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ADMINISTRATIVE AGENCIES

CREATION AND ABOLITION OF AGENCIES


Public office right, authority and duty, created by law, by which,
for a given period either fixed by law or enduring at the pleasure of the
appointing 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.
a public trust or responsibility, and embraces the idea of term, duration,
emoluments, powers and duties.

v 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 is supreme, and the legislature may decide for
itself what offices are suitable, necessary, or convenient.

v All offices created by the legislature are wholly within the power of that
body, and it may prescribe the mode of filling the office and the powers and
duties of the office holders, and, if it sees fit, abolish the office.

REORGANIZATION OF ADMINISTRATIVE AGENCIES

Definition of Reorganization
Reorganization process of restructuring the bureaucracys
organizational and functional set-up, to make it more viable in terms of the
economy, efficiency, effectiveness and make it more responsive to the needs
of its public clientele as authorized by law.
means used by the legislature to reorganize or abolish offices, which
it may do so by law directly or indirectly by authorizing an executive
department or agency to reorganize the office.

Basis of the Presidents Power to Reorganize


v The exercise of the power of reorganization or abolition of offices must be
made in good faith, otherwise the same may be declared invalid.

Evidence of bad faith (RA 6656):


1) Where there is a significant increase in the number of positions in the
new staffing pattern of the department or agency concerned;
2) Where an office is abolished and another performing substantially the
same functions us created;
3) Where incumbents were replaced by those less qualified in terms of
status of appointment, performance and merit;
4) 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
5) Where the removal violates the order of separation.
Bases of Power to Reorganize
1) Section 62 of RA 7645
Sec. 62. Unauthorized organizational changes. 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 organizational structures and be funded from
appropriations by this Act.
>>> The President is authorized to effect organizational changes, including
the creation of offices in the department or agency concerned.

2) Section 20, Book III of the 1987 Administrative Code


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.

3) Presidential Decree Nos. 1416 and 1772


>>> 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.

4) Section 31, Book III, Chapter 10 of the 1987 Administrative Code


Sec. 31. Continuing Authority of the President to Reorganize his Office.
The President, subject to the policy in the Executive Order and in order to
achieve simplicity, economy and efficiency, shall have continuing authority
to reorganize the administrative structure of the Office of the President.

Limitations on the Power of Other Agencies to Reorganize


v The exercise of the power of reorganization or abolition of offices must be
made in good faith, otherwise the same may be declared invalid.

v A reorganization is improper or invalid when effected without observing


the prescribed priorities in retention and separation of the personnel
concerned taking into account all the relevant factors involved.

Order of separation (Sec. 3, RA 6656):


a) Casual employees with less than five (5) years of government service;
b) Casual employee with five (5) years of government service;
c) Employees holding temporary appointments; and
d) Employees holding permanent appointments: Provided, That those in
the same category as enumerated above, who are least qualified in terms of
performance and merit shall be laid off first, length of service
notwithstanding.

v No officer or employee in the career service shall be removed except for


a valid cause and after due notice and hearing.

v Officers and employees who are separated from the service as a result of
a valid reorganization are entitled to separation and other retirement
benefits accruing to them by reason of the termination of their services.

v The power granted to an executive agency to reorganize itself covers


only offices falling under said agency and not those attached thereto.

PURPOSES FOR CREATING ADMINISTRATIVE AGENCIES


1) To unclog court dockets. To relieve courts of the burden of resolving
all controversies, specialized agencies have been created to hear and decide
particular disputes.
2) To meet the growing complexities of modern society. As problems of
modern society multiply, which can hardly be met by the legislature,
administrative agencies are established to promptly cope up with such
problems.
3) To help in the regulation of ramified activities of a developing
country.
4) To entrust to specialized agencies in specified fields with their
special knowledge, experience, and capability the task of dealing with
problems thereof as they have the experience, expertise and power of
dispatch to provide solutions thereto.

COMMON TYPES OF ADMINISTRATIVE AGENCIES


1) Agencies created to function in situations wherein the government
is offering some gratuity, grant, or special privileges.
Philippine Veterans Board
Board on Pensions for Veterans
Philippine Veterans Administration
Government Service Insurance System
Social Security System

2) Agencies set up to function in situations wherein the government is


seeking to carry on certain governmental functions.
Bureau of Immigration
Bureau of Internal Revenue
Board of Special Inquiry and Board of Commissioners
Civil Service Commission
Central Bank
3) Agencies set up to function in situations wherein the government is
performing some business service for the public.
Bureau of Posts
Postal Savings Bank
Metropolitan Waterworks and Sewerages Authority
Philippine National Railways
Civil Aeronautics Administration

4) Agencies set up to function in situations wherein the government is


seeking to regulate business affected with public interest.
Fiber Inspection Board
Philippines Patent Office
Office of the Insurance Commissioner

5) Agencies set up to function in situations where the government is


seeking under police power to regulate private business and individuals.
Securities and Exchange Commission
Board of Food Inspectors
Board of Review of Motion Pictures
Professional Regulatory Commission

6) Agencies set up to function in situations wherein the government is


seeking to adjust individual controversies because of some strong social
policy involved.
National Labor Relations Commission
Court of Agrarian Relations
Regional Offices of the Ministry of Labor
Bureau of Labor Standards
Women and Minors Bureau

7) Agencies set up to function in situations where the government is


seeking to conduct investigations and gather evidence for information,
recommendation or prosecution of crimes.
Commission on Human Rights
National Bureau of Investigation

Prosecutors Office

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