonable means to ascertain facts in each case
speedily and objectively and without regard to technicalities of law
and procedures, all in the interest of due process;

(10) Fix, impose and collect, and periodically review and adjust,
reasonable fees and other related charges for services rendered;

(11) Formulate, promulgate, administer, implement and enforce rules

and regulations on land transportation public utilities, standards of
measurements or design, and rules and regulations requiring
operators of any public land transportation service to equip, install
and provide in their utilities and in their stations such devices,
equipment, facilities and operating procedures and techniques as
may promote safety, protection, comfort and convenience to persons
and property in their charges as well as the safety of persons and
property within their areas of operation;

(12) Coordinate and cooperate with other government agencies and

entities concerned with any aspect involving public land
transportation services with the end in view of effecting continuing
improvement of such services; and

(13) Perform such other functions and duties as may be provided by

law, or as may be necessary, or proper or incidental to the purposes
and objectives of the Department;

Section 20. Decisions of the Board; Appeals therefrom or Review

Thereof . - The Board, in the exercise of its powers and functions,
shall sit and render its decision en banc. Every such decision, order,
or resolution of the Board must bear the concurrence and signature of
at least two (2) members thereof.

The decision, order or resolution of the Board shall be appealable to

the Secretary within thirty (30) days from receipt of the decision.
However, the Secretary may motu propio review and decision or
action of the Board before the same becomes final.

Section 21. Regional Franchising and Regulatory Offices. - There

shall be a Regional Franchising and Regulatory Office in each of the
administrative regions of the country which shall be headed by a
Regional Director having the rank, salary and privileges of a
Department Assistant Regional Director. The Regional Franchising
and Regulatory Offices shall hear and decide uncontested
applications/petitions for routes, within their respective administrative
regions but that applications/petitions for routes extending beyond
their respective territorial jurisdiction shall be heard and decided by
the Board.

Section 22. Appeals. - The decisions, orders or resolutions of the

Regional Franchising and Regulatory Offices shall be appealable to
the Board within thirty (30) days from receipt of the decision.

CHAPTER 6
ATTACHED AGENCIES

Section 23. Attached Agencies and Corporations. - The following

agencies and corporations are attached to the Department: The
Philippine National Railways, the Maritime Industry Authority, the
Philippine National Lines, the Philippine Aerospace Development
Corporation, the Metro Manila Transit Corporation, the Office of
Transport Cooperatives, the Philippine Ports Authority, the Philippine
Merchant Marine Academy, the Toll Regulatory Board, the Light Rail
Transit Authority, the Transport Training Center, the Civil Aeronautics
Board, the National Telecommunications Commission and the Manila
International Airport Authority.

Section 24. Functions of Attached Agencies and Corporations. - The

Agencies attached to the Department shall continue to operate and
function in accordance with the respective charters or laws creating
them, except when they conflict with this Code.

Title XVI

SOCIAL WELFARE AND DEVELOPMENT

CHAPTER 1
GENERAL PROVISIONS
Section 1. Declaration of Policy. - The State is committed to the
care, protection, and rehabilitation of individuals, families and
communities which have the least in life and need social welfare
assistance and social work intervention to restore their normal
functioning and enable them to participate in community affairs.

Section 2. Mandate. - The Department shall provide a balanced

approach to welfare whereby the needs and interests of the
population are addressed not only at the outbreak of crisis but more
importantly at the stage which would inexorably lead to such crisis.
Following such strategy, the Department's objectives shall be to:

(1) Care for, protect and rehabilitate the physically and mentally
handicapped and socially disabled constituents, for effective social
functioning;

(2) Provide an integrated welfare package to its constituents on the

basis of their needs and coordinate the service facilities required from
such departments or agencies, governmental and non-governmental,
which can best provide them;

(3) Arrest the further deterioration of the socially disabling or

dehumanizing conditions of the disadvantaged segment of the
population at the community level; and

(4) Advocate for policies and measures addressing social welfare

concerns.

Section 3. Powers and Functions. - To accomplish its mandate and

objectives, the Department shall:

(1) Formulate, develop and implement plans, programs and projects

in the field of social welfare and development;

(2) Adopt policies to ensure effective implementation of programs for

public and private social welfare services;

(3) Promote, support and coordinate the establishment, expansion

and maintenance of non-government social welfare facilities, projects
and services;
(4) Establish, operate, maintain and otherwise support institutional
facilities, projects and services for its constituents;

(5) Promote, build and strengthen people's organizations for a self-

directing welfare system at the grassroots level;

(6) Promote, support and coordinate networks and facilities for the
identification and delivery of appropriate interventions to its welfare
constituents;

(7) Accredit institutions and organizations engaged in social welfare

activities and provide consultative and information services to them;

(8) Undertake researches and studies on matters pertaining to its

constituency;

(9) Initiate, promote and maintain bilateral and multi-lateral linkages

for technical cooperation, in coordination with the Department of
Foreign Affairs;

(10) Provide advisory services and develop and implement training

standard and programs for personnel, social workers and students
and third-country participants for career and staff development in
social welfare activities;

(11) Disseminate information and publish technical bulletins on social

welfare and development;

(12) Deputize law enforcement agencies to assist in the

implementation of laws, rules and regulations for the protection of the
rights of the exploited, abused and disadvantaged;

(13) Regulate fund drives, public solicitations and donations for

charitable or welfare purposes;

(14) Set standards, accredit and monitor performance of all social

welfare activities in both public and private sectors;
(15) Exercise functional and technical supervision over social workers
in other government settings or agencies like courts, hospitals,
schools and housing projects;

(16) Deputize local government units and other agencies of

government as are necessary in providing disaster relief;

(17) Coordinate all activities pertaining to the implementation of

programs and services for the disabled, the aging and other socially
disadvantaged; and

(18) Perform such other functions as may be provided by law.

Section 4. Organizational Structure. -The Department, aside from

the Department Proper comprising the Office of the Secretary, the
Offices of the Undersecretaries and Assistant Secretaries and the
Services, shall consist of the Bureaus, Regional Offices,
Provincial/City Offices and Municipal/District Offices.

CHAPTER 2
DEPARTMENT PROPER

Section 5. Office of the Secretary. - The Office of the Secretary shall

consist of the Secretary and the Secretary's immediate staff, and the
Public Affairs and Liaison Service.

Section 6. Undersecretaries. - The Secretary shall be assisted by

two (2) Undersecretaries, at least one of whom must belong to the
career executive service. One Undersecretary shall supervise internal
operations while the other Undersecretary shall handle the liaison
between the Secretary and the attached agencies of the Department.

Section 7. Assistant Secretaries. - The Secretary shall also be

assisted by three (3) career Assistant Secretaries who shall
respectively perform the following functions:

(1) Supervise the Personnel Development Service; Administrative

Service and Financial Service;
(2) Supervise the Bureau of Child and Youth Welfare; Bureau of
Women's Welfare; Bureau of Family Community Welfare; Bureau of
Emergency Assistance; and Bureau of Disable Person's Welfare;

(3) Supervise the Planning and Monitoring Service and the Legal
Service, and assist the Undersecretary and the Secretary in matters
pertaining to regional or field operations.

CHAPTER 3
DEPARTMENT SERVICES

Section 8. Services of the Department. -The Services listed in

Section 7 (1) and (3) hereof and the public Affairs and Liaison Service
shall respectively have the following functions:

(1) The Personnel Development Service shall provide the Department

with services relating to manpower, career planning and
development, personnel transactions, and employee welfare;

(2) The Financial Service shall provide the Department with services
relating to budget, collection, disbursement, and other financial
matters;

(3) The Administrative Service shall provide the Department with

services relating to records, correspondence, supplies, property and
equipment, security and general services;

(4) The Planning and Monitoring Service shall provide technical

services to the Department in the areas or overall policy formulation,
strategic and operational planning, management systems or
procedures, and the evaluation and monitoring of Department
programs, projects and internal operations;

(5) The Legal Service shall provide the Department with services on
legal matters, especially on proposed legislations;

(6) The Public Affairs and Liaison Service in the Office of the
Secretary shall provide public information services and publications
as well as coordinate and mobilize volunteers, non-governmental
organizations and cause-oriented groups in partnership with the
Department.

Each of the Services shall be headed by a Staff Director and may

have divisions whenever necessary for the performance of its
functions.

CHAPTER 4
BUREAUS AND OFFICES

Section 9. Composition. - The Staff bureaus listed in Section 7 (2)

hereof shall be essentially staff in character and as such shall
exercise technical supervision over the Regional Offices; shall be
primarily involved in the development of policies and programs within
their respective functional specializations; and shall formulate and
develop related policies, guidelines and standards necessary in
guiding the Regional Offices in the proper implementation of such
policies and programs.

Section 10. Functions. - Each of the staff bureaus shall:

(1) Formulate programs, policies, rules, regulations and standards

relative to the implementation of their respective functional
specialization;

(2) Initiate and administer pilot or special projects for demonstration

of the corresponding policies, programs, services, strategies,
methods, procedures and guidelines prior to nationwide
implementation;

(3) Audit, evaluate, and provide technical assistance and consultative

services to operating units and field offices and local government
welfare departments on program implementation;

(4) Develop standards and assess agencies for licensing and

accreditation;

(5) Review applications for regulatory purposes including tax

exemptions for foreign donations;
(6) Provide advisory services to non-governmental agencies
implementing programs and services for welfare and development;

(7) Formulate the substantive content of, and assist in the orientation
and training on, the bureaus' programs, services, strategies,
procedures, methods and guidelines;

(8) Develop indigenous literature and other media materials for

clients, volunteers and other audiences;

(9) Promote and develop a system of networking and coordination

with relevant welfare councils;

(10) Undertake studies and action researches on matters pertaining

to client welfare and development and propose relevant policies and
amendments for legislation;

(11) Maintain linkages relative to welfare programs or projects for

national, regional and interregional cooperation.

Section 11. Areas of Specialization. - The substantive/functional

areas of specialization of the staff bureaus shall be:

(1) Bureau of Emergency Assistance - relief and rehabilitation of

victims of natural calamities and social disorganization and of cultural
communities and other distressed and displaced persons;

(2) Bureau of Family and Community Welfare - assistance to socially

disadvantaged families and communities including family planning,
planning outreach programs to develop their capability in defining
needs and formulating solutions as well as setting up viable
community structures which bring about desired social changes;

(3) Bureau of the Disabled Person's Welfare - disability prevention

and rehabilitation of the physically, mentally and socially disabled
persons;

(4) Bureau of Women's Welfare - promoting women's welfare, with

specific attention to the prevention or eradication of exploitation of
women in any form, such as but not limited to prostitution and illegal
recruitment; as well as the promotion of skills for employment and
self-actualization;

(5) Bureau of Child and Youth Welfare - care and protection of

abandoned, neglected, abused or exploited children and youth,
delinquents, offenders, the disturbed, street children, victims of
prostitution and others, for their social adjustment and economic self-
sufficiency.

CHAPTER 5
REGIONAL OFFICES

Section 12. Regional Office. - The Department is hereby authorized to

establish, operate and maintain a Regional Office in each of the
administrative regions of the country.

Section 13. Functions. - A Regional Office shall:

(1) Provide within the region efficient and effective services to its
constituents; and for such purposes, establish, operate, promote and
support, at the minimum, the following welfare facilities:

(a) Vocational Rehabilitation and Special Education Center for the

Handicapped;

(b) Reception and Study Center;

(c) Rehabilitation Center for Youth Offenders;

(d) Day Care Centers;

(2) Ensure the implementation of laws, policies, programs, rules, and

regulations regarding social welfare and development within the
region;

(3) Secure effective coordination with other departments, agencies,

institutions and organizations, especially local government units
within the region;
(4) Conduct continuing studies and planning, to improve its services
to its constituents.

Section 14. Welfare Facilities. - The Regional Offices are hereby

authorized to establish, operate and maintain the following, insofar as
necessary and authorized by the Secretary:

(1) Other Vocational Rehabilitation and Special Education Centers for

the Handicapped;

(2) "Street Children" Centers;

(3) Centers for Youth with Special Needs;

(4) Other Centers for Youth Offenders;

(5) Homes for the Aged;

(6) Homes for Unwed Mothers;

(7) Drug Abuse Centers;

(8) Other Reception and Study Centers; and

(9) Such other facilities as may be necessary to assist the socially

disadvantaged.

Section 15. Regional Director. - The Regional Office shall be headed

by a Regional Director who shall be responsible for efficiently and
effectively carrying out its functions. Toward this end, and in line with
the policy of decentralization, the Regional Director shall be vested
with the authority to exercise functional and administrative
supervision over Department provincial operations as delegated by
the Secretary including the authority to contribute resources and
personnel to integrated region and province-wide development
thrusts.

The Regional Director shall be assisted by two (2) Assistant Regional

Directors, one for programs and one for administration.
CHAPTER 6
PROVINCIAL/CITY OFFICES

Section 16. Provincial/City Office. - The Department is hereby

authorized to establish, operate and maintain Provincial/City Offices
throughout the country with jurisdiction over all municipalities/districts
within the province. The Provincial/City Offices shall have the
following functions:

(1) Formulate and coordinate the implementation of operational, field-

level plans/programs of the Department;

(2) Provide specialized services and comprehensive assistance to

other department/agency units whenever necessary;

(3) Secure all pertinent feedback and information from field units as
well as appropriate department/agency units, particularly local
government units, and communicate the same regularly to the
Regional Office;

(4) Establish and maintain a vocational rehabilitation and special

education program for the handicapped in the form and magnitude
appropriate for the needs of the province.

Section 17. Provincial/City Welfare Office. - The Provincial/City Office

shall be headed by a Provincial/City Social Welfare Officer who shall
be accountable for the efficient and effective performance of its
functions and implementation of programs of the Department, within
the province. The Provincial/City Social Welfare officer shall exercise
functional administrative supervision over field operations of the
Department, including the authority to recommend that field
resources and personnel be contributed to integrated, municipality-
wide development efforts.

CHAPTER 7
MUNICIPAL/DISTRICT OFFICES

Section 18. Municipal/District Office. - The Department is hereby

authorized to establish, operate and maintain a Municipal/District
Office to service a municipality or city district which shall be headed
by the Supervising Social Welfare Officer and shall be primarily
responsible for the efficient and effective implementation of the
Department's field programs in the municipality or city, under the
supervision of the Provincial/City Office.

CHAPTER 8
ATTACHED AGENCIES

Section 19. Agencies Under Administrative Supervision and Attached

Agencies. - The Population Commission Council for the Welfare of
Children, National Nutrition Council and the National Council for the
Welfare of Disabled Person and the agencies attached to the
Department shall continue to operate and function in accordance with
their respective charters or laws creating them, except as otherwise
provided in this Code.

CHAPTER 9
FUND DRIVES

Section 20. Solicitation. - Any person, corporation, organization, or

association desiring to solicit or receive contribution for charitable or
public welfare purposes shall first secure a permit from the Regional
Offices of the Department. Upon the filing of a written application for a
permit in the form prescribed by the Regional Offices of the
Department, the Regional Director or his duly authorized
representative may, in his discretion, issue a permanent or temporary
permit or disapprove the application. In the interest of the public, he
may in his discretion renew or revoke any permit issued under Act
4075.

Section 21. Requirements. - The Regional Director of the Department

may require the person, corporation, organization or association duly
authorized to solicit contributions for the above mentioned purposes
to submit from time to time a verified report or information regarding
their activities, the period covered by the report, the collection and
expenditures made and the names and addresses of the contributors
and persons to whom assistance was rendered from the funds
obtained. This reports or information shall be open for inspection of
the general public. The Regional Director or his duly authorized
representative may, for the protection of the public, likewise
investigate the books, papers, affairs and activities related to the
aforestated purposes of any such person, corporation, organization,
or association: Provided, however, That the provisions of the
preceding Section shall not apply to any organization or institution
established for charitable or public welfare purposes in its campaign
for raising funds or soliciting public subscriptions or any means for
collecting funds which has been authorized by Executive
Proclamation.

Section 22. Fees. - Upon approval of the application for a solicitation

permit, a fee of Twenty-Five Pesos (P25.00) shall be paid to the
cashier of the Department. The money collected as fee for the
issuance of solicitation permits shall accrue to the Department as aid
for the maintenance of its institutions and social services for its
clientele.

CHAPTER 10
SOCIAL WELFARE AGENCIES AND SERVICES

Section 23. Social Welfare Services by Others. - Social welfare

services by the Department shall be without prejudice to similar
efforts by any local government unit or private agency, institution or
group. All Department units shall actively promote and extend
maximum assistance, including the provision of counterpart or
supplementary funds and resources, upon approval by the Secretary,
to such efforts.

Section 24. Social Work Agency. -

(1) No social work agency shall operate and be accredited as such

unless it is registered with the Department which shall issue the
corresponding certificate of registration.

(2) Before any social work agency shall be duly registered, the
following requirements must have been complied with:

(a) The applicant must be engaged mainly or generally in social work

activity or social services;
(b) The applicant has employed a sufficient number of duly qualified
and registered social workers to supervise and take charge of its
social service functions in accordance with accepted social work
standards;

(c) The applicant must show, in a duly certified financial statement

that at least sixty (60) percent of its funds are disbursed for direct
social work services; and

(d) The applicant keeps a social work record of all cases and welfare
activities handled by it.

(3) A certificate of registration may be revoked if after due

investigation, the Department finds that the social work agency has
failed to perform its function or has violated existing laws, rules and
regulations.

Section 25. Child Welfare Agency. -

(1) No person, natural or juridical, shall establish any child welfare

agency without first securing a license from the Department. Such
license shall not be transferable and shall be used only by the person
or institution to which it was issued at the place stated therein. No
license shall be granted unless the purpose or function of the agency
is clearly defined and stated in writing. Such definition shall include
the geographical area to be served, the children to be accepted for
care, and the services to be provided.

If the applicant is a juridical person, it must be registered in

accordance with Philippine laws.

(2) The work of all registered and licensed child welfare agencies
shall be supervised and coordinated by the Department.

(3) The Department may, after notice and hearing, suspend or revoke
the license of a child welfare agency on any of the following grounds:

(a) That the agency is being used for immoral purposes;

(b) That agency is insolvent or is not in a financial position to support
and maintain the children therein or to perform the functions for which
it was granted;

(c) That the children therein are being neglected or are

undernourished;

(d) That the place is so unsanitary as to make it unfit for children;

(e) That said agency is located in a place or community where

children should not be, or is physically dangerous to children or would
unduly expose children to crime, vice, immorality, corruption or
severe cruelty; or

(f) That said agency has by any act or commission shown its
incompetence or unworthiness to continue acting as a child welfare
agency. During the period of suspension, the agency concerned shall
not accept or admit any additional children. In any case, the
Department shall make such order as to the custody of the children
under the care of such agency as the circumstances may warrant.
The suspension may last for as long as the agency has not complied
with any order of the Department to remove or remedy the conditions
which have given rise to the suspension. The aggrieved agency may
appeal the suspension or revocation in a proper court action. In such
a case, the court shall within fifteen (15) days from the filing of the
Department's answer, conduct a hearing and decide the case, either
by lifting the suspension, or continuing it for such period of time as it
may order, or by revoking the license of the agency where the
Department has proven the revocation to be justified.

Section 26. Foster Homes. - No foster home, day care center and
other substitute parental arrangement shall operate unless it is first
registered with and licensed by the Department.

Title XVII

BUDGET AND MANAGEMENT

CHAPTER 1
GENERAL PROVISIONS
Section 1. Declaration of Policy. - The national budget shall be
formulated and implemented as an instrument of national
development, reflective of national objectives and plans; supportive of
and consistent with the socio-economic development plans and
oriented towards the achievement of explicit objectives and expected
results, to ensure that the utilization of funds and operations of
government entities are conducted effectively; formulated within the
context of a regionalized governmental structure and within the
totality of revenues and other receipts, expenditures and borrowings
of all levels of government and of government-owned or controlled
corporations; and prepared within the context of the national long-
term plans and budget programs of the Government.

Section 2. Mandate. - The Department shall be responsible for the

formulation and implementation of the National Budget with the goal
of attaining our national socio-economic plans and objectives.

The Department shall be responsible for the efficient and sound

utilization of government funds and revenues to effectively achieve
our country's development objectives.

Section 3. Powers and Functions. - The Department of Budget and

Management shall assist the President in the preparation of a
national resources and expenditures budget, preparation, execution
and control of the National Budget, preparation and maintenance of
accounting systems essential to the budgetary process, achievement
of more economy and efficiency in the management of government
operations, administration of compensation and position classification
systems, assessment of organizational effectiveness and review and
evaluation of legislative proposals having budgetary or organizational
implications.

CHAPTER 2
DEPARTMENT PROPER

Section 4. Office of the Secretary. - The Office of the Secretary shall

consist of his immediate staff, the Budget Control Staff, Research
Staff, a Regional Coordination Staff for Luzon, and a Regional
Coordination Staff for Visayas and Mindanao.
Section 5. Undersecretaries. - The Secretary shall be assisted by
five (5) Undersecretaries, who shall all be appointed by the President
upon the recommendation of the Secretary. They shall exercise
supervision over the offices, services, operating units and individuals
under their authority and responsibility.

Section 6. Assistant Secretaries. - There shall be five (5) Assistant

Secretaries, each of whom shall assist the Secretary and the
Undersecretaries in the formulation, determination and
implementation of laws, policies, plans, programs and projects on
budget and management and shall oversee the day-to-day
administration of the constituent units of the Department.

CHAPTER 3
DEPARTMENT SERVICES

Section 7. Management Services Office. - The Management

Services Office shall consist of the following bureaus:

(1) The Systems and Procedures Bureau which shall review and
design the management reporting systems, review and evaluate the
applicability and economics of computerization, purchasing/inventory
systems, formulate measures on internal controls to ensure accuracy,
integrity and reliability of records systems, and develop a system of
controls for capital operational and cash budgeting;

(2) The Organization and Productivity Improvement Bureau which

shall develop performance standards as bases for agency budgeting
and performance evaluation, conduct studies on work simplification
and methods improvement, review the equipment procurement
programs of agencies, and prepare operations manuals and conduct
continuing studies on organizational changes of government
agencies;

(3) The Compensation and Position Classification Bureau which shall

classify positions and determine appropriate salaries for specific
position classes and review the compensation benefits programs of
agencies and shall design job evaluation programs.
Section 8. The Legislative, Administrative and Procurement Services
Office. - The Legislative, Administrative, Procurement and Services
Office shall consist of:

(1) The Legislative Services which shall provide legal advice and
service to the Department Officers and employees, review legislative
proposals and provide clarificatory opinions on budget laws.

(2) The Administrative Services which shall provide the services

relative to personnel, records management, allocation of property and
supplies, and shall perform security and custodial functions.

(3) The Procurement Services which shall implement an integrated

programs for the procurement of supplies and materials for the
Department.

Section 9. The Financial and Computer Services. - The Financial

and Computer Services shall consist of:

(1) The Financial Services which shall provide services relative to

cash management, budgetary and financial matters.

(2) The Data Processing Service which shall provide computer

services, prepare and generate management reports, maintain and
operate computer-based monitoring systems.

CHAPTER 4
BUREAUS

Section 10. The Budget Operations Office. - The Budget Operations

Office shall review and analyze the work and financial flows, the
budgetary proposals of national and local government agencies and
corporations, check each agency's compliance with the budgetary
policies and project priorities, determine the budgetary implications of
foreign assisted projects from the time of project design to the
negotiation for financial assistance, prepare recommendations for
fund releases, formulate and implement fiscal policies and plans for
budget preparation and control, and conduct studies on economic
trends and factors affecting government revenues, expenditures and
borrowings. It shall consist of the following Bureaus:
(1) National Government Budget Bureaus A and B which shall
evaluate and review the budgetary proposals, work and financial
flows of the national government and ensure its compliance with
budgetary policies and project priorities of the bureaus assigned to
each group.

(2) Local Government Budget Bureau which shall recommend and

effect the release of National Assistance for Local Government
(NALGU) funds and those for autonomous regions based on
approved work and financial plans as limited by the Secretary.

(3) Government Corporation Budget Bureau which shall evaluate and

analyze the budgetary proposals, plans and financial flows of
government corporations and agencies and ensure its compliance
with budgetary policies and project priorities;

(4) Budget Planning Bureau which shall assist the Secretary in the
preparation and management of fiscal policies and plans for budget
coordination, conduct studies on economic trends and factors
affecting government revenues, expenditures and borrowings, and
shall collaborate with the Office of the President, Department of
Finance, Central Bank, National Economic and Development
Authority, and other agencies in the formulation of financial plans.

(5) Foreign Assisted Projects Bureau which shall review and evaluate
foreign assisted projects to determine the annual funding
requirements of certain projects identified by implementing agencies
and supported by foreign funding; assist the Secretary in determining
the budgetary implications of foreign assisted projects from the time
of project design to negotiations for financial assistance; ensure the
concurrence of the Secretary of Budget on all loan agreements;
evaluate the work-financial plan of projects chargeable against the
Foreign Assistance Projects (FAPS) support fund; and recommend
and effect the releases from such fund based on the approved work
financial plans as may be directed by the Secretary.

Section 11. National Accounting and Finance Office. - The National

Accounting and Finance Office shall take charge of the maintenance
of the data bank of financial information and shall provide the
necessary data required by the President, fiscal agencies and
international financial institutions, analyze and evaluate the accounts
and overall financial performance of the government, and supervise
the management of the accounts of government agencies and
instrumentalities. It shall consist of the following Bureaus:

(1) National Government Account and Finance Bureau;

(2) Local Government Accounting and Finance Bureau; and

(3) Government Corporate Accounting and Finance Bureau.

Section 12. Regional Offices. - The Regional Offices shall implement

the policies, programs, standards and guidelines on budget
administration and management in the regions.

Title XVIII

SCIENCE AND TECHNOLOGY

CHAPTER 1
GENERAL PROVISIONS

Section 1. Declaration of Policy. - The State shall:

(1) Support and encourage local scientific and technological efforts

that address national and local problems and positively contribute to
national development;

(2) Promote the development of local capability in science and

technology to achieve technological self-reliance in selected areas
that are vital to national development;

(3) Support and encourage public and private sector partnership

aimed at accelerating self-reliance in the selected areas; and

(4) Encourage and support private sector initiatives in science and

technology and provide the necessary incentives and assistance to
enable the private sector to take increasing responsibility and a
greater role in the country's research and development efforts.
Section 2. Mandate. - The Department shall provide central
direction, leadership and coordination of scientific and technological
efforts and ensure that the results therefrom are geared and utilized
in areas of maximum economic and social benefits for the people.

The Department shall formulate and implement policies, plans,

programs and projects for the development of science and
technology and for the promotion of scientific and technological
activities for both the public and private sectors and ensure that the
results of scientific and technological activities are properly applied
and utilized to accelerate economic and social development.

The Department shall continually review the state and needs of

science and technology in the context of the country's developmental
goals.

Section 3. Powers and Functions. - To accomplish its mandate, the

Department shall:

(1) Formulate and adopt a comprehensive National Science and

Technology Plan including specific goals, policies, plans, programs
and projects based on the recommendation of the Inter-Council
Review Board and, upon approval by the President, monitor and
coordinate its funding and implementation by all government
agencies and instrumentalities;

(2) Promote, assist and where appropriate, undertake scientific and

technological research and development in those areas which are
determined to be vital to the country's development and offer
optimum returns for the resources employed;

(3) Promote the development of indigenous technology and

adaptation and innovation of suitable imported technology and in this
regard, undertake technology development up to the commercial
state, preferably in joint venture with the private sector or with public
agencies;

(4) Undertake design and engineering work to complement its

research and development functions;
(5) Promote, assist and where appropriate undertake the transfer of
the results of scientific and technological research and development,
to their end-users;

(6) Promote, assist and where appropriate undertake technological

services needed by agriculture, industry, transport and the general
public;

(7) Develop and maintain an information system and data-bank on

science and technology for use by both the public and private
sectors;

(8) Develop and implement, together with other entities concerned,

programs for strengthening scientific and technological capabilities in
the relevant discipline through manpower training, and through
infrastructure and institution building and rationalization, in both the
public and private sectors;

(9) Promote public consciousness of science and technology;

(10) Undertake policy research, technology assessment studies,

feasibility studies and technical studies; and

(11) Perform such other functions as may be provided by law.

Section 4. Structural Organization. - The Department shall consist of

the Office of the Secretary, Undersecretaries and Assistant
Secretaries, the Services, Inter-Council Review Board, Sectoral
planning Councils, Institutes and Regional Offices. The Secretary
shall have supervision and control of the Department except the Inter-
Council Review Board and the Sectoral Planning Councils over which
he shall only exercise administrative supervision.

CHAPTER 2
DEPARTMENT PROPER

Section 5. Office of the Secretary. - The Office of the Secretary shall

consist of the Secretary and his immediate staff.
Section 6. Undersecretaries. - The Secretary shall be assisted by
three (3) Undersecretaries, one for research and development, one
for regional operations and one for scientific and technical services.
The Undersecretaries shall have supervision over the Institutes under
their respective functional areas of responsibility.

Section 7. Assistant Secretaries. - The Secretary shall also be

assisted by three (3) Assistant Secretaries.

CHAPTER 3
SERVICES

Section 8. Services. - The Services of the Department shall consist

of the following:

(1) Planning and Evaluation Service, which shall be responsible for

providing the Department with efficient and effective services relating
to planning, programs and project monitoring and development;

(2) Financial and Management Service, which shall be responsible for

providing the Department with efficient and effective staff advice and
assistance on budgetary, financial, and management improvement
matters;

(3) Administrative and Legal Service, which shall be responsible for

providing the Department with efficient and effective services relating
to personnel, information, records, supplies, equipment collections,
disbursement, security and custodial work, and all legal matters.

CHAPTER 4
BOARD, COUNCILS AND INSTITUTES

Section 9. Inter-Council Review Board. - There shall be an Inter-

Council Review Board, composed of the Secretaries or their
designated Undersecretaries who are members of the sectoral
planning councils under Sections 10, 11, 12, 13, 14, and 15, and shall
be chaired by the Secretary of Science and Technology.

The main function of the Board shall be to review the plans of the
sectoral planning councils and the National Science and Technology
Plan and, in connection therewith, shall be assisted by the Planning
and Evaluation Service.

Section 10. Sectoral Planning Councils. - There shall be five (5)

sectoral planning councils as follows:

(1) Philippine Council for Industry and Energy Research and

Development, for industry and energy and mineral resources;

(2) Philippine Council for Health Research and Development for

health;

(3) Philippine Council for Agriculture, Forestry and Natural Resources

Research and Development, for agriculture and forestry resources;

(4) Philippine Council for Aquatic and Marine Research and

Development, for aquatic and marine resources; and

(5) Philippine Council for Advanced Science and Technology

Research and Development, for advanced science and technology.

Each of the councils shall be responsible, in its respective sector, for

the formulation of strategies, policies, plans, programs and projects
for science and technology development; for programming and
allocation of government and external funds for research and
development; for monitoring of research and development projects;
and for the generation of external funds.

Each council shall have a secretariat which shall be headed by an

Executive Director who shall be appointed by the President upon the
recommendation of the Secretary.

Section 11. Philippine Council for Industry and Energy Research and
Development. - The Philippine Council for Industry and Energy
Research and Development shall be under the administrative
supervision of the Department, and shall consist of the Secretary as
Chairman and eight (8) members, as follows: Secretary of Trade and
Industry, Secretary of Transportation and Communications, Secretary
of Public Works and Highways or their designated Undersecretaries,
and Executive Director of the Council Secretariat, and four (4)
representatives of the private sector in the field of industry and
energy, who are chief executive officers of their respective companies
in the field of industry or energy or are acknowledged leaders in their
professions to be appointed by the President, in their personal
capacity, upon recommendation of the Secretary, each of whom shall
be for a term of two (2) years; Provided, however, that the tenure of
the members first appointed by the President shall be as follows: two
(2) for one (1) year and two (2) for two (2) years, as fixed in their
respective appointments. The members shall serve and continue to
hold office until their respective successors shall have been duly
appointed and qualified. Appointment to any vacancy in the Council
shall be by the President and shall only be for the unexpired portion
of the term of the predecessor.

Section 12. Philippine Council for Agriculture and Forestry Research

and Development. - The Philippine Council for Agriculture and
Forestry Research and Development shall be under the
administrative supervision of the Department, and shall consist of the
Secretary as Chairman and eight (8) members, as follows: Secretary
of Agriculture and Food, Secretary of Natural Resources or their
designated Undersecretaries, Chancellor of the University of the
Philippines at Los Baños, Administrator of the National Food
Authority and Executive Director of the Council Secretariat and three
(3) representatives of the private sector in the fields of agriculture or
forestry, who are chief executive officers of their respective
companies in the field of agriculture or forestry or are acknowledged
leaders in their professions to be appointed by the President, in their
personal capacity, upon recommendation of the Secretary, each of
whom shall be for a term of two (2) years; Provided, however, that the
tenure of the members first appointed by the President shall be as
follows: one (1) for one (1) year and two (2) for two (2) years, as fixed
in their respective appointments. The members shall serve and
continue to hold office until their successors shall have been duly
appointed and qualified. Appointment to any vacancy in the Council
shall be by the President and shall only be for the unexpired portion
of the term of the predecessor.

Section 13. Philippine Council for Health Research and Development.

- The Philippine Council for Health Research and Development shall
be under the administrative supervision of the Department, and shall
consist of the Secretary as Chairman and eight (8) members, as
follows: Secretary of Health or his designated Undersecretary,
Chancellor of the University of the Philippines of Manila, Executive
Director of the National Nutrition Council, Executive Director of the
Council Secretariat, and four (4) representatives of the private sector
in the field of health, who are chief executive officers of their
respective companies in the field of health or are acknowledged
leaders in their professions to be appointed by the President, in their
personal capacity, upon recommendation of the Secretary, each of
whom shall be for a term of two (2) years; however, that the tenure of
the members first appointed by the President shall be as follows: two
(2) for one (1) year and two (2) for two (2) years, as fixed in their
respective appointments. The members shall serve and continue to
hold office until their successors shall have been duly appointed and
qualified. Appointment to any vacancy in the Council shall be by the
President and shall only be for the unexpired portion of the term of
the predecessor.

Section 14. Philippine Council for Aquatic and Marine Research and
Development. - The Philippine Council for Aquatic and Marine
Research and Development shall be under the administrative
supervision of the Department, and shall consist of the Secretary as
Chairman, and eight (8) members as follows: Secretary of Agriculture
and Food, Secretary of Natural Resources or their designated
Undersecretaries, Executive Director of the Council Secretariat, two
(2) representatives from the academic/research institution and three
(3) representatives from the private sector who are chief executive
officers of their respective companies in the field of aquaculture or
marine research or development or are acknowledged leaders of their
professions to be appointed by the President, in their personal
capacity, upon recommendation of the Secretary, each of whom shall
be for a term of two (2) years; Provided, however, that the terms of
the members first appointed by the President shall be as follows: two
(2) for one (1) year and the other three (3) for two (2) years, as fixed
in their respective appointments. The members shall serve and
continue to hold office until their successors shall have been duly
appointed and qualified. Appointment to any vacancy in the Council
shall be by the President and shall only be for the unexpired portion
of the term of the predecessor.
Section 15. Philippine Council for Advanced Science and Technology
Research and Development. - The Philippine Council for Advanced
Science and Technology Research and Development shall be under
the Administrative supervision of the Department and shall consist of
the Secretary as Chairman and eight (8) members, as follows:
Secretary of Education, Culture and Sports or his designated
Undersecretary, President of the University of the Philippines System,
two (2) representatives from the government sector, and four (4)
representatives from the private sector in the field of advanced
science research, all of whom shall be appointed by the President, in
their personal capacity, upon recommendation of the Secretary, each
of whom shall serve for a term of two (2) years.

Section 16. Institutes. - The Institutes of the Department are the

following, which shall be line in character: Industrial Technology
Development Institute; Philippine Nuclear Research Institute; Food
and Nutrition Research Institute; Forest Products Research and
Development Institute; Philippine Textile Research Institute;
Advanced Science and Technology Institute; Science Education
Institute; Science and Technology Information Institute; and
Technology Application Promotion Institute; Philippine Atmospheric,
Geophysical and Astronomical Services Administration, and
Philippine Institute of Volcanology and Seismology. Each Institute
shall be headed by a Director, who shall be appointed by the
President upon the recommendation of the Secretary and shall be
assisted by one or more Deputy Directors as may be necessary.

Section 17. Industrial Technology Development Institute. - The

Industrial Technology Development Institute shall have the following
functions:

(1) Undertake applied research and development to develop

technologies and technological innovations in the field of industrial
manufacturing, mineral processing and energy;

(2) Undertake the transfer of research results directly to end-users or

preferably via linkage units of other government agencies;
(3) Undertake technical services, such as but not limited to,
standards, analytical and calibration services mandated by law or as
needed by industry; and

(4) Conduct training and provide technical advisory and consultancy

services to industry clientele and end-users.

Section 18. Philippine Nuclear Research Institute. - The Philippine

Nuclear Research Institute shall have the following functions:

(1) Conduct research and development on the application of radiation

and nuclear materials, processes and techniques in agriculture, food,
health, nutrition and medicine and in industrial or commercial
enterprises;

(2) Undertake the transfer of research reactors and other radiation

facilities; and

(3) License and regulate activities relative to production, transfer, and

utilization of nuclear and radioactive substances.

Section 19. Food Nutrition Research Institute. - The Food Nutrition

Research Institute shall have the following functions:

(1) Undertake research that defines the citizenry's nutritional status,

with reference particularly to the malnutrition problem, its causes and
effects, and identify alternative solutions to them;

(2) Develop and recommend policy options, strategies, programs and

projects, which address the malnutrition problem for implementation
by the appropriate agencies; and

(3) Disseminate research findings and recommendations to the

relevant end-users.

Section 20. Forest Products Research and Development Institute. -

The Forest Products Research and Development Institute shall have
the following functions:
(1) Conduct applied research and development in secondary and
tertiary processing for the forest-based industry to generate
information and technology which can improve the utility value of
wood and other forest products;

(2) Undertake the transfer or completed researches directly to the

end-users or via linkage units of other government agencies;

(3) Undertake technical services and provide training programs.

Section 21. Philippine Textile Research Institute. - The Philippine

Textile Research Institute shall have the following functions:

(1) Conduct applied research and development for the textile industry
sector;

(2) Undertake the transfer of completed researches to end-users or

via linkage units for other government agencies; and

(3) Undertake technical services and provide training programs.

Section 22. Advanced Science and Technology Institute. - The

Advanced Science and Technology Institute shall have the following
functions:

(1) Undertake long-term researches to strengthen and modernize

science and technology infrastructure;

(2) Conduct research and development work in the advanced fields of

studies including biotechnology and microelectronics; and

(3) Complement the overall endeavor in the scientific field with

intensive activities in the computer and information technologies.

Section 23. Science Education Institute. - The Science Education

Institute shall have the following functions:

(1) Undertake science education and training;

(2) Administer scholarships, awards and grants;

(3) Undertake science and technology manpower development; and

(4) Formulate plans and establish programs and projects for the
promotion and development of science and technology education and
training in coordination with the Department of Education, Culture and
Sports, and other institutions of learning in the field of science and
technology.

Section 24. Science and Technology Information Institute. - The

Science and Technology Information Institute shall have the following
functions:

(1) Establish a science and technology databank and library;

(2) Disseminate science and technology information; and

(3) Undertake training on science and technology information.

Section 25. Technology Application and Promotion Institute. - The

Technology Application and Promotion Institute (TAPI) whose primary
responsibility is to serve as the implementing arm of the Department
in promoting the commercialization of technologies and in marketing
the services of the other operating units in the Department shall have
the following functions:

(1) Undertake contract research, particularly at the pilot plant and

semi-commercial stage;

(2) Provide technical consultancy including engineering design

services, patenting and licensing services; and

(3) Provide grants and/or venture-financing for new and/or emerging

projects.

Section 26. Philippine Atmospheric, Geophysical and Astronomical

Services Administration. - The Philippine Atmospheric, Geophysical
and Astronomical Services Administration shall have the following
functions:
(1) Maintain a nationwide network pertaining to observation and
forecasting of weather and other climatological conditions affecting
national safety, welfare and economy;

(2) Undertake activities relative to observation, collection,

assessment and processing of atmospheric and allied data for the
benefit of agriculture, commerce and industry;

(3) Engage in studies of geophysical and astronomical phenomena

essential to the safety and welfare of the people;

(4) Undertake researches on the structure, development and motion

of typhoons and formulate measures for their moderation; and

(5) Maintain effective linkages with scientific organizations here and

abroad, and promote exchange of scientific information and
cooperation among personnel engaged in atmospheric, geophysical
and astronomical studies.

Section 27. Philippine Institute of Volcanology and Seismology. - The

Philippine Institute of Volcanology and Seismology shall have the
following functions:

(1) Predict the occurrence of volcanic eruptions and earthquakes and

their geotectonic phenomena;

(2) Determine how eruptions and earthquakes shall occur and the
likely areas to be affected;

(3) Exploit the positive aspects of volcanoes and volcanic terrain in

furtherance of the socio-economic development efforts of the
government;

(4) Generate sufficient data for forecasting volcanic eruptions and

earthquakes;

(5) Formulate appropriate disaster-preparedness plans; and

(6) Mitigate hazards of volcanic activities through appropriate

detection, forecast, and warning systems.
CHAPTER 5
REGIONAL OFFICES

Section 28. Regional Offices. - The Department is authorized to

establish, operate and maintain a Regional Office, whenever
appropriate, in each of the administrative regions of the country, to be
headed by a Regional Director who shall report and be subject to the
supervision of, the Undersecretary for Regional Operations. A
Regional Office shall have, within its administrative region, the
following functions:

(1) Implement laws, rules, regulations, policies, plans, programs and

projects of the Department;

(2) Provide efficient and effective service to the people;

(3) Coordinate with regional offices of other departments, offices and

agencies in the administrative region;

(4) Coordinate with local government units; and

(5) Perform such other functions as may be provided by law.

Section 29. Department Offices in Other Countries. - The Department

may also have such offices and representatives in other countries in
places where its presence is considered necessary, subject to the
approval of the President for each of them.

CHAPTER 6
ATTACHED AGENCIES

Section 30. Attached Agencies. - The following agencies shall be

attached to the Department: the Philippine National Science Society,
the National Academy of Science and Technology, the Philippine
Science High School, and the Metals Industry Research and
Development Center.

Section 31. The Philippine National Science Society. - The Philippine

National Science Society shall be a corporate body composed of
prominent scientists and technical men and shall have the following
functions:

(1) To stimulate research in the mathematical, physical, biological

and other basic sciences and in the application of these sciences to
engineering, agriculture, medicine, and other useful arts, with the
object of increasing knowledge and of contributing in other ways to
the public welfare;

(2) To give encouragement to individual initiative in research as

fundamentally important to the advancement of science; and

(3) To gather and collate scientific and technical information at home

and abroad, in cooperation with governmental and other agencies
and to render such information available to duly accredited persons.

Section 32. Powers of the Philippine National Science Society. - The

Philippine National Science Society shall have the power to:

(1) Make its own organization, including its Constitution, by-laws and
rules and regulations;

(2) Fill all vacancies created by death, resignation or otherwise;

(3) Provide for the election of members, division into classes, and for
all other matters needful or usual in such institution;

(4) Receive bequests and donations and hold the same in trust, to be
applied in aid of scientific investigations according to the will of the
donors;

(5) Be exempt from the payment of all internal-revenue taxes, fees,

assessments and other charges of the Government in carrying out its
aims, functions, and powers;

(6) Submit an annual report to the Congress and to the President of

the Philippines an accurate account of its work and activities during
the corresponding fiscal year; and
(7) Perform such powers as may be provided by law or necessary to
carry out its purposes and functions.

Section 33. The National Academy of Science and Technology. - The

National Academy of Science and Technology shall be composed of
outstanding scientists to serve as reservoir of competent and
technological manpower for the country. The total membership of the
Academy shall not exceed fifty (50) at any one time; however, this
number may be increased by a two-thirds vote of all the members
and approval thereof by the President.

The Academy shall have its own Secretariat/Administrative staff and

shall have the following functions; and powers:

(1) Provide its members the following benefits and privileges:

(a) free publications of scientific and technological works:

(b) travel support for attendance and participation in international

conference; and

(c) such other incentives, financial or otherwise designed to promote

a scientific and technological effort and achievement.

(2) Recommend annually for Presidential awards not more than ten
(10) scientists for distinguished individual or collaborative
achievement in science or technology who shall be accorded by the
President the rank and title of "National Scientists." Said "National
Scientists" shall each be given gratuity in such amount to be fixed by
the Academy and entitled to other privileges as enjoyed by the
National Artists.

(3) Engage in other projects and programs designed to recognize

outstanding achievements in science to promote scientific
productivity.

Section 34. The Philippine Science High School. - The Philippine

Science High School shall offer on a free scholarship basis a
secondary course with special emphasis on subject pertaining to the
sciences with the end view of preparing its students for a science
career. The exercise of its corporate powers is vested exclusively in
the Board of Trustees and in the Director of the High School insofar
as authorized by said Board. The Board of Trustees shall be
composed of the Secretary of Science and Technology, who shall be
ex officio Chairman of the Board, the Secretary of Education, who
shall be ex officio Vice-Chairman, and the following members: the
President of the University of the Philippines, the Chairman of the
UNESCO National Commission of the Philippines, the Director of the
Philippine Science High School, all ex officio members, a
representative from the American-Philippine Science Foundation,
Inc., to be designated by the President, one representative from the
Philippine National Science Society, one representative from the
National Academy of Science and Technology, one member
representing industry, and one member representing agriculture.

The members of the Board representing the Philippine National

Science Society, the National Academy of Science and Technology,
Industry and Agriculture shall be appointed by the President of the
Philippines upon the recommendation of the Secretary of Science
and Technology.

Section 35. The Metal Industry and Research Development Center. -

The Metals Industry and Research Development Center shall be non
profit research and technological institution which shall provide both
the government and the private sector with professional management
and technical expertise on such vital activities for the development of
the industry as training of engineers and technicians, information
exchange, trade accreditation service, quality control and testing of
metal products, research and business economic advisory services.

The Administration of the Center and the exercise of its corporate

powers are vested exclusively in the Board of Trustees which shall be
composed of the Secretary of Science and Technology, who shall be
ex officio Chairman, the Secretary of Trade and Industry, who shall
be ex officio Co-Chairman, and the following members: the Executive
Director of the Philippine Council for Industry and Energy Research
and Development, a representative each from the Department of
Natural Resources, the National Economic and Development
Authority, the Metal Industry Research and Development Center and
three representatives from the metals, engineering and allied
industries sub-sector to be appointed by the Secretary of Science and
Technology.

The Center shall have the powers and functions assigned to it by law.

Title I

CONSTITUTIONAL COMMISSIONS

Subtitle A

CIVIL SERVICE COMMISSION

CHAPTER 1
GENERAL PROVISIONS

Section 1. Declaration of Policy. - The State shall insure and

promote the Constitutional mandate that appointments in the Civil
Service shall be made only according to merit and fitness; that the
Civil Service Commission, as the central personnel agency of the
Government shall establish a career service, adopt measures to
promote morale, efficiency, integrity, responsiveness, and courtesy in
the civil service, strengthen the merit and rewards system, integrate
all human resources development programs for all levels and ranks,
and institutionalize a management climate conducive to public
accountability; that public office is a public trust and public officers
and employees must at all times be accountable to the people; and
that personnel functions shall be decentralized, delegating the
corresponding authority to the departments, offices and agencies
where such functions can be effectively performed.

Section 2. Duties and Responsibilities of Public Officers and

Employees. - Public Officers and employees shall have the duties,
responsibilities, and accountability provided in Chapter 9, Book I of
this Code.

Section 3. Terms and Conditions of Employment. - The terms and

conditions of employment of all government employees, including
those in government-owned or controlled corporations with original
charters, shall be fixed by law. The terms and conditions of
employment which are not fixed by law may be the subject of
negotiation between duly recognized employees' organizations and
appropriate government authorities.

Section 4. Compensation. - The Congress shall provide for the

standardization of compensation of government officials and
employees including those in government-owned or controlled
corporations with original charters, taking into account the nature of
the responsibilities pertaining to, and the qualifications required for
the position concerned.

Section 5. Definitions of Terms. - As used in this title, the following

shall be construed thus:

(1) Agency means any bureau, office, commission, administration,

board, committee, institute, corporation with original charter, whether
performing governmental or proprietary function, or any other unit of
the National Government, as well as provincial, city or municipal
government, except as hereinafter otherwise provided.

(2) Appointing officer is the person or body authorized by law to make

appointments in the Philippine Civil Service.

(3) Class includes all positions in the government service that are
sufficiently similar as to duties and responsibilities and require similar
qualifications that can be given the same title and salary and for all
administrative and compensation purposes, be treated alike.

(4) Commission refers to the Civil Service Commission.

(5) Chairman refers to the Chairman of the Commission.

(6) Commissioner refers to either of the two other members of the

Commission.

(7) Department includes any of the executive departments or entities

having the category of a department including the judiciary,
Commission on Elections and Commission on Audit.
(8) Eligible refers to a person who obtains a passing grade in a civil
service examination or is granted a civil service eligibility and whose
name is entered in the register of eligibles.

(9) Examination refers to a civil service examination conducted by the

Commission and its regional offices or by other departments or
agencies with the assistance of the Commission, or in coordination or
jointly with it, and those that it may delegate to departments and
agencies pursuant to this Title, or those that may have been
delegated by law.

(10) Form refers to those prescribed by the Civil Service Commission.

CHAPTER 2
COVERAGE OF THE CIVIL SERVICE

Section 6. Scope of the Civil Service. -

(1) The Civil Service embraces all branches, subdivisions,

instrumentalities, and agencies of the Government, including
government-owned or controlled corporations with original charters.

(2) Positions in the Civil Service shall be classified into career service
and non-career service.

Section 7. Career Service. - The Career Service shall be

characterized by (1) entrance based on merit and fitness to be
determined as far as practicable by competitive examination, or
based on highly technical qualifications; (2) opportunity for
advancement to higher career positions; and (3) security of tenure.

The Career Service shall include:

(1) Open Career positions for appointment to which prior qualification

in an appropriate examination is required;

(2) Closed Career positions which are scientific, or highly technical in

nature; these include the faculty and academic staff of state colleges
and universities, and scientific and technical positions in scientific or
research institutions which shall establish and maintain their own
merit systems;

(3) Positions in the Career Executive Service; namely,

Undersecretary, Assistant Secretary, Bureau Director, Assistant
Bureau Director, Regional Director, Assistant Regional Director, Chief
of Department Service and other officers of equivalent rank as may
be identified by the Career Executive Service Board, all of whom are
appointed by the President;

(4) Career officers, other than those in the Career Executive Service,
who are appointed by the President, such as the Foreign Service
Officers in the Department of Foreign Affairs;

(5) Commissioned officers and enlisted men of the Armed Forces

which shall maintain a separate merit system;

(6) Personnel of government-owned or controlled corporations,

whether performing governmental or proprietary functions, who do
not fall under the non-career service; and

(7) Permanent laborers, whether skilled, semi-skilled, or unskilled.

Section 8. Classes of Positions in the Career Service. -

(1) Classes of positions in the career service appointment to which

requires examinations shall be grouped into three major levels as
follows:

(a) The first level shall include clerical, trades, crafts, and custodial
service positions which involve non-professional or subprofessional
work in a non-supervisory or supervisory capacity requiring less than
four years of collegiate studies;

(b) The second level shall include professional, technical, and

scientific positions which involve professional, technical, or scientific
work in a non-supervisory or supervisory capacity requiring at least
four years of college work up to Division Chief level; and
(c) The third level shall cover positions in the Career Executive
Service.

(2) Except as herein otherwise provided, entrance to the first two

levels shall be through competitive examinations, which shall be open
to those inside and outside the service who meet the minimum
qualification requirements. Entrance to a higher level does not require
previous qualification in the lower level. Entrance to the third level
shall be prescribed by the Career Executive Service Board.

(3) Within the same level, no civil service examination shall be

required for promotion to a higher position in one or more related
occupation groups. A candidate for promotion should, however, have
previously passed the examination for that level.

Section 9. Non-Career Service. - The Non-Career Service shall be

characterized by (1) entrance on bases other than those of the usual
tests of merit and fitness utilized for the career service; and (2) tenure
which is limited to a period specified by law, or which is coterminous
with that of the appointing authority or subject to his pleasure, or
which is limited to the duration of a particular project for which
purpose employment was made.

The Non-Career Service shall include:

(1) Elective officials and their personal or confidential staff;

(2) Secretaries and other officials of Cabinet rank who hold their
positions at the pleasure of the President and their personal or
confidential staff(s);

(3) Chairman and members of commissions and boards with fixed

terms of office and their personal or confidential staff;

(4) Contractual personnel or those whose employment in the

government is in accordance with a special contract to undertake a
specific work or job, requiring special or technical skills not available
in the employing agency, to be accomplished within a specific period,
which in no case shall exceed one year, and performs or
accomplishes the specific work or job, under his own responsibility
with a minimum of direction and supervision from the hiring agency;
and

(5) Emergency and seasonal personnel.

CHAPTER 3
ORGANIZATION AND FUNCTIONS OF THE CIVIL SERVICE
COMMISSION

Section 10. Composition. - The Commission shall be composed of a

Chairman and two Commissioners who shall be natural born citizens
of the Philippines and, at the time of their appointment, at least thirty-
five years of age, with proven capacity for public administration, and
must not have been candidates for any elective position in the
elections immediately preceding their appointment.

Section 11. Appointment of Chairman and Commissioners. - The

Chairman and the Commissioners shall be appointed by the
President with the consent of the Commission on Appointments for a
term of seven years without reappointment. Of the first appointed, the
Chairman shall hold office for seven years, a Commissioner for five
years, and another Commissioner for three years, without
reappointment. Appointment to any vacancy shall be only for the
unexpired term of the predecessor. In no case shall any Member be
appointed or designated in a temporary or acting capacity.

Section 12. Powers and Functions. - The Commission shall have the
following powers and functions:

(1) Administer and enforce the constitutional and statutory provisions

on the merit system for all levels and ranks in the Civil Service;

(2) Prescribe, amend and enforce rules and regulations for carrying
into effect the provisions of the Civil Service Law and other pertinent
laws;

(3) Promulgate policies, standards and guidelines for the Civil Service
and adopt plans and programs to promote economical, efficient and
effective personnel administration in the government;
(4) Formulate policies and regulations for the administration,
maintenance and implementation of position classification and
compensation and set standards for the establishment, allocation and
reallocation of pay scales, classes and positions;

(5) Render opinion and rulings on all personnel and other Civil
Service matters which shall be binding on all heads of departments,
offices and agencies and which may be brought to the Supreme
Court on certiorari;

(6) Appoint and discipline its officials and employees in accordance

with law and exercise control and supervision over the activities of the
Commission;

(7) Control, supervise and coordinate Civil Service examinations. Any

entity or official in government may be called upon by the
Commission to assist in the preparation and conduct of said
examinations including security, use of buildings and facilities as well
as personnel and transportation of examination materials which shall
be exempt from inspection regulations;

(8) Prescribe all forms for Civil Service examinations, appointments,

reports and such other forms as may be required by law, rules and
regulations:

(9) Declare positions in the Civil Service as may properly be primarily

confidential, highly technical or policy determining;

(10) Formulate, administer and evaluate programs relative to the

development and retention of qualified and competent work force in
the public service;

(11) Hear and decide administrative cases instituted by or brought

before it directly or on appeal, including contested appointments, and
review decisions and actions of its offices and of the agencies
attached to it. Officials and employees who fail to comply with such
decisions, orders, or rulings shall be liable for contempt of the
Commission. Its decisions, orders, or rulings shall be final and
executory. Such decisions, orders, or rulings may be brought to the
Supreme Court on certiorari by the aggrieved party within thirty (30)
days from receipt of a copy thereof;

(12) Issue subpoena and subpoena duces tecum for the production of
documents and records pertinent to investigation and inquiries
conducted by it in accordance with its authority conferred by the
Constitution and pertinent laws;

(13) Advise the President on all matters involving personnel

management in the government service and submit to the President
an annual report on the personnel programs;

(14) Take appropriate action on all appointments and other personnel

matters in the Civil Service including extension of Service beyond
retirement age;

(15) Inspect and audit the personnel actions and programs of the
departments, agencies, bureaus, offices, local government units and
other instrumentalities of the government including government-
owned or controlled corporations; conduct periodic review of the
decisions and actions of offices or officials to whom authority has
been delegated by the Commission as well as the conduct of the
officials and the employees in these offices and apply appropriate
sanctions when necessary;

(16) Delegate authority for the performance of any function to

departments, agencies and offices where such functions may be
effectively performed;

(17) Administer the retirement program for government officials and

employees, and accredit government services and evaluate
qualifications for retirement;

(18) Keep and maintain personnel records of all officials and

employees in the Civil Service; and

(19) Perform all functions properly belonging to a central personnel

agency and such other functions as may be provided by law.
Section 13. Duties and Responsibilities of the Chairman. - Subject to
policies and rules adopted by the Commission, the Chairman shall:

(1) Direct all operations of the Commission;

(2) Establish procedures for the effective operations of the

Commission;

(3) Transmit to the President rules and regulations, and other

guidelines adopted by the Chairman which require Presidential
attention including annual and other periodic reports;

(4) Issue appointments to, and enforce decisions on administrative

discipline involving officials and employees of the Commission;

(5) Delegate authority for the performance of any function to officials

and employees of the Commission;

(6) Approve and submit the annual and supplemental budget of the
Commission; and

(7) Perform such other functions as may be provided by law.

Section 14. Membership of the Chairman in Boards. - The Chairman

shall be a member of the Board of Directors or of other governing
bodies of government entities whose functions affect the career
development, employment status, rights, privileges, and welfare of
government officials and employees, such as the Government
Service Insurance System, Foreign Service Board, Foreign Trade
Service Board, National Board for Teachers, and such other similar
boards as may be created by law.

Section 15. Duties and Responsibilities of the Members of the

Commission. - Jointly with the Chairman, the two (2) Commissioners
shall be responsible for the effective exercise of the rule-making and
adjudicative functions of the Commission. They shall likewise perform
such functions as may be delegated by the Commission. In case of
the absence of the Chairman owing to illness or other cause, the
senior member shall perform the functions of the Chairman.
Section 16. Offices in the Commission. - The Commission shall have
the following offices:

(1) The Office of the Executive Director headed by an Executive

Director, with a Deputy Executive Director shall implement policies,
standards, rules and regulations promulgated by the Commission;
coordinate the programs of the offices of the Commission and render
periodic reports on their operations, and perform such other functions
as may be assigned by the Commission.

(2) The Merit System Protection Board composed of a Chairman and

two (2) members shall have the following functions:

(a) Hear and decide on appeal administrative cases involving officials

and employees of the Civil Service. Its decision shall be final except
those involving dismissal or separation from the service which may
be appealed to the Commission;

(b) Hear and decide cases brought before it on appeal by officials and
employees who feel aggrieved by the determination of appointing
authorities involving personnel actions and violations of the merit
system. The decision of the Board shall be final except those
involving division chiefs or officials of higher ranks which may be
appealed to the Commission;

(c) Directly take cognizance of complaints affecting functions of the

Commission, those which are unacted upon by the agencies, and
such other complaints which require direct action of the Board in the
interest of justice;

(d) Administer oaths, issue subpoena and subpoena duces tecum,

take testimony in any investigation or inquiry, punish for contempt in
accordance with the same procedures and penalties prescribed in the
Rules of Court; and

(e) Promulgate rules and regulations to carry out the functions of the
Board subject to the approval of the Commission.

(3) The Office of Legal Affairs shall provide the Chairman with legal
advice and assistance; render counselling services; undertake legal
studies and researches; prepare opinions and rulings in the
interpretation and application of the Civil Service law, rules and
regulations; prosecute violations of such law, rules and regulations;
and represent the Commission before any Court or tribunal.

(4) The Office of Planning and Management shall formulate

development plans, programs and projects; undertake research and
studies on the different aspects of public personnel management;
administer management improvement programs; and provide fiscal
and budgetary services.

(5) The Central Administrative Office shall provide the Commission

with personnel, financial, logistics and other basic support services.

(6) The Office of Central Personnel Records shall formulate and

implement policies, standards, rules and regulations pertaining to
personnel records maintenance, security, control and disposal;
provide storage and extension services; and provide and maintain
library services.

(7) The Office of Position Classification and Compensation shall

formulate and implement policies, standards, rules and regulations
relative to the administration of position classification and
compensation.

(8) The Office of Recruitment, Examination and Placement shall

provide leadership and assistance in developing and implementing
the overall Commission programs relating to recruitment, examination
and placement, and formulate policies, standards, rules and
regulations for the proper implementation of the Commission's
examination and placement programs.

(9) The Office of Career Systems and Standards shall provide

leadership and assistance in the formulation and evaluation of
personnel systems and standards relative to performance appraisal,
merit promotion, and employee incentive benefits and awards.

(10) The Office of Human Resource Development shall provide

leadership and assistance in the development and retention of
qualified and efficient work force in the Civil Service; formulate
standards for training and staff development; administer service-wide
scholarship programs; develop training literature and materials;
coordinate and integrate all training activities and evaluate training
programs.

(11) The Office of Personnel Inspection and Audit shall develop

policies, standards, rules and regulations for the effective conduct or
inspection and audit of personnel and personnel management
programs and the exercise of delegated authority; provide technical
and advisory services to civil Service Regional Offices and
government agencies in the implementation of their personnel
programs and evaluation systems.

(12) The Office of Personnel Relations shall provide leadership and

assistance in the development and implementation of policies,
standards, rules and regulations in the accreditation of employee
associations or organizations and in the adjustment and settlement of
employee grievances and management of employee disputes.

