Revised Administrative Code of 1987

July 25, 1987
EXECUTIVE ORDER NO. 292

INSTITUTING THE "ADMINISTRATIVE CODE OF 1987"
WHEREAS, the Administrative Code currently in force was rst forged in 1917 when the
relationship between the people and the government was de ned by the colonial order then
prevailing;
WHEREAS, efforts to achieve an integrative and overall recodi cation 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expressly repealed;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 uni ed document the major structural, functional and procedural
principles and rules of governance; and
WHEREAS, a new Administrative Code will be of optimum bene t to the people and
Government of cers 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 De ned . Unless the speci c 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, of ce, instrumentality, or government-owned
or controlled corporation, 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 de ned, 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
CD Technologies Asia, Inc. 2016
cdasiaonline.com
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 of ces. 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 with 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
interest 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 speci c
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 ftyone (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, "of cer" 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, uvial, 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.
cdasiaonline.com
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 upon reaching the age of majority;
(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 of cers or agents in the
exercise of their functions.
CHAPTER 4
National Symbols and Official Languages
SECTION 12. National Flag . (1) The ag 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.
cdasiaonline.com
(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 af xed to or
placed upon all commissions signed by the President and upon such other of cial documents
and papers of the Republic of the Philippines as may be provided by law, or 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 Of ces . The various of ces of
government may adopt appropriate coat-of-arms, seals and banners.
SECTION 17. Of cial 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 fteen (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 of cial languages, the English text
shall control, unless otherwise speci cally 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 is itself repealed, the law rst 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 Of cial 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 the said courts of suf cient 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 of cial documents in the Of cial Gazette
shall be prima facie evidence of its authority.
SECTION 25. Editing and Publications. The Official Gazette shall be edited in the Of ce
of the President and published weekly in Pilipino or in the English language. It shall be sold and
distributed by the National Printing Of ce which shall promptly mail copies thereof to
subscribers free of postage.
CHAPTER 7
Regular Holidays and Nationwide Special Days
cdasiaonline.com
SECTION 26. Regular Holidays and Nationwide Special Days. (1) Unless otherwise
modi ed 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
Maundy Thursday
Good Friday
Araw ng Kagitingan (Bataan and Corregidor Day)
Labor Day
Independence Day
National Heroes Day
Bonifacio Day
Christmas Day
Rizal Day
(B)
January 1
Movable date
Movable date
April 9
May 1
June 12
Last Sunday of August
November 30
December 25
December 30
Nationwide Special Days

All Saints Day
Last Day of the Year
November 1
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.
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.
CHAPTER 8
Legal Weights, Measures and Period

SECTION 29. Of cial 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 of cially attested, and for all
of cial documents. Only weights and measures of the metric system shall be of cially sealed
and licensed.
SECTION 30. Mandatory Nation-wide Use. The metric system shall be fully adopted in
all agricultural, commercial, industrial, scienti c 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 speci c calendar month in which case it shall be
computed according to the number of days the speci c 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 Of ce . Public of ce is a public trust. Public of cers and
employees must at all times be accountable to the people, serve them with the utmost
cdasiaonline.com
responsibility, integrity, loyalty and ef ciency, act with patriotism and justice, and lead modest
lives.
SECTION 33. Policy on Change of Citizenship . Public of cers and employees owe the
State and the Constitution allegiance at all times, and any public of cer 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 of cer or
employee shall, upon assumption of of ce 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 of cers 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 of cer 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 of cer 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 Of cers . (1) A public of cer shall not be civilly liable
for acts done in the performance of his of cial duties, unless there is a clear showing of bad
faith, malice or gross negligence.
(2) Any public of cer who, without just cause, neglects to perform a duty within a period
xed by law or regulation, or within a reasonable period if none is xed, 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 of cer 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 Of cers . No subordinate of cer 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 Of ce for Public Of cers and Employees . All public of cers 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 af rmation 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 of ce or position upon which he is about to enter; and that
he voluntarily assumes the obligation imposed by his oath of of ce, 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. Of cers Authorized to Administer Oath . (1) The following of cers 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 of cer in the service of the government of the Philippines
whose appointment is vested in the President.
(2) Oaths may also be administered by any of cer whose duties, as de ned by law or
cdasiaonline.com
regulation, require presentation to him of any statement under oath.

SECTION 42. Duty to Administer Oath. Of cers authorized to administer oaths, with the
exception of notaries public, municipal judges and clerks of court, are not obliged to administer
oaths or execute certi cates save in matters of of cial business; and with the exception of
notaries public, the of cer 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,
departments and agencies or instrumentalities of the Government shall prepare and submit
annual reports to the President on or before the first day of July of each year.
SECTION 44. Contents of Reports. The contents of the annual report shall be
prescribed by law or, in the absence thereof, by executive order.
SECTION 45. Special Reports. Each chief of Bureau or other of cer of the government
shall make such special reports concerning the work of his Bureau or Of ce 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. Of cial 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. Of cial 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 of cer 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 of cial 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.
cdasiaonline.com
(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. Government 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 of ce 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 of ce 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 nancially 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 of ce. 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.
cdasiaonline.com
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 quali cations 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 twothirds (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 ve years following the rati cation of the 1987 Constitution nor oftener than
once every ve 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
rati ed 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 rati ed by a majority of the votes cast in a plebiscite which
cdasiaonline.com
shall be held not earlier than sixty days (60) nor later than ninety days (90) after the certi cation
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 quali cations and term of of ce 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 Of ce of the President . In case of death, permanent disability,
removal from of ce, 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
of ce, 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 quali ed, and be subject to the same restrictions of
powers and disqualifications as the Acting President.
SECTION 14. Vacancy in Of ce of the Vice-President . Whenever there is a vacancy in
the Of ce 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 of ce upon con rmation by a majority vote of all the
Members of both Houses of Congress, voting separately.
SECTION 15. Inhibitions Against Executive Of cials . 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 of ce or employment during their tenure. They shall not, during
said tenure, directly or indirectly practice any other profession, participate in any business, or be
nancially 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 con icts of interest in
the conduct of their office.
The spouse and relatives by consanguinity or af nity within the fourth civil degree of the
President shall not during his tenure be appointed as Members of the Constitutional
Commissions, or the Of ce of the Ombudsman, or as Secretaries, Undersecretaries, chairmen
or heads of bureaus or of ces, 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'a 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 jurisdictions 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.
cdasiaonline.com
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 af rm 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 simpli ed 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 of cials and employees of the Judiciary in accordance with the Civil
Service Law.
SECTION 19. Apportionment of Jurisdiction. Congress shall de ne, 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 of cio
Chairman, the Secretary of Justice, and a representative of the Congress as ex of cio 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.
cdasiaonline.com
(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 on Appointments. Of the Members rst
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 of cio 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 of ce 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 of ce, nor shall he be
nancially 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 scal
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 of ces. 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 ling 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
cdasiaonline.com
Of ce 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.
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
aspects of governmental operations in pursuance of his duties as administrative head shall be
promulgated in administrative orders.
SECTION 4. Proclamations. Acts of the President xing a date or declaring a status or
condition of public moment or interest, upon the existence of which the operation of a speci c
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 of ces 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 nal 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
cdasiaonline.com
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 speci c 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 speci c
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 speci c
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 of cials or
employees, from them or from their nominees or transferees.
Within the period xed 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 of cer already in the government service or any other competent
person to perform the functions of an of ce in the executive branch, appointment to which is
vested in him by law, when: (a) the of cer regularly appointed to the of ce 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 lled. 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
cdasiaonline.com
under the laws and which are not speci cally 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 Of ce of the President shall consist of the Of ce of the
President Proper and the agencies under it.
SECTION 22. Of ce of the President Proper . (1) The Of ce of the President Proper
shall consist of the Private Of ce, the Executive Of ce, the Common Staff Support System, and
the Presidential Special Assistants/Advisers System;
(2) The Executive Of ce refers to the Of ces of the Executive Secretary, Deputy Executive
Secretaries and Assistant Executive Secretaries;
(3) The Common Staff Support System embraces the of ces or units under the general
categories of development and management, general government administration and internal
administration; and
(4) The Presidential Special Assistants/Advisers System includes such special
assistants or advisers as may be needed by the President.
SECTION 23. The Agencies under the Of ce of the President . The agencies under the
Of ce of the President refer to those of ces placed under the chairmanship of the President,
those under the supervision and control of the President, those under the administrative
supervision of the Of ce 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 special
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 Of ce . The Private Of ce 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 Of ce shall be fully responsive to the
speci c 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 Of ce 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 Of ce 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;
cdasiaonline.com
(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 Of ce 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 of cials and employees of the Of ce 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 Of ce of the
President;
(9) Have administrative responsibility for matters in the Of ce 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 of ces
and agencies not placed by law under any specific executive department;
(12) Provide consultative, research, fact- nding 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;
(18) 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 Of ce 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 deliberations, 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 Of ce 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;
cdasiaonline.com
(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 of cials and employees brought to
the attention of the Of ce 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 System. 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 Of ce of the President . Agencies under
the Of ce 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 Of ce . The
President, subject to the policy in the Executive Of ce and in order to achieve simplicity,
economy and ef ciency, shall have continuing authority to reorganize the administrative
structure of the Of ce of the President. For this purpose, he may take any of the following
actions:
(1) Restructure the internal organization of the Of ce of the President Proper,
including the immediate Of ces, 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 Of ce of the President to any other Department
or Agency as well as transfer functions to the Of ce of the President from
other Departments and Agencies; and
(3) Transfer any agency under the Of ce of the President to any other department or
agency as well as transfer agencies to the Of ce 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 of ces shall be grouped primarily on the basis of major functions to
achieve simplicity, economy and ef ciency 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
cdasiaonline.com
red tape, free central of cials from administrative details concerning eld operations, and
relieve them from unnecessary involvement in routine and local matters. Adequate authority
shall be delegated to subordinate of cials. 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 Of ce of the Secretary and the staff units directly under
it. The Of ce of the Secretary shall 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, Of ces, Regulatory Agencies and Government
Corporations. Each Department shall have jurisdiction over bureaus, of ces, regulatory
agencies, and government-owned or controlled corporations assigned to it by law, in
accordance with the applicable relationship as defined in Chapters 7, 8, and 9 of this Book.
SECTION 5. Assignment of Of ces and Agencies . The President shall, by executive order, assign
of ces 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 government;
(3) Promulgate rules and regulations necessary to carry out department objectives,
policies, functions, plans, programs and projects;
(4) Promulgate administrative issuances necessary for the ef cient administration
of the of ces 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 of cers 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 of cers 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
cdasiaonline.com
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, of ces, 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 of cers 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 scal 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
of ce, 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, ef cient 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 datagathering is essential to the operations of the department, a statistical unit may be constituted
cdasiaonline.com
as part of a technical service.

