REORGANIZING THE OFFICE OF THE PRESIDENT AND CREATING THE OFFICE OF THE PRIME MINISTER PURSUANT TO THE 1981 AMENDMENTS TO THE CONSTITUTION

WHEREAS, the Filipino people have ratified through
a plebiscite held on April 7, 1981 the amendments to the Constitution of the
Republic of the Philippines;

WHEREAS, there is a need to institute substantive
changes at the highest level of the executive structure of the government to
conform with the aforesaid constitutional amendments;

WHEREAS, it is necessary to delineate and clarify
the functions and relationships of critical positions and units at the highest
level of the executive structure of the government for more efficient
administration of the government’s policies and programs;

WHEREAS, under Presidential Decree No. 830, the
President is specifically granted continuing authority to reorganize his
Office; and

WHEREAS, under Presidential Decree No. 1416 as
amended, the President is empowered to undertake such organizational and
related improvements as may be appropriate in the light of changing
circumstances and new developments.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President
of the Philippines, by virtue of the powers vested in me by the Constitution
and the authority vested in me by Presidential Decree No. 830 and Presidential
Decree No. 1416 as amended, do hereby order and ordain:

A. THE OFFICE OF THE PRESIDENT

SECTION 1. The Office of the President shall
consist of the Private Offices, the system of Presidential Assistants, the
Presidential Advisers, and the Presidential Security Command. In addition, the
agencies and other entities under the Office of the President are those
enumerated in Sections 7 to 10 hereof.

SECTION 2. The Private Offices shall include the
Private Secretary’s Office, Social Secretary’s Office, Malacañang Household
Office, and Presidential Museum.

SECTION 3. The system of Presidential Assistants
shall be headed by a Presidential Executive Assistant assisted by such Deputy
Presidential Executive Assistants and other subordinate Presidential Assistants
as may be necessary. It shall also include the following units:

(1) Administrative Office
(2) Finance Office
(3) Legal Office
(4) Malacañang Clinic
(5) Malacañang Public Assistance Center
(6) Presidential Appointments Office
(7) Presidential Management Staff
(8) Protocol Office
(9) Presidential Documents Office
(10) Political Affairs Office
(11) Engineer’s Office

The Administrative Office shall be organized from
existing components, including applicable personnel, of the Administrative
Office, Accounting Office, and Records Office of the present Office of the
President.

The Finance Office and the Legal Office shall be
organized from existing components, including applicable personnel, of the
Finance Office and the Legal Office, respectively, of the present Office
of the President.

The Malacañang Public Assistance Center shall be
created from the merger of the present Complaints and Investigation Office and
the Malacañang Assistance Center.

The other units above-mentioned shall consist of
the same units in the present Office of the President.

The President may create such additional units in
the Office of the President as he may deem necessary.

SECTION 4. There shall be a Presidential Executive
Assistant, with the rank of minister, who shall coordinate and supervise the
system of Presidential Assistants under him as provided for in Section 3; serve
as the administrative link between the Office of the President and the various
other offices of the Government; and perform such other functions as the
President may direct. The Presidential Executive Assistant shall prepare and
submit to the President for approval the system of administrative relationships
within the Office of the President.

SECTION 5. The Presidential Advisers shall provide
direct or personal advisory or consultative services to the President in such
fields and under such conditions as the President may determine.

SECTION 6. The Presidential Security Command of the
Armed Forces of the Philippines shall provide for the security of the President
and his family, his Office, and perform other related duties. The Presidential
Security Command shall include the Presidential Aides Office, Presidential
Security Unit, Provost Marshal’s Office, Malacañang Command Center and the
General Communications Support Unit.