(13) The Office of Corporate Affairs shall formulate and implement

policies, standards, rules and regulations governing corporate
officials and employees in the areas of recruitment, examination,
placement, career development, merit and awards systems, position
classification and compensation, performing appraisal, employee
welfare and benefits, discipline and other aspects of personnel
management on the basis of comparable industry practices.

(14) The Office of Retirement Administration shall be responsible for

the enforcement of the constitutional and statutory provisions, relative
to retirement and the regulation for the effective implementation of the
retirement of government officials and employees.

(15) The Regional and Field Offices. - The Commission shall have
not less than thirteen (13) Regional offices each to be headed by a
Director, and such field offices as may be needed, each to be headed
by an official with at least the rank of an Assistant Director. Each
Regional Office shall have the following functions:

(a) Enforce Civil Service law and rules, policies, standards on

personnel management within their respective jurisdiction;
(b) Provide technical advice and assistance to government offices
and agencies regarding personnel administration; and

(c) Perform such other functions as may be delegated by the

Commission.

Section 17. Organizational Structure. - Each office of the Commission

shall be headed by a Director with at least one (1) Assistant Director,
and may have such divisions as are necessary to carry out their
respective functions. As an independent constitutional body, the
Commission may effect changes in the organization as the need
arises.

CHAPTER 4
INTERDEPARTMENT RELATIONS

Section 18. Civil Service Assistance to Department and Agencies. -

Each Secretary or head of office, agency, government-owned or
controlled corporation with original charter and local government shall
be responsible for personnel administration in his office which shall
be in accordance with the provision relating to civil service embodied
in the Constitution, this Title and the rules, principles, standards,
guidelines and regulations established by the Commission. The Civil
Service Commission shall, whenever it deems it in the interest of the
public service, organize in each department, office, agency,
government-owned or controlled corporation, and provincial and city
government a Civil Service Staff which shall be headed by an officer
of the Commission. The necessary staff personnel and office facilities
and equipment shall be provided by the department, government-
owned or controlled corporation or local government where the staff
is established but the Commission may augment these with its own.
The Staff shall serve as the principal liaison between the Civil Service
and Department concerned and shall perform the following specific
functions and those functions which may hereafter be assigned to it
by the Commission.

(1) Provide technical assistance in all aspects of personnel

management;
(2) Monitor and audit periodically the personnel practices and
performance of the Department or agency concerned as well as
those of public officers and employees thereat;

(3) Determine agency compliance with Civil Service Law and rules;
and

(4) In the performance of these functions, the staff shall welcome and
receive from the public any suggestions, observations and complaints
pertaining to the conduct of public officers and employees.

In the performance of their functions, the units so organized shall

avail of the technical assistance and guidelines of the Civil Service
Commission.

Section 19. Council of Personnel Officers. - There shall be a Council

of Personnel Officers to be composed of Chief personnel officers of
the different executive departments and of agencies with the category
of department that the Chairman of the Commission shall select for
membership. Except for its Executive Officer who shall be designated
by the Chairman from among the appropriate officials in the Civil
Service Commission, the Council is authorized to elect such other
officers from among its members and to fix its own rules or
procedures concerning attendance at meetings, approval of policy
declaration, and other business matters. Provisions for necessary
facilities and clerical assistance for the Council shall be made in the
annual budget of the Commission.

The Council shall have the following functions:

(1) Offer advice, upon request of the Secretary of a Department or

the Commission, in developing constructive policies, standards,
procedures, and programs as well as on matters relating to the
improvement of personnel methods and to the solution of personnel
problems confronting the various departments and agencies of the
government;

(2) Promote among the departments and agencies, through study

and discussion, uniform and consistent interpretation and application
of personnel policies; and
(3) Serve as a clearing house of information and stimulate the use of
methods of personnel management that will contribute most to good
government.

Section 20. Inspection and Audit. - The Commission, through its

designated representatives, shall conduct a periodic inspection and
audit of the personnel management program of each department,
agency, province or city, in order to: (a) determine compliance with
the Civil Service law, rules and standards; (b) review discharge of
delegated authority; (c) make an adequate evaluation of the progress
made and problems encountered in the conduct of the merit system
in the national and local governments; (d) give advice and provide
assistance in developing constructive policies, standards and
procedures, and (e) stimulate improvement in all areas of personnel
management.

Periodic inspection and audit will include an appraisal of personnel

management operations and activities relative to: (a) formulation and
issuance of personnel policy; (b) recruitment and selection of
employees; (c) personnel action and employment status; (d) career
and employee development; (e) performance evaluation system; (f)
employee suggestions and incentive award; (g) employee relations
and services; (h) discipline; (i) personnel records and reporting; and
(j) programs evaluation.

CHAPTER 5
PERSONNEL POLICIES AND STANDARDS

Section 21. Recruitment and Selection of Employees. -

(1) Opportunity for government employment shall be open to all

qualified citizens and positive efforts shall be exerted to attract the
best qualified to enter the service. Employees shall be selected on
the basis of fitness to perform the duties and assume the
responsibilities of the positions.

(2) When a vacancy occurs in a position in the first level of the Career
Service as defined in Section 6, the employees in the department
who occupy the next lower positions in the occupational group under
which the vacant position is classified, and in other functionally
related occupational groups and who are competent, qualified and
with the appropriate civil service eligibility shall be considered for
promotion.

(3) When a vacancy occurs in a position in the second level of the

Career Service as defined in Section 8, the employees in the
government service who occupy the next lower positions in the
occupational group under which the vacant position is classified and
in other functionally related occupational groups and who are
competent, qualified and with the appropriate civil service eligibility
shall be considered for promotion.

(4) For purposes of this Section, each department or agency shall

evolve its own screening process, which may include tests of fitness,
in accordance with standards and guidelines set by the Commission.
Promotion boards shall be formed to formulate criteria for evaluation,
conduct tests or interviews, and make systematic assessment of
training experience.

(5) If the vacancy is not filled by promotion as provided herein the

same shall be filled by transfer of present employees in the
government service, by reinstatement, by re-employment of persons
separated through reduction in force, or by appointment of persons
with the civil service eligibility appropriate to the positions.

(6) A qualified next-in-rank employee shall have the right to appeal

initially to the Secretaries or heads of agencies or instrumentalities
including government-owned or controlled corporations with original
charters, then to the Merit System Protection Board, and finally to the
Civil Service Commission an appointment made in favor of another
employee if the appellant is not satisfied with the written special
reason or reason given by the appointing authority for such
appointment; Provided, however, that the decision of the Civil Service
Commission may be reviewed on certiorari only by the Supreme
Court within thirty (30) days from receipt of the decision of the
aggrieved party. For purposes of this Section, "qualified next-in-rank"
refers to an employee appointed on a permanent basis to a position
previously determined to be next-in-rank and who meets the
requirements for appointment thereto as previously determined by the
appointing authority and approved by the Commission.

(7) Qualification in an appropriate examination shall be required for

appointment to positions in the first and second levels in the career
service in accordance with the Civil Service rules, except as
otherwise provided in this Title: Provided, That whenever there is a
civil service eligible actually available for appointment, no person who
is not such an eligible shall be appointed even in a temporary
capacity to any vacant position in the career service in the
government or in any government-owned or controlled corporation
with original charter, except when the immediate filling of the vacancy
is urgently required in the public interest, or when the vacancy is not
permanent, in which cases temporary appointments of non-eligibles
may be made in the absence of eligibles actually and immediately
available.

(8) The appropriate examinations herein referred to shall be those

given by the Commission and the different agencies: Provided,
however, That nothing herein shall affect those eligibilities acquired
prior to the effectivity of this Civil Service Law: Provided, further, That
a person with a civil service eligibility acquired by successfully
passing an examination shall be qualified for a position requiring a
lower eligibility if he possesses the other requirements for
appointments to such position.

Section 22. Qualification Standards. -

(1) A qualification standard expresses the minimum requirements for

a class of positions in terms of education, training and experience,
civil service eligibility, physical fitness, and other qualities required for
successful performance. The degree of qualifications of an officer or
employee shall be determined by the appointing authority on the
basis of the qualification standard for the particular position.

Qualification standards shall be used as basis for civil service

examinations for positions in the career service, as guides in
appointment and other personnel actions, in the adjudication of
protested appointments, in determining training needs, and as aid in
the inspection and audit of the agencies personnel work programs.
It shall be administered in such manner as to continually provide
incentives to officers and employees towards professional growth and
foster the career system in the government service.

(2) The establishment, administration and maintenance of

qualification standards shall be the responsibility of the department or
agency, with the assistance and approval of the Civil Service
Commission and in consultation with the Wage and Position
Classification Office.

Section 23. Release of Examination Results. - The results of any

particular civil service examination held in a number of places on the
same date shall be released simultaneously.

Section 24. Register of Eligibles. - The names of the competitors who

pass an examination shall be entered in a register of eligibles
arranged in the order of their general ratings and containing such
information as the Commission may deem necessary.

Section 25. Cultural Communities. - In line with the national policy to

facilitate the integration of the members of cultural communities and
accelerate the development of the areas occupied by them, the
Commission shall give special civil service examinations to qualify
them for appointment in the civil service.

Section 26. Personnel Actions. - All appointments in the career

service shall be made only according to merit and fitness, to be
determined as far as practicable by competitive examinations. A non-
eligible shall not be appointed to any position in the civil service
whenever there is a civil service eligible actually available for and
ready to accept appointment.

As used in this Title, any action denoting the movement or progress

of personnel in the civil service shall be known as personnel action.
Such action shall include appointment through certification,
promotion, transfer, reinstatement, re-employment, detail,
reassignment, demotion, and separation. All personnel actions shall
be in accordance with such rules, standards, and regulations as may
be promulgated by the Commission.
(1) Appointment through certification. An appointment through
certification to a position in the civil service, except as herein
otherwise provided, shall be issued to a person who has been
selected from a list of qualified persons certified by the Commission
from an appropriate register of eligibles, and who meets all the other
requirements of the position.

All such persons must serve a probationary period of six months

following their original appointment and shall undergo a thorough
character investigation in order to acquire permanent civil service
status. A probationer may be dropped from the service for
unsatisfactory conduct or want of capacity any time before the
expiration of the probationary period: Provided, That such action is
appealable to the Commission.

(2) Promotion. A promotion is a movement from one position to

another with an increase in duties and responsibilities as authorized
by law and usually accompanied by an increase in pay. The
movement may be from one department or agency to another, or
from one organizational unit to another in the same department or
agency.

(3) Transfer. A transfer is a movement from one position to another

which is of equivalent rank, level, or salary without break in service
involving the issuance of an appointment.

It shall not be considered disciplinary when made in the interest of

public service, in which case, the employee concerned shall be
informed of the reasons therefor. If the employee believes that there
is no justification for the transfer, he may appeal his case to the
Commission.

The transfer may be from one department or agency to another or

from one organizational unit to another in the same department or
agency: Provided, however, That any movement from the non-career
service to the career service shall not be considered a transfer.

(4) Reinstatement. Any person who has been permanently appointed

to a position in the career service and who has, through no
delinquence or misconduct, been separated therefrom, may be
reinstated to a position in the same level for which he is qualified.

(5) Reemployment. Names of persons who have been appointed

permanently to positions in the career service and who have been
separated as a result of reduction in force or reorganization, shall be
entered in a list from which selection for reemployment shall be
made.

(6) Detail. A detail is the movement of an employee from one agency

to another without the issuance of an appointment and shall be
allowed, only for a limited period in the case of employees occupying
professional, technical and scientific positions. If the employee
believes that there is no justification for the detail, he may appeal his
case to the Commission. Pending appeal, the decision to detail the
employee shall be executory unless otherwise ordered by the
Commission.

(7) Reassignment. An employee may be reassigned from one

organizational unit to another in the same agency: Provided, That
such reassignment shall not involve a reduction in rank, status or
salary.

Section 27. Employment Status. - Appointment in the career service

shall be permanent or temporary.

(1) Permanent status. A permanent appointment shall be issued to a

person who meets all the requirements for the positions to which he
is being appointed, including the appropriate eligibility prescribed, in
accordance with the provisions of law, rules and standards
promulgated in pursuance thereof.

(2) Temporary appointment. In the absence of appropriate eligibles

and it becomes necessary in the public interest to fill a vacancy, a
temporary appointment shall be issued to a person who meets all the
requirements for the position to which he is being appointed except
the appropriate civil service eligibility: Provided, That such temporary
appointment shall not exceed twelve months, but the appointee may
be replaced sooner if a qualified civil service eligible becomes
available.
Section 28. Salary increase or Adjustment. - Adjustments in salaries
as a result of increase in pay levels or upgrading of positions which
do not involve a change in qualification requirements shall not require
new appointments except that copies of the salary adjustment notices
shall be submitted to the Commission for record purposes.

Section 29. Reduction in Force. - Whenever it becomes necessary

because of lack of work or funds or due to a change in the scope or
nature of an agency's program, or as a result of reorganization, to
reduce the staff of any department or agency, those in the same
group or class of positions in one or more agencies within the
particular department or agency wherein the reduction is to be
effected, shall be reasonably compared in terms of relative fitness,
efficiency and length of service, and those found to be least qualified
for the remaining positions shall be laid off.

Section 30. Career and Personnel Development. - The development

and retention of a competent and efficient work force in the public
service is a primary concern of government. It shall be the policy of
the government that a continuing program of career and personnel
development be established for all government employees at all
levels. An integrated national plan for career and personnel
development shall serve as the basis for all career and personnel
development activities in the government.

Section 31. Career and Personnel Development Plans. - Each

department or agency shall prepare a career and personnel
development plan which shall be integrated into a national plan by the
Commission. Such career and personnel development plans which
shall include provisions on merit promotions, performance evaluation,
in-service training, including overseas and local scholarships and
training grants, job rotation, suggestions and incentive award
systems, and such other provisions for employees' health, welfare,
counseling, recreation and similar services.

Section 32. Merit Promotion Plans. - Each department or agency shall

establish promotion plans which shall be administered in accordance
with the provisions of the Civil Service law and the rules, regulations
and standards to be promulgated by the Commission. Such plans
shall include provisions for a definite screening process, which may
include tests of fitness, in accordance with standards and guidelines
set by the Commission. Promotion Boards may be organized subject
to criteria drawn by the Commission.

Section 33. Performance Evaluation System. - There shall be

established a performance evaluation system, which shall be
administered in accordance with rules, regulations and standards,
promulgated by the Commission for all officers and employees in the
career service. Such performance evaluation system shall be
administered in such manner as to continually foster the improvement
of individual employee efficiency and organizational effectiveness.

Each department or agency may, after consultation with the

Commission, establish and use one or more performance evaluation
plans appropriate to the various groups of positions in the department
or agency concerned. No performance evaluation shall be given, or
used as a basis for personnel action, except under an approved
performance evaluation plan: Provided, That each employee shall be
informed periodically by his supervisor of his performance evaluation.

Section 34. Responsibility for Training. - The Commission shall be

responsible for the coordination and integration of a continuing
program of personnel development for all government personnel in
the first and second levels.

Central staff agencies and specialized institutes shall conduct

continuing centralized training for staff specialists from the different
agencies. However, in those cases where there is sufficient number
of participants to warrant training at department or agency or local
government levels, such central staff agencies and specialized
institutes shall render the necessary assistance, and consultative
services.

To avoid duplication of effort and overlapping of training functions, the

following functional responsibilities are assigned:

(1) Public and private colleges and universities and similar institutions
shall be encouraged to organize and carry out continuing programs of
executive development.
(2) The Commission, the Commission on Audit, the Department of
Budget and Management, the General Services Administration, and
other central staff agencies shall conduct centralized training and
assist in the training program of the Departments or agencies along
their respective functional areas of specialization.

(3) In coordination with the Commission, the Department of Local

Government and Community Development shall undertake local
government training programs.

(4) In coordination with the Commission, each department or agency,

province or city shall establish, maintain and promote a systematic
plan of action for personnel training at all levels in accordance with
standards laid down by the Commission. It shall maintain appropriate
training staffs and make full use of available training facilities.

Whenever it deems it necessary, the Commission shall take the

initiative in undertaking programs for personnel development.

Section 35. Employee Suggestions and incentive Award System. -

There shall be established a government-wide employee suggestions
and incentive awards system which shall be administered under such
rules, regulations, and standards as may be promulgated by the
Commission.

In accordance with rules, regulations, and standards promulgated by

the Commission, the President or the head of each department or
agency is authorized to incur whatever necessary expenses involved
in the honorary recognition of subordinate officers and employees of
the government who by their suggestions, inventions, superior
accomplishment, and other personal efforts contribute to the
efficiency, economy, or other improvement of government operations,
or who perform such other extraordinary acts or services in the public
interest in connection with, or in relation to, their official employment.

Section 36. Personnel Relations. -

(1) It shall be the concern of the Commission to provide leadership
and assistance in developing employee relations programs in the
department or agencies.

(2) Every Secretary or head of agency shall take all proper steps
toward the creation of an atmosphere conducive to good supervisor-
employee relations and the improvement of employee morale.

Section 37. Complaints and Grievances. - Employees shall have the

right to present their complaints or grievances to management and
have them adjudicated as expeditiously as possible in the best
interest of the agency, the government as a whole, and the employee
concerned. Such complaint or grievances shall be resolved at the
lowest possible level in the department or agency, as the case may
be, and the employee shall have the right to appeal such decision to
higher authorities.

Each department or agency shall promulgate rules and regulations

governing expeditious, fair and equitable adjustment of employees'
complaints or grievances in accordance with the policies enunciated
by the Commission.

In case any dispute remains unresolved after exhausting all the

available remedies under existing laws and procedures, the parties
may jointly refer the dispute to the Public Sector Labor Management
Council constituted under section 46, for appropriate action.

CHAPTER 6
RIGHT TO SELF-ORGANIZATION

Section 38. Coverage. -

(1) All government employees, including those in government-owned

or controlled corporations with original charters, can form, join or
assist employees' organizations of their own choosing for the
furtherance and protection of their interests. They can also form, in
conjunction with appropriate government authorities, labor-
management committees, work councils and other forms of workers'
participation schemes to achieve the same objectives.
(2) The provisions of this Chapter shall not apply to the members of
the Armed Forces of the Philippines, including police officers,
policemen, firemen and jail guards.

Section 39. Ineligibility of High-Level Employees to Join Rank-and-

File Employees' Organization. - High-level employees whose
functions are normally considered as policy-making or managerial or
whose duties are of a highly confidential nature shall not be eligible to
join the organization of rank-and-file government employees.

Section 40. Protection of the Right to Organize. -

(1) Government employees shall not be discriminated against in

respect of their employment by reason of their membership in
employees' organizations or participation in the normal activities of
their organizations. Their employment shall not be subject to the
condition that they shall not join or shall relinquish their membership
in the employees' organizations.

(2) Government authorities shall not interfere in the establishment,

functioning or administration of government employees' organizations
through acts designed to place such organizations under the control
of government authority. lawphi1.net

Section 41. Registration of Employees' Organization. - Government

employees' organizations shall register with the Civil Service
Commission and the Department of Labor and Employment. The
application shall be filed with the Bureau of Labor Relations of the
Department which shall process the same in accordance with the
provisions of the Labor Code of the Philippines. Applications may
also be filed with the Regional Offices of the Department of Labor and
Employment which shall immediately transmit the said applications to
the Bureau of Labor Relations within three (3) days from receipt
thereof.

Section 42. Certificate of Registration. - Upon arrival of the

application, a registration certificate shall be issued to the
organization recognizing it as a legitimate employees' organization
with the right to represent its members and undertake activities to
further and defend its interests. The corresponding certificates of
registration shall be jointly approved by the Chairman of the Civil
Service Commission and the Secretary of Labor and Employment.

Section 43. Appropriate Organizational Unit. - The appropriate

organizational unit shall be the employer's unit consisting of rank-
and-file employees unless circumstances otherwise require.

Section 44. Sole and Exclusive Employees' Representatives. -

(1) The duly registered employees' organization having the support of

the majority of the employees in the appropriate organizational unit
shall be designated as the sole and exclusive representative of the
employees.

(2) A duly registered employees' organization shall be accorded

voluntary recognition upon a showing that no other employees'
organization is registered or is seeking registration, based on the
records of the Bureau of Labor Relations, and that the said
organization has the majority support of the rank-and-file employees
in the organizational unit.

(3) Where there are two or more duly registered employees'

organizations in the appropriate organizational unit, the Bureau of
Labor Relations shall, upon petition, order the conduct of a
certification election and shall certify the winner as the exclusive
representative of the rank-and-file employees in said organizational
unit.

Section 45. The Public Sector Labor-Management Council. - A Public

Sector Labor-Management Council is hereby constituted to be
composed of the following: The Chairman of the Civil Service
Commission, as Chairman; the Secretary of Labor and Employment,
as Vice-Chairman; and the Secretary of Finance, the Secretary of
Justice and the Secretary of Budget and Management, as members.

The Council shall implement and administer the provisions of this

Chapter. For this purpose, the Council shall promulgate the
necessary rules and regulations to implement this Chapter.

Section 46. Discipline: General Provisions. -

(a) No officer or employee in the Civil Service shall be suspended or
dismissed except for cause as provided by law and after due process.

(b) The following shall be grounds for disciplinary action:

(1) Dishonesty;

(2) Oppression;

(3) Neglect of duty;

(4) Misconduct;

(5) Disgraceful and immoral conduct;

(6) Being notoriously undesirable;

(7) Discourtesy in the course of official duties;

(8) Inefficiency and incompetence in the performance of official

duties;

(9) Receiving for personal use of a fee, gift or other valuable thing in
the course of official duties or in connection therewith when such fee,
gift, or other valuable thing is given by any person in the hope or
expectation of receiving favor or better treatment than that accorded
other persons, or committing acts punishable under the anti-graft
laws;

(10) Conviction of a crime involving moral turpitude;

(11) Improper or unauthorized solicitation of contributions from

subordinate employees and by teachers or school officials from
school children;

(12) Violation of existing Civil Service Law and rules or reasonable

office regulations;

(13) Falsification of official document;

(14) Frequent unauthorized absences or tardiness in reporting for
duty, loafing or frequently unauthorized absence from duty during
regular office hours;

(15) Habitual drunkenness;

(16) Gambling prohibited by law;

(17) Refusal to perform official duty or render overtime service;

(18) Disgraceful, immoral or dishonest conduct prior to entering the

service;

(19) Physical or mental incapacity or disability due to immoral or

vicious habits;

(20) Borrowing money by superior officers from subordinates or

lending by subordinates to superior officers;

(21) Lending money at usurious rates or interest;

(22) Willful failure to pay just debts or willful failure to pay taxes due
to the government;

(23) Contracting loans of money or other property from persons with

whom the office of the employee concerned has business relations;

(24) Pursuit of private business, vocation or profession without the

permission required by Civil Service rules and regulations;

(25) Insubordination;

(26) Engaging directly or indirectly in partisan political activities by

one holding a non-political office;

(27) Conduct prejudicial to the best interest of the service;

(28) Lobbying for personal interest or gain in legislative halls and

offices without authority;
(29) Promoting the sale of tickets in behalf of private enterprises that
are not intended for charitable or public welfare purposes and even in
the latter cases if there is no prior authority;

(30) Nepotism as defined in Section 60 of this Title.

(c) Except when initiated by the disciplining authority, no complaint

against a civil service official or employee shall be given due course
unless the same is in writing and subscribed and sworn to by the
complainant.

(d) In meeting out punishment, the same penalties shall be imposed

for similar offenses and only one penalty shall be imposed in each
case. The disciplining authority may impose the penalty of removal
from the service, demotion in rank, suspension for not more than one
year without pay, fine in an amount not exceeding six months' salary,
or reprimand.

Section 47. Disciplinary Jurisdiction. -

(1) The Commission shall decide upon appeal all administrative

disciplinary cases involving the imposition of a penalty of suspension
for more than thirty days, or fine in an amount exceeding thirty days'
salary, demotion in rank or salary or transfer, removal or dismissal
from office. A complaint may be filed directly with the Commission by
a private citizen against a government official or employee in which
case it may hear and decide the case or it may deputize any
department or agency or official or group of officials to conduct the
investigation. The results of the investigation shall be submitted to the
Commission with recommendation as to the penalty to be imposed or
other action to be taken.

(2) The Secretaries and heads of agencies and instrumentalities,

provinces, cities and municipalities shall have jurisdiction to
investigate and decide matters involving disciplinary action against
officers and employees under their jurisdiction. Their decisions shall
be final in case the penalty imposed is suspension for not more than
thirty days or fine in an amount not exceeding thirty days', salary. In
case the decision rendered by a bureau or office head is appealable
to the Commission, the same may be initially appealed to the
department and finally to the Commission and pending appeal, the
same shall be executory except when the penalty is removal, in which
case the same shall be executory only after confirmation by the
Secretary concerned.

(3) An investigation may be entrusted to regional director or similar

officials who shall make the necessary report and recommendation to
the chief of bureau or office or department within the period specified
in Paragraph (4) of the following Section.

(4) An appeal shall not stop the decision from being executory, and in
case the penalty is suspension or removal, the respondent shall be
considered as having been under preventive suspension during the
pendency of the appeal in the event he wins an appeal.

Section 48. Procedure in Administrative Cases Against Non-

Presidential Appointees. -

(1) Administrative proceedings may be commenced against a

subordinate officer or employee by the Secretary or head of office of
equivalent rank, or head of local government, or chiefs of agencies,
or regional directors, or upon sworn, written complaint of any other
person.

(2) In the case of a complaint filed by any other persons, the

complainant shall submit sworn statements covering his testimony
and those of his witnesses together with his documentary evidence. If
on the basis of such papers a prima facie case is found not to exist,
the disciplining authority shall dismiss the case. If a prima facie case
exists, he shall notify the respondent in writing, of the charges against
the latter, to which shall be attached copies of the complaint, sworn
statements and other documents submitted, and the respondent shall
be allowed not less than seventy-two hours after receipt of the
complaint to answer the charges in writing under oath, together with
supporting sworn statements and documents, in which he shall
indicate whether or not he elects a formal investigation if his answer
is not considered satisfactory. If the answer is found satisfactory, the
disciplining authority shall dismiss the case.
(3) Although a respondent does not request a formal investigation,
one shall nevertheless be conducted when from the allegations of the
complaint and the answer of the respondent, including the supporting
documents, the merits of the case cannot be decided judiciously
without conducting such an investigation.

(4) The investigation shall be held not earlier than five days nor later
than ten days from the date of receipt of respondent's answer by the
disciplining authority, and shall be finished within thirty days from the
filing of the charges, unless the period is extended by the
Commission in meritorious cases. The decision shall be rendered by
the disciplining authority within thirty days from the termination of the
investigation or submission of the report of the investigator, which
report shall be submitted within fifteen days from the conclusion of
the investigation.

(5) The direct evidence for the complainant and the respondent shall
consist of the sworn statement and documents submitted in support
of the complaint or answer, as the case may be, without prejudice to
the presentation of additional evidence deemed necessary but was
unavailable at the time of the filing of the complaint or answer, upon
which the cross-examination, by respondent and the complainant,
respectively, shall be based. Following cross-examination, there may
be redirect and recross-examination.

(6) Either party may avail himself of the services of counsel and may
require the attendance of witnesses and the production of
documentary evidence in his favor through the compulsory process of
subpoena or subpoena duces tecum.

(7) The investigation shall be conducted only for the purpose of

ascertaining the truth and without necessarily adhering to technical
rules applicable in judicial proceedings. It shall be conducted by the
disciplining authority concerned or his authorized representative.

The phrase "any other party" shall be understood to be a complainant

other than those referred to in subsection (a) hereof.

Section 49. Appeals. - ]

(1) Appeals, where allowable, shall be made by the party adversely
affected by the decision within fifteen days from receipt of the
decision unless a petition for reconsideration is seasonably filed,
which petition shall be decided within fifteen days. Notice of the
appeal shall be filed with the disciplining office, which shall forward
the records of the case, together with the notice of appeal, to the
appellate authority within fifteen days from filing of the notice of
appeal, with its comment, if any. The notice of appeal shall
specifically state the date of the decision appealed from and the date
of receipt thereof. It shall also specifically set forth clearly the grounds
relied upon for excepting from the decision.

(2) A petition for reconsideration shall be based only on any of the

following grounds: (a) new evidence has been discovered which
materially affects the decision rendered; (b) the decision is not
supported by the evidence on record; or (c) error of law or
irregularities have been committed which are prejudicial to the
interest of the respondent: Provided, That only one petition for
reconsideration shall be entertained.

Section 50. Summary Proceedings. - No formal investigation is

necessary and the respondent may be immediately removed or
dismissed if any of the following circumstances is present:

(1) When the charge is serious and the evidence of guilt is strong;

(2) When the respondent is a recidivist or has been repeatedly

charged and there is reasonable ground to believe that he is guilty of
the present charge; and

(3) When the respondent is notoriously undesirable.

Resort to summary proceedings by the disciplining authority shall be

done with utmost objectivity and impartiality to the end that no
injustice is committed: Provided, That removal or dismissal except
those by the President, himself or upon his order, may be appealed to
the Commission.

Section 51. Preventive Suspension. - The proper disciplining authority

may preventively suspend any subordinate officer or employee under
his authority pending an investigation, if the charge against such
officer or employee involves dishonesty, oppression or grave
misconduct, or neglect in the performance of duty, or if there are
reasons to believe that the respondent is guilty of charges which
would warrant his removal from the service.

Section 52. Lifting of Preventive Suspension Pending Administrative

Investigation. - When the administrative case against the officer or
employee under preventive suspension is not finally decided by the
disciplining authority within the period of ninety (90) days after the
date of suspension of the respondent who is not a presidential
appointee, the respondent shall be automatically reinstated in the
service: Provided, That when the delay in the disposition of the case
is due to the fault, negligence or petition of the respondent, the period
of delay shall not be counted in computing the period of suspension
herein provided.

Section 53. Removal of Administrative Penalties or Disabilities. - In

meritorious cases and upon recommendation of the Commission, the
President may commute or remove administrative penalties or
disabilities imposed upon officers or employees in disciplinary cases,
subject to such terms and conditions as he may impose in the interest
of the service.

CHAPTER 7
PROHIBITIONS

Section 54. Limitation on Appointment. -

(1) No elective official shall be eligible for appointment or designation

in any capacity to any public office or position during his tenure.

(2) No candidate who has lost in any election shall, within one year
after election, be appointed to any office in the Government or any
government-owned or controlled corporations or in any of its
subsidiaries.

(3) Unless otherwise allowed by law or by the primary functions of his

position, no appointive official shall hold any other office or
employment in the Government or any subdivision, agency or
instrumentality thereof, including government-owned or controlled
corporations or their subsidiaries.

Section 55. Political Activity. - No officer or employee in the Civil

Service including members of the Armed Forces, shall engage
directly or indirectly in any partisan political activity or take part in any
election except to vote nor shall he use his official authority or
influence to coerce the political activity of any other person or body.
Nothing herein provided shall be understood to prevent any officer or
employee from expressing his views on current political problems or
issues, or from mentioning the names of candidates for public office
whom he supports: Provided, That public officers and employees
holding political offices may take part in political and electoral
activities but it shall be unlawful for them to solicit contributions from
their subordinates or subject them to any of the acts involving
subordinates prohibited in the Election Code.

Section 56. Additional or Double Compensation. - No elective or

appointive public officer or employee shall receive additional or
double compensation unless specifically authorized by law nor accept
without the consent of the President, any present, emolument, office,
or title of any kind from any foreign state.

Pensions and gratuities shall not be considered as additional, double,

or indirect compensation.

Section 57. Limitations on Employment of Laborers. - Laborers,

whether skilled, semi-skilled or unskilled, shall not be assigned to
perform clerical duties.

Section 58. Prohibition on Detail or Reassignment. - No detail or

reassignment whatever shall be made within three (3) months before
any election.

Section 59. Nepotism. -

(1) All appointments in the national, provincial, city and municipal

governments or in any branch or instrumentality thereof, including
government-owned or controlled corporations, made in favor of a
relative of the appointing or recommending authority, or of the chief of
the bureau or office, or of the persons exercising immediate
supervision over him, are hereby prohibited.

As used in this Section, the word "relative" and members of the family
referred to are those related within the third degree either or
consanguinity or of affinity.

(2) The following are exempted from the operation of the rules on
nepotism: (a) persons employed in a confidential capacity, (b)
teachers, (c) physicians, and (d) members of the Armed Forces of the
Philippines: Provided, however, That in each particular instance full
report of such appointment shall be made to the Commission.

The restriction mentioned in subsection (1) shall not be applicable to

the case of a member of any family who, after his or her appointment
to any position in an office or bureau, contracts marriage with
someone in the same office or bureau, in which event the
employment or retention therein of both husband and wife may be
allowed.

(3) In order to give immediate effect to these provisions, cases of

previous appointments which are in contravention hereof shall be
corrected by transfer, and pending such transfer, no promotion or
salary increase shall be allowed in favor of the relative or relatives
who are appointed in violation of these provisions.

CHAPTER 8
LEAVE OF ABSENCE

Section 60. Leave of Absence. - Officers and employees in the Civil

Service shall be entitled to leave of absence, with or without pay, as
may be provided by law and the rules and regulations of the Civil
Service Commission in the interest of the service.

CHAPTER 9
MISCELLANEOUS PROVISIONS

Section 61. Examining Committee, Special Examiners and Special

Investigators. - Subject to approval by the proper head of a
department or agency, the Commission may select suitable persons
in the government service to act as members of examining
committees, special examiners or special investigators. Such persons
shall be designated examiners or investigators of the Commission
and shall perform such duties as the Commission may require, and in
the performance of such duties they shall be under its exclusive
control. Examining committees, special examiners or special
investigators so designated may be given allowances or per diems for
their services, to be paid out of the funds of, and at a rate to be
determined by, the Commission.

Section 62. Fees. - The Commission shall collect and charge fees for
civil service examinations, certifications of civil service ratings,
service records, and other civil service matters, training courses,
seminars, workshops in personnel management and other civil
service matters. For this purpose, the Commission shall prescribe
standard and reasonable rates for such examinations, certifications,
training courses, seminars, and workshops: Provided, That no
examination fees shall be collected in examinations given for the
selection of scholars.

Section 63. Income. - The income of the Commission from fees, costs
for services it may assess and levy, and such other proceeds
generated in the performance of its functions shall be directly utilized
by the Commission for its expenses.

Section 64. Authority of Officers to Administer Oaths, Take

Testimony, Prosecute and Defend Cases in Court. - Members of the
Commission, chiefs of offices, and other officers and employees of
the Commission designated in writing by the Chairman may
administer such oath as may be necessary in the transactions of
official business and administer oaths and take testimony in
connection with any authorized investigation. Attorneys of the
Commission may prosecute and defend cases in connection with the
functions of the Commission before any court or tribunal.

Section 65. Liability of Appointing Authority. - No person employed in

the Civil Service in violation of the Civil Service Law and rules shall
be entitled to receive pay from the government; but the appointing
authority responsible for such unlawful employment shall be
personally liable for the pay that would have accrued had the
employment been lawful, and the disbursing officials shall make
payment to the employee of such amount from the salary of the
officers so liable.

Section 66. Liability of Disbursing Officers. - Except as may otherwise

be provided by law, it shall be unlawful for a treasurer or other fiscal
officer to draw or retain from salary due an officer or employee any
amount for contribution or payment of obligations other than those
due the government or its instrumentalities.

Section 67. Penal Provision. - Whoever makes any appointment or

employs any person in violation of any provision of this Title or the
rules made thereunder or whoever commits fraud, deceit or
intentional misrepresentation of material facts concerning other civil
service matters, or whoever violates, refuses or neglects to comply
with any of such provisions or rules, shall upon conviction be
punished by a fine not exceeding one thousand pesos or by
imprisonment not exceeding six (6) months, or both such fine and
imprisonment in the discretion of the court.

Subtitle B

THE COMMISSION ON AUDIT

CHAPTER 1
GENERAL PROVISIONS

Section 1. Declaration of Policy. - All resources of the government

shall be managed, expended or utilized in accordance with law and
regulations and safeguarded against loss or wastage through illegal
or improper disposition to ensure efficiency, economy and
effectiveness in the operations of government. The responsibility to
take care that such policy is faithfully adhered to rests directly with
the chief or head of the government agency concerned.

Section 2. Definition of Terms. - Unless the content otherwise

requires, when used in this Title:

(1) "Fund" is a sum of money or other resources set aside for the
purpose of carrying out specific activities or attaining certain
objectives in accordance with special requisitions, restrictions, or
limitations, and constitutes an independent fiscal and accounting
entity.

(2) "Government funds" includes public moneys of every sort and

other resources pertaining to any agency of the Government.

(3) "Revenue funds" comprises all funds deprived from the income of
any agency of the Government and available for appropriation or
expenditure in accordance with law.

(4) "Trust funds" refers to funds which have come officially into the
possession of any agency of the Government or of a public officer as
trustee, agent, or administrator, or which have been received for the
fulfillment of some obligation.

(5) "Depository funds" comprises funds over which the officer

accountable therefor may retain control for the lawful purposes for
which they came into his possession. It embraces moneys in any and
all depositories.

(6) "Depository" refers to any financial institution lawfully authorized

to receive government moneys upon deposit.

(7) "Resources" refers to the actual assets of any agency of the

Government such as cash, instruments representing or convertible to
money, receivables, lands, buildings, as well as contingent assets,
such as estimated revenues applying to the current fiscal period not
accrued or collected, and bonds authorized and unissued.

(8) "Government agency" or "agency of the government," or "agency"

refers to any department, bureaus or office of the National
Government, or any of its branches and instrumentalities, or any
political subdivision, as well as any government-owned or controlled
corporation, including its subsidiaries, or other self-governing board
or commission of the Government.

CHAPTER 2
ORGANIZATION OF THE COMMISSION ON AUDIT
Section 3. The Commission Proper. - The Commission Proper shall
be composed of the Chairman and two Commissioners. It shall sit as
a body to formulate policies, promulgate rules and regulations, and
prescribe standards governing the discharge of its powers and
functions.

Section 4. The Chairman. - The Chairman shall act as Presiding

Officer of the Commission Proper and Chief Executive Officer of the
Commission. The Chairman may be assisted by the commissioners
in the general administration of the Commission. He shall perform the
following duties:

(1) Control and supervise the general administration of the

commission;

(2) Direct and manage the implementation and execution of policies,

standards, rules and regulations of the commission;

(3) Control and supervise the audit of highly technical or confidential

transactions or accounts of any government agency; and

(4) Perform such other related functions as may be assigned from

time to time by the Chairman.

Section 5. Offices of the Commissioners. - There shall be two (2)

Commissioners who shall assist the Chairman, upon proper
delegation in the general administration of the Commission. They
shall assist in the review and evaluation of existing policies as well as
in the formulation of new ones.

Section 6. The Commission Secretariat. - The Commission

Secretariat shall be headed by the Secretary to the Commission who
shall have the privileges of a COA service chief. The Commission
Secretariat shall perform the following functions:

(1) Prepare the agenda for the sessions of the Commission Proper;

(2) Prepare and keep the minutes of all sessions, hearings and
conferences of the Commission Proper;
(3) Maintain the records of the Commission Proper; and

(4) Perform such related functions as may be assigned by the

Chairman of the Commission Proper.

CHAPTER 3
OFFICES

Section 7. Central Offices. - The Commission shall have the

following central offices:

(1) The Administrative Office shall be headed by a Director and shall

perform the following functions:

(a) Develop and maintain a personnel program which shall include

recruitment, selection, appointment, performance evaluation,
employee relations, and welfare services;

(b) Provide the Commission with services related to personnel,

records, supplies, equipment, medical, collections and
disbursements, and other related services; and

(c) Perform such other related functions as may be assigned from

time to time by the Chairman.

(2) The Planning, Financial and Management Office shall:

(a) Formulate long range and annual plans and programs for the
Commission;

(b) Formulate basis policies and guidelines for the preparation of the
budget of the Commission, coordinate with the Department of Budget
and Management, and the Office of the President in the preparation
of the said budget;

(c) Maintain and administer the accounting system pertaining to the

accounts of the Commission;

(d) Develop and maintain the management information system of the

Commission;
(e) Develop and administer a management improvement program,
including a system for measurement of performance of auditing units
on which an annual report shall be submitted to the Chairman not
later than the 31st of January of each year;

(f) Render consultancy services related to the discharge of

government auditing functions; and

(g) Perform such other related functions as may be assigned from

time to time by the Chairman.

(3) The State Accounting and Auditing Development Office shall be

headed by a Director and shall perform the following functions:

(a) Formulate long range plans for a comprehensive training program

for all personnel of the Commission and personnel of the agencies of
government, with respect to Commission rules and regulations and
audit matters;

(b) Prepare and implement annual training programs, consistent with

its long range plans;

(c) Develop its capability to implement training programs;

(d) Publish the professional journal of the Commission;

(e) Establish and maintain such training centers and libraries as may
be authorized by the Commission; and

(f) Perform such other related functions as may be assigned from

time to time by the Chairman.

(4) The Accountancy Office shall be headed by a Director and shall

perform the following functions:

(a) Prepare for the Commission, the annual financial report of the
National Government and such other financial or statistical works as
may be required by the Commission;
(b) Maintain the accounts of the current surplus of the general fund of
the national government;

(c) Verify appropriations, of national government agencies and control

fund releases pertaining thereto; and

(d) Assist in the formulation of accounting rules and regulations and

supervise the implementation of such rules and regulations in
government agencies.

(5) The Special Audits Office shall be headed by a Director and shall
perform the following functions:

(a) Conduct, consistent with the exercise by the Commission of its

visitorial powers as conferred by the variable scope audit of non-
governmental firms subsidized by the government (1) required to pay
levies or government shares; (2) those funded by donations through
the government; and (3) those for which the government has put up a
counterpart fund. Such audits shall be limited to the funds coming
from the government;

(b) Undertake, on a selective basis, financial compliance, economy,

efficiency and effectiveness audit of national agencies and local
government units, government-owned or controlled corporations, and
other self-governing boards, commissions, or agencies of
government, as well as specific programs and projects of the
government;

(c) Audit financial operations of public utilities and franchise grantees

for rate determination and franchise tax purposes;

(d) Conduct such other special audits as may be directed by the

Chairman; and

(e) Perform such other related functions as may be assigned from

time to time by the Chairman.

(6) The Technical Services Office shall perform the following

functions:
(a) Review and evaluate contracts with emphasis on the engineering
and other technical aspects;

(b) Inspect and appraise infrastructure projects, deliveries of

materials and equipment, and property for disposal;

(c) Develop and administer a system for monitoring the prices of

materials, supplies, and equipment purchased by the government;

(d) Initiate special studies on technical matters related to auditing;

and

(e) Perform such other related functions as may be assigned from

time to time by the Chairman.

(7) The Legal Office shall be headed by a General Counsel with the
rank and privileges of a director and which shall perform the following
functions:

(a) Perform advisory and consultative functions and render legal

services with respect to the performance of the functions of the
Commission and the interpretation of pertinent laws and regulations;

(b) Handle the investigation of administrative cases filed against the

personnel of the Commission, evaluate and act on all reports of
involvement of the said personnel in anomalies or irregularities in
government transactions, and perform any other investigative work
required by the Commission upon assignment by the Chairman.

(c) Represent the Commission in preliminary investigation of

malversation and similar cases discovered in audit, assist and
collaborate with the prosecuting agencies of Government in the
prosecution thereof, and assist and collaborate with the Solicitor
General in handling civil cases involving the Chairman or any of the
Commissioners and other officials and employees of the Commission
in their official capacity;

(d) Extend assistance by way of legal advice or counsel to auditors of

the Commission who face harassment or retaliatory suits, whether
civil or criminal, in consequence of the performance of their official
functions;

(e) Coordinate and initiate for the Commission, with appropriate legal
bodies of government with respect to legal proceedings towards the
collection and enforcement of debts and claims, and the restitution of
funds and property, found to be due any government agency in the
settlement and adjustment of its accounts by the Commission; and

(f) Perform such other related functions as may be assigned from

time to time by the Chairman.

(8) The National Government Audit Offices I and II shall be headed

by a Director and which shall perform the following functions:

(a) Exercise control and supervision over the implementation of

auditing rules and regulations in agencies of national government in
the National Capital Region (NCR), including self-governing boards,
commissions or agencies funded from national appropriations;

(b) Review audit reports covering agencies of the national

government under its audit jurisdiction;

(c) Exercise control and supervision over personnel, planning,

financial (budgetary and accounting), and legal matters pertaining to
the Office and the Auditing Units under it;

(d) Formulate and develop plans, operating standards, methods and

techniques for the implementation of auditing rules and regulations
for agencies of the national government;

(e) Formulate accounting and auditing rules and regulations for

agencies of the national government;

(f) Advise and assist the Chairman on matters pertaining to the audit
of agencies of the national government under their respective
jurisdictions; and

(g) Perform such other related functions as may be assigned from

time to time by the Chairman.
(9) The Corporate Audit Office shall be headed by a Director and
shall perform the following functions:

(a) Exercise control and supervision over the implementation of

auditing rules and regulations in government-owned or controlled
corporations in the National Capital Region;

(b) Review audit reports covering government-owned or controlled

corporations;

(c) Exercise control and supervision over personnel, planning,

financial (budgetary and accounting), and legal matters pertaining to
the Office and the Auditing units under it;

(d) Formulate and develop plans, operating standards, methods and

techniques for the implementation of accounting and auditing rules
and regulations in government-owned or controlled corporations;

(e) Formulate accounting and auditing rules and regulations for

government-owned or controlled corporations;

(f) Prepare for the Commission, the annual financial report of

government-owned or controlled corporations;

(g) Advise and assist the Chairman on matters pertaining to the audit
of government-owned or controlled corporations; and

(h) Perform such other related functions as may be assigned from

time to time by the Chairman.

(10) The Local Governments Audit Office shall be headed by a

Director and shall perform the following functions:

(a) Exercise control and supervision over the implementation of

auditing rules and regulations in local government units in the
National Capital Region;

(b) Review audit reports covering local government units in the

National Capital Region;
(c) Exercise control and supervision over personnel, planning,
financial (budgetary and accounting), and legal matters pertaining to
the Office and Auditing units under it;

(d) Formulate and develop plans, operating standards, methods and

techniques for the implementation of auditing rules and regulations in
local government units;

(e) Formulate accounting and auditing rules and regulations for local
government units;

(f) Prepare for the Commission, the annual financial report of local
government units;

(g) Advise and assist the Chairman on matters pertaining to the audit
of local government units; and

(h) Perform such other related functions as may be assigned from

time to time by the Chairman.

Section 8. Auditing Units in Regional Offices: Structure and

Functions. - The Regional Offices in Region I to XII, each to be
headed by a Director shall perform the following functions:

(1) Exercise supervision and control over the implementation of

auditing rules and regulations in any agency of the government with
principal office or place of operations within the regions;

(2) Review local, national and corporate audit reports pertaining to

the region;

(3) Exercise control and supervision over personnel, planning,

financial (budgetary and accounting), and legal matters pertaining to
the region; and

(4) Perform such other related functions as may be assigned by the

Chairman.
Section 9. Auditing Units in Government Agencies: Structure and
Functions. - The Auditing Units in government agencies shall perform
the following functions:

(1) Examine, audit and settle all accounts, funds, financial

transactions and resources of government agencies under their
jurisdiction.

(2) Submit audit reports and such other reports as may be required
by the Commission;

(3) Keep and preserve expense vouchers, journal vouchers, stubs of

treasury warrants and checks, reports of collections and
disbursements and similar documents together with their supporting
papers, under regulations of the Commission; and

(4) Perform such other functions as may be assigned to them by the

Chairman.

CHAPTER 4
JURISDICTION, POWERS AND FUNCTIONS OF THE
COMMISSION

Section 10. Statement of Objectives. - In keeping with the

constitutional mandate, the Commission adheres to the following
objectives:

(1) Determine whether or not the fiscal responsibility that rests

directly with the head of the government agency has been properly
and effectively discharged;

(2) Develop and implement a comprehensive audit program that shall

encompass an examination of financial transactions, accounts and
reports, including evaluation of compliance with applicable laws and
regulations;

(3) Institute control measures through the promulgation of auditing

and accounting rules and regulations governing the receipts
disbursements, and uses of funds and property, consistent with the
total economic development efforts of the Government;
(4) Promulgate auditing and accounting rules and regulations so as to
facilitate the keeping, and enhance the information value of the
accounts of the Government;

(5) Institute measures designed to preserve and ensure the

independence of its representatives; and

(6) Endeavor to bring its operations closer to the people by the

delegation of authority through decentralization, consistent with the
provisions of the Constitution and the laws.

Section 11. General Jurisdiction. -

(1) The Commission on Audit shall have the power, authority, and
duty to examine, audit, and settle all accounts pertaining to the
revenue and receipts of, and expenditures or uses of funds and
property, owned or held in trust by, or pertaining to, the Government,
or any of its subdivisions, agencies, or instrumentalities, including
government-owned or controlled corporations with original charters,
and on a post-audit basis: (a) constitutional bodies, commissions and
offices that have been granted fiscal autonomy under this
Constitution; (b) autonomous state colleges and universities, (c) other
government-owned or controlled corporations and their subsidiaries;
and (d) such non-governmental entities receiving subsidy or equity,
directly or indirectly from or through the Government, which are
required by law or the granting institution to submit to such audit as a
condition of subsidy or equity. However, where the internal control
system of the audited agencies is inadequate, the Commission may
adopt such measures, including temporary or special pre-audit, as
are necessary and appropriate to correct the deficiencies. It shall
keep the general accounts of the Government and, for such period as
may be provided by law, preserve the vouchers and other supporting
papers pertaining thereto.

(2) The Commission shall have exclusive authority, subject to the

limitations in this Article, to define the scope of its audit and
examination, establish the techniques and methods required therefor,
and promulgate accounting and auditing rules and regulations,
including those for the prevention and disallowance of irregular,
unnecessary, excessive, extravagant, or unconscionable
expenditures, or uses of government funds and properties.

Section 12. Appointing Power. - The Commission Proper shall appoint

in accordance with the Civil Service Law, the officials and employees
of the Commission wherever they are stationed or assigned.

Section 13. Examining Authority. - The Commission shall have

authority to examine books, papers, documents filed by individuals
and corporations with, and which are in the custody of, government
offices in connection with government revenue collection operations,
for the sole purpose of ascertaining that all funds determined by the
appropriate agencies and collectible and due the Government have
actually been collected, except as otherwise provided in the Internal
Revenue Code of 1977.

Section 14. Visitorial Authority. -

(1) The Commission shall have visitorial authority over non-

government entities subsidized by the Government, those required to
pay levies or have government shares, those which have received
counterpart funds from the Government or are partly funded by
donations through the Government. This authority, however, shall
pertain only to the audit of these funds or subsidies coming from or
through the Government; and

(2) Upon direction of the President, the Commission shall likewise

exercise visitorial authority over non-governmental entities whose
loans are guaranteed by the Government, provided that such
authority shall pertain only to the audit of the government's contingent
liability.

Section 15. Fee for Audit and Other Services. -

(1) The Commission shall fix and collect reasonable fees for the
different services rendered to non-government entities that shall be
audited in connection with their dealings with the Government arising
from subsidiaries, counterpart funding by Government, or where
audited records become the basis for a government levy or share.
Fees of this nature shall accrue to the General Fund and shall be
remitted to the Treasurer of the Philippines within ten (10) days
following the completion of the audit; and

(2) Whenever the Commission contracts with any government entity

to render audit and related services beyond the normal scope of such
services, the Commission is empowered to fix and collect reasonable
fees. Such fees shall either be appropriated in the agency's current
budget, charged against its savings, or appropriated in its succeeding
year's budget. Remittance shall accrue to the General Fund and shall
be made to the Treasurer of the Philippines within the time provided
for in the contract of service, or in the billing rendered by the
Commission.

Section 16. Deputization of Private Licensed Professionals to Assist

Government Auditors. -

(1) The Commission may, when the exigencies of the service also
require, deputize and retain in the name of the Commission such
certified public accountants and other licensed professionals not in
the public service as it may deem necessary to assist government
auditors in undertaking specialized audit engagements; and

(2) The deputized professionals shall be entitled to such

compensation and allowances as may be stipulated, subject to
pertinent rules and regulations on compensation and fees.

Section 17. Government Contracts for Auditing, Accounting and

Related Services. -

(1) No government agency shall enter into any contract with any
private person or firm for services to undertake studies and services
relating to government auditing, including services to conduct, for a
fee, seminars or workshops for government personnel on these
topics, unless the proposed contract is first submitted to the
Commission to enable it to determine if it has the resources to
undertake such studies or services. The Commission may engage
the services of experts from the public or private sectors in the
conduct of these studies; and
(2) Should the Commission decide not to undertake the study or
service, it shall nonetheless have the power to review the contract in
order to determine the reasonableness of its costs.

Section 18. Settlement of Accounts Between Agencies. - The

Commission shall have the power, under such regulations as it may
prescribe, to authorize and enforce the settlement of accounts
subsisting between agencies of the Government.

Section 19. Collection of Indebtedness Due to the Government. - The

Commission shall, through proper channels, assist in the collection
and enforcement of all debts and claims, and the restitution of all
funds or the replacement or payment as a reasonable price of
property, found to be due the Government, or any of its subdivisions,
agencies or instrumentalities, or any government-owned or controlled
corporation or self-governing, board, commission or agency of the
Government, in the settlement and adjustment of its accounts. If any
legal proceeding is necessary to that end, the Commission shall refer
the case to the Solicitor General, the Government Corporate
Counsel, or the Legal Staff of the Creditor Government Office or
agency concerned to institute such legal proceeding. The
Commission shall extend full support in the litigation. All such moneys
due and payable shall bear interest at the legal rate from the date of
written demand by the Commission.

Section 20. Power to Compromise Claims. -

(1) When the interest of the Government so requires, the Commission

may compromise or release in whole or in part, any settled claim or
liability to any government agency not exceeding ten thousand pesos
arising out of any matter or case before it or within its jurisdiction, and
with the written approval of the President, it may likewise compromise
or release any similar claim or liability not exceeding one hundred
thousand pesos. In case the claim or liability exceeds one hundred
thousand pesos, the application for relief therefrom shall be
submitted, through the Commission and the President, with their
recommendations, to the Congress; and

(2) The Commission may, in the interest of the Government,

authorize the charging or crediting to an appropriate account in the
National Treasury, small discrepancies (overage or shortage) in the
remittances to, and disbursements of, the National Treasury, subject
to the rules and regulations as it may prescribe.

Section 21. Retention of Money for Satisfaction of Indebtedness to

Government. - When any person is indebted to any government
agency, the Commission may direct the proper officer to withhold the
payment of any money due such person or his estate to be applied in
satisfaction of the indebtedness.

Section 22. Authority to Examine Accounts of Public Utilities. -

(1) The Commission shall examine and audit the books, records and
accounts of public utilities in connection with the fixing of rates of
every nature, or in relation to the proceedings of the proper regulatory
agencies, for purposes of determining franchise taxes;

(2) Any public utility refusing to allow an examination and audit of its
books of accounts and pertinent records, or offering unnecessary
obstruction to the examination and audit, or found guilty of concealing
any material information concerning its financial status shall be
subject to the penalties provided by law; and

(3) During the examination and audit, the public utility concerned shall
produce all the reports, records, books of accounts and such other
papers as may be required. The Commission shall have the power to
examine under oath any official or employee of the said public utility.

Section 23. Submission of Papers Relative to Obligations. -

(1) The Commission shall have the power, for purposes of inspection,
to require the submission of the original of any order, deed, contract,
or other document under which any collection, or payment from,
government funds may be made, together with any certificate,
receipt, or other evidence in connection therewith. If authenticated
copy is needed for record purposes, the copy shall upon demand be
furnished;

(2) In the case of deeds to property purchased by any government

agency, the Commission shall require a certificate of title entered in
favor of the Government or other evidence satisfactory to it that the
title is in the Government; and

(3) It shall be the duty of the officials or employees concerned,

including those in non-government entities under audit, or affected in
the audit of government and non-government entities, to comply with
these requirements. Failure or refusal to do so without justifiable
cause shall be a ground for administrative disciplinary action as well
as for disallowing permanently a claim under examination, assessing
additional levy or government share, or withholding or withdrawing
government funding or donation through the Government.

Section 24. Investigatory and Inquisitorial Powers. - The Chairman or

any Commissioner, the Central Office Managers, the Regional
Directors, the Auditors of any government agency, and any other
official or employee of the Commission specially deputed in writing for
the purpose by the Chairman shall, in compliance with the
requirement of due process have the power to summon the parties to
a case brought before the Commission for resolution, issue subpoena
and subpoena duces tecum, administer oaths, and otherwise take
testimony in any investigation or inquiry on any matter within the
jurisdiction of the Commission.

Section 25. Power to Punish Contempt. - The Commission shall have

the power to punish contempt provided for in the Rules of Court
under the same procedure and with the same penalties provided
therein. Any violation of any final and executory decision, order or
ruling of the Commission shall constitute contempt of the
Commission.

Section 26. Annual Report of the Commission. -

(1) The Commission shall submit to the President, and the Congress
not later than the last day of September of each year an annual report
on the financial condition and results of operation of all agencies of
the Government which shall include recommendations of measures
necessary to improve the efficiency and effectiveness of these
agencies;
(2) To carry out the purposes of this section, the Chief Accountant or
the official in charge of keeping the accounts of government agency
shall submit to the Commission year-end trial balances and such
other supporting or subsidiary statements as may be required by the
Commission not later than the fourteenth (14) day of February. Trial
balances returned by the Commission for revision due to non-
compliance with accounting rules and regulations shall be
resubmitted within three days after the date of receipt by the official
concerned; and

(3) Failure on the part of any official or employee to comply with the
provisions of the immediately preceding paragraph shall cause the
automatic suspension of the payment of his salary and other
emoluments until he shall have complied therewith. The violation of
these provisions for at least three (3) times shall subject the offender
to administrative disciplinary action.

Section 27. Statement of Monthly Receipts and Disbursements. - The

Commission shall forward to the Secretary of Finance, as soon as
and within sixty (60) days after the expiration of each month, a
statement of all receipts of the national government of whatever
class, and payments of moneys made on warrants or otherwise
during the preceding month.

Section 28. Powers, Functions, Duties of Auditors as Representatives

of the Commission. -

(1) The Auditors shall exercise such powers and functions as may be
authorized by the Commission in the examination, audit and
settlement of the accounts, funds, financial transactions and
resources of the agencies under their respective audit jurisdiction;

(2) A report of audit for each calendar year shall be submitted on the
last working day of February following the close of the year by the
head of each auditing unit through the Commission to the head or the
governing body of the agency concerned, and copies thereof shall be
furnished the government officials concerned or authorized to receive
them. Subject to such rules and regulations as the Commission may
prescribe, the report shall set forth the scope of audit and shall
include statements of financial conditions, surplus or deficit analysis,
operations, changes in financial position, and such comments and
information as may be necessary together with such
recommendations with respect thereto as may be advisable, including
a report of any impairment of capital noted in the audit. It shall also
show specifically any program, expenditure, or other financial
transaction or undertaking observed in the course of the audit which
in the opinion of the auditor has been carried out or made without
authority of law. The auditor shall render such other reports as the
Commission may require:

(3) In the performance of their respective audit functions as herein

specified, the auditors shall employ such auditing procedures and
techniques as are determined by the Commission under regulations
that it may promulgate; and

(4) The auditors in all auditing units shall have the custody and be
responsible for the safekeeping and preservation of paid expense
vouchers, journal vouchers, stubs of treasury warrants or checks,
reports of collections and disbursements and similar documents,
together with their respective supporting papers, under regulations of
the Commission.

Section 29. Check and Audit of Property or Supplies. - The auditor

shall from time to time conduct a careful and thorough check and
audit of all property or supplies of the agency to which he is assigned.
Such check and audit shall not be confined to a mere inspection and
examination of the pertinent vouchers, inventories, and other papers
but shall include an ocular verification of the existence and condition
of the property or supplies. The recommendation of the auditor shall
be embodied in the proper report.

Section 30. Annual Audit and Work Program. - Each Auditor who is
head of an auditing unit shall develop and devise an annual work
program and the necessary audit program for his unit in accordance
with the regulations of the Commission.

Section 31. Seizure of Office by Auditor. -

(1) The books, accounts, papers and cash of any local treasurer or
other accountable officer shall at all times be open to the inspection
of the Commission or its authorized representatives;

(2) In case an examination of the accounts of a local treasurer

discloses a shortage in cash which should be on hand, it shall be the
duty of the examining officer to seize the office and its contents, notify
the Commission and the local chief executive, thereupon immediately
take full possession of the office and its contents, close and render
his accounts to the date of taking possession, and temporarily
continue the public business of such office; and

(3) The auditor who takes possession of the office of the local
treasurer under this section shall ipso facto supersede the local
treasurer until the officer involved is restored, or another person has
been appointed or designated to the position or other provision has
been lawfully made for filling the office.

Section 32. Constructive Distraint of Property of Accountable Officer. -

(1) Upon discovery in audit of a shortage in the accounts of any

accountable officer and upon a finding of a prima facie case of
malversation of public funds or property against him, in order to
safeguard the interest of the Government, the Commission may place
under constructive distraint personal property of the accountable
officer concerned where there is reasonable ground to believe that
the said officer is retiring from the government service or intends to
leave the Philippines or remove his property therefrom or hide or
conceal his property.

(2) The constructive distraint shall be effected by requiring the

accountable officer concerned or any other person having possession
or control of the property to accomplish a receipt, in the form of
prescribed by the Commission, covering the property distrained and
obligate himself to preserve the same intact and unaltered and not to
dispose of it in any manner whatever without the express authority of
the Commission; and

(3) In case the said accountable officer or other person having the
possession and control of the property sought to be placed under
constructive distraint refuses or fails to accomplish the receipt herein
referred to, the representative of the Commission effecting the
constructive distraint shall proceed to prepare a list of such property
and, in the presence of two (2) witnesses, leave a copy thereof in the
premises where the property distrained is located, after which the
said property shall be deemed to have been placed under
constructive distraint.