SECTION 14. Financial and Management Services. The Financial and Management
Services shall advise and assist the Secretary on budgetary, nancial 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, ef cient 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 of cers, or employees or act as their principal counsel in all actions taken
in their of cial capacity before judicial or administrative bodies; and perform such other
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 Of ce of the Secretary on matters pertaining to the
Bureau's area of specialization;
(b) Provide consultative and advisory services to the regional of ces 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, nancial and administrative services
in the department proper. The bureau may have a separate administrative division, if
circumstances so warrant.
cdasiaonline.com
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 divisions 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.
(3) 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 Of ces . Regional Of ces shall be established according to law
de ning eld service areas. The administrative regions shall be composed of a National Capital
Region and Regions I to XII. Provincial and district of ces 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 Of ce . The regional of ce 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 Of ces . (1) Whenever the function or activity of a
department or agency requires central or interregional action, the function may be performed
by the regional of ces 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 of ces.
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 Of ces . Regional of ces 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 of ces 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 of ces of other departments, bureaus and agencies in
the area;
cdasiaonline.com
(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 rst 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 of ce,
administer the budget of the regional of ce, 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 of ce involving an amount not exceeding fty
thousand pesos (P50,000.00) within a given quarter, provided that authority in
excess of fty 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 of ces, 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 of ce 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
cdasiaonline.com
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 of ce shall be its
chief executive of cer. He shall exercise overall authority in matters within the jurisdiction of the
bureau, of ce 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 of ce shall
appoint personnel to all positions in his bureau or of ce, in accordance with law. In the case of
the line bureau or of ce, the head shall also appoint the second level personnel of the regional
of ces, 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 of ce shall perform such duties as may be required by
law or regulations, or as may be speci ed by their superiors not otherwise inconsistent with
law;
(2) The head of bureau or of ce 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 of cer 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 Of ce . In case of the absence or disability of
the head of a bureau or of ce, 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 of cer or employee of the bureau or of ce as
acting head without additional compensation.
SECTION 33. Performance of Duties of Subordinate Of cers Temporarily Absent . In
case of the temporary absence or disability of any subordinate of cer or employee in any
bureau or of ce, its head may, subject to existing laws, rules and regulations, designate any
other subordinate of cer 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 of cer or subordinate may be temporarily lled in the same manner as in the case of
temporary absence or disability. The vacancies shall not be lled 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 of ce shall,
consistent with law, rules and regulations, prescribe the form and x the amount of all bonds
executed by private parties to the government under the laws pertaining to his bureau or of ce.
He shall pass on the sufficiency of the security and retain possession of the bond.
(2) When it appears that any such bond is insuf cient, 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 xed 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 of ce shall prescribe forms and issue circulars or orders to secure the harmonious
and ef cient administration of his bureau or of ce 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
cdasiaonline.com
violation, except as expressly allowed by law;

(2) Heads of bureaus or of ces are authorized to issue orders regarding the
administration of their internal affairs for the guidance of or compliance by their of cers and
employees;
(3) Regional directors are authorized to issue circulars of purely informational 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 of ces 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
nancial 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 speci cally required by law or regulation to be incorporated
therein.
CHAPTER 7
Administrative Relationships
SECTION 38. De nition of Administrative Relationships . Unless otherwise expressly
stated in the Code or in other laws de ning 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, ef ciently 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 of cial functions, including recti cation 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 when 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
cdasiaonline.com
(c) Unless a different meaning is explicitly provided in the speci c law governing the relationship of
particular agencies, the word "supervision" shall encompass administrative supervision as de ned
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 re ect 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 nancial statements within sixty (60) days after the close of the
fiscal year; and
(d) Pending submission of the required nancial statements, the corporation shall continue to
operate on the basis of the preceding year's budget until the nancial statements shall have been
submitted. Should any government-owned or controlled corporation incur an operating de cit at
the close of its scal 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, ef cient 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 of cer or class of of cers or
cdasiaonline.com
employees the delegation is made; and shall vest suf cient 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 eld of ces. 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 eld of ces 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 of ce, and shall hold of ce, unless sooner removed, until the expiration
of his term of office, or until their successors shall have been appointed and qualified.
SECTION 45. Quali cations of Secretaries . The Secretaries shall be citizens of the
Philippines and not less than twenty-five years of age.
SECTION 46. Appointment of Undersecretaries and Assistant Secretaries. The
Undersecretaries and Assistant Secretaries of Department 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. Disquali cation of the Spouse and Relatives of the President . The spouse
and relatives by consanguinity or af nity within the fourth civil degree of the President shall not
during his tenure be appointed as Secretaries, Undersecretaries, Chairmen or heads of bureaus
cdasiaonline.com
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 of cial of the Executive Department may, in addition to
his primary position, hold not more than two positions in the government and governmentowned 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 of cial 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 of cial 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 Classi cation 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 of ces, of cials, or
employees, concerning speci c 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 identi ed as such and chronologically numbered.
Each class of issuance shall begin with number 1 for each calendar year.
SECTION 52. Of cial Logbook . Each department, bureau, of ce or agency shall keep
and preserve a logbook in which shall be recorded in chronological order, all nal of cial acts,
decisions, transactions or contracts, pertaining to the department, bureau, of ce or agency.
Whenever the performance of an of cial 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 Classi cation of Issuances . (1) The
Records Management and Archives Of ce in the General Services Administration shall provide
such assistance as may be necessary to effect general adherence to the foregoing
classi cation of issuances, including the conduct of studies for developing sub-classi cations
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, of ce 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 xed at cost or
at such other reasonable rate in excess of cost by the boards or councils concerned;
(2) The of cer authorized to x the amount to be paid for service rendered and supplies
cdasiaonline.com
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, of ces, 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, of ce, 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 xed 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 fty million pesos (P50,000,000) awarded through public bidding,
and ve 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
a.
b.
c.
d.
Secretary of Public Works

and Highways
Awarded through
Negotiation
P100 Mil.
P10 Mil.
Secretary of Transportation
and Communications
100 Mil.
10 Mil.
Secretary of Local Government

with respect to the Rural
Road Improvement Project
100 Mil.
2 Mil.
Government Boards of
Infrastructure 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
cdasiaonline.com
e.
Authority and Philippine National

Oil Company)
50 Mil.
5 Mil.
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 Of ce 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 prequali ed
contractors in accordance with laws, rules and regulations not inconsistent with the provisions
of this Chapter. The award of such contracts through negotiation 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
cdasiaonline.com
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 of ce, 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 Prequali cation, Bids, and Awards Committee . Each
department, of ce or agency shall have in its head of ce or in its implementing of ces a
Prequali cation, Bids and Awards Committee which shall be responsible for the conduct of
prequali cation of contractors, biddings, evaluation of bids and recommending awards of
contracts. Each Prequali cation, Bids and Awards Committee shall be composed of the
following:
a. A Chairman (regular) who should at least be a third ranking of cial of the
department/agency/implementing Office;
b. An Executive Of cer and Secretary (regular) who is a Legal Of cer 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 Prequali cation, Bids and Awards Committee of the abovementioned private organizations shall be made as follows:
1. During the prequali cation 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 Certi ed 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 Prequali cation, 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 of ce having control of the appropriation against which the contract would create a charge.
cdasiaonline.com
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, of ces, 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 AttorneyGeneral of the National Government and as ex of cio 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, of ces 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 nal 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;
cdasiaonline.com
(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 of cial
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 of cials 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
SECTION 4. Organizational Structure. The Department shall have the following units:
(1) The Department Proper which shall be composed of the Of ce of the Secretary,
the Of ces of the Undersecretaries, the Of ces 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. Of ces 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;
cdasiaonline.com
(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 Scienti c and Cultural Organization (UNESCO) National
Commission of the Philippines shall, in coordination with the Of ce 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 Of ces . (1) Geographical Of ces . The following of ces 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 geographic coverage:
(a) Of ce of Asian and Paci c Affairs: Japan and Northeast Asia, China, Central Asia,
Southeast Asia, South Asia and Pacific countries;
(b) Of ce of Middle East and African Affairs: the Gulf States, Middle East and North
Africa, West Africa, and East Africa;
(c) Of ce of American Affairs: United States of America, Canada, Mexico, the Central
American and Caribbean countries, and South America;
(d) Of ce of European Affairs: Union of Soviet Socialist Republics, Western Europe,
Eastern Europe and Central Europe.
(2) Of ce of ASEAN Affairs . The Of ce 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
cdasiaonline.com
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) Of ce of International Economic Affairs and Development . The Of ce of
International Economic Affairs and Development shall be responsible for conducting programs
and activities of the Department in the elds of international trade, nance and economics;
coordinate with the regional of ces and the Of ce 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) Of ce of Cultural Affairs and Public Information Services . The Of ce of Cultural
Affairs and Public Information Services shall be responsible for promoting the cultural and
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) Of ce of Personnel and Administrative Services . The Of ce of Personnel and
Administrative Services shall be responsible for the ef cient management of human resources
and administrative support services, and shall make appropriate recommendations, including
those concerning job classi cation, salary administration, bene ts, retirement, and awards to
deserving members of the Foreign Service.
(7) Of ce of Financial Management Services . The Of ce of Financial Management
Services shall be responsible for budgetary, nancial and accounting services in the
Department and the Foreign Service.
(8) Of ce of Consular Services . The Of ce of Consular Services shall be responsible
for the ef cient 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. Of ce of the Legal Adviser . The Of ce 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. Of ce of Coordination and Policy Planning . The Of ce of Coordination
and Policy Planning shall be headed by the Chief Coordinator. The Of ce of Coordination and
Policy Planning shall initiate, coordinate and integrate the planning of foreign policy. It shall
provide staff support to the Of ce of the Secretary and perform coordinating and such other
functions as may be prescribed by the Secretary.
SECTION 12. Of ce of Data Banking and Communication . The Of ce of Data Banking
and Communication shall establish and maintain a modern data and communication center in
the Department. The Office shall:
cdasiaonline.com
(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 ef cient
ow 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, of ce, 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. Of ce of Protocol, State and Of cial Visits . The Of ce of Protocol, State
and Of cial 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 of cial
visits of Philippine of cials 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. Of ce of Intelligence and Security . The Of ce 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 ef cient and economical discharge of the administrative
operations of the Department and the Foreign Service. It shall also consider and submit
recommendations on policy and other matters concerning personnel, including the
appointment, promotion and assignment of Foreign Service Staff Of cers and Employees, as
well as recommend to the President through the Secretary the appointment and promotion of
Foreign Service Of cers, 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 Of cers Examinations and the Foreign Service Staff Of cers and Foreign
Service Staff Employees Examinations.
CHAPTER 6
cdasiaonline.com
Attached Agencies
SECTION 19. Attached Agencies. The Law of the Sea Secretariat, the Inter-Agency
Technical Committee on Economic, Scienti c 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.
shall:
SECTION 21. Functions of Consular Establishments. The consular establishments

