REPUBLIC ACT NO. 5435 - AN
ACT AUTHORIZING THE PRESIDENT OF THE PHILIPPINES, WITH THE HELP OF A
COMMISSION ON REORGANIZATION, TO REORGANIZE THE DIFFERENT EXECUTIVE
DEPARTMENTS, BUREAUS, OFFICES, AGENCIES AND INSTRUMENTALITIES OF THE
GOVERNMENT. INCLUDING BANKING OR FINANCIAL INSTITUTIONS AND
CORPORATIONS OWNED OR CONTROLLED BY IT, SUBJECT TO CERTAIN CONDITIONS
AND LIMITATIONS
Section 1. Declaration of policy. — It is hereby declared to
be the policy of Congress to promote simplicity, economy and efficiency
in the government to enable it to pursue programs consistent with
national goals for accelerated social and economic development and to
improve the service in the transaction of the public business in the
executive departments, bureaus, offices, commissions, boards, agencies
and instrumentalities of the government, including banking or financial
institutions and corporations owned or controlled by the government
within the limits of their respective charters, except the Legislative
and Judicial Departments, the General Auditing Office, the Commission
on Elections and local governments, by:
(a) Limiting expenditures to the lowest amount
consistent with the efficient performance of essential services,
activities and functions;
(b) Eliminating duplication and overlapping of
services, activities and functions;
(c) Consolidating and integrating services,
activities and functions of a similar nature;
(d) Abolishing services, activities and functions not
necessary to the efficient conduct of government; and
(e) Defining and limiting executive functions,
services and activities.
Sec. 2. For the purpose of carrying out the policy
set forth in Section One of this Act, there is hereby created a
Commission on Reorganization to be constituted within ten days after
the approval of this Act.
a. The Commission shall be composed of nine members
as follows:
(1) Three members of the Senate to be appointed by
the President of the Senate, one of whom shall come from the party
having the second largest number of votes in the last general
elections;
(2) Three members of the House of Representatives to
be appointed by the Speaker of the House of Representatives, one of
whom shall come from the party having the second largest number of
votes in the last general elections;
(3) Three members to be appointed by the President of
the Philippines, who may come from within or without the government
service.
The President shall designate from among the members the chairman of
the Commission.
b. The Chairman, with the approval of the Commission,
shall have the power to appoint in accordance with the provisions of
the Civil Service Law, and fix the compensation of, such personnel as
it may deem necessary for the proper performance of its duties.
c. The Commission shall formulate policy guidelines
not inconsistent with law, to be followed in effecting the provisions
of this Act and in conducting public hearings for the purpose of
reconciling conflicting interests which may arise as a result of this
reorganization.
d. The Commission shall consult with and make use of
such studies and recommendations as may be presented by the Management
Service of the Budget Commission, the Council of Administrative
Management, the U.P. Graduate School of Public Administration, the
Joint Technical Staff on the Administrative Code Revision Project, and
such other governmental units or agencies as it may designate or
set-up, or such reputable private consultant or management firms or
entities, as it may deem necessary.
Sec. 3. To accomplish the objectives set forth in
Section One of this Act, the Commission is further authorized:
a. To group, coordinate, consolidate or integrate
departments, bureaus, offices, agencies, instrumentalities and
functions of the government;
b. To abolish departments, offices, agencies or
functions which may not be necessary, or create those which are
necessary, for the efficient conduct of government functions, services
and activities;
c. To eliminate overlapping and duplication of
services, functions and activities of the government;
d. To transfer functions, appropriations, equipment,
properties, records and personnel form one department, bureau, office,
agency or instrumentality to another;
e. To create, classify, combine, split and abolish
positions;
f. To standardize salaries, materials and equipment;
g. To do whatever is necessary and desirable to
effect economy and promote efficiency in the government
service.
The Commission shall study and investigate the present status of all
government bureaus, departments, offices, agencies and
instrumentalities of the Executive Branch of the Government, including
government-owned or controlled corporations; Provided, however, That in
the reorganization to be effected by this Act, no office or agency or
function of government shall be made to continue beyond the period
authorized by law or beyond the time when it would have terminated if
the reorganization had not been made.
Sec. 4. The Commission shall submit an integrated
reorganization plan to the President not later than December 31, 1969,
and the President shall, within forty days after the opening of the
next regular session, submit the same to the Congress with or without
modification, together with a declaration that such reorganization is
necessary to accomplish the purposes of Section One hereof. No
reorganization plan shall become effective unless expressly approved by
Congress which must either accept or reject it in toto.
Upon approval of the reorganization plan or plans by Congress, the
President shall forthwith implement the same by issuing the necessary
executive order or orders subject to the limits of the Appropriation
Act for the fiscal year during which the implementation is
effected.
Sec. 5. Whenever it becomes necessary to reduce
the personnel of any office affected by the reorganization plan or
plans or modifications thereof, the provisions on reduction in force of
Rule VIII of the Civil Service Rules shall be applied: Provided,
however, That, other things being equal, the preference in retention
shall be given to a veteran-employee.
Officers and employers whose positions are abolished or who may be
separated from the service as a consequence of the reorganization
authorized under this Act shall not lose their civil service
eligibilities. Their names shall be submitted to the Commissioner of
Civil Service who shall enter them in a preferential re-employment list
under proper classifications as to qualifications, training, civil
service eligibility and other similar factors that would facilitate
their re-employment in appropriate vacancies in the government:
Provided, however, That the names of officers and employees whose
efficiency ratings are below "satisfactory" or its equivalent, shall
not be registered in the preferential re-employment list: Provided,
further, That those who may be separated or removed from the service by
reason of the reorganization shall be granted a gratuity at a rate
equivalent to one month's salary for every year of continuous
satisfactory service rendered or the equivalent nearest fractions
thereof favorable to them on the basis of the highest salary received:
Provided, still further, That if they are already entitled to any
gratuity or pension under any other existing retirement or gratuity
law, they shall have the option to select either such gratuity or
pension or the gratuity provided under this Reorganization Act: And
Provided, finally, That any of such officers and employees who may be
reinstated in the service before the expiration of the period for which
he has been paid gratuity shall refund the unearned portion of such
gratuity before he is reinstated in the service.
Sec. 6. Hereafter, vacancies in any department,
bureau, office or agency or instrumentality of the government,
including government-owned or controlled corporations, shall be filled
by certification of the Commissioner of Civil Service from the
preferential re-employment list ahead of the regular register of
eligibles, under such rules and regulations as the Commission on
Reorganization may promulgate: Provided, That no appointment which is
made in violation of this Section or of the rules and regulations
promulgated hereunder by the Commission on Reorganization shall be
approved by the Commissioner of Civil Service.
Sec. 7. To carry out the provisions of this Act,
the sum of one million pesos or so much thereof as may be necessary is
hereby appropriated out of any funds in the National Treasury not
otherwise appropriated.
Sec. 8. This Act shall take effect upon its
approval.
Approved: September 9,
1968.
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