CHAPTER 5
DECISIONS OF THE COMMISSION

Section 33. Appeal from Decision of Auditors. - Any person aggrieved

by the decision of an auditor of any government agency in the
settlement of an account or claim may, within six (6) months from
receipts of a copy thereof, appeal in writing to the Commission.

Section 34. Period for Rendering Decisions of the Commission. - The

Commission shall decide any case brought before it within sixty (60)
days from the date of its submission for resolution. If the account or
claim involved in the case needs reference to other persons or office,
or to a party interested, the period shall be counted from the time the
last comment necessary to a proper decision is received by it.

Section 35. Appeal from Decision of the Commission. - Any decision,

order or ruling of the Commission may be brought to the Supreme
Court on certiorari by the aggrieved party within thirty days from his
receipt of a copy thereof in the manner provided by law and the Rules
of Court. When the decision, order or ruling adversely affects the
interest of any government agency, the appeal may be taken by the
proper head that agency.

Section 36. Finality of Decision of the Commission or Any Auditor. - A

decision of the Commission or of any Auditor upon any matter within
its or his jurisdiction, if not appealed as herein provided, shall be final
and executory.

Section 37. Opening and Revision of Settled Accounts. -

(1) At any time before the expiration of three (3) years after the
settlement of any account by an auditor, the Commission may motu
proprio review and revise the account or settlement and certify a new
balance. For this purpose, it may require any account, vouchers or
other papers connected with the matter to be forwarded to it;

(2) When any settled account appears to be tainted with fraud,

collusion, or error of calculation, or when new and material evidence
is discovered, the Commission may, within three (3) years after the
original settlement, open the account and, after a reasonable time for
reply or appearance of the party concerned, certify thereon a new
balance. An auditor may exercise the same power with respect to
settled accounts pertaining to the agencies under his audit
jurisdiction; and

(3) Accounts once finally settled shall in no case be opened or

reviewed except as herein provided.

CHAPTER 6
GOVERNMENT AUDITING AND ACCOUNTING

Section 38. Definition of Government Auditing. - Government auditing

is the analytical and systematic examination and verification of
financial transactions, operations, accounts and reports of any
government agency for the purpose of determining their accuracy,
integrity and authenticity, and satisfying the requirements of law, rules
and regulations.

Section 39. General Standards. -

(1) The audit shall be performed by a person possessed with

adequate technical training and proficiency as auditor;

(2) In all matters relating to the audit work, the auditor shall maintain
complete independence, impartiality and objectivity and shall avoid
any possible compromise of his independence or any act which may
create a presumption of lack of independence or the possibility of
undue influence in the performance of his duties; and

(3) The auditor shall exercise due professional care and be guided by
applicable laws, regulations and the generally accepted principles of
accounting in the performance of the audit work a well as in the
preparation of audit and financial reports.

Section 40. Definition of Government Accounting. - Government

accounting includes the process of analyzing, recording, classifying,
summarizing and communicating all transactions involving the receipt
and dispositions of government funds and property, and interpreting
the results thereof.

Section 41. Objectives of Government Accounting. - Government

accounting shall aim to produce information concerning past
operations and present conditions; provide a basis for guidance for
future operations; provide for control of the acts of public bodies and
officers in the receipt, disposition and utilization of funds and
property; and report on the financial position and the results of
operations of government agencies for the information of all persons
concerned.

CHAPTER 7
RECEIPT AND DISPOSITION OF FUNDS AND PROPERTY

Section 42. Accounting for Money and Property Received by Public

Officials. - Except as may otherwise be specifically provided by law or
competent authority, all moneys and property officially received by a
public officer in any capacity or upon any occasion must be
accounted for as government funds and government property.
Government property shall be taken up in the books of the agency
concerned at acquisition cost or an appraised value.

Section 43. Special, Fiduciary and Trust Funds. - Receipts shall be

recorded as income of Special, Fiduciary or Trust Funds or Funds
other than the General Fund only when authorized by law as
implemented pursuant to law.

Section 44. Issuance of Official Receipts. -

(1) No payment of any nature shall be received by a collecting officer

without immediately issuing an official receipt in acknowledgment
thereof. The receipt may be in the form of postage, internal revenue
or documentary stamps and the like, or officially numbered receipts,
subject to proper custody, accountability and audit; and

(2) Where mechanical devices are used to acknowledge cash

receipts, the Commission may approve, upon request, exemption
from the use of accountable forms.

CHAPTER 8
APPLICATION OF APPROPRIATED FUNDS

Section 45. Disbursement of Government Funds. -

(1) Revenue funds shall not be paid out of any public treasury or
depository except in pursuance of an appropriation law or other
specific statutory authority;

(2) Trust funds shall not be paid out of any public treasury or
depository except in fulfillment of the purpose for which the trust was
created or funds received and upon authorization of the legislative
body, or head of any other agency of the government having control
thereof, and subject to pertinent budget laws, rules and regulations;

(3) National revenue and trust funds shall not be withdrawn from the
National Treasury except upon warrant or other instruments of
withdrawal approved by the Secretary of Finance as recommended
by the Treasurer of the Philippines; and

(4) Temporary investment of investible cash in the National Treasury

in any securities issued by the National Government and its political
subdivisions and instrumentalities, including government-owned or
controlled corporations as authorized by the Secretary of Finance,
shall not be construed as disbursement of funds.

Section 46. Appropriation Before Entering into Contract. -

(1) No contract involving the expenditure of public funds shall be

entered into unless there is an appropriation therefor, the
unexpended balance of which, free of other obligations, is sufficient to
cover the proposed expenditure; and
(2) Notwithstanding this provision, contracts for the procurement of
supplies and materials to be carried in stock may be entered into
under regulations of the Commission provided that when issued, the
supplies and materials shall be charged to the proper appropriations
account.

Section 47. Certificate Showing Appropriation to Meet Contract. -

Except in the case of a contract for personal service, for supplies for
current consumption or to be carried in stock not exceeding the
estimated consumption for three (3) months, or banking transactions
of government-owned or controlled banks, no contract involving the
expenditure of public funds by any government agency shall be
entered into or authorized unless the proper accounting official of the
agency concerned shall have certified to the officer entering into the
obligation that funds have been duly appropriated for the purpose and
that the amount necessary to cover the proposed contract for the
current calendar year is available for expenditure on account thereof,
subject to verification by the auditor concerned. The certificate signed
by the proper accounting official and auditor who verified it, shall be
attached to and become an integral part of the proposed contract,
and the sum so certified shall not thereafter be available for
expenditure for any other purpose until the obligation of the
government agency concerned under the contract is fully
extinguished.

Section 48. Void Contract and Liability of Officer. - Any contract

entered into contrary to the requirements of the two (2) immediately
preceding sections shall be void, and the officer or officers entering
into the contract shall be liable to the Government or other
contracting party for any consequent damage to the same extent as if
the transaction had been wholly between private parties.

Section 49. Countersigning of Warrants or Checks by Auditors. - No

warrant or check shall be paid by the Treasury of the Philippines,
local treasurer, or any government depository unless it is
countersigned by a duly authorized official of the Commission. When,
in the opinion of the Commission, the interest of the service so
requires, the warrant or check may be paid without the
countersignature under such rules and regulations as it may be
prescribed from time to time.
CHAPTER 9
ACCOUNTABILITY AND RESPONSIBILITY FOR GOVERNMENT
FUNDS AND PROPERTY

Section 50. Accountable Officers; Board Requirements. -

(1) Every officer of any government agency whose duties permit or

require the possession or custody government funds shall be
accountable therefor and for safekeeping thereof in conformity with
law; and

(2) Every accountable officer shall be properly bonded in accordance

with law.

Section 51. Primary and Secondary Responsibility. -

(1) The head of any agency of the Government is immediately and

primarily responsible for all government funds and property pertaining
to his agency;

(2) Persons entrusted with the possession or custody of the funds or

property under the agency head shall be immediately responsible to
him, without prejudice to the liability of either party to the
Government.

Section 52. General Liability for Unlawful Expenditures. -

Expenditures of government funds or uses of government property in
violation of law or regulations shall be a personal liability of the official
or employee found to be directly responsible therefor.

Section 53. Prohibition Against Pecuniary Interest. - No accountable

or responsible officer shall be pecuniary interested, directly or
indirectly, in any contract or transaction of the agency in which he is
such an officer.

CHAPTER 10
MISCELLANEOUS PROVISIONS
Section 54. Duty to Respect the Commission's Independence. - It
shall be the duty of every person to respect, protect and preserve the
independence of the Commission.

Section 55. Administrative Disciplinary Action. - Subject to rules and

regulations as may be approved by the President, any unjustified
failure by the public officer concerned to comply with any requirement
imposed in Title I-B, Book V of this Code shall constitute neglect of
duty and shall be a ground for administrative disciplinary action
against said public officer who, upon being found guilty thereof after
hearing, shall be meted out such penalty as is commensurate with
the degree of his guilt in accordance with the Civil Service Law.
Repealed unjustified failure to comply with the requirement imposed
in Title I-B, Book V of this Code shall be conclusive proof that the
public officer concerned is notoriously undesirable.

Subtitle C

COMMISSION ON ELECTIONS

CHAPTER 1
GENERAL PROVISIONS

Section 1. Declaration of Policy. - The State shall at all times ensure

free, orderly, honest, peaceful and credible elections under a free and
open party system which shall be allowed to evolve according to the
free choice of the people subject to the provisions of Article IX-C of
the 1987 Constitution of the Philippines.

Section 2. Powers and Functions. - In addition to the powers and

functions conferred upon it by the constitution, the Commission shall
have exclusive charge of the enforcement and administration of all
laws relative to the conduct of elections for the purpose of insuring
free, orderly, honest, peaceful and credible elections, and shall:

(1) Promulgate rules and regulations implementing the provisions of

the Omnibus Elections Code or other laws which the Commission is
required to enforce and administer;
(2) Fix other reasonable periods for certain pre-election requirements
in order that voters shall not be deprived of their rights of suffrage and
certain groups of rights granted them in the Omnibus Election Code;

Unless indicated in the Omnibus Election Code, the Commission is

hereby authorized to fix the appropriate period for the various
prohibited acts enumerated therein, consistent with the requirements
of free, orderly, honest, peaceful and credible elections.

(3) Exercise direct and immediate supervision and control over

national and local officials or employees, including members of any
national or local law enforcement agency and instrumentality of the
government required by law to perform duties relative to the conduct
of elections, plebiscite, referendum, recall and initiative. In addition, it
may authorize CMT cadets, eighteen years of age and above to act
as its deputies for the purpose of enforcing its orders;

The Commission may relieve any officer or employee referred to in

the preceding paragraph from the performance of his duties relating
to electoral processes who violates the election law or fails to comply
with its instructions, orders, decisions or rulings, and appoint his
substitute. Upon recommendation of the Commission, the
corresponding proper authority shall suspend or remove from office
any or all of such officers or employees who may after due process,
be found guilty of such violation or failure.

(4) During the period of the campaign and ending thirty days
thereafter, when in any area of the country there are persons
committing acts of terrorism to influence people to vote for or against
any candidate or political party, the Commission shall have the power
to authorize any member or members of the Armed Forces of the
Philippines, the National Bureau of Investigation, the Integrated
National Police or any similar agency or instrumentality of the
government, except civilian home defense forces, to act as deputies
for the purpose of insuring the holding of free, orderly, honest,
peaceful and credible elections;

(5) Publish at least ten (10) days before an election in a newspaper of

general circulation certified data on the number of official ballots and
election returns and the names and address of the printers and the
number printed by each;

(6) Refuse, motu propio or upon a verified petition, to give due course
to or cancel a certificate of candidacy if it is shown that said certificate
has been filed to put the election process in mockery or disrepute or
to cause confusion among the voters by the similarity of the names of
the registered candidates or by other circumstances or acts which
clearly demonstrate that the candidate has no bona fide intention to
run for the office for which the certificate of candidacy has been filed
and thus prevent a faithful determination of the true will of the
electorate;

(7) Postpone, motu propio or upon verified petition and after due
notice and hearing whereby all interested parties are afforded equal
opportunity to be heard, the election to a date which should be
reasonably close to the date of the election not held, suspended or
which resulted in a failure to elect but not later than thirty days after
the cessation of the cause for such postponement or suspension of
the election or failure to elect, when for any serious cause such as
violence, terrorism, loss or destruction of election paraphernalia or
records, force majeure, and other analogous causes the holding of a
free, orderly, honest, peaceful and credible election should become
impossible in any political subdivision.

(8) Call for the holding or continuation of election not held in any
polling place where on account of force majeure, violence, terrorism,
fraud or other analogous causes the election has not been held on
the date fixed, or had been suspended before the hour fixed by law
for the closing of the voting, or after the voting and during the
preparation and the transmission of the election returns or in the
custody or canvass thereof, such election results in a failure to elect,
and in any of such cases the failure or suspension of election would
affect the result of the election. Such call should be on the basis of a
verified petition by any interested party and after due notice and
hearing and the new date should be reasonably close to the date of
the election not held, suspended or which resulted in a failure to elect
but not later than thirty (30) days after the cessation of the cause of
such postponement or suspension of the election or failure to elect.
(9) Call a special election to elect the member to serve the unexpired
portion in case a vacancy arises in the Senate or in the House of
Representatives eighteen (18) months or more before a regular
election, to be held within sixty (60) days after the vacancy occurs;

(10) Summon the parties to a controversy pending before it, issue

subpoena duces tecum and take testimony in any investigation or
hearing before it, and delegate such power to any officer of the
Commission who shall be a member of the Philippine Bar. In case of
failure of a witness to attend, the Commission, upon proof of service
of the subpoena to said witness, may issue a warrant to arrest the
witness and bring him before the Commission or the officer before
whom his attendance is required;

Any controversy submitted to the Commission shall, after compliance

with the requirements of due process, be immediately heard and
decided by it within sixty (60) days from the date of its submission for
decision or resolution. No decision or resolution shall be rendered by
the Commission either en banc or by division unless taken up in a
formal session properly convened for the purpose;

The Commission may when necessary, avail itself of the assistance

of any national or local law enforcement agency and or
instrumentality of the government to execute under its direct and
immediate supervision any of its final decisions, orders, instruction or
rulings;

(11) Punish for contempt according to the procedure, and with the
same penalties provided, in the Rules of Court. Any violation of any
final and executory decision, order or ruling of the Commission shall
constitute contempt thereof;

(12) Enforce and execute its decisions, directives, orders and

instructions which shall have precedence over those emanating from
any other authority, except the Supreme Court and those issued in
habeas corpus proceedings;

(13) Prescribe the forms to be used in the election, plebiscite or

referendum, recall or initiative;
(14) Procure any supplies, equipment, materials or services needed
for the holding of the election by public bidding; but if it finds the
requirements of public bidding impractical to observe, then by
negotiations or sealed bids, and in both cases, the accredited parties
shall be duly notified;

(15) Prescribe the use or adoption of the latest technological and

electronic devices, taking into account the situation prevailing in the
area and funds available for the purpose. The Commission shall
notify the authorized representatives of accredited political parties
and candidates in areas affected by the use or adoption of
technological and electronic devices not less than thirty days prior to
the effectivity of the use of such devices;

(16) Constitute a pool of standby-teachers from which substitutes

shall be drawn in case a member/s of the Board of Election
Inspectors who, for one reason or another, failed to report or refused
to act as such on the day of election.

(17) Carry out a continuing and systematic campaign through

newspapers of general circulation, radio and other media forms to
educate the public and fully inform the electorate about election laws,
procedures, decisions, and other matters relative to the works and
duties of the Commission and the necessity of clean, free, orderly,
honest, peaceful and credible electoral processes;

(18) Accredit non-partisan groups or organizations of citizens from

the civic, youth, professional, education, business or labor sectors
known for their probity, impartiality and integrity with the membership
and capability to undertake a coordinated operation and activity to
assist it in the implementation of the provisions of Omnibus Election
Code and the resolutions, orders and instructions of the Commission
for purpose of ensuring free, orderly, honest, peaceful and credible
elections in any constituency. Such groups or organization shall
functions under the direct and immediate control and supervision of
the Commission;

(19) Conduct hearings on controversies pending before it in the cities

or provinces upon proper motion of any party, taking into
consideration the materiality and number of witnesses to be
presented, the situation prevailing in the area and the fund available
for the purpose;

(20) Have exclusive jurisdiction over all pre-proclamation

controversies. It may motu proprio or upon written petition, and after
due notice and hearing, order the partial or total suspension of the
proclamation of any candidate-elect or annul partially or totally any
proclamation, if one has been made, as the evidence shall warrant.
Notwithstanding the pendency of any preproclamation controversy,
the Commission may, motu propio or upon filing of a verified petition
and after due notice and hearing, order the proclamation of other
winning candidates whose election will not be affected by the
outcome of the controversy.

(21) Have the exclusive power, through its duly authorized legal
officers, to conduct preliminary investigation of all election offenses
punishable under the Omnibus Election Code and to prosecute the
same. The Commission may avail itself of the assistance of other
prosecuting arms of the government: Provided, however, that in the
event that the Commission fails to act on any complaint within four (4)
months from its filing, the complainant may file the complaint with the
office of the fiscal or with the Department of Justice for proper
investigation and prosecution, if warranted; and

(22) Perform such other functions as may be provided by law.

Section 3. Enforcement Powers. - For the effective enforcement of

the provisions of the Omnibus Election Code, the Commission is
further vested and charged with the following powers, duties and
responsibilities:

1. To stop any illegal activity, or confiscate, tear down, and stop any
unlawful, libelous, misleading or false election propaganda, after due
notice and hearing; and

2. To inquire into the financial records of candidates and any

organization or group of persons, motu propio or upon written
representation for probable cause by any candidate, organization or
group of persons or qualified voter, after due notice and hearing.
For purposes of this Section, the Commission may avail itself of the
assistance of the Commission on Audit, the Central Bank, the
National Bureau of Investigation, the Bureau of Internal Revenue, the
Armed Forces of the Philippines, the Integrated National Police of the
Philippines, barangay officials and other agencies of the government.

CHAPTER 2
THE COMMISSION PROPER

Section 4. Composition and Qualifications. - There shall be a

Commission on Elections composed of a Chairman and six (6)
Commissioners who shall be natural born citizens of the Philippines
and, at the time of their appointment, at least thirty-five (35) years of
age, holders of a college degree, and must not have been candidates
for any elective position in the immediately preceding elections.
However, a majority thereof, including the Chairman, shall be
members of the Philippine Bar who have been engaged in the
practice of law for at least ten (10) years.

Section 5. Appointment and Term of Office. - The Chairman and the

Commissioners shall be appointed by the President with the consent
of the Commission on Appointments for a term of seven (7) years
without reappointment. Of those first appointed, three (3) Members
shall hold office for seven (7) years, two (2) members for five (5)
years, and the last members for three (3) years, without
reappointment. Appointment to any vacancy shall be only for the
unexpired term of the predecessor. In no case shall any Member be
appointed or designated in a temporary or acting capacity.

Section 6. Disqualifications. - The Chairman and members of the

Commission shall be subject to the canons of judicial ethics in the
discharge of their functions.

No chairman or commissioners shall sit in any case in which he has

manifested bias or prejudice or antagonism against any party thereto
and in connection therewith, or in any case in which he would be
disqualified under the Rules of Court. If it be claimed that the
chairman or a commissioner is disqualified as above provided, the
party objecting to his competency may file his objection in writing with
the Commission stating the ground therefor. The official concerned
shall continue to participate in the hearing or withdraw therefrom in
accordance with his determination of the question of his
disqualification. The decision shall forthwith be made in writing and
filed with the other papers of the case in accordance with the Rules of
Court. If a disqualification should result in a lack of quorum in the
Commission sitting en banc, the Presiding Justice of the Court of
Appeals shall designate a justice of said court to sit in said case for
the purpose of hearing and reaching a decision thereon.

Section 7. Chairman as Executive Officer; Powers and Duties. - The

Chairman, who shall be the Chief Executive Officer of the
Commission, shall:

(1) Execute and administer the policies, decisions, orders and

resolutions approved by the Commission;

(2) Direct and supervise the operations and internal administration of

the Commission;

(3) Sign appointments of subordinate officials and employees made

by the Commission and enforce decisions on administrative discipline
involving them;

(4) Make temporary assignments, rotate and transfer personnel in

accordance with the provisions of the civil service law;

(5) Submit an annual budget to the Commission for its approval;

(6) Delegate his authority, in whole or in part, to other officials of the

Commission, in accordance with the rules and regulations of the
Commission; and

(7) Perform such other duties as may be authorized by the

Commission.

Section 8. Executive Director; Powers and Duties. - The Executive

Director of the Commission shall:
(1) Advise and assist the Chairman in the formulation and
implementation of the objectives, policies, plans and programs of the
Commission;

(2) Serve as the principal assistant of the Chairman in the overall

supervision of the administrative business of the Commission;

(3) Oversee all the operational activities of the Commission;

(4) Coordinate the programs and projects of the Commission and be

responsible for its economical, efficient and effective administration;

(5) Serve as deputy to the Chairman in all matters relating to the

operational activities of the Commission;

(6) Administer oaths in connection with all matters relating to the

business of the Commission; and

(7) Perform such other duties as may be assigned by the Chairman.

Section 9. Staff and Operating Units. - The Commission shall have

the following staff and operating units: Office of the Chairman, Office
of the Executive Director, Office of the Electoral Contests
Adjudication, Regional Offices, Election and Barangay Affairs
Department, Law Department, Election Records and Statistics
Department, Administrative Service Department, Planning
Department, Personnel Department, Finance Services Department
and Education and Information Department.

Section 10. Duties and Functions of Offices and Departments of the

Commission. - The different offices and departments of the
Commission shall operate in accordance with their respective duties
and functions assigned to them by the Commission, subject to the
requirements of efficiency, economy and effectiveness, and pertinent
Budget and Civil Service Law, rules and regulations.

CHAPTER 3
THE FIELD OFFICES
Section 11. Field Office of the Commission. - The Commission shall
have the following field offices:

(1) Regional Election Office, headed by the Regional Election

Director and assisted by the Assistant Regional Director and such
other subordinate officers or employees as the Commission may
appoint;

(2) Provincial Election Office, headed by the Provincial Election

Supervisor and assisted by such other subordinate officers or
employees as the Commission may appoint;

(3) City Municipal Election Office, headed by the City/Municipal

Election Registrar who shall be assisted by an election clerk and such
other employees as the Commission may appoint.

The Commission may delegate its powers and functions or order the
implementation or enforcement of its orders, rulings or decisions
through the heads of its field offices.

Section 12. Qualifications of Heads of field Offices. - Only members of

the Philippines Bar shall be eligible for appointment to the position of
regional director, assistant regional director, provincial election
supervisor and election registrar. However, if there are no members
of the Philippine Bar available for appointment as election registrar,
except in cities and capital towns, graduates of duly recognized
schools of law, liberal arts, education or business administration who
possess the appropriate civil service eligibility may be appointed to
said position.

Section 13. Changes in the Composition, Distribution of Assignment

of Field Offices. - The Commission may make changes in the
composition, distribution and assignment of field offices, as well as its
personnel, whenever the exigencies of the service and the interest of
free, orderly, honest, peaceful and credible election so require:
Provided, That such changes shall be effective and enforceable only
for the duration of the election period concerned and shall not affect
the tenure of office of the incumbents of positions affected and shall
not constitute a demotion, either in rank of salary, nor result in a
change of status; and Provided, further, that there shall be no
changes in the composition, distribution or assignment within thirty
(30) days before election, except for cause and after due notice and
hearing, and that in no case shall a regional or assistant regional
director be assigned to a region, or a provincial election supervisor to
a province, or a city municipal election registrar to a city or
municipality, where he and/or his spouse are related to any candidate
within the fourth civil degree of consanguinity or affinity as the case
may be.

Title II

OTHER BODIES

Subtitle A

Commission on Human Rights

Section 1. Composition and Qualification. - The Commission on

Human Rights shall be composed of a Chairman and four (4)
Members who must be natural-born citizens of the Philippines and, at
the time of their appointment, at least thirty-five years of age, and
must not have been candidates for any elective position in the
elections immediately preceding their appointment. However, a
majority thereof shall be members of the Philippine Bar.

Section 2. Powers and Functions. - The Commission on Human

Rights shall:

(1) Investigate, on its own or on complaint by any party, all forms of

human rights violations involving civil and political rights;

(2) Adopt its operational guidelines and rules of procedure, and cite
for contempt violations thereof in accordance with the Rules of Court;

(3) Provide appropriate legal measures for the protection of human

rights of all persons within the Philippines, as well as Filipinos
residing abroad, and provide for preventive measures and legal aid
services to the under-privileged whose human rights have been
violated or need protection;
(4) Exercise visitorial powers over jails prisons, or detention facilities;

(5) Establish a continuing program of research, education and

information to enhance respect for the primacy of human rights;

(6) Recommend to the Congress effective measures to promote

human rights and to provide for compensation to victims of violations
of human rights, or their families;

(7) Monitor the Philippine Government's compliance with international

treaty obligations on human rights;

(8) Grant immunity from prosecution to any person whose testimony

or whose possession of documents or other evidence is necessary or
convenient to determine the truth in any investigation conducted by it
or under its authority;

(9) Request the assistance of any department, bureau, office, or

agency in the performance of its functions;

(10) Appoint its officers and employees in accordance with law; and

(11) Perform such other duties and functions as may be provided by

law.

Section 3. Inhibitions Against Commissioners. - The Chairman and

the Members of the Commission on Human Rights shall not, during
their tenure, hold any other office or employment. Neither shall they
engage in the practice of any profession or in the active management
or control of any business which in any way will be affected by the
functions of their office, nor shall they be financially interested,
directly or indirectly, in any contract with, or in any franchise or
privilege granted by the government, any of its subdivisions,
agencies, or instrumentalities, including government-owned or
controlled corporations or their subsidiaries.

Section 4. Term of Office. - The Chairman and the Members of the

Commission on Human Rights shall be appointed by the President for
a term of seven years without reappointment. Appointment to any
vacancy shall be only for the unexpired term of the predecessor.
Section 5. Compensation. - The Chairman and the Members of the
Commission on Human Rights shall receive the same salary as the
Chairman and Members, respectively, of the Constitutional
Commissions, which shall not be decreased during their term of
office.

Section 6. Annual Appropriations. - The approved annual

appropriations of the Commission on Human Rights shall be
automatically and regularly released.

Subtitle B

Office of the Ombudsman

Section 1. Composition. -

(1) The Office of the Ombudsman shall be headed by the

Ombudsman, to be known as the Tanod-bayan, who shall be
assisted by one overall Deputy and at least by one Deputy each for
Luzon, Visayas and Mindanao. A separate Deputy for the military
establishment may likewise be appointed.

(2) It shall have such other officials and employees, to be appointed

by the Ombudsman according to the Civil Service Law.

Section 2. Powers and Functions. - The Office of the Ombudsman

shall:

(1) Investigate on its own, or on complaint by any person, any act or

omission of any public official, employee, office or agency, when such
act or omission appears to be illegal, unjust, improper, or inefficient;

(2) Direct, upon complaint or at its own instance, any public official or
employee of the Government, or any subdivision, agency or
instrumentality thereof, as well as of any government-owned or
controlled corporation with original charter, to perform and expedite
any act or duty required by law, or to stop, prevent, and correct any
abuse or impropriety in the performance of duties;
(3) Direct the officer concerned to take appropriate action against a
public official or employee at fault, and recommend his removal,
suspension, demotion, fine, censure, or prosecution, and ensure
compliance therewith;

(4) Direct the officer concerned, in any appropriate case, and subject
to such limitations as may be provided by law, to furnish it with copies
of documents relating to contracts or transactions entered into by his
office involving the disbursement or use of public funds or properties,
and report any irregularity to the Commission on Audit for appropriate
action;

(5) Request any government agency for assistance and information

necessary in the discharge of its responsibilities, and to examine, if
necessary, pertinent records and documents;

(6) Publicize matters covered by its investigation when circumstances

so warrant and with due prudence;

(7) Determine the causes of inefficiency; red tape, mismanagement,

fraud, and corruption in the Government and make recommendations
for their elimination and the observance of high standards of ethics
and efficiency;

(8) Promulgate its rules of procedure and exercise such other powers
or perform such functions or duties as may be provided by law.

Section 3. Action and Complaints. - The Ombudsman and his

Deputies, as protectors of the people, shall act promptly on complaint
filed in any form or manner against public officials or employees of
the Government, or any subdivision, agency or instrumentality
thereof, including government-owned or controlled corporations, and
shall, in appropriate cases, notify the complainants of the action taken
and the result thereof.

Section 4. Fiscal Autonomy. - The Office of the Ombudsman shall

enjoy fiscal autonomy. Its approved annual appropriations shall be
automatically and regularly released.

Subtitle C
The National Economic and Development Authority

CHAPTER 1
GENERAL PROVISIONS

Section 1. Declaration of Policy. - The State shall ensure that all

socio-economic programs and activities of the government shall be
programmed within the context of well-formulated and consistent
long, medium, and short-term development plans and policies to
promote both the growth of the economy and the equitable
distribution of the benefits of such growth to the members of society.
To this end, it is recognized that the formulation of the required socio-
economic development policies and plans is a vital process that calls
for the participation of the various government agencies and private
sector institutions and individuals concerned, both on national,
regional, and local levels. This process of policy and plan formulation,
however needs to be coordinated closely by a central government
agency to ensure consistency of these plans and policies and optimal
use of the nation's scarce resources.

Section 2. National Economic and Development Authority. - The

National Economic and Development Authority shall serve as an
independent planning agency of the government.

Section 3. Powers and Functions of the Authority. - The powers and

functions of the Authority are vested in the NEDA Board.

The Authority shall primarily be responsible for formulating

continuing, coordinated and fully integrated social and economic
policies, plans and programs, on the basis of the following:

(1) The State aims to achieve objectives of growth coupled with

equity;

(2) Development leading to the attainment of the above mentioned

goals is a multi-faceted process that calls for the coordination and
integration of policies, plans, programs and projects of all sectors of
society;
(3) In the formulation of basic policies, plans, programs and projects,
there shall be maximum participation by and consultation with
concerned private sector groups, community organizations and
beneficiaries and local government units in order to ensure that
priority needs are incorporated into such policies, plans, programs
and projects;

(4) National plans shall be in fact the sum of nationally and regionally
identified targets and strategies and locally formulated approaches to
perceived local needs and priorities, carried out within the framework
of national strategies;

(5) Major socio-economic policies, plans, programs and projects of

different government agencies must be properly coordinated with the
Authority at both the national and regional levels prior to their
adoption, in order to ensure their consistency with established
national priorities and coordination with other policies, plans,
programs and projects of the government; and

(6) The linkage between development planning, programming and

budgeting shall be of the highest priority in planning and budgeting
activities.

The Authority, after due consultation with the private sector,

community organizations and beneficiaries, local government units
and appropriate public agencies, shall be responsible for studying,
reviewing, formulating and recommending continuing, coordinated
and fully integrated economic and development policies, plans and
programs, including the formulation of annual and medium-term
public investment programs, programming official development
assistance in the form of grants and concessional loans from foreign
governments and multilateral agencies and organizations and the
monitoring and evaluation of plan implementation.

Section 4. Composition of the Authority. - The Authority shall be

composed of two separate and distinct entities: the Board and the
Secretariat.

CHAPTER 2
NEDA BOARD
Section 5. Composition of the NEDA Board. - The NEDA Board shall
be composed of the following:

The President

- Chairman

Director-General of the NEDA Secretariat

- Vice-Chairman

Executive Secretary

- Member

Secretary of Finance

- Member

Secretary of Trade & Industry

- Member

Secretary of Agriculture

- Member

Secretary of Environment & Natural Resources

- Member
Secretary of Public Works and Highways

- Member

Secretary of Budget and Management

- Member

Secretary of Labor & Employment

- Member

Secretary of Local Government

- Member

The President may, however, revise the membership of the NEDA

Board whenever the same is deemed necessary for the effective
performance of the Board's functions through an administrative or
memorandum order.

Section 6. Meetings. - The NEDA Board shall meet at least once a

month or as frequently as is necessary to discharge its
responsibilities as called for by the President. When the President is
unable to attend a meeting, the Director-General of the NEDA may
preside as Chairman, in the absence of any Presidential preference.

The President however continues to have the power to designate

from among the members of the NEDA Board the Chairman that can
appropriately represent the President, to preside over specific
meetings.

Section 7. National Economic Development Authority Inter-agency

Committees. - To assist the NEDA Board in the performance of its
functions, there are hereby created the following committees which
shall hereafter be under the direct control of the NEDA Board and
shall submit all their recommendations to the President for approval
on matters involving their respective concerns. The Chairman of
these committees shall be designated by the President. The NEDA
Board shall likewise determine where the technical staff of the said
committees shall be based.

(1) Development Budget Coordination Committee (DBCC) - The

DBCC, to be composed of the Director-General of the National
Economic Development Authority Secretariat, the Executive
Secretary and the Secretaries of Finance and of Budget and
Management, shall have the following functions:

(a) Recommend for President's approval the level of the annual

government expenditure program and the ceiling of government
spending for economic and social development, national defense,
general government and debt service;

(b) Recommend to the President the proper allocation of

expenditures for each development activity between current operating
expenditures and capital outlay; and

(c) Recommend to the President the amount set to be allocated for

capital outlay under each development activity for the various capital
or infrastructure projects.

(2) Investment Coordination Committee (ICC) - The ICC to be

composed of the Director-General of the National Economic
Development Authority Secretariat, the Executive Secretary, the
Secretaries of Finance, Agriculture, Trade and Industry and of Budget
and Management and the Governor of the Central Bank shall have
the following functions:

(a) Evaluate the fiscal, monetary and balance of payments

implications of major national projects and recommend to the
President the timetable for the implementation of these projects on a
regular basis; and

(b) Recommend to the President a domestic and foreign borrowing

program updated each year; and subsequently submit to the
President a status of fiscal, monetary and balance of payments
implications of major national projects.

(3) Committee on Social Development (SDC) - The SDC to be

composed of the Director-General of the National Economic
Development Authority Secretariat, the Executive Secretary, and the
Secretaries of Education, Culture and Sports, Labor and
Employment, Health, Local Government, Agrarian Reform,
Agriculture and Social Welfare and Development shall have the
following functions:

(a) Advise the President and the NEDA Board on matters concerning
social development, including education, manpower, health and
nutrition, population and family planning, housing, human settlements
and the delivery of other social services;

(b) Coordinate the activities of government agencies concerned with

social development; and

(c) Recommend to the President government policies, programs and

projects on social development consistent with national development
objectives and priorities.

(4) Committee on Infrastructure (INFRACOM) - the INFRACOM to be

composed of the Director-General of the National Economic
Development Authority Secretariat, the Executive Secretary, and the
Secretaries of Public Works and Highways, Transportation and
Communications, Finance, and Budget and Management shall have
the following functions:

(a) Advise the President and the NEDA Board or matters concerning
infrastructure development including highways, airports, seaports and
shore protection; railways; power generation, transmission and
distribution; telecommunications; irrigation, flood control and
drainage; water supply; national buildings for government offices;
hospitals, sanitation and related buildings; state colleges and
universities, elementary and secondary school buildings; and other
public works;
(b) Coordinate the activities of agencies, including government-
owned or controlled corporations concerned with infrastructure
development; and

(c) Recommend to the President government policies, programs and

projects concerning infrastructure development consistent with
national development objectives and priorities.

(5) Committee on Tariff and Related Matters (TRM) - The TRM to be

composed of the Director-General of the National Economic
Development Authority Secretariat, the Executive Secretary, the
Secretaries of Trade and Industry, Foreign Affairs, Agriculture,
Environment and Natural Resources and Budget and Management,
the Government of the Central Bank and the Chairman of the Tariff
Commission shall have the following functions:

(a) Advise the President and the NEDA Board on tariff and related
matters, and on the effects on the country of various international
developments;

(b) Coordinate agency positions and recommend national positions

for international economic negotiations; and

(c) Recommend to the President a continuous rationalization program

for the country's tariff structure.

CHAPTER 3
NEDA SECRETARIAT

Section 8. The NEDA Secretariat. - The Secretariat of NEDA shall

have the following functions:

(1) Serve as the research and technical support arm of the NEDA
Board;

(2) Provide through its various organizational units, technical staff

support and assistance, including the conduct of studies and
development of policy measures and other recommendations, on the
various aspects of the substantive functions of development planning
and policy formulation, and coordination, evaluation and monitoring of
plan implementation;

(3) Serve as the Secretariat of the NEDA Board; and

(4) Perform such other functions as may be assigned to it by the

NEDA Board to achieve its goals and objectives.

Section 9. Structural Organization. - The NEDA Secretariat shall be

composed of the Director-General, three (3) Deputy Directors-
General, five (5) Assistant Directors-General, the National
Development Office, the Regional Development Office, the Central
Support Office and the Regional Offices.

Section 10. Director-General. - The Director-General shall head the

Secretariat and shall likewise serve as Vice-Chairman of the NEDA
Board. He shall be appointed by the President and shall carry the
rank and title of Secretary of Socio-Economic Planning and shall be a
member of the Cabinet.

As Chief Executive Officer, he shall exercise general supervision and

control over its technical and administrative personnel.

Section 11. Deputy Directors-General. - The Director General shall be

assisted by three (3) Deputy Directors-General to be appointed by the
President, one to be responsible for the National Development Office,
one, for the Regional Development Office and one, for the Central
Support Office.

Section 12. Assistant Directors-General. - The Director-General shall

also be assisted by five (5) Assistant Directors-General to be
appointed by the President, who shall be assigned to assist the
Deputy Directors-General in their tasks of coordinating and
supervising their respective Offices.

Section 13. National Development Office. - The National

Development Office shall provide technical staff support as may be
required by the NEDA Board in coordinating the formulation of
national and sectoral policies, plans and programs; monitor macro-
economic and sectoral performances; prepare the necessary
economic reports; conduct economic and development studies on
macro-level plans and policies; and perform such other appropriate
planning tasks as may be assigned by the Director-General.

It shall be composed of the following:

(1) National Planning and Policy Staff;

(2) Agriculture Staff;

(3) Trade, Industry and Utilities Staff;

(4) Infrastructure Staff;

(5) Social Development Staff; and

(6) Public Investment Staff.

Section 14. Regional Development Office. - The Regional

Development Office shall provide technical staff support as may be
required by the implementing agencies in the regions; monitor
regional and inter-regional development policies, plans and
programs; prepare integrated reports on regional planning; conduct
studies on regional development policies; and perform such other
planning tasks as may be assigned by the Director-General.

It shall be composed of the following:

(1) Regional Development Coordination Staff;

(2) Project Monitoring Staff; and

(3) Regional Offices.

In each of the administrative regions, there shall be a regional office

which shall be headed by a Regional Director who shall report to the
Deputy Director-General for Regional Development Office. The
Regional Director shall be appointed by the President.
Section 15. Central Support Office. - The Central Support Office shall
be responsible for providing technical assistance and support
services to the Secretariat's organizational units in the areas of
development administration, internal management improvement,
legal services, development information, administrative services, and
perform such other support service tasks as may be assigned by the
Director-General.

It shall be composed of the following:

(1) Management Staff;

(2) Legal Staff;

(3) Administrative Staff;

(4) Management Information System Staff; and

(5) Development Information Staff.

CHAPTER 4
ATTACHED AGENCIES

Section 16. Retained Agencies. - The following agencies, currently

attached to the Authority, shall continue to be so attached for
purposes of supervision;

(1) Philippine Institute for Development Studies:

(2) Philippine National Volunteer Service Coordinating Agency; and

(3) Tariff Commission.

The Authority shall arrange for the transfer of the functions of the
following agencies to the Regional Development Councils concerned
or other agencies as may be appropriate:

(1) Kalinga Special Development Region;

(2) Laguna Lake Development Authority;

(3) Leyte Sab-A Basin Development Authority.

The National Council for Integrated Area Development (NACIAD) and

the Central Visayas Regional Projects Office (CVRPO) are hereby
transferred to the Authority which shall, within one (1) year from the
date of effectivity of this Code, recommend their transfer to the
appropriate department in conjunction with the Department of Budget
and Management. The Authority shall further review the functions and
activities of all other Integrated Area Development programs and
projects and any other programs requiring multi-sectoral and/or multi-
disciplinary approaches in order to recommend the appropriate
disposition and supervision of the same.

The Authority shall furthermore review the mandate, objectives and

functions of all development authorities in order to recommend such
dispositions or revisions of their charters, as may be deemed
advisable.

BOOK VI

NATIONAL GOVERNMENT BUDGETING

CHAPTER 1
GENERAL PROVISIONS

Section 1. Constitutional Policies on the Budget. -

(1) All appropriations, revenue or tariff bills, bills authorizing increase

of the public debt, bills of local application, and private bills shall
originate exclusively in the House of Representatives but the Senate
may propose or concur with amendments.

(2) The Congress may not increase the appropriations recommended

by the President for the operation of the Government as specified in
the budget. The form, content and manner of preparation of the
budget shall be prescribed by law.
(3) No provision or enactment shall be embraced in the general
appropriations bill unless it relates specifically to some particular
appropriation to which it relates.

(4) The procedures in approving appropriations for the Congress shall

strictly follow the procedure for approving appropriations for other
departments and agencies.

(5) A special appropriations bill shall specify the purpose for which it
is intended, and shall be supported by funds actually available as
certified by the National Treasurer or to be raised by a corresponding
revenue proposal therein.

(6) No law shall be passed authorizing any transfer of appropriations.

However, the President, the President of the Senate, the Speaker of
the House of Representatives, the Chief Justice of the Supreme
Court and the heads of Constitutional Commissions may, by law, be
authorized to augment any item in the general appropriations laws for
their respective offices from savings in other items of their respective
appropriations.

(7) Discretionary funds appropriated for particular official shall be

disbursed only for public purposes to be supported by appropriate
vouchers and subject to such guidelines as may be prescribed by
law.

(8) If, by the end of any fiscal year, the Congress shall have failed to
pass the general appropriations bill for the ensuing fiscal year, the
general appropriations law for the preceding fiscal year shall be
deemed reenacted and shall remain in force and effect until the
general appropriations bill is passed by the Congress.

(9) Fiscal autonomy shall be enjoyed by the Judiciary, Constitutional

Commissions, Office of the Ombudsman, Local Government and
Commission on Human Rights.

Section 2. Definition of Terms. - When used in this Book:

(1) "Appropriation" refers to an authorization made by law or other
legislative enactment, directing payment out of government funds
under specified conditions or for specified purposes.

(2) "Allotment" refers to an authorization issued by the Department of

the Budget to an agency, which allows it to incur obligation for
specified amounts contained in a legislative appropriation.

(3) "Budget" refers to a financial plan required to be prepared

pursuant to Section 16 (1) , Article VIII of the Constitution, reflective
of national objectives, strategies and programs.

(4) "Current operating expenditures" refers to appropriations for the

purchase of goods and services for current consumption or for
benefits expected to terminate within the fiscal year.

(5) "Capital outlay" or "capital expenditures" refers to an appropriation

for the purchase of goods and services, the benefits of which extend
beyond the fiscal year and which add to the assets of the
Government, including investments in the capital of government-
owned or controlled corporations and their subsidiaries.

(6) "Continuing appropriation" refers to an appropriation available to

support obligations for a specified purpose or project, even when
these obligations are incurred beyond the budget year.

(7) "Expected result" means service, product, or benefit that will

accrue to the public, estimated in terms of performance measures or
targets.

(8) "Fiscal year" refers to the period beginning with the first day of
January and ending with the thirty-first day of December of each
calendar year.

(9) The "Government" means the National Government, including the

Executive, the Legislative and the Judicial Branches, and the
Constitutional Commissions.

(10) "Department and agency" and "department or agency" include all

departments, bureaus, offices, boards, commissions, courts,
tribunals, councils, authorities, administrations, centers, institutes,
state colleges and universities, and all other establishments and
instrumentalities of the National Government as defined in the
preceding paragraph.

(11) "Obligation" refers to an amount committed to be paid by the

Government for any lawful act made by an authorized officer for and
in behalf of the Government.

(12) "Program" refers to the functions and activities necessary for the
performance of a major purpose for which a government agency is
established.

(13) "Project" means a component of a program covering a

homogenous group of activities that results in the accomplishment of
an identifiable output.

CHAPTER 2
BUDGET POLICY AND APPROACH

Section 3. Declaration of Policy. - It is hereby declared the policy of

the State to formulate and implement a National Budget that is an
instrument of national development, reflective of national objectives,
strategies and plans. The budget shall be supportive of and
consistent with the socio-economic development plan and shall be
oriented towards the achievement of explicit objectives and expected
results, to ensure that funds are utilized and operations are
conducted effectively, economically and efficiently. The national
budget shall be formulated within the context of a regionalized
government structure and borrowings of all levels of government and
of government-owned or controlled corporations. The budget shall
likewise be prepared within the context of the national long-term plan
and of a long-term budget program.

Section 4. Planning and Budgeting Linkage. - The budget shall be

formulated as an instrument for the attainment of national
development goals and as part of the planning-programming-
budgeting continuum. Levels of revenue, expenditure and debt shall
be established in relation to macro-economic targets of growth,
employment levels, and price level change, and shall be developed
consistent with domestic and foreign debt, domestic credit and
balance of payments objectives for the budget period. The aggregate
magnitudes of the budget shall be determined in close consultation
among the planning and fiscal agencies of government. Budgetary
priorities shall be those specified in the approved national plans,
keeping in mind the capability and performance of the implementing
agencies concerned. Agency budget proposals shall explicitly state
linkage to approved agency plans.

Section 5. National Resource Budget. - The finances of government

shall be analyzed and determined as the aggregate of revenue,
expenditure and debt of all units of government, including the national
government and its agencies and instrumentalities, local government
units and government-owned or controlled corporations. The national
government budget shall be evolved within the framework of the total
impact of government activity on the national economy. The budgets
of government corporations and local governments shall be
consistent in form and timing with that of the national government, to
facilitate comprehensive evaluation.

Section 6. Regional Budgeting. - The budgets of national

government agencies shall take into full and explicit consideration the
goals, plans and requirements of their respective regional offices, in
the interest of full government response to local thinking and initiative.
The budget preparation process shall originate at regional and local
levels, and shall be consolidated and reviewed by the central offices
of the various national agencies. The regional development strategies
and plans, including physical framework and resource-use plans,
shall be considered in the preparation of the budget.

Section 7. Long Term Budgeting. - The annual budgets of the

national government shall be prepared as an integral part of a long-
term budget picture. The long-term economic and physical framework
plans of government, multi-year requirements of approved programs
and projects, organizational and personnel development strategies,
and other commitments entered into or otherwise assumed by
government shall be specified in the budget process.

Section 8. Development Projects. - The development process

requires the implementation of major development projects of such
size as to significantly affect the infrastructure program, debt ceilings,
the balance of payments, domestic credit, and government
expenditure levels. The budget process shall formally consider the
timing of major national projects, in order to ensure the observance of
established fiscal, monetary, international payments, and other
constraints.

Section 9. Performance and Financial Review. - The analysis of

agency operating performance, the evaluation of performance, the
evaluation of performance relative to costs incurred and the review of
agency operating systems and procedures are inherent parts of the
budget process. Agencies shall therefore design and implement (1)
management information systems yielding both performance and
financial information which will adequately monitor and control budget
implementation, and (2) improvements in operating systems,
procedures and practices, so as to ensure that the targets approved
in budget authorization are in fact attained at minimum cost.

Section 10. Compensation and Position Classification. - The size of

personnel services expenditures relative to the total budget and the
number of agencies and personnel in government call for an effective
national compensation and position classification policy. The
Constitutional principle of a single compensation scheme for the
government and its instrumentalities is one of the bases of the
government budget process.

CHAPTER 3
BUDGET PREPARATION

Section 11. Submission of the Budget. - The President shall, in

accordance with Section 22 (1), article VII of the Constitution, submit
within thirty (30) days from the opening of each regular session of the
Congress as the basis for the preparation of the General
Appropriations Act, a national government budget estimated receipts
based on existing and proposed revenue measures, and of estimated
expenditures.

The President shall include in the budget submission the proposed

expenditure level of the Legislative and Judicial Branches and of
Constitutional bodies, which shall have undergone the same process
of evaluation and which shall have been subject to the same
budgetary policies and standards applicable to agencies in the
Executive Branch.

The President may transmit to the Congress from time to time, such
proposed supplemental or deficiency appropriations as are, in his
judgment, (1) necessary on account of laws enacted after the
transmission of the Budget, or (2) otherwise needed in the public
interest.

Section 12. Form and Content of the Budget. - The budget proposal
of the President shall include current operating expenditures and
capital outlays. It shall comprise such funds as may be necessary for
the operation of the programs, projects and activities of the various
departments and agencies. The proposed General Appropriations Act
and other Appropriations Acts necessary to cover the budget
proposals shall be submitted to the Congress to accompany the
President's budget submission.

The budget shall be presented to the Congress in such form and

content as may be approved by the President and may include the
following:

(1) A budget message setting forth in brief the government's

budgetary thrusts for the budget year, including their impact on
development goals, monetary and fiscal objectives, and generally on
the implications of the revenue, expenditure and debt-proposals; and

(2) Summary financial statements setting forth:

(a) Estimated expenditures and proposed appropriations necessary

for the support of the Government for the ensuing fiscal year,
including those financed from operating revenues and from domestic
and foreign borrowings;

(b) Estimated receipts during the ensuing fiscal year under laws
existing at the time the budget is transmitted and under the revenue
proposals, if any, forming part of the year's financing program;
(c) Actual appropriations, expenditures, and receipts during the last
completed fiscal year;

(d) Estimated expenditures and receipts and actual or proposed

appropriations during the fiscal year in progress;

(e) Statements of the condition of the National Treasury at the end of

the last completed fiscal year, the estimated condition of the Treasury
at the end of the fiscal year in progress and the estimated condition of
the Treasury at the end of the ensuing fiscal year, taking into account
the adoption of financial proposals contained in the budget and
showing, at the same time, the unencumbered and unobligated cash
resources;

(f) Essential facts regarding the bonded and other long-term

obligations and indebtedness of the Government, both domestic and
foreign, including identification of recipients of loan proceeds; and

(g) Such other financial statements and data as are deemed

necessary or desirable in order to make known in reasonable detail
the financial condition of the government.

Section 13. Budget Levels. - The ordinary income of government shall

be used primarily to provide appropriations for current operations,
except in case of a national emergency or serious financial stress, the
existence of which has been duly proclaimed by the President.

The level of aggregate revenue expenditure and debt shall be jointly

recommended to the President by the Department of Budget and
Management, the Department of Finance, the National Economic and
Development Authority and the Central Bank of the Philippines,
acting within the Development Budget Coordination Committee of the
National Economic and Development Authority.

No appropriations for current operations and capital outlays of the

Government shall be proposed unless the amount involved is
covered by the ordinary income, or unless it is supported by a
proposal creating additional sources of funds or revenue, including
those generated from domestic and foreign borrowings, sufficient to
cover the same. Likewise, no appropriation for any expenditure, the
amount of which is not covered by the estimated income from the
existing sources of revenue or available current surplus, may be
proposed, unless it is supported by a proposal creating an additional
source of funds sufficient to cover the same.

Proposals creating additional sources of funds shall be prepared in

the form of revenue bills.

The provisions of this section shall not be construed as impairing in

any way the power of the Congress to enact revenue and
appropriation bills, nor the authority of the President to propose
special revenue and appropriation bills after the submission of the
budget.

Section 14. Budget Estimates. - Each head of department, office or

agency of the National Government, including the Legislative and
Judicial Branches, and including government owned or controlled
corporations, shall submit his request for appropriations to the
Department of Budget in accordance with the budget calendar,
format, and such rules and regulations as may be issued in
implementation of this Decree.

The budget estimates of agencies shall include the following

information:

(1) Objectives, functions, activities, programs and projects showing

the general character and relative importance of the work to be
accomplished or the services to be rendered, and the principal
elements of cost involved;

(2) Linkage of the work and financial proposals to approved

development plans;

(3) Estimated current operating expenditures and capital outlays, with

comparative data for the preceding and current budget years;

(4) Identification by region, pursuant to policies on the regionalization

of government operations;
(5) Financial sources, reflecting all revenues, proceeds of foreign and
domestic borrowings, and other sources, particularly those which
accrue to the General Funds;

(6) Contingent liabilities, including national government guarantees of

obligations of government-owned or controlled corporations and their
subsidiaries;

(7) Brief description of the major thrusts and priority programs and
projects for the budget year, results expected for each budgetary
program and project, the nature of work to be performed, estimated
costs per unit of work measurement, including the various objects of
expenditure for each project;

(8) Organization charts and staffing patterns indicating the list of

existing and proposed positions with corresponding salaries, and
proposals for position classification and salary changes, duly
supported by adequate justification.

Section 15. Regional Budget. - The Budgets of national government

agencies shall be prepared taking into full and careful consideration
the opportunities and requirements specific to the various regions of
the country. Where they are organized, regional offices shall originate
agency budget proposals, in accordance with approved priorities and
guidelines.

Agencies which are not regionalized shall nonetheless estimate the

amounts planned to be spent for each region of the country.

The Secretary shall identify by region the expenditure programs of

the national government agencies in the national government budget,
and release funds to national government agencies in accordance
with the approved regional distribution of expenditures, specifying the
region of destination.

Departments and agencies shall sub-allot in full and without the

imposition of reserves, the approved budget allocation of their various
regional offices, except as may be authorized by the Secretary, in
case realignment of expenditures prove to be necessary in the course
of budget execution. The Secretary shall issue the rules and
regulations needed to implement the provisions of this section.

Section 16. Budget Evaluation. - Agency proposals shall be reviewed

on the basis of their own merits and not on the basis of a given
percentage or peso increase or decrease from a prior year's budget
level, or other similar rule of thumb that is not based on specific
justification. Proposed activities, whether new or ongoing, shall be
evaluated using a zero-base approach and on the basis of (1)
relationship with the approved development plan, (2) agency
capability as demonstrated by past performance, (3) complemental
role with related activities of other agencies, and (4) other similar
criteria. The realization of savings in a given budget year and the
consequent non-utilization of funds appropriated or released to a
given agency shall not be a negative factor in the budget evaluation
for a subsequent year.

Section 17. Foreign-Assisted Projects. - The budgetary implications of

foreign-assisted projects shall be explicitly considered at the time of
project design and financing negotiation. The project study shall
specify the cash flow requirements of the project, among others, for
(1) payment of principal and interest, (2) peso component of capital
costs and project preparation, (3) infrastructure and support facilities
needed to be directly financed by government, (4) operating and
other expenditures which will be ultimately required for General Fund
support when the project is implemented, and (5) peso requirements
needed as counterpart. The concurrence of the Department of
Budget and Management shall be obtained with respect to peso
requirements and implication on expenditure ceilings.

Section 18. Coordinating Bodies. - The budgets of coordinating

agencies, councils, task forces, authorities, committees, or other
similar bodies shall be limited to and used to fund only such planning,
coordinating and monitoring functions as are assigned to it. Funds for
implementation shall be budgeted and released to the line
implementing agencies concerned; provided, that the budgets of
coordinating bodies may include a lump-sum for purposes related to
their assigned functions, which lump-sum shall be sub-allotted to
implementing agencies and not used by the agency for its own
operations: provided, further, that funds budgeted for a given agency
falling within the jurisdiction of a coordinating body, may be subject to
release upon approval by the coordinating agency of such release or
of the agency's work program.

Section 19. Budgetary Requirements of Government-Owned or

Controlled Corporations. - The internal operating budgets of
government-owned or controlled corporations and of chartered
institutions shall be approved by their respective governing boards in
accordance with a budget calendar and format as may be approved
by the President: Provided, that such budgets shall be subject to
review and approval as part of the budget process in cases where
national government budgetary support is needed, in terms of (a)
capital or equity inputs, (b) operating contributions to support specific
activities undertaken by the institution as part of its regular functions,
and (c) guarantee of the national government for obligations or
contracts entered into by the corporations: provided, further, that the
submission of interim financial statements may be required by the
Secretary.

Section 20. Tax and Duty Exemptions. - All units of government,

including government-owned or controlled corporations, shall pay
income taxes, customs duties and other taxes and fees as are
imposed under revenue law: provided, that organizations otherwise
exempted by law for the payment of such taxes/duties may ask for a
subsidy from the General Fund in the exact amount of taxes/duties
due: Provided, further, that a procedure shall be established by the
Secretary of Finance and the Secretary of the Budget, whereby such
subsidies shall automatically be considered as both revenue and
expenditure of the General Fund.

Section 21. Appropriation for Personal Services. - Appropriations for

personal services shall be considered as included in the amount
specified for each budgetary program and project of each
department, Bureau, office or agency, and shall not be itemized. The
itemization of personal services shall be prepared by the Secretary
for consideration and approval of the President as provided in Section
23 hereof: Provided, That itemization of personal services shall be
prepared for all agencies of the Legislative, Executive and Judicial
Branches and the Constitutional bodies, except as may be otherwise
approved by the President for positions concerned with national
security matters.

Section 22. Department Approval of Proposed Appropriations. - No

legislative proposal which, if enacted, would authorized subsequent
appropriations, shall be transmitted to the President by any bureau or
agency without the prior approval of the Head of the Department
concerned or by the Chairman or Chief Executive Officer of a Cabinet
level body which coordinates the multi-sectoral formulation and
implementation of a particular program of expenditure involving one
or more departments. No legislative proposal involving the
appropriation of funds shall be transmitted to the Congress without
the approval of the President.

CHAPTER 4
BUDGET AUTHORIZATION

Section 23. Content of the General Appropriations Act. - The General

Appropriations Act shall be presented in the form of budgetary
programs and projects for each agency of the government, with the
corresponding appropriations for each program and project, including
statutory provisions of specific agency or general applicability. The
General Appropriations Act shall not contain any itemization of
personal services, which shall be prepared by the Secretary after
enactment of the General Appropriations Act, for consideration and
approval of the President.

Section 24. Prohibition Against the Increase of Appropriation. - The

Congress shall in no case increase the appropriation of any project or
program of any department, bureau, agency or office of the
Government over the amount submitted by the President in his
budget proposal. In case of any reduction in the proposed
appropriation for a project or program, a corresponding reduction
shall be made in the total appropriation of the department, office or
agency concerned and in the total of the General Appropriations Bill.

Section 25. Prohibition Against Enactment of Additional Special

Provisions. - The Congress shall not add special provisions in the
budget earmarking the use of appropriations for specific programs or
activities nor shall it increase the amounts specified in special
provisions beyond those proposed by the President.

Section 26. Automatic Appropriations. - All expenditures for (1)

personnel retirement premiums, government service insurance, and
other similar fixed expenditures, (2) principal and interest on public
debt, (3) national government guarantees of obligations which are
drawn upon, are automatically appropriated: provided, that no
obligations shall be incurred or payments made from funds thus
automatically appropriated except as issued in the form of regular
budgetary allotments.

Section 27. Supplemental Appropriations. - All appropriation

proposals shall be included and considered in the budget preparation
process. After the President shall have submitted the Budget, no
supplemental appropriation measure supported from existing revenue
measures shall be passed by the Congress. However, supplemental
or deficiency appropriations involving the creation of new offices,
programs or activities may be enacted if accompanied and supported
by new revenue sources.

Section 28. Reversion of Unexpended Balances of Appropriations,

Continuing Appropriations. - Unexpended balances of appropriations
authorized in the General Appropriation Act shall revert to the
unappropriated surplus of the General Fund at the end of the fiscal
year and shall not thereafter be available for expenditure except by
subsequent legislative enactment: Provided, that appropriations for
capital outlays shall remain valid until fully spent or reverted:
provided, further, that continuing appropriations for current operating
expenditures may be specifically recommended and approved as
such in support of projects whose effective implementation calls for
multi-year expenditure commitments: provided, finally, that the
President may authorize the use of savings realized by an agency
during given year to meet non-recurring expenditures in a subsequent
year.

The balances of continuing appropriations shall be reviewed as part

of the annual budget preparation process and the preparation
process and the President may approve upon recommendation of the
Secretary, the reversion of funds no longer needed in connection with
the activities funded by said continuing appropriations.

Section 29. Loan Proceeds. - Expenditures funded by foreign and

domestic borrowings shall be included within the expenditure
program of the agency concerned. Loan proceeds, whether in cash or
in kind, shall not be used without the corresponding release of funds
through a Special Budget as herein provided.

Section 30. Contingent Liabilities. - Government agencies, particularly

government-owned or controlled corporations, shall periodically
report to the Secretary of Finance and the Secretary of Budget on the
status of obligations they have entered into and which are the subject
of government guarantees.

Section 31. Liability for Unauthorized Printing Press Revisions. - It

shall be unlawful for any person to make any unauthorized revision of
any figure, text or provision in the General Appropriations Act and in
the other budget documents during or in the process of the printing.
Any unauthorized change made either by addition, modification or
deletion, shall be null and void.

Persons who, in violation of this section, make any unauthorized

revision in the budget documents, shall be criminally liable for
falsification of legislative documents under the Revised Penal Code.
When the offender is a government official or employee, he shall, in
addition to criminal prosecution, be dismissed from the service.

CHAPTER 5
BUDGET EXECUTION

Section 32. Use of Appropriated Funds. - All moneys appropriated for

functions, activities, projects and programs shall be available solely
for the specific purposes for which these are appropriated.

Section 33. Allotment of Appropriations. - Authorized appropriations

shall be allotted in accordance with the procedure outlined hereunder:

(1) Appropriations authorized for any Department or agency of the

Government may be made available for expenditure when the head
of each Department or agency submits to the Secretary a request for
allotment of funds showing the estimated amounts needed for each
function, activity or purpose for which the funds are to be expended
during the applicable allotment period. The form and the time of
submission of the request for allotment showing the proposed
quarterly allotments of the whole authorized appropriation for the
department or agency, shall be prescribed by the Secretary.