(1) Protect national interests abroad and promote foreign relations in all elds,
particularly in the economic and trade areas;
(2) Ascertain and evaluate conditions and developments abroad in the commercial,
economic, cultural and scienti c elds 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
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 of ce of the Philippine government as attaches or representatives
shall have the prior clearance of the Secretary of Foreign Affairs. The clearance shall include
cdasiaonline.com
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 of cer 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 to 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 Of cer at the
Consulate and the Representative. The relationship of the Consul-General or the Principal
Of cer 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 InterDepartment Committee to be composed of the Undersecretary of Foreign Affairs as Chairman,
and the Undersecretaries, or equivalent of cials, 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.
cdasiaonline.com
SECTION 30. Categories of Of cers 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 Of cers . There shall be a career service composed of
foreign service of cers. The Service shall consist of six classes of Foreign Service Of cers
including Chiefs of Missions and Counsellors.
(1) A Chief of Mission may be assigned as Ambassador Extraordinary and
Plenipotentiary, Head of an Of ce in the Department, or Deputy Chief of
Mission.
(2) A Counsellor may be assigned as Executive Of cer of an Of ce in the
Department, Counsellor in an Embassy, or Head of a Consular Post.
(3) The assignments of the other classes of Foreign Service Of cers shall be as
follows:
Home Office
Diplomatic
Service
Consular
Service
Class I-Chief of
Division
First Secretary
Consul
Class II-Chief of
Division
Secondary Secretary
Consul
Class III-Chief of
Division
Third Secretary
Consul
Third Secretary
Vice-Consul
Class IV-Asst.
Chief of Division
(4) In the home of ce, 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 Of cer in any class may be designated as a special assistant
to the Secretary or to an Undersecretary. A Foreign Service Of cer below the
rank of Class I may be designated as Principal Assistant to a Head of Office.
SECTION 32. Foreign Service Staff Of cers . There shall be three classes of Foreign
Service Staff Officers to provide the administrative and technical services.
cdasiaonline.com
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 Of cers . (1) Foreign Service Of cers shall be appointed
by the President.
(2) No person shall be eligible for appointment as Foreign Service Of cer 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 Of cers. The
initial appointment of Foreign Service Of cers shall only be to Foreign Service Of cer Class IV
minimum.
SECTION 36. Staff Of cers and Employees . The Secretary shall appoint, in accordance
with the Civil Service Law, all Foreign Service Of cers 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 Bene ts . The salaries, allowances, travel expenses,
insurance and other bene ts of Foreign Service Of cers, 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 Of cer Class I and rendered continuous service as Foreign Service Of cer for at
least ten years;
(3) For promotion to Foreign Service Of cer Class I, the candidate must have served as a
Foreign Service Of cer Class II, and rendered continuous service as Foreign Service Of cer for
at least eight years;
(4) For promotion to Foreign Service Officer Class II, the candidate must have served as a
Foreign Service Of cer Class III, and rendered continuous service as Foreign Service Of cer for
at least six years;
(5) For promotion to Foreign Service Of cer 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 Of cers . (1) Promotions of Foreign Service
Of cers 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 Of cers, Foreign Service Staff
cdasiaonline.com
Employees and Alien Employees. Promotions of foreign service staff of cers 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 quali ed of cers and employees, except the employees in the noncareer 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 of ce shall be considered a post. All personnel shall be
available for assignment to any post.
SECTION 44. Initial Home Of ce Requirement . No Foreign Service Of cer, Staff Of cer
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 Of cer 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 Of cer 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 Of cer, Staff Of cer or Employee shall serve more than two (2)
consecutive tours of duty abroad;
(4) No Foreign Service Of cer 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 Of cer, Staff Of cer or Employee
who has reached the age of sixty- ve (65) shall be compulsorily retired from the service 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 Of cers reinstated to the service after retirement and who are
assigned abroad as ambassadors or chiefs of mission, and persons who are appointed as
ambassadors without previously serving as Career Foreign Service Of cers 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 of cial 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
cdasiaonline.com
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 re ect 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 of cials proceeding abroad in the discharge of their of cial 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 of cer 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 of cer 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 Of cers . In all appropriation acts providing funds
for the operation and maintenance of the Department, the positions of Foreign Service Of cers,
including those who may serve in the home of ce, 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 of ce the discretion to assign or commission those of cers 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 ef cient management of the nancial
resources of the Government, its subdivisions, agencies and instrumentalities.
SECTION 2. Mandate. The Department shall be responsible for the formulation,
institutionalization and administration of scal 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 nancial resources of 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.
cdasiaonline.com
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
resource mobilization effort, in coordination with other concerned
government agencies, and involving all public sector resources whether
generated by revenues and operations, foreign and domestic borrowings, sale
or privatization of corporation 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 nancial
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 scal and
monetary policies, credit, economic development, international nance, 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 Of ce of the Secretary, the Of ces of the Undersecretary and Assistant
Secretaries, the Economic Intelligence and Investigation Bureau, the Services, the Operations
Groups and their constituent units, and the Regional Offices.
CHAPTER 2
Department Proper
SECTION 5. Of ce of the Secretary . The Of ce of the Secretary shall consist of the
Secretary, his Undersecretaries and their immediate staffs.
SECTION 6. Undersecretaries. The Secretary shall be assisted by ve (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 ve (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
cdasiaonline.com
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 Of ce . 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 scal 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 Of ce . 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 Of ce . The Central Administration Of ce 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
cdasiaonline.com
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 Of ce . 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 Of ce . The Public Information and
Assistance Office shall have the following functions:
(1) Provide policy direction and guidance to the operating Bureaus and Of ces of
the Department for the proper dissemination of appropriate information or
Department- wide programs, operations and activities;
(2) Provide the operating Bureaus and Of ces 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
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 Of ces
of the Department;
(2) Conduct legal researches on all matters referred to it by the Secretary or his
Undersecretaries; and
or his Undersecretaries.
SECTION 15. Regional Coordination Of ce . The function of the Regional Coordination
Office is to coordinate the operations of the Regional Offices.
CHAPTER 4
Bureaus
SECTION 16. Operations Groups. The Operations Groups, each of which shall be
headed by an Undersecretary, shall consist of the following:
(1) Revenue Operations Group, composed of the following:
cdasiaonline.com
(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 nancial
and economic activities of persons or entities, which may adversely affect
national nancial interest with the goal of regulating, controlling or preventing
said activities;
(3) Provide all intelligence units of operating Bureaus or Of ces 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 le, upon clearance by the Secretary, anti-graft and
corruption cases against personnel of the Department and its constituent
units; and
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;
cdasiaonline.com
(3) Prevent and prosecute tax evasions and all other illegal economic activities;
(4) Exercise supervision and control over its constituent and subordinate units; and
The Commissioner of Internal Revenue, with the approval of the Secretary of Finance,
shall draft and prepare the necessary rules and regulations 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 the 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;
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
cdasiaonline.com
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. De nition 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
(a) Regularly and consistently gather intelligence information related to customs and
economic activities for proper dissemination to the Customs of ces
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
cdasiaonline.com
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 by 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
(a) Collect duties, taxes, fees, charges, penalties and nes 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 nes 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 speci c 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 nancial 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 nancial 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 Of ces/ eld units within Department
Regional Administrative Coordination Offices; and
or Undersecretary for Domestic Operations.
SECTION 30. Composition. The Bureau of Treasury shall be composed of the
cdasiaonline.com
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 Of ces which shall have under their supervision all provincial
of ces 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 nancial 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.
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;
cdasiaonline.com
(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 Of ces/ eld units within the
Department Regional Administrative Coordination Of ce and the Local
Treasury and Assessment Services; and
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 nancial 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 Of ce, 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 nancial and scal plans of the national Government
and the local governments, consistent with the national development plan;
(2) Monitor and review the implementation of such nancial and
relation to recent developments in the economy;
(3) Coordinate with other government agencies involved in
economic planning and policy formulation;
scal plans in
nancial,
scal and
(4) Undertake special studies and research projects on financial and fiscal policies;
(5) Coordinate the formulation and assessment of Department policies affecting
domestic nance operations with the different bureaus and of ces 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.
cdasiaonline.com
SECTION 37. International Finance Policy Of ce . The International Finance Policy

Of ce, 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, nancial 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 scal, monetary, nancial, foreign trade
and exchange rate policies as well as budgetary and balance of payments
programming in line with domestic economic goals and the external nancial
and trade environment;
(3) Formulate and monitor a foreign nancing 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
or Undersecretary for International Finance.
SECTION 38. International Finance Operations Of ce . 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 provisions of government guarantees and monitor compliance with
these policies;
(2) Provide support work for international nancial 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 of cers (the term "of cer" as used in this Executive Order
is intended to be within the meaning of the term "of cial" as used in the
Freedom Constitution) with foreign dignitaries or organizations; and
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 Of ces . There shall be a Regional Of ce 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
cdasiaonline.com
the Department;
(2) Provide efficient and effective services to the people;
(3) Coordinate with regional of ces of other departments, of ces and agencies in
the region;
(4) Coordinate with local government units; and
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 Of ce (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 Of ces 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 Of ce 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
cdasiaonline.com
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
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) Bureau of Immigration; and
(10) 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;
cdasiaonline.com
(2) Oversee the operational activities of the Department;

(3) Coordinate the programs and projects of the Department for ef cient 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 ef ciency 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 nally 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. Of ce of the Chief State Prosecutor . The Of ce 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
Secretary.
SECTION 9. Provincial/City Prosecution Of ces . The Provincial and City Fiscal's Of ce
established in each of the provinces and cities pursuant to law, is retained and renamed
Provincial/City Prosecution Of ce. 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 xed 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 of ces 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.
CHAPTER 3
Office of the Government Corporate Counsel

cdasiaonline.com
SECTION 10. Of ce of the Government Corporate Counsel . The Of ce of the

Government Corporate Counsel (OGCC) shall act as the principal law of ce of all governmentowned or controlled corporations, their subsidiaries, other corporate offsprings 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 bene ts, 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 of ces and
rehabilitation centers, 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 Of cials . The NBI shall be headed by a
Director assisted by an Assistant Director and ve (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
Of ce 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 Of ce (PAO) . The Citizen's Legal Assistance Of ce
(CLAO) is renamed Public Attorney's Of ce (PAO). It shall exercise the powers and functions as
are now provided by law for the Citizen's Legal Assistance Of ce 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 Of ce, 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 Of cials . The PAO shall be
headed by a Chief Public Attorney and shall be assisted by two (2) Deputy Chief Public
cdasiaonline.com
Attorneys. Each PAO Regional Of ce 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
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-of cio 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 of ce 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 quali cations 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:
cdasiaonline.com
(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 function 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 Of ce 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 Of ce 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 Of ces of the Administration shall each be headed by a Regional
Probation and Parole Of cer, Provincial/City Probation and Parole Of cer, respectively, all of
whom shall be appointed by the Secretary upon the recommendation of the Administrator.
The Provincial or City Probation and Parole Of cers shall be assisted by such eld 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 quali cations
for appointment of the Administrator, Deputy Administrators, Regional, Provincial and City
Probation Of cers 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.
cdasiaonline.com
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 Of ces 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 Pias and
Paraaque 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.
cdasiaonline.com
Likewise, the appointment of all the other personnel of the Bureau including the
designation of Acting Immigration Of cers 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 quali cations
for appointment and receive a salary, retirement bene ts, 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 a regional and provincial of ces 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 Of ce of the Solicitor General shall be an
independent and autonomous office attached to the Department of Justice.
The Of ce of the Solicitor General shall be headed by the Solicitor General, who is the
principal law of cer and legal defender of the Government. He shall have the authority and
responsibility for the exercise of the Of ce'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 fteen (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 Of ce of the Solicitor General shall represent
the Government of the Philippines, its agencies and instrumentalities and its of cials and
agents in any litigation, proceeding, investigation or matter requiring the services of a lawyer.
When authorized by the President or head of the of ce concerned, it shall also represent
government-owned or controlled corporations. The Of ce of the Solicitor General shall
constitute the law of ce of the Government and, as such, shall discharge duties requiring the
services of a lawyer. 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 of cers 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 of cer
thereof in his official capacity is a party.
cdasiaonline.com
(2) Investigate, initiate court action, or in any manner proceed against any person,
corporation or rm 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 of cer 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 of cial 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 scal 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 scal. When so deputized, the scal shall be
under the control and supervision of the Solicitor General with regard to the
conduct of the proceedings assigned to the scal, and he may be required to
render reports or furnish information regarding the assignment.
(8) Deputize legal of cers of government departments, bureaus, agencies and
of ces to assist the Solicitor General and appear or represent the
Government in cases involving their respective of ces, brought before the
courts, and exercise supervision and control over such legal Of cers with
respect to such cases.
(9) Call on any department, bureau, of ce, agency or instrumentality of the
Government for such service, assistance and cooperation as may be
necessary in ful lling its functions and responsibilities and for this purpose
enlist the services of any government of cial or employee in the pursuit of his
tasks.
Departments, bureaus, agencies, of ces, instrumentalities and
corporations to whom the Of ce of the Solicitor General renders legal
services are authorized to disburse funds from their sundry operating and
other funds for the latter Of ce. For this purpose, the Solicitor General and his
staff are speci cally authorized to receive allowances as may be provided by
the Government of ces, 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,
cdasiaonline.com
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
SECTION 36. Appointments. The Solicitor General shall be appointed by the President
and shall have the same quali cation 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, shermen, 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, sheries,
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 ful llment of this mandate, it shall be the primary concern of the Department to
improve farm income and generate work opportunities for farmers, shermen, 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,
cdasiaonline.com
marketing, and financing data requirements of the farmers as well as

domestic and foreign investors in agri-business 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;
Proper, the Bureaus, and the Regional, Provincial, Municipal, and Barangay Offices.
The Department Proper shall consist of the Of ce of the Secretary, the Of ces 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
Secretary and his immediate staff as determined by him.
SECTION 6. Assistants to the Secretary. The Secretary shall be assisted by ve (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
cdasiaonline.com
planning support services, particularly in policy-formulation, planning, and agribusiness;

(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
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
(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);
cdasiaonline.com
(4) 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 Bureaus, Regional Of ces 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. Agri-business Investment Information Service. The Agri-business
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 agri-business 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
cdasiaonline.com
Bureaus and Offices

SECTION 18. Bureau of Animal Industry. 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
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
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
cdasiaonline.com
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
same.
shall:
SECTION 22. Bureau of Agricultural Research. The Bureau of Agricultural Research

(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.
shall:
SECTION 24. Bureau of Agricultural Statistics. The Bureau of Agricultural Statistics