SECTION 7. The following bodies and entities shall
continue to be under the chairmanship of the President:

(1) Council of Leaders
(2) Foreign Policy Council
(3) General Military Council
(4) National Security Council
(5) National Economic and Development Authority
(6) Special Presidential Reorganization Committee

SECTION 8. The following entities shall continue to
be directly under the President:

(1) National Intelligence and Security Authority
(2) Office of the Presidential Assistant on National Minorities
(3) President’s Center for Special Studies
(4) Presidential Commission on Reorganization

SECTION 9. The following entities shall continue to
be under the administrative supervision of the Office of the President:

(1) Board of Energy
(2) National Manpower and Youth Council
(3) Philippine Racing Commission
(4) Task Force Anti-Gambling
(5) National Computer Center
(6) National Cartographic Authority
(7) Central Tender Board
(8) Games and Amusements Board

SECTION 10. The following entities shall continue
to be attached to the Office of the President:

(1) Central Bank of the Philippines
(2) Pambansang Katipunan ng Kabataang Barangay ng Pilipinas
(3) Philippine Coconut Authority
(4) Philippine Sugar Commission

SECTION 11. The President shall exercise all the
powers and functions as provided for by the Constitution. Specifically, he
shall be the head of state and chief executive of the Republic, and shall have
control of the ministries. In addition, in accordance with applicable
laws, the President shall have the following powers and functions:

A. Powers and Functions as Head of State

1. Enter into contracts and agreements with other
countries or international agencies; and

2. Mobilize citizens for national defense, and
where necessary, extend the service of military personnel, recall to active
duty any retired officer or enlisted man, take possession of vessels of
Philippine registry for naval and military operation in times of war and other
national emergency, and decide on the matter of detention of warlike vessels
containing arms and ammunitions.

B. Executive Powers and Functions

1. Powers and Functions as Chief Executive

(1) Issue bonds or other securities to finance
government projects, and endorse debentures for the government as primary
obligor;

(2) Approve the denominations, dimensions, designs,
inscriptions and other characteristics of notes, and the weight, fineness,
designs, denominations and other characteristics of coins issued by the Central
Bank; and modify the par value of the peso;

(3) Negotiate and approve the subscription of the
Philippine government to the capital stock of any foreign financing or lending
institution and domestic government-owned or controlled corporation or the
increase thereof and approve the release of funds therefor;

(4) Certify labor disputes for compulsory
arbitration in proper cases

(5) Make adjustments on all internal revenue taxes
relative to rates, taxable base and classification of articles, under certain
conditions;

(6) Increase, reduce or remove the existing
protective rates of import duty, including any necessary change in
classification of articles, subject to certain limitations;

(7) Subject export products under Title III of the
Tariff and Customs Code, as amended, to higher or lower rates of duty, include
additional products, excluded or exempt any product from such Title, or
additionally subject any products with an export quota, subject to certain
conditions;

(8) Approve projects of the government to be funded
from foreign loans, credits or indebtedness contracted by the government;

(9) Approve the compromise or release by the
Commission on Audit of certain claims of government agencies;

(10) Authorize government financial institutions to
extend loans to government agencies or corporations;

(11) Approve alternative procedures in opening
contract areas and in selecting the best offer for petroleum operations; and

(12) Offer the examination of the business affairs,
administration and condition of any corporation.

2. Administrative Powers and Functions

(1) Create, abolish, group, coordinate,
consolidate, merge or integrate ministries, bureaus, offices, agencies,
instrumentalities and functions of the government; and transfer functions,
appropriations, equipment, property, records and personnel from one ministry,
bureau, office, agency or instrumentality to another;

(2) Standardize salaries, materials and equipment;

(3) Remove or otherwise discipline officers of the
government as may be provided by law; and

(4) Commute or remove administrative penalties or
disabilities upon officials or employees in disciplinary cases.

3. Other Powers and Functions

(1) Determine, designate and reserve any land of
the public domain of any classification for specific purposes, and withdraw or
exclude any portion or portions therefrom;

(2) Approve the acquisition, transfer, encumbrance,
lease or sale, and dispose or convey title to lands and other properties of the
government;

(3) Issue executive orders and proclamations, as
well as rules, regulations or instructions to implement the laws; and modify or
revoke the same;

(4) Declare, suspend, and terminate a state of
national emergency; and

(5) Proclaims special elections.