(2) In the administration of the allotment system herein provided,

each calendar year shall be divided into four quarterly allotment
periods beginning, respectively, on the first day of January, April, July
and October. In any case where the quarterly allotment period is
found to be impractical or otherwise undesirable, the Secretary may
prescribe a different period suited to the circumstances.

(3) Request for allotment shall be approved by the Secretary who

shall ensure that expenditures are covered by appropriations both as
to amount and purpose and who shall consider the probable needs of
the department or agency for the remainder of the fiscal year or
period for which the appropriation was made.

(4) At the end of every quarter, each department or agency shall

report to the Secretary the current status of its appropriations, the
cumulative allotments, obligations incurred or liquidated, total
disbursements, unliquidated obligations and unexpended balances
and the results of expended appropriations.

(5) Releases of funds appropriated for a given agency may be made

to its regional offices if dictated by the need and urgency of regional
activities.

(6) The Secretary shall have authority to modify or amend any

allotment previously issued. In case he shall find at any time that the
probable receipts from taxes or other sources of any fund will be less
than anticipated and that as a consequence the amount available for
the remainder of the term of the appropriations or for any allotment
period will be less than the amount estimated or allotted therefor, he
shall, with the approval of the President and after notice to the
department or agency concerned, reduce the amount or amounts
allotted so as to conform to the targeted budgetary goals.
(7) The Secretary shall maintain a control record showing quarterly by
funds, accounts, and other suitable classifications, the amounts
appropriated; the estimated revenues, the actual revenues or
receipts, the amounts allotted and available for expenditures, the
unliquidated obligations, actual balances on hand, and the
unencumbered balance of the allotments for each department or
agency of the Government.

Section 34. Program of Expenditure. - The Secretary of Budget shall

recommend to the President the year's program of expenditure for
each agency of the government on the basis of authorized
appropriations. The approved expenditure program shall constitute
the basis for fund release during the fiscal period, subject to such
policies, rules and regulations as may be approved by the President.

Section 35. Special Budgets for Lump-Sum Appropriations. -

Expenditures from lump-sum appropriations authorized for any
purpose or for any department, office or agency in any annual
General Appropriations Act or other Act and from any fund of the
National Government, shall be made in accordance with a special
budget to be approved by the President, which shall include but shall
not be limited to the number of each kind of position, the
designations, and the annual salary proposed for which an
appropriation is intended. This provision shall be applicable to all
revolving funds, receipts which are automatically made available for
expenditure for certain specific purposes, aids and donations for
carrying out certain activities, or deposits made to cover to cost of
special services to be rendered to private parties. Unless otherwise
expressly provided by law, when any Board, head of department,
chief of bureau or office, or any other official, is authorized to
appropriate, allot, distribute or spend any lump-sum appropriation or
special, bond, trust, and other funds, such authority shall be subject
to the provisions of this section.

In case of any lump-sum appropriation for salaries and wages of

temporary and emergency laborers and employees, including
contractual personnel, provided in any General Appropriation Act or
other Acts, the expenditure of such appropriation shall be limited to
the employment of persons paid by the month, by the day, or by the
hour.

Section 36. Cash Budgets. - An operational cash budget shall be

implemented to ensure the availability of cash resources for priority
development projects and to establish a sound basis for determining
the level, type and timing of public borrowings. The procedure,
formal, accounts, and other details necessary for the execution,
monitoring and control aspects of the system shall be determined
jointly by the Secretary of Finance, the Secretary of the Budget and
the Chairman of the Commission on Audit.

Section 37. Creation of Appropriation Reserves. - The Secretary may

establish reserves against appropriations to provide for contingencies
and emergencies which may arise later in the calendar year and
which would otherwise require deficiency appropriations.

The establishment of appropriation reserves shall not necessarily

mean that such portion of the appropriation will not be made available
for expenditure. Should conditions change during the fiscal year
justifying the use of the reserve, necessary adjudgments may be
made by the Secretary when requested by the department, official or
agency concerned.

Section 38. Suspension of Expenditure of Appropriations. - Except as

otherwise provided in the General Appropriations Act and whenever
in his judgment the public interest so requires, the President, upon
notice to the head of office concerned, is authorized to suspend or
otherwise stop further expenditure of funds allotted for any agency, or
any other expenditure authorized in the General Appropriations Act,
except for personal services appropriations used for permanent
officials and employees.

Section 39. Authority to Use Savings in Appropriations to Cover

Deficits. - Except as otherwise provided in the General Appropriations
Act, any savings in the regular appropriations authorized in the
General Appropriations Act for programs and projects of any
department, office or agency, may, with the approval of the President,
be used to cover a deficit in any other item of the regular
appropriations: provided, that the creation of new positions or
increase of salaries shall not be allowed to be funded from budgetary
savings except when specifically authorized by law: provided, further,
that whenever authorized positions are transferred from one program
or project to another within the same department, office or agency,
the corresponding amounts appropriated for personal services are
also deemed transferred, without, however increasing the total outlay
for personal services of the department, office or agency concerned.

Section 40. Certification of Availability of Funds. - No funds shall be

disbursed, and no expenditures or obligations chargeable against any
authorized allotment shall be incurred or authorized in any
department, office or agency without first securing the certification of
its Chief Accountant or head of accounting unit as to the availability of
funds and the allotment to which the expenditure or obligation may be
properly charged.

No obligation shall be certified to accounts payable unless the

obligation is founded on a valid claim that is properly supported by
sufficient evidence and unless there is proper authority for its
incurrence. Any certification for a non-existent or fictitious obligation
and/or creditor shall be considered void. The certifying official shall be
dismissed from the service, without prejudice to criminal prosecution
under the provisions of the Revised Penal Code. Any payment made
under such certification shall be illegal and every official authorizing
or making such payment, or taking part therein or receiving such
payment, shall be jointly and severally liable to the government for
the full amount so paid or received.

Section 41. Prohibition Against the Incurrence of Overdraft. - Heads

of departments, bureaus, offices and agencies shall not incur nor
authorize the incurrence of expenditures or obligations in excess of
allotments released by the Secretary for their respective departments,
offices and agencies. Parties responsible for the incurrence of
overdrafts shall be held personally liable therefor.

Section 42. Adjustment of Appropriations for Reorganization. - When

under authority of law, a function or an activity is transferred or
assigned from one agency to another, the balances of appropriations
which are determined by the head of such department to be available
and necessary to finance or discharge the function or activity so
transferred or assigned may, with the approval of the President, be
transferred to and be made available for use by the agency to which
said function or activity is transferred or assigned for the purpose for
which said funds were originally available. Balances so transferred
shall be credited to any applicable existing appropriation account or
to new appropriation accounts which are hereby authorized to be
established, and shall be merged with any fund already in the
applicable existing or newly established appropriation account or
accounts and thereafter accounted for as one fund.

The funding requirement of agencies reorganized in accordance with

approved reorganization plans or reorganized pursuant to law
enacted after the approval of the General Appropriations Act, are
deemed appropriated and shall be available for expenditure as soon
as the reorganization plans are approved. The Secretary of Budget is
hereby authorized to make necessary adjustments in the
appropriations to carry out the provisions of this section. The
department head concerned, with the approval of the Secretary of
Budget, is hereby authorized to make necessary salary adjustments
resulting from final selection of personnel to fill the positions in the
staffing patterns of reorganized agencies, to make necessary salary
adjustments resulting from new appointments, promotions or salary
increases, subject to the provisions of Presidential Decree No. 985.

Section 43. Liability for Illegal Expenditures. - Every expenditure or

obligation authorized or incurred in violation of the provisions of this
Code or of the general and special provisions contained in the annual
General or other Appropriations Act shall be void. Every payment
made in violation of said provisions shall be illegal and every official
or employee authorizing or making such payment, or taking part
therein, and every person receiving such payment shall be jointly and
severally liable to the Government for the full amount so paid or
received.

Any official or employee of the Government knowingly incurring any

obligation, or authorizing any expenditure in violation of the provisions
herein, or taking part therein, shall be dismissed from the service,
after due notice and hearing by the duly authorized appointing official.
If the appointing official is other than the President and should he fail
to remove such official or employee, the President may exercise the
power of removal.

Section 44. Accrual of Income to Unappropriated Surplus of the

General Fund. - Unless otherwise specifically provided by law, all
income accruing to the departments, offices and agencies by virtue of
the provisions of existing laws, orders and regulations shall be
deposited in the National Treasury or in the duly authorized
depository of the Government and shall accrue to the unappropriated
surplus of the General Fund of the Government: Provided, That
amounts received in trust and from business-type activities of
government may be separately recorded and disbursed in
accordance with such rules and regulations as may be determined by
the Permanent Committee created under this Act.

Section 45. Special, Fiduciary and Trust Funds. - Receipts shall be

recorded as income of Special, Fiduciary or Trust Funds or Funds
other than the General Fund, only when authorized by law and
following such rules and regulations as may be issued by a
Permanent Committee consisting of the Secretary of Finance as
Chairman, and the Secretary of the Budget and the Chairman,
Commission on Audit, as members. The same Committee shall
likewise monitor and evaluate the activities and balances of all Funds
of the national government other than the General fund and may
recommend for the consideration and approval of the President, the
reversion to the General fund of such amounts as are (1) no longer
necessary for the attainment of the purposes for which said Funds
were established, (2) needed by the General fund in times of
emergency, or (3) violative of the rules and regulations adopted by
the Committee: provided, that the conditions originally agreed upon at
the time the funds were received shall be observed in case of gifts or
donations or other payments made by private parties for specific
purposes.

Section 46. Service Fees and Honoraria. - Agencies are authorized to

charge fees, including honoraria and other reasonable allowances, as
compensation for consultation, seminars or training programs, or
technical services rendered to other government agencies or private
parties. Such fees or honoraria shall be recorded as income of the
government and subject to the usual accounting, auditing and other
pertinent requirements.

Section 47. Administration of Lump Sum Funds. - The Department of

Budget shall administer the Lump-Sum Funds appropriated in the
General Appropriations Act, except as otherwise specified therein,
including the issuance of Treasury Warrants covering payments to
implementing agencies or other creditors, as may be authorized by
the President.

Section 48. Cost Reduction. - Each head of a department bureau,

office or agency shall implement a cost reduction program for his
department bureau, office or agency for the purpose of reducing cost
of operations and shall submit to the President reports on the results
of the implementation thereof. The Department of Budget shall
provide technical and other necessary assistance in the design and
implementation of cost reduction activities. An incentive award not
exceeding one month's salary may be granted to any official or
employee whose suggestion for cost reduction has been adopted and
shall have actually resulted in cost reduction, payable from the saving
resulting therefrom.

Section 49. Authority to Use Savings for Certain Purposes. - Savings

in the appropriations provided in the General Appropriations Act may
be used for the settlement of the following obligations incurred during
a current fiscal year or previous fiscal years as may be approved by
Secretary in accordance with rules and procedures as may be
approved by the President:

(1) Claims of officials, employees and laborers who died or were

injured in line of duty, including burial expenses as authorized under
existing law;

(2) Commutation of terminal leaves of employees due to retirement,

resignation or separation from the service through no fault of their
own in accordance with the provisions of existing law, including
unpaid claims for commutation of maternity leave of absence;

(3) Payment of retirement gratuities or separation pay of employees

separated from the service due to government reorganization;
(4) Payment of salaries of employees who have been suspended or
dismissed as a result of administrative or disciplinary action, or
separated from the service through no fault of their own and who
have been subsequently exonerated and reinstated by virtue of
decisions of competent authority;

(5) Cash awards to deserving officials and employees in accordance

with civil service law;

(6) Salary adjustments of officials and employees as a result of

classification action under, and implementation of, the provisions of
the Compensation and Position Classification Act, including positions
embraced under the Career Executive Service;

(7) Peso support to any undertaking that may be entered into by the
government with international organizations, including administrative
and other incidental expenses;

(8) Covering any deficiency in peso counterpart fund commitments for

foreign assisted projects, as may be approved by the President;

(9) Priority activities that will promote the economic well being of the
nation, including food production, agrarian reform, energy
development, disaster relief, and rehabilitation.

(10) Repair, improvement and renovation of government buildings

and infrastructure and other capital assets damaged by natural
calamities;

(11) Expenses in connection with official participation in trade fairs,

civic parades, celebrations, athletic competitions and cultural
activities, and payment of expenses for the celebration of regular or
special official holidays;

(12) Payment of obligations of the government or any of its

departments or agencies as a result of final judgment of the Courts;
and
(13) Payment of valid prior year's obligations of government agencies
with any other government office or agency, including government-
owned or controlled corporations.

Section 50. Appointment of Budget Officers. - No person shall be

appointed as budget officer in any department, bureau, office or
agency unless he meets the qualification and training requirements
established by the Budget Commission as prerequisite to
appointment, in addition to other qualification requirements
prescribed by the Civil Service Commission for the position.

CHAPTER 6
BUDGET ACCOUNTABILITY

Section 51. Evaluation of Agency Performance. - The President,

through the Secretary shall evaluate on a continuing basis the
quantitative and qualitative measures of agency performance as
reflected in the units of work measurement and other indicators of
agency performance, including the standard and actual costs per unit
of work.

Section 52. Budget Monitoring and Information System. - The

Secretary of Budget shall determine accounting and other items of
information, financial or otherwise, needed to monitor budget
performance and to assess effectiveness of agencies operations and
shall prescribe the forms, schedule of submission, and other
components of reporting systems, including the maintenance of
subsidiary and other recording which will enable agencies to
accomplish and submit said information requirements: provided, that
the Commission on Audit shall, in coordination with the Secretary of
Budget, issue rules and regulations that may be applicable when the
reporting requirements affect accounting functions of agencies:
provided, further, that the applicable rules and regulations shall be
issued by the Commission on Audit within a period of thirty (30) days
after the Department of Budget and Management prescribes the
reporting requirements.

Section 53. Monitoring of Expenditures. - Expenditures of national

government agencies shall be recorded so as to identify expenditures
as classified into such categories as may be determined by the
Department of Budget and Management, including but not limited to
the following: (1) agency incurring the obligation, (2) program, project
and activity, (3) object of expenditure, including personal services,
operating and maintenance expenditures, equipment, and capital
outlays, (4) region or locality of use, (5) economic or functional
classification of the expenditure, (6) obligational authority and cash
transactions arising from fund releases, and such other classifications
as may be necessary for the budget process. The Secretary of
Budget shall determine the data and information requirements thus
needed and the Commission on Audit shall formulate the accounting
rules and regulations, including changes in the Chart of Accounts and
the general or subsidiary accounting records, as may be necessary to
generate the desired data and information. The Chief Accountants of
agencies and where necessary, accountants of regional offices, shall
submit the data needed by the Department of Budget and
Management in accordance with such rules and regulations as it may
formulate.

Section 54. Standard Costs. - The Department of Budget and

Management shall develop standard costs for duly approved units of
work measurement for each agency's budgetary projects or activities.
These standard costs shall be compared with actual unit costs and
utilized in the evaluation of agency budgetary performance.

Section 55. Review of Budgetary Programs. - The Secretary of

Budget shall conduct a continuing review of the budgetary program
and project structure of each department, office or agency, the result
of which shall be the basis for modifying or amending such structure
for incorporation in the President's budget proposals to the Congress.

Section 56. Semi-Annual Report on Accomplishments of Government

Agencies. - The heads of departments, bureaus, offices or agencies
of the government shall submit a semi-annual report of their
accomplishments, both work and financial results, in accordance with
such content and format as may be prescribed by the Secretary.
These reports shall be designed and use for the purpose of
monitoring the efficiency and effectiveness with which budgeted
funds are being utilized, and generally for verifying the attainment of
goals established in the budget process.
Section 57. Failure to Submit Reports. - Failure on the part of agency
heads, chief accountants, budget officers, cashiers, disbursing
officers, administrative and personnel officers, and responsible
officers of departments, bureaus, offices and agencies to submit trial
balances, work and financial plans, special Budgets, reports of
operation and income, plans, special budgets, reports of operation
and income, current agency plantilla of personnel and such other
reports as may be necessary and required by the Department of
Budget shall automatically cause the suspension of payment of their
salaries until they have complied with the requirements of the
Department of Budget. No appropriation authorized in the General
Appropriations Act shall be made available to pay the salary of any
official or employee who violates the provisions of this section, in
addition to any disciplinary action that may be instituted against such
erring official or employee.

CHAPTER 7
EXPENDITURE OF APPROPRIATED FUNDS

Section 58. Contracting of Activities. - Agencies may enter into

contracts with individuals or organizations, both public and private,
subject to provisions of law and applicable guidelines approved by
the President: provided, that contracts shall be for specific services
which cannot be provided by the regular staff of the agency, shall be
for a specific period of time, and shall have a definite expected
output: provided, further, that implementing, monitoring and other
regular and recurring agency activities shall not be contracted for,
except for personnel hired on an individual and contractual basis and
working as part of the organization, or as otherwise may be approved
by the President: Provided, finally, that the cost of contracted services
shall not exceed the amount that would otherwise be incurred had the
work been performed by regular employees of government, except as
may be authorized under this section.

Section 59. Authority to Receive Additional Compensation. - Officials

and employees who are duly appointed by competent authority to any
position in another government office or agency in a concurrent
capacity, may, in the discretion of the President, be allowed to
receive additional compensation in the form of allowance or
honorarium at such rates he shall fix and subject to such conditions
as he may prescribe. Such additional compensation shall be paid
from the appropriations of the office or agency benefitting from the
concurrent service.

Section 60. Restrictions on Salary Increases. - No portion of the

appropriations provided in the General Appropriations Act shall be
used for payment of any salary increase or adjustment unless
specifically authorized by law or appropriate budget circular nor shall
any appropriation for salaries authorized in the General
Appropriations Act, save as otherwise provided for under the
Compensation and Position Classification Act, be paid unless the
positions have been classified by the Budget Commission.

Section 61. Merit Increases. - The budgets of national government

agencies may provide for a lump-sum for merit increases, subject to
such terms and conditions as may be approved by the President.
Such lump-sum shall be used to fund salary increases approved by
the head of agency in recognition of meritorious performance:
Provided, That the Civil Service Commission and the Department of
Budget shall jointly issue the rules and regulations governing the
granting of such merit increases.

Section 62. Salary for Substitutionary Service. - When an official or

employee is issued a duly approved appointment in a temporary or
acting capacity to take the place and perform the duties of another
who is temporarily absent from his post with pay, savings in the
appropriations of the department, bureau or office may be used for
the payment of his salary or differential, subject to the approval of the
Secretary.

Section 63. Additional Compensation for Overtime Service. - Officials

and employees of the National Government, when required to work
overtime after regular working hours during ordinary days, during
half-day sessions, or on Saturdays, Sundays and holidays, by the
heads of departments concerned, to finish work that must be
completed within a specified time, may be paid overtime
compensation from any unexpected balance of the appropriation for
salaries and wages authorized in the General Appropriations Act and
under such guidelines as may be issued by the President.
Section 64. Compensation of Persons Receiving Pension. - A person
receiving life pension, annuity, or gratuity as a result of service in the
national government or any local government unit, or from any
government-owned or controlled corporation, who is reappointed to
any position, the appropriation for the salary of which is provided from
funds of the office, shall have the option to receive either the
compensation for the position, or the pension, gratuity or annuity, but
in no case shall he receive both.

Section 65. Prohibition of Voluntary Service. - Unless otherwise

specifically approved by the President, no person shall be employed
or appointed in the government under the guise of voluntary service,
with compensation below the authorized hiring rate for the position,
but with privilege of transportation and/or representation expenses in
any form, or of receiving per diems, allowances, honoraria,
subsistence, quarters in cash or in kind, payable from government
funds: provided, that the application of this provisions may be waived
to authorize voluntary service in the Armed Forces of the Philippines
or in connection with relief operations.

Section 66. Additional Compensation for School Faculty Members. -

Professors, instructors, teachers, or members of the faculty of
government schools, colleges and universities, when required to
teach more than their regular teaching loads may be paid additional
compensation not exceeding seventy-five percentum of their basic
salary.

Section 67. Laundry. - At the discretion of the department head

concerned, any official or employee of the national government
serving in any hospital, penal institution, or other similar institution,
who is required to wear a uniform during the performance of his
duties, may be granted laundry allowance in kind, or which may be
commuted at such rates as may be authorized by the Department of
Budget.

Section 68. Hazard Pay. - Upon recommendation of the department

head concerned and approval of the Secretary, hazard pay may be
allowed to employees who are actually assigned to danger or strife-
torn areas, disease-infested places, or in distressed or isolated
stations and camps, which expose them to great danger of contagion
or peril to life. Such hazard pay shall be paid from savings of the
department concerned at such rates, terms and conditions as the
Secretary may prescribe.

Section 69. Subsistence. - No official or employee of the national

government shall be given subsistence, the cost of which is payable
from any fund, except the following and only when an appropriation
therefor is specifically provided:

(1) Marine officers, engineers and crew of government vessels,

launches, and motorboats, who shall take their meals on the mess
when aboard the said vessels, launches, or motorboats;

(2) Lightkeepers and other employees in light stations duly authorized

by the head of the department to receive subsistence, who shall be
furnished raw canned, or preserved food supplies;

(3) Officials and employees who are required to render service within
the premises of hospitals, penal institutions, leper institutions, military
installations, and other similar institutions, for a continuous period that
includes meal time, may be allowed full subsistence when required to
live in said premises to make their services available at any and all
times;

(4) Laborers temporarily fielded to isolated or unsettled districts shall

be furnished the usual rations or the equivalent in cash, at the
expense of the government.

In hospitals and leper institutions where there are no mess halls or

whenever these are inadequate, personnel entitled to subsistence
allowance in kind may commute such subsistence upon request of
the personnel concerned subject to the approval of the department
head at authorized rates chargeable against the appropriations for
supplies and materials authorized in the General Appropriations Act.

Section 70. Subsistence of Crew of Government Vessels. - The

subsistence allowance for the officers and crew of the coast guard
and revenue cutters and lighthouse tenders and other large vessels
operated by the Government shall be spent for conducting a mess
under the charge and administration of one or more members of the
complement in each vessel to be designated by the corresponding
head of department, and in accordance with regulations to be issued
by him. The person or persons so designated shall keep an account
of the advances of funds received and expenditures made therefrom
for the operation of the mess and shall render such report to the
corresponding Accounting Officer promptly at the end of each month.

Section 71. Furnished Quarters. - When the position of any official or

employee is provided with "furnished quarters", such official or
employee shall be entitled to the use of such government-owned
furniture and equipment as are necessary for his board and lodging
and those for his family including children below twenty-one years of
age.

Section 72. Per Diems of Government Officials and Employees. -

When a government official or employee is authorized to travel on
official business outside of his permanent station, he shall be entitled
to per diems to cover his board and lodging in accordance with his
schedule: provided, that in addition to per diems, the official or
employee may be entitled to transportation expenses in going to and
coming from his destination and to a daily allowance while in the field:
provided, further, that officials and employees on travel status whose
expenses for board and lodging are paid directly or indirectly by
government may not be entitled to receive the per diems and
allowances corresponding to such payments.

Department secretaries, heads of Constitutional bodies,

undersecretaries and all other positions of equivalent rank are
authorized the reimbursement of actual expenses supported by
receipts, within such limits as may be imposed under the provisions
of this section.

Officials and employees authorized to travel abroad may be granted

clothing allowance: provided, that no official or employee shall be
granted such clothing allowance oftener than once every twenty-four
(24) months.

The rates of per diems and other allowances as authorized in this

section shall be determined by the President. The rates may be
changed from time to time upon recommendation of a Travel Rates
Committee which is hereby created, consisting of the Secretary of
Budget as Chairman and the Secretary of Foreign Affairs, the
Secretary of Tourism and the Chairman, Commission on Audit, or
their representatives, as members.

The Committee shall review travel rates and shall recommend to the
President for consideration and approval modification in rates and
policy when found to be warranted by actual domestic or foreign
travel costs, as the case may be.

Government-owned or controlled corporations shall observe the rates

established under this section: provided, that profit making
corporations may adopt their own scales as may be provided by law.
The Travel Rates Committee shall issue the necessary rules and
regulations to enforce the provisions of this section.

Section 73. Additional Conditions for Payment of Travel Expenses. -

When travel is done by water and subsistence is not included in the
transportation cost, the amount actually and necessarily spent for
subsistence during such travel time shall be paid, and no per diems
shall be allowed in lieu thereof.

Per diems and travel allowances shall not be granted to members of

field parties or others for whom subsistence and allowances in kind
are supplied or other special provision made to cover travel
expenses.

The travel expenses of a government official or employee who is

assigned to render a special service to any private person or entity,
the expenses for which are payable by the latter, shall be paid from a
deposit which the private party shall be required to make before the
performance of the special service is commenced, subject to the
limitations and requirements herein provided for travel expenses
payable from government funds.

No official or employee of the Government who remains temporarily

at one station for a period longer than one (1) month shall be paid per
diems in excess of one (1) month, except upon the approval of the
head of department, and, in case his temporary stay in any one place
exceeds three (3) months, payment of per diems in excess of three
(3) months shall be made only upon the previous approval of the
Secretary.

Section 74. Transportation of Members of Family of an Employee

Transferred from One Station to Another. - Whenever, due to the
exigencies of the service and not at his own request, an official or
employee is transferred from one station to another, said official or
employee and his spouse and children below twenty-one years of
age shall be entitled to transportation and freight for reasonable and
necessary baggage and household effects, at the expense of the
Government, to be paid from the appropriation for traveling expenses
of the bureau or office concerned.

Section 75. Purchase, Use, Operation and Maintenance of Motor

Transport Equipment. - No appropriation for equipment authorized in
the General Appropriations Act shall be used directly or indirectly for
the purchase of automobiles, jeeps, jitneys, station wagons,
motorcycles, trucks, launches, speedboats, airplanes, helicopters and
other types of motor transport equipment unless otherwise
specifically authorized by the President.

All departments, bureaus, offices and agencies authorized to

purchase motor transport equipment including those acquired through
donations, gifts or gratuitous title are likewise authorized to use,
operate and maintain them for purposes of carrying out the official
functions and activities of the agency. These motor vehicles shall be
used strictly for official business, bear government plates only, and
after office hours kept in garage provided therefor by the office or
agency to which they belong, except, when in use for official business
outside office hours. The President, however, may authorize
exceptions from these provisions for officials of government who work
under extended hours or whose activities call for special security
arrangements. Any violation of the provisions of this section shall
subject the erring official or employee to administrative disciplinary
action and he shall be personally liable for any loss or damage
caused to the government or third persons.

The Commission on Audit shall issue rules and regulations governing

the use, operation and maintenance of government motor transport
equipment.
Section 76. Limitation of Rental of Motor Vehicles. - No appropriations
authorized in the General Appropriations Act shall be used for renting
motor transport equipment for a continuous period of more than
fifteen days, except as may be authorized by the Secretary.

Section 77. Limitation of Purchase of Supplies, Materials, and

Equipment Spare Parts. - Except as otherwise provided in the
General Appropriations Act, the stock on hand of supplies, materials
and equipment spare parts, acquired through ordinary and
emergency purchase, shall at no time exceed normal three-month
requirements, subject to the pertinent rules and regulations issued by
competent authority: Provided, That department heads may approve
the build-up of stocks on hand of critical supplies and materials, in
anticipation of cost increases or requirements of a national
emergency, and specifying maximum quantities of individual items,
but in no case shall these stocks exceed more than one year's
supply, unless otherwise approved by the President.

Section 78. Purchase of Locally Manufactured Products. - All

appropriations for the purchase of equipment, supplies and materials
authorized in the General Appropriations Act shall be available only
for locally manufactured equipment; parts, accessories, medicines
and drugs, supplies and materials, except when none is available in
the market or when the price of the locally manufactured article
exceed those determined by the Flag Law.

Section 79. Availability of Appropriations for Rental of Building and

Grounds. - Any appropriation authorized in any Act for rental of
buildings and grounds for any department, bureau, office or agency
shall be available for expenditure only when authorized by the
department head concerned. Such appropriation may also be used
for lease-purchase arrangements.

With the concurrence of the Secretary of Budget and Management

and the Secretary of Finance, the head of the department may
contract with any government financial institution for loans intended
for the acquisition of land for the construction of an office building for
any of the agencies under the department. Annual amortization of the
loans shall be taken from the appropriation for rental authorized
under any Act for the department, bureau or office concerned.

Section 80. Misuse of Government Funds and Property. - Any public

official or employee who shall apply any government fund or property
under his administration or control to any use other than for which
such fund or property is appropriated by laws, shall suffer the penalty
imposed under the appropriate penal laws.

BOOK VII

ADMINISTRATIVE PROCEDURE

CHAPTER 1
GENERAL PROVISIONS

Section 1. Scope. - This Book shall be applicable to all agencies as

defined in the next succeeding section, except the Congress, the
Judiciary, the Constitutional Commissions, military establishments in
all matters relating exclusively to Armed Forces personnel, the Board
of Pardons and Parole, and state universities and colleges.

Section 2. Definitions. - As used in this Book:

(1) "Agency" includes any department, bureau, office, commission,

authority or officer of the National Government authorized by law or
executive order to make rules, issue licenses, grant rights or
privileges, and adjudicate cases; research institutions with respect to
licensing functions; government corporations with respect to functions
regulating private right, privileges, occupation or business; and
officials in the exercise of disciplinary power as provided by law.

(2) "Rule" means any agency statement of general applicability that

implements or interprets a law, fixes and describes the procedures in,
or practice requirements of, an agency, including its regulations. The
term includes memoranda or statements concerning the internal
administration or management of an agency not affecting the rights
of, or procedure available to, the public.
(3) "Rate" means any charge to the public for a service open to all
and upon the same terms, including individual or joint rates, tolls,
classifications, or schedules thereof, as well as commutation,
mileage, kilometerage and other special rates which shall be imposed
by law or regulation to be observed and followed by any person.

(4) "Rule making" means an agency process for the formulation,

amendment, or repeal of a rule.

(5) "Contested case" means any proceeding, including licensing, in

which the legal rights, duties or privileges asserted by specific parties
as required by the Constitution or by law are to be determined after
hearing.

(6) "Person" includes an individual, partnership, corporation,

association, public or private organization of any character other than
an agency.

(7) "Party" includes a person or agency named or admitted as a

party, or properly seeking and entitled as of right to be admitted as a
party, in any agency proceeding; but nothing herein shall be
construed to prevent an agency from admitting any person or agency
as a party for limited purposes.

(8) "Decision" means the whole or any part of the final disposition, not
of an interlocutory character, whether affirmative, negative, or
injunctive in form, of an agency in any matter, including licensing, rate
fixing and granting of rights and privileges.

(9) "Adjudication" means an agency process for the formulation of a

final order.

(10) "License" includes the whole or any part of any agency permit,
certificate, passport, clearance, approval, registration, charter,
membership, statutory exemption or other form of permission, or
regulation of the exercise of a right or privilege.

(11) "Licensing" includes agency process involving the grant,

renewal, denial, revocation, suspension, annulment, withdrawal,
limitation, amendment, modification or conditioning of a license.
(12) "Sanction" includes the whole or part of a prohibition, limitation or
other condition affecting the liberty of any person; the withholding of
relief; the imposition of penalty or fine; the destruction, taking, seizure
or withholding of property; the assessment of damages,
reimbursement, restitution, compensation, cost, charges or fees; the
revocation or suspension of license; or the taking of other compulsory
or restrictive action.

(13) "Relief" includes the whole or part of any grant of money,

assistance, license, authority, privilege, exemption, exception, or
remedy; recognition of any claim, right, immunity, privilege,
exemption or exception; or taking of any action upon the application
or petition of any person.

(14) "Agency proceeding" means any agency process with respect to

rule-making, adjudication and licensing.

1."Agency action" includes the whole or part of every agency rule,

order, license, sanction, relief or its equivalent or denial thereof.

CHAPTER 2
RULES AND REGULATIONS

Section 3. Filing. -

(1) Every agency shall file with the University of the Philippines Law
Center three (3) certified copies of every rule adopted by it. Rules in
force on the date of effectivity of this Code which are not filed within
three (3) months from that date shall not thereafter be the basis of
any sanction against any party or persons.

(2) The records officer of the agency, or his equivalent functionary,

shall carry out the requirements of this section under pain of
disciplinary action.

(3) A permanent register of all rules shall be kept by the issuing

agency and shall be open to public inspection.
Section 4. Effectivity. - In addition to other rule-making requirements
provided by law not inconsistent with this Book, each rule shall
become effective fifteen (15) days from the date of filing as above
provided unless a different date is fixed by law, or specified in the rule
in cases of imminent danger to public health, safety and welfare, the
existence of which must be expressed in a statement accompanying
the rule. The agency shall take appropriate measures to make
emergency rules known to persons who may be affected by them.

Section 5. Publication and Recording. - The University of the

Philippines Law Center shall:

(1) Publish a quarter bulletin setting forth the text of rules filed with it
during the preceding quarter; and

(2) Keep an up-to-date codification of all rules thus published and

remaining in effect, together with a complete index and appropriate
tables.

Section 6. Omission of Some Rules. -

(1) The University of the Philippines Law Center may omit from the
bulletin or the codification any rule if its publication would be unduly
cumbersome, expensive or otherwise inexpedient, but copies of that
rule shall be made available on application to the agency which
adopted it, and the bulletin shall contain a notice stating the general
subject matter of the omitted rule and new copies thereof may be
obtained.

(2) Every rule establishing an offense or defining an act which,

pursuant to law, is punishable as a crime or subject to a penalty shall
in all cases be published in full text.

Section 7. Distribution of Bulletin and Codified Rules. - The

University of the Philippines Law Center shall furnish one (1) free
copy each of every issue of the bulletin and of the codified rules or
supplements to the Office of the President, Congress, all appellate
courts and the National Library. The bulletin and the codified rules
shall be made available free of charge to such public officers or
agencies as the Congress may select, and to other persons at a price
sufficient to cover publication and mailing or distribution costs.

Section 8. Judicial Notice. - The court shall take judicial notice of the
certified copy of each rule duly filed or as published in the bulletin or
the codified rules.

Section 9. Public Participation. -

(1) If not otherwise required by law, an agency shall, as far as

practicable, publish or circulate notices of proposed rules and afford
interested parties the opportunity to submit their views prior to the
adoption of any rule.

(2) In the fixing of rates, no rule or final order shall be valid unless the
proposed rates shall have been published in a newspaper of general
circulation at least two (2) weeks before the first hearing thereon.

(3) In case of opposition, the rules on contested cases shall be

observed.

CHAPTER 3
ADJUDICATION

Section 10. Compromise and Arbitration. - To expedite administrative

proceedings involving conflicting rights or claims and obviate
expensive litigations, every agency shall, in the public interest,
encourage amicable settlement, comprise and arbitration.

Section 11. Notice and Hearing in Contested Cases. -

(1) In any contested case all parties shall be entitled to notice and
hearing. The notice shall be served at least five (5) days before the
date of the hearing and shall state the date, time and place of the
hearing.

(2) The parties shall be given opportunity to present evidence and

argument on all issues. If not precluded by law, informal disposition
may be made of any contested case by stipulation, agreed settlement
or default.
(3) The agency shall keep an official record of its proceedings.

Section 12. Rules of Evidence. - In a contested case:

(1) The agency may admit and give probative value to evidence
commonly accepted by reasonably prudent men in the conduct of
their affairs.

(2) Documentary evidence may be received in the form of copies or

excerpts, if the original is not readily available. Upon request, the
parties shall be given opportunity to compare the copy with the
original. If the original is in the official custody of a public officer, a
certified copy thereof may be accepted.

(3) Every party shall have the right to cross-examine witnesses

presented against him and to submit rebuttal evidence.

(4) The agency may take notice of judicially cognizable facts and of
generally cognizable technical or scientific facts within its specialized
knowledge. The parties shall be notified and afforded an opportunity
to contest the facts so noticed.

Section 13. Subpoena. - In any contested case, the agency shall have
the power to require the attendance of witnesses or the production of
books, papers, documents and other pertinent data, upon request of
any party before or during the hearing upon showing of general
relevance. Unless otherwise provided by law, the agency may, in
case of disobedience, invoke the aid of the Regional Trial Court
within whose jurisdiction the contested case being heard falls. The
Court may punish contumacy or refusal as contempt.

Section 14. Decision. - Every decision rendered by the agency in a

contested case shall be in writing and shall state clearly and distinctly
the facts and the law on which it is based. The agency shall decide
each case within thirty (30) days following its submission. The parties
shall be notified of the decision personally or by registered mail
addressed to their counsel of record, if any, or to them.
Section 15. Finality of Order. - The decision of the agency shall
become final and executory fifteen (15) days after the receipt of a
copy thereof by the party adversely affected unless within that period
an administrative appeal or judicial review, if proper, has been
perfected. One motion for reconsideration may be filed, which shall
suspend the running of the said period.

Section 16. Publication and Compilation of Decisions. -

(1) Every agency shall publish and make available for public
inspection all decisions or final orders in the adjudication of contested
cases.

(2) It shall be the duty of the records officer of the agency or his
equivalent functionary to prepare a register or compilation of those
decisions or final orders for use by the public.

Section 17. Licensing Procedure. -

(1) When the grant, renewal, denial or cancellation of a license is

required to be preceded by notice and hearing, the provisions
concerning contested cases shall apply insofar as practicable.

(2) Except in cases of willful violation of pertinent laws, rules and

regulations or when public security, health, or safety require
otherwise, no license may be withdrawn, suspended, revoked or
annulled without notice and hearing.

Section 18. Non-expiration of License. - Where the licensee has

made timely and sufficient application for the renewal of a license
with reference to any activity of a continuing nature, the existing
license shall not expire until the application shall have been finally
determined by the agency.

CHAPTER 4
ADMINISTRATIVE APPEAL IN CONTESTED CASES

Section 19. Appeal. - Unless otherwise provided by law or executive

order, an appeal from a final decision of the agency may be taken to
the Department head.
Section 20. Perfection of Administrative Appeals. -

(1) Administrative appeals under this Chapter shall be perfected

within fifteen (15) days after receipt of a copy of the decision
complained of by the party adversely affected, by filing with the
agency which adjudicated the case a notice of appeal, serving copies
thereof upon the prevailing party and the appellate agency, and
paying the required fees.

(2) If a motion for reconsideration is denied, the movant shall have

the right to perfect his appeal during the remainder of the period for
appeal, reckoned from receipt of the resolution of denial. If the
decision is reversed on reconsideration, the aggrieved party shall
have fifteen (15) days from receipt of the resolution of reversal within
which to perfect his appeal.

(3) The agency shall, upon perfection of the appeal, transmit the
records of the case to the appellate agency.

Section 21. Effect of Appeal. - The appeal shall stay the decision
appealed from unless otherwise provided by law, or the appellate
agency directs execution pending appeal, as it may deem just,
considering the nature and circumstances of the case.

Section 22. Action on Appeal. - The appellate agency shall review the
records of the proceedings and may, on its own initiative or upon
motion, receive additional evidence.

Section 23. Finality of Decision of Appellate Agency. - In any

contested case, the decision of the appellate agency shall become
final and executory fifteen (15) days after the receipt by the parties of
a copy thereof.

Section 24. Hearing Officers. -

(1) Each agency shall have such number of qualified and competent
members of the base as hearing officers as may be necessary for the
hearing and adjudication of contested cases.
(2) No hearing officer shall engaged in the performance of
prosecuting functions in any contested case or any factually related
case.

Section 25. Judicial Review. -

(1) Agency decisions shall be subject to judicial review in accordance

with this chapter and applicable laws.

(2) Any party aggrieved or adversely affected by an agency decision

may seek judicial review.

(3) The action for judicial review may be brought against the agency,
or its officers, and all indispensable and necessary parties as defined
in the Rules of Court.

(4) Appeal from an agency decision shall be perfected by filing with

the agency within fifteen (15) days from receipt of a copy thereof a
notice of appeal, and with the reviewing court a petition for review of
the order. Copies of the petition shall be served upon the agency and
all parties of record. The petition shall contain a concise statement of
the issues involved and the grounds relied upon for the review, and
shall be accompanied with a true copy of the order appealed from,
together with copies of such material portions of the records as are
referred to therein and other supporting papers. The petition shall be
under oath and shall how, by stating the specific material dates, that it
was filed within the period fixed in this chapter.

(5) The petition for review shall be perfected within fifteen (15) days
from receipt of the final administrative decision. One (1) motion for
reconsideration may be allowed. If the motion is denied, the movant
shall perfect his appeal during the remaining period for appeal
reckoned from receipt of the resolution of denial. If the decision is
reversed on reconsideration, the appellant shall have fifteen (15)
days from receipt of the resolution to perfect his appeal.

(6) The review proceeding shall be filed in the court specified by

statute or, in the absence thereof, in any court of competent
jurisdiction in accordance with the provisions on venue of the Rules of
Court.
(7) Review shall be made on the basis of the record taken as a
whole. The findings of fact of the agency when supported by
substantial evidence shall be final except when specifically provided
otherwise by law.

Section 26. Transmittal of Record. - Within fifteen (15) days from the
service of the petition for review, the agency shall transmit to the
court the original or a certified copy of the entire records of the
proceeding under review. The record to be transmitted may be
abridged by agreement of all parties to the proceedings. The court
may require or permit subsequent correction or additions to the
record.

FINAL PROVISIONS

Section 27. Repealing Clause. - All laws, decrees, orders, rules and
regulations, or portions thereof, inconsistent with this Code are
hereby repealed or modified accordingly.

Section 28. Separability Clauses. - In the event that any of the

provisions of this Code is declared unconstitutional, the validity of the
other provisions shall not be affected by such declaration.

Section 29. Effectivity. - This Code shall take effect one year after its
publication in the Official Gazette.

DONE in the City of Manila, this 25th day of July, in the year of Our
Lord, nineteen hundred and eighty-seven.
Notes:
Appendix B
PRESIDENTIAL DECREE No. 807 October 6, 1975

PROVIDING FOR THE ORGANIZATION OF THE CIVIL SERVICE

COMMISSION IN ACCORDANCE WITH PROVISIONS OF THE
CONSTITUTION, PRESCRIBING ITS POWERS AND FUNCTIONS
AND FOR OTHER PURPOSES

WHEREAS, the Constitution provides for organization of a Civil

Service Commission which shall establish a career service and adopt
measures to promote morale, efficiency and integrity in the
government service;

WHEREAS, Presidential Decree No. 110 dated January 26, 1973

declared the Civil Service Commission envisioned in the Constitution
in existence, providing guidelines for its operation;

WHEREAS, there is need for the immediate organization of the Civil

Service Commission in order to enable it to carry out its mission as
mandated by the Constitution; and

WHEREAS, the former Civil Service Commission created under

Republic Act No. 2260, as amended, and as organized under the
Integrated Reorganization Plan may serve as the nucleus of the Civil
Service Commission.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the

Philippines, by virtue of the powers vested in me by the Constitution,
do hereby decree and order:

ARTICLE I
TITLE

Section 1. This Decree shall be known as the Civil Service Decree of

the Philippines.

ARTICLE II
DECLARATION OF POLICY
Section 2. It shall be the policy of the State to insure and promote the
Constitutional mandate that appointment in the Civil Service shall be
made only according to merit and fitness, to provide within the public
service a progressive system of personnel administration, and to
adopt measures to promote morale and the highest degree of
responsibility, integrity, loyalty, efficiency, and professionalism in the
Civil Service; that the Civil Service Commission shall be the central
personnel agency to set standards and to enforce the laws and rules
governing the selection, utilization, training and discipline of civil
servants; that a public office is a public trust and public officers shall
serve with the highest degree of responsibility, integrity, loyalty and
efficiency and shall remain accountable to the people; and that action
on personnel matters shall be decentralized, with the different
departments and other offices or agencies of the government
delegating to their regional offices or other similar units, powers and
functions.

ARTICLE III
DEFINITION OF TERMS

Section 3. As used in this Decree, the following shall be construed

thus:

(a) Agency means any bureau, office, commission, administration,

board, committee, institute, corporation, whether performing
governmental or proprietary function, or any other unit of the National
Government, as well as provincial, city or municipal government,
except as hereinafter otherwise provided.

(b) Appointing officer is the person or body authorized by law to make

appointments in the Philippine Civil Service.

(c) Class includes all positions in the government service that are
sufficiently similar as to duties and responsibilities and require similar
qualifications that can be given the same title and salary and for all
administrative and compensation purposes, be treated alike.

(d) Commission refers to the Civil Service Commission.

(e) Chairman refers to the Chairman of the Commission.

(f) Commissioner refers either of the two other members of the
Commission.

(g) Department includes any of the executive departments or entities

having the category of a department including the judiciary,
Commission on Elections and Commission on Audit.

(h) Eligible refers to a person who obtains a passing grade in a civil

service examination or is granted a civil service eligibility and whose
name is entered in the register of eligibles.

(i) Examination refers to a civil service examination conducted by the

Commission and its regional offices or by other departments or
agencies with the assistance of the Commission, or in coordination or
jointly with it, and those that it may delegate to departments and
agencies pursuant to this Decree, or those that may have been
delegated by law.

(j) Form refers to those prescribed by the Civil Service Commission.

ARTICLE IV
SCOPE OF THE CIVIL SERVICE

Section 4. Position Embraced in the Civil Service. The Civil Service

embraces every branch, agency, subdivision, and instrumentality of
the government, including every government-owned or controlled
corporations whether performing governmental or proprietary
function.

Positions in the Civil Service shall be classified into career service

and non-career service.

Section 5. The Career Service shall be characterized by (1) entrance

based on merit and fitness to be determined as far as practicable by
competitive examinations, or based on highly technical qualifications;
(2) opportunity for advancement to higher career positions; and (3)
security of tenure.

The Career Service shall include:

1. Open Career positions for appointment to which prior qualification
in an appropriate examination is required;

2. Closed Career positions which are scientific or highly technical in

nature; these include the faculty and academic staff of state colleges
and universities, and scientific and technical positions in scientific or
research institutions which shall establish and maintain their own
merit systems;

3. Positions in the Career Executive Service; namely,

Undersecretary, Assistant Secretary, Bureau Director, Assistant
Bureau Director, Regional Director, Assistant Regional Director, Chief
of Department Service and other officers of equivalent rank as may
be identified by the Career Executive Service Board, all of whom are
appointed by the President;

4. Career officers, other than those in the Career Executive Service,

who are appointed by the President, such as the Foreign Service
Officers in the Department of Foreign Affairs;

5. Commissioned officers and enlisted men of the Armed Forces

which shall maintain a separate merit system;

6. Personnel of government-owned or controlled corporations,

whether performing governmental or proprietary functions, who do
not fall under the non-career service; and

7. Permanent laborers, whether skilled, semi-skilled, or unskilled.

Section 6. The Non-Career Service shall be characterized by (1)

entrance on bases other than those of the usual tests of merit and
fitness utilized for the career service; and (2) tenure which is limited
to a period specified by law, or which is coterminous with that of the
appointing authority or subject to his pleasure, or which is limited to
the duration of a particular project for which purpose employment was
made.

The Non-Career Service shall include:

1. Elective officials and their personal or confidential staff;

2. Department Heads and other officials of Cabinet rank who hold

positions at the pleasure of the President and their personal or
confidential staff(s);

3. Chairman and members of commissions and boards with fixed

terms of office and their personal or confidential staff;

4. Contractual personnel or those whose employment in the

government is in accordance with a special contract to undertake a
specific work or job, requiring special or technical skills not available
in the employing agency, to be accomplished within a specific period,
which in no case shall exceed one year, and performs or
accomplishes the specific work or job, under his own responsibility
with a minimum of direction and supervision from the hiring agency;
and

5. Emergency and seasonal personnel.

Section 7. Classes of Positions in the Career Service.

(a) Classes of positions in the career service appointment to which

requires examinations shall be grouped into three major level as
follows:

1. The first level shall include clerical, trades, crafts, and custodial
service positions which involve non-professional or subprofessional
work in a non-supervisory or supervisory capacity requiring less than
four years of collegiate studies;

2. The second level shall include professional, technical, and

scientific positions which involve professional, technical, or scientific
work in a non-supervisory or supervisory capacity requiring at least
four years of college work up to Division Chief level; and

3. The third level shall cover positions in the Career Executive

Service.
(b) Except as herein otherwise provided, entrance to the first two
levels shall be through competitive examinations, which shall be open
to those inside and outside the service who meet the minimum
qualification requirements. Entrance to a higher level does not require
previous qualification in the lower level. Entrance to the third level
shall be prescribed by the Career Executive Service Board.

(c) Within the same level, no civil service examination shall be

required for promotion to a higher position in one or more related
occupational groups. A candidate for promotion should, however,
have previously passed the examination for that level.

ARTICLE V
ORGANIZATION AND FUNCTIONS

Section 8. Composition of the Civil Service Commission.

(a) An independent Civil Service Commission, hereinafter referred to

as the Commission is hereby established composed of a Chairman
and two Commissioners, who shall be responsible for the effective
discharge of the functions of the Commission. They shall be
appointed by the President for a term of seven years without
reappointment. Of the Commissioners first appointed, one shall hold
office for seven years, another for five years, and the third for three
years: Provided, That appointment to any vacancy shall be only for
the unexpired portion of the term of the predecessors.

(b) To be eligible for appointment as Chairman or Commissioners, a

person should be a natural born citizen of the Philippines, at least
thirty-five years of age at the time of appointment, a holder of a
college degree and must not have been a candidate for any elective
position in the election immediately preceding his appointment.

(c) The Chairman and each Commissioner shall receive an annual

compensation of sixty thousand pesos and fifty thousand pesos
which shall not be decreased during their continuance in office:
Provided, That no member of the Commission shall, during his tenure
in office, engage in the practice of any profession or in the
management of any business, or be financially interested directly or
indirectly in any contract with, or in any franchise or privilege granted
by, the Government, or any subdivision, agency or instrumentality
thereof, including government-owned or controlled corporations.

Section 9. Powers and Functions of the Commission. The

Commission shall administer the Civil Service and shall have the
following powers and functions:

(a) Administer and enforce the constitutional and statutory provisions

on the merit system;

(b) Prescribe, amend and enforce suitable rules and regulations for
carrying into effect the provisions of this Decree. These rules and
regulations shall become effective thirty days after publication in the
Official Gazette or in any newspaper of general circulation;

(c) Promulgate policies, standards, and guidelines for the Civil

Service and adopt plans and programs to promote economical,
efficient, and effective personnel administration in the government;
and prescribe all forms for publications, examinations, appointments,
reports, records, and such other forms as may be required under this
Decree;

(d) Advise the President on all matters involving personnel

management in the government service and assist in the
improvement of personnel units and programs in the department and
agencies;

(e) Appoint its personnel and exercise overall supervision and control
over the activities of the Commission;

(f) Supervise and coordinate the conduct of civil service examinations

being administered by the departments concerned as provided for
under Paragraph 5, Article III, Chapter II, Part III of the Integrated
Reorganization Plan;

(g) Provide leadership and assistance in formulating, administering,

and evaluating programs relative to the development and retention of
a competent and efficient work force in the public service;
(h) Approve all appointments, whether original or promotional, to
positions in the civil service, except those of presidential appointees,
members of the Armed Forces of the Philippines, police forces,
firemen, and jailguards, and disapprove those where the appointees
do not possess the appropriate eligibility or required qualifications. An
appointment shall take effect immediately upon issue by the
appointing authority if the appointee assumes his duties immediately
and shall remain effective until it is disapproved by the Commission, if
this should take place, without prejudice to the liability of the
appointing authority for appointments issued in violation of existing
laws or rules: Provided, finally, That the Commission shall keep a
record of appointments of all officers and employees in the civil
service. All appointments requiring the approval of the Commission
as herein provided, shall be submitted to it by the appointing authority
within thirty days from issuance, otherwise, the appointment becomes
ineffective thirty days thereafter.

(i) Inspect and audit periodically the personnel work programs of the
different departments, bureaus, offices, agencies and other
instrumentalities of the government, including government-owned or
controlled corporations, conduct periodic review of decisions and
actions of offices or officials to whom authority has been delegated by
the Commission as well as the conduct of the officials and employees
in these offices and apply appropriate sanctions whenever necessary;

(j) Hear and decide administrative disciplinary cases instituted directly

with it in accordance with Section 37 or brought to it on appeal;

(k) Issue subpoena and subpoena duces tecum or require the

production of books and papers pertinent to investigations and
inquiries to be made by the Commission in accordance with its
authority conferred by the Constitution, this Decree, and other laws,
decrees, or letters of instructions issued by the President; summon
witnesses to appear at such investigation or inquiries;

(l) Submit to the President an annual report which shall contain an

adequate evaluation of the progress of the merit system and the
problems encountered in its implementation; and
(m) Perform such other functions as properly belong to a central
personnel agency.

Section 10. Duties and Responsibilities of the Chairman.

(a) Subject to policies and resolution adopted by the Commission, the

Chairman shall:

1. Direct the operations of the Commission including those pertaining

to its internal administration;

2. Establish standard operating procedures for the effective

operations for the Commission;

3. Transmit to the President, rules, regulations, and other guidelines

adopted by the Commission which require Presidential attention
including annual and other periodic reports as may be necessary;

4. Issue appointments to, and enforce decision on administrative

discipline involving officials and employees of the Commission;

5. Delegate authority for the performance of any function to officials of

the Commission;

6. Submit the annual and supplemental budgets of the Commission;

and

7. Perform such other functions as may be provided by law.

(b) In his capacity as member of the Career Executive Service Board,

he shall present appropriate viewpoints in the deliberations of the
Board that would seek to insure the policies and programs of the
Board are properly harmonized with the overall policies and programs
of personnel management in the government.

(c) There shall be an Executive Director in the Office of the Chairman

who shall be responsible for the effective implementation of the
policies, rules and standards promulgated by the Commission, to
coordinate and supervise the activities of the different offices in the
Commission including those of the regional offices; to report to the
Chairman the operation of such functions as may be assigned to him
by the Chairman.

Section 11. Duties and Responsibilities of the Other Members of the

Commission. Jointly with the Chairman, the two Commissioners shall
be responsible for the effective exercise of the rule-making and
adjudicative functions of the Commission. In case of the absence of
the Chairman, owing to illness or other cause, the senior member
shall temporarily perform the functions of the Chairman.

Section 12. Offices in the Commission. The Commission shall carry

out its functions through the following Offices and Service: (1) Office
of Recruitment, Examination and Selection, (2) Office of Career and
Employee Development, (3) Office of Personnel Planning and
Program Evaluation, (4) Office of Personnel Relations, (5) Office of
Legal Affairs, and (6) Administrative Service. It shall keep and
maintain such regional offices as the exigencies of the service so
require in accordance with the pertinent provisions of Chapter III, Part
II of the Integrated Reorganization Plan, or as may be provided by
law.

1. The Office of Recruitment, Examination and Selection, headed by

a Director, shall provide leadership and assistance in developing and
implementing the overall Commission program relating to recruitment,
examination and selections.

2. The Office of Career and Employee Development, headed by a

Director, shall provide leadership and assistance to line agencies in
formulating, administering, and evaluating programs relating to the
development and retention of skilled and efficient work force in the
public service, develop policies, standards and procedures on the
establishment and administration of departmental and agency career
and personnel development plans which shall include provisions on
merit promotions, performance evaluation, in-service training, job
rotation, suggestions and incentive award system; integrate such
plans into a national plan; and monitor and evaluate progress in
connection therewith.

3. The Office of Personnel Planning and Program Evaluation, headed

by a Director, shall provide the Commission with economical,
efficient, and effective service relating to policy development,
program planning, research and statistics, budgetary and
management services; and shall conduct periodic evaluation of
personnel management programs and performance of the different
departments and agencies of the national government, including
government-owned or controlled corporations.

4. The Office of Personnel Relations, headed by a Director, shall

provide leadership and assistance in developing employee relations
programs in the different departments and agencies, including the
establishment of employee organizations and the coordination of their
activities.

5. The Office of Legal Affairs, headed by a Director, shall assist the

Commission on all matters relating to administrative discipline and in
its quasi-judicial and rule-making functions and the prosecution of
violation of Civil Service Law and Rules and laws affecting the Civil
Service and such other functions as may be assigned by the
Chairman.

6. The Administrative Service, headed by a Director, shall provide the

Commission with economical, efficient, and effective services relating
to personnel, records, supplies, equipment, collection,
disbursements, accounting, and data processing and custodial
services.

Section 13. Regional Offices. Each regional office of the Commission

shall exercise the following authority:

(a) Enforce Civil Service Law and Rules in connection with personnel
actions of national and local government agencies within the region,
and the conduct of public officers and employees;

(b) Conduct recruitment and examination for government-wide

positions in the region;

(c) Provide technical advice and assistance to public agencies within

the region regarding personnel administration; and
(d) Perform such other functions as may be assigned to it by the
Commission.

Section 14. Authority to Reorganize. In order to carry out the powers

and functions set forth in this Decree, the Commission is hereby
authorized to reorganize the internal structure of the Commission
subject to the approval of the President: Provided, however, That this
authority shall not extend beyond December 31, 1976.

ARTICLE VI
RESPONSIBILITIES OF PUBLIC OFFICERS AND EMPLOYEES

Section 15. Duties of Public Officers. Public office is a public trust.

Public officers and employees shall serve with the highest degree of
responsibility, integrity, loyalty, and efficiency, and shall remain
accountable to the people.

ARTICLE VII
INTERDEPARTMENT RELATIONS

Section 16. Civil Service Assistance to Departments and Agencies.

Each head of department, office, agency, government-owned or
controlled corporation and local government shall be responsible for
personnel administration in his office which shall be in accordance
with the provisions relating to civil service embodied in the
Constitution, this Decree and the rules, principles, standards,
guidelines and regulations established by the Commission. Whenever
it deems it in the interest of the public service, the Civil Service
Commission shall organize in each department, office, agency,
government-owned or controlled corporation, and provincial and city
government a Civil Service Staff which shall be headed by an officer
of the Commission. The necessary staff personnel and office facilities
and equipment shall be provided by the department, government-
owned or controlled corporation or local government where the staff
is established but the Commission may augment these with its own.
This shall serve as the principal liaison between the Civil Service and
the Department concerned and shall perform the following specific
functions and those functions which may hereafter be assigned to it
by the Commission:
1. Provide technical assistance in all aspects of personnel
management;

2. Monitor and audit periodically the personnel practices and

performance of the Department or agency concerned as well as
those of public officers and employees thereat;

3. Determine agency compliance with Civil Service Law and rules,

and

4. In the performance of these functions, the staff shall welcome and

receive from public any suggestions, observations and complaints
pertaining to the conduct of public officers and employees.

In the performance of their functions, the units so organized shall

avail of the technical assistance and guidelines of the Civil Service
Commission.

Section 17. Council of Personnel Offices. There is hereby created a

Council of Personnel Officers to be composed of Chief personnel
officers of the different executive departments and of agencies with
the category of department that the Chairman of the Commission
shall select for membership. Except for its Executive Officer who shall
be designated by the Chairman from among the appropriate officials
in the Civil Service Commission, the Council is authorized to elect
such other officer from among its members and to fix its own rules or
procedures concerning attendance at meetings, approval of policy
declaration, and other business matters. Provisions for necessary
facilities and clerical assistance for the Council shall be made in the
annual budget of the Commission.

The Council shall have the following functions:

(a) Upon request of the Head of Department or the Commission, to

offer advice in developing constructive policies, standards,
procedures, and programs as well as on matters relating to the
improvement of personnel methods and to the solution of personnel
problems confronting the various departments and agencies of the
government;
(b) To promote among the departments and agencies, through study
and discussion, uniform and consistent interpretation and application
of personnel policies; and

(c) To serve as a clearing house of information and to stimulate the

use of methods of personnel management that will contribute most to
good government.

Section 18. Inspection and Audit. The Commission, through its

designated representatives, shall conduct a periodic inspection and
audit of the personnel management program of each department,
agency, province or city, in order to: (a) determine compliance with
this Decree, rules and standards; (b) review discharge of delegated
authority; (c) make an adequate evaluation of the progress made and
problems encountered in the conduct of the merit system in the
national and local governments including government-owned or
controlled corporations; (d) give advice and provide assistance in
developing constructive policies, standards and procedures, and (e)
stimulate improvement in all areas of personnel management.

Periodic inspection and audit will include an appraisal of personnel

management operations and activities relative to: (a) formulation and
issuance of personnel policy; (b) recruitment and selection of
employees; (c) personnel action and employment status; (d) career
and employee development; (e) performance evaluation system; (f)
employee suggestions and incentive award; (g) employee relations
and services; (h) discipline; (i) personnel records and reporting; and
(j) program evaluation.

ARTICLE VIII
PERSONNEL POLICIES AND STANDARDS

Section 19. Recruitment and Selection of Employees.

1. Opportunity for government employment shall be open to all

qualified citizens and positive efforts shall be exerted to attract the
best qualified to enter the service. Employees shall be selected on
the basis of fitness to perform the duties and assume the
responsibilities of the positions.
2. When a vacancy occurs in a position in the first level of the Career
Service as defined in Section 7, the employees in the department
who occupy the next lower positions in the occupational group under
which the vacant position is classified, and in other functionally
related occupational groups and who are competent, qualified and
with the appropriate civil service eligibility shall be considered for
promotion.

3. When a vacancy occurs in a position in the second level of the

Career Service as defined in Section 7, the employees in the
government service who occupy the next lower positions in the
occupational group under which the vacant positions is classified and
in other functionally related occupational groups and who are
competent, qualified and with the appropriate civil service eligibility
shall be considered for promotion.

4. For purposes of this Section, each department or agency shall

evolve its own screening process, which may include tests of fitness,
in accordance with standards and guidelines set by the Commission.
Promotion boards shall be formed to formulate criteria for evaluation,
conduct tests and/or interviews, and make systematic assessment of
training and experience.

5. If the vacancy is not filled by promotion as provided herein the

same shall be filled by transfer of present employees in the
government service, by reinstatement, by re-employment of persons
separates through reduction in force, or by appointment of persons
with the civil service eligibility appropriate to the positions.