(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;
cdasiaonline.com
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 Of ce in each of the administrative regions of the country.
Each Regional Of ce 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 Of ce 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;
(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 Of cer 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 justi able purposes and
upon written permission from the Regional Director concerned or other of cials 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 Of cer or other of cials of the Department who may be
authorized by the Secretary of Agriculture shall cause the inspection and certi cation 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 of cials of the Department who may be
authorized by the Secretary of Agriculture shall cause the appropriate inspection of the
cdasiaonline.com
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 Of cer or other of cials
of the Department who may be authorized by the Secretary of Agriculture shall cause the
inspection, treatment and certi cation of plants and plant products involved in movement from
one locality to another within the country.
SECTION 33. Appointment of Plant Quarantine Of cers . The Secretary shall, upon
recommendation of the Regional Director concerned and in consultation with the Director of
Plant Industry, appoint Plant Quarantine Of cers to act as his representatives in implementing
and enforcing the provisions of this Chapter.
SECTION 34. Powers and Duties of Plant Quarantine Of cers . 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 postentry requirements shall be paid by the importer or exporter as the case may be.
(2) The Regional Director and the authorized of cials 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 of cials 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 Of cer at the post. Prior to departure, the
agent or master of said carrier must secure a clearance from the Plant Quarantine Of cer
thereat.
cdasiaonline.com
(2) The Collector of Customs or his authorized agents shall require the owner, agent or
master of carrier to submit a copy of the certi cate of plant quarantine clearance as a prerequisite 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, certi cation, 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 certi ed 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 Of cers, fumigators
and helpers performed outside of ce 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 of cials
of the Department who may be authorized by the Secretary of Agriculture, after proper hearing,
are hereby empowered to impose administrative nes for the violation of and non-compliance
with quarantine orders, rules and regulations promulgated in accordance with this Chapter.
(2) The decision of the Regional Director concerned and those of the other authorized
of cials 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 meetings shall not be held more
than four times annually.
SECTION 46. Quorum. A majority of the members of the Board shall constitute a
cdasiaonline.com
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 sheries 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.
cdasiaonline.com
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
ef ciency and the most appropriate quality in construction. The planning, design, construction
and maintenance of infrastructure facilities, especially national highways, ood control and
water resources development system, 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 roads and highways into national, regional, provincial, city, municipal, and
barangay roads and highways, based on objective criteria it shall adopt;
cdasiaonline.com
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
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. Of ce of the Secretary . The Of ce 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 ve (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
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
cdasiaonline.com
Department Services
SECTION 8. Internal Audit Service. The Internal Audit Service shall conduct
comprehensive audit of various Department activities. Speci cally, 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 cost) 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
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:
cdasiaonline.com
(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 exercise 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
SECTION 11. Comptrollership and Financial Management Service. The Comptrollership
and Financial Management Service shall provide the Department with coordinated services
relating to nancial systems and procedures, budget, cash, accounting, and all nancial
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
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
cdasiaonline.com
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
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
CHAPTER 4
The Bureau
cdasiaonline.com
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 ef ciency 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;
cdasiaonline.com
(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
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
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;
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
cdasiaonline.com
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
CHAPTER 5
Regional Offices
SECTION 20. Regional Of ces . Regional Of ces shall be responsible for highways,
ood control and water resource development systems, and other public works within the
region, except those de ned 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
The Department shall retain and have such Project Management Of ces
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 Of ce shall be headed by a Regional
Director who shall be responsible for ef ciently and effectively carrying out the duties and
responsibilities of the Regional Of ce. Towards this end, and in line with the policy of
decentralization, he shall, within his de ned powers, exercise functional and administrative
supervision over District Of ces within the region including the authority to commit their
cdasiaonline.com
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 Of ce . There shall be a District Of ce 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, ood control and water resource development systems,
and other public works within the district, except those de ned 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
SECTION 23. District Engineer. The District Engineer of or within a province or city shall
be accountable for the ef cient and effective conduct of the duties and responsibilities of the
District Of ce of which he is the head. Within his de ned powers, he shall exercise functional
and administrative supervision over district operations including the authority to recommend
that eld 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 pro t 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
cdasiaonline.com
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 selflearning, 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
SECTION 4. Organizational Structure. The Department, aside from the Department
Proper, shall consist of Bureau and Regional Offices.
cdasiaonline.com
CHAPTER 2
Department Proper
the Secretary and his immediate staff.
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, equipment, collection, disbursement, security
and custodial work;
(4) The Human Resources Development Service shall:
(a) Develop and administer a personal 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
cdasiaonline.com
distinguished themselves in the eld 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 postsecondary 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
(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
SECTION 13. Bureau of Secondary Education. The Bureau of Secondary Education shall
(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
cdasiaonline.com
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
(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. Bureau of Non-Formal Education. The Bureau of Non-Formal Education
(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
or 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
CHAPTER 7
Regional Offices
cdasiaonline.com
SECTION 18. Organization. The Department is hereby authorized to establish, operate

and maintain a Regional Of ce in each of the administrative regions of the country. Each
Regional Of ce 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 Of ce shall have, within its administrative region,
(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;
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.
cdasiaonline.com
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
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 xed by the Secretary, but it shall not be earlier than the rst
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 xed 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
once every ve (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 xed 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 ag ceremony shall be conducted under the rules and regulations issued by the
Secretary.
3) Failure or refusal to observe the ag 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 ag 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 ag ceremony
cdasiaonline.com
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
cdasiaonline.com
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
SECTION 4. Organizational Structure. The Department shall consist of the Of ce of the
Secretary, and Undersecretaries and Assistant Secretaries, the Services and Staff Bureaus, and
the Regional Offices.
CHAPTER 2
Department Proper
Secretary and his immediate staff.
SECTION 6. Joint RP-US Labor Committee Staff . There is hereby created in the Of ce
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 RPUS 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
ef cient, effective and economical services relating to planning, programming, project
development and evaluation, and the development and implementation of a management
information system.
Department with ef cient, effective and economical services relating to records, management,
supplies, equipment, collections, disbursements, building administration and maintenance,
security and custodial work.
cdasiaonline.com
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 ef cient, effective and economical
services relating to budgetary, nancial, management improvement and internal control
matters.
SECTION 13. Legal Service. The Legal Service shall provide legal advice and service to
Department of cers and employees; prepare informative or clari catory opinions on labor laws,
rules and regulations for uniform interpretation thereof; answer legal queries from the public;
assist the Of ce of the Solicitor General in suits involving the Department or its of cers or
employees or act as their principal counsel in all actions taken in their of cial 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 Paci c Labor Ministries, the Association of
Southeast Asian Nations Labor Ministers 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 of cers
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 nancial records of accounts of labor organizations to determine compliance
with relevant laws.
The Bureau shall also provide proper orientation to workers on their rights and privileges
under existing laws and regulations, and develop 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;
cdasiaonline.com
(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) Provide legal and technical assistance on matters relating to working women
and minors;
(6) Act as the government's clearinghouse of all information relating to working
women and minors;
(7) 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;
(8) 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.
(9) 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
cdasiaonline.com
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
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
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
cdasiaonline.com

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
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 of ce 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 ConciliatorsMediators 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;
cdasiaonline.com
(4) Formulate policies, plans, programs, standards, procedures, manuals of

operation and guidelines pertaining to the promotion of cooperative and nonadversarial 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
Secretary.
The Tripartite Voluntary Arbitration Advisory Council, which is attached to the National
Conciliation and Mediation Board, shall advise the National 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 Of ces, District Of ces and Provincial Extension Units . The
Department is hereby authorized to establish, operate and maintain such Department-wide
Regional Of ces, District Of ces and Provincial Extension Units in each of the administrative
regions of the country, insofar as necessary to promote economy and ef ciency in the delivery
of its services. Its Regional Of ce 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 Of ce 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;
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;
cdasiaonline.com
(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
ful llment 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 is 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 speci c 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
cdasiaonline.com
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 adopted 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 of cials 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 of cial functions and, in his absence, perform the
cdasiaonline.com
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
buildings 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 staf ng 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
cdasiaonline.com
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, Of ce of Civil Defense, Philippine Veterans Affairs Of ce,
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
Secretary and his immediate staff as determined by him.
SECTION 20. Of ce of the Undersecretary . The functions of the Undersecretary shall
be as follows:
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
When the Secretary is unable to perform his duties owing to illness, absence, or other
cause, as in case of vacancy in the Of ce, 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.
cdasiaonline.com
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
CHAPTER 4
Office of Civil Defense

SECTION 27. Organization. The Of ce of Civil Defense shall be headed by an
Administrator who shall be assisted by a Deputy Administrator. The Of ce 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 and 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 organizations for civil
preparedness;
(4) Develop and coordinate a program for informing, educating and training the
public on civil defense measures and activities; and
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,
cdasiaonline.com
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 Of ce 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 exservicemen, and assist their widows and dependents, and other retired
military personnel; and
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 of cers 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 of cers and enlisted personnel;
cdasiaonline.com
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 un lled, inactivated or merged with another Major
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 the 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 of cers to the basic, technical and administrative services, and
enlisted in the basic service shall be governed by rules and regulations prescribed by the
Secretary of National Defense.
SECTION 37. The Citizen Armed Force. (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 of cers and men
in the Standing Force and all quali ed 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.
cdasiaonline.com
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
cdasiaonline.com
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
authorities.
SECTION 41. Composition. The General Headquarters shall be the command and
control element of the AFP. It shall be composed of the Of ce of the Chief of Staff, Of ce of the
Vice-Chief of Staff, the AFP General Staff, and other staff of ces 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 staffs, 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 ag of cers 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
Of ces 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 ef ciency 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
cdasiaonline.com
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 speci c 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
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
cdasiaonline.com
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 territorial 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, train, 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 Of cers and Enlisted Personnel . (1)
Commissioned of cers and enlisted personnel of the Philippine Constabulary, as peace
of cers, shall execute lawful warrants and orders of arrest issued against any person for any
cdasiaonline.com
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 of cers and enlisted personnel of the
Army, Air Force, or Navy, to the Philippine Constabulary or any of its subordinate units. The
of cers and enlisted personnel so assigned or detailed shall have the authority and duties of
peace of cers 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 source of regular of cers 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 (CCAFP) 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 fteen (15) members selected from the of cers 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 character, 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
(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
cdasiaonline.com
(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, instructors, 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 xed 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 of cials 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 of ces, 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 Structure. 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 of ces in the different headquarters levels may be jointly staffed by the
constabulary, police, jail and re service of cers 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:
cdasiaonline.com
(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, ef ciency, 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 Of ce 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
cdasiaonline.com
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 eld 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.
(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
Proper, National Health Facilities, Regional Of ces, Provincial Health Of ces, District Health
Offices and Local Health Agencies.
CHAPTER 2
Department Proper
SECTION 5. Department Proper. The Department Proper shall be composed of the
cdasiaonline.com
Of ce of the Secretary, the Of ce for Management Services, the Of ce for Public Health
Services, the Of ce for Hospital and Facilities Services, the Of ce for Standards and
Regulations, and the Executive Committee for National Field Operations.
the Secretary of Health and his immediate staff; the Undersecretary acting as Chief of Staff in
the Of ce 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 Of ce 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 of ce 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 of ce that shall
monitor the Department's nancial affairs, internal operations, and the delivery of frontline
services with a view to assuring the integrity of the Department's nancial operations and the
requirements of the Commission on Audit; optimizing the internal operating ef ciency of the
Department and its eld of ces; and ensuring that the Department's constituencies are
provided front line services from the Department with the adequacy, quality, and ef ciency 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 systems 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
Undersecretaries who shall exercise the following functions;
ve (5)
(1) Advise the Secretary in the promulgation of Department orders, administrative

orders and other issuances;
cdasiaonline.com
(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
CHAPTER 3
Department Services
SECTION 12. Of ce for Management Services . The Of ce 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, eld
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, programs, 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 Departmental use; manufacture
vaccines, sera, anti-toxins, and other biologicals; provide consultative, training
and advisory services to implementing agencies; and conduct studies and
research related to biological production, distribution and use;
cdasiaonline.com
(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. Of ce for Public Health Services . The Of ce for Public Health Services,
headed by an Undersecretary, shall include ten (10) staff services involved in policy formulation,
standards development, program development, and program monitoring of disease control and
service delivery programs implemented by the eld of ces. The Undersecretary for Public
Health Services, who shall be supported by an Assistant Secretary, shall supervise the
following:
(1) Maternal and Child Health Service 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 the control of 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
conduct studies and research related to schistosomiasis and its control;
(9) Communicable Disease Control Service which shall formulate plans, policies,
cdasiaonline.com
programs, standards and techniques relative to the control of communicable

