Facts
The Secretary of the Department of Transportation and Communications (DOTC) issued Memorandum Order No. 96-735 (February 19, 1996), directing the Land Transportation Franchising Regulatory Board (LTFRB) to effect the transfer of its regional functions to the DOTC-Cordillera Administrative Region (CAR) Regional Office, pending the creation of a regular LTFRB Regional Office thereat. Organic personnel of DOTC-CAR were directed to perform these LTFRB functions on a concurrent capacity, subject to the supervision and control of the LTFRB Central Office. Subsequently, the DOTC Secretary issued Department Order No. 97-1025 (January 29, 1997), which formally established the DOTC-CAR Regional Office as the Regional Office of the LTFRB for purposes of economy and effective coordination, to exercise the LTFRB regional functions in the CAR.
Respondent Roberto Mabalot filed a petition challenging the orders, arguing that the transfer of powers, especially quasi-judicial functions, and the establishment of the new office constituted an unconstitutional and undue exercise of legislative power. The lower court declared both orders null and void, finding them violative of the constitutional provision against encroachment on legislative powers and the provision enjoining appointive officials from holding multiple offices.
Issues
- Whether the Secretary of the DOTC, acting as the President’s alter ego, possesses the legal authority to reorganize the Department and transfer or establish the regional functions of the LTFRB, or whether such action constitutes an undue exercise of legislative power.
- Whether the designation of DOTC-CAR personnel to concurrently perform LTFRB functions, or the subsequent establishment of DOTC-CAR as the LTFRB Regional Office, violates the constitutional prohibition against appointive officials holding multiple offices or receiving additional compensation.
Ruling
WHEREFORE, in view of the foregoing, the instant petition is hereby GRANTED. ACCORDINGLY, the decision dated 31 March 1999 of the Regional Trial Court of Quezon City-Branch 81 in Special Civil Action Case No. Q-96-26868 is REVERSED and SET ASIDE.
Essential Elements of Jurisprudence
- Presidential Control and the Alter Ego Doctrine (Art. VII, Sec. 17): The President has control of all executive departments, bureaus, and offices, and ensures the faithful execution of laws. The DOTC Secretary acts as the alter ego of the President, and acts performed by the Secretary in the regular course of business are presumptively the acts of the Chief Executive unless disapproved.
- Creation of Public Office by Authority of Law: A public office may be created by the Constitution, by statute, or by authority of law. Congress can delegate the power to create, abolish, or merge offices in the executive department.
- Continuing Authority of the President to Reorganize: The President is vested with the continuing authority to reorganize the National Government. This authority includes the power to create offices necessary for efficient government conduct, transfer functions and personnel from one department/bureau to another, and otherwise modify their powers and functions (Presidential Decree No. 1416, as amended by PD No. 1772).
- Basis for Reorganization: The DOTC Secretary’s orders were validly issued pursuant to Administrative Order No. 36 of the President, which explicitly directed departments to establish regional offices in the Cordillera Administrative Region (CAR). The actions of the Secretary in creating the LTFRB-CAR Regional Office were a direct implementation of the Chief Executive’s directive.
- Reorganization in Good Faith: A reorganization is valid provided it is pursued in good faith, typically for the purpose of economy or to make the bureaucracy more efficient. The reorganization in this case was decreed “in the interest of the service” and “for purposes of economy and more effective coordination” of DOTC functions.
- Designation vs. Multiple Offices (Art. IX-B, Sec. 7): The assignment of DOTC-CAR personnel to concurrently perform LTFRB functions (as designated) pending the creation of a regular office is valid and does not violate the constitutional prohibition against holding multiple offices (Art. IX-B, Sec. 7). The prohibition generally does not apply to an office or employment held in the exercise of the primary functions of one’s principal office. Furthermore, without proof that personnel received additional, double, or indirect compensation, the prohibition under Article IX-B, Section 8 is not violated.
Sample Q&A
Question: The DOTC Secretary issued Department Order No. 97-1025, which designated the DOTC-CAR Regional Office to exercise the regional functions of the LTFRB. A citizen challenges the order, asserting that this transfer of powers, including quasi-judicial functions, must be authorized by a statute enacted by Congress, citing the non-delegation doctrine. Is the citizen correct in arguing that the DOTC Secretary acted without legal authority and usurped legislative power?
Answer: No, the citizen is incorrect. The Supreme Court has upheld the DOTC Secretary’s actions as a legal and valid exercise of executive power. The creation of the LTFRB Regional Office through the DOTC Secretary’s order falls under the third mode of creating a public office: by authority of law. Specifically, the order was issued pursuant to Administrative Order No. 36 of the President. The President, through P.D. No. 1416 (as amended by P.D. No. 1772), possesses the continuing authority to reorganize the National Government, which includes the power to create necessary offices and transfer functions from one bureau or agency to another. Since the DOTC Secretary acted merely as the alter ego of the President to implement the latter’s directive (Constitution, Art. VII, Sec. 17), the reorganization was deemed to be within the scope of the Chief Executive’s authority and did not constitute an undue exercise of legislative power.
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