6. A qualified next-in-rank employee shall have the right to appeal

initially to the department head and finally to the Office of the
President an appointment made (1) in favor of another next-in-rank
employee who is not qualified, or (2) in favor of one who is not next-
in-rank, or (3) in favor of one who is appointed by transfer and not
next-in-rank, or by reinstatement, or by original appointment if the
employee making the appeal is not satisfied with the written special
reason or reasons given by the appointing authority for such
appointment: Provided, That final appeal shall be to the department
head concerned if the appointment is issued to a qualified next-in-
rank employee. Before deciding a contested appointment, the Office
of the President shall consult the Civil Service Commission. For
purposes of this Section, "qualified next-in-rank" refers to an
employee appointed on a permanent basis to a position previously
determined to be next-in-rank to the vacancy proposed to be filled
and who meets the requisites for appointment thereto as previously
determined by the appointing authority and approved by the
Commission.

7. Qualification in an appropriate examination shall be required for

appointment to positions in the first and second levels in the career
service in accordance with the Civil Service rules, except as
otherwise provided in this Decree: Provided, That whenever there is a
civil service eligible actually available for appointment, no person who
is not such an eligible shall be appointed even in a temporary
capacity to any vacant position in the career service in the
government or in any government-owned or controlled corporation,
except when the immediate filling of the vacancy is urgently required
in the public interest, or when the vacancy is not permanent, in which
cases temporary appointments of non-eligibles may be made in the
absence of eligibles actually and immediately available.

8. The appropriate examinations herein referred to shall be those

given by the Commission and the different agencies: Provided,
however, That nothing herein shall affect those eligibles acquired
prior to the effectivity of this Civil Service Law: Provided, further, That
a person with a civil service eligibility acquired by successfully
passing an examination shall be qualified for a position requiring a
lower eligibility if he possesses the other requirements for
appointment to such position.

9. Those who acquired civil service eligibility after the passage of the
Integrated Reorganization Plan by virtue of having passed civil
service examinations or their equivalents may avail of said eligibilities
within a period not exceeding five years.

Section 20. Qualification Standards.

(a) A qualification standard expresses the minimum requirements for

a class of positions in terms of education, training and experience,
civil service eligibility, physical fitness, and other qualities required for
successful performance. The degree of qualifications of an officer or
employee shall be determined by the appointing authority on the
basis of the qualifications standard for the particular position.

Qualification standards shall be used as basis for civil service

examinations for positions in the career service, as guides in
appointment and other personnel actions, in the adjudication of
protested appointments, in determining training needs, and as aid in
the inspection and audit of the agencies personnel work programs.

It shall be administered in such manner as to continually provide

incentives to officers and employees towards professional growth and
foster the career system in the government service.

(b) The establishment, administration and maintenance of

qualification standards shall be the responsibility of the department or
agency, with the assistance and approval of the Civil Service
Commission and in consultation with the Wage and Position
Classification Office.

Section 21. Release of Examination Results. The results of any

particular civil service examination held in a number of places on the
same date shall be released simultaneously.

Section 22. Register of Eligibles. The names of the competitors who

pass an examination shall be entered in a register of eligibles
arranged in the order of their general ratings and containing such
information as the Commission may deem necessary.

Section 23. Cultural Communities. In line with the national policy to

facilitate the integration of the members of cultural communities and
accelerate to the development of the areas occupied by them, the
Commission shall give special civil service examinations to qualify
them for appointment in the civil service.

Section 24. Personnel Actions. All appointments in the career service

shall be made only according to merit and fitness, to be determined
as far as practicable by competitive examinations. A non-eligible shall
not be appointed to any position in the civil service whenever there is
a civil service eligible actually available for and ready to accept
appointment.

As used in this Decree, any action denoting the movement or

progress of personnel in the civil service shall be known as personnel
action. Such action shall include appointment through certification,
promotion, transfer, reinstatement, re-employment, detail,
reassignment, demotion, and separation. All personnel actions shall
be in accordance with such rules, standards, and regulations as may
be promulgated by the Commission.

(a) Appointment through certification. An appointment through

certification to a position in the civil service, except as herein
otherwise provided, shall be issued to a person who has been
selected from a list of qualified persons certified by the Commission
from an appropriate register of eligibles, and who meets all the other
requirements of the position.

All such persons must serve a probationary period of six months

following their original appointment and shall undergo a thorough
character investigation in order to acquire permanent civil service
status. A probationer may be dropped from the service for
unsatisfactory conduct or want of capacity any time before the
expiration of the probationary period: Provided, That such action is
appealable to the Commission.

(b) Promotion. A promotion is a movement from one position to

another with an increase in duties and responsibilities as authorized
by law and usually accompanied by an increase in pay. The
movement may be from one department or agency to another, or
from one organizational unit to another in the same department or
agency.

(c) Transfer. A transfer is a movement from one position to another

which is of equivalent rank, level, or salary without break in service
involving the issuance of an appointment.

It shall be considered disciplinary when made in the interest of public

service, in which case, the employee concerned shall be informed of
the reasons therefore. If the employee believes that there is no
justification for the transfer, he may appeal his case to the
Commission.

The transfer may be from one department or agency to another or

from one organizational unit to another in the same department or
agency: Provided, however, That any movement from the non-career
service to the career service shall not be considered a transfer.

(d) Reinstatement. Any person who has been permanently appointed

to a position in the career service and who has, through no
delinquency or misconduct, been separated therefrom, may be
reinstated to a position in the same level for which he is qualified.

(e) Re-employment. Names of persons who have been appointed

permanently to positions in the career service and who have been
separated as a result of reduction in force and/or reorganization, shall
be entered in a list from which selection for reemployment shall be
made.

(f) Detail. A detail is the movement on an employee from one agency

to another without the issuance of an appointment and shall be
allowed, only for a limited period in the case of employees occupying
professional, technical and scientific positions. If the employee
believes that there is no justification for the detail, he may appeal his
case to the Commission. Pending appeal, the decision to detail the
employee shall be executory unless otherwise ordered by the
Commission.

(g) Reassignment. An employee may be reassigned from one

organizational unit to another in the same agency: Provided, That
such reassignment shall not involve a reduction in rank, status or
salary.

Section 25. Employment Status. Appointment in the career service

shall be permanent or temporary.

(a) Permanent status. A permanent appointment shall be issued to a

person who meets all the requirements for the positions to which he
is being appointed, including the appropriate eligibility prescribed, in
accordance with the provisions of law, rules and standards
promulgated in pursuance thereof.

(b) Temporary appointment. In the absence of appropriate eligibles

and it becomes necessary in the public interest to fill a vacancy, a
temporary appointment shall be issued to a person who meets all the
requirements for the positions to which he is being appointed except
the appropriate civil service eligibility: Provided, That such temporary
appointment shall not exceed twelve months, but the appointee may
be replaced sooner if a qualified civil service eligible becomes
available.

Section 26. Salary Increase or Adjustment. Adjustments in salaries as

a result of increase in pay levels or upgrading of positions which do
not involve a change in qualification requirements shall not require a
new appointments except that copies of the salary adjustment notices
shall be submitted to the Commission for record purposes.

Section 27. Reduction in Force. Whenever it becomes necessary

because of lack of work or funds or due to a change in the scope or
nature of an agency's program, or as a result of reorganization, to
reduce the staff of any department or agency, those in the same
group or class of positions in one or more agencies within the
particular department or agency wherein the reduction is to be
effected, shall be reasonably compared in terms of relative fitness,
efficiency and length of service, and those found to be least qualified
for the remaining positions shall be laid off.

Section 28. Career and Personnel Development. The Development

and retention of a competent and efficient work force in the public
service is a primary concern of government. It shall be the policy of
the government that a continuing program of career and personnel
development be established for all government employees at all
levels. An integrated national plan for career and personnel
development shall serve as the basis for all career and personnel
development activities in the government.

Section 29. Career and Personnel Development Plans. Each

department or agency shall prepare a career and personnel
development plan which shall be integrated into a national plan by the
Commission. Such career and personnel development plans which
shall include provisions on merit promotions, performance evaluation,
in-service training, including overseas and local scholarships and
training grants, job rotation, suggestions and incentive award
systems, and such other provisions for employees' health, welfare,
counselling, recreation and similar services.

Section 30. Merit Promotion Plans. Each department or agency shall

establish merit promotion plans which shall be administered in
accordance with the provisions of this Decree and the rules,
regulations, and standards to be promulgated by the Commission.
Such plans shall include provisions for a definite screening process,
which may include tests of fitness, in accordance with standards and
guidelines set by the Commission. Promotion Boards may be
organized subject to criteria drawn by the Commission.

Section 31. Performance Evaluation System. There shall be

established a performance evaluation system, which shall be
administered in accordance with rules, regulations and standards
promulgated by the Commission for all officers and employees in the
career service. Such performance evaluation system shall be
administered in such manner as to continually foster the improvement
of individual employee efficiency and organizational effectiveness.

Each department or agency may, after consultation with the

Commission, establish and use one or more performance evaluation
plans appropriate to the various groups of positions in the department
or agency concerned. No performance evaluation shall be given, or
used as a basis for personnel action, except under an approved
performance evaluation plan: Provided, That each employee shall be
informed periodically by his supervisor of his performance evaluation.

Section 32. Responsibility for Training. The Commission shall be

responsible for the coordination and integration of a continuing
program of personnel development for all government personnel in
the first and second levels.

Central staff agencies and specialized institutes shall conduct

continuing centralized training for staff specialists from the different
agencies. However, in those cases where there is sufficient number
of participants to warrant training at department or agency or local
government level, such central staff agencies and specialized
institute shall render the necessary assistance, and consultative
services.

To avoid duplication, of effort and overlapping of training functions,

the following functional responsibilities are assigned:

(a) Public and private colleges and universities and similar institutions
shall be encouraged to organize and carry out continuing programs of
executive development.

(b) The Commission, the Commission on Audit, the Budget

Commission, the General Services Administration, and other central
staff agencies shall conduct centralized training and assist in the
training program of the Departments or agencies along their
respective functional areas of specialization.

(c) In coordination with the Commission, the Department of Local

Government and Community Development shall undertake local
government training programs.

(d) In coordination with the Commission, each department or agency,

province or city shall establish, maintain and promote a systematic
plan of action for personnel training at all levels in accordance with
standards laid down by the Commission. It shall maintain appropriate
training staffs and make full use of available training facilities.

Whenever it deems it necessary, the Commission shall take the

initiative in undertaking programs for personnel development.

Section 33. Employee Suggestions and Incentive Award System.

There shall be established a government-wide employee suggestions
and incentive awards system which shall be administered under such
rules, regulations, and standards as may be promulgated by the
Commission.

In accordance with rules, regulations, and standards promulgated by

the Commission, the President or the head of each department or
agency is authorized to incur whatever necessary expenses involved
in the honorary recognition of subordinate officers and employees of
the government who by their suggestions, inventions, superior
accomplishment, and other personal efforts contribute to the
efficiency, economy, or other improvement of government operations,
or who perform such other extraordinary acts or services in the public
interest in connection with, or in relation to, their officials employment.

Section 34. Personnel Relations.

(a) It shall be the concern of the Commission to provide leadership

and assistance in developing employee relations programs in the
departments or agencies.

(b) Every head of department or agency shall take all proper steps
toward the creation of an atmosphere conducive to good supervisor-
employee relations and the improvement of employee morale.

Section 35. Complaints and Grievances. Employees shall have the

right to present their complaints or grievances to management and
have them adjudicated as expeditiously as possible in the best
interest of the agency, the government as a whole, and the employee
concerned. Such complaint or grievances shall be resolved at the
lowest possible level in the department or agency, as the case may,
and the employee shall have the right to appeal such decision to
higher authorities.

Each department or agency shall promulgate rules and regulations

governing expeditious, fair, and equitable adjustment of employees'
complaints or grievances in accordance with the policies enunciated
by the Commission.

ARTICLE IX
DISCIPLINE

Section 36. Discipline: General Provisions.

(a) No officer or employee in the Civil Service shall be suspended or

dismissed except for cause as provided by law and after due process.

(b) The following shall be grounds for disciplinary action:

1. Dishonesty;

2. Oppression;

3. Neglect of duty;

4. Misconduct;

5. Disgraceful and immoral conduct;

6. Being notoriously undesirable;

7. Discourtesy in the course of official duties;

8. Inefficiency and incompetence in the performance of official duties;

9. Receiving for personal use of a fee, gift or other valuable thing in

the course of official duties or in connection therewith when such fee,
gift, or other valuable thing is given by any person in the hope or
expectation of receiving a favor or better treatment than that
accorded other persons, or committing acts punishable under the
anti-graft laws;

10. Conviction of a crime involving moral turpitude;

11. Improper or unauthorized solicitation of contributions from

subordinate employees and by teachers or school officials from
school children;

12. Violation of existing Civil Service Law and rules or reasonable

office regulations;

13. Falsification of official document;

14. Frequent unauthorized absences or tardiness in reporting for

duty, loafing or frequent unauthorized absences from duty during
regular office hours;

15. Habitual drunkenness;

16. Gambling prohibited by law;

17. Refusal to perform official duty or render overtime service;

18. Disgraceful, immoral or dishonest conduct prior to entering the

service;

19. Physical or mental incapacity or disability due to immoral or

vicious habits;

20. Borrowing money by superior officers from subordinates or

lending by subordinates to superior officers;

21. Lending money at usurious rates of interest;

22. Willful failure to pay just debts or willful failure to pay taxes due to
the government;

23. Contracting loans of money or other property from persons with

whom the office of the employee concerned has business relations;

24. Pursuit of private business, vocation or profession without the

permission required by Civil Service rules and regulations;

25. Insubordination;

26. Engaging directly or indirectly in partisan political activities by one

holding non-political office;

27. Conduct prejudicial to the best interest of the service;

28. Lobbying for personal interest or gain in legislative halls and

offices without authority;

29. Promoting the sale of tickets in behalf of private enterprises that

are not intended for charitable or public welfare purposes and even in
the latter cases if there is no prior authority;

30. Nepotism as defined in Section 49 of this Decree.

(c) Except when initiated by the disciplining authority, no complaint
against a civil service official or employee shall be given due course
unless the same is in writing and subscribed and sworn to by the
complainant.

(d) In meting out punishment, the same penalties shall be imposed

for similar offenses and only one penalty shall be imposed in each
case. The disciplining authority may impose the penalty of removal
from the service, transfer, demotion in rank, suspension for not more
than one year without pay, fine in an amount not exceeding six
months' salary, or reprimand.

Section 37. Disciplinary Jurisdiction.

(a) The Commission shall decide upon appeal all administrative

disciplinary cases involving the imposition of a penalty of suspension
for more than thirty days, or fine in an amount exceeding thirty days'
salary, demotion in rank or salary or transfer, removal or dismissal
from Office. A complaint may be filed directly with the Commission by
a private citizen against a government official or employee in which
case it may hear and decide the case or it may deputize any
department or agency or official or group of officials to conduct the
investigation. The results of the investigation shall be submitted to the
Commission with recommendation as to the penalty to be imposed or
other action to be taken.

(b) The heads of departments, agencies and instrumentalities,

provinces, cities and municipalities shall have jurisdiction to
investigate and decide matters involving disciplinary action against
officers and employees under their jurisdiction. Their decisions shall
be final in case the penalty imposed is suspension for not more than
thirty days or fine in an amount not exceeding thirty days' salary. In
case the decision rendered by a bureau or office head is appealable
to the Commission, the same may be initially appealed to the
department and finally to the Commission and pending appeal, the
same shall be executory except when the penalty is removal, in which
case the same shall be executory only after confirmation by the
department head.
(c) An investigation may be entrusted to regional director or similar
officials who shall make the necessary report and recommendation to
the chief of bureau or office or department within the period specified
in Paragraph d of the following Section.

(d) An appeal shall not stop the decision from being executory, and in
case the penalty is suspension or removal, the respondent shall be
considered as having been under the preventive suspension during
the pendency of the appeal in the event he wins an appeal.

Section 38. Procedure in Administrative Cases Against Non-

Presidential Appointees.

(a) Administrative proceedings may be commenced against a

subordinate officer or employee by the head of department or office
of equivalent rank, or head of local government, or chiefs or
agencies, regional directors, or upon sworn, written complaint of any
other persons.

(b) In the case of a complaint filed by any other persons, the

complainant shall submit sworn statements covering his testimony
and those of his witnesses together with his documentary evidence. If
on the basis of such papers a prima facie case is found not to exist,
the disciplining authority shall dismiss the case. If a prima facie case
exists, he shall notify the respondent in writing, of the charges against
the latter, to which shall be attached copies of the complaint, sworn
statements and other documents submitted, and the respondent shall
be allowed not less than seventy-two hours after receipt of the
complaint to answer the charges in writing under oath, together with
supporting sworn statements and documents, in which he shall
indicate whether or not he elects a formal investigation if his answer
is not considered satisfactory. If the answer is found satisfactory, the
disciplining authority shall dismiss the case.

(c) Although a respondent does not request a formal investigation,

one shall nevertheless be conducted when from the allegations of the
complaint and the answer of the respondent, including the supporting
documents, the merits of the case cannot be decided judiciously
without conducting such an investigation.
(d) The investigation shall be held not earlier than five days nor later
than ten days from the date of receipt of respondent's answer by the
disciplining authority, and shall be finished within thirty days from the
filling of the charges, unless the period is extended by the
Commission in meritorious cases. The decision shall be rendered by
the disciplining authority within thirty days from the termination of the
investigation or submission of the report of the investigator, which
report shall be submitted within fifteen days from the conclusion of
the investigation.

(e) The direct evidence for the complainant and the respondent shall
consist of the sworn statement and documents submitted in support
of the complaint or answer, as the case may be, without prejudice to
the presentation of additional evidence deemed necessary but was
unavailable at the time of the filing of the complaint or answer, upon
which the cross-examination, by respondent and the complainant,
respectively, shall be based. Following cross-examination, there may
be redirect and recross-examination.

(f) Either party may avail himself of the services of counsel and may
require the attendance of witnesses and the production of
documentary evidence in his favor through the compulsory process of
subpoena or subpoena duces tecum.

(g) The investigation shall be conducted only for the purpose of

ascertaining the truth and without necessarily adhering to technical
rules applicable in judicial proceedings. It shall be conducted by the
disciplining authority concerned or his authorized representative.

The phrase "any other party" shall be understood to be a complainant

other than those referred to in subsection (a) hereof.

Section 39. Appeals. Appeals, where allowable, shall be made by the

party adversely affected by the decision within fifteen days from
receipt of the decision unless a petition for reconsideration is
seasonably filed, which petition shall be decided within fifteen days.
Notice of the appeal shall be filed with the disciplining office, which
shall forward the records of the case, together with the notice of
appeal, to the appellate authority within fifteen days from filing of the
notice of appeal, with its comment, if any. The notice of appeal shall
specifically state the date of the decision appealed from and the date
of receipt thereof. It shall also specifically set forth clearly the grounds
relied upon for excepting from the decision.

(b) A petition for reconsideration shall be based only on any of the

following grounds: (1) new evidence has been discovered which
materially affects the decision rendered; (2) the decision is not
supported by the evidence on record; or (3) errors of law or
irregularities have been committed prejudicial to the interest of the
respondent: Provided, That only one petition for reconsideration shall
be entertained.

Section 40. Summary Proceedings. No formal investigation is

necessary and the respondent may be immediately removed or
dismissed if any of the following circumstances is present:

(a) When the charge is serious and the evidence of guilt is strong;

(b) When the respondent is a recidivist or has been repeatedly

charged and there is reasonable ground to believe that he is guilty of
the present charge.

(c) When the respondent is notoriously undesirable.

Resort to summary proceedings by disciplining authority shall be

done with utmost objectivity and impartiality to the end that no
injustice is committed: Provided, That removal or dismissal except
those by the President, himself, or upon his order, may be appealed
to the Commission.

Section 41. Preventive Suspension. The proper disciplining authority

may preventively suspend any subordinate officer or employee under
his authority pending an investigation, in the charge against such
officer or employee involves dishonesty, oppression or grave
misconduct, or neglect in the performance of duty, or if there are
reasons to believe that the respondent is guilty of charges which
would warrant his removal from the service.

Section 42. Lifting of Preventive Suspension Pending Administrative

Investigation. When the administrative case against the officer of
employee under preventive suspension is not finally decided by the
disciplining authority within the period of ninety (90) days after the
date of suspension of the respondent who is not a presidential
appointee, the respondent shall be automatically reinstated in the
service: Provided, That when the delay in the disposition of the case
is due to the fault, negligence or petition of the respondent, the period
of delay shall not be counted in computing the period of suspension
herein provided.

Section 43. Removal of Administrative Penalties or Disabilities. In

meritorious cases and upon recommendation in the Commission, the
President may commute or remove administrative penalties or
disabilities imposed upon officers or employees in disciplinary cases,
subject to such terms and conditions as he may impose in the interest
of the service.

ARTICLE X
PROHIBITIONS

Section 44. Limitation on Appointment.

1. No elective official shall be eligible for appointment to any office or

position during his term of office.

2. No candidate who lost in an election shall be eligible for

appointment to any office in the government, or in any government-
owned or controlled corporation within one year following such
election.

Section 45. Political Activity. No officer or employee in the Civil

Service including members of the Armed Forces, shall engage
directly or indirectly in any partisan political activity or take part in any
election except to vote nor shall he use his official authority or
influence to coerce the political activity of any other person or body.
Nothing herein provided shall be understood to prevent any officer or
employee from expressing his views on current political problems or
issues, or from mentioning the names of candidates for public office
whom he supports: Provided, That public officers and employees
holding political offices may take part in political and electoral
activities but it shall be unlawful for them to solicit contributions from
their subordinates or subject them to any of the acts involving
subordinates prohibited in the Election Code.

Section 46. Additional or Double Compensation. No elective or

appointive public officer or employee shall receive additional or
double compensation unless specifically authorized by law nor accept
without the consent of the President, any present, emolument, office,
or title of any kind from any foreign state.

Section 47. Limitation on Employment of Laborers. Laborers, whether

skilled, semi-skilled or unskilled, shall not be assigned to perform
clerical duties.

Section 48. Prohibition on Detail or Reassignment. No detail or

reassignment whatever shall be made within three (3) months before
any election.

Section 49. Nepotism.

(a) All appointments in the national, provincial, city and municipal

governments or in any branch or instrumentality thereof, including
government-owned or controlled corporations, made in favor of a
relative of the appointing or recommending authority, or of the chief of
the bureau or office, or of the persons exercising immediate
supervision over him, are hereby prohibited.

As used in this Section, the word "relative" and members of the family
referred to are those related within the third degree either of
consanguinity or of affinity.

(b) The following are exempted from the operation of the rules on
nepotism: (1) persons employed in a confidential capacity, (2)
teachers, (3) physicians, and (4) members of the Armed Forces of the
Philippines: Provided, however, That in each particular instance full
report of such appointment shall be made to the Commission.

The restriction mentioned in subsection (a) shall not be applicable to

the case of a member of any family who, after his or her appointment
to any position in an office or bureau, contracts marriage with
someone in the same office or bureau, in which event the
employment or retention therein of both husband and wife may be
allowed.

(c) In order to give immediate effect to these provisions, cases of

previous appointments which are in contravention hereof shall be
corrected by transfer, and pending such transfer, no promotion or
salary increase shall be allowed in favor of the relative or relatives
who were appointed in violation of these provisions.

ARTICLE XI
MISCELLANEOUS PROVISIONS

Section 50. Examining Committee, Special Examiners and Special

Investigators. Subject to approval by the proper head of department
or agency, the Commission may select suitable persons in the
government service to act as members of examining committees,
special examiners or special investigators. Such person shall be
designated examiners or investigators of the Commission and shall
perform such duties as the Commission may require and in the
performance of such duties they shall be under its exclusive control.
Examining committees, special examiners or special investigators so
designated may be given allowances or per diems for their services,
to be paid out of the funds of, and at a rate to be determined by, the
Commission.

Section 51. Fees. The Commission shall collect and charge fees for
civil service examinations, certifications of civil service ratings,
service records, and other civil service matters, training courses,
seminars, workshops in personnel management and other civil
service matters.

For this purpose, the Commission shall prescribe standard and

reasonable rates for such examinations, certifications, training
courses, seminars, and workshops: Provided, That the fees so
collected in training courses, seminars and workshops, shall be used
exclusively for training activities of the Commission: Provided, further,
That no examination fees shall be collected in examinations given for
the selection of scholars.
Section 52. Authority of Officers to Administer Oaths, Take
Testimony, Prosecute and Defend Cases in Court. Members of the
Commission, chiefs of offices, and other officers and employees of
the Commission designated in writing by the Chairman may
administer such oaths as may be necessary in the transactions of
official business and administer oaths and take testimony in
connection with any authorized investigation. Attorneys of the
Commission may prosecute and defend cases in connection with the
functions of the Commission before any court or tribunal.

Section 53. Liability of Appointing Authority. No person employed in

the Civil Service in violation of the Civil Service Law and rules shall
be entitled to receive pay from the government; but the appointing
authority responsible for such unlawful employment shall be
personally liable for the pay that would have accrued had the
employment been unlawful, and the disbursing officials shall make
payment to the employee of such amount from salary of the officers
so liable.

Section 54. Liability of Disbursing Officers. Except as may otherwise

be provided by law, it shall be unlawful for a treasurer, or other fiscal
officer to draw or retain from the salary due an officer or employee
any amount for contribution or payment of obligations other than
those due the government or its instrumentalities.

Section 55. Penal Provision. Whoever makes any appointment or

employs any person in violation of any provision of this Decree or the
rules made thereunder or whoever commits fraud, deceit or
intentional misrepresentation of material facts concerning other civil
service matters, or whoever violates, refuses or neglects to comply
with any of such provisions or rules, shall upon conviction be
punished by a fine not exceeding one thousand pesos or by
imprisonment not exceeding six (6) months, or both such fine and
imprisonment in the discretion of the court.

ARTICLE XII
TRANSITORY PROVISIONS

Section 56. Government-owned or Controlled Corporations

Personnel. All permanent personnel of government-owned or
controlled corporations whose positions are now embraced in the civil
service shall continue in the service until they have been given a
chance to qualify in an appropriate examination, but in the meantime,
those who do not possess the appropriate civil service eligibility shall
not be promoted until they qualify in an appropriate civil service
examination. Services of temporary personnel may be terminated any
time.

Section 57. Authority to Use Appropriations. The Commission is

hereby authorized to use such sums appropriated in Presidential
Decree No. 733 and balances of existing certifications to accounts
payable including prior years which have not yet been reverted to the
unappropriated surplus, as are necessary to carry out the provisions
of this Decree. Henceforth, appropriations to cover the salaries of
officials and employees of the Civil Service Commission and its
maintenance and operational expenses shall be included in the
annual General Appropriations Decree.

Section 58. Vested Rights. Except as otherwise provided in this

Decree, rights vested or acquired under the provisions of the old Civil
Service Law, rules and regulations and any other Acts prior to the
effectivity of this Decree shall be respected.

Section 59. Repealing Clause. All laws, rules and regulations or parts
thereof inconsistent with the provisions of this Decree are hereby
repealed or modified accordingly.

Section 60. Separability of Provisions. If any part, section or provision

of this Decree shall be held invalid or unconstitutional, no other part,
section or provision thereof shall be affected thereby.

Section 61. Effectivity. This Decree shall form part of the law of the
land and shall take effect immediately.

DONE in the City of Manila, this 6th day of October, in the year of Our
Lord, nineteen hundred and seventy-five.
Notes:
Appendix C
BATAS PAMBANSA BLG. 881
OMNIBUS ELECTION CODE OF THE PHILIPPINES

ARTICLE I
GENERAL PROVISIONS

Section 1. Title. - This Act shall be known and cited as the "Omnibus
Election Code of the Philippines."
Section 2. Applicability. - This Code shall govern all election of public
officers and, to the extent appropriate, all referenda and plebiscites.
Section 3. Election and campaign periods. - Unless otherwise fixed in
special cases by the Commission on Elections, which hereinafter
shall be referred to as the Commission, the election period shall
commence ninety days before the day of the election and shall end
thirty days thereafter.
The period of campaign shall be as follows:
1. Presidential and Vice-Presidential Election - 90 days;
2. Election of Members of the Batasang Pambansa and Local
Election - 45 days; and
3. Barangay Election - 15 days.
The campaign periods shall not include the day before and the day of
the election.
However, in case of special elections under Article VIII, Section 5,
Subsection (2) of the Constitution, the campaign period shall be forty-
five days.

Section 4 Obligation to register and vote. - It shall be the obligation of

every citizen qualified to vote to register and cast his vote.
Section 5 Postponement of election. - When for any serious cause
such as violence, terrorism, loss or destruction of election
paraphernalia or records, force majeure, and other analogous causes
of such a nature that the holding of a free, orderly and honest election
should become impossible in any political subdivision, the
Commission, motu proprio or upon a verified petition by any
interested party, and after due notice and hearing, whereby all
interested parties are afforded equal opportunity to be heard, shall
postpone the election therein to a date which should be reasonably
close to the date of the election not held, suspended or which
resulted in a failure to elect but not later than thirty days after the
cessation of the cause for such postponement or suspension of the
election or failure to elect.

Section 6 Failure of election. - If, on account of force majeure,

violence, terrorism, fraud, or other analogous causes the election in
any polling place has not been held on the date fixed, or had been
suspended before the hour fixed by law for the closing of the voting,
or after the voting and during the preparation and the transmission of
the election returns or in the custody or canvass thereof, such
election results in a failure to elect, and in any of such cases the
failure or suspension of election would affect the result of the election,
the Commission shall, on the basis of a verified petition by any
interested party and after due notice and hearing, call for the holding
or continuation of the election not held, suspended or which resulted
in a failure to elect on a date reasonably close to the date of the
election not held, suspended or which resulted in a failure to elect but
not later than thirty days after the cessation of the cause of such
postponement or suspension of the election or failure to elect.

Section 7 Call of special election. -

(1) In case a vacancy arises in the Batasang Pambansa eighteen

months or more before a regular election, the Commission shall call a
special election to be held within sixty days after the vacancy occurs
to elect the Member to serve the unexpired term.

(2) In case of the dissolution of the Batasang Pambansa, the

President shall call an election which shall not be held earlier than
forty-five nor later than sixty days from the date of such dissolution.

The Commission shall send sufficient copies of its resolution for the
holding of the election to its provincial election supervisors and
election registrars for dissemination, who shall post copies thereof in
at least three conspicuous places preferably where public meetings
are held in each city or municipality affected.

Section 8 Election Code to be available in polling places. - A printed

copy of this Code in English or in the national language shall be
provided and be made available by the Commission in every polling
place, in order that it may be readily consulted by any person in need
thereof on the registration, revision and election days.

Section 9 Official mail and telegram relative to elections. - Papers

connected with the election and required by this Code to be sent by
public officers in the performance of their election duties shall be free
of postage and sent by registered special delivery mail. Telegrams of
the same nature shall likewise be transmitted free of charge by
government telecommunications and similar facilities.

It shall be the duty of the Postmaster General, the Director of the

Bureau of Telecommunications, and the managers of private
telecommunication companies to transmit immediately and in
preference to all other communications or telegrams messages
reporting election results and such other messages or
communications which the Commission may require or may be
necessary to ensure free, honest and orderly elections.

Section 10 Election expenses. - Except in barangay elections, such

expenses as may be necessary and reasonable in connection with
the elections, referenda, plebiscites and other similar exercises shall
be paid by the Commission. The Commission may direct that in the
provinces, cities, or municipalities, the election expenses chargeable
to the Commission be advanced by the province, city or municipality
concerned subject to reimbursement by the Commission upon
presentation of the proper bill.

Funds needed by the Commission to defray the expenses for the

holding of regular and special elections, referenda and plebiscites
shall be provided in the regular appropriations of the Commission
which, upon request, shall immediately be released to the
Commission. In case of deficiency, the amount so provided shall be
augmented from the special activities funds in the general
appropriations act and from those specifically appropriated for the
purpose in special laws.

Section 11 Failure to assume office. - The office of any official elected

who fails or refuses to take his oath of office within six months from
his proclamation shall be considered vacant, unless said failure is for
a cause or causes beyond his control.
Section 12 Disqualifications. - Any person who has been declared by
competent authority insane or incompetent, or has been sentenced
by final judgment for subversion, insurrection, rebellion or for any
offense for which he has been sentenced to a penalty of more than
eighteen months or for a crime involving moral turpitude, shall be
disqualified to be a candidate and to hold any office, unless he has
been given plenary pardon or granted amnesty.

This disqualifications to be a candidate herein provided shall be

deemed removed upon the declaration by competent authority that
said insanity or incompetence had been removed or after the
expiration of a period of five years from his service of sentence,
unless within the same period he again becomes disqualified.

ARTICLE II
ELECTION OF PRESIDENT AND VICE-PRESIDENT

Section 13. Regular election for President and Vice-President. - The

regular election for President and Vice-President of the Philippines
shall be held on the first Monday of May Nineteen hundred eighty
seven (1987) and on the same day every six years thereafter. The
President-elect and the Vice-President-elect shall assume office at
twelve o'clock noon on the thirtieth day of June next following the
election and shall end at noon of the same date, six years thereafter
when the term of his successor shall begin.

Section 14 Special election for President and Vice-President. - In

case a vacancy occurs for the Office of the President and Vice-
President, the Batasang Pambansa shall, at ten o'clock in the
morning of the third day after the vacancy occurs, convene in
accordance with its rules without need of a call and within seven days
enact a law calling for a special election to elect a President and a
Vice-President to be held not earlier than forty-five days nor later than
sixty days from the time of such call. The bill calling such special
election shall be deemed certified under paragraph (2), Section 19,
Article VIII of the Constitution and shall become law upon its approval
on third reading by the Batasang Pambansa. Appropriations for the
special election shall be charged against any current appropriations
and shall be exempt from the requirements of paragraph (4), Section
16 of Article VIII of the Constitution. The convening of the Batasang
Pambansa cannot be suspended nor the special election postponed.
No special election shall be called if the vacancy occurs within
seventy days before the date of the presidential election of 1987.

Section 15 Canvass of votes for President and Vice-President by the

provincial or city board of canvassers. - The provincial, city, or district
boards of canvassers in Metropolitan Manila, as the case may be,
shall meet not later than six o'clock in the evening on election day to
canvass the election returns that may have already been received by
them, respectively. It shall meet continuously from day to day until the
canvass is completed, but may adjourn only for the purpose of
awaiting the other election returns. Each time the board adjourns, it
shall make a total of all the votes cast for each candidate for
President and for Vice-President, duly authenticated by the
signatures and thumbmarks of all the members of the provincial, city
or district board of canvassers, furnishing the Commission in Manila
by the fastest means of communication a copy thereof, and making
available the data contained therein to mass media and other
interested parties. Upon the completion of the canvass, the board
shall prepare a certificate of canvass showing the votes received by
each candidate for the office of the President and for Vice-President,
duly authenticated by the signatures and thumbmarks of all the
members of the provincial, city or district board of canvassers. Upon
the completion of the certificate of canvass, the board shall certify
and transmit the said certificate of canvass to the Speaker of the
Batasang Pambansa.

The provincial, city and district boards of canvassers shall prepare

the certificate of canvass for the election of President and Vice-
President, supported by a statement of votes by polling place, in
quintuplicate by the use of carbon papers or such other means as the
Commission shall prescribe to the end that all five copies shall be
legibly produced in one handwriting. The five copies of the certificate
of canvass must bear the signatures and thumbmarks of all the
members of the board. Upon the completion of these certificates and
statements, they shall be enclosed in envelopes furnished by the
Commission and sealed, and immediately distributed as follows: the
original copy shall be enclosed and sealed in the envelope directed to
the Speaker and delivered to him at the Batasang Pambansa by the
fastest possible means; the second copy shall likewise be enclosed
and sealed in the envelope directed to the Commission; the third
copy shall be retained by the provincial election supervisor, in the
case of the provincial board of canvassers, and by the city election
registrar, in the case of the city board of canvassers; and one copy
each to the authorized representatives of the ruling party and the
dominant opposition political party. Failure to comply with the
requirements of this section shall constitute an election offense.

Section 16 Counting of votes for President and Vice-President by the

Batasang Pambansa. - The certificates of canvass, duly certified by
the board of canvassers of each province, city or district in
Metropolitan Manila shall be transmitted to the Speaker of the
Batasang Pambansa, who shall, not later than thirty days after the
day of the election, convene the Batasang Pambansa in session and
in its presence open all the certificates of canvass, and the votes
shall then be counted.

Section 17 Correction of errors in certificate and supporting statement

already transmitted to the Speaker. - No correction of errors allegedly
committed in the certificate of canvass and supporting statement
already transmitted to the Speaker of the Batasang Pambansa shall
be allowed, subject to the provisions of the succeeding section.

Section 18 Preservation of ballot boxes, their keys, and disposition of

their contents. - Until after the completion by the Batasang Pambansa
of the canvassing of the votes and until an uncontested proclamation
of the President-elect and Vice-President-elect shall have been
obtained, the provincial, city or district board of canvassers under the
joint responsibility with the provincial, city or municipal treasurers
shall provide for the safekeeping and storage of the ballot boxes in a
safe and closed chamber secured by four padlocks: one to be
provided by the corresponding board chairman; one by the provincial
or city treasurer concerned; and one each by the ruling party and the
accredited dominant opposition political party.

Section 19 When certificate of canvass is incomplete or bears

erasures or alterations. - When the certificate of canvass, duly
certified by the board of canvassers of each province, city or district in
Metropolitan Manila and transmitted to the Speaker of the Batasang
Pambansa, as provided in the Constitution, appears to be incomplete,
the Speaker shall require the board of canvassers concerned to
transmit to his office, by personal delivery, the election returns from
polling places that were not included in the certificate of canvass and
supporting statements. Said election returns shall be submitted by
personal delivery to the Speaker within two days from receipt of
notice. When it appears that any certificate of canvass or supporting
statement of votes by polling place bears erasures or alterations
which may cast doubt as to the veracity of the number of votes stated
therein and may affect the result of the election, the Batasang
Pambansa upon request of the Presidential or Vice-Presidential
candidate concerned or his party shall, for the sole purpose of
verifying the actual number of votes cast for President or Vice-
President, count the votes as they appear in the copies of the election
returns for the Commission. For this purpose, the Speaker shall
require the Commission to deliver its copies of the election returns to
the Batasang Pambansa.

Section 20 Proclamation of the President-elect and Vice-President-

elect. - Upon the completion of the canvass of the votes by the
Batasang Pambansa, the persons obtaining the highest number of
votes for President and for Vice-President shall be declared elected;
but in case two or more shall have an equal and the highest number
of votes, one of them shall be chosen President or Vice-President, as
the case may be, by a majority vote of all the Members of the
Batasang Pambansa in session assembled.

In case there are certificates of canvass which have not been

submitted to the Speaker of the Batasang Pambansa on account of
missing election returns, a proclamation may be made if the missing
certificates will not affect the results of the election.

In case the certificates of canvass which were not submitted on

account of missing election returns will affect the results of the
election, no proclamation shall be made. The Speaker shall
immediately instruct the boards of canvassers concerned to obtain
the missing election returns from the boards of election inspectors or,
if the returns have been lost or destroyed upon prior authority from
the Commission, to use any authentic copy of said election returns for
the purpose of conducting the canvass, and thereafter issue the
certificates of canvass. The certificates of canvass shall be
immediately transmitted to the Speaker of the Batasang Pambansa.

Proclamation shall be made only upon submission of all certificates of

canvass or when the missing certificates of canvass will not affect the
results of the election.

ARTICLE III
ELECTION OF MEMBERS OF THE BATASANG PAMBANSA

Section 21. Regular election of Members of the Batasang Pambansa.

- The regular election of the Members of the Batasang Pambansa
shall be held on the second Monday of May, Nineteen hundred and
ninety (1990) and on the same day every six years thereafter.

Section 22 Special election for Members of the Batasang Pambansa.

- In case a vacancy arises in the Batasang Pambansa eighteen
months or more before a regular election, the Commission shall call a
special election to be held within sixty days after the vacancy occurs
to elect the Member to serve the unexpired term.

The Batasang Pambansa through a duly approved resolution or an

official communication of the Speaker when it is not in session shall
certify to the Commission the existence of said vacancy.

Section 23. Composition of the Batasang Pambansa. - The Batasang

Pambansa shall be composed of not more than two hundred
Members elected from the different provinces of the Philippines with
their component cities, highly urbanized cities and districts of
Metropolitan Manila, those elected or selected from various sectors
as provided herein, and those chosen by the President from the
members of the Cabinet.

Section 24. Apportionment of representatives. - Until a new

apportionment shall have been made, the Members of the Batasang
Pambansa shall be apportioned in accordance with the Ordinance
appended to the Constitution, as follows:

National Capital Region:

Manila, 6;
Quezon City, 4;
Caloocan, 2;
Pasay, 1;
Pasig and Marikina, 2;
Las Piñas and Parañaque, 1;
Makati, 1;
Malabon, Navotas and Valenzuela, 2;
San Juan and Mandaluyong, 1;
Taguig, Pateros and Muntinglupa, 1.

Region I:

Abra, 1;
Benguet, 1;
Ilocos Norte with Laoag City, 2;
Ilocos Sur, 2;
La Union, 2;
Mountain Province, 1;
Pangasinan with the cities of Dagupan and San Carlos, 6;
Baguio City, 1.

Region II:

Batanes, 1;
Cagayan, 3;
Ifugao, 1;
Isabela, 3;
Kalinga-Apayao, 1;
Nueva Vizcaya, 1;
Quirino, 1.

Region III:

Bataan, 1;
Bulacan, 4;
Nueva Ecija with the cities of Cabanatuan, Palayan and San Jose, 4;
Pampanga with Angeles City, 4;
Tarlac, 2;
Zambales, 1;
Olongapo City, 1.

Region IV:

Aurora, 1;
Batangas with the cities of Batangas and Lipa, 4;
Cavite with the cities of Cavite, Tagaytay and Trece Martires, 3;
Laguna with San Pablo City, 4;
Marinduque, 1;
Occidental Mindoro, 1;
Oriental Mindoro, 2;
Palawan with Puerto Princesa City, 1;
Quezon with Lucena City, 4;
Rizal, 2;
Romblon, 1.

Region V:

Albay with Legaspi City, 3;

Camarines Norte, 1;
Camarines Sur with the cities of Iriga and Naga, 4;
Catanduanes, 1;
Masbate, 2;
Sorsogon, 2.

Region VI:

Aklan, 1;
Antique, 1;
Capiz with Roxas City;
Iloilo with Iloilo City, 5;
Negros Occidental with the cities of Bacolod, Bago, Cadiz, La
Carlota, San Carlos and Silay, 7.

Region VII:

Bohol with Tagbilaran City, 3;

Cebu with the cities of Danao, Lapu-Lapu, Mandaue and Toledo, 6;
Negros Oriental with the cities of Bais, Canlaon and Dumaguete, 3;
Siquijor, 1;
Cebu City, 2.

Region VIII:

Leyte with the cities of Ormoc and Tacloban, 5;

Southern Leyte, 1;
Eastern Samar, 1;
Northern Samar, 1;
Samar with Calbayog City, 2.

Region IX:

Basilan, 1;
Sulu, 1;
Tawi-Tawi, 1;
Zamboanga del Norte with the cities of Dapitan and Dipolog, 2;
Zamboanga del Sur with Pagadian City, 3;
Zamboanga City, 1.

Region X:

Agusan del Norte with Butuan City, 1;

Agusan del Sur, 1;
Bukidnon, 2;
Camiguin, 1;
Misamis Occidental with the cities of Oroquieta, Ozamis and Tangub,
1;
Misamis Oriental with Gingoog City, 2;
Surigao del Norte with Surigao City, 1;
Cagayan de Oro City, 1.

Region XI:

Surigao del Sur, 1;

Davao del Norte, 3;
Davao Oriental, 1;
Davao del Sur, 2;
South Cotabato with General Santos City, 3;
Davao City, 2.
Region XII:

Lanao del Norte, 1;

Lanao del Sur with Marawi City, 2;
Maguindanao with Cotabato City, 2;
North Cotabato, 2;
Sultan Kudarat, 1;
Iligan City, 1.

Any province that may hereafter be created or any component city

that may hereafter be declared by or pursuant to law as a highly
urbanized city shall be entitled in the immediately following election to
at least one Member or such number of Members as it may be
entitled to on the basis of the number of the inhabitants and on the
same uniform and progressive ratio used in the last preceding
apportionment. The number of Members apportioned to the province
out of which the new province was created or where the new highly
urbanized city is geographically located shall be correspondingly
adjusted by the Commission, but such adjustment shall not be made
within one hundred twenty days before the election.

Section 25. Voting by province and its component cities, by highly

urbanized city or by district in Metropolitan Manila. - All candidates
shall be voted at large by the registered voters of their respective
constituencies. The candidates corresponding to the number of
Member or Members to be elected in a constituency who receive the
highest number of votes shall be declared elected.

Section 26. Sectoral representatives. - There shall be three sectors to

be represented in the Batasang Pambansa, namely: (1) youth; (2)
agricultural labor; (3) industrial labor whose representatives shall be
elected in the manner herein provided. Each sector shall be entitled
to four representatives, two of whom shall come from Luzon, one
from Visayas, and one from Mindanao: Provided, That the youth
sector shall be entitled to two additional sectoral representatives who
shall be elected from any part of the country.

Section 27. Scope of the sectors. - The agricultural labor sector

covers all persons who personally and physically till the land as their
principal occupation. It includes agricultural tenants and lessees, rural
workers and farm employees, owner-cultivators, settlers and small
fishermen.

The industrial labor sector includes all non-agricultural workers and

employees.

The youth sector embraces persons not more than twenty-five years
of age.

Section 28. Selection of sectoral representatives. - Not later than

twenty days after the election of provincial, city or district
representatives, the most representative and generally recognized
organizations or aggroupments of members of the agricultural labor,
industrial labor, and youth sectors, as attested to by the Ministers of
Agrarian Reform and of Agriculture and Food, the Ministers of Labor
and Employment, and the Ministers of Local Government and of
Education, Culture and Sports, respectively, shall, in accordance with
the procedures of said organizations or aggroupments of members of
the sector, submit to the President their respective nominees for each
slot allotted for each sector. The President shall appoint from among
the nominees submitted by the aforementioned organizations or
aggroupments the representatives of each sector.

In recognizing the most representative and generally recognized

organizations or aggroupments, the Ministers of Agrarian Reform and
of Agriculture and Food, the Minister of Labor and Employment, and
the Ministers of Local Government and Education, Culture and Sports
shall consider:

(a) The extent of membership and activity of the organization or

aggroupment which should be national;

(b) The responsiveness of the organization or aggroupment to the

legitimate aspirations of its sector;

(c) The militancy and consistency of the organization or aggroupment

in espousing the cause and promoting the welfare of the sector
consistent with that of the whole country;
(d) The observance by such organization or aggroupment of the rule
of law; and

(e) Other analogous factors.

The President of the Philippines shall, in writing, notify the Secretary-

General of the Batasang Pambansa of the appointment made by him
of any sectoral representative.

Except as herein otherwise provided, sectoral representatives shall

have the same functions, responsibilities, rights, privileges,
qualifications and disqualifications as the representatives from the
provinces and their component cities, highly urbanized cities or
districts of Metropolitan Manila.

ARTICLE IV
ELECTION OF LOCAL OFFICIALS

Section 29. Regular elections of local officials. - The election of

provincial, city and municipal officials whose positions are provided
for by the Local Government Code shall be held throughout the
Philippines in the manner herein prescribed on the first Monday of
May, Nineteen hundred and eighty-six and on the same day every six
years thereafter.

The officials elected shall assume office on the thirtieth day of June
next following the election and shall hold office for six years and until
their successors shall have been elected and qualified.

All local incumbent officials whose tenure of office shall expire on

March 23, 1986 shall hold office until June 30, 1986 or until their
successors shall have been elected and qualified: Provided, That
they cannot be suspended or removed without just cause.

Section 30. Component and highly urbanized cities. - Unless their

respective charters provide otherwise, the electorate of component
cities shall be entitled to vote in the election for provincial officials of
the province of which it is a part.
The electorate of highly urbanized cities shall not vote in the election
for provincial officials of the province in which it is located: Provided,
however, That no component city shall be declared or be entitled to a
highly urbanized city status within ninety days prior to any election.

ARTICLE V
ELECTION OF MEMBERS OF THE REGIONAL ASSEMBLY OF
THE AUTONOMOUS REGIONS.

Section 31. The Sangguniang Pampook of the autonomous regions. -

Region IX and Region XII in southern Philippines shall each have a
Sangguniang Pampook to be composed of twenty-seven members
and shall include seventeen representatives elected from the different
provinces and cities of each region, and a sectoral representative
each from among the youth, agricultural workers, and non-agricultural
workers (industrial labor) of each region to be selected in the manner
herein provided whose qualifications and disqualifications are the
same as Members of the Batasang Pambansa.

The President shall appoint an additional seven representatives in

each region whenever in his judgment any other sector is not properly
represented in the Sangguniang Pampook as a result of the
elections.

Section 32. Apportionment of members of the Sangguniang

Pampook. - The Members of the Sangguniang Pampook of Region IX
and of Region XII shall be apportioned as follows:

Region IX:
Basilan, one (1);
Sulu, three (3);
Tawi-Tawi, one (1);
Zamboanga del Norte including the cities of Dipolog and Dapitan,
four, (4);
and Zamboanga del Sur, including the City of Pagadian, six (6);
and Zamboanga City, two (2);

Region XII:
Lanao del Norte, two (2); Iligan City, one (1);
Lanao del Sur including the City of Marawi, four (4);
Maguindanao including the City of Cotabato, four (4);
North Cotabato, four (4);
and Sultan Kudarat, two (2).

Section 33. Election of members of Sangguniang Pampook. - The

candidates for the position of seventeen representatives to the
Sangguniang Pampook of Region IX and of Region XII shall be voted
at large by the registered voters of each province including the cities
concerned.

The candidates corresponding to the number of member or members

to be elected in a constituency who receive the highest number of
votes shall be declared elected.

Section 34. Selection of sectoral representatives. - The President

shall, within thirty days from the convening of each Sangguniang
Pampook, appoint the sectoral representatives on recommendation of
the Sangguniang Pampook and after due consultation with the
representative and generally recognized organizations or
aggrupations of members of the youth, agricultural workers and non-
agricultural workers as attested by the Ministers of Local Government
and of Education, Culture and Sports (youth), Ministers of Agrarian
Reform and of Agriculture and Food (agricultural workers), and
Ministers of Labor and Employment (non-agricultural or industrial
labor).

The President of the Philippines shall in writing notify the Speaker of

the Sangguniang Pampook of each region of the appointment made
by him of any sectoral representative.

The sectoral representatives shall have the same functions,

responsibilities, rights, privileges, qualifications and disqualifications
as the elective provincial representatives to the Sangguniang
Pampook: Provided, however, That no defeated candidate for
member of the Sangguniang Pampook in the immediately preceding
election shall be appointed as sectoral representative.
Section 35. Filling of vacancy. - Pending an election to fill a vacancy
arising from any cause in the Sangguniang Pampook, the vacancy
shall be filled by the President, upon recommendation of the
Sangguniang Pampook: Provided, That the appointee shall come
from the same province or sector of the member being replaced.

Section 36. Term of office. - The present members of the

Sangguniang Pampook of each of Region IX and Region XII shall
continue in office until June 30, 1986 or until their successors shall
have been elected and qualified or appointed and qualified in the
case of sectoral members. They may not be removed or replaced
except in accordance with the internal rules of said assembly or
provisions of pertinent laws.

The election of members of the Sangguniang Pampook of the two

regions shall be held simultaneously with the local elections of 1986.
Those elected in said elections shall have a term of four years
starting June 30, 1986.

Those elected in the election of 1990 to be held simultaneously with

the elections of Members of the Batasang Pambansa shall have a
term of six years.

ARTICLE VI
ELECTION OF BARANGAY OFFICIALS

Section 37. Regular election of barangay officials. - The election for

barangay officials shall be held throughout the Philippines in the
manner prescribed on the second Monday of May Nineteen hundred
and eighty-eight and on the same day every six years thereafter.

The officials elected shall assume office on the thirtieth day of June
next following the election and shall hold office for six years and until
their successors shall have been elected and qualified.

Section 38. Conduct of elections. - The barangay election shall be

non-partisan and shall be conducted in an expeditious and
inexpensive manner.
No person who files a certificate of candidacy shall represent or allow
himself to be represented as a candidate of any political party or any
other organization; and no political party, political group, political
committee, civic, religious, professional, or other organization or
organized group of whatever nature shall intervene in his nomination
or in the filing of his certificate of candidacy or give aid or support,
directly or indirectly, material or otherwise favorable to or against his
campaign for election: Provided, That this provision shall not apply to
the members of the family of a candidate within the fourth civil degree
of consanguinity or affinity nor to the personal campaign staff of the
candidate which shall not be more than one for every one hundred
registered voters in his barangay: Provided, however, That without
prejudice to any liability that may be incurred, no permit to hold a
public meeting shall be denied on the ground that the provisions of
this paragraph may or will be violated.

Nothing in this section, however, shall be construed as in any manner

affecting or constituting an impairment of the freedom of individuals to
support or oppose any candidate for any barangay office.

Section 39. Certificate of Candidacy. - No person shall be elected

punong barangay or kagawad ng sangguniang barangay unless he
files a sworn certificate of candidacy in triplicate on any day from the
commencement of the election period but not later than the day
before the beginning of the campaign period in a form to be
prescribed by the Commission. The candidate shall state the
barangay office for which he is a candidate.

The certificate of candidacy shall be filed with the secretary of the

sangguniang barangay who shall have the ministerial duty to receive
said certificate of candidacy and to immediately acknowledge receipt
thereof.

In case the secretary refuses to receive the same, or in the case of

his absence or non-availability, a candidate may file his certificate
with the election registrar of the city or municipality concerned.

The secretary of the sangguniang barangay or the election registrar,

as the case may be, shall prepare a consolidated list all the
candidates and shall post said list in the barangay hall and in other
conspicuous places in the barangay at least ten days before the
election.

Any elective or appointive municipal, city, provincial or national official

or employee, or those in the civil or military service, including those in
government-owned or controlled corporations, shall be considered
automatically resigned upon the filing of certificate of candidacy for a
barangay office.

Section 40. Board of Election Tellers. -

(1) The Commission shall constitute not later than ten days before the
election a board of election tellers in every barangay polling place, to
be composed of a public elementary school teacher as chairman, and
two members who are registered voters of the polling place
concerned, but who are not incumbent barangay officials nor related
to any candidate for any position in that barangay within the fourth
civil degree of affinity or consanguinity.

In case no public elementary school teachers are available, the

Commission shall designate any registered voter in the polling place
who is not an incumbent barangay official nor related to any
candidate for any position in that barangay within the fourth civil
degree of affinity or consanguinity.

(2) The board of election tellers shall supervise and conduct the
election in their respective polling places, count the votes and
thereafter prepare a report in triplicate on a form prescribed by the
Commission. The original of this report shall be delivered immediately
to the barangay board of canvassers. The second copy shall be
delivered to the election registrar and the third copy shall be delivered
to the secretary of the sangguniang barangay who shall keep the
same on file.

Section 41. Registration of voters and list of voters. - Not later than
seven days before the election, the board of election tellers shall
meet in every barangay polling place to conduct the registration of
barangay voters and to prepare the list of voters. Any voter may
challenge the qualification of any person seeking to register and said
challenge shall be heard and decided on the same day by the board
of election tellers.

The final list of voters shall be posted in the polling places at least two
days before election day. The registration of any voter shall not be
transferred without written notice at least two days before the date of
election. Not later than the day following the barangay election, the
board of election tellers shall deliver the list of voters to the election
registrar for custody and safekeeping.

Section 42. Polling places. - (1) The chairman of the board of election
tellers shall designate the public school or any other public building
within the barangay to be used as polling place in case the barangay
has one election precinct. (2) For barangays with two or more
election precincts the chairman of the board of canvassers shall
designate the public school or any other public building to be used as
polling place.

In case there is no public school or other public building that can be

used as polling places, other appropriate private buildings may be
designated: Provided, That such buildings are not owned or occupied
or possessed by any incumbent elective public official or candidate,
or his relative within the fourth civil degree of consanguinity or affinity.
The polling place shall be centrally located as possible, always taking
into consideration the convenience and safety of the voters.

Section 43. Official barangay ballots. - The official barangay ballots

shall be provided by the city or municipality concerned of a size and
color to be prescribed by the Commission.

Such official ballots shall, before they are handed to the voter at the
polling place, be authenticated in the presence of the voter, by the
authorized representatives of the candidates and the chairman and
members of the board of election tellers who shall affix their
signatures at the back thereof. Any ballot which is not authenticated
shall be deemed spurious.

Section 44. Ballot boxes. - The Commission shall provide the ballot
boxes for each barangay polling place, but each candidate may be
permitted to provide a padlock for said ballot box.
Section 45. Postponement or failure of election. - When for any
serious cause such as violence, terrorism, loss or destruction of
election paraphernalia or records, force majeure, and other
analogous causes of such nature that the holding of a free, orderly
and honest election should become impossible in any barangay, the
Commission, upon a verified petition of an interested party and after
due notice and hearing at which the interested parties are given equal
opportunity to be heard, shall postpone the election therein for such
time as it may deem necessary.

If, on account of force majeure, violence, terrorism, fraud or other

analogous causes, the election in any barangay has not been held on
the date herein fixed or has been suspended before the hour fixed by
law for the closing of the voting therein and such failure or
suspension of election would affect the result of the election, the
Commission, on the basis of a verified petition of an interested party,
and after due notice and hearing, at which the interested parties are
given equal opportunity to be heard shall call for the holding or
continuation of the election within thirty days after it shall have
verified and found that the cause or causes for which the election has
been postponed or suspended have ceased to exist or upon petition
of at least thirty percent of the registered voters in the barangay
concerned.

When the conditions in these areas warrant, upon verification by the

Commission, or upon petition of at least thirty percent of the
registered voters in the barangay concerned, it shall order the holding
of the barangay election which was postponed or suspended.

Section 46. Barangay board of canvassers. -

(1) The Commission shall constitute a board of canvassers at least

seven days before the election in each barangay, to be composed of
the senior public elementary school teacher in the barangay as
chairman, and two other public elementary school teachers, as
members.

In case the number of public elementary school teachers is

inadequate, the Commission shall designate the chairman and
members of the barangay board of canvassers from among the board
of election tellers.

(2) The barangay board of canvassers shall meet immediately in a

building where a polling place is found and which is most centrally
located in the barangay and after canvassing the results from the
various polling places within the barangay, proclaim the winners. The
board of canvassers shall accomplish the certificate of proclamation
in triplicate on a form to be prescribed by the Commission. The
original of the certificate shall be sent to the election registrar
concerned, the second copy shall be delivered to the secretary of the
sangguniang bayan or sangguniang panglunsod, as the case may be,
and the third copy shall be kept on file by the secretary of the
sangguniang barangay.

(3) In a barangay where there is only one polling place, the barangay
board of election tellers shall also be the barangay board of
canvassers.

Section 47. Activities during the campaign period. - During the

campaign period, the punong barangay if he is not a candidate, or
any resident of the barangay designated by the Commission, shall
convene the barangay assembly at least once for the purpose of
allowing the candidates to appear at a joint meeting duly called, upon
proper and with at least two days notice, to explain to the barangay
voters their respective program of administration, their qualifications,
and other information that may help enlighten voters in casting their
votes.

The members of the barangay assembly may take up and discuss

other matters relative to the election of barangay officials.

Section 48. Watchers. - Candidates may appoint two watchers each,

to serve alternately, in every polling place within the barangay, who
shall be furnished with a signed copy of the results of the election, in
such form as the Commission may prescribe, immediately after the
completion of the canvass.

Section 49. Inclusion and exclusion cases. - Inclusion and exclusion

cases which shall be decided not later than seven before the date of
the election shall be within the exclusive original jurisdiction of the
municipal or metropolitan trial court. The notice of such decision shall
be served to all parties within twenty-four hours following its
promulgation and any party adversely affected may appeal therefrom
within twenty-four hours to the regional trial court which shall finally
decide the same not later than two days before the date of the
election.

Section 50. Funding. - Local governments shall appropriate such

funds to defray such necessary and reasonable expenses of the
members of the board of election tellers, board of canvassers and the
printing of election forms and procurement of other election
paraphernalia, and the installation of polling booths.

Section 51. Penalties. - Violations of any provisions of this Article

shall constitute prohibited acts and shall be prosecuted and penalized
in accordance with the provisions of this Code.

ARTICLE VII
THE COMMISSION ON ELECTIONS

Section 52. Powers and functions of the Commission on Elections. -

In addition to the powers and functions conferred upon it by the
Constitution, the Commission shall have exclusive charge of the
enforcement and administration of all laws relative to the conduct of
elections for the purpose of ensuring free, orderly and honest
elections, and shall:

(a) Exercise direct and immediate supervision and control over

national and local officials or employees, including members of any
national or local law enforcement agency and instrumentality of the
government required by law to perform duties relative to the conduct
of elections. In addition, it may authorize CMT cadets eighteen years
of age and above to act as its deputies for the purpose of enforcing
its orders.

The Commission may relieve any officer or employee referred to in

the preceding paragraph from the performance of his duties relating
to electoral processes who violates the election law or fails to comply
with its instructions, orders, decisions or rulings, and appoint his
substitute. Upon recommendation of the Commission, the
corresponding proper authority shall suspend or remove from office
any or all of such officers or employees who may, after due process,
be found guilty of such violation or failure.

(b) During the period of the campaign and ending thirty days
thereafter, when in any area of the country there are persons
committing acts of terrorism to influence people to vote for or against
any candidate or political party, the Commission shall have the power
to authorize any member or members of the Armed Forces of the
Philippines, the National Bureau of Investigation, the Integrated
National Police or any similar agency or instrumentality of the
government, except civilian home defense forces, to act as deputies
for the purpose of ensuring the holding of free, orderly and honest
elections.