diseases, other than the major causes of mortality and morbidity, such as
leprosy, sexually transmitted diseases, filariasis and others; provide
conduct studies and research related to these other communicable diseases;
(10) Non-communicable Disease Control Service which shall formulate plans,
policies, programs, standards and techniques relative to the control of noncommunicable diseases; provide consultative, training and advisory services
to implementing agencies; and conduct studies and research related to
mental illness, cardiovascular-disease, cancer, other non-communicable
diseases, and occupational health.
SECTION 14. Of ce for Hospital and Facilities Services . The Of ce 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, programs,
policies, 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. Of ce for Standards and Regulations . The Of ce for Standards and
Regulations, headed by an Undersecretary and supported by an Assistant Secretary, shall
include three (3) bureaus and one (1) national of ce 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
eld of ces. 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 ef ciency of the Department's eld of ces 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
cdasiaonline.com
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 offices 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 ratproof zones in designated international ports and airports and over medical
examination of aliens for immigration purposes.
CHAPTER 5
Field Offices
SECTION 16. Of ce for National Field Operations . The Of ce for National Field
Operations, through an Executive Committee, shall supervise the operations of the various
Regional Field Of ces 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 Of ces . The Department eld of ces, under the
cdasiaonline.com
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 Pias, Muntinlupa, San Juan,
Valenzuela, Navotas, Malabon, Paraaque, 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 Of ces . The Department is authorized to establish,
operate, and maintain a Department-wide Regional Of ce, in each of the administrative regions
of the country, under the supervision of an Executive Committee chaired by the Secretary. Each
Regional Of ce 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 Of ce shall be responsible for
the eld operations of the Department in its administrative region and for providing the region
with ef cient 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 of ces and city health of ces are located in the region except those
placed under the Department Proper.
In addition to the foregoing, a Regional Of ce shall have within its administrative region,
(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;
SECTION 19. Provincial Health Of ce . The Provincial Health Of ce shall be the
Department agency in the province. It shall exercise supervision and control over district health
of ces and other eld units of the department in the province, except those otherwise placed
under the Department Proper or directly under the Regional Health Office.
cdasiaonline.com
The Provincial Health Of ce shall be headed by a Provincial Health Of cer. Depending on

the size, population, and health facilities of the province as well as budgetary provisions, a
province may have one Assistant Provincial Health Of cer assisting the Provincial Health
Of cers, or two Assistant Provincial Health Of cers, one assisting the Provincial Health Of cer
in public health activities and the other assisting in hospital operations. The Provincial Health
Of cers and Assistant Provincial Health Of cers 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 Of ce 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 Of ce shall be headed by a District Health Of cer who shall also serve
as the Chief of the district hospital as well as the head of all eld units in the district. District
Health Of cers 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 Of cers . The City Health Of cers and Assistant City Health
Of cers 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 Of ces, 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 Of ces and those of
other subordinate units of the Regional Health Of ces 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 bene ciaries, 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.
T h e ex of cio 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 of cio 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
cdasiaonline.com
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 ef cient
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 liberalization program, (c)
policies designed for the expansion and diversi cation 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 mediumscale enterprises;
cdasiaonline.com
(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 of ces,
and line corporate agencies and government entities.
CHAPTER 2
cdasiaonline.com
Department Proper
Secretary, his immediate staff, the Undersecretary for Policy Planning and Support Services,
and the Of ces and Services directly supportive of the Of ce 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;
cdasiaonline.com
(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.
Undersecretaries. They shall exercise supervision over the of ces, services, operating units and
individuals under their authority and responsibility.
The Secretary may designate any Undersecretary to supervise the bureaus, of ces, and
agencies, including the attached entities, consistent with the mandate of the Department.
SECTION 7. Assistant Secretaries. The Secretary shall also be assisted by ve (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
cdasiaonline.com
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. Of ce of the Undersecretary for Domestic Trade . The Of ce of the
Undersecretary for Domestic Trade shall include all the staff bureaus and services involved in
policy formulation, standards development, programs development, and program monitoring of
the 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 Regulation 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 product 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
cdasiaonline.com
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. Of ce of the Undersecretary for International Trade . The Of ce of the
Undersecretary for International Trade shall include all the units involved in policy formulation,
standards development, program development, and 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
cdasiaonline.com
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.
cdasiaonline.com
CHAPTER 5
Office of the Undersecretary for Industry and Investments

SECTION 12. Of ce of the Undersecretary for Industry and Investments . The Of ce 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. Of ce of the Undersecretary for Regional Operations . The Of ce of the
Undersecretary for Regional Operations shall exercise supervision and control over the
Department's Regional Of ces, described in Section 9, par. 1 hereof. It shall be responsible for
the eld operations of the Department, ensuring full compliance with Department policies,
rigorous implementation of Department rules and regulations, and proper implementation of
Department plans and programs by the Regional Of ces in their respective administrative
jurisdictions.
SECTION 14. Regional Of ces . The Department is hereby authorized to establish,
operate and maintain a Department-wide regional of ce in each of the country's administrative
regions. Each Regional Of ce shall be headed by a Regional Director who shall be assisted by
an Assistant Regional Director. A Regional Of ce shall have, within its administrative region, the
(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
cdasiaonline.com
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 speci c 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 systems 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
cdasiaonline.com
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 nancial,
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 tenantowners, farm managers, and other cultivators through appropriate research and development
programs, and shall render adequate assistance in nance, 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,
cdasiaonline.com
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 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 forming, 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
SECTION 4. Organizational Structure. The Department shall consist of the Of ce 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
cdasiaonline.com
Department Proper
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 in 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
SECTION 9. Legal and Public Assistance Service. The Legal and Public Assistance
Service shall have the following functions:
cdasiaonline.com
(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
Secretary.
SECTION 11. Finance and Physical Assets Management Service. The Finance and
Physical Assets Management Service 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
cdasiaonline.com
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 logistical 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
cdasiaonline.com
matters;
(11) Conduct a continuing follow-up and evaluation of the handling and disposition
of judicial cases, claims and conflicts adjudication, legal information and paralegal 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,
irrigation 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
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;
cdasiaonline.com
(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, landholdings, 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
SECTION 16. Bureau of Agrarian Reform Information Education. The Bureau shall have
(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;
cdasiaonline.com
(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
SECTION 17. Bureau of Agrarian Reform Bene ciaries Development . The Bureau shall
(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;
(9) Monitor and evaluate the activities of field offices on the development and
management of resettlement areas and landed estates, and agrarian reform
beneficiaries development; and
CHAPTER 5
Regional and District Offices and Attached Agencies

SECTION 18. Regional Of ce . The Regional Of ce shall be responsible for supporting
cdasiaonline.com
the eld 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 Of ces . The Agrarian Reform Provincial Of ce 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:
cdasiaonline.com
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 reform 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 cooperativecultivatorship 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
recommended 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 land ownership 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;
cdasiaonline.com
(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 cooperativecultivatorship 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
cdasiaonline.com
general supervision over local governments and in ensuring autonomy, decentralization and
community empowerment.
(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
SECTION 4. Organizational Structure. The Department, shall be composed of the Of ce
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 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 ef cient 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 ef cient and effective staff advise and
assistance on budgetary, financial and management improvement matters.
cdasiaonline.com
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 ef cient and effective services relative to personnel,
information, records, supplies, equipment, collection, disbursements, 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 eld 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 the 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
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;
cdasiaonline.com
(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;
(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
SECTION 14. Of ce of Public Affairs . The Of ce of Public Affairs shall have the
(1) Provide technical assistance in the modernization and maintenance of a
Department-wide micro-telecommunications 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 implementation 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 of cials 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 staf ng pattern of the Local Government Academy shall be prescribed and
approved by the Secretary.
SECTION 16. National Barangay Operations Of ce . The National Barangay Operations
cdasiaonline.com
Of ce 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. Of ce of Project Development Services . The Of ce 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 systems and processes at the local levels; 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 Of ces . The Secretary is authorized to establish,
operate and maintain one Regional Of ce 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
cdasiaonline.com
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
bene ts 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;
cdasiaonline.com
(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;
Proper, Department Services, Bureaus and Offices, Regional Offices and Foreign Field Offices.
The Department Proper shall consist of the Of ces 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 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 Promotions
cdasiaonline.com
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, nancial and
management matters and shall perform such other related functions as may be assigned or
delegated to it by the Secretary.
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 Of ce Character and Head . The Bureaus and Of ces 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;
(3) Promote, organize and provide support for tourist councils;
(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;
cdasiaonline.com
(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. Of ce of Tourism Information . The Of ce of Tourism Information shall
(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. Of ce of Tourism Standards . The Of ce of Tourism Standards shall have
(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. Of ce of Tourism Development Planning . The Of ce 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
cdasiaonline.com
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 zones;
(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 tourism; 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. Of ce of Product Development . The Of ce of Product Development shall
(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 tourismrelated products and programs; and
(3) Encourage and promote joint undertakings with the private sector of new
tourism-related products and programs.
SECTION 18. Of ce of Tourism Coordination . The Of ce of Tourism Coordination shall
(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
cdasiaonline.com
(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 Of ces . Subject to the approval of the President, the
Department shall have foreign of ces 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 Of ce . The Department is authorized to establish, operate and
maintain a Regional Of ce in each of the administrative regions of the country, under the
immediate supervision of the Assistant Secretary for Tourism Services and Regional Of ces. A
Regional Of ce shall be headed by a Regional Director and shall, within its administrative region,
(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;
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 bene t 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,
sheries, 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
cdasiaonline.com
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.
(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
cdasiaonline.com
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 sub-classification 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
cdasiaonline.com
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;
Proper, the Staff Of ces, the Staff Bureaus, and the Regional Of ces, Provincial Of ces and
Community Offices.
CHAPTER 2
The Department Proper

SECTION 6. Composition. The Department Proper shall be composed of the Of ce of
the Secretary, the Of ces of the Undersecretaries and Assistant Secretaries, and the Public
Affairs Office, Special Concerns Office, and the Pollution Adjudication Board.
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
President.
Undersecretaries upon the recommendation of the Secretary. The Secretary is hereby
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
cdasiaonline.com
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
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 ForeignAssisted 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 Of ce . The Public Affairs Of ce, under the Of ce 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 Of ce . The Special Concerns Of ce, also under the
Of ce 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 identi ed by the Secretary which
necessitate special and immediate attention.
SECTION 13. Pollution Adjudication Board. The Pollution Adjudication Board, under the
Of ce 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 of cers 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.
cdasiaonline.com
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
Secretary.
SECTION 15. Lands Management Bureau. The Lands Management Bureau, to be
headed by a 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 land 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
cdasiaonline.com
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 Reservations Development Board, and the Gold
Mining Industry 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
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 regulations for environmental impact assessments and
provide technical assistance for their implementation and monitoring;
cdasiaonline.com
(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 Offices 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 program.
The Ecosystems Research and Development Bureau shall directly manage and
administer the Forest Research Institute Research Of ces, laboratories, and forest experiment
stations located at UP Los Baos and such other eld laboratories as the Secretary may assign
to its direct supervision. The Bureau shall coordinate all technological researches undertaken
by the eld of ces, assess and translate all recommendable ndings 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 Settlements
cdasiaonline.com
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 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
Secretary.
CHAPTER 4
The Department Field Offices