C. Residual Powers and Functions

1. Exercise such other powers and functions vested
in the President which are provided for under the laws of the land and which
are not specifically enumerated above, or which are not delegated by the
President in accordance with law, unless the Batasang Pambansa provides
otherwise.

SECTION 12. All references to “The President/Prime
Minister” or to “The President and Prime Minister” in existing laws, Executive
Orders, and other issuances shall be construed to refer to the President,
except as may otherwise be determined by the President, or by applicable law.

B. THE OFFICE OF THE PRIME MINISTER

SECTION 13. The Office of the Prime Minister shall
consist of the common staff support system as hereinafter provided for, and the
agencies under or attached to the said Office.

The common staff support system shall refer to such
staff or units as may be necessary which shall provide direct or personal
assistance to the Prime Minister, as well as those which shall provide him with
technical, administrative or general services. The latter shall include the
Administrative Office, Legal Office, Legislative Office, Accounting Office,
Finance Office, Cabinet Secretariat, and Records Office, and shall absorb the
equivalent units or components thereof in the present Office of the President.

SECTION 14. The Prime Minister shall be assisted,
whenever necessary, by a Deputy Prime Minister as may be determined by the
President.

The Prime Minister shall recommend for appointment
by the President a Secretary-General with the rank of deputy minister who shall
supervise and coordinate the common staff support system of the Office of the
Prime Minister. The Secretary-General and the Office of the Prime Minister
shall also provide the necessary staff support to the Executive Committee.

Nothing in this Executive Order shall be construed
as prohibiting the Prime Minister from holding a cabinet position with
portfolio in a concurrent capacity.

SECTION 15. The Prime Minister shall assume the
chairmanship of the National Council on Integrated Area Development.

The Prime Minister shall serve as ex-officio
Vice-Chairman of the National Economic and Development Authority, and as member
of the boards, agencies, and entities where the President is Chairman, without
prejudice to his being designated as Vice-Chairman thereof by the President.

SECTION 16. The entities under the administrative
supervision of the Prime Minister are the following:

(1) General Services Administration
(2) Philippine Atomic Energy Commission
(3) Presidential Committee to Study Government Corporations which is hereby
renamed Committee to Study Government Corporations

The President, motu propio, or upon the
recommendation of the Prime Minister, may make changes in the attachments of
corporations and other entities for purposes of policy and program
coordination.

SECTION 17. The Prime Minister shall exercise all
the powers and functions as provided for under the Constitution and the laws,
and as may be delegated by the President pursuant to Section 19 hereof.
Specifically, he shall be the head of the Cabinet and the chairman of the
Executive Committee, and shall exercise supervision of all ministries.

SECTION 18. The Prime Minister shall submit to the
Batasang Pambansa within thirty days from the opening of each regular session,
as the basis of the general appropriations bill, a budget of receipts based on
existing and proposed revenue measures, and of expenditures, after approval by
the President. The Ministry of the Budget shall prepare such budget in
coordination and consultation with the Prime Minister.

C. OPERATING RELATIONSHIPS

SECTION 19. As a general principle, the President
shall be concerned principally with major policy and decision-making processes.
The Prime Minister shall be responsible for the day-to-day supervision and the
details of administration of the government. Matters elevated for Presidential
action shall be those of such national importance or significance as would
require decision of the President himself, and which preferably have been first
coursed through the Prime Minister as such or as head of the Executive
Committee or the Cabinet for appropriate recommendation. Initially, the Prime
Minister and the Executive Committee shall exercise recommendatory powers with
respect to matters requiring Presidential decision, without prejudice to
exercising such specific powers and functions as may be delegated to him by the
President. Initially, the Executive Committee shall function along the lines
and procedures established for the Cabinet Standing Committee.