(c) Promulgate rules and regulations implementing the provisions of

this Code or other laws which the Commission is required to enforce
and administer, and require the payment of legal fees and collect the
same in payment of any business done in the Commission, at rates
that it may provide and fix in its rules and regulations.

Rules and regulations promulgated by the Commission to implement

the provisions of this Code shall take effect on the sixteenth day after
publication in the Official Gazette or in at least daily newspapers of
general circulation. Orders and directives issued by the Commission
pursuant to said rules and regulations shall be furnished by personal
delivery to accredited political parties within forty-eight hours of
issuance and shall take effect immediately upon receipt.

In case of conflict between rules, regulations, orders or directives of

the Commission in the exercise of its constitutional powers and those
issued by any other administrative office or agency of the government
concerning the same matter relative to elections, the former shall
prevail.

(d) Summon the parties to a controversy pending before it, issue

subpoena and subpoena duces tecum, and take testimony in any
investigation or hearing before it, and delegate such power to any
officer of the Commission who shall be a member of the Philippine
Bar. In case of failure of a witness to attend, the Commission, upon
proof of service of the subpoena to said witnesses, may issue a
warrant to arrest witness and bring him before the Commission or the
officer before whom his attendance is required.

Any controversy submitted to the Commission shall, after compliance

with the requirements of due process, be immediately heard and
decided by it within sixty days from submission thereof. No decision
or resolution shall be rendered by the Commission either en banc or
by division unless taken up in a formal session properly convened for
the purpose.

The Commission may, when necessary, avail of the assistance of any

national or local law enforcement agency and/or instrumentality of the
government to execute under its direct and immediate supervision
any of its final decisions, orders, instructions or rulings.

(e) Punish contempts provided for in the Rules of Court in the same
procedure and with the same penalties provided therein. Any violation
of any final and executory decision, order or ruling of the Commission
shall constitute contempt thereof.

(f) Enforce and execute its decisions, directives, orders and

instructions which shall have precedence over those emanating from
any other authority, except the Supreme Court and those issued in
habeas corpus proceedings.

(g) Prescribe the forms to be used in the election, plebiscite or

referendum.

(h) Procure any supplies, equipment, materials or services needed for

the holding of the election by public bidding: Provided, That, if it finds
the requirements of public bidding impractical to observe, then by
negotiations or sealed bids, and in both cases, the accredited parties
shall be duly notified.

(i) Prescribe the use or adoption of the latest technological and

electronic devices, taking into account the situation prevailing in the
area and the funds available for the purpose: Provided, That the
Commission shall notify the authorized representatives of accredited
political parties and candidates in areas affected by the use or
adoption of technological and electronic devices not less than thirty
days prior to the effectivity of the use of such devices.

(j) Carry out a continuing and systematic campaign through

newspapers of general circulation, radios and other media forms to
educate the public and fully inform the electorate about election laws,
procedures, decisions, and other matters relative to the work and
duties of the Commission and the necessity of clean, free, orderly
and honest electoral processes.

(k) Enlist non-partisan group or organizations of citizens from the

civic, youth, professional, educational, business or labor sectors
known for their probity, impartiality and integrity with the membership
and capability to undertake a coordinated operation and activity to
assist it in the implementation of the provisions of this Code and the
resolutions, orders and instructions of the Commission for the
purpose of ensuring free, orderly and honest elections in any
constituency.

Such groups or organizations shall function under the direct and

immediate control and supervision of the Commission and shall
perform the following specific functions and duties:

A. Before Election Day:

1. Undertake an information campaign on salient features of this

Code and help in the dissemination of the orders, decisions and
resolutions of the Commission relative to the forthcoming election.

2. Wage a registration drive in their respective areas so that all

citizens of voting age, not otherwise disqualified by law may be
registered.

3. Help cleanse the list of voters of illegal registrants, conduct house-

to-house canvass if necessary, and take the appropriate legal steps
towards this end.
4. Report to the Commission violations of the provisions of this Code
on the conduct of the political campaign, election propaganda and
electoral expenditures.

B. On Election Day:

1. Exhort all registered voters in their respective areas to go to their

polling places and cast their votes.

2. Nominate one watcher for accreditation in each polling place and

each place of canvass who shall have the same duties, functions and
rights as the other watchers of political parties and candidates.
Members or units of any citizen group or organization so designated
by the Commission except its lone duly accredited watcher, shall not
be allowed to enter any polling place except to vote, and shall, if they
so desire, stay in an area at least fifty meters away from the polling
place.

3. Report to the peace authorities and other appropriate agencies all

instances of terrorism, intimidation of voters, and other similar
attempts to frustrate the free and orderly casting of votes.

4. Perform such other functions as may be entrusted to such group or

organization by the Commission.

The designation of any group or organization made in accordance

herewith may be revoked by the Commission upon notice and
hearing whenever by its actuations such group or organization has
shown partiality to any political party or candidate, or has performed
acts in excess or in contravention of the functions and duties herein
provided and such others which may be granted by the Commission.

(l) Conduct hearings on controversies pending before it in the cities or

provinces upon proper motion of any party, taking into consideration
the materiality and number of witnesses to be presented, the situation
prevailing in the area and the fund available for the purpose.

(m) Fix other reasonable periods for certain pre-election requirements

in order that voters shall not be deprived of their right of suffrage and
certain groups of rights granted them in this Code.
Unless indicated in this Code, the Commission is hereby authorized
for fix the appropriate period for the various prohibited acts
enumerated herein, consistent with the requirements of free, orderly,
and honest elections.

Section 53. Field offices of the Commission. - The Commission shall

have the following field offices:

(1) Regional Election Office, headed by the Regional Election

Director and assisted by the Assistant Regional Director and such
other subordinate officers or employees as the Commission may
appoint.

(2) Provincial Election Office, headed by the Provincial Election

Supervisor and assisted by such other subordinate officers or
employees as the Commission may appoint.

(3) City/Municipal Election Office, headed by the City/Municipal

Registrar who shall be assisted by an election clerk and such other
employees as the Commission may appoint.

The Commission may delegate its powers and functions or order the
implementation or enforcement of its orders, rulings, or decisions
through the heads of its field offices.

Section 54. Qualifications. - Only members of the Philippines Bar

shall be eligible for appointment to the position of regional director,
assistant regional director, provincial election supervisor and election
registrar: Provided, however, That if there are no members of the
Philippine Bar available for appointment as election registrar, except
in cities and capital towns, graduates of duly recognized schools of
law, liberal arts, education or business administration who possess
the appropriate civil service eligibility may be appointed to said
position.

Section 55. Office space. - The local government concerned shall

provide a suitable place for the office of the provincial election
supervisor and his staff and the election registrar and his staff:
Provided, That in case of failure of the local government concerned to
provide such suitable place, the provincial election supervisor or the
election registrar, as the case may be, upon prior authority of the
Commission and notice to the local government concerned, may
lease another place for office and the rentals thereof shall be
chargeable to the funds of the local government concerned.

Section 56. Changes in the composition, distribution or assignment of

field offices. - The Commission may make changes in the
composition, distribution and assignment of field offices, as well as its
personnel, whenever the exigencies of the service and the interest of
free, orderly, and honest election so require: Provided, That such
changes shall be effective and enforceable only for the duration of the
election period concerned and shall not affect the tenure of office of
the incumbents of positions affected and shall not constitute a
demotion, either in rank or salary, nor result in change of status: and
Provided, further, That there shall be no changes in the composition,
distribution or assignment within thirty days before election, except for
cause and after due notice and hearing, and that in no case shall a
regional or assistant regional director be assigned to a region; a
provincial election supervisor to a province; or a city or municipal
election registrar to a city or municipality, where he and/or his spouse
are related to any candidate within the fourth civil degree of
consanguinity or affinity as the case may be.

Section 57. Measures to ensure enforcement. - For the effective

enforcement of the provisions of this Code, the Commission is further
vested and charged with the following powers, duties and
responsibilities:

1. To issue search warrants after examination under oath or

affirmation of the complainant and the witnesses

2. To stop any illegal election activity, or confiscate, tear down, and

stop any unlawful, libelous, misleading or false election propaganda,
after due notice and hearing.

3. To inquire into the financial records of candidates and any

organization or group of persons, motu proprio or upon written
representation for probable cause by any candidate or group of
persons or qualified voter, after due notice and hearing.

For purposes of this section, the Commission may avail itself of the
assistance of the Commission on Audit, the Central Bank, the
National Bureau of Investigation, the Bureau of Internal Revenue, the
Armed Forces of the Philippines, the Integrated National Police of the
Philippines, barangay officials, and other agencies of the government.

Section 58. Disqualifications of members of the Commission. - The

chairman and members of the Commission shall be subject to the
canons of judicial ethics in the discharge of their functions.

No chairman or commissioner shall sit in any case in which he has

manifested bias or prejudice for or against or antagonism against any
party thereto and in connection therewith, or in any case in which he
would be disqualified under the Rules of Court. If it be claimed that
the chairman or a commissioner is disqualified as above provided,
the party objecting to his competency may file his objection in writing
with the Commission stating the ground therefor. The official
concerned shall continue to participate in the hearing or withdrawn
therefrom in accordance with his determination of the question of his
disqualification. The decision shall forthwith be made in writing and
filed with the other papers of the case in accordance with the Rules of
Court. If a disqualification should result in a lack of quorum in the
Commission sitting en banc, the Presiding Justice of the Intermediate
Appellate Court shall designate a justice of said court to sit in said
case for the purpose of hearing and reaching a decision thereon.

Section 59. Publication of official ballots and election returns and

printing thereof. - The Commission shall publish at least ten days
before an election in a newspaper of general circulation certified data
on the number of official ballots and election returns and the names
and addresses of the printers and the number printed by each.

ARTICLE VIII
POLITICAL PARTIES
Section 60. Political party. - "Political party" or "party", when used in
this Act, means an organized group of persons pursuing the same
ideology, political ideas or platforms of government and includes its
branches and divisions. To acquire juridical personality, quality it for
subsequent accreditation, and to entitle it to the rights and privileges
herein granted to political parties, a political party shall first be duly
registered with the Commission. Any registered political party that,
singly or in coalition with others, fails to obtain at least ten percent of
the votes cast in the constituency in which it nominated and
supported a candidate or candidates in the election next following its
registration shall, after notice and hearing be deemed to have
forfeited such status as a registered political party in such
constituency.

Section 61. Registration. - Any organized group of persons seeking

registration as a national or regional political party may file with the
Commission a verified petition attaching thereto its constitution and
by-laws, platform or program of government and such other relevant
information as may be required by the Commission. The Commission
shall, after due notice and hearing, resolve the petition within ten
days from the date it is submitted for decision.

No religious sect shall be registered as a political party and no

political party which seeks to achieve its goal through violence shall
be entitled to accreditation.

Section 62. Publication of petition for registration or accreditation. -

The Commission shall require publication of the petition for
registration or accreditation in at least three newspapers of general
circulation and shall, after due notice and hearing, resolve the petition
within fifteen days from the date it is submitted for decision.

ARTICLE IX
ELIGIBILITY OF CANDIDATES AND CERTIFICATE OF
CANDIDACY

Section 63. Qualifications for President and Vice-President of the

Philippines. - No person may be elected President unless he is a
natural-born citizen of the Philippines, a registered voter, able to read
and write, at least forty years of age on the day of election, and a
resident of the Philippines for at least ten years immediately
preceding such election.

Section 64. Qualifications for Members of the Batasang Pambansa. -

No person shall be elected Member of the Batasang Pambansa as
provincial, city or district representative unless he is a natural-born
citizen of the Philippines and, on the day of the election, is at least
twenty-five years of age, able to read and write, a registered voter in
the constituency in which he shall be elected, and a resident thereof
for a period of not less than six months immediately preceding the
day of the election.

A sectoral representative shall be a natural-born citizen of the

Philippines, able to read and write, a resident of the Philippines, able
to read and write, a resident of the Philippines for a period of not less
than one year immediately preceding the day of the election, a bona
fide member of the sector he seeks to represent, and in the case of a
representative of the agricultural or industrial labor sector, shall be a
registered voter, and on the day of the election is at least twenty-five
years of age.

The youth sectoral representative should at least be eighteen and not

be more than twenty-five years of age on the day of the election:
Provided, however, That any youth sectoral representative who
attains the age of twenty-five years during his term shall be entitled to
continue in office until the expiration of his term.

Section 65. Qualifications of elective local officials. - The

qualifications for elective provincial, city, municipal and barangay
officials shall be those provided for in the Local Government Code.

Section 66. Candidates holding appointive office or positions. - Any

person holding a public appointive office or position, including active
members of the Armed Forces of the Philippines, and officers and
employees in government-owned or controlled corporations, shall be
considered ipso facto resigned from his office upon the filing of his
certificate of candidacy.

Section 67. Candidates holding elective office. - Any elective official,

whether national or local, running for any office other than the one
which he is holding in a permanent capacity, except for President and
Vice-President, shall be considered ipso facto resigned from his office
upon the filing of his certificate of candidacy.

Section 68. Disqualifications. - Any candidate who, in an action or

protest in which he is a party is declared by final decision of a
competent court guilty of, or found by the Commission of having (a)
given money or other material consideration to influence, induce or
corrupt the voters or public officials performing electoral functions; (b)
committed acts of terrorism to enhance his candidacy; (c) spent in his
election campaign an amount in excess of that allowed by this Code;
(d) solicited, received or made any contribution prohibited under
Sections 89, 95, 96, 97 and 104; or (e) violated any of Sections 80,
83, 85, 86 and 261, paragraphs d, e, k, v, and cc, subparagraph 6,
shall be disqualified from continuing as a candidate, or if he has been
elected, from holding the office. Any person who is a permanent
resident of or an immigrant to a foreign country shall not be qualified
to run for any elective office under this Code, unless said person has
waived his status as permanent resident or immigrant of a foreign
country in accordance with the residence requirement provided for in
the election laws.

Section 69. Nuisance candidates. - The Commission may motu

proprio or upon a verified petition of an interested party, refuse to give
due course to or cancel a certificate of candidacy if it is shown that
said certificate has been filed to put the election process in mockery
or disrepute or to cause confusion among the voters by the similarity
of the names of the registered candidates or by other circumstances
or acts which clearly demonstrate that the candidate has no bona fide
intention to run for the office for which the certificate of candidacy has
been filed and thus prevent a faithful determination of the true will of
the electorate.

Section 70. Guest candidacy. - A political party may nominate and/or

support candidates not belonging to it.

Section 72. Effects of disqualification cases and priority. - The

Commission and the courts shall give
priority to cases of disqualification by reason of violation of this Act to
the end that a final decision shall be rendered not later than seven
days before the election in which the disqualification is sought.

Any candidate who has been declared by final judgment to be

disqualified shall not be voted for, and the votes cast for him shall not
be counted. Nevertheless, if for any reason, a candidate is not
declared by final judgment before an election to be disqualified and
he is voted for and receives the winning number of votes in such
election, his violation of the provisions of the preceding sections shall
not prevent his proclamation and assumption to office.

Section 73. Certificate of candidacy. - No person shall be eligible for

any elective public office unless he files a sworn certificate of
candidacy within the period fixed herein.

A person who has filed a certificate of candidacy may, prior to the

election, withdraw the same by submitting to the office concerned a
written declaration under oath.

No person shall be eligible for more than one office to be filled in the
same election, and if he files his certificate of candidacy for more than
one office, he shall not be eligible for any of them.

However, before the expiration of the period for the filing of

certificates of candidacy, the person who was filed more than one
certificate of candidacy may declare under oath the office for which
he desires to be eligible and cancel the certificate of candidacy for the
other office or offices.

The filing or withdrawal of a certificate of candidacy shall not affect

whatever civil, criminal or administrative liabilities which a candidate
may have incurred.

Section 74. Contents of certificate of candidacy. - The certificate of

candidacy shall state that the person filing it is announcing his
candidacy for the office stated therein and that he is eligible for said
office; if for Member of the Batasang Pambansa, the province,
including its component cities, highly urbanized city or district or
sector which he seeks to represent; the political party to which he
belongs; civil status; his date of birth; residence; his post office
address for all election purposes; his profession or occupation; that
he will support and defend the Constitution of the Philippines and will
maintain true faith and allegiance thereto; that he will obey the laws,
legal orders, and decrees promulgated by the duly constituted
authorities; that he is not a permanent resident or immigrant to a
foreign country; that the obligation imposed by his oath is assumed
voluntarily, without mental reservation or purpose of evasion; and that
the facts stated in the certificate of candidacy are true to the best of
his knowledge.

Unless a candidate has officially changed his name through a court

approved proceeding, a certificate shall use in a certificate of
candidacy the name by which he has been baptized, or if has not
been baptized in any church or religion, the name registered in the
office of the local civil registrar or any other name allowed under the
provisions of existing law or, in the case of a Muslim, his Hadji name
after performing the prescribed religious pilgrimage: Provided, That
when there are two or more candidates for an office with the same
name and surname, each candidate, upon being made aware or such
fact, shall state his paternal and maternal surname, except the
incumbent who may continue to use the name and surname stated in
his certificate of candidacy when he was elected. He may also
include one nickname or stage name by which he is generally or
popularly known in the locality.

The person filing a certificate of candidacy shall also affix his latest
photograph, passport size; a statement in duplicate containing his
bio-data and program of government not exceeding one hundred
words, if he so desires.

Section 75. Filing and distribution of certificate of candidacy. - The

certificate of candidacy shall be filed on any day from the
commencement of the election period but not later than the day
before the beginning of the campaign period: Provided, That in cases
of postponement or failure of election under Sections 5 and 6 hereof,
no additional certificate of candidacy shall be accepted except in
cases of substitution of candidates as provided under Section 77
hereof.
The certificates of candidacy for President and Vice-President of the
Philippines shall be filed in ten legible copies with the Commission
which shall order the printing of copies thereof for distribution to all
polling places. The certificates of candidacy for the other offices shall
be filed in duplicate with the offices herein below mentioned, together
with a number of clearly legible copies equal to twice the number of
polling places in the province, city, district, municipality or barangay,
as the case may be:

(a) For representative in the Batasang Pambansa, with the

Commission, the provincial election supervisor, city election registrar
in case of highly urbanized cities, or an officer designated by the
Commission having jurisdiction over the province, city or
representative district who shall send copies thereof to all polling
places in the province, city or district;

(b) For provincial offices, with the provincial election supervisor of the
province concerned who shall send copies thereof to all polling
places in the province;

(c) For city and municipal offices, with the city or municipal election
registrar who shall send copies thereof to all polling places in the city
or municipality; and

(d) For punong barangay or kagawad ng sangguniang barangay, the

certificates of candidacy shall be filed in accordance with the
provisions of Section 39 of Article VI of this Code.

The duly authorized receiving officer shall immediately send the

original copy of all certificates of candidacy received by him to the
Commission.

Section 76. Ministerial duty of receiving and acknowledging receipt. -

The Commission, provincial election supervisor, election registrar or
officer designated by the Commission or the board of election
inspectors under the succeeding section shall have the ministerial
duty to receive and acknowledge receipt of the certificate of
candidacy.
Section 77. Candidates in case of death, disqualification or
withdrawal of another. - If after the last day for the filing of certificates
of candidacy, an official candidate of a registered or accredited
political party dies, withdraws or is disqualified for any cause, only a
person belonging to, and certified by, the same political party may file
a certificate of candidacy to replace the candidate who died, withdrew
or was disqualified. The substitute candidate nominated by the
political party concerned may file his certificate of candidacy for the
office affected in accordance with the preceding sections not later
than mid-day of the day of the election. If the death, withdrawal or
disqualification should occur between the day before the election and
mid-day of election day, said certificate may be filed with any board of
election inspectors in the political subdivision where he is a
candidate, or, in the case of candidates to be voted for by the entire
electorate of the country, with the Commission.

Section 78. Petition to deny due course to or cancel a certificate of

candidacy. - A verified petition seeking to deny due course or to
cancel a certificate of candidacy may be filed by the person
exclusively on the ground that any material representation contained
therein as required under Section 74 hereof is false. The petition may
be filed at any time not later than twenty-five days from the time of the
filing of the certificate of candidacy and shall be decided, after due
notice and hearing, not later than fifteen days before the election.

ARTICLE X
CAMPAIGN AND ELECTION PROPAGANDA

Section 79. Definitions. - As used in this Code:

(a) The term "candidate" refers to any person aspiring for or seeking
an elective public office, who has filed a certificate of candidacy by
himself or through an accredited political party, aggroupment, or
coalition of parties;

(b) The term "election campaign" or "partisan political activity" refers

to an act designed to promote the election or defeat of a particular
candidate or candidates to a public office which shall include:
(1) Forming organizations, associations, clubs, committees or other
groups of persons for the purpose of soliciting votes and/or
undertaking any campaign for or against a candidate;

(2) Holding political caucuses, conferences, meetings, rallies,

parades, or other similar assemblies, for the purpose of soliciting
votes and/or undertaking any campaign or propaganda for or against
a candidate;

(3) Making speeches, announcements or commentaries, or holding

interviews for or against the election of any candidate for public office;

(4) Publishing or distributing campaign literature or materials

designed to support or oppose the election of any candidate; or

(5) Directly or indirectly soliciting votes, pledges or support for or

against a candidate.

The foregoing enumerated acts if performed for the purpose of

enhancing the chances of aspirants for nomination for candidacy to a
public office by a political party, aggroupment, or coalition of parties
shall not be considered as election campaign or partisan election
activity.

Public expressions or opinions or discussions of probable issues in a

forthcoming election or on attributes of or criticisms against probable
candidates proposed to be nominated in a forthcoming political party
convention shall not be construed as part of any election campaign or
partisan political activity contemplated under this Article.

Section 80. Election campaign or partisan political activity outside

campaign period. - It shall be unlawful for any person, whether or not
a voter or candidate, or for any party, or association of persons, to
engage in an election campaign or partisan political activity except
during the campaign period: Provided, That political parties may hold
political conventions or meetings to nominate their official candidates
within thirty days before the commencement of the campaign period
and forty-five days for Presidential and Vice-Presidential election.
Section 81. Intervention of foreigners. - It shall be unlawful for any
foreigner, whether judicial or natural person, to aid any candidate or
political party, directly or indirectly, or take part in or influence in any
manner any election, or to contribute or make any expenditure in
connection with any election campaign or partisan political activity.

Section 82. Lawful election propaganda. - Lawful election

propaganda shall include:

(a) Pamphlets, leaflets, cards, decals, stickers or other written or

printed materials of a size not more than eight and one-half inches in
width and fourteen inches in length;

(b) Handwritten or printed letters urging voters to vote for or against

any particular candidate;

(c) Cloth, paper or cardboard posters, whether framed or posted, with

an area exceeding two feet by three feet, except that, at the site and
on the occasion of a public meeting or rally, or in announcing the
holding of said meeting or rally, streamers not exceeding three feet
by eight feet in size, shall be allowed: Provided, That said streamers
may not be displayed except one week before the date of the meeting
or rally and that it shall be removed within seventy-two hours after
said meeting or rally; or

(d) All other forms of election propaganda not prohibited by this Code
as the Commission may authorize after due notice to all interested
parties and hearing where all the interested parties were given an
equal opportunity to be heard: Provided, That the Commission's
authorization shall be published in two newspapers of general
circulation throughout the nation for at least twice within one week
after the authorization has been granted.

Section 83. Removal, destruction or defacement of lawful election

propaganda prohibited. - It shall be unlawful for any person during the
campaign period to remove, destroy, obliterate, or in any manner
deface or tamper with, or prevent the distribution of lawful election
propaganda.
Section 84. Requirements for published or printed election
propaganda. - Any newspaper, newsletter, newsweekly, gazette or
magazine advertising, posters, pamphlets, circulars, handbills,
bumper stickers, streamers, simple list of candidates or any published
or printed political matter for or against a candidate or group of
candidates to any public office shall bear and be identified by the
words "paid for by" followed by the true and correct name and
address of the payor and by the words "printed by" followed by the
true and correct name and address of the printer.

Section 85. Prohibited forms of election propaganda. - It shall be

unlawful:

(a) To print, publish, post or distribute any poster, pamphlet, circular,

handbill, or printed matter urging voters to vote for or against any
candidate unless they bear the names and addresses of the printer
and payor as required in Section 84 hereof;

(b) To erect, put up, make use of, attach, float or display any
billboard, tinplate-poster, balloons and the like, of whatever size,
shape, form or kind, advertising for or against any candidate or
political party;

(c) To purchase, manufacture, request, distribute or accept electoral

propaganda gadgets, such as pens, lighters, fans of whatever nature,
flashlights, athletic goods or materials, wallets, shirts, hats,
bandanas, matches, cigarettes and the like, except that campaign
supporters accompanying a candidate shall be allowed to wear hats
and/or shirts or T-shirts advertising a candidate;

(d) To show or display publicly any advertisement or propaganda for

or against any candidate by means of cinematography, audio-visual
units or other screen projections except telecasts which may be
allowed as hereinafter provided; and

(e) For any radio broadcasting or television station to sell or give free
of charge air time for campaign and other political purposes except as
authorized in this Code under the rules and regulations promulgated
by the Commission pursuant thereto.
Any prohibited election propaganda gadget or advertisement shall be
stopped, confiscated or torn down by the representative of the
Commission upon specific authority of the Commission.

Section 86. Regulation of election propaganda through mass media. -

(a) The Commission shall promulgate rules and regulations regarding

the sale of air time for partisan political purposes during the campaign
period to insure the equal time as to duration and quality in available
to all candidates for the same office or political parties at the same
rates or given free of charge; that such rates are reasonable and not
higher than those charged other buyers or users of air time for non-
political purposes; that the provisions of this Code regarding the
limitation of expenditures by candidates and political parties and
contributions by private persons, entities and institutions are
effectively enforced; and to ensure that said radio broadcasting and
television stations shall not unduly allow the scheduling of any
program or permit any sponsor to manifestly favor or oppose any
candidate or political party by unduly or repeatedly referring to or
including said candidate and/or political party in such program
respecting, however, in all instances the right of said stations to
broadcast accounts of significant or newsworthy events and views on
matters of public interest.

(b) All contracts for advertising in any newspaper, magazine,

periodical or any form of publication promoting or opposing the
candidacy of any person for public office shall, before its
implementation, be registered by said newspaper, magazine,
periodical or publication with the Commission. In every case, it shall
be signed by the candidate concerned or by the duly authorized
representative of the political party.

(c) No franchise or permit to operate a radio or television station shall

be granted or issued, suspended or cancelled during the election
period.

Any radio or television stations, including that owned or controlled by

the Government, shall give free of charge equal time and prominence
to an accredited political party or its candidates if it gives free of
charge air time to an accredited political party or its candidates for
political purposes.

In all instances, the Commission shall supervise the use and

employment of press, radio and television facilities so as to give
candidates equal opportunities under equal circumstances to make
known their qualifications and their stand on public issues within the
limits set forth in this Code on election spending.

Rules and regulations promulgated by the Commission under and by

authority of this section shall take effect on the seventh day after their
publication in at least two daily newspapers of general circulation.
Prior to the effectivity of said rules and regulations, no political
advertisement or propaganda for or against any candidate or political
party shall be published or broadcast through the mass media.

Violation of the rules and regulations of the Commission issued to

implement this section shall be an election offense punishable under
Section 264 hereof.

Section 87. Rallies, meetings and other political activities. - Subject to

the requirements of local ordinances on the issuance of permits, any
political party supporting official candidates or any candidate
individually or jointly with other aspirants may hold peaceful political
rallies, meetings, and other similar activities during the campaign
period: Provided, That all applications for permits to hold meetings,
rallies and other similar political activities, receipt of which must be
acknowledged in writing and which application shall be immediately
posted in a conspicuous place in the city or municipal building, shall
be acted upon in writing by local authorities concerned within three
days after the filing thereof and any application not acted upon within
said period shall be deemed approved: and Provided, further, That
denial of any application for said permit shall be appealable to the
provincial election supervisor or to the Commission whose decision
shall be made within forty-eight hours and which shall be final and
executory: Provided, finally, That one only justifiable ground for denial
is a prior written application by any candidate or political party for the
same purpose has been approved.
Section 88. Public rally. - Any political party or candidate shall notify
the election registrar concerned of any public rally said political party
or candidate intends to organize and hold in the city or municipality,
and within seven working days thereafter submit to the election
registrar a statement of expenses incurred in connection therewith.

Section 89. Transportation, food and drinks. - It shall be unlawful for

any candidate, political party, organization, or any person to give or
accept, free of charge, directly or indirectly, transportation, food or
drinks or things of value during the five hours before and after a
public meeting, on the day preceding the election, and on the day of
the election; or to give or contribute, directly or indirectly, money or
things of value for such purpose.

Section 90. Comelec space. - The Commission shall procure space in

at least one newspaper of general circulation in every province or
city: Provided, however, That in the absence of said newspaper,
publication shall be done in any other magazine or periodical in said
province or city, which shall be known as "Comelec Space" wherein
candidates can announce their candidacy. Said space shall be
allocated, free of charge, equally and impartially by the Commission
among all candidates within the area in which the newspaper is
circulated.

Section 91. Comelec poster area. - Whenever practicable, the

Commission shall also designate and provide for a common poster
are in strategic places in each town wherein candidates can
announce and further their candidacy through posters, said space to
be likewise allocated free of charge, equally and impartially by the
Commission among all the candidates concerned.

Section 92. Comelec time. - The Commission shall procure radio and
television time to be known as "Comelec Time" which shall be
allocated equally and impartially among the candidates within the
area of coverage of all radio and television stations. For this purpose,
the franchise of all radio broadcasting and television station are
hereby amended so as to provide radio television time, free of
charge, during the period of the campaign.
Section 93. Comelec information bulletin. - The Commission shall
cause the printing, and supervise the dissemination of bulletins to be
known as "Comelec Bulletin" which shall be of such size as to
adequately contain the picture, bio-data and program of government
of every candidate. Said bulletin shall be disseminated to the voters
or displayed in such places as to give due prominence thereto. Any
candidate may reprint at his expense, any "Comelec Bulletin" upon
prior authority of the Commission: Provided, That the printing of the
names of the different candidates with their bio-data must be in
alphabetical order irrespective of party affiliation.

ARTICLE XI
ELECTORAL CONTRIBUTIONS AND EXPENDITURES

Section 94. Definitions. - As used in this Article:

(a) The term "contribution" includes a gift, donation, subscription,

loan, advance or deposit of money or anything of value, or a contract,
promise or agreement to contribute, whether or not legally
enforceable, made for the purpose of influencing the results of the
elections but shall not include services rendered without
compensation by individuals volunteering a portion or all of their time
in behalf of a candidate or political party. It shall also include the use
of facilities voluntarily donated by other persons, the money value of
which can be assessed based on the rates prevailing in the area.

(b) The term "expenditure" includes the payment or delivery of money

of anything of value, or a contract, promise or agreement to make an
expenditure, for the purpose of influencing the results of the election.
It shall also include the use of facilities personally owned by the
candidate, the money value of the use of which can be assessed
based on the rates prevailing in the area.

(c) The term "person" includes an individual, partnership, committee,

association, corporation, and any other organization or group of
persons.
Section 95. Prohibited contributions. - No contribution for purposes of
partisan political activity shall be made directly or indirectly by any of
the following:

(a) Public or private financial institutions: Provided, however, That

nothing herein shall prevent the making of any loan to a candidate or
political party by any such public or private financial institutions legally
in the business of lending money, and that the loan is made in
accordance with laws and regulations and in the ordinary course of
business;

(b) Natural and juridical persons operating a public utility or in

possession of or exploiting any natural resources of the nation;

(c) Natural and juridical persons who hold contracts or sub-contracts

to supply the government or any of its divisions, subdivisions or
instrumentalities, with goods or services or to perform construction or
other works;

(d) Natural and juridical persons who have been granted franchises,
incentives, exemptions, allocations or similar privileges or
concessions by the government or any of its divisions, subdivisions or
instrumentalities, including government-owned or controlled
corporations;

(e) Natural and juridical persons who, within one year prior to the date
of the election, have been granted loans or other accommodations in
excess of P100,000 by the government or any of its divisions,
subdivisions or instrumentalities including government-owned or
controlled corporations;

(f) Educational institutions which have received grants of public funds

amounting to no less than P100,000.00;

(g) Officials or employees in the Civil Service, or members of the

Armed Forces of the Philippines; and

(h) Foreigners and foreign corporations.

It shall be unlawful for any person to solicit or receive any contribution
from any of the persons or entities enumerated herein.

Section 96. Soliciting or receiving contributions from foreign sources.

- It shall be unlawful for any person, including a political party or
public or private entity to solicit or receive, directly or indirectly, any
aid or contribution of whatever form or nature from any foreign
national, government or entity for the purposes of influencing the
results of the election.

Section 97. Prohibited raising of funds. - It shall be unlawful for any

person to hold dances, lotteries, cockfights, games, boxing bouts,
bingo, beauty contests, entertainments, or cinematographic, theatrical
or other performances for the purpose of raising funds for an election
campaign or for the support of any candidate from the
commencement of the election period up to and including election
day; or for any person or organization, whether civic or religious,
directly or indirectly, to solicit and/or accept from any candidate for
public office, or from his campaign manager, agent or representative,
or any person acting in their behalf, any gift, food, transportation,
contribution or donation in cash or in kind from the commencement of
the election period up to and including election day; Provided, That
normal and customary religious stipends, tithes, or collections on
Sundays and/or other designated collection days, are excluded from
this prohibition.

Section 98. True name of contributor required. - No person shall

make any contribution in any name except his own nor shall any
candidate or treasurer of a political party receive a contribution or
enter or record the same in any name other than that of the person by
whom it was actually made.

Section 99. Report of contributions. - Every person giving

contributions to any candidate, treasurer of the party, or authorized
representative of such candidate or treasurer shall, not later than
thirty days after the day of the election, file with the Commission a
report under oath stating the amount of each contribution, the name
of the candidate, agent of the candidate or political party receiving the
contribution, and the date of the contribution.
Section 100. Limitations upon expenses of candidates. - No
candidate shall spend for his election campaign an aggregate amount
exceeding one peso and fifty centavos for every voter currently
registered in the constituency where he filed his candidacy: Provided,
That the expenses herein referred to shall include those incurred or
caused to be incurred by the candidate, whether in cash or in kind,
including the use, rental or hire of land, water or aircraft, equipment,
facilities, apparatus and paraphernalia used in the campaign:
Provided, further, That where the land, water or aircraft, equipment,
facilities, apparatus and paraphernalia used is owned by the
candidate, his contributor or supporter, the Commission is hereby
empowered to assess the amount commensurate with the expenses
for the use thereof, based on the prevailing rates in the locality and
shall be included in the total expenses incurred by the candidate.

Section 101. Limitations upon expenses of political parties. - A duly

accredited political party may spend for the election of its candidates
in the constituency or constituencies where it has official candidates
an aggregate amount not exceeding the equivalent of one peso and
fifty centavos for every voter currently registered therein. Expenses
incurred by branches, chapters, or committees of such political party
shall be included in the computation of the total expenditures of the
political party.

Expenses incurred by other political parties shall be considered as

expenses of their respective individual candidates and subject to
limitation under Section 100 of this Code.

Section 102. Lawful expenditures. - To carry out the objectives of the

preceding sections, no candidate or treasurer of a political party shall,
directly or indirectly, make any expenditure except for the following
purposes:

(a) For travelling expenses of the candidates and campaign

personnel in the course of the campaign and for personal expenses
incident thereto;

(b) For compensation of campaigners, clerks, stenographers,

messengers, and other persons actually employed in the campaign;
(c) For telegraph and telephone tolls, postage, freight and express
delivery charges;

(d) For stationery, printing and distribution of printed matters relative

to candidacy;

(e) For employment of watchers at the polls;

(f) For rent, maintenance and furnishing of campaign headquarters,

office or place of meetings;

(g) For political meetings and rallies and the use of sound systems,
lights and decorations during said meetings and rallies;

(h) For newspaper, radio, television and other public advertisements;

(i) For employment of counsel, the cost of which shall not be taken
into account in determining the amount of expenses which a
candidate or political party may have incurred under Section 100 and
101 hereof;

(j) For copying and classifying list of voters, investigating and

challenging the right to vote of persons registered in the lists the
costs of which shall not be taken into account in determining the
amount of expenses which a candidate or political party may have
incurred under Sections 100 and 101 hereof; or

(k) For printing sample ballots in such color, size and maximum
number as may be authorized by the Commission and the cost of
such printing shall not be taken into account in determining the
amount of expenses which a candidate or political party may have
incurred under Sections 100 and 101 hereof.

Section 103. Persons authorized to incur election expenditures. - No

person, except the candidate, the treasurer of a political party or any
person authorized by such candidate or treasurer, shall make any
expenditure in support of or in opposition to any candidate or political
party. Expenditures duly authorized by the candidate or the treasurer
of the party shall be considered as expenditures of such candidate or
political party.
The authority to incur expenditures shall be in writing, copy of which
shall be furnished the Commission signed by the candidate or the
treasurer of the party and showing the expenditures so authorized,
and shall state the full name and exact address of the person so
designated.

Section 104. Prohibited donations by candidates, treasurers of parties

or their agents. - No candidate, his or her spouse or any relative
within the second civil degree of consanguinity or affinity, or his
campaign manager, agent or representative shall during the
campaign period, on the day before and on the day of the election,
directly or indirectly, make any donation, contribution or gift in cash or
in kind, or undertake or contribute to the construction or repair of
roads, bridges, school buses, puericulture centers, medical clinics
and hospitals, churches or chapels cement pavements, or any
structure for public use or for the use of any religious or civic
organization: Provided, That normal and customary religious dues or
contributions, such as religious stipends, tithes or collections on
Sundays or other designated collection days, as well as periodic
payments for legitimate scholarships established and school
contributions habitually made before the prohibited period, are
excluded from the prohibition.

The same prohibition applies to treasurers, agents or representatives

of any political party.

Section 105. Accounting by agents of candidate or treasurer. - Every

person receiving contributions or incurring expenditures by authority
of the candidate or treasurer of the party shall, on demand by the
candidate or treasurer of the party and in any event within five days
after receiving such contribution or incurring such expenditure, render
to the candidate or the treasurer of the party concerned, a detailed
account thereof with proper vouchers or official receipts.

Section 106. Records of contributions and expenditures. -

(a) It shall be the duty of every candidate, treasurer of the political

party and person acting under the authority of such candidate or
treasurer to issue a receipt for every contribution received and to
obtain and keep a receipt stating the particulars of every expenditure
made.

(b) Every candidate and treasurer of the party shall keep detailed, full,
and accurate records of all contributions received and expenditures
incurred by him and by those acting under his authority, setting forth
therein all information required to be reported.

(c) Every candidate and treasurer of the party shall be responsible for
the preservation of the records of contributions and expenditures,
together with all pertinent documents, for at least three years after the
holding of the election to which they pertain and for their production
for inspection by the Commission or its duly authorized
representative, or upon presentation of a subpoena duces tecum duly
issued by the Commission. Failure of the candidate or treasurer to
preserve such records or documents shall be deemed prima facie
evidence of violation of the provisions of this Article.

Section 107. Statement of contributions and expenditures. - Every

candidate and treasurer of the political party shall, not later than
seven days, or earlier than ten days before the day of the election, file
in duplicate with the office indicated in the following section, full, true
and itemized, statement of all contributions and expenditures in
connection with the election.

Within thirty days after the day of the election, said candidate and
treasurer shall also file in duplicate a supplemental statement of all
contribution and expenditures not included in the statement filed prior
to the day of the election.

Section 108. Place for filing statements. - The statements of

contributions and expenditures shall be filed as follows:

(a) Those of candidates for President and Vice-President, with the

Commission.

(b) Those of candidates for Members of the Batasang Pambansa,

with the provincial election supervisor concerned, except those of
candidates in the National Capital Region which shall be filed with the
regional election director of said region.
(c) Those of candidates for provincial offices, with the provincial
election supervisor concerned.

(d) Those of candidates for city, municipal and barangay offices, with
the election registrar concerned.

If the statement is sent by mail, it shall be by registered mail, and the

date on which it was registered with the post office may be
considered as the filing date thereof if confirmed on the same date by
telegram or radiogram addressed to the office or official with whom
the statement should be filed.

The provincial election supervisors and election registrars concerned

shall, within fifteen days after the last day for the filing of the
statements, send to the Commission duplicate copies of all
statements filed with them.

Section 109. Form and contents of statement. - The statement shall

be in writing, subscribed and sworn to by the candidate or by the
treasurer of the party, shall be complete as of the date next preceding
the date of filing and shall set forth in detail (a) the amount of
contribution, the date of receipt, and the full name and exact address
of the person from whom the contribution was received; (b) the
amount of every expenditure, the date thereof, the full name and
exact address of the person to whom payment was made, and the
purpose of the expenditure; (c) any unpaid obligation, its nature and
amount, and to whom said obligation is owing; and (d) such other
particulars which the Commission may require.

If the candidate or treasurer of the party has received no contribution,

made no expenditure, or has no pending obligation, the statement
shall reflect such fact.

Section 110. Preservation and inspection of statements. - All

statements of contributions and expenditures shall be kept and
preserved at the office where they are filed and shall constitute part of
the public records thereof for three years after the election to which
they pertain. They shall not be removed therefrom except upon order
of the Commission or of a competent court and shall, during regular
office hours, be subject and open to inspection by the public. The
officer in-charge thereof, shall, on demand, furnish certified copies of
any statement upon payment of the fee prescribed under Section 270
hereof.

It shall be the duty of the Commission to examine all statements of

contributions and expenditures of candidates and political parties to
determine compliance with the provisions of this Article.

Section 111. Effect of failure to file statement. - In addition to other

sanctions provided in this Code, no person elected to any public
office shall enter upon the duties of his office until he has filed the
statement of contributions and expenditures herein required.

The same prohibition shall apply if the political party which nominated
the winning candidate fails to file the statements required herein
within the period prescribed by this Code.

Section 112. Report of contractor and business firms. - Every person

or firm to whom any electoral expenditure is made shall, within thirty
days after the day of the election, file with the Commission a report
setting forth the full names and exact addresses of the candidates,
treasurers of political parties, and other persons incurring such
expenditures, the nature or purpose of each expenditure, the date
and costs thereof, and such other particulars as the Commission may
require. The report shall be signed and sworn to by the supplier or
contractor, or in case of a business firm or association, by its
president or general manager.

It shall be the duty of such person or firm to whom an electoral

expenditure is made to require every agent of a candidate or of the
treasurer of a political party to present written authority to incur
electoral expenditures in behalf of such candidate or treasurer, and to
keep and preserve at its place of business, subject to inspection by
the Commission or its authorized representatives, copies of such
written authority, contracts, vouchers, invoices and other records and
documents relative to said expenditures for a period of three years
after the date of the election to which they pertain.
It shall be unlawful for any supplier, contractor or business firm to
enter into contract involving election expenditures with
representatives of candidates or political parties without such written
authority.

ARTICLE XII
REGISTRATION OF VOTERS

Section 113. Permanent List of Voters. - Any provision of Presidential

Decree No. 1896 to the contrary notwithstanding, the list of voters
prepared and used in the election of Members of the Batasang
Pambansa on May 14, 1984, with such additions, cancellations and
corrections as may hereafter be made in accordance with the
provisions of this Code, shall constitute the permanent list of voters in
each city or municipality, as the case may be, until 1996.

For purposes of the next following election, the Commission, through

the election registrars, shall assign the proper precincts and polling
places to the registered voters in said list. Written notice of any such
change shall be made to the affected voters within two weeks
therefrom.

Section 114. Renewal of the Permanent List. - The list of voters

prepared in accordance with the preceding section shall be renewed
in nineteen hundred and ninety-six and every twelve years thereafter.

Section 115. Necessity of Registration. - In order that a qualified

elector may vote in any election, plebiscite or referendum, he must be
registered in the permanent list of voters for the city or municipality in
which he resides.

Section 116. Who may be registered in the list. - All persons having
complied with the requisites herein prescribed for the registration of
voters shall be registered in the list, provided they possess all the
qualifications and none of the disqualifications of a voter. Those who
failed to register in the election of 1984, for any reason whatsoever,
may register in accordance with the provisions of this Code. Any
person who may not have on the date of registration the age or
period of residence required may also be registered upon proof that
on the date of the election, plebiscite or referendum he shall have
such qualifications.

Section 117. Qualifications of a voter. - Every citizen of the

Philippines, not otherwise disqualified by law, eighteen years of age
or over, who shall have resided in the Philippines for one year and in
the city or municipality wherein he proposes to vote for at least six
months immediately preceding the election, may be registered as a
voter.

Any person who transfers residence to another city, municipality or

country solely by reason of his occupation; profession; employment in
private or public service; educational activities; work in military or
naval reservations; service in the army, navy or air force; the
constabulary or national police force; or confinement or detention in
government institutions in accordance with law, shall be deemed not
to have lost his original residence.

Section 118. Disqualifications. - The following shall be disqualified

from voting:

(a) Any person who has been sentenced by final judgment to suffer
imprisonment for not less than one year, such disability not having
been removed by plenary pardon or granted amnesty: Provided,
however, That any person disqualified to vote under this paragraph
shall automatically reacquire the right to vote upon expiration of five
years after service of sentence.

(b) Any person who has been adjudged by final judgment by

competent court or tribunal of having committed any crime involving
disloyalty to the duly constituted government such as rebellion,
sedition, violation of the anti-subversion and firearms laws, or any
crime against national security, unless restored to his full civil and
political rights in accordance with law: Provided, That he shall regain
his right to vote automatically upon expiration of five years after
service of sentence.

(c) Insane or incompetent persons as declared by competent

authority.
Section 119. Preparation of the permanent list of voters. - For the
preparation of the permanent list of voters in nineteen hundred and
ninety-six and every twelve years thereafter, the board of election
inspectors referred to in Article XIV hereof of each election precinct
shall hold four meetings on the seventh Saturday, seventh Sunday,
sixth Saturday and sixth Sunday preceding the date of the regular
election to be held. At these meetings the board shall prepare eight
copies of the list of voters of the precinct wherein it shall register the
electors applying for registration.

Section 120. Preparation of the list before other regular elections. -

For the preparation of the list before other regular elections, the board
of election inspectors of each election precinct shall meet in the
polling place on the seventh and sixth Saturdays before the day of
the election. At these meetings, the board shall prepare and certify
eight copies of the list of voters of the corresponding precinct
transferring thereto the names of the voters appearing in the list used
in the preceding election and including therein such new qualified
voters as may apply for registration, as provided in Section 126
hereof.

Section 121. Preparation of the list before any special election,

plebiscite or referendum. - For the preparation of the list of voters
before a special election, plebiscite or referendum, the board of
elections inspectors of each election precinct shall hold a meeting in
the polling place on the second Saturday following the day of the
proclamation calling such election. At this meeting the board shall
transfer the names of the voters appearing in the list used in the
preceding election and enter those of the newly registered voters.

Section 122. Transfer of names of voters from the permanent list to

the current one. - The transfer of the names of the voters of the
precinct already registered in the list used in the preceding election to
the list to be made as provided for in the two preceding sections is a
ministerial duty of the board, and any omission or error in copying
shall be corrected motu proprio, or upon petition of the interested
party, without delay and in no case beyond three days from the time
such error is noticed; and if the board should refuse, the interested
party may apply for such correction to the proper municipal or
metropolitan trial court which shall decide the case without delay and
in no case beyond three days from the date the petition is filed. The
decision of the proper municipal or metropolitan trial court shall be
final and unappealable in whatever form or manner.

To facilitate the transfer of names of voters, the election registrar

shall deliver the book of voters to the board of election inspectors on
the day before the registration of voters, to be returned after the last
day of registration.

Section 123. Cancellation and exclusion in the transfer of names. - In

transferring the names of the voters of the precinct from the list used
in the preceding election to the current list, the board shall exclude
those who have applied for the cancellation of their registration, those
who have died, those who did not vote in the immediately preceding
two successive regular elections, those who have been excluded by
court orders issued in accordance with the provisions of this Code,
and those who have been disqualified, upon motion of any member of
the board or of any elector or watcher, upon satisfactory proof to the
board and upon summons to the voter in cases of disqualification.
The motion shall be decided by the board without delay and in no
case beyond three days from its filing. Should the board deny the
motion, or fail to act thereon within the period herein fixed, the
interested party may apply for such exclusion to the municipal or
metropolitan trial court which shall decide the petition without delay
and in no case beyond three days from the date the petition is filed.
The decision of the court shall be final. The poll clerk shall keep a
record of these exclusions and shall furnish three copies thereof to
the election registrar who shall, in turn keep one copy and send the
two other copies thereof to the provincial election supervisor and the
Commission, to be attached by them to the permanent list under their
custody.

Section 124. Meeting to close the list of voters. - The board of

election inspectors shall also meet on the second Saturday
immediately preceding the day of the regular election, or on the
second day immediately preceding the day of the special election,
plebiscite or referendum whether it be Sunday or a legal holiday, for
the purpose of making such inclusions, exclusions, and corrections
as may be or may have been ordered by the courts, stating opposite
every name so corrected, added, or cancelled, the date of the order
and the court which issued the same; and for the consecutive
numbering of the voters of the election precinct.

Should the board fail to include in the list of voters any person
ordered by competent court to be so included, said person shall,
upon presentation of a certified copy of the order of inclusion and
upon proper identification, be allowed by the board to vote.

Should the board fail to exclude from the list of voters any person
ordered by the court to be so excluded, the board shall not permit
said person to vote upon presentation to it by any interested party of
a certified copy of the order of exclusion.

Section 125. Re-registration. - A voter who is registered in the

permanent list of voters need not register anew for subsequent
elections unless he transfer residence to another city or municipality,
or his registration has been cancelled on the ground of
disqualification and such disqualification has been lifted or removed.
Likewise a voter whose registration has been cancelled due to failure
to vote in the preceding regular election may register anew in the city
or municipality where he is qualified to vote.

Section 126. Registration of voters. - On the seventh and sixth

Saturdays before a regular election or on the second Saturday
following the day of the proclamation calling for a new special
election, plebiscite or referendum, any person desiring to be
registered as a voter shall accomplish in triplicate before the board of
election inspectors a voter's affidavit in which shall be stated the
following data:

(a) Name, surname, middle name, maternal surname;

(b) Date and place of birth;

(c) Citizenship;

(d) Periods of residence in the Philippines and in the place of

registration;
(e) Exact address with the name of the street and house number or in
case there is none, a brief description of the locality and the place;

(f) A statement that the applicant has not been previously registered,
otherwise he shall be required to attach a sworn application for
cancellation of his previous registration; and

(g) Such other information or data which may be required by the

Commission.

The voter's affidavit shall also contain three specimens of the

applicant's signature and clear and

legible prints of his left and right hand thumbmarks and shall be
sworn to and filed together with four copies of the latest identification
photograph to be supplied by the applicant.

The oath of the applicant shall include a statement that he does not
have any of the disqualifications of a voter and that he has not been
previously registered in the precinct or in any other precinct.

Before the applicant accomplishes his voter's affidavit, the board of

election inspectors shall appraise the applicant of the qualifications
and disqualifications prescribed by law for a voter. It shall also see to
it that the accomplished voter's affidavit contain all the data therein
required and that the applicant's specimen signatures, the prints of
his left and right hand thumbmarks and his photograph are properly
affixed in each of the voter's affidavit.

Section 127. Illiterate or disabled applicants. - The voter's affidavit of

an illiterate or physically disabled person may be prepared by any
relative within the fourth civil degree of consanguinity of affinity or by
any member of the board of election inspectors who shall prepare the
affidavit in accordance with the data supplied by the applicant.

Section 128. Voter's identification. - The identification card issued to

the voter shall serve and be considered as a document for the
identification of each registered voter: Provided, however, That if the
voter's identity is challenged on election day and he cannot present
his voter identification card, his identity may be established by the
specimen signatures, the photograph or the fingerprints in his voter's
affidavit in the book of voters. No extra or duplicate copy of the voter
identification card shall be prepared and issued except upon authority
of the Commission.

Each identification card shall bear the name and the address of the
voter, his date of birth, sex, civil status, occupation, his photograph,
thumbmark, the city or municipality and number of the polling place
where he is registered, his signature, his voter serial number and the
signature of the chairman of the board of election inspectors.

Any voter previously registered under the provisions of Presidential

Decree Numbered 1896 who desires to secure a voter identification
card shall, on any registration day, provide four copies of his latest
identification photograph to the board of election inspectors which
upon receipt thereof shall affix one copy thereof to the voter's affidavit
in the book of voters, one copy to the voter identification card to be
issued to the voter and transmit through the election registrar, one
copy each to the provincial election supervisor and the Commission
to be respectively attached to the voter's affidavit in their respective
custody.

Section 129. Action by the board of election inspectors. - Upon

receipt of the voter's affidavit, the board of election inspectors shall
examine the data therein. If it finds that the applicant possesses all
the qualifications and none of the disqualifications of a voter, he shall
be registered. Otherwise, he shall not be registered.

The name and address of each registered voter shall, immediately

upon his registration, be entered in the proper alphabetical group in
the list after which the voter identification card shall be issued to the
voter.

Section 130. Provincial central file of registered voters. - There shall

be a provincial central file of registered voters containing the
duplicate copies of all approved voter's affidavits in each city and
municipality in the province which shall be under the custody and
supervision of the provincial election supervisor. The applications
shall be compiled alphabetically by precincts so as to make the file an
exact replica of the book of voters in the possession of the election
registrar.

Should the book of voters in the custody of the election registrar be

lost or destroyed at a time so close to the election day that there is no
time to reconstitute the same, the corresponding book of voters in the
provincial file shall be used during the voting.

Section 131. National central file of registered voters. - There shall

also be a national central file or registered voters consisting of the
triplicate copies of all approved voters' affidavits in all cities and
municipalities which shall be prepared and kept in the central office of
the Commission. The applications in the national central file shall be
compiled alphabetically according to the surnames of the registered
voters regardless of the place of registration.

Section 132. Preservation of voter's affidavits. - A copy of the affidavit

of each voter shall be kept by the board of election inspectors until
after the election when it shall deliver the same to the election
registrar together with the copies of the list of voters and other
election papers for use in the next election. The election registrar
shall compile the voter's affidavits by precinct alphabetically in a book
of voters. The other two copies shall be sent by the board of election
inspectors on the day following the date of the affidavit to the office of
the provincial election supervisor and the Commission in Manila. The
provincial election supervisor and the Commission shall respectively
file and preserve the voter's affidavits by city and municipality and in
alphabetical order of their surnames. The fourth copy shall be given
to the voter as evidence of his registration.

Section 133. Columns in the list of voters. - The list of voters shall be
arranged in columns as follows: In the first column there shall be
entered, at the time of closing of the list before the election, a number
opposite the name of each voter registered, beginning with number
one and continuing in consecutive order until the end of the list. In the
second column, the surnames of the registered voters shall be written
in alphabetical order followed by their respective first names, without
abbreviations of any kind. In the third column, the respective
residences of such persons with the name of the street and number,
or, in case there be none, a brief description of the locality or place. In
the fourth column, shall be entered the periods of residence in the
Philippines and in the city or municipality. In the fifth column, there
shall be entered on the day of the election the numbers of the ballots
which were given successively to each voter. In the sixth column, the
voter shall stamp on the day of the election the mark of the thumb of
his right hand and under said mark his signature. And in the seventh
column, the signature of the chairman of the board of election
inspectors who has handed the ballot to the voter. It will be sufficient
that the fifth, sixth, and seventh columns shall be filled in the copy of
the list under the custody of the board of election inspectors which
shall see to it that the thumbmark is stamped plainly.

Section 134. Certificate of the board of election inspectors in the list

of voters. - Upon the adjournment of each meeting for the registration
of voters, the board of election inspectors shall close each
alphabetical group of surnames of voters by writing the dates on the
next line in blank, which shall be forthwith signed by each member,
and, before adding a new name on the same page at the next
meeting, it shall write the following: "Added at the _ _ _ meeting"
specifying if it is the second third or fourth meeting of the board, as
the case may be. If the meeting adjourned is the last one for the
registration of voters, the board shall, besides closing each
alphabetical group of voters as above provided, add at the end of the
list a certificate (a) of the corrections and cancellations made in the
permanent list, specifying them, or that there has been none, and (b)
of the total number of voters registered in the precinct.

Section 135. Publication of the list. - At the first hour of the working
day following the last day of registration of voters, the poll clerk shall
deliver to the election registrar a copy of the list certified to by the
board of election inspectors as provided in the preceding section;
another copy, also certified, shall be sent to the provincial election
supervisor of the province, and another, likewise certified, shall be
sent to the Commission, in whose offices said copies shall be open to
public inspection during regular office hours. On the same day and
hour, the poll clerk shall also post a copy of the list in the polling place
in a secure place on the door or near the same at a height of a meter
and a half, where it may be conveniently consulted by the interested
parties. The chairman, poll clerk and the two members of the board of
election inspectors shall each keep a copy of the list which may be
inspected by the public in their residence or office during regular
office hours. Immediately after the meeting for the closing of the list,
the poll clerk shall also send a notice to the election registrar,
provincial election supervisor and the Commission regarding the
changes and the numbering above referred to, to be attached to the
copy of the list under their custody.

Section 136. Challenge of right to register. - Any person applying for

registration may be challenged before the board of election
inspectors on any registration day be any member, voter, candidate,
or watcher. The board shall then examine the challenged person and
shall receive such other evidence as it may deem pertinent, after
which it shall decide whether the elector shall be included in or
excluded from the list as may be proper. All challenges shall be heard
and decided without delay, and in no case beyond three days from
the date the challenge was made.

After the question has been decided, the board of election inspectors
shall give to each party a brief certified statement setting forth the
challenge and the decision thereon.

Section 137. Power of the board of election inspectors to administer

oaths and issue summons. - For the purpose of determining the right
of applicants to be registered as voters in the list, the board of
election inspectors shall have the same power to administer oaths, to
issue subpoena and subpoena duces tecum and to compel witnesses
to appear and testify, but the latter's fees and expenses

incident to the process shall be paid in advance by the party in whose

behalf the summons is issued.

Section 138. Jurisdiction in inclusion and exclusion cases. - The

municipal and metropolitan trial courts shall have original and
exclusive jurisdiction over all matters of inclusion and exclusion of
voters from the list in their respective municipalities or cities.
Decisions of the municipal or metropolitan trial courts may be
appealed directly by the aggrieved party to the proper regional trial
court within five days from receipt of notice thereof, otherwise said
decision of the municipal or metropolitan trial court shall become final
and executory after said period. The regional trial court shall decide
the appeal within ten days from the time the appeal was received and
its decision shall be immediately final and executory. No motion for
reconsideration shall be entertained by the courts.

Section 139. Petition for inclusion of voters in the list. - Any person
whose application for registration has been disapproved by the board
of election inspectors or whose name has been stricken out from the
list may apply, within twenty days after the last registration day, to the
proper municipal or metropolitan trial court, for an order directing the
board of election inspectors to include or reinstate his name in the
list, together with the certificate of the board of election inspectors
regarding his case and proof of service of notice of his petition upon a
member of the board of election inspectors with indication of the time,
place, and court before which the petition is to be heard.

Section 140. Voters excluded through inadvertence or registered with

an erroneous or misspelled name. - Any voter registered in the
permanent list who has not been included in the list prepared for the
election or who has been included therein with a wrong or misspelled
name shall have the right to file an application on any date with the
proper municipal or metropolitan trial court, for an order directing that
his name be reinstated in the list or that he be registered with his
correct name. He shall attach to such application a certified copy of
the entry of his name in the list of the preceding election, together
with proof that he has applied without success to the board of election
inspectors and that he has served notice thereof upon a member of
the board.

Section 141. Change of name of registered voter. - Any previously

registered voter whose name has been changed by reason of
marriage or by virtue of a court order may request the board of
election inspectors during any of its meetings held under this Article
that his registration in the list be recorded under his or her new name.

Section 142. Petition for exclusion of voters from the list. - Any
registered voter in a city or municipality may apply at any time except
during the period beginning with the twenty-first day after the last
registration day of any election up to and including election day with
the proper municipal or metropolitan trial court, for the exclusion of a
voter from the list, giving the name and residence of the latter, the
precinct in which he is registered, and the grounds for the challenge.
The petition shall be sworn to and accompanied by proof of notice to
the board of election inspectors concerned, if the same is duly
constituted, and to the challenged voters.

Section 143. Common rules governing judicial proceedings in the

matter of inclusion, exclusion, and correction of names of voters. -

(a) Outside of regular office hours no petition for inclusion, exclusion,

or correction of names of voters shall be received.

(b) Notices to the members of the board of election inspectors and to

challenged voters shall state the place, day and hour in which such
petition shall be heard, and such notice may be made by sending a
copy thereof by registered mail or by personal delivery or by leaving it
in the possession of a person of sufficient discretion in the residence
of the said person or, in the event that the foregoing procedure is not
practicable, by posting a copy in a conspicuous place in the city hall
or municipal building and in two other conspicuous places within the
city or municipality, at least ten days prior to the day set for the
hearing.

In the interest of justice and to afford the challenged voter every

opportunity to contest the petition for exclusion, the court concerned
may, when the challenged voter fails to appear in the first day set for
the hearing, order that notice be effected in such manner and within
such period of time as it may decide, which time shall in no case be
more than ten days from the day the respondent is first found in
default.

(c) Each petition shall refer to only one precinct.

(d) No costs shall be assessed in these proceedings. However, if the

court should be satisfied that the application has been filed for the
sole purpose of molesting the adverse party and causing him to incur
expenses, it may condemn the culpable party to pay the costs and
incidental expenses.

(e) Any candidate who may be affected by the proceedings may

intervene and present his evidence.
(f) The decision shall be based on the evidence presented. If the
question is whether or not the voter is real or fictitious, his non-
appearance on the day set for hearing shall be prima facie evidence
that the registered voter is fictitious. In no case shall a decision be
rendered upon a stipulation of facts.