SECTION 20. Field Of ces of the Department . The eld of ces of the Department are
the Environmental and Natural Resources Regional Of ces in the thirteen (13) administrative
regions of the country; the Environment and Natural Resources Provincial Of ce in every
province, and the Community Office in every municipality, whenever deemed necessary.
SECTION 21. Environment and Natural Resources Regional Of ce . A Regional Of ce
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 ve (5) Assistant Regional Technical Directors, (with the rank of Assistant
Regional Director), one (1) each for Forestry, for Lands Management, for Mines and GeoSciences, Environmental Management and Ecosystems Research, respectively, and who shall
be Career Executive Service Officers.
An Environment and Natural Resources Regional Of ce shall be located in the identi ed
regional capital and shall have the following functions:
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
cdasiaonline.com
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
Secretary.
SECTION 22. Provincial and Community Of ces . The Natural resources provincial and
community of ces shall each be headed by a provincial natural resource of cer and community
natural resource of cer, respectively. They shall take over the functions of the district of ces of
the former Bureau of Forest Development, Bureau of Lands, and Bureau of Mines and GeoSciences.
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, ef cient, 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 nonexistent.
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, ef cient and reliable postal, transportation and
communications services.
(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
cdasiaonline.com
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
cdasiaonline.com
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.
Proper, the Department Regional Of ces, the Land Transportation Franchising and Regulatory
Board, and the Attached Agencies.
CHAPTER 2
Department Proper
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 of ces 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 of ces and four
(4) line of ces. 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;
cdasiaonline.com
(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 of ces 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 Of ce of the Assistant Secretary for Land
Transportation. There shall be two service units in the Of ce 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 Traf c Adjudication Service . The Traf c 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;
cdasiaonline.com
(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 Of ces in
each of the administrative regions of the country: the Regional Of ce for Land Transportation,
the Regional Of ce for Telecommunications and the Regional Of ce for Postal Services. Each
Regional Of ce shall be headed by a Regional Director to be assisted by an Assistant Regional
Director.
The Regional Of ces 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 Of ces shall have, within their respective administrative
regions, the following functions:
Department;
(3) Coordinate with regional offices of other departments, offices and agencies;
The Of ce 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 ve (5)
years, another a holder of a degree in civil engineering, and the other a holder of a degree in
economics, nance 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,
cdasiaonline.com
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 injunction, 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 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 proprio 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
cdasiaonline.com
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 proprio review
any decision or action of the Board before the same becomes final.
SECTION 21. Regional Franchising and Regulatory Of ces . There shall be a Regional
Franchising and Regulatory Of ce 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 Of ces 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 Of ces 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 Of ce 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
cdasiaonline.com
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-governmental 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 multilateral linkages, for technical
cooperation, in coordination with the Department of Foreign Affairs;
(10) Provide advisory services and develop and implement training standards 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;
cdasiaonline.com
(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
SECTION 4. Organizational Structure. The Department, aside from the Department
Proper comprising the Of ce of the Secretary, the Of ces of the Undersecretaries and
Assistant Secretaries and the Services, shall consist of the Bureaus, Regional Of ces,
Provincial/City Offices and Municipal/District Offices.
CHAPTER 2
Department Proper
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 Disabled Persons' 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
cdasiaonline.com
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
Of ces; 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 Of ces 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
cdasiaonline.com
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 Of ce . 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 Of ces 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;
cdasiaonline.com
(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 Of ce shall be headed by a Regional
Director who shall be responsible for ef ciently 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 Of ce . The Department is hereby authorized to establish,
operate and maintain Provincial/City Of ces throughout the country with jurisdiction over all
municipalities/districts within the province. The Provincial/City Of ces 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 Of ce . The Provincial/City Of ce shall be headed
by a Provincial/City Social Welfare Of cer who shall be accountable for the ef cient and
effective performance of its functions and implementation of programs of the Department,
within the province. The Provincial/City Social Welfare of cer shall exercise functional
administrative supervision over eld operations of the Department, including the authority to
recommend that eld resources and personnel be contributed to integrated, municipality-wide
development efforts.
CHAPTER 7
Municipal/District Offices
SECTION 18. Municipal/District Of ce . The Department is hereby authorized to
establish, operate and maintain a Municipal/District Of ce to service a municipality or city
district which shall be headed by the Supervising Social Welfare Of cer and shall be primarily
responsible for the efficient and effective implementation of the Department's field programs in
cdasiaonline.com
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 Persons 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 contributions for charitable or public welfare purposes shall rst
secure a permit from the Regional Of ces of the Department. Upon the ling of a written
application for a permit in the form prescribed by the Regional Of ces 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 veri ed 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 report 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 worker to supervise and take charge of its social service functions in
cdasiaonline.com
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 certi cate 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 rst 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 de ned and stated in writing. Such de nition 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 said 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 omission 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 rst registered with and licensed by the
Department.
TITLE XVII
Budget and Management

cdasiaonline.com
CHAPTER 1
General Provisions
SECTION 1. Declaration of Policy. The national budget shall be formulated and
implemented as an instrument of national development, re ective 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 governmentowned 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 ef cient 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
ef ciency in the management of government operations, administration of compensation and
position classi cation systems, assessment of organizational effectiveness and review and
evaluation of legislative proposals having budgetary or organizational implications.
CHAPTER 2
Department Proper
SECTION 4. Of ce of the Secretary . The Of ce 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.
Undersecretaries, who shall all be appointed by the President upon the recommendation of the
Secretary. They shall exercise supervision over the of ces, services, operating units and
individuals under their authority and responsibility.
SECTION 6. Assistant Secretaries. There shall be ve (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 Of ce . The Management Services Of ce 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
cdasiaonline.com
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 Of ce . 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
information monitoring systems.
CHAPTER 4
Bureaus
SECTION 10. The Budget Operations Of ce . The Budget Operations Of ce shall review
and analyze the work and nancial ows, 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 nancial assistance, prepare
recommendations for fund releases, formulate and implement scal 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
cdasiaonline.com
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 foreignassisted 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 Of ce . The National Accounting and
Finance Of ce shall take charge of the maintenance of the data bank of nancial information
and shall provide the necessary data required by the President, scal agencies and international
nancial institutions, analyze and evaluate the accounts and overall nancial 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 Of ces . The Regional Of ces 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 scienti c and technological efforts and ensure that the results therefrom are
cdasiaonline.com
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 scienti c and
technological activities for both the public and private sectors and ensure that the results of
scienti c 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.
(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 databank 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
disciplines 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
SECTION 4. Structural Organization. The Department shall consist of the Of ce of the
Secretary, Undersecretaries and Assistant Secretaries, the Services, Inter-Council Review Board,
Sectoral Planning, Councils, Institutes and Regional Of ces. 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
cdasiaonline.com

SECTION 6. Undersecretaries. The Secretary shall be assisted by three (3)
Undersecretaries, one for research and development, one for regional operations and one for
scienti c 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 collection, 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 ve (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
cdasiaonline.com
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 eld of industry and energy, who are chief executive of cers of their
respective companies in the eld 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 rst appointed by the President shall be as follows: two (2) for one (1)
year and two (2) for two (2) years, as xed in their respective appointments. The members shall
serve and continue to hold of ce until their respective successors shall have been duly
appointed and quali ed. 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 Baos, Administrator of the National Food Authority and Executive Director
of the Council Secretariat and three (3) representatives of the private sector in the elds of
agriculture or forestry, who are chief executive of cers of their respective companies in the
eld 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
rst appointed by the President shall be as follows: one (1) for one (1) year and two (2) for two
(2) years, as xed in their respective appointments. The members shall serve and continue to
hold of ce until their successors shall have been duly appointed and quali ed. 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 eld of health,
who are chief executive of cers of their respective companies in the eld 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; Provided, however, that the tenure of the members rst appointed by the President shall
be as follows: two (2) for one (1) year and two (2) for two (2) years, as xed in their respective
appointments. The members shall serve and continue to hold of ce until their successors shall
have been duly appointed and quali ed. 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 of cers of their respective companies in the
eld of aquaculture or marine research or development or are acknowledged leaders of their
cdasiaonline.com
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 rst appointed by the President shall be as follows: two (2) for one (1)
year and the other three (3) for two (2) years, as xed in their respective appointments. The
members shall serve and continue to hold of ce until their successors shall have been duly
appointed and quali ed. 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 eld 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 their 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 results to end-users, including technical
extension and training services;
(3) Operate and maintain nuclear research reactors and other radiation facilities; and
(4) 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
cdasiaonline.com

(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 of 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
of 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
(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:
cdasiaonline.com
(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
cdasiaonline.com
Regional Offices
SECTION 28. Regional Offices. The Department is authorized to establish, operate and
maintain a Regional Of ce, 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 Of ce shall have, within its
administrative region, the following functions:
(1) Implement laws, rules, regulations, policies, plans, programs and projects of the
Department;
(3) Coordinate with regional offices of other departments, offices and agencies in
the administrative region;
SECTION 29. Department Of ces in Other Countries . The Department may also have
such of ces 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
(1) To stimulate research in the mathematical, physical, biological and other basic
sciences and in the application of these sciences to engineering, agricultural,
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 institutions;
(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
cdasiaonline.com
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 works 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 fty (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 subjects
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 of cio 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 of cio 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 Metals Industry and Research Development Center. The Metals
Industry and Research Development Center shall be a non-pro t research and technological
institution which shall provide both the government and the private sector with professional
cdasiaonline.com
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 of cio 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
Metals 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.
BOOK V
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 tness; that the Civil Service Commission, as the central personnel agency of the
Government shall establish a career service, adopt measures to promote morale, ef ciency,
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 of ce is a
public trust and public of cers 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 Of cers and Employees . Public
Of cers 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 xed by law. The terms and conditions of
employment which are not xed 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 of cials 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. De nitions 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.
cdasiaonline.com
(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 classi ed into career service and non-career
service.
SECTION 7. Career Service. The Career Service shall be characterized by (1) entrance
based on merit and tness to be determined as far as practicable by competitive examination,
or based on highly technical quali cations; (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
cdasiaonline.com
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 rst two levels shall be through
competitive examinations, which shall be open to those inside and outside the service who
meet the minimum quali cation requirements. Entrance to a higher level does not require
previous quali cation 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 occupational 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 tness utilized for the career
service; and (2) tenure which is limited to a period speci ed 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.
cdasiaonline.com
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- ve 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 rst appointed, the
Chairman shall hold of ce for seven years, a Commissioner for ve 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
cdasiaonline.com
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 investigations 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 whenever necessary;
(16) Delegate authority for the performance of any function to departments,
agencies and offices where such function 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
SECTION 14. Membership of the Chairman in Boards. The Chairman shall be a member
cdasiaonline.com
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 of cials 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. Of ces 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
laws, 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.
cdasiaonline.com
(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 managementemployee 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
cdasiaonline.com
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 of ce 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 Departments and Agencies. Each Secretary or
head of of ce, agency, government-owned or controlled corporation with original charter and
local government shall be responsible for personnel administration in his of ce 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, of ce, agency, government-owned or controlled corporation, and
provincial and city government a Civil Service Staff which shall be headed by an of cer of the
Commission. The necessary staff personnel and of ce 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 the Department concerned and
shall perform the following speci c 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 Of cers . There shall be a Council of Personnel
Of cers to be composed of chief personnel of cers 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 Of cer who shall be designated by the Chairman from
among the appropriate of cials in the Civil Service Commission, the Council is authorized to
elect such other of cers from among its members and to x 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:
cdasiaonline.com
(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 quali ed to enter the service. Employees shall be selected on the basis of tness to
perform the duties and assume the responsibilities of the positions.
(2) When a vacancy occurs in a position in the rst level of the Career Service as de ned
in Section 8, the employees in the department who occupy the next lower positions in the
occupational group under which the vacant position is classi ed, and in other functionally
related occupational groups and who are competent, quali ed 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
de ned 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 classi ed and in other
functionally related occupational groups and who are competent, quali ed 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 tness, 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 lled by promotion as provided herein the same shall be lled 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 quali ed next-in-rank employee shall have the right to appeal initially to the
cdasiaonline.com
Secretaries or heads of agencies or instrumentalities including government-owned or