Presidential control over ministries includes the
authority to act directly on any specific function entrusted to the ministries;
direct the performance of a duty; restrain the commission of acts; review,
approve, reverse or modify acts and decisions of ministries; determine
priorities in the execution of plans and programs; and prescribe standards,
guidelines, plans and programs.

Prime Ministerial supervision of ministries refers
to the authority to oversee the operations of the ministries and to insure that
they are managed economically, efficiently, and effectively in accordance with
established policy; to coordinate and harmonize inter-ministerial operation and
activities; and to take such action as may be necessary for the proper
performance of official functions. The Prime Ministerial supervision herein
defined shall be without prejudice to the exercise of such powers and functions
as may be delegated to the Prime Minister by the President.

SECTION 20. Nothing herein shall be construed as
inhibiting or delimiting any of the President’s powers, including the authority
to direct and institute the conduct of studies on any issue for submission of
appropriate recommendation to him, or to institute measures for directly
handling matters or administering agencies which he deems vital enough to
warrant his personal attention, or to review decisions of the Prime Minister,
the Executive Committee, or the Cabinet.

In addition to the powers of the Prime Minister
provided for herein, the Prime Minister shall submit to the President for
approval a system for the delegation of Presidential authority, as well as
guidelines on matters which should be elevated for Presidential action and
those that could normally be finally acted upon by the Prime Minister.

The various ministries shall have the authority to
fully exercise their decision making powers and functions at their level, and
to act on all matters affecting solely their substantive operations.

SECTION 21. The Prime Minister shall have the
authority to act on all matters delegated to him by the President in accordance
with law without having to indicate in the proper document the phrase “By
authority of the President”.

D. GENERAL AND TRANSITORY PROVISIONS

SECTION 22. The President shall issue from time to
time such directives as may be necessary for the implementation of this
Executive Order. Any transfer of functions or units pursuant to this Executive
Order shall include applicable appropriations, records, equipment, property and
such personnel as may be necessary. Assistants to the President and to the
Prime Minister are personal to the President or Prime Minister as the case may
be, and shall serve only at their pleasure: provided, however, that this
concept of Assistants for the President or Prime Minister shall not apply to
the career Staff Directors in the present Office of the President.

SECTION 23. The various agencies now under the
Office of the President, including those whose enabling charters did not
explicitly specify their respective organizational locations, are hereby
transferred, as follows:

	Agency	Ministry
(1)	Alcohol Commission	Ministry of Energy
(2)	Boy Scouts of the Philippines	Ministry of Education and Culture
(3)	Commission on Filipinos Overseas	Ministry of Foreign Affairs
(4)	Commission on Population	National Economic and Development Authority
(5)	Commission on the Settlement of Land Problems	Ministry of Justice
(6)	Committee on Transport Cooperatives	Ministry of Transportation and Communications
(7)	Council for the Welfare of Children	Ministry of Social Services and Development
(8)	Cultural Center of the Philippines	Ministry of Human Settlements
(9)	Environmental Center of the Philippines	Ministry of Human Settlements
(10)	Export Credit Corporation	Ministry of Finance
(11)	Garments and Textile Export Board	Ministry of Trade
(12)	Gintong Alay Foundation	Ministry of Youth and Sports Development
(13)	Girl Scouts of the Philippines	Ministry of Education and Culture
(14)	Kalinga Special Development Region	National Economic and Development Authority
(15)	Museum of Philippine Costume	Ministry of Human Settlements
(16)	National Artists Awards Committee	Ministry of Human Settlements
(17)	National Board for Teachers	Ministry of Education and Culture
(18)	National Census Coordinating Board	National Economic and Development Authority
(19)	National Coal Authority	Ministry of Energy
(20)	National Commission Concerning Disabled Persons	Ministry of Social Services and Development
(21)	National Commission on the Role of Filipino Women	Ministry of Human Settlements
(22)	National Committee on Anti-Organized Crime	Ministry of National Defense
(23)	National Committee on Geological Sciences	Ministry of Natural Resources
(24)	National Dendro Development Corporation	Ministry of Human Settlements
(25)	National Disaster Coordinating Council	Ministry of National Defense
(26)	National Electrification Administration	Ministry of Human Settlements
(27)	National Fire Society Council	Ministry of National Defense
(28	National Food Authority	Ministry of Human Settlements
(29)	National Media Production Center	Ministry of Public Information
(30)	National Nutrition Council	Ministry of Agriculture
(31)	National Parks Development Committee	Ministry of Human Settlements
(32)	National Social Action Council	Ministry of Education and Culture
(33)	National Stud Farm	Ministry of Education and Culture
(34)	National Wages Council	Ministry of Labor and Employment
(35)	National Youth and Sports Development Foundation of the Philippines	Ministry of Youth and Sports Development
(36)	Nayong Pilipino Foundation	Ministry of Human Settlements
(37)	Pagkain ng Bayan	Ministry of Human Settlements
(38)	Philippine Amusements and Gaming Corporation	Ministry of Finance
(39)	Philippine Crop Insurance Corporation	Ministry of Finance
(40)	Philippine Gamefowl Commission	Ministry of Local Government and Community Development
(41)	Philippine Heart Center for Asia	Ministry of Human Settlements
(42)	Philippine National Lines	Ministry of Transportation and Communications
(43)	Philippine National Red Cross	Ministry of Social Services and Development
(44)	Philippine National Volunteer Service Coordinating Agency	National Economic and Development Authority
(45)	Presidential Committee on the Rehabilitation Program for Moro National Liberation Front (MNLF) which is hereby renamed National Committee on the Rehabilitation Program for Moro National Liberation Front (MNLF)	Ministry of Human Settlements
(46)	Presidential Council for Forest Ecosystem Management which is hereby renamed National Council for Forest Ecosystem Management	Ministry of Natural Resources
(47)	Procurement Service Council	Ministry of the Budget
(48)	Public Estates Authority	National Economic and Development Authority
(49)	Rural Waterworks Development Corporation	Ministry of Human Settlements
(50)	Sacobia Development Authority	Ministry of Human Settlements
(51)	Securities and Exchange Commission	Ministry of Finance
(52)	Task Force Pawikan Council	Ministry of Natural Resources
(53)	Toll Regulatory Board	Ministry of Transportation and Communications

SECTION 24. The President is hereby authorized to
reconstitute the chairmanship or membership of any of the above agencies as may
be necessary and whenever applicable as a result of the transfer of the
agencies from the present Office of the President.

SECTION 25. The following agencies are abolished,
and their functions, applicable appropriations, records, equipment, property,
and such personnel as may be necessary are hereby transferred to the
appropriate agencies of the government as shall be determined by the President:

(1) Consultative Council on Muslim Affairs
(2) Board of Liquidators
(3) Bonded Export Marketing Board
(4) Committee on Government Management Consultancy
(5) National Commission on Savings
(6) National Gaming Commission
(7) Philippine Coordinating Committee on the Asian Development Bank
(8) Presidential Action Committee on Food
(9) National Commission on Countryside Credit and Collection

The President shall promulgate the necessary
issuances to provide for the implementing details to carry out this provision.

SECTION 26. All laws, decrees, orders,
proclamations, rules, regulations, and issuances or parts thereof, which are
inconsistent with any of the provisions of this Executive Order are hereby
repealed or modified accordingly.

SECTION 27. Any portion or provision of this
Executive Order that may be declared unconstitutional shall not have the effect
of nullifying the other provisions thereof, provided that such remaining
portions can still stand and be given effect in their entirety to accomplish
the objectives of this Executive Order.

SECTION 28. This Executive Order shall take effect
immediately.

DONE in the City of Manila, this twenty-seventh day
of July, in the year of Our Lord, Nineteen Hundred and Eighty-One.

By the President:

(SGD.) JUAN C. TUVERA
Presidential Executive Assistant

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