(g) These applications shall be heard and decided without delay. The
decision shall be rendered within six hours after the hearing and
within ten days from the date of its filing in court. Cases appealed to
the regional trial court shall be decided within ten days from receipt of
the appeal in the office of the clerk of court. In any case, the court
shall decide these petitions not later than the day before the election
and the decision rendered thereon shall be immediately final and
executory, notwithstanding the provisions of Section 138 on the
finality of decisions.

Section 144. Canvass to check registration. - The election registrar

shall, once every two years or more often should the Commission
deem it necessary in order to preserve the integrity of the permanent
lists of voters, conduct verification by mail or house-to-house
canvass, or both, of the registered voters of any barangay for
purposes of exclusion proceedings.

Section 145. Annulment of permanent lists of voters. - Any book of

voters not prepared in accordance with the provisions of this Code or
the preparation of which has been effected with fraud, bribery,
forgery, impersonation, intimidation, force, or any other similar
irregularity or which list is statistically improbable may, upon verified
petition of any voter or election registrar, or duly registered political
party, and after notice and hearing, be annulled by the Commission:
Provided, That no order, ruling or decision annulling a book of voters
shall be executed within sixty days before an election.

Section 146. Reconstitution of lost or destroyed registration records. -

The Commission shall reconstitute all registration records which have
been lost or destroyed. For this purpose, it shall be the duty of the
election registrar to immediately report to the Commission any case
of loss or destruction of approved applications for registration in their
custody. Such reconstitution shall be made with the use of the
corresponding copies in the national or provincial central files of
registered voters: Provided, That if this is not feasible, the registered
voter concerned may be summoned by the election registrar to effect
such reconstitution by accomplishing a new application.
Reconstituted forms shall be clearly marked with the word
"reconstituted".

The reconstitution of any lost or destroyed application for registration

shall not affect the criminal liability of any person or persons who may
be responsible for such loss or destruction.

Section 147. Examination of registration records. - All registration

records in the possession of the city or municipal election registrar,
the provincial election supervisor, and the Commission shall, during
regular office hours, be open to examination by the public with
legitimate inquiries for purposes of election.

Law enforcement agencies shall, upon prior authorization by the

Commission, have access to said registration records should the
same be necessary to, or in aid of, their investigative functions and
duties, subject to regulations promulgated by the Commission.

Section 148. List of voters. - Fifteen days before the date of the
regular election or special election, referendum or plebiscite, the
board of election inspectors must post the final list of voters in each
precinct with each and every page thereof duly signed or subscribed
and sworn to by the members of the board of election inspectors and
that failure to comply with this provision will constitute an election
offense.

Any candidate or authorized representative of an accredited political

party, upon formal request made to an election registrar, shall be
entitled to a certified copy of the most recent list of voters in any
precinct, municipality, city or province, upon payment of a reasonable
fee as may be prescribed by the Commission.

ARTICLE XIII
PRECINCTS AND POLLING PLACES
Section 149. Precincts and their establishment. - The unit of territory
for the purpose of voting is the election precinct, and every barangay
as of the approval of this Act shall have at least one such precinct.

The Commission shall establish all election precincts.

The precincts actually established in the preceding regular election

shall be maintained, but the Commission may introduce such
adjustments, changes or new divisions or abolish them, if necessary:
Provided, however, That the territory comprising an election precinct
shall not be altered or a new precinct established within forty-five
days before a regular election and thirty days before a special
election or a referendum or plebiscite.

Section 150. Arrangements of election precincts. -

(a) Each election precinct shall have, as far as possible not more than
three hundred voters and shall comprise, as far as practicable,
contiguous and compact territory.

(b) When it appears that an election precinct contains more than

three hundred voters, the Commission shall, in the interest of orderly
election, and in order to facilitate the casting of votes, be authorized
to divide a precinct not later than one week after the last day of
registration of voters. But the polling place of all the precincts created
thereby shall be located in the same building or compound where the
polling place of the original precinct is located, and if this be not
feasible, in a place as close as possible to the polling place of the
original precinct: Provided, however, That the polling place of the new
precinct may be located elsewhere upon written petition of the
majority of the voters of the new precinct: Provided, further, That
when a precinct is divided into two or more precincts, the registered
voters shall be included in the precinct wherein they reside. Every
case of alteration of a precinct shall be duly published by posting a
notice of any change in conspicuous location in the precinct, and in
the municipal building or city hall, as the case may be.

(c) A municipality which has been merged with another municipality

shall constitute at least one election precinct, if the distance between
the remotest barangay of the merged municipality and the nearest
polling place in the municipality to which it has been merged shall, by
the shortest road, exceed five kilometers.

(d) An island or group of islands having one hundred and fifty or more
voters shall constitute a precinct.

(e) Any alteration of the election precincts or the establishment of

new ones shall be communicated to the provincial election
supervisor, the provincial superintendent of schools, etc. together
with the corresponding maps, which shall be published as prescribed
in the next succeeding sections.

Section 151. Publication of maps or precincts. - At least five days

before the first registration day preceding a regular election or special
election or a referendum or a plebiscite, the Commission shall,
through its duly authorized representative, post in the city hall or
municipal building and in three other conspicuous places in the city or
municipality and on the door of each polling place, a map of the city
or municipality showing its division into precincts with their respective
boundaries and indicating therein all streets and alleys in populous
areas and the location of each polling place.

These maps shall be kept posted until after the election, referendum
or plebiscite.

Section 152. Polling place. - A polling place is the building or place

where the board of election inspectors conducts its proceedings and
where the voters shall cast their votes.

Section 153. Designation of polling places. - The location of polling

places designated in the preceding regular election shall continue
with such changes as the Commission may find necessary, after
notice to registered political parties and candidates in the political unit
affected, if any, and hearing: Provided, That no location shall be
changed within forty-five days before a regular election and thirty
days before a special election or a referendum or plebiscite, except in
case it is destroyed or it cannot be used.

Section 154. Requirements for polling places. - Each polling place

shall be, as far as practicable, a ground floor and shall be of sufficient
size to admit and comfortably accommodate forty voters at one time
outside the guard rail for the board of election inspectors. The polling
place shall be located within the territory of the precinct as centrally
as possible with respect to the residence of the voters therein and
whenever possible, such location shall be along a public road. No
designation of polling places shall be changed except upon written
petition of the majority of the voters of the precinct or agreement of all
the political parties or by resolution of the Commission upon prior
notice and hearing.

A public building having the requirements prescribed in the preceding

paragraph shall be preferred as polling place.

Section 155. Building that shall not be used as polling places. - No

polling place shall be located in a public or private building owned,
leased, or occupied by any candidate or of any person who is related
to any candidate within the fourth civil degree of consanguinity or
affinity, or any officer of the government or leader of any political
party, group or faction, nor in any building or surrounding premises
under the actual control of a private entity, political party or religious
organization. In places where no suitable public building is available,
private school buildings may be used as polling places. No polling
place shall be located within the perimeter of or inside a military or
police camp or reservation or within a prison compound.

Any registered voter, candidate or political party may petition the

Commission not later than thirty days before the first registration day
for the transfer of the polling place from the prohibited buildings
provided herein. Such petition shall be heard and decided by the
Commission within twenty days from the filing of the petition. Failure
to effect the transfer of the polling place after the Commission found it
to be located in violation of this section within the period prescribed
herein shall be a ground for the postponement of the election in the
polling place concerned.

Section 156. Signs and flags of polling places. - On the day of the
voting as well as on any day that the board of election inspectors
might meet, every polling place shall have in front a sign showing the
number of the precinct to which it belongs and the Philippine flag
shall be hoisted at the proper height.
Section 157. Arrangement and contents of polling places. - Each
polling place shall conform as much as possible to the sketch on the
following page.

Section 158. Voting booth. - During the voting, there shall be in each
polling place a booth for every twenty voters registered in the
precinct. Each booth shall be open on the side fronting the table for
the board of election inspectors and its three sides shall be closed
with walls at least seventy centimeters wide and two meters high. The
upper part shall be covered, if necessary, to preserve the secrecy of
the ballot. Each booth shall have in the background a shelf so placed
that voters can write therein while standing and shall be kept clearly
lighted, by artificial lights, if necessary, during the voting.

The Commission shall post inside each voting booth and elsewhere
in the polling place on the day before the election, referendum and
plebiscite a list containing the names of all the candidates or the
issues or questions to be voted for, and shall at all times during the
voting period keep such list posted in said places.

Section 159. Guard rails. -

(a) In every polling place there shall be a guard rail between the
voting booths and the table for the board of election inspectors which
shall have separate entrance and exit. The booths shall be so
arranged that they can be accessible only by passing through the
guard rail and by entering through its open side facing the table of the
board of election inspectors.

(b) There shall also be a guard rail for the watchers between the
place reserved for them and the table for the board of election
inspectors and at a distance of not more than fifty centimeters from
the latter so that the watchers may see and read clearly during the
counting of the contents of the ballots and see and count the votes
recorded by the board of election inspectors member on the
corresponding tally sheets.

(c) There shall also be, if possible, guard rails separating the table of
the board of election inspectors from the voters waiting for their turn
to cast their votes, with entrance and exit to give them orderly access
to the table and the booths during the voting.

(d) The polling place shall be so arranged that the booths, the table,
the ballot boxes and the whole polling place, except what is being
written within the booths, shall be in plain view of the board of
election inspectors, the watchers and other persons who may be
within the polling place.

Section 160. Ballot boxes. -

(a) There shall be in each polling place on the day of the voting a
ballot box one side of which shall be transparent which shall be set in
a manner visible to the voting public containing two compartments,
namely, the compartment for valid ballots which is indicated by an
interior cover painted white and the compartment for spoiled ballots
which is indicated by an interior cover painted red. The boxes shall be
uniform throughout the Philippines and shall be solidly constructed
and shall be closed with three different locks as well as three
numbered security locks and such other safety devices as the
Commission may prescribe in such a way that they can not be
opened except by means of three distinct keys and by destroying
such safety devices.

(b) In case of the destruction or disappearance of any ballot box on

election day, the board of election inspectors shall immediately report
it to the city or municipal treasurer who shall furnish another box or
receptacle as equally adequate as possible. The election registrar
shall report the incident and the delivery of a new ballot box by the
fastest means of communication on the same day to the Commission
and to the provincial election supervisor.

Section 161. Tally boards. - At the beginning of the counting, there

shall be placed within the plain view of the board of election
inspectors, watchers and the public, a tally board where the names of
all the registered candidates or the issues or questions to be voted
upon shall be written, and the poll clerk shall record thereon the votes
received by each of them as the chairman of the board of election
inspectors reads the ballot.
Section 162. Furnishing of ballot boxes, forms, stationeries and
materials for election. - The Commission shall prepare and furnish the
ballot boxes, forms, stationeries and materials necessary for the
registration of voters and the holding of the election.

The provincial, city and municipal treasurer shall have custody of

such election paraphernalia, supplies and materials as are entrusted
to him under the law or rules of the Commission and shall be
responsible for their preservation and storage, and for any loss,
destruction, impairment or damage of any election equipment,
material or document in their possession furnished under this Code.

Section 163. Inspection of polling places. - Before the day of the

election, referendum or plebiscite, the Chairman of the Commission
shall, through its authorized representatives, see to it that all polling
places are inspected and such omissions and defects as may be
found corrected. The Commission shall keep the reports on these
inspections.

ARTICLE XIV
BOARD OF ELECTION INSPECTORS

Section 164. Composition and appointment of board of election

inspectors. - At least thirty days before the date when the voters list is
to be prepare in accordance with this Code, in the case of a regular
election or fifteen days before a special election, the Commission
shall, directly or through its duly authorized representatives,
constitute a board of election inspectors for each precinct to be
composed of a chairman and a poll clerk who must be public school
teachers, priority to be given to civil service eligibles, and two
members, each representing the two accredited political parties. The
appointment shall state the precinct to which they are assigned and
the date of the appointment.

Section 165. Oath of the members of the board of election inspectors.

- The members of the board of election inspectors, whether
permanent, substitute or temporary, shall before assuming their
office, take and sign an oath upon forms prepared by the
Commission, before an officer authorized to administer oaths or, in
his absence, before any other member of the board of election
inspectors present, or in case no one is present, they shall take it
before any voter. The oaths shall be sent immediately to the city or
municipal treasurer.

Section 166. Qualification of members of the board of election

inspectors. - No person shall be appointed chairman, member or
substitute member of the board of election inspectors unless he is of
good moral character and irreproachable reputation, a registered
voter of the city or municipality, has never been convicted of any
election offense or of any other crime punishable by more than six
months of imprisonment, or if he has pending against him an
information for any election offense. He must be able to speak and
write English or the local dialect.

Section 167. Disqualification. - No person shall serve as chairman or

member of the board of election inspectors if he is related within the
fourth civil degree of consanguinity or affinity to any member of the
board of election inspectors or to any candidate to be voted for in the
polling place or his spouse.

Section 168. Powers of the board of election inspectors. - The board

of election inspectors shall have the following powers and functions:

a. Conduct the voting and counting of votes in their respective polling

places;

b. Act as deputies of the Commission in the supervision and control

of the election in the polling places wherein they are assigned, to
assure the holding of the same in a free, orderly and honest manner;
and

c. Perform such other functions prescribed by this Code or by the

rules and regulations promulgated by the Commission.

Section 169. Voting privilege of members of board of election

inspectors. - Members of the board of election inspectors and their
substitutes may vote in the polling place where they are assigned on
election day: Provided, That they are registered voters within the
province, city or municipality where they are assigned: and Provided,
finally, That their voting in the polling places where they are not
registered voters be noted in the minutes of the board of election
inspectors.

Section 170. Relief and substitution of members of the board of

election inspectors. - Public school teachers who are members of the
board of election inspectors shall not be relieved nor disqualified from
acting as such members, except for cause and after due hearing.

Any member of the board of election inspectors, nominated by a

political party, as well as his substitute may at any time be relieved
from office and substituted with another having the legal qualifications
upon petition of the authorized representative of the party upon
whose nomination the appointment was made, and it shall be
unlawful to prevent said person from, or disturb him in, the
performance of the duties of the said office. A record of each case of
substitution shall be made, setting forth therein the hour in which the
replaced member has ceased in the office and the status of the work
of the board of election inspectors. Said record shall be signed by
each member of the board of election inspectors including the
incoming and outgoing officers.

Section 171. Vacancy in the board of election inspectors. - Every

vacancy in the board of election inspectors shall be filled for the
remaining period in the manner hereinbefore prescribed.

Section 172. Proceedings of the board of election inspectors. - The

meetings of the board of election inspectors shall be public and shall
be held only in the polling place authorized by the Commission.

The board of election inspectors shall have full authority to maintain

order within the polling place and its premises, to keep access thereto
open and unobstructed, and to enforce obedience to its lawful orders.
If any person shall refuse to obey lawful orders of the board of
election inspectors, or shall conduct himself in a disorderly manner in
its presence or within its hearing and thereby interrupt or disturb its
proceedings, the board of election inspectors may issue an order in
writing directing any peace officer to take such person into custody
until the adjournment of the meeting, but such order shall not be
executed as to prevent any person so taken into custody from
exercising his right to vote. Such order shall be executed by any
peace officer to whom it may be delivered, but if none be present, by
any other person deputized by the board of election inspectors in
writing.

Section 173. Prohibition of political activity. - No member of the board

of election inspectors shall engage in any partisan political activity or
take part in the election except to discharge his duties as such and to
vote.

Section 174. Functioning of the board of election inspectors. - The

board of election inspectors shall act through its chairman, and shall
decide without delay by majority vote all questions which may arise in
the performance of its duties.

Section 175. Temporary vacancies. - If, at the time of the meeting of

the board of election inspectors, any member is absent, or the office
is still vacant, the members present shall call upon the substitute or
the absent members to perform the duties of the latter; and, in case
such substitute cannot be found, the members present shall appoint
any non-partisan registered voter of the polling place to temporarily fill
said vacancy until the absent member appears or the vacancy is
filled. In case there are two or more members present, they shall act
jointly: Provided, That if the absent member is one who has been
proposed by an accredited political party, the representative of said
political party or in his absence the watchers belonging to said party
shall designate a registered voter of the polling place to temporarily
fill said vacancy: Provided, further, That in the event or refusal or
failure of either representative or watchers of said political party to
make the designation, the members of the board of election
inspectors present shall choose a non-partisan registered voter of the
polling place to fill the vacancy.

Section 176. Temporary designation of members of the board of

election inspectors by watchers. - If at the time the board of election
inspectors must meet, all the positions in the board of election
inspectors are vacant, or if not one of the appointed members shall
appear, the watchers present may designate voters of the polling
place to act in the place of said members until the absentees shall
appear or the vacancies are filled.

Section 177. Arrest of absent members. - The member or members

of the board of election inspectors present may order the arrest of
any other member or substitute thereof, who in their judgment, has
absented himself with intention of obstructing the performance of
duties of the board of election inspectors.

ARTICLE XV
WATCHERS

Section 178. Official watchers of candidates. - Every registered

political party, coalition of political parties and every independent
candidate shall each be entitled to one watcher in every polling place.

No person shall be appointed watcher unless he is a qualified voter of

the city or municipality, of good reputation and shall not have been
convicted by final judgment of any election offense or of any other
crime, must know how to read and write Pilipino, English, Spanish or
any of the prevailing local dialects, and not related within the fourth
civil degree of consanguinity or affinity to the chairman or any
member of the board of election inspectors in the polling place where
he seeks appointment as a watcher.

Each candidate, political party or coalition of political parties shall

designate in every province, highly urbanized city or district in the
Metropolitan Manila area, a representative authorized to appoint
watchers, furnishing the provincial election supervisor or the city
election registrar, as the case may be, the names of such
representatives. The provincial election supervisors shall furnish the
municipal election registrars and election registrars of component
cities with the list of such representatives.

In the case of Metropolitan Manila, the designation of the persons

authorized to appoint watchers shall be filed with the Commission,
which shall furnish the list of such representatives to the respective
city and municipal election registrars.
Section 179. Rights and duties of watchers. - Upon entering the
polling place, the watchers shall present and deliver to the chairman
of the board of election inspectors his appointment, and forthwith, his
name shall be recorded in the minutes with a notation under his
signature that he is not disqualified under the second paragraph of
Section 178. The appointments of the watchers shall bear the
personal signature or the facsimile signature of the candidate or the
duly authorized representatives of the political party or coalition of
political parties who appointed him or of organizations authorized by
the Commission under Section 180. The watchers shall have the right
to stay in the space reserved for them inside the polling place. They
shall have the right to witness and inform themselves of the
proceedings of the board of election inspectors, including its
proceedings during the registration of voters, to take notes of what
they may see or hear, to take photographs of the proceedings and
incidents, if any, during the counting of votes, as well as of election
returns, tally boards and ballot boxes, to file a protest against any
irregularity or violation of law which they believe may have been
committed by the board of election inspectors or by any of its
members or by any persons, to obtain from the board of election
inspectors a certificate as to the filing of such protest and/or of the
resolution thereon, to read the ballots after they shall have been read
by the chairman, as well as the election returns after they shall have
been completed and signed by the members of the board of election
inspectors without touching them, but they shall not speak to any
member of the board of election inspectors, or to any voter, or among
themselves, in such a manner as would distract the proceedings, and
to be furnished with a certificate of the number of votes in words and
figures cast for each candidate, duly signed and thumbmarked by the
chairman and all the members of the board of election inspectors.
Refusal of the chairman and the members of the board of election
inspectors to sign and furnish such certificate shall constitute an
election offense and shall be penalized under this Code.

Section 180. Other watchers. - The duly accredited citizens arm of

the Commission shall be entitled to appoint a watcher in every polling
place. Other civic, religious, professional, business, service, youth
and any other similar organizations, with prior authority of the
Commission, shall be entitled collectively to appoint one watcher in
every polling place.
ARTICLE XVI
OFFICIAL BALLOTS AND ELECTION RETURNS

Section 181. Official ballots. - Ballots for national and local offices
shall be of uniform size and color and shall be provided at public
expense. They shall be printed on paper with watermarks or other
marks that will readily distinguish the ballot paper from ordinary
paper. Each ballot shall be in the shape of a strip with stub and
detachable coupon containing the serial number of the ballot, and a
space for the thumbmark of the voter on the detachable coupon. It
shall bear at the top on the middle portion thereof the coat of arms of
the Republic of the Philippines, the words "Official Ballot", the name
of the city or the municipality and province in which the election is
held, the date of the election, and the following notice: "Fill out this
ballot secretly inside the voting booth. Do not put any distinctive mark
on any part of this ballot."

The ballot shall also contain the names of all the offices to be voted
for in the election, allowing opposite the name of each office,
sufficient space or spaces with horizontal lines where the voter may
write the name or names of the individual candidates voted for by
him.

There shall not be anything on the reverse side of the ballot.

Ballots in cities and municipalities where Arabic is of general use

shall have each of the titles of offices to be voted printed in Arabic in
addition to and immediately below the English title.

Notwithstanding the preceding provisions of this section, the

Commission is hereby empowered to prescribe a different form of
ballot to facilitate voting by illiterate voters and to use or adopt the
latest technological and electronic devices as authorized under
paragraph (i) of Section 52 hereof.

Section 182. Emergency ballots. - No ballots other than the official

ballots shall be used or counted, except in the event of failure to
receive the official ballots on time, or where there are no sufficient
ballots for all registered voters or where they are destroyed at such
time as shall render it impossible to provide other official ballots, in
which cases the city or municipal treasurer shall provide other ballots
which shall be as similar to the official ones as circumstances will
permit and which shall be uniform within each polling place. The
treasurer shall immediately report such action to the Commission.

The municipal treasurer shall not undertake the preparation of the

emergency ballots unless the political parties, candidates and the
organizations collectively authorized by the Commission to designate
watchers have been sufficiently notified to send their representatives
and have agreed in writing to the preparation and use of emergency
ballots.

Section 183. Requisition of official ballots and election returns. -

Official ballots and election returns shall be printed upon orders of the
Commission. Requisition of official ballots shall be for each city and
municipality, at the rate of one and one-fifth ballots for every
registered voter in the next preceding election; and for election
returns, at one set thereof for every polling place.

Section 184. Printing of official ballots and elections returns. - The

official ballots and election returns shall be printed by the
Government Printing Office and/or the Central Bank printing facilities
exclusively, under the exclusive supervision and control of the
Commission which shall determine and provide the necessary
security measures in the printing, storage and distribution thereof.

Each ballot shall be joined by a perforated line to a stub numbered

consecutively, beginning with number "1" in each city and
municipality. Each ballot shall also have at the bottom a detachable
coupon bearing the same number of the stub. Each pad of ballots
shall bear on its cover the name of the city or municipality in which
the ballots are to be used and the inclusive serial numbers of the
ballots contained therein.

The official ballots shall be bound in separate pads of fifty or one

hundred ballots each as may be required.

The election returns shall be prepared in sets of six copies per set
and shall be numbered consecutively, beginning with number "1" in
each city and municipality. Each set of the election returns shall be
printed in such a manner that will ensure that the entries on the
original of the returns are clearly reproduced on the other copies
thereof and shall bear the name of the city or municipality in which
the returns are to be used. For this purposes, the Commission shall
acquire, if necessary, a special kind of carbon paper or chemically
treated paper.

Section 185. Sample official ballots. - The Commission shall provide

the board of election inspectors with sample official ballots at the rate
of thirty ballots per polling place. The sample official ballots shall be
printed on colored paper, in all respects like the official ballots but
bearing instead the words "Sample Official Ballot", to be shown to the
public and used in demonstrating how to fill out and fold the official
ballots properly. No name of any actual candidate shall be written on
the spaces for voting on the sample official ballots provided by the
Commission, nor shall they be used for voting.

Section 186. Distribution of official ballots and election returns. - The

official ballots and the election returns shall be distributed by the
Commission to each city and municipality at the rate of one and one-
fifth ballots for every voter registered in each polling place; and for
election returns, at the rate of one set each for every polling place.

The provincial, city or municipal treasurer shall respectively keep a

record of the quantity and serial numbers of official ballots and
election returns furnished the various provinces, cities, municipalities
and polling places, as the case may be, legible copies of which
record shall be furnished the duly authorized provincial, city or
municipal representatives of the ruling party and the dominant
opposition party, and the Commission immediately after the
distribution is made of such official ballots and election returns.

The Commission shall prescribe the use of official delivery receipts to

be signed by the election registrar and the chairman of the board of
canvassers upon receipt of the election returns.

No official ballots or election returns shall be delivered to the board of

election inspectors earlier than the first hour of election day:
Provided, however, That the Commission, after written notice to the
registered political parties and the candidates, may, for justifiable
reasons, authorize the delivery of said official ballots and election
returns to the board of election inspectors of any particular polling
place at an earlier date.

Section 187. Committee on printing, storage, and distribution of

official ballots and election returns. - The Commission shall appoint a
committee of five members, two of whom shall be from among its
personnel, the third to be designated by the Commission on Audit,
and the last two to be designated by the ruling party and the
dominant opposition party to act as its representatives in supervising
the printing, storage and distribution of official ballots and election
returns.

Upon the request of any candidate, political party or of civic, religious,

professional, business, service, youth or any similar organizations
collectively designated by the Commission, the latter shall allow any
person designated by any of the former as watcher to observe the
proceedings of the committee on the printing of official ballots and
election returns, file objections, if any, witness the printing and
distribution of the ballots and the returns and guard the premises of
the printer.

Section 188. Duties of the committee on printing of official ballots and

election returns. - Under such orders or instructions as the
Commission may issue, and in addition to general supervision and
control over the printing and shipment of official ballots and election
returns, the committee on printing of official ballots and election
returns shall (a) take charge of the room or rooms where the paper
and paraphernalia used in the printing of official ballots and election
returns are stored and where printed official ballots and election
returns are packed and prepared for shipment, (b) supervise all
aspects relating to the printing, storage and shipment of official
ballots and election returns and report to the Commission any
irregularity which they believe may have been committed, and (c)
perform such other related functions as the Commission may direct.

Section 189. Representatives of the registered political parties in the

verification and distribution of official ballots and election returns. -
The ruling party and the dominant opposition party or their respective
duly authorized representatives in the different provinces, cities and
municipalities, shall submit the names of their respective watchers
who, together with the representatives of the Commission and the
provincial, city and municipal treasurer shall verify the contents of the
boxes containing the shipment of official ballots, election returns and
sample official ballots received by the said treasurers. The provincial
treasurers shall keep a record of their receipt and distribution to each
municipal treasurer, while the city and municipal treasurer shall each
keep a record of their distribution to the board of election inspectors.

ARTICLE XVII
CASTING OF VOTES

Section 190. Voting hours. - The casting of votes shall start at seven
o'clock in the morning and shall end at three o'clock in the afternoon,
except when there are voters present within thirty meters in front of
the polling place who have not yet cast their votes, in which case the
voting shall continue but only to allow said voters to cast their votes
without interruption. The poll clerk shall, without delay, prepare a
complete list containing the names of said voters consecutively
numbered, and the voters so listed shall be called to vote by
announcing each name repeatedly three times in the order in which
they are listed. Any voter in the list who is not present when his name
is called out shall not be permitted to vote.

Section 191. Preliminaries to the voting. -

(a) The board of election inspectors shall meet at the polling place at
six-thirty o'clock in the morning of election day and shall have the
book of voters containing all the approved applications of registration
of voters pertaining to the polling place, the certified list of voters, the
certified list of candidates, the ballot box, the official ballots, sufficient
indelible pencils or ball pens for the use of the voters, the forms to be
used, and all other materials which may be necessary.

(b) Immediately thereafter, the chairman of the board of election

inspectors shall open the ballot box, empty both of its compartments,
exhibit them to all those present and being empty, lock its interior
covers with three padlocks.
(c) The chairman shall forthwith show to the public and the watchers
present the package of official ballots received from the city, or
municipal treasurer duly wrapped and sealed and the number of
pads, the serial numbers and the type forms of the ballots in each
pad appearing on the cover, and the book of voters duly sealed. The
board of election inspectors shall then break the seals of the package
of official ballots and the book of voters. The board of election
inspectors shall enter in the minutes the fact that the package of
ballots, and the book of voters were shown to the public with their
wrapping and corresponding seals intact and/or if they find that the
wrapping and seals are broken, such fact must be stated in the
minutes as well as the number of pads and the serial numbers of
ballots that they find in the package.

Ballots with separately printed serial numbers shall be deemed

spurious and shall not be utilized by the board of election inspectors
unless the Commission representative shall order their use in writing,
stating the reasons therefor.

(d) The chairman and the two party members of the board of election
inspectors shall retain in their possession their respective keys to the
padlocks during the voting.

(e) The box shall remain locked until the voting is finished and the
counting begins. However, if it should become necessary to make
room for more ballots, the board of election inspectors may open the
box in the presence of the whole board of election inspectors and the
watchers, and the chairman shall press down with his hands the
ballots contained therein without removing any of them, after which
the board of election inspectors shall close the box and lock it with
three padlocks as hereinbefore provided.

Section 192. Persons allowed in and around the polling place. -

During the voting, no person shall be allowed inside the polling place,
except the members of the board of election inspectors, the watchers,
the representatives of the Commission, the voters casting their votes,
the voters waiting for their turn to get inside the booths whose
number shall not exceed twice the number of booths and the voters
waiting for their turn to cast their votes whose number shall not
exceed twenty at any one time. The watchers shall stay only in the
space reserved for them, it being illegal for them to enter places
reserved for the voters or for the board of election inspectors or to
mingle and talk with the voters within the polling place.

It shall be unlawful for any officer or member of the Armed Forces of

the Philippines including the Philippine Constabulary or the Integrated
National Police or peace officer or any armed person belonging to
any extra-legal police agency, special forces, reaction forces, strike
forces, home defense units, barangay tanod, or other similar forces or
para-military forces, including special forces, security guards, special
policeman, and all other kinds of armed or unarmed extra-legal police
officers, to enter any polling place, unless it is his polling place where
he will vote but in such case he should immediately leave the polling
place, no policeman or peace officer shall be allowed to enter or stay
inside the polling place except when there is an actual disturbance of
the peace and order therein. However, the board of election
inspectors upon majority vote, if it deems necessary, may make a call
in writing, duly entered in the minutes, for the detail of a policeman or
any peace officer for their protection or for the protection of the
election documents and paraphernalia, in which case, the said
policeman or peace officer shall stay outside the polling place within a
radius of thirty meters near enough to be easily called by the board of
election inspectors at any time, but never at the door, and in no case
shall the said policeman or peace officer hold any conversation with
any voter or disturb or prevent or in any manner obstruct the free
access of the voters to the polling place. It shall likewise be unlawful
for any barangay official to enter and stay inside any polling place
except to vote or except when serving as a watcher or member of the
board of election inspectors, in which case, he shall leave the polling
place immediately after voting.

Section 193. Order of voting. - The voters shall vote in the order of
their entrance into the polling place. The voters shall have the right to
freely enter the polling place as soon as they arrive unless there are
voters waiting inside, in which case they shall fall in line in the order
of their arrival and shall not crowd around the table of the board of
election inspectors. The voters after having cast their votes shall
immediately depart.
Section 194. Manner of obtaining ballots. - The voter shall approach
the chairman and shall give his name and address together with other
data concerning his person. In case any member of the board of
election inspectors doubts the identity of the voter, the board of
election inspectors shall check his voter's identification card or, if he
does not have any, the board of election inspectors shall refer to his
photograph and signature in the voter's application for registration. If
the board of election inspectors is satisfied with his identity, the
chairman shall distinctly announce the voter's name in a tone loud
enough to be plainly heard throughout the polling place. If such voter
has not been challenged, or if having been challenged, the question
has been decided in his favor, the voter shall forthwith affix his
signature in the proper space in the voting record, and the chairman
shall, after first entering the number of the ballot in the corresponding
space of the voting record, deliver to the voter one ballot correctly
folded. No person other than the chairman shall deliver official ballots
nor shall more than one ballot be delivered at one time.

Section 195. Manner of preparing the ballot. - The voter, upon

receiving his folded ballot, shall forthwith proceed to one of the empty
voting booths and shall there fill his ballot by writing in the proper
space for each office the name of the individual candidate for whom
he desires to vote.

No voter shall be allowed to enter a booth occupied by another, nor

enter the same accompanied by somebody, except as provided for in
the succeeding section hereof, nor stay therein for a longer time than
necessary, nor speak with anyone other than as herein provided
while inside the polling place. It shall be unlawful to prepare the ballot
outside the voting booth, or to exhibit its contents to any person, or to
erase any printing from the ballot, or to intentionally tear or deface the
same or put thereon any distinguishing mark. It shall likewise be
unlawful to use carbon paper, paraffin paper, or other means for
making a copy of the contents of the ballot or make use of any other
means to identify the vote of the voter.

Section 196. Preparation of ballots for illiterate and disabled persons.

- A voter who is illiterate or physically unable to prepare the ballot by
himself may be assisted in the preparation of his ballot by a relative,
by affinity or consanguinity within the fourth civil degree or if he has
none, by any person of his confidence who belong to the same
household or any member of the board of election inspectors, except
the two party members: Provided, That no voter shall be allowed to
vote as illiterate or physically disabled unless it is so indicated in his
registration record: Provided, further, That in no case shall an assistor
assist more than three times except the non-party members of the
board of election inspectors. The person thus chosen shall prepare
the ballot for the illiterate or disabled voter inside the voting booth.
The person assisting shall bind himself in a formal document under
oath to fill out the ballot strictly in accordance with the instructions of
the voter and not to reveal the contents of the ballot prepared by him.
Violation of this provision shall constitute an election offense.

Section 197. Spoiled ballots. - If a voter should accidentally spoil or

deface a ballot in such a way that it cannot lawfully be used, he shall
surrender if folded to the chairman who shall note in the
corresponding space in the voting record that said ballot is spoiled.
The voter shall then be entitled to another ballot which the chairman
shall give him after announcing the serial number of the second ballot
and recording said serial number in the corresponding spaces in the
voting record. If the second ballot is again spoiled or defaced in such
a way that it cannot lawfully be used, the same shall be surrendered
to the chairman and recorded in the same manner as the first spoiled
or defaced ballot. However, no voter shall change his ballot more
than twice.

The spoiled ballot shall, without being unfolded and without removing
the detachable coupon, be distinctly marked with the word "spoiled"
and signed by the board of election inspectors on the endorsement
fold thereof and immediately placed in the compartment for spoiled
ballots.

Section 198. Voting. -

(a) After the voter has filled his ballot he shall fold it in the same
manner as when he received it and return it to the chairman.

(b) In the presence of all the members of the board of election

inspectors, he shall affix his thumbmark on the corresponding space
in the coupon, and deliver the folded ballot to the chairman.
(c) The chairman, in the presence and view of the voter and all the
members of the board of election inspectors, without unfolding the
ballot or seeing its contents, shall verify its number from the voting
record where it was previously entered.

(d) The voter shall fortwith affix his thumbmark by the side of his
signature in the space intended for that purpose in the voting record
and the chairman shall apply silver nitrate and commassie blue on
the right forefinger nail or on any other available finger nail, if there be
no forefinger nail.

(e) The chairman shall sign in the proper space beside the
thumbmark of the voter.

(f) The chairman, after finding everything to be in order, shall then

detach the coupon in the presence of the board of election inspectors
and of the voter and shall deposit the folded ballot in the
compartment for valid ballots, and the detached coupon in the
compartment for spoiled ballots.

(g) The voter shall then depart.

Any ballot returned to the chairman whose detachable coupon has

been removed not in the presence of the board of election inspectors
and of the voter, or any ballot whose number does not coincide with
the number of the ballot delivered to the voter, as entered in the
voting record, shall be considered as spoiled and shall be so marked
and signed by the members of the board of election inspectors.

Section 199. Challenge of illegal voters. -

(a) Any voter, or watcher may challenge any person offering to vote
for not being registered, for using the name of another or suffering
from existing disqualification. In such case, the board of election
inspectors shall satisfy itself as to whether or not the ground for the
challenge is true by requiring proof of registration or the identity of the
voter; and
(b) No voter shall be required to present his voter's affidavit on
election day unless his identity is challenged. His failure or inability to
produce his voter's affidavit upon being challenged, shall not preclude
him from voting if his identity be shown from the photograph,
fingerprints, or specimen signatures in his approved application in the
book of voters or if he is identified under oath by a member of the
board of election inspectors and such identification shall be reflected
in the minutes of the board.

Section 200. Challenge based on certain illegal acts. - Any voter or

watcher may challenge any voter offering to vote on the ground that
the challenged person has received or expects to receive, has paid,
offered or promised to pay, has contributed, offered or promised to
contribute money or anything of value as consideration for his vote or
for the vote of another; that he has made or received a promise to
influence the giving or withholding of any such vote or that he has
made a bet or is interested directly or indirectly in a bet which
depends upon the result of the election. The challenged person shall
take a prescribed oath before the board of election inspectors that he
has not committed any of the acts alleged in the challenge. Upon the
taking of such oath, the challenge shall be dismissed and the
challenged voter shall be allowed to vote, but in case of his refusal to
take such oath, the challenge shall be sustained and he shall not be
allowed to vote.

Section 201. Admission of challenged vote immaterial in criminal

proceedings. - The admission of the challenged vote under the two
preceding sections shall not be conclusive upon any court as to the
legality of the registration of the voter challenged or his vote in a
criminal action against such person for illegal registration or voting.

Section 202. Record of challenges and oaths. - The poll clerk shall
keep a prescribed record of challenges and oaths taken in connection
therewith and the resolution of the board of election inspectors in
each case and, upon the termination of the voting, shall certify that it
contains all the challenges made. The original of this record shall be
attached to the original copy of the minutes of the voting as provided
in the succeeding section.
Section 203. Minutes of voting and counting of votes. - The board of
election inspectors shall prepare and sign a statement in four copies
setting forth the following:

1. The time the voting commenced and ended;

2. The serial numbers of the official ballots and election returns,

special envelopes and seals received;

3. The number of official ballots used and the number left unused;

4. The number of voters who cast their votes;

5. The number of voters challenged during the voting;

6. The names of the watchers present;

7. The time the counting of votes commenced and ended;

8. The number of official ballots found inside the compartment for

valid ballots;

9. The number of valid ballots, if any, retrieved from the compartment

for spoiled ballots;

10. The number of ballots, if any, found folded together;

11. The number of spoiled ballots withdrawn from the compartment

for valid ballots;

12. The number of excess ballots;

13. The number of marked ballots;

14. The number of ballots read and counted;

15. The time the election returns were signed and sealed in their
respective special envelopes;

16. The number and nature of protests made by watchers; and

17. Such other matters that the Commission may require.

Copies of this statement after being duly accomplished shall be

sealed in separate envelopes and shall be distributed as follows: (a)
the original to the city or municipal election registrar; (b) the second
copy to be deposited inside the compartment for valid ballots of the
ballot box; and (c) the third and fourth copies to the representatives of
the accredited political parties.

Section 204. Disposition of unused ballots at the close of the voting

hours. - The chairman of the board of election inspectors shall
prepare a list showing the number of unused ballots together with the
serial numbers. This list shall be signed by all the members of the
board of election inspectors, after which all the unused ballots shall
be torn halfway in the presence of the members of the board of
election inspectors.

Section 205. Prohibition of premature announcement of voting. - No

member of the board of election inspectors shall, before the
termination of the voting, make any announcement as to whether a
certain registered voter has already voted or not, as to how many
have already voted or how many so far have failed to vote, or any
other fact tending to show or showing the state of the polls, nor shall
he make any statement at any time, except as witness before a court,
as to how any person voted.

ARTICLE XVIII
COUNTING OF VOTES

Section 206. Counting to be public and without interruption. - As soon

as the voting is finished, the board of election inspectors shall publicly
count in the polling place the votes cast and ascertain the results.
The board of election inspectors shall not adjourn or postpone or
delay the count until it has been fully completed, unless otherwise
ordered by the Commission.
The Commission, in the interest of free, orderly, and honest elections,
may order the board of election inspectors to count the votes and to
accomplish the election returns and other forms prescribed under this
Code in any other place within a public building in the same
municipality or city: Provided, That the said public building shall not
be located within the perimeter of or inside a military or police camp
or reservation nor inside a prison compound.

Section 207. Excess ballots. - Before proceeding to count the votes

the board of election inspectors shall count the ballots in the
compartment for valid ballots without unfolding them or exposing their
contents, except so far as to ascertain that each ballot is single, and
compare the number of ballots in the box with the number of voters
who have voted. If there are excess ballots, they shall be returned in
the box and thoroughly mixed therein, and the poll clerk, without
seeing the ballots and with his back to the box, shall publicly draw out
as may ballots as may be equal to the excess and without unfolding
them, place them in an envelope which shall be marked "excess
ballots" and which shall be sealed and signed by the members of the
board of election inspectors. The envelope shall be placed in the
compartment for valid ballots, but its contents shall not be read in the
counting of votes. If in the course of the examination ballots are found
folded together before they were deposited in the box, they shall be
placed in the envelope for excess ballots. In case ballots with their
detachable coupons be found in the box, such coupons shall be
removed and deposited in the compartment for spoiled ballots, and
the ballots shall be included in the file of valid ballots. If ballots with
the words "spoiled" be found in the box, such ballots shall likewise be
placed in the compartment for spoiled ballots.

Section 208. Marked ballots. - The board of election inspectors shall

then unfold the ballots and determine whether there are any marked
ballots, and, if any be found, they shall be placed in an envelope
labelled "marked ballots" which shall be sealed and signed by the
members of the board of election inspectors and placed in the
compartment for valid ballots and shall not be counted. A majority
vote of the board of election inspectors shall be sufficient to
determine whether any ballot is marked or not. Non-official ballots
which the board of election inspectors may find, except those which
have been used as emergency ballots, shall be considered as
marked ballots.

Section 209. Compartment for spoiled ballots. - The ballots deposited

in the compartment for spoiled ballots shall be presumed to be
spoiled ballots, whether or not they contain such notation; but if the
board of election inspectors should find that during the voting any
valid ballot was erroneously deposited in this compartment, or if any
ballot separated as excess or marked had been erroneously
deposited therein, the board of election inspectors shall open said
compartment after the voting and before the counting of votes for the
sole purpose of drawing out the ballots erroneously deposited therein.
It shall then prepare and sign a statement of such fact and lock the
box with its three keys immediately thereafter. The valid ballots so
withdrawn shall be mixed with the other valid ballots, and the excess
or marked ballots shall be placed in their proper envelopes which
shall for such purposes be opened and again labelled, sealed, signed
and kept as hereinafter provided.

Section 210. Manner of counting votes. - The counting of votes shall

be made in the following manner: the board of election inspectors
shall unfold the ballots and form separate piles of one hundred ballots
each, which shall be held together with rubber bands, with cardboard
of the size of the ballots to serve as folders. The chairman of the
board of election inspectors shall take the ballots of the first pile one
by one and read the names of candidates voted for and the offices for
which they were voted in the order in which they appear thereon,
assuming such a position as to enable all of the watchers to read
such names. The chairman shall sign and affix his right hand
thumbmark at the back of the ballot immediately after it is counted.
The poll clerk, and the third member, respectively, shall record on the
election returns and the tally board or sheet each vote as the names
voted for each office are read.

Each vote shall be recorded by a vertical line, except every fifth vote
which shall be recorded by a diagonal line crossing the previous four
vertical lines. One party member shall see to it that the chairman
reads the vote as written on the ballot, and the other shall check the
recording of the votes on the tally board or sheet and the election
returns seeing to it that the same are correctly accomplished. After
finishing the first pile of ballots, the board of election inspectors shall
determine the total number of votes recorded for each candidate, the
sum being noted on the tally board or sheet and on the election
returns. In case of discrepancy such recount as may be necessary
shall be made. The ballots shall then be grouped together again as
before the reading. Thereafter, the same procedure shall be followed
with the second pile of ballots and so on successively. After all the
ballots have been read, the board of election inspectors shall sum up
the totals recorded for each candidate, and the aggregate sum shall
be recorded both on the tally board or sheet and on the election
returns. It shall then place the counted ballots in an envelope
provided for the purpose, which shall be closed signed and deposited
in the compartment for valid ballots. The tally board or sheet as
accomplished and certified by the board of election inspectors shall
not be changed or destroyed but shall be kept in the compartment for
valid ballots.

Section 211. Rules for the appreciation of ballots. - In the reading and
appreciation of ballots, every ballot shall be presumed to be valid
unless there is clear and good reason to justify its rejection. The
board of election inspectors shall observe the following rules, bearing
in mind that the object of the election is to obtain the expression of
the voter's will:

1. Where only the first name of a candidate or only his surname is

written, the vote for such candidate is valid, if there is no other
candidate with the same first name or surname for the same office.

2. Where only the first name of a candidate is written on the ballot,

which when read, has a sound similar to the surname of another
candidate, the vote shall be counted in favor of the candidate with
such surname. If there are two or more candidates with the same full
name, first name or surname and one of them is the incumbent, and
on the ballot is written only such full name, first name or surname, the
vote shall be counted in favor of the incumbent.

3. In case the candidate is a woman who uses her maiden or married

surname or both and there is another candidate with the same
surname, a ballot bearing only such surname shall be counted in
favor of the candidate who is an incumbent.
4. When two or more words are written on the same line on the ballot,
all of which are the surnames of two or more candidates, the same
shall not be counted for any of them, unless one is a surname of an
incumbent who has served for at least one year in which case it shall
be counted in favor of the latter.

When two or more words are written on different lines on the ballot all
of which are the surnames of two or more candidates bearing the
same surname for an office for which the law authorizes the election
of more than one and there are the same number of such surnames
written as there are candidates with that surname, the vote shall be
counted in favor of all the candidates bearing the surname.

5. When on the ballot is written a single word which is the first name
of a candidate and which is at the same time the surname of his
opponent, the vote shall be counted in favor of the latter.

6. When two words are written on the ballot, one of which is the first
name of the candidate and the other is the surname of his opponent,
the vote shall not be counted for either.

7. A name or surname incorrectly written which, when read, has a

sound similar to the name or surname of a candidate when correctly
written shall be counted in his favor;

8. When a name of a candidate appears in a space of the ballot for

an office for which he is a candidate and in another space for which
he is not a candidate, it shall be counted in his favor for the office for
which he is a candidate and the vote for the office for which he is not
a candidate shall be considered as stray, except when it is used as a
means to identify the voter, in which case, the whole ballot shall be
void.

If the word or words written on the appropriate blank on the ballot is

the identical name or surname or full name, as the case may be, of
two or more candidates for the same office none of whom is an
incumbent, the vote shall be counted in favor of that candidate to
whose ticket belong all the other candidates voted for in the same
ballot for the same constituency.
9. When in a space in the ballot there appears a name of a candidate
that is erased and another clearly written, the vote is valid for the
latter.

10. The erroneous initial of the first name which accompanies the
correct surname of a candidate, the erroneous initial of the surname
accompanying the correct first name of a candidate, or the erroneous
middle initial of the candidate shall not annul the vote in favor of the
latter.

11. The fact that there exists another person who is not a candidate
with the first name or surname of a candidate shall not prevent the
adjudication of the vote of the latter.

12. Ballots which contain prefixes such as "Sr.", "Mr.", "Datu", "Don",
"Ginoo", "Hon.", "Gob." or suffixes like "Hijo", "Jr.", "Segundo", are
valid.

13. The use of the nicknames and appellations of affection and

friendship, if accompanied by the first name or surname of the
candidate, does not annul such vote, except when they were used as
a means to identify the voter, in which case the whole ballot is invalid:
Provided, That if the nickname used is unaccompanied by the name
or surname of a candidate and it is the one by which he is generally
or popularly known in the locality, the name shall be counted in favor
of said candidate, if there is no other candidate for the same office
with the same nickname.

14. Any vote containing initials only or which is illegible or which does
not sufficiently identify the candidate for whom it is intended shall be
considered as a stray vote but shall not invalidate the whole ballot.

15. If on the ballot is correctly written the first name of a candidate but
with a different surname, or the surname of the candidate is correctly
written but with different first name, the vote shall not be counted in
favor of any candidate having such first name and/or surname but the
ballot shall be considered valid for other candidates.
16. Any ballot written with crayon, lead pencil, or in ink, wholly or in
part, shall be valid.

17. Where there are two or more candidates voted for in an office for
which the law authorizes the election of only one, the vote shall not
be counted in favor of any of them, but this shall not affect the validity
of the other votes therein.

18. If the candidates voted for exceed the number of those to be

elected, the ballot is valid, but the votes shall be counted only in favor
of the candidates whose names were firstly written by the voter within
the spaces provided for said office in the ballot until the authorized
number is covered.

19. Any vote in favor of a person who has not filed a certificate of
candidacy or in favor of a candidate for an office for which he did not
present himself shall be considered as a stray vote but it shall not
invalidate the whole ballot.

20. Ballots containing the name of a candidate printed and pasted on

a blank space of the ballot or affixed thereto through any mechanical
process are totally null and void.

21. Circles, crosses or lines put on the spaces on which the voter has
not voted shall be considered as signs to indicate his desistance from
voting and shall not invalidate the ballot.

22. Unless it should clearly appear that they have been deliberately
put by the voter to serve as identification marks, commas, dots, lines,
or hyphens between the first name and surname of a candidate, or in
other parts of the ballot, traces of the letter "T", "J", and other similar
ones, the first letters or syllables of names which the voter does not
continue, the use of two or more kinds of writing and unintentional or
accidental flourishes, strokes, or strains, shall not invalidate the
ballot.

23. Any ballot which clearly appears to have been filled by two
distinct persons before it was deposited in the ballot box during the
voting is totally null and void.
24. Any vote cast in favor of a candidate who has been disqualified
by final judgment shall be considered as stray and shall not be
counted but it shall not invalidate the ballot.

25. Ballots wholly written in Arabic in localities where it is of general

use are valid. To read them, the board of election inspectors may
employ an interpreter who shall take an oath that he shall read the
votes correctly.

26. The accidental tearing or perforation of a ballot does not annul it.

27. Failure to remove the detachable coupon from a ballot does not
annul such ballot.

28. A vote for the President shall also be a vote for the Vice-President
running under the same ticket of a political party, unless the voter
votes for a Vice-President who does not belong to such party.

Section 212. Election returns. - The board of election inspectors shall

prepare the election returns simultaneously with the counting of the
votes in the polling place as prescribed in Section 210 hereof. The
return shall be prepared in sextuplicate. The recording of votes shall
be made as prescribed in said section. The entry of votes in words
and figures for each candidate shall be closed with the signature and
the clear imprint of the thumbmark of the right hand of all the
members, likewise to be affixed in full view of the public, immediately
after the last vote recorded or immediately after the name of the
candidate who did not receive any vote.

The returns shall also show the date of the election, the polling place,
the barangay and the city of municipality in which it was held, the total
number of ballots found in the compartment for valid ballots, the total
number of valid ballots withdrawn from the compartment for spoiled
ballots because they were erroneously placed therein, the total
number of excess ballots, the total number of marked or void ballots,
and the total number of votes obtained by each candidate, writing out
the said number in words and figures and, at the end thereof, the
board of election inspectors shall certify that the contents are correct.
The returns shall be accomplished in a single sheet of paper, but if
this is not possible, additional sheets may be used which shall be
prepared in the same manner as the first sheet and likewise certified
by the board of election inspectors.

The Commission shall take steps so that the entries on the first copy
of the election returns are clearly reproduced on the second, third,
fourth, fifth, and sixth copies thereof, and for this purpose the
Commission shall use a special kind of paper.

Immediately upon the accomplishment of the election returns, each

copy thereof shall be sealed in the presence of the watchers and the
public, and placed in the proper envelope, which shall likewise be
sealed and distributed as herein provided.

Any election return with a separately printed serial number or which

bears a different serial number from that assigned to the particular
polling place concerned shall not be canvassed. This is to be
determined by the board of canvassers prior to its canvassing on the
basis of the certification of the provincial, city or municipal treasurer
as to the serial number of the election return assigned to the said
voting precinct, unless the Commission shall order in writing for its
canvassing, stating the reason for the variance in serial numbers.

If the signatures and/or thumbmarks of the members of the board of

election inspectors or some of them as required in this provision are
missing in the election returns, the board of canvassers may summon
the members of the board of election inspectors concerned to
complete the returns.

Section 213. Proclamation of the result of the election in the polling

place. - Upon the completion of the election returns, the chairman of
the board of election inspectors shall orally and publicly announce the
total number of votes received in the election in the polling place by
each and every one of the candidates, stating their corresponding
office.

Section 214. Disposition of election returns. -

(1) In a presidential election: the board of election inspectors shall

prepare in handwriting and sign the returns of the election in
sextuplicate in their respective polling place in a form to be prescribed
by the Commission. One copy shall be deposited in the compartment
of the ballot box for valid ballots, and in the case of municipalities two
copies including the original copy shall be handed to the municipal
election registrar who shall immediately deliver the original copy to
the provincial election supervisor and forward the other copy to the
Commission, and one copy each to the authorized representatives of
the accredited political parties. In the case of the cities, the city
registrar shall retain the original copy for submission to the provincial
election supervisor, and forward the other copy to the Commission.

(2) In the election for Members of the Batasang Pambansa: the

original of the election returns shall be delivered to the election
registrar of the city or municipality for transmittal to the chairman of
the provincial board of canvassers, and direct to the chairman of the
city or district board of canvassers in the urbanized cities and the
districts of Metropolitan Manila, as the case may be, for use in the
canvass. The second copy shall likewise be delivered to the election
registrar for transmittal to the Commission. The third copy shall be
deposited in the compartment for valid ballots. The fourth copy shall
be delivered to the election registrar who shall use said copy in the
tabulation of the advance results of the election in the city or
municipality. The fifth and sixth copies shall each respectively be
delivered to the members representing political parties represented in
the board of election inspectors.

(3) In local elections: the original copy of the election returns shall be
delivered to the city or municipal board of canvassers as a body for
its use in the city of municipal canvass. The second copy shall be
delivered to the election registrar of the city or municipality for
transmittal to the provincial board of canvassers as a body for its use
in the provincial canvass. The third copy shall likewise be delivered to
the election registrar for transmittal to the Commission. The fourth
copy shall be deposited in the compartment for valid ballots. The fifth
and sixth copies shall each respectively be delivered to the members
representing the political parties represented in the board of election
inspectors.

The Commission shall promulgate rules for the speedy and safe
delivery of the election returns.
Section 215. Board of election inspectors to issue a certificate of the
number of votes polled by the candidates for an office to the
watchers. - After the announcement of the results of the election and
before leaving the polling place, it shall be the duty of the board of
election inspectors to issue a certificate of the number of the votes
received by a candidate upon request of the watchers. All the
members of the board of election inspectors shall sign the certificate.

Section 216. Alterations and corrections in the election returns. - Any

correction or alteration made in the election, returns by the board of
election inspectors before the announcement of the results of the
election in the polling place shall be duly initialed by all the members
thereof.

After the announcement of the results of the election in the polling

place has been made, the board of election inspectors shall not make
any alteration or amendment in any of the copies of the election
returns, unless so ordered by the Commission upon petition of the
members of the board of election inspectors within five days from the
date of the election or twenty-four hours from the time a copy of the
election returns concerned is opened by the board of canvassers,
whichever is earlier. The petition shall be accompanied by proof of
service upon all candidates affected. If the petition is by all members
of the board of election inspectors and the results of the election
would not be affected by said correction and none of the candidates
affected objects thereto, the Commission, upon being satisfied of the
veracity of the petition and of the error alleged therein, shall order the
board of election inspectors to make the proper correction on the
election returns.

However, if a candidate affected by said petition objects thereto,

whether the petition is filed by all or only a majority of the members of
the board of election inspectors and the results of the election would
be affected by the correction sought to be made, the Commission
shall proceed summarily to hear the petition. If it finds the petition
meritorious and there are no evidence or signs indicating that the
identity and integrity of the ballot box have been violated, the
Commission shall order the opening of the ballot box. After satisfying
itself that the integrity of the ballots therein has also been duly
preserved, the Commission shall order the recounting of the votes of
the candidates affected and the proper corrections made on the
election returns, unless the correction sought is such that it can be
made without need of opening the ballot box.

Section 217. Delivery of the ballot boxes, keys and election supplies
and documents. - Upon the termination of the counting of votes, the
board of election inspectors shall place in the compartment for valid
ballots, the envelopes for used ballots hereinbefore referred to, the
unused ballots, the tally board or sheet, a copy of the election returns,
and the minutes of its proceedings, and then shall lock the ballot box
with three padlocks and such safety devices as the Commission may
prescribe. Immediately after the box is locked, the three keys of the
padlocks shall be placed in three separate envelopes and shall be
sealed and signed by all the members of the board of election
inspectors.

The authorized representatives of the Commission shall forthwith

take delivery of said envelopes, signing a receipt therefor, and deliver
without delay one envelope to the provincial treasurer, another to the
provincial fiscal and the other to the provincial election supervisor.

The ballot box, all supplies of the board of election inspectors and all
pertinent papers and documents shall immediately be delivered by
the board of election inspectors and the watchers to the city or
municipal treasurer who shall keep his office open all night on the day
of election if necessary for this purpose, and shall provide the
necessary facilities for said delivery at the expense of the city or
municipality. The book of voters shall be returned to the election
registrar who shall keep it under his custody. The treasurer and the
election registrar, as the case may be, shall on the day after the
election require the members of the board of election inspectors who
failed to send the objects referred to herein to deliver the same to him
immediately and acknowledge receipt thereof in detail.

Section 218. Preservation of the voting record. - The voting record of

each polling place shall be delivered to the election registrar who
shall have custody of the same, keeping them in a safe place, until
such time that the Commission shall give instructions on their
disposition.
Section 219. Preservation of the ballot boxes, their keys and
disposition of their contents. -

(a) The provincial election supervisor, the provincial treasurer and the
provincial fiscal shall keep the envelope containing the keys in their
possession intact during the period of three months following the
election. Upon the lapse of this period, unless the Commission has
ordered otherwise, the provincial election supervisor and the
provincial fiscal shall deliver to the provincial treasurer the envelope
containing the keys under their custody.

(b) The city and municipal treasurer shall keep the ballot boxes under
their responsibility for three months and stored unopened in a secure
place, unless the Commission orders otherwise whenever said ballot
boxes are needed in any political exercise which might be called
within the said period, provided these are not involved in any election
contest or official investigation, or the Commission or other
competent authority shall demand them sooner or shall order their
preservation for a longer time in connection with any pending contest
or investigation. However, upon showing by any candidate that the
boxes will be in danger of being violated if kept in the possession of
such officials, the Commission may order them kept by any other
official whom it may designate. Upon the lapse of said time and if
there should be no order to the contrary, the Commission may
authorize the city and municipal treasurer in the presence of its
representative to open the boxes and burn their contents, except the
copy of the minutes of the voting and the election returns deposited
therein which they shall take and keep.

(c) In case of calamity or fortuitous event such as fire, flood, storm, or

other similar calamities which may actually cause damage to the
ballot boxes and/or their contents, the Commission may authorize the
opening of said ballot boxes to salvage the ballots and other contents
by placing them in other ballot boxes, taking such other precautionary
measures as may be necessary to preserve such documents.

Section 220. Documents and articles omitted or erroneously placed

inside the ballot box. - If after the delivery of the keys of the ballot box
to the proper authorities, the board of election inspectors shall
discover that some documents or articles required to be placed in the
ballot box were not placed therein, the board of election inspectors,
instead of opening the ballot box in order to place therein said
documents or articles, shall deliver the same to the Commission or its
duly authorized representatives. In no instance shall the ballot box be
reopened to place therein or take out therefrom any document or
article except to retrieve copies of the election returns which will be
needed in any canvass and in such excepted instances, the members
of the board of election inspectors and watchers of the candidates
shall be notified of the time and place of the opening of said ballot
box: Provided, however, That if there are other copies of the election
returns outside of the ballot box which can be used in canvass, such
copies of the election returns shall be used in said canvass and the
opening of the ballot box to retrieve copies of the election returns
placed therein shall then be dispensed with.

ARTICLE XIX
CANVASS AND PROCLAMATION

Section 221. Board of canvassers. - There shall be a board of

canvassers for each province, city, municipality, and district of
Metropolitan Manila as follows:

(a) Provincial board of canvassers. - the provincial board of

canvassers shall be composed of the provincial election supervisor or
a senior lawyer in the regional office of the Commission, as chairman,
the provincial fiscal, as vice-chairman, and the provincial
superintendent of schools, and one representative from each of the
ruling party and the dominant opposition political party in the
constituency concerned entitled to be represented, as members.

(b) City board of canvassers. - the city board of canvassers shall be

composed of the city election registrar or a lawyer of the Commission,
as chairman, the city fiscal and the city superintendent of schools,
and one representative from each of the ruling party and the
dominant opposition political party entitled to be represented, as
members.

(c) District board of canvassers of Metropolitan Manila - the district

board of canvassers shall be composed of a lawyer of the
Commission, as chairman, and a ranking fiscal in the district and the
most senior district school supervisor in the district to be appointed
upon consultation with the Ministry of Justice and the Ministry of
Education, Culture and Sports, respectively, and one representative
from each of the ruling party and the dominant opposition political
party in the constituency concerned, as members.

(d) Municipal board of canvassers. - the municipal board of

canvassers shall be composed of the election registrar or a
representative of the Commission, as chairman, the municipal
treasurer, and the district supervisor or in his absence any public
school principal in the municipality and one representative from each
of the ruling party and the dominant opposition political party entitled
to be represented, as members.

(e) Board of canvassers for newly created political subdivisions - the

Commission shall constitute a board of canvassers and appoint the
members thereof for the first election in a newly created province, city
or municipality in case the officials who shall act as members thereof
have not yet assumed their duties and functions.

Section 222. Relationship with candidates and other members. - The

chairman and the members of the board of canvassers shall not be
related within the fourth civil degree of consanguinity or affinity to any
of the candidates whose votes will be canvassed by said board, or to
any member of the same board.

Section 223. Prohibition against leaving official station. - During the

period beginning election day until the proclamation of the winning
candidates, no member or substitute member of the different boards
of canvassers shall be transferred, assigned or detailed outside of his
official station, nor shall he leave said station without prior authority of
the Commission.