controlled corporations with original charters, then to the Merit System Protection Board, and
nally to the Civil Service Commission an appointment made in favor of another employee if the
appellant is not satis ed with the written special reason or reasons 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, "quali ed nextin-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) Quali cation in an appropriate examination shall be required for appointment to
positions in the rst 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 lling 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 the Civil Service Law: Provided, further, That
a person with a civil service eligibility acquired by successfully passing an examination shall be
quali ed for a position requiring a lower eligibility if he possesses the other requirements for
appointment to such position.
SECTION 22. Quali cation Standards . (1) A quali cation standard expresses the
minimum requirements for a class of positions in terms of education, training and experience,
civil service eligibility, physical tness, and other qualities required for successful performance.
The degree of quali cations of an of cer or employee shall be determined by the appointing
authority on the basis of the qualification standard for the particular position.
Quali cation 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 of cers
and employees towards professional growth and foster the career system in the government
service.
(2) The establishment, administration and maintenance of quali cation 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 tness, 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
cdasiaonline.com
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
certi cation, 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 justi cation 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 delinquency 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
cdasiaonline.com
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 quali cation
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 tness,
ef ciency and length of service, and those found to be least quali ed for the remaining
positions shall be laid off.
SECTION 30. Career and Personnel Development. The development and retention of a
competent and ef cient 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 merit
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 de nite 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 of cers 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 ef ciency and organizational
effectiveness.
cdasiaonline.com
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
suf cient 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 of cers and
employees of the government who by their suggestions, inventions, superior accomplishment,
and other personal efforts contribute to the ef ciency, 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.
cdasiaonline.com
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 governmentowned 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 policymaking or managerial or whose duties are of highly con dential 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.
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 led 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 led with the Regional Of ces 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. Certi cate of Registration . Upon approval of the application, a
registration certi cate 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 certi cates 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- le employees unless circumstances otherwise
require.
SECTION 44. Sole and Exclusive Employees' Representatives. (1) The duly registered
cdasiaonline.com
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 certi cation 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 LaborManagement 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 ViceChairman; 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.
CHAPTER 7
Discipline
SECTION 46. Discipline: General Provisions. (a) No of cer 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;
cdasiaonline.com
(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.
(c) Except when initiated by the disciplining authority, no complaint against a civil service
of cial 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, 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 ne in an amount exceeding thirty days' salary, demotion in rank or salary or
transfer, removal or dismissal from of ce. A complaint may be led directly with the
Commission by a private citizen against a government of cial or employee in which case it may
hear and decide the case or it may deputize any department or agency or of cial or group of
of cials 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.
cdasiaonline.com
(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 of cers and employees under their jurisdiction. Their decisions shall be nal in
case the penalty imposed is suspension for not more than thirty days or ne in an amount not
exceeding thirty days' salary. In case the decision rendered by a bureau or of ce head is
appealable to the Commission, the same may be initially appealed to the department and nally
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 con rmation by the Secretary
concerned.
(3) An investigation may be entrusted to regional director or similar of cials who shall
make the necessary report and recommendation to the chief of bureau or of ce 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. Procedures in Administrative Cases Against Non-Presidential Appointees.
(1) Administrative proceedings may be commenced against a subordinate of cer or
employee by the Secretary or head of of ce 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 led 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 ve days nor later than ten days from
the date of receipt of respondent's answer by the disciplining authority, and shall be nished
within thirty days from the ling 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 fteen 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 ling of the complaint or answer, upon which the crossexamination, by respondent and the complainant, respectively, shall be based. Following crossexamination, 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
cdasiaonline.com
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 fteen days from receipt of the decision unless a
petition for reconsideration is seasonably led, which petition shall be decided within fteen
days. Notice of the appeal shall be led with the disciplining of ce, which shall forward the
records of the case, together with the notice of appeal, to the appellate authority within fteen
days from ling of the notice of appeal, with its comment, if any. The notice of appeal shall
speci cally 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) errors 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 of cer or employee under his authority pending an investigation, if the
charge against such of cer 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 of cer or employee under preventive suspension is
not nally 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 of cers or employees in disciplinary
cases, subject to such terms and conditions as he may impose in the interest of the service.
CHAPTER 8
Prohibitions
SECTION 54. Limitation on Appointment. (1) No elective of cial 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
cdasiaonline.com
or in any of its subsidiaries.

(3) Unless otherwise allowed by law or by the primary functions of his position, no
appointive of cial shall hold any other of ce 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 of cer 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 of cial authority or
in uence to coerce the political activity of any other person or body. Nothing herein provided
shall be understood to prevent any of cer or employee from expressing his views on current
political problems or issues, or from mentioning the names of candidates for public of ce
whom he supports: Provided, That public of cers and employees holding political of ces 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
of cer or employee shall receive additional or double compensation unless speci cally
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, semiskilled 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 governmentowned or controlled corporations, made in favor of a relative of the appointing or
recommending authority, or of the chief of the bureau or of ce, 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.
(2) The following are exempted from the operation of the rules on nepotism: (a) persons
employed in a con dential 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 of ce or bureau,
contracts marriage with someone in the same of ce 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 were appointed in violation of these provisions.
CHAPTER 9
Leave of Absence
SECTION 60. Leave of Absence. Of cers 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 10
cdasiaonline.com
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 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 62. Fees. The Commission shall collect and charge fees for civil service
examinations, certi cations 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, certi cations, 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 Of cers to Administer Oaths, Take Testimony, Prosecute and
Defend Cases in Court. Members of the Commission, chiefs of of ces, and other of cers and
employees of the Commission designated in writing by the Chairman may administer such oath
as may be necessary in the transactions of of cial 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 of cials shall make payment to the employee of such amount from the salary of the
officers so liable.
SECTION 66. Liability of Disbursing Of cers . Except as may otherwise be provided by
law, it shall be unlawful for a treasurer or other scal of cer to draw or retain from the salary
due an of cer 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 ne not exceeding one thousand pesos or by
imprisonment not exceeding six (6) months, or both such ne 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 ef ciency, economy and
cdasiaonline.com
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. De nition of Terms . Unless the context 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 regulations, 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 Of cer of the
Commission Proper and Chief Executive Of cer 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;
cdasiaonline.com
(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. Of ces 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
(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
cdasiaonline.com
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
(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
(4) The Accountancy Office shall be headed by a Director and shall perform the
(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
(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
cdasiaonline.com
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
(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
(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
(8) The National Government Audit Offices I and II shall be headed by a Director and
cdasiaonline.com
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
(9) The Corporate Audit Office shall be headed by a Director and shall perform the
and regulations in government-owned or controlled corporations in the
National Capital Region;
(b) Review audit reports covering government-owned or controlled
corporations;
and the Auditing units under it;
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 governmentowned or controlled corporations;
(f) Prepare for the Commission, the annual financial report of governmentowned 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
(10) The Local Governments Audit Office shall be headed by a Director and shall
perform the following functions:
cdasiaonline.com
and regulations in local government units in the National Capital Region;
(b) Review audit reports covering local government units in the National
Capital Region;
and Auditing units under it;
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
SECTION 8. Auditing Units in Regional Of ces: Structure and Functions . The Regional
Of ces in Regions 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
cdasiaonline.com
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 postaudit basis: (a) constitutional bodies, commissions and of ces that have been granted scal
autonomy under this Constitution; (b) autonomous state colleges and universities; (c) other
government-owned or controlled corporations and their subsidiaries; and (d) such nongovernmental 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 de ciencies. 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 de ne 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 of cials 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 led by individuals and corporations with, and which are in the
custody of, government of ces 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
cdasiaonline.com
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 x 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
x 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 so require, deputize
and retain in the name of the Commission such certi ed 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 rm 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 rst 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 Of ce 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.
cdasiaonline.com
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
of cer 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 xing 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 nancial 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 of cial 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 certi cate, 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 certi cate 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 of cials or employees concerned, including those in nongovernment 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 justi able 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 donations through the Government.
SECTION 24. Investigatory and Inquisitorial Powers. The Chairman or any
Commissioner, the Central Of ce Managers, the Regional Directors, the Auditors of any
government agency, and any other of cial 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
cdasiaonline.com
punish contempt provided for in the Rules of Court under the same procedure and with the
same penalties provided therein. Any violation of any nal 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 nancial condition and results of operation of all agencies of the Government
which shall include recommendations of measures necessary to improve the ef ciency and
effectiveness of these agencies;
(2) To carry out the purposes of this section, the Chief Accountant or the of cial in
charge of keeping the accounts of government agency shall submit to the Commission yearend 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 of cial 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 of cials 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 nancial conditions, surplus or de cit analysis,
operations, changes in nancial 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 speci cally
any program, expenditure, or other nancial transaction or undertaking observed in the course
of 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 speci ed, 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 con ned to a mere inspection and
examination of the pertinent vouchers, inventories, and other papers but shall include an ocular
veri cation of the existence and condition of the property or supplies. The recommendation of
the auditor shall be embodied in the proper report.
cdasiaonline.com
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 regulations of the Commission.
SECTION 31. Seizure of Of ce by Auditor . (1) The books, accounts, papers and cash of
any local treasurer or other accountable of cer shall at all times be open to the inspection of
the Commission or its authorized representative;
(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 of cer to seize the of ce
and its contents, notify the Commission and the local chief executive, thereupon immediately
take full possession of the of ce 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 of ce of the local treasurer under this
section shall ipso facto supersede the local treasurer until the of cer 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 Of cer . (1) Upon
discovery in audit of a shortage in the accounts of any accountable of cer and upon a nding 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 of cer concerned where there is reasonable
ground to believe that the said of cer 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 of cer
concerned or any other person having possession or control of the property to accomplish a
receipt, in the form 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 receipt 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
of ces, 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 of 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.
cdasiaonline.com
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 nally settled shall in no case be opened or reviewed except as herein
provided.
CHAPTER 6
Government Auditing and Accounting

SECTION 38. De nition of Government Auditing . Government auditing is the analytical
and systematic examination and veri cation of nancial 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 as well as in the preparation of audit and financial reports.
SECTION 40. De nition of Government Accounting . Government accounting includes
the processes 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 of cers 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 Of cials . Except
as may otherwise be speci cally provided by law or competent authority, all moneys and
property of cially received by a public of cer 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 Of cial Receipts . (1) No payment of any nature shall be
received by a collecting of cer without immediately issuing an of cial receipt in
acknowledgment thereof. The receipt may be in the form of postage, internal revenue or
cdasiaonline.com
documentary stamps and the like, or of cially 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
ful llment 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 disbursements 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 suf cient 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. Certi cate 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
of cial of the agency concerned shall have certi ed to the of cer 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 veri cation by the auditor concerned. The certi cate signed by the proper
accounting of cial and the auditor who veri ed it, shall be attached to and become an integral
part of the proposed contract, and the sum so certi ed 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 Of cer . Any contract entered into contrary
to the requirements of the two (2) immediately preceding sections shall be void, and the of cer
or of cers 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 Treasurer of the Philippines, local treasurer, or any government depository
unless it is countersigned by a duly authorized of cial 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 prescribe from time to
cdasiaonline.com
time.
CHAPTER 9
Accountability and Responsibility for Government Funds and Property

SECTION 50. Accountable Of cers; Board Requirements . (1) Every of cer 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
of cer shall be pecuniarily interested, directly or indirectly, in any contract or transaction of the
agency in which he is such an officer.
CHAPTER 10
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 unjusti ed failure by the public of cer 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 of cer
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. Repeated
unjusti ed 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
cdasiaonline.com
voters shall not be deprived of their right 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 x 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 of cer 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 of ce any or all of such of cers 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
cdasiaonline.com
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, instructions 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
cdasiaonline.com
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 the purpose of ensuring free, orderly,
honest, peaceful and credible elections in any constituency. Such groups or
organizations shall function under the direct and immediate control and
supervision of the Commission;
(19) Conduct hearing 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 pre-proclamation
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
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
cdasiaonline.com
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 Quali cation . 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- ve (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 Of ce . 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 rst appointed, three (3) Members
shall hold of ce for seven (7) years, two (2) members for ve (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 commissioner 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 disquali ed under the Rules of Court. If it be claimed that the chairman or a
commissioner is disquali ed as above provided, the party objecting to his competency may le
his objection in writing with the Commission stating the ground therefor. The of cial concerned
shall continue to participate in the hearing or withdraw therefrom in accordance with his
determination of the question of his disquali cation. The decision shall forthwith be made in
writing and led with the other papers of the case in accordance with the Rules of Court. If a
disquali cation 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 Of cer; 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
cdasiaonline.com
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: Of ce of the Chairman, Of ce of the Executive Director, Of ce of Electoral
Contests Adjudication, Regional Of ces, 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 Of ces and Departments of the Commission .
The different of ces 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 ef ciency, economy and effectiveness, and pertinent Budget and Civil Service
Law, rules and regulations.
CHAPTER 3
The Field Offices