Section 224. Feigned illness. - Any member of the board of

canvassers feigning illness in order to be substituted on election day
until the proclamation of the winning candidates shall be guilty of an
election offense.

Section 225. Vote required. - A majority vote of all the members of

the board of canvassers shall be necessary to render a decision.
Section 226. Incapacity and substitution of members of boards of
canvassers. - In case of non-availability, absence, disqualification due
to relationship, or incapacity for any cause of the chairman, the
Commission shall designate the provincial or city fiscal to act as
chairman. Likewise, in case of non-availability, absence,
disqualification due to relationship, or incapacity for any cause, of
such designee, the next ranking provincial or city fiscal shall be
designated by the Commission and such designation shall pass to
the next in rank until the designee qualifies. With respect to the other
members of the board of canvassers, the Commission shall appoint
as substitute the provincial, city or municipal officers of other
government agencies in the province, city or municipality, as the case
may be, and with respect to the representatives of the accredited
political parties, the Commission shall appoint as substitutes those
nominated by the said political parties.

Section 227. Supervision and control over board of canvassers. - The

Commission shall have direct control and supervision over the board
of canvassers.

Any member of the board of canvassers may, at any time, be relieved

for cause and substituted motu proprio by the Commission.

Section 228. Notice of meeting of the board. - At least five days

before the meeting of the board, the chairman of the board shall give
notice to all members thereof and to each candidate and political
party of the date, time and place of the meeting.

Section 229. Manner of delivery and transmittal of election returns. -

(a) For the city and municipal board of canvassers, the copy of the
election returns of a polling place intended for the city or municipal
board of canvassers, duly placed inside a sealed envelope signed
and affixed with the imprint of the thumb of the right hand of all the
members of the board of election inspectors, shall be personally
delivered by the members of the board of election inspectors to the
city or municipal board of canvassers under proper receipt to be
signed by all the members thereof.
(b) For the provincial and district boards of canvassers in
Metropolitan Manila, the copy of the election returns of a polling place
intended for the provincial or district board of canvassers in the case
of Metropolitan Manila, shall be personally delivered by the members
of the board of election inspectors to the election registrar for
transmittal to the proper board of canvassers under proper receipt to
be signed by all the members thereof.

The election registrar concerned shall place all the returns intended
for the board of canvassers inside a ballot box provided with three
padlocks whose keys shall be kept as follows: one by the election
registrar, another by the representative of the ruling party and the
third by the representative of the dominant political opposition party.

For this purpose, the two political parties shall designate their
representatives whose names shall be submitted to the election
registrar concerned on or before the tenth day preceding the election.
The three in possession of the keys shall personally transmit the
ballot box, properly locked, containing the election returns to the
board of canvassers. Watchers of political parties, coalition of political
parties, and of organizations collectively authorized by the
Commission to designate watchers shall have the right to accompany
transmittal of the ballot boxes containing the election returns.

It shall be unlawful for any person to delay, obstruct, impede or

prevent through force, violence, coercion, intimidation or by any
means which vitiates consent, the transmittal of the election returns
or to take away, abscond with, destroy, deface or mutilate or
substitute the election returns or the envelope or the ballot box
containing the election returns or to violate the right of the watchers.

The watchers of the political parties, coalition of political parties and

the candidates shall have the right to accompany the members of the
board of election inspectors or the election registrar in making the
delivery to the boards of canvassers.

Section 230. Safekeeping of transmitted election returns. - The board

of canvassers shall keep the ballot boxes containing the election
returns in a safe and secure room before and after the canvass. The
door to the room must be padlocked by three locks with the keys
thereof kept as follows: one with the chairman, the other with the
representative of the ruling party, and the other with the
representative of the dominant opposition political party. The
watchers of candidates, political parties, coalition of political parties
and organization collectively authorized by the Commission to
appoint watchers shall have the right to guard the room. Violation of
this right shall constitute an election offense.

Section 231. Canvass by the board. - The board of canvassers shall

meet not later than six o'clock in the afternoon of election day at the
place designated by the Commission to receive the election returns
and to immediately canvass those that may have already been
received. It shall meet continuously from day to day until the canvass
is completed, and may adjourn but only for the purpose of awaiting
the other election returns from other polling places within its
jurisdiction. Each time the board adjourns, it shall make a total of all
the votes canvassed so far for each candidate for each office,
furnishing the Commission in Manila by the fastest means of
communication a certified copy thereof, and making available the
data contained therein to the mass media and other interested
parties. As soon as the other election returns are delivered, the board
shall immediately resume canvassing until all the returns have been
canvassed.

The respective board of canvassers shall prepare a certificate of

canvass duly signed and affixed with the imprint of the thumb of the
right hand of each member, supported by a statement of the votes
received by each candidate in each polling place and, on the basis
thereof, shall proclaim as elected the candidates who obtained the
highest number of votes cast in the province, city, municipality or
barangay. Failure to comply with this requirement shall constitute an
election offense.

Subject to reasonable exceptions, the board of canvassers must

complete their canvass within thirty-six hours in municipalities, forty-
eight hours in cities and seventy-two hours in provinces. Violation
hereof shall be an election offense punishable under Section 264
hereof.
With respect to the election for President and Vice-President, the
provincial and city boards of canvassers shall prepare in quintuplicate
a certificate of canvass supported by a statement of votes received
by each candidate in each polling place and transmit the first copy
thereof to the Speaker of the Batasang Pambansa. The second copy
shall be transmitted to the Commission, the third copy shall be kept
by the provincial election supervisor or city election registrar; the
fourth and the fifth copies to each of the two accredited political
parties.

Section 232. Persons not allowed inside the canvassing room. - It

shall be unlawful for any officer or member of the Armed Forces of
the Philippines, including the Philippine Constabulary, or the
Integrated National Police or any peace officer or any armed or
unarmed persons belonging to an extra-legal police agency, special
forces, reaction forces, strike forces, home defense forces, barangay
self-defense units, barangay tanod, or of any member of the security
or police organizations of government ministries, commissions,
councils, bureaus, offices, instrumentalities, or government-owned or
controlled corporations or their subsidiaries or of any member of a
privately owned or operated security, investigative, protective or
intelligence agency performing identical or similar functions to enter
the room where the canvassing of the election returns are held by the
board of canvassers and within a radius of fifty meters from such
room: Provided, however, That the board of canvassers by a majority
vote, if it deems necessary, may make a call in writing for the detail of
policemen or any peace officers for their protection or for the
protection of the election documents and paraphernalia in the
possession of the board, or for the maintenance of peace and order,
in which case said policemen or peace officers, who shall be in
proper uniform, shall stay outside the room within a radius of thirty
meters near enough to be easily called by the board of canvassers at
any time.

Section 233. When the election returns are delayed, lost or

destroyed. - In case its copy of the election returns is missing, the
board of canvassers shall, by messenger or otherwise, obtain such
missing election returns from the board of election inspectors
concerned, or if said returns have been lost or destroyed, the board
of canvassers, upon prior authority of the Commission, may use any
of the authentic copies of said election returns or a certified copy of
said election returns issued by the Commission, and forthwith direct
its representative to investigate the case and immediately report the
matter to the Commission.

The board of canvassers, notwithstanding the fact that not all the
election returns have been received by it, may terminate the canvass
and proclaim the candidates elected on the basis of the available
election returns if the missing election returns will not affect the
results of the election.

Section 234. Material defects in the election returns. - If it should

clearly appear that some requisites in form or data had been omitted
in the election returns, the board of canvassers shall call for all the
members of the board of election inspectors concerned by the most
expeditious means, for the same board to effect the correction:
Provided, That in case of the omission in the election returns of the
name of any candidate and/or his corresponding votes, the board of
canvassers shall require the board of election inspectors concerned
to complete the necessary data in the election returns and affix
therein their initials: Provided, further, That if the votes omitted in the
returns cannot be ascertained by other means except by recounting
the ballots, the Commission, after satisfying itself that the identity and
integrity of the ballot box have not been violated, shall order the
board of election inspectors to open the ballot box, and, also after
satisfying itself that the integrity of the ballots therein has been duly
preserved, order the board of election inspectors to count the votes
for the candidate whose votes have been omitted with notice thereof
to all candidates for the position involved and thereafter complete the
returns.

The right of a candidate to avail of this provision shall not be lost or

affected by the fact that an election protest is subsequently filed by
any of the candidates.

Section 235. When election returns appear to be tampered with or

falsified. - If the election returns submitted to the board of canvassers
appear to be tampered with, altered or falsified after they have left the
hands of the board of election inspectors, or otherwise not authentic,
or were prepared by the board of election inspectors under duress,
force, intimidation, or prepared by persons other than the member of
the board of election inspectors, the board of canvassers shall use
the other copies of said election returns and, if necessary, the copy
inside the ballot box which upon previous authority given by the
Commission may be retrieved in accordance with Section 220 hereof.
If the other copies of the returns are likewise tampered with, altered,
falsified, not authentic, prepared under duress, force, intimidation, or
prepared by persons other than the members of the board of election
inspectors, the board of canvassers or any candidate affected shall
bring the matter to the attention of the Commission. The Commission
shall then, after giving notice to all candidates concerned and after
satisfying itself that nothing in the ballot box indicate that its identity
and integrity have been violated, order the opening of the ballot box
and, likewise after satisfying itself that the integrity of the ballots
therein has been duly preserved shall order the board of election
inspectors to recount the votes of the candidates affected and
prepare a new return which shall then be used by the board of
canvassers as basis of the canvass.

Section 236. Discrepancies in election returns. - In case it appears to

the board of canvassers that there exists discrepancies in the other
authentic copies of the election returns from a polling place or
discrepancies in the votes of any candidate in words and figures in
the same return, and in either case the difference affects the results
of the election, the Commission, upon motion of the board of
canvassers or any candidate affected and after due notice to all
candidates concerned, shall proceed summarily to determine whether
the integrity of the ballot box had been preserved, and once satisfied
thereof shall order the opening of the ballot box to recount the votes
cast in the polling place solely for the purpose of determining the true
result of the count of votes of the candidates concerned.

Section 237. When integrity of ballots is violated. - If upon the

opening of the ballot box as ordered by the Commission under
Sections 234, 235 and 236, hereof, it should appear that there are
evidence or signs of replacement, tampering or violation of the
integrity of the ballots, the Commission shall not recount the ballots
but shall forthwith seal the ballot box and order its safekeeping.
Section 238. Canvass of remaining or unquestioned returns to
continue. - In cases under Sections 233, 234, 235 and 236 hereof,
the board of canvassers shall continue the canvass of the remaining
or unquestioned election returns. If, after the canvass of all the said
returns, it should be determined that the returns which have been set
aside will affect the result of the election, no proclamation shall be
made except upon orders of the Commission after due notice and
hearing. Any proclamation made in violation hereof shall be null and
void.

Section 239. Watchers. - Each candidate, political party or coalition of

political parties shall be entitled to appoint one watcher in the board
of canvassers. The watcher shall have the right to be present at, and
take note of, all the proceedings of the board of canvassers, to read
the election returns without touching them, to file a protest against
any irregularity in the election returns submitted, and to obtain from
the board of canvassers a resolution thereon.

Section 240. Election resulting in tie. - Whenever it shall appear from

the canvass that two or more candidates have received an equal and
highest number of votes, or in cases where two or more candidates
are to be elected for the same position and two or more candidates
received the same number of votes for the last place in the number to
be elected, the board of canvassers, after recording this fact in its
minutes, shall by resolution, upon five days notice to all the tied
candidates, hold a special public meeting at which the board of
canvassers shall proceed to the drawing of lots of the candidates who
have tied and shall proclaim as elected the candidates who may be
favored by luck, and the candidates so proclaimed shall have the
right to assume office in the same manner as if he had been elected
by plurality of vote. The board of canvassers shall forthwith make a
certificate stating the name of the candidate who had been favored by
luck and his proclamation on the basis thereof.

Nothing in this section shall be construed as depriving a candidate of

his right to contest the election.

ARTICLE XX
PRE-PROCLAMATION CONTROVERSIES

Section 241. Definition. - A pre-proclamation controversy refers to

any question pertaining to or affecting the proceedings of the board of
canvassers which may be raised by any candidate or by any
registered political party or coalition of political parties before the
board or directly with the Commission, or any matter raised under
Sections 233, 234, 235 and 236 in relation to the preparation,
transmission, receipt, custody and appreciation of the election
returns.

Section 242. Commission's exclusive jurisdiction of all pre-

proclamation controversies. - The Commission shall have exclusive
jurisdiction of all pre-proclamation controversies. It may motu proprio
or upon written petition, and after due notice and hearing, order the
partial or total suspension of the proclamation of any candidate-elect
or annual partially or totally any proclamation, if one has been made,
as the evidence shall warrant in accordance with the succeeding
sections.

Section 243. Issues that may be raised in pre-proclamation

controversy. - The following shall be proper issues that may be raised
in a pre-proclamation controversy:

(a) Illegal composition or proceedings of the board of canvassers;

(b) The canvassed election returns are incomplete, contain material

defects, appear to be tampered with or falsified, or contain
discrepancies in the same returns or in other authentic copies thereof
as mentioned in Sections 233, 234, 235 and 236 of this Code;

(c) The election returns were prepared under duress, threats,

coercion, or intimidation, or they are obviously manufactured or not
authentic; and

(d) When substitute or fraudulent returns in controverted polling

places were canvassed, the results of which materially affected the
standing of the aggrieved candidate or candidates.
Section 244. Contested composition or proceedings of the board. -
When the composition or proceedings of the board of canvassers are
contested, the board of canvassers shall, within twenty-four hours,
make a ruling thereon with notice to the contestant who, if adversely
affected, may appeal the matter to the Commission within five days
after the ruling with proper notice to the board of canvassers. After
due notice and hearing, the Commission shall decide the case within
ten days from the filing thereof. During the pendency of the case, the
board of canvassers shall suspend the canvass until the Commission
orders the continuation or resumption thereof and citing their reasons
or grounds therefor.

Section 245. Contested election returns. - Any candidate, political

party or coalition of political parties, contesting the inclusion or
exclusion in the canvass of any election returns on any of the
grounds authorized under this article or in Sections 234, 235 and 236
of Article XIX shall submit their verbal objections to the chairman of
the board of canvassers at the time the questioned returns is
presented for inclusion or exclusion, which objections shall be noted
in the minutes of the canvassing.

The board of canvassers upon receipt of any such objections shall

automatically defer the canvass of the contested returns and shall
proceed to canvass the rest of the returns which are not contested by
any party.

Within twenty-four hours from and after the presentation of a verbal

objection, the same shall be submitted in written form to the board of
canvassers. Thereafter, the board of canvassers shall take up each
contested return, consider the written objections thereto and
summarily rule thereon. Said ruling shall be made oral initially and
then reduced to writing by the board within twenty-four hours from the
time the oral ruling is made.

Any party adversely affected by an oral ruling on its/his objection shall

immediately state orally whether it/he intends to appeal said ruling.
The said intent to appeal shall be stated in the minutes of the
canvassing. If a party manifests its intent to appeal, the board of
canvassers shall set aside the return and proceed to rule on the other
contested returns. When all the contested returns have been ruled
upon by it, the board of canvassers shall suspend the canvass and
shall make an appropriate report to the Commission, copy furnished
the parties.

The board of canvassers shall not proclaim any candidate as winner

unless authorized by the Commission after the latter has ruled on the
objections brought to it on appeal by the losing party and any
proclamation made in violation hereof shall be void ab initio, unless
the contested returns will not adversely affect the results of the
election.

Section 246. Summary proceedings before the Commission. - All pre-

proclamation controversies shall be heard summarily by the
Commission after due notice and hearing, and its decisions shall be
executory after the lapse of five days from receipt by the losing party
of the decision of the Commission, unless restrained by the Supreme
Court.

Section 247. Partial proclamation. - Notwithstanding the pendency of

any pre-proclamation controversy, the Commission may, motu
proprio or upon the filing of a verified petition and after due notice and
hearing, order the proclamation of other winning candidates whose
election will not be affected by the outcome of the controversy.

Section 248. Effect of filing petition to annual or to suspend the

proclamation. - The filing with the Commission of a petition to annual
or to suspend the proclamation of any candidate shall suspend the
running of the period within which to file an election protest or quo
warranto proceedings.

ARTICLE XXI
ELECTION CONTESTS

Section 249. Jurisdiction of the Commission. - The Commission shall

be the sole judge of all contests relating to the elections, returns, and
qualifications of all Members of the Batasang Pambansa, elective
regional, provincial and city officials.

Section 250. Election contests for Batasang Pambansa, regional,

provincial and city offices. - A sworn petition contesting the election of
any Member of the Batasang Pambansa or any regional, provincial or
city official shall be filed with the Commission by any candidate who
has duly filed a certificate of candidacy and has been voted for the
same office, within ten days after the proclamation of the results of
the election.

Section 251. Election contests for municipal offices. - A sworn petition

contesting the election of a municipal officer shall be filed with the
proper regional trial court by any candidate who has duly filed a
certificate of candidacy and has been voted for the same office, within
ten days after proclamation of the results of the election.

Section 252. Election contest for barangay offices. - A sworn petition

contesting the election of a barangay officer shall be filed with the
proper municipal or metropolitan trial court by any candidate who has
duly filed a certificate of candidacy and has been voted for the same
office, within ten days after the proclamation of the results of the
election. The trial court shall decide the election protest within fifteen
days after the filing thereof. The decision of the municipal or
metropolitan trial court may be appealed within ten days from receipt
of a copy thereof by the aggrieved party to the regional trial court
which shall decide the case within thirty days from its submission,
and whose decisions shall be final.

Section 253. Petition for quo warranto. - Any voter contesting the
election of any Member of the Batasang Pambansa, regional,
provincial, or city officer on the ground of ineligibility or of disloyalty to
the Republic of the Philippines shall file a sworn petition for quo
warranto with the Commission within ten days after the proclamation
of the results of the election.

Any voter contesting the election of any municipal or barangay officer

on the ground of ineligibility or of disloyalty to the Republic of the
Philippines shall file a sworn petition for quo warranto with the
regional trial court or metropolitan or municipal trial court,
respectively, within ten days after the proclamation of the results of
the election.

Section 254. Procedure in election contests. - The Commission shall

prescribe the rules to govern the procedure and other matters relating
to election contests pertaining to all national, regional, provincial, and
city offices not later than thirty days before such elections. Such rules
shall provide a simple and inexpensive procedure for the expeditious
disposition of election contests and shall be published in at least two
newspapers of general circulation.

However, with respect to election contests involving municipal and

barangay offices the following rules of procedure shall govern:

(a) Notice of the protest contesting the election of a candidate for a

municipal or barangay office shall be served upon the candidate by
means of a summons at the postal address stated in his certificate of
candidacy except when the protestee, without waiting for the
summons, has made the court understand that he has been notified
of the protest or has filed his answer hereto;

(b) The protestee shall answer the protest within five days after
receipt of the summons, or, in case there has been no summons from
the date of his appearance and in all cases before the
commencement of the hearing of the protest or contest. The answer
shall deal only with the election in the polling places which are
covered by the allegations of the contest;

(c) Should the protestee desire to impugn the votes received by the
protestant in other polling places, he shall file a counter-protest within
the same period fixed for the answer serving a copy thereof upon the
protestant by registered mail or by personal delivery or through the
sheriff;

(d) The protestant shall answer the counter-protest within five days
after notice;

(e) Within the period of five days counted from the filing of the protest
any other candidate for the same office may intervene in the case as
other contestants and ask for affirmative relief in his favor by a
petition in intervention, which shall be considered as another contest,
except that it shall be substantiated within the same proceedings. The
protestant or protestee shall answer the protest in intervention within
five days after notice;
(f) If no answer shall be filed to the contest, counter-protest, or to the
protest in intervention, within the time limits respectively fixed, a
general denial shall be deemed to have been entered;

(g) In election contest proceedings, the permanent registry list of

voters shall be conclusive in regard to the question as to who had the
right to vote in said election.

Section 255. Judicial counting of votes in election contest. - Where

allegations in a protest or counter-protest so warrant, or whenever in
the opinion of the court the interests of justice so require, it shall
immediately order the book of voters, ballot boxes and their keys,
ballots and other documents used in the election be brought before it
and that the ballots be examined and the votes recounted.

Section 256. Appeals. - Appeals from any decision rendered by the

regional trial court under Section

251 and paragraph two, Section 253 hereof with respect to quo
warranto petitions filed in election contests affecting municipal
officers, the aggrieved party may appeal to the Intermediate Appellate
Court within five days after receipt of a copy of the decision. No
motion for reconsideration shall be entertained by the court. The
appeal shall be decided within sixty days after the case has been
submitted for decision.

Section 257. Decision in the Commission. - The Commission shall

decide all election cases brought before it within ninety days from the
date of their submission for decision. The decision of the Commission
shall become final thirty days after receipt of judgment.

Section 258. Preferential disposition of contests in courts. - The

courts, in their respective cases, shall give preference to election
contests over all other cases, except those of habeas corpus, and
shall without delay, hear and, within thirty days from the date of their
submission for decision, but in every case within six months after
filing, decide the same.
Section 259. Actual or compensatory damages. - Actual or
compensatory damages may be granted in all election contests or in
quo warranto proceedings in accordance with law.

Section 260. Notice of decisions. - The clerk of court and the

corresponding official in the Commission before whom an election
contest or a quo warranto proceeding has been instituted or where
the appeal of said case has been taken shall notify immediately the
President of the Philippines of the final disposition thereof. In election
contests involving provincial, city, municipal, or barangay offices,
notice of such final disposition shall also be sent to the secretary of
the local sanggunian concerned. If the decision be that none of the
parties has been legally elected, said official shall certify such
decision to the President of the Philippines and, in appropriate cases,
to the Commission.

ARTICLE XXII
ELECTION OFFENSES

Section 261. Prohibited Acts. - The following shall be guilty of an

election offense:

(a) Vote-buying and vote-selling. -

(1) Any person who gives, offers or promises money or anything of

value, gives or promises any office or employment, franchise or grant,
public or private, or makes or offers to make an expenditure, directly
or indirectly, or cause an expenditure to be made to any person,
association, corporation, entity, or community in order to induce
anyone or the public in general to vote for or against any candidate or
withhold his vote in the election, or to vote for or against any aspirant
for the nomination or choice of a candidate in a convention or similar
selection process of a political party.

(2) Any person, association, corporation, group or community who

solicits or receives, directly or indirectly, any expenditure or promise
of any office or employment, public or private, for any of the foregoing
considerations.
(b) Conspiracy to bribe voters. - Two or more persons, whether
candidates or not, who come to an agreement concerning the
commission of any violation of paragraph (a) of this section and
decide to commit it.

(c) Wagering upon result of election. - Any person who bets or

wagers upon the outcome of, or any contingency connected with an
election. Any money or thing of value or deposit of money or thing of
value situated anywhere in the Philippines put as such bet or wager
shall be forfeited to the government.

(d) Coercion of subordinates. -

(1) Any public officer, or any officer of any public or private

corporation or association, or any head, superior, or administrator of
any religious organization, or any employer or land-owner who
coerces or intimidates or compels, or in any manner influence,
directly or indirectly, any of his subordinates or members or
parishioners or employees or house helpers, tenants, overseers, farm
helpers, tillers, or lease holders to aid, campaign or vote for or
against any candidate or any aspirant for the nomination or selection
of candidates.

(2) Any public officer or any officer of any commercial, industrial,

agricultural, economic or social enterprise or public or private
corporation or association, or any head, superior or administrator of
any religious organization, or any employer or landowner who
dismisses or threatens to dismiss, punishes or threatens to punish be
reducing his salary, wage or compensation, or by demotion, transfer,
suspension, separation, excommunication, ejectment, or causing him
annoyance in the performance of his job or in his membership, any
subordinate member or affiliate, parishioner, employee or house
helper, tenant, overseer, farm helper, tiller, or lease holder, for
disobeying or not complying with any of the acts ordered by the
former to aid, campaign or vote for or against any candidate, or any
aspirant for the nomination or selection of candidates.

(e) Threats, intimidation, terrorism, use of fraudulent device or other

forms of coercion. - Any person who, directly or indirectly, threatens,
intimidates or actually causes, inflicts or produces any violence,
injury, punishment, damage, loss or disadvantage upon any person
or persons or that of the immediate members of his family, his honor
or property, or uses any fraudulent device or scheme to compel or
induce the registration or refraining from registration of any voter, or
the participation in a campaign or refraining or desistance from any
campaign, or the casting of any vote or omission to vote, or any
promise of such registration, campaign, vote, or omission therefrom.

(f) Coercion of election officials and employees. - Any person who,

directly or indirectly, threatens, intimidates, terrorizes or coerces any
election official or employee in the performance of his election
functions or duties.

(g) Appointment of new employees, creation of new position,

promotion, or giving salary increases. - During the period of forty-five
days before a regular election and thirty days before a special
election,

(1) any head, official or appointing officer of a government office,

agency or instrumentality, whether national or local, including
government-owned or controlled corporations, who appoints or hires
any new employee, whether provisional, temporary or casual, or
creates and fills any new position, except upon prior authority of the
Commission. The Commission shall not grant the authority sought
unless, it is satisfied that the position to be filled is essential to the
proper functioning of the office or agency concerned, and that the
position shall not be filled in a manner that may influence the election.

As an exception to the foregoing provisions, a new employee may be

appointed in case of urgent need: Provided, however, That notice of
the appointment shall be given to the Commission within three days
from the date of the appointment. Any appointment or hiring in
violation of this provision shall be null and void.

(2) Any government official who promotes, or gives any increase of

salary or remuneration or privilege to any government official or
employee, including those in government-owned or controlled
corporations.
(h) Transfer of officers and employees in the civil service. - Any public
official who makes or causes any transfer or detail whatever of any
officer or employee in the civil service including public school
teachers, within the election period except upon prior approval of the
Commission.

(i) Intervention of public officers and employees. - Any officer or

employee in the civil service, except those holding political offices;
any officer, employee, or member or the Armed Forces of the
Philippines, or any police force, special forces, home defense forces,
barangay self-defense units and all other para-military units that now
exist or which may hereafter be organized who, directly or indirectly,
intervenes in any election campaign or engages in any partisan
political activity, except to vote or to preserve public order, if he is a
peace officer.

(j) Undue influence. - It is unlawful for any person to promise any

office or employment, public or private, or to make or offer to make an
expenditure, directly or indirectly, or to cause an expenditure to be
made to any person, association, corporation or entity, which may
induce anyone or the public in general either to vote or withhold his
vote, or to vote for or against any candidate in any election or any
aspirant for the nomination or selection of an official candidate in a
convention of a political party. It is likewise unlawful for any person,
association, corporation or community, to solicit or receive, directly or
indirectly, any expenditure or promise or any office, or employment,
public or private, for any of the foregoing considerations.

(k) Unlawful electioneering. - It is unlawful to solicit votes or

undertake any propaganda on the day of registration before the board
of election inspectors and on the day of election, for or against any
candidate or any political party within the polling place and with a
radius of thirty meters thereof.

(l) Prohibition against dismissal of employees, laborers, or tenants. -

No employee or laborer shall be dismissed, nor a tenant be ejected
from his landholdings for refusing or failing to vote for any candidate
of his employer or landowner. Any employee, laborer or tenant so
dismissed or ejected shall be reinstated and the salary or wage of the
employee or laborer, or the share of the harvest of the tenant, shall
be restored to the aggrieved party upon application to the proper
court.

(m) Appointment or use of special policemen, special agents,

confidential agents or the like. - During the campaign period, on the
day before and on election day, any appointing authority who
appoints or any person who utilizes the services of special policemen,
special agents, confidential agents or persons performing similar
functions; persons previously appointed as special policemen, special
agents, confidential agents or persons performing similar functions
who continue acting as such, and those who fail to turn over their
firearms, uniforms, insignias and other badges of authority to the
proper officer who issued the same.

At the start of the aforementioned period, the barangay chairman,

municipal mayor, city mayor, provincial governor, or any appointing
authority shall submit to the Commission a complete list of all special
policemen, special agents, confidential agents or persons performing
similar functions in the employ of their respective political
subdivisions, with such particulars as the Commission may require.

(n) Illegal release of prisoners before and after election. - The

Director of the Bureau of Prisons, any provincial warden, the keeper
of the jail or the person or persons required by law to keep prisoners
in their custody who illegally orders or allows any prisoner detained in
the national penitentiary, or the provincial, city or municipal jail to
leave the premises thereof sixty days before and thirty days after the
election. The municipal or city warden, the provincial warden, the
keeper of the jail or the person or persons required by law to keep
prisoners in their custody shall post in three conspicuous public
places a list of the prisoners or detention prisoners under their care.
Detention prisoners must be categorized as such.

(o) Use of public funds, money deposited in trust, equipment, facilities

owned or controlled by the government for an election campaign. -
Any person who uses under any guise whatsoever, directly or
indirectly, (1) public funds or money deposited with, or held in trust
by, public financing institutions or by government offices, banks, or
agencies; (2) any printing press, radio, or television station or audio-
visual equipment operated by the Government or by its divisions,
sub-divisions, agencies or instrumentalities, including government-
owned or controlled corporations, or by the Armed Forces of the
Philippines; or (3) any equipment, vehicle, facility, apparatus, or
paraphernalia owned by the government or by its political
subdivisions, agencies including government-owned or controlled
corporations, or by the Armed Forces of the Philippines for any
election campaign or for any partisan political activity.

(p) Deadly weapons. - Any person who carries any deadly weapon in
the polling place and within a radius of one hundred meters thereof
during the days and hours fixed by law for the registration of voters in
the polling place, voting, counting of votes, or preparation of the
election returns. However, in cases of affray, turmoil, or disorder, any
peace officer or public officer authorized by the Commission to
supervise the election is entitled to carry firearms or any other
weapon for the purpose of preserving order and enforcing the law.

(q) Carrying firearms outside residence or place of business. - Any

person who, although possessing a permit to carry firearms, carries
any firearms outside his residence or place of business during the
election period, unless authorized in writing by the Commission:
Provided, That a motor vehicle, water or air craft shall not be
considered a residence or place of business or extension hereof.

This prohibition shall not apply to cashiers and disbursing officers

while in the performance of their duties or to persons who by nature
of their official duties, profession, business or occupation habitually
carry large sums of money or valuables.

(r) Use of armored land, water or air craft. - Any person who uses
during the campaign period, on the day before and on election day,
any armored land, water or air craft, provided with any temporary or
permanent equipment or any other device or contraption for the
mounting or installation of cannons, machine guns and other similar
high caliber firearms, including military type tanks, half trucks, scout
trucks, armored trucks, of any make or model, whether new,
reconditioned, rebuilt or remodelled: Provided, That banking or
financial institutions and all business firms may use not more than
two armored vehicles strictly for, and limited to, the purpose of
transporting cash, gold bullion or other valuables in connection with
their business from and to their place of business, upon previous
authority of the Commission.

(s) Wearing of uniforms and bearing arms. - During the campaign

period, on the day before and on election day, any member of
security or police organization of government agencies, commissions,
councils, bureaus, offices, or government-owned or controlled
corporations, or privately-owned or operated security, investigative,
protective or intelligence agencies, who wears his uniform or uses his
insignia, decorations or regalia, or bears arms outside the immediate
vicinity of his place of work: Provided, That this prohibition shall not
apply when said member is in pursuit of a person who has committed
or is committing a crime in the premises he is guarding; or when
escorting or providing security for the transport of payrolls, deposits,
or other valuables; or when guarding the residence of private persons
or when guarding private residences, buildings or offices: Provided,
further, That in the last case prior written approval of the Commission
shall be obtained. The Commission shall decide all applications for
authority under this paragraph within fifteen days from the date of the
filing of such application.

During the same period, and ending thirty days thereafter any
member of the Armed Forces of the Philippines, special, forces,
home defense forces, barangay self-defense units and all other para-
military units that now exist or which may hereafter be organized who
wears his uniform or bears arms outside the camp, garrison or
barracks to which he is assigned or detailed or outside their homes,
in case of members of para-military units, unless (1) the President of
the Philippines shall have given previous authority therefor, and the
Commission notified thereof in writing, or (2) the Commission
authorizes him to do so, which authority it shall give only when
necessary to assist it in maintaining free, orderly and honest
elections, and only after notice and hearing. All personnel of the
Armed Forces authorized by the President or the Commission to bear
arms or wear their uniforms outside their camps and all police and
peace officers shall bear their true name, rank and serial number, if
any, stitched in block letters on a white background on the left breast
of their uniform, in letters and numbers of a clearly legible design at
least two centimeters tall, which shall at all times remain visible and
uncovered.
During the election period, whenever the Commission finds it
necessary for the promotion of free, orderly, honest and peaceful
elections in a specific area, it shall confiscate or order the
confiscation of firearms of any member or members of the Armed
Forces of the Philippines, police forces, home defense forces,
barangay self-defense units, and all other para-military units that now
exist, or which may hereafter be organized, or any member or
members of the security or police organization, government
ministries, commissions, councils, bureaus, offices, instrumentalities,
or government-owned or controlled corporations and other
subsidiaries, or of any member or members of privately owned or
operated security, investigative, protective or intelligence agencies
performing identical or similar functions.

(t) Policemen and provincial guards acting as bodyguards or security

guards. - During the campaign period, on the day before and on
election day, any member of the city or municipal police force, any
provincial or sub-provincial guard, any member of the Armed Forces
of the Philippines, special forces, home defense forces, barangay
self-defense units and all other para-military units that now exist or
which may hereafter be organized who acts as bodyguard or security
guard of any public official, candidate or any other person, and any of
the latter who utilizes the services of the former as bodyguard or
security guard: Provided, That, after due notice and hearing, when
the life and security of a candidate is in jeopardy, the Commission is
empowered to assign at the candidate's choice, any member of the
Philippine Constabulary or the police force of any municipality within
the province to act as his bodyguard or security guard in a number to
be determined by the Commission but not to exceed three per
candidate: Provided, however, That when the circumstances require
immediate action, the Commission may issue a temporary order
allowing the assignment of any member of the Philippine
Constabulary or the local police force to act as bodyguard or security
guard of the candidate, subject to confirmation or revocation.

(u) Organization or maintenance of reaction forces, strike forces, or

other similar forces. - Any person who organizes or maintains a
reaction force, strike force or similar force during the election period.
The heads of all reaction forces, strike forces, or similar forces shall,
not later than forty-five days before the election, submit to the
Commission a complete list of all members thereof with such
particulars as the Commission may require.

(v) Prohibition against release, disbursement or expenditure of public

funds. - Any public official or employee including barangay officials
and those of government-owned or controlled corporations and their
subsidiaries, who, during forty-five days before a regular election and
thirty days before a special election, releases, disburses or expends
any public funds for:

(1) Any and all kinds of public works, except the following:

(a) Maintenance of existing and/or completed public works project:

Provided, That not more than the average number of laborers or
employees already employed therein during the six-month period
immediately prior to the beginning of the forty-five day period before
election day shall be permitted to work during such time: Provided,
further, That no additional laborers shall be employed for
maintenance work within the said period of forty-five days;

(b) Work undertaken by contract through public bidding held, or by

negotiated contract awarded, before the forty-five day period before
election: Provided, That work for the purpose of this section
undertaken under the so-called "takay" or "paquiao" system shall not
be considered as work by contract;

(c) Payment for the usual cost of preparation for working drawings,
specifications, bills of materials, estimates, and other procedures
preparatory to actual construction including the purchase of materials
and equipment, and all incidental expenses for wages of watchmen
and other laborers employed for such work in the central office and
field storehouses before the beginning of such period: Provided, That
the number of such laborers shall not be increased over the number
hired when the project or projects were commenced; and

(d) Emergency work necessitated by the occurrence of a public

calamity, but such work shall be limited to the restoration of the
damaged facility.
No payment shall be made within five days before the date of election
to laborers who have rendered services in projects or works except
those falling under subparagraphs (a), (b), (c), and (d), of this
paragraph.

This prohibition shall not apply to ongoing public works projects

commenced before the campaign period or similar projects under
foreign agreements. For purposes of this provision, it shall be the
duty of the government officials or agencies concerned to report to
the Commission the list of all such projects being undertaken by
them.

(2) The Ministry of Social Services and Development and any other
office in other ministries of the government performing functions
similar to said ministry, except for salaries of personnel, and for such
other routine and normal expenses, and for such other expenses as
the Commission may authorize after due notice and hearing. Should
a calamity or disaster occur, all releases normally or usually coursed
through the said ministries and offices of other ministries shall be
turned over to, and administered and disbursed by, the Philippine
National Red Cross, subject to the supervision of the Commission on
Audit or its representatives, and no candidate or his or her spouse or
member of his family within the second civil degree of affinity or
consanguinity shall participate, directly or indirectly, in the distribution
of any relief or other goods to the victims of the calamity or disaster;
and

(3) The Ministry of Human Settlements and any other office in any
other ministry of the government performing functions similar to said
ministry, except for salaries of personnel and for such other
necessary administrative or other expenses as the Commission may
authorize after due notice and hearing.

(w) Prohibition against construction of public works, delivery of

materials for public works and issuance of treasury warrants and
similar devices. - During the period of forty-five days preceding a
regular election and thirty days before a special election, any person
who (a) undertakes the construction of any public works, except for
projects or works exempted in the preceding paragraph; or (b) issues,
uses or avails of treasury warrants or any device undertaking future
delivery of money, goods or other things of value chargeable against
public funds.

(x) Suspension of elective provincial, city, municipal or barangay

officer. - The provisions of law to the contrary notwithstanding during
the election period, any public official who suspends, without prior
approval of the Commission, any elective provincial, city, municipal or
barangay officer, unless said suspension will be for purposes of
applying the "Anti-Graft and Corrupt Practices Act" in relation to the
suspension and removal of elective officials; in which case the
provisions of this section shall be inapplicable.

(y) On Registration of Voters:

(1) Any person who, having all the qualifications and none of the
disqualifications of a voter, fails without justifiable excuse to register
as a voter in an election, plebiscite or referendum in which he is
qualified to vote.

(2) Any person who knowingly makes any false or untruthful

statement relative to any of the data or information required in the
application for registration.

(3) Any person who deliberately imprints or causes the imprinting of

blurred or indistinct fingerprints on any of the copies of the application
for registration or on the voter's affidavit; or any person in charge of
the registration of voters who deliberately or through negligence,
causes or allows the imprinting of blurred or indistinct fingerprints on
any of the aforementioned registration forms, or any person who
tampers with the fingerprints in said registration records.

(4) Any member of the board of election inspectors who approves any
application which on its face shows that the applicant does not
possess all the qualifications prescribed by law for a voter; or who
disapproves any application which on its face shows that the
applicant possesses all such qualifications.

(5) Any person who, being a registered voter, registers anew without
filing an application for cancellation of his previous registration.
(6) Any person who registers in substitution for another whether with
or without the latter's knowledge or consent.

(7) Any person who tampers with or changes without authority any
data or entry in any voter's application for registration.

(8) Any person who delays, hinders or obstruct another from

registering.

(9) Any person who falsely certifies or identifies another as a bona

fide resident of a particular place or locality for the purpose of
securing the latter's registration as a voter.

(10) Any person who uses the voter's affidavit of another for the
purpose of voting, whether or not he actually succeeds in voting.

(11) Any person who places, inserts or otherwise includes, as

approved application for registration in the book of voters or in the
provincial or national central files of registered voters, the application
of any fictitious voter or any application that has not been approved;
or removes from, or otherwise takes out of the book of voters or the
provincial or national central files of registered voters any duly
approved voter's application, except upon lawful order of the
Commission, or of a competent court or after proper cancellation as
provided in Sections 122, 123, 124 and 125 hereof.

(12) Any person who transfers or causes the transfer of the

registration record of a voter to the book of voters of another polling
place, unless said transfer was due to a change of address of the
voter and the voter was duly notified of his new polling place.

(13) Any person who asks, demands, takes, accepts or possesses,

directly or indirectly, the voter's affidavit of another, in order to induce
the latter to withhold his vote, or to vote for or against any candidate
in an election or any issue in a plebiscite or referendum. It shall be
presumed prima facie that the asking, demanding, taking, accepting,
or possessing is with such intent if done within the period beginning
ten days before election day and ending ten days after election day,
unless the voter's affidavit of another and the latter are both members
of the same family.

(14) Any person who delivers, hands over, entrusts, gives, directly or
indirectly his voter's affidavit to another in consideration of money or
other benefit or promises thereof, or takes or accepts such voter's
affidavit directly or indirectly, by giving or causing the giving of money
or other benefit or making or causing the making of a promise
thereof.

(15) Any person who alters in any manner, tears, defaces, removes
or destroys any certified list of voters.

(16) Any person who takes, carries or possesses any blank or

unused registration form already issued to a city or municipality
outside of said city or municipality except as otherwise provided in
this Code or when directed by express order of the court or of the
Commission.

(17) Any person who maliciously omits, tampers or transfers to

another list the name of a registered voter from the official list of
voters posted outside the polling place.

(z) On voting:

(1) Any person who fails to cast his vote without justifiable excuse.

(2) Any person who votes more than once in the same election, or
who, not being a registered voter, votes in an election.

(3) Any person who votes in substitution for another whether with or
without the latter's knowledge and/or consent.

(4) Any person who, not being illiterate or physically disabled, allows
his ballot to be prepared by another, or any person who prepares the
ballot of another who is not illiterate or physically disabled, with or
without the latter's knowledge and/or consent.
(5) Any person who avails himself of any means of scheme to
discover the contents of the ballot of a voter who is preparing or
casting his vote or who has just voted.

(6) Any voter who, in the course of voting, uses a ballot other than the
one given by the board of election inspectors or has in his possession
more than one official ballot.

(7) Any person who places under arrest or detains a voter without
lawful cause, or molests him in such a manner as to obstruct or
prevent him from going to the polling place to cast his vote or from
returning home after casting his vote, or to compel him to reveal how
he voted.

(8) Any member of the board of election inspectors charged with the
duty of reading the ballot during the counting of votes who
deliberately omits to read the vote duly written on the ballot, or
misreads the vote actually written thereon or reads the name of a
candidate where no name is written on the ballot.

(9) Any member of the board of election inspectors charged with the
duty of tallying

the votes in the tally board or sheet, election returns or other

prescribed form who deliberately fails to record a vote therein or
records erroneously the votes as read, or records a vote where no
such vote has been read by the chairman.

(10) Any member of a board of election inspectors who has made

possible the casting of more votes than there are registered voters.

(11) Any person who, for the purpose of disrupting or obstructing the
election process or causing confusion among the voters, propagates
false and alarming reports or information or transmits or circulates
false orders, directives or messages regarding any matter relating to
the printing of official ballots, the postponement of the election, the
transfer of polling place or the general conduct of the election.

(12) Any person who, without legal authority, destroys, substitutes or

takes away from the possession of those having legal custody
thereof, or from the place where they are legally deposited, any
election form or document or ballot box which contains official ballots
or other documents used in the election.

(13) Any person having legal custody of the ballot box containing the
official ballots used in the election who opens or destroys said box or
removes or destroys its contents without or against the order of the
Commission or who, through his negligence, enables any person to
commit any of the aforementioned acts, or takes away said ballot box
from his custody.

(14) Any member of the board of election inspectors who knowingly

uses ballots other than the official ballots, except in those cases
where the use of emergency ballots is authorized.

(15) Any public official who neglects or fails to properly preserve or

account for any ballot box, documents and forms received by him and
kept under his custody.

(16) Any person who reveals the contents of the ballot of an illiterate
or disabled voter whom he assisted in preparing a ballot.

(17) Any person who, without authority, transfers the location of a

polling place.

(18) Any person who, without authority, prints or causes the printing
of any ballot or election returns that appears as official ballots or
election returns or who distributes or causes the same to be
distributed for use in the election, whether or not they are actually
used.

(19) Any person who, without authority, keeps, uses or carries out or
causes to be kept, used or carried out, any official ballot or election
returns or printed proof thereof, type-form mould, electro-type printing
plates and any other plate, numbering machines and other printing
paraphernalia being used in connection with the printing of official
ballots or election returns.

(20) Any official or employee of any printing establishment or of the

Commission or any member of the committee in charge of the
printing of official ballots or election returns who causes official ballots
or election returns to be printed in quantities exceeding those
authorized by the Commission or who distributes, delivers, or in any
manner disposes of or causes to be distributed, delivered, or
disposed of, any official ballot or election returns to any person or
persons not authorized by law or by the Commission to receive or
keep official ballots or election returns or who sends or causes them
to be sent to any place not designated by law or by the Commission.

(21) Any person who, through any act, means or device, violates the
integrity of any official ballot or election returns before or after they
are used in the election.

(22) Any person who removes, tears, defaces or destroys any

certified list of candidates posted inside the voting booths during the
hours of voting.

(23) Any person who holds or causes the holding of an election on

any other day than that fixed by law or by the Commission, or stops
any election being legally held.

(24) Any person who deliberately blurs his fingerprint in the voting
record.

(aa) On Canvassing:

(1) Any chairman of the board of canvassers who fails to give due
notice of the date, time and place of the meeting of said board to the
candidates, political parties and/or members of the board.

(2) Any member of the board of canvassers who proceeds with the
canvass of the votes and/or proclamation of any candidate which was
suspended or annulled by the Commission.

(3) Any member of the board of canvassers who proceeds with the
canvass of votes and/or proclamation of any candidate in the
absence of quorum, or without giving due notice of the date, time and
place of the meeting of the board to the candidates, political parties,
and/or other members of the board.
(4) Any member of the board of canvassers who, without authority of
the Commission, uses in the canvass of votes and/or proclamation of
any candidate any document other than the official copy of the
election returns.

(bb) Common to all boards of election inspectors and boards of

canvassers:

(1) Any member of any board of election inspectors or board of

canvassers who deliberately absents himself from the meetings of
said body for the purpose of obstructing or delaying the performance
of its duties or functions.

(2) Any member of any board of election inspectors or board of

canvassers who, without justifiable reason, refuses to sign and certify
any election form required by this Code or prescribed by the
Commission although he was present during the meeting of the said
body.

(3) Any person who, being ineligible for appointment as member of

any board of election inspectors or board of canvassers, accepts an
appointment to said body, assumes office, and actually serves as a
member thereof, or any of public officer or any person acting in his
behalf who appoints such ineligible person knowing him to be
ineligible.

(4) Any person who, in the presence or within the hearing of any
board of election inspectors or board of canvassers during any of its
meetings, conducts himself in such a disorderly manner as to
interrupt or disrupt the work or proceedings to the end of preventing
said body from performing its functions, either partly or totally.

(5) Any public official or person acting in his behalf who relieves any
member of any board of election inspectors or board of canvassers or
who changes or causes the change of the assignments of any
member of said board of election inspectors or board of canvassers
without authority of the Commission.

(cc) On candidacy and campaign:

(1) Any political party which holds political conventions or meetings to
nominate its official candidates earlier that the period fixed in this
Code.

(2) Any person who abstracts, destroys or cancels any certificate of

candidacy duly filed and which has not been cancelled upon order of
the Commission.

(3) Any person who misleads the board of election inspectors by

submitting any false or spurious certificate of candidacy or document
to the prejudice of a candidate.

(4) Any person who, being authorized to receive certificates of

candidacy, receives any certificate of candidacy outside the period for
filing the same and makes it appear that said certificate of candidacy
was filed on time; or any person who, by means of fraud, threat,
intimidation, terrorism or coercion, causes or compels the
commission of said act.

(5) Any person who, by any device or means, jams, obstructs or

interferes with a radio or television broadcast of any lawful political
program.

(6) Any person who solicits votes or undertakes any propaganda, on

the day of election, for or against any candidate or any political party
within the polling place or within a radius of thirty meters thereof.

(dd) Other prohibitions:

(1) Any person who sells, furnishes, offers, buys, serves or takes
intoxicating liquor on the days fixed by law for the registration of
voters in the polling place, or on the day before the election or on
election day: Provided, That hotels and other establishments duly
certified by the Ministry of Tourism as tourist oriented and habitually
in the business of catering to foreign tourists may be exempted for
justifiable reasons upon prior authority of the Commission: Provided,
further, That foreign tourists taking intoxicating liquor in said
authorized hotels or establishments are exempted from the provisions
of this subparagraph.
(2) Any person who opens in any polling place or within a radius of
thirty meters thereof on election day and during the counting of votes,
booths or stalls of any kind for the sale, dispensing or display of
wares, merchandise or refreshments, whether solid or liquid, or for
any other purposes.

(3) Any person who holds on election day, fairs, cockfights, boxing,
horse races, jai-alai or any other similar sports.

(4) Refusal to carry election mail matter. - Any operator or employee

of a public utility or transportation company operating under a
certificate of public convenience, including government-owned or
controlled postal service or its employees or deputized agents who
refuse to carry official election mail matters free of charge during the
election period. In addition to the penalty prescribed herein, such
refusal shall constitute a ground for cancellation or revocation of
certificate of public convenience or franchise.

(5) Prohibition against discrimination in the sale of air time. - Any

person who operates a radio or television station who without
justifiable cause discriminates against any political party, coalition or
aggroupment of parties or any candidate in the sale of air time. In
addition to the penalty prescribed herein, such refusal shall constitute
a ground for cancellation or revocation of the franchise.

Section 262. Other election offenses. - Violation of the provisions, or

pertinent portions, of the following sections of this Code shall
constitute election offenses: Sections 9, 18, 74, 75, 76, 80, 81, 82,
83, 84, 85, 86, 87, 88, 89, 95, 96, 97, 98, 99, 100, 101, 102, 103,
104, 105, 106 107, 108, 109, 110, 111, 112, 122, 123, 127, 128, 129,
132, 134, 135, 145, 148, 150, 152, 172, 173, 174, 178, 180, 182,
184, 185, 186, 189, 190, 191, 192, 194, 195, 196, 197, 198, 202,
203, 204, 205, 206, 207, 208, 209, 210, 211, 212, 213, 214, 215,
216, 217, 218, 219, 220, 223, 229, 230, 231, 233, 234, 235, 236, 239
and 240.

Section 263. Persons criminally liable. - The principals, accomplices,

and accessories, as defined in the Revised Penal Code, shall be
criminally liable for election offenses. If the one responsible be a
political party or an entity, its president or head, the officials and
employees of the same, performing duties connected with the offense
committed and its members who may be principals, accomplices, or
accessories shall be liable, in addition to the liability of such party or
entity.

Section 264. Penalties. - Any person found guilty of any election

offense under this Code shall be punished with imprisonment of not
less than one year but not more than six years and shall not be
subject to probation. In addition, the guilty party shall be sentenced to
suffer disqualification to hold public office and deprivation of the right
of suffrage. If he is a foreigner, he shall be sentenced to deportation
which shall be enforced after the prison term has been served. Any
political party found guilty shall be sentenced to pay a fine of not less
than ten thousand pesos, which shall be imposed upon such party
after criminal action has been instituted in which their corresponding
officials have been found guilty.

In case of prisoner or prisoners illegally released from any

penitentiary or jail during the prohibited period as provided in Section
261, paragraph (n) of this Code, the director of prisons, provincial
warden, keeper of the jail or prison, or persons who are required by
law to keep said prisoner in their custody shall, if convicted by a
competent court, be sentenced to suffer the penalty of prision mayor
in its maximum period if the prisoner or prisoners so illegally released
commit any act of intimidation, terrorism of interference in the
election.

Any person found guilty of the offense of failure to register or failure

to vote shall, upon conviction, be fined one hundred pesos. In
addition, he shall suffer disqualification to run for public office in the
next succeeding election following his conviction or be appointed to a
public office for a period of one year following his conviction.

Section 265. Prosecution. - The Commission shall, through its duly

authorized legal officers, have the exclusive power to conduct
preliminary investigation of all election offenses punishable under this
Code, and to prosecute the same. The Commission may avail of the
assistance of other prosecuting arms of the government: Provided,
however, That in the event that the Commission fails to act on any
complaint within four months from his filing, the complainant may file
the complaint with the office of the fiscal or with the Ministry of Justice
for proper investigation and prosecution, if warranted.

Section 266. Arrest in connection with the election campaign. - No

person shall be arrested and/or detained at any time for any alleged
offense committed during and in connection with any election through
any act or language tending to support or oppose any candidate,
political party or coalition of political parties under or pursuant to any
order of whatever name or nature and by whomsoever issued except
only upon a warrant of arrest issued by a competent judge after all
the requirements of the Constitution shall have been strictly complied
with.

If the offense charged is punishable under a presidential decree

whether originally or by amendment of a previous law, the death
penalty shall not be imposed upon the offender except where murder,
rape or arson is involved. In all cases, the penalty shall not be higher
than reclusion perpetua and the offender shall be entitled to
reasonable bail upon sufficient sureties to be granted speedily by the
competent court. Moreover, loss of the right of citizenship and
confiscation of property shall not be imposed.

Any officer or a person who shall violate any provision of this section
shall be punished by imprisonment of not less than six (6) years and
one (1) day nor more than twelve (12) years, with the accessory
penalties for election offenses. The provision of Section 267 of this
Code shall not apply to prosecution under this section.

Section 267. Prescription. - Election offenses shall prescribe after five

years from the date of their commission. If the discovery of the
offense be made in an election contest proceedings, the period of
prescription shall commence on the date on which the judgment in
such proceedings becomes final and executory.

Section 268. Jurisdiction of courts. - The regional trial court shall have
the exclusive original jurisdiction to try and decide any criminal action
or proceedings for violation of this Code, except those relating to the
offense of failure to register or failure to vote which shall be under the
jurisdiction of the metropolitan or municipal trial courts. From the
decision of the courts, appeal will lie as in other criminal cases.
Section 269. Preferential disposition of election offenses. - The
investigation and prosecution of cases involving violations of the
election laws shall be given preference and priority by the
Commission on Elections and prosecuting officials. Their
investigation shall be commenced without delay, and shall be
resolved by the investigating officer within five days from its
submission for resolution. The courts shall likewise give preference to
election offenses over all other cases, except petitions for writ of
habeas corpus. Their trial shall likewise be commenced without
delay, and shall be conducted continuously until terminated, and the
case shall be decided within thirty days from its submission for
decision.

ARTICLE XXIII
LEGAL FEES

Section 270. Collection of legal fees. - The Commission is hereby

authorized to collect fees as follows:

(a) For furnishing certified transcript of records or copies of any

record, decision or ruling or entry of which any person is entitled to
demand and receive a copy, for every page P 2.00

(b) For every certificate or writ or process 10.00

(c) For each certificate not on process 2.00

(d) In appropriate cases, for filing a second and succeeding motions

for reconsideration 50.00

(e) For every search of any record of more than one year's standing
and reading the same 10.00

Section 271. Payment of Fees. - The fees mentioned in the preceding

section shall be paid to the cashier of the Commission who shall in all
cases issue a receipt for the same and shall enter the amount
received upon his book specifying the date when received, the fee,
and the person from whom received. The cashier shall immediately
report such payment to the Commission.
ARTICLE XXIV
TRANSITORY PROVISIONS

Section 272. Pending actions. - Pending actions and causes of action

arising before the effectivity of this Code shall be governed by the
laws then in force.

Section 273. Designation of certain pre-election acts immediately

after the approval of this Code. - If it should no longer be reasonably
possible to observe the periods and dates herein prescribed for
certain pre-election acts in the election immediately following the
approval of this Code, the Commission shall fix other periods in order
to ensure that voters shall not be deprived of their right of suffrage.

Section 274. Accreditation of dominant opposition party. - For

purposes of the next local elections in 1986 and the next presidential
elections in 1987 or earlier, the dominant opposition party shall be
that political party, group or organization or coalition of major national
or regional political parties opposed to the majority party which has
the capability to wage a bona fide nationwide campaign as shown by
the extent of its organization and the number of Members of
Parliament affiliated with it: Provided, however, That with specific
reference to the next local elections in constituencies which are
represented in the Batasang Pambansa by Members who do not
belong either to the majority party or to the political party or coalition
of political parties described above, the representatives of the
opposition in the board of election inspectors, board of canvassers or
other similar bodies shall be proposed exclusively by the party to
which said Member of the Batasang Pambansa belong: Provided,
however, That it is registered before the next local elections.

Any political party, group or organization or coalition of political

parties seeking accreditation under this section shall file a verified
petition with the Commission on Elections stating therein such
information as may be necessary to enable the Commission to
determine the qualifications for accreditation in accordance with the
standard herein provided.
The Commission on Elections shall accredit the dominant opposition
party not later than thirty days before the campaign period in every
election.

In case a presidential election is held before the next local elections

or before the presidential election in 1987, the provisions of the
Constitution shall be enforced in determining which shall be the
dominant opposition party for purposes of the next local elections.

Section 275. Party representatives in the board of election inspectors.

- Until such time as the two accredited political parties are determined
in accordance with the provisions of the Constitution, the two
members shall each be proposed by the ruling party and the
dominant opposition party as may be determined by the Commission
pursuant to the provisions of this Code.

Section 276. Appropriations, and insurance for board of election

inspectors. - The cost of holding the next local elections provided in
this Code shall be funded out of the current appropriations of the
Commission on Elections provided for this purpose. In case of
deficiency, additional funding may be provided out of the special
activities fund intended for special priority activities authorized in the
General Appropriations Act.

The chairman and the poll clerk of the board of election inspectors
shall receive per diem at the rate of one hundred pesos on election
day and fifty pesos on each of the registration and revision days. The
inspectors of the political parties shall be granted a per diem of fifty
pesos on election day and twenty-five pesos on each of the
registration and revision days. Education support personnel of the
Ministry of Education, Culture and Sports shall receive a per diem of
twenty-five pesos during election day.

Supervisors, principals and other administrators of the Ministry of

Education, Culture and Sports who may be asked by the
Commission, and actually report, for supervisory assignment during
registration and election day shall be entitled to a per diem of fifty
pesos.
The provincial, city and municipal treasurers shall receive per diem at
the rate of one hundred pesos on election day.

Payments of per diems under this section shall be made within

seventy-two hours after the election or registration day.

The chairman, poll clerk and party representatives in the board of

election inspectors shall be insured with the government Service
Insurance System at fifty thousand pesos each under terms and
conditions that shall be agreed upon by the Chairman of the
Commission, the Ministries of the Budget, and the Minister of
Education, Culture and Sports.

Section 277. Special election for President before 1987. - In case a

vacancy in the Office of the President occurs before the presidential
election in 1987, the Speaker of the Batasang Pambansa shall act as
President until a President and a Vice-President or either of them
shall have been elected and shall have qualified. Their term of office
shall commence at noon of the tenth day following their proclamation,
and shall end at noon on the thirtieth day of June of the sixth year
thereafter.

The Acting President may not declare martial law or suspend the
privilege of the writ of habeas corpus without the prior consent of at
least a majority of all the Members of the Batasang Pambansa, or
issue any decree, order or letter of instructions while the lawmaking
power of the President is in force. He shall be deemed automatically
on leave and the Speaker Pro-Tempore shall act as Speaker. While
acting as President, the Speaker may not be removed. He shall not
be eligible for election in the immediately succeeding election for
President and Vice-President.

The Batasang Pambansa shall, at ten o'clock in the morning of the

third day after the vacancy occurs, convene in accordance with its
rules without need of a call and within seven days enact a law calling
for a special election to elect a President and a Vice-president to be
held not earlier than forty-five days nor later than sixty days from the
time of such call. The bill calling such special election shall be
deemed certified under paragraph (2), Section 19, Article VIII of the
Constitution and shall become law upon its approval on third reading
by the Batasang Pambansa. Appropriations for the special election
shall be charged against any current appropriations and shall be
exempt from the requirements of paragraph (4), Section 16 of Article
VIII of the Constitution. As provided in the third paragraph, Section 9
of Article VII thereof, the convening of the Batasang Pambansa
cannot be suspended nor the special election postponed. No special
election shall be called if the vacancy occurs within seventy days
before the date of the presidential election of 1987.

Appointments extended by the Acting President shall remain

effective, unless revoked by the newly elected President within ninety
days from his assumption of office.

Section 278. Special election to fill existing vacancies in the Batasang

Pambansa. - The election of Members to fill existing vacancies in the
Batasang Pambansa shall be held simultaneously with the next local
election in 1986 or in the next special national election for President
and Vice-President if one is held earlier.

Section 279. Elective officials in existing sub-provinces. - The election

of elective public officials in existing sub-provinces shall likewise be
held simultaneously with the next local elections of 1986 and 1990 in
accordance with their respective charters, subject to the same term,
qualifications, manner of election and resolution of election
controversies as are herein provided for comparable provincial
elective officials.

ARTICLE XXV
FINAL PROVISIONS

Section 280. Reorganization of the Commission on Elections. - In

order to promote maximum efficiency in carrying out its constitutional
duty to insure free, orderly and honest elections and in discharging its
judicial powers and functions under the Constitution, the Commission
is hereby authorized to reorganize its office within twelve months after
the first election to be held under this Code. It may create, merge, or
abolish departments, offices, divisions or units, redistribute functions
and reassign personnel, change designations of existing positions
subject to pertinent existing laws and regulations. It may recommend
the levels and rates of salaries of its subordinate officials and
employees subject to the laws and regulations on civil service and
compensation, position classification and standardization of salaries:
Provided, That no permanent official or employee already in the
service of the Commission, upon approval of this Code, shall be laid
off, or demoted in rank or salary.

Section 281. Separability clause. - If for any reason any section or

provision of this Code, or any portion thereof, or the application of
such section, provision or portion to any person, group or
circumstance is declared invalid or unconstitutional, the remainder of
this Code or the application of such section, provision or portion
thereof to other persons, groups or circumstances shall not be
affected by such declaration.

Section 282. Repealing clause. - Presidential Decree No. 1296,

otherwise known as The 1978 Election Code, as amended, is hereby
repealed. All other election laws, decrees, executive orders, rules and
regulations, or parts thereof, inconsistent with the provisions of this
Code are hereby repealed, except Presidential Decree No. 1618 and
Batas Pambansa Blg. 20 governing the election of the members of
the Sangguniang Pampook of Regions IX and XII.

Section 283. Effectivity. - This Code shall take effect upon its
approval.

Approved, December 3, 1985.

Annotations