SECTION 11. Field Of ce 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. Quali cations of Heads of Field Of ces . Only members of the Philippine
Bar shall be eligible for appointment to the position of regional director, assistant regional
cdasiaonline.com
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 Of ces .
The Commission may make changes in the composition, distribution and assignment of eld
of ces, 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 of ce of the incumbents of positions affected 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 (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- ve 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;
cdasiaonline.com
(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 of ce 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 of ce, nor shall they be nancially 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 Of ce . 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 Of ce of the Ombudsman shall be headed by the
Ombudsman to be known as the Tanodbayan, 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 of cials 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
cdasiaonline.com
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 complaints led in any form or manner against public
of cials 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 Of ce of the Ombudsman shall enjoy scal
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 wellformulated 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 bene ts 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 multifaceted 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
cdasiaonline.com
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 bene ciaries, 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 of cial 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
Director-General of the NEDA Secretariat
Executive Secretary
Secretary of Finance
Secretary of Trade & Industry
Secretary of Agriculture
Secretary of Environment & Natural Resources
Secretary of Public Works and Highways
Secretary of Budget and Management
Secretary of Labor & Employment
Secretary of Local Government
Chairman
Vice-Chairman
Member
Member
Member
Member
Member
Member
Member
Member
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
cdasiaonline.com
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 Chairmen 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 Presidential 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 the 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
cdasiaonline.com
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 on 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 Governor 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, ve (5) Assistant Directors-General, the
National Development Of ce, the Regional Development Of ce, the Central Support Of ce and
the Regional Offices.
cdasiaonline.com
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 Of cer, 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 Of ce, one, for the Regional Development Of ce and one, for the Central
Support Office.
SECTION 12. Assistant Directors-General. The Director-General shall also be assisted
by ve (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 Of ce . The National Development Of ce 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 Of ce . The Regional Development Of ce 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.
(1) Regional Development Coordination Staff;
(2) Project Monitoring Staff; and
(3) Regional Offices.
In each of the administrative regions, there shall be a regional of ce 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 Of ce . The Central Support Of ce 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.
cdasiaonline.com
(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 Of ce (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 speci ed 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
cdasiaonline.com
shall be supported by funds actually available as certi ed 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 of ces
from savings in other items of their respective appropriations.
(7) Discretionary funds appropriated for particular of cial 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 scal year, the Congress shall have failed to pass the general
appropriations bill for the ensuing scal year, the general appropriations law for the preceding
scal 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, Of ce
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 obligations 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
cdasiaonline.com
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,
re ective 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 ef ciently. The national budget shall be
formulated within the context of a regionalized government structure and of the totality of
revenues and other receipts, expenditures 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 planningprogramming-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 scal agencies of
government. Budgetary priorities shall be those speci ed 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 nances 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 of ces, 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 of ces 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
cdasiaonline.com
implementation of major development projects of such size as to signi cantly 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 scal, monetary,
international payments, and other constraints.
SECTION 9. Performance and Financial Review. The analysis of agency operating
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 nancial 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 classi cation 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 de ciency 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;
cdasiaonline.com
(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 nancial 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, suf cient 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, of ce 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 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;
cdasiaonline.com
(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
Fund;
(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 speci c
to the various regions of the country. Where they are organized, regional of ces 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 of ces, 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 speci c
justi cation. 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 foreignassisted projects shall be explicitly considered at the time of project design and nancing
negotiation. The project study shall specify the cash ow 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 nanced 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
cdasiaonline.com
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 speci c 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 Exemption . All units of government, including governmentowned 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 speci ed for each budgetary program
and project of each department, bureau, of ce 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 the 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 authorize 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 Of cer 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 speci c 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.
cdasiaonline.com
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 of ce 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, of ce 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 speci c programs or activities nor shall it increase the amounts speci ed 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 xed 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 de ciency
appropriations involving the creation of new of ces, 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 scal 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 speci cally 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 a 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 governmentowned 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 gure, 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, modi cation 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 falsi cation of legislative documents under the Revised
Penal Code. When the offender is a government of cial or employee, he shall, in addition to
cdasiaonline.com
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 speci c 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 for 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 result 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
cdasiaonline.com
basis of authorized appropriations. The approved expenditure program shall constitute the
basis for fund release during the scal 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 lumpsum appropriations authorized for any purpose or for any department, of ce 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 speci c 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
of ce, or any other of cial, 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,
format, 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 scal year justifying the use of the reserve, necessary adjudgments may be made by
the Secretary when requested by the department, office 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 of ce 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 De cits . 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,
of ce or agency, may, with the approval of the President, be used to cover a de cit 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 speci cally
authorized by law: Provided, further, that whenever authorized positions are transferred from
one program or project to another within the same department, of ce 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, of ce or
agency concerned.
SECTION 40. Certi cation 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, of ce or agency without rst securing the certi cation of its
cdasiaonline.com
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 certi ed to accounts payable unless the obligation is founded on a
valid claim that is properly supported by suf cient evidence and unless there is proper authority
for its incurrence. Any certi cation for a non-existent or ctitious obligation and/or creditor
shall be considered void. The certifying of cial shall be dismissed from the service, without
prejudice to criminal prosecution under the provisions of the Revised Penal Code. Any payment
made under such certi cation shall be illegal and every of cial 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, of ces 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,
of ces 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 nance 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 nal selection of personnel to ll the
positions in the staf ng 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 of cial 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 of cial 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
of cial. If the appointing of cial 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 speci cally provided by law, all income accruing to the departments, of ces 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
cdasiaonline.com
received in trust and from the business-type activities of government may be separately
recorded and be 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 speci ed 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, of ce or agency
shall implement a cost reduction program for his department, bureau, of ce 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 of cial or employee
whose suggestion for cost reduction has been adopted and shall have actually resulted in cost
reduction, payable from the savings 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 scal year or previous scal years as may be
approved by the 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
cdasiaonline.com
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 foreignassisted 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
of cer in any department, bureau, of ce or agency unless he meets the quali cation and
training requirements established by the Budget Commission as prerequisite to appointment, in
addition to other quali cation 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 re ected 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, nancial 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 records 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 classi ed into such categories as
may be determined by the Department of Budget and Management, including but not limited to
cdasiaonline.com
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 classi cation of the
expenditure, (6) obligational authority and cash transactions arising from fund releases, and
such other classi cations 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 of ces, 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, of ce 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, of ces or agencies of the government shall submit a semiannual report of their accomplishments, both work and nancial 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 ef ciency 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 of cers, cashiers, disbursing of cers, administrative and personnel
of cers, and other responsible of cers of departments, bureaus, of ces and agencies to
submit trial balances, work and nancial 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 of cial 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 speci c services
which cannot be provided by the regular staff of the agency, shall be for a speci c period of
time, and shall have a de nite 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. Of cials and employees
who are duly appointed by competent authority to any position in another government of ce or
agency in a concurrent capacity, may, in the discretion of the President, be allowed to receive
cdasiaonline.com
additional compensation in the form of allowance or honorarium at such rates he shall x 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 speci cally 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 Classi cation 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 of cial 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 of ce 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. Of cials 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 nish work that must be completed within a speci ed 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 of ce,
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 speci cally 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 of cial
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
cdasiaonline.com
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 of cial 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 appropriation for supplies and
materials authorized in the General Appropriations Act.
SECTION 70. Subsistence of Crew of Government Vessels. The subsistence allowance
for the of cers 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 of cial or employee is
provided with "furnished quarters", such of cial 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 Of cials 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 of cial or employee may be entitled to
transportation expenses in going to and coming from his destination and to a daily allowance
while in the eld: Provided, further, That of cials 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.
Of cials and employees authorized to travel abroad may be granted clothing allowance:
Provided, That no of cial or employee shall be granted such clothing allowance oftener than
once every twenty-four (24) months.
cdasiaonline.com
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 modi cation 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 pro t-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 eld 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 of cial 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 of cial 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 of cial or employee is transferred from one station to another, said of cial 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, of ces 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 of cial functions
and activities of the agency. These motor vehicles shall be used strictly for of cial business,
bear government plates only, and after of ce hours to be kept in garage provided therefor by
the of ce or agency to which they belong, except, when in use for of cial business outside
of ce hours. The President, however, may authorize exceptions from these provisions for
of cials 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.
cdasiaonline.com
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, of ce 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 nancial institution for
loans intended for the acquisition of land for the construction of an of ce 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 of ce
concerned.
SECTION 80. Misuse of Government Funds and Property. Any public of cial 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 de ned 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.
cdasiaonline.com
(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.
(15) "Agency action" includes the whole or part of every agency rule, order, license,
cdasiaonline.com
sanction, relief or its equivalent or denial thereof.

CHAPTER 2
Rules and Regulations

SECTION 3. Filing . (1) Every agency shall le with the University of the Philippines Law
Center three (3) certi ed copies of every rule adopted by it. Rules in force on the date of
effectivity of this Code which are not led within three (3) months from that date shall not
thereafter be the basis of any sanction against any party or persons.
(2) The records of cer 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 fteen (15) days from the date
of ling as above provided unless a different date is xed by law, or speci ed 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 quarterly 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 codi cation 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 de ning 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 codi ed
rules or supplements to the Of ce of the President, Congress, all appellate courts and the
National Library. The bulletin and the codi ed rules shall be made available free of charge to
such public of cers 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 certi ed 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 xing of rates, no rule or nal 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
cdasiaonline.com
involving con icting rights or claims and obviate expensive litigations, every agency shall, in the
public interest, encourage amicable settlement, compromise 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 ve (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 noti ed 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 nal and
executory fteen (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 led, 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 nal orders in the adjudication of
contested cases.
(2) It shall be the duty of the records of cer 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.
cdasiaonline.com
SECTION 18. Non-expiration of License. Where the licensee has made timely and
suf cient 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 nally
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 fteen (15) days after receipt of a copy of the decision
complained of by the party adversely affected, by ling 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 fteen (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 nal and executory fteen (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 of cers as may be necessary for the hearing and
adjudication of contested cases.
(2) No hearing of cer shall engage 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 of cers, and
all indispensable and necessary parties as defined in the Rules of Court.
(4) Appeal from an agency decision shall be perfected by ling with the agency within
fteen (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 show, 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 fteen (15) days from receipt of the
nal 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
cdasiaonline.com
appellant shall have fifteen (15) days from receipt of the resolution to perfect his appeal.
(6) The review proceeding shall be led in the court speci ed 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 ndings of fact
of the agency when supported by substantial evidence shall be nal except when speci cally
provided otherwise by law.
SECTION 26. Transmittal of Record . Within fteen (15) days from the service of the
petition for review, the agency shall transmit to the court the original or a certi ed 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 Clause. 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.
Published in the Official Gazette, Vol. 83 No. 31, 3528-138 Supp., on August 3, 1987.
cdasiaonline.com

Revised Administrative Code of 1987

Uploaded by

Copyright:

Available Formats

Revised Administrative Code of 1987

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Revised Administrative Code of 1987

Uploaded by

Copyright:

Available Formats

July 25, 1987

EXECUTIVE ORDER NO. 292

name or designation, as in the case of department-wide regional offices.

Sovereignty and General Administration

SECTION 4. Territorial Subdivision of the Philippines . The territorial and political

State Immunity from Suit

Operation and Effect of Laws

Nationwide Special Days

Legal Weights, Measures and Period

regulation, require presentation to him of any statement under oath.

(2) Contracts in behalf of the political subdivisions and corporate agencies or

Distribution of Powers of Government

Of ce of the Ombudsman, a Commission on Human Rights, an independent central monetary

Office of the President

Functions of the Agencies Under the Office of the President

The Executive Branch

Secretaries, Undersecretaries, and Assistant Secretaries

department-wide basis, the Secretary shall appoint employees to positions in

as part of a technical service.

(d) Coordinate with local government units in the area; and

Powers and Duties of Heads of Bureaus or Offices

violation, except as expressly allowed by law;

Supervision and Control

Relationships of Government-Owned or Controlled Corporations and Regulatory Agencies to

or offices including government-owned or controlled corporations and their subsidiaries.

Secretary of Public Works

Secretary of Local Government

CD Technologies Asia, Inc. 2016

Authority and Philippine National

Controversies Among Government Offices and Corporations

(3) Conduct Philippine representation in the United Nations, the Association of

Program, implement and manage complementary organizational

Philippine Government in the ASEAN.

Board of Foreign Service Administration

SECTION 21. Functions of Consular Establishments. The consular establishments

Attaches and Representatives

Appointments, Compensation and Benefits

SECTION 8. Policy Development and Management Services Group . The Policy

Department-wide performance efficiency;

(a) Bureau of Internal Revenue;

Services, each of which shall be headed by a service chief;

the Group and others which may be given by the Commissioner.

SECTION 37. International Finance Policy Of ce . The International Finance Policy

have the following powers and functions:

(2) Oversee the operational activities of the Department;

Office of the Government Corporate Counsel

SECTION 10. Of ce of the Government Corporate Counsel . The Of ce of the

National Bureau of Investigation

Board of Pardons and Parole

(1) Administer the parole and probation system;

Land Registration Authority

Commission on the Settlement of Land Problems

body or commission in any matter, action or proceeding which, in his opinion,

marketing, and financing data requirements of the farmers as well as

planning support services, particularly in policy-formulation, planning, and agribusiness;

Bureaus and Offices

management of soils and water as vital agricultural resources;

SECTION 22. Bureau of Agricultural Research. The Bureau of Agricultural Research

SECTION 23. Bureau of Agricultural Cooperatives and Development. The Bureau of