Banda v Ermita

G.R. No. 166620 | April 20, 2010 Held:

Leonardo-De Castro, J. 1. The case does not qualify as a class suit
a. Section 12, Rule 3 of the Rules of Court defines a class suit;
Group 3, Arada requisites are the following:
i. the subject matter of controversy is one of common
Facts: or general interest to many persons
 National Printing Office (NPO) was formed during the term of Pres. ii. the parties affected are so numerous that it is
Corazon Aquino by virtue of EO 285 impracticable to bring them all to court
o Sec. 6, EO 285: iii. the parties bringing the class suit are sufficiently
“There is hereby created a National Printing Office numerous or representative of the class and can
out of the merger of the Government Printing Office and fully protect the interests of all concerned
the relevant printing units of the Philippine Information b. The petition failed to state the number of NPO employees
Agency. xxx” who would be affected by the assailed EO and who were
 Pres. Arroyo issued EO 378, amending Sec. 6 of EO 285 by removing allegedly represented by petitioners; it was the SolGen who
the exclusive jurisdiction of the NPO over the printing services said that there were around 549 employees in the NPO
requirements of government agencies and instrumentalities i. Here, 67 petitioners – small fraction only, of which,
o Sec. 1, EO 387: government agencies and instrumentalities 32 executed an Affidavit of Desistance and one
are allowed to source their printing services from the signed a letter denying ever signing the petition
private sector through competitive bidding, subject to the ii. Only 20 petitioners effectively instituted the
condition that the services offered by the private supplier present case because only 20 petitioners were
be of superior quality and lower in cost compared to what mentioned in the jurat as having subscribed the
was offered by the NPO; NPO’s appropriation in the petition before the notary public
General Appropriations Act is also limited to its income c. Ibaes v. Roman Catholic Church: where the interests of the
 Petitioners challenged the constitutionality of EO 378 in this class plaintiffs and the other members of the class they seek to
suit represent are diametrically opposed, the class suit will not
prosper
Issues: 2. The president has the power to reorganize the offices and agencies
(Procedural) in the executive department – by virtue of constitutionally granted
1. W/N the case qualifies as a class suit – NO power of control over executive offices and by virtue of previous
(Substantive) delegation of the legislative power to reorganize executive offices
2. W/N it is beyond Pres. Arroyo’s executive powers to amend or under existing statutes
repeal EO 285 which was issued by Pres. Aquino when she still a. Buklod ng Kawaning EIIB v. Zamora: EO 292 or the
exercised legislative powers – NO Administrative Code of 1987 gives the President continuing
3. W/N EO 378 violates petitioners’ security of tenure because it paves authority to reorganize and redefine the functions of the
the way for the gradual abolition of the NPO – NO Office of the President
i. Section 31, Chapter 10, Title III, Book III of the said
Judgment: Code: “The President, subject to the policy in the
[T]he petition is hereby DISMISSED and the prayer for a Temporary Executive Office and in order to achieve simplicity,
Restraining Order and/or a Writ of Preliminary Injunction is hereby DENIED. economy and efficiency, shall have continuing
 authority to reorganize the administrative sector for certain government printing jobs
structure of the Office of the President. For this to encourage efficiency and profitability
purpose, he may take any of the following actions: 2. EO 378 just altered the NPO’s main
(1) Restructure the internal organization of function by limiting the exclusivity of its
the Office of the President Proper, including printing responsibility to election forms
the immediate Offices, the President Special b. Section 20, Chapter 7, Title I, Book III of EO 292: “[T]he
Assistants/Advisers System and the Common President shall exercise such other powers and functions
Staff Support System, by abolishing, vested in the President which are provided for under the
consolidating or merging units thereof or laws and which are not specifically enumerated above, or
transferring functions from one unit to which are not delegated by the President in accordance
another; with law.”
(2) Transfer any function under the Office of i. Inclusive and broad interpretation of the President’s
the President to any other Department or power to reorganize executive offices has been
Agency as well as transfer functions to the consistently supported by specific provisions in
Office of the President from other general appropriations laws
Departments and Agencies; and ii. Larin v. Executive Secretary: RA 7645, GAA for 1993,
(3) Transfer any agency under the Office of as among the statutory bases for the Presidents
the President to any other department or power to reorganize executive agencies
agency as well as transfer agencies to the iii. Buklod ng Kawaning EIIB v. Zamora: also traced
Office of the President from other from the GAA (RA 8760) the President’s authority to
Departments or agencies.” effect organizational changes in the department or
ii. NPO is part of the Office of the Press Secretary, agency under the executive structure
which has been an agency directly attached to the iv. 2003 GAA, reenacted in 2004 (the year of the
Office of the Press Secretary or as an agency under issuance of Executive Order No. 378), gave the
the Philippine Information Agency, is part of the President the authority to effect a wide variety of
Office of the President organizational changes in any department or agency
iii. Since the President has power to abolish, merge or in the Executive Branch in Secs. 77 and 78 –
consolidate offices in the Office of the President recognizes the power of the President to implement
Proper and to transfer functions/offices among the structural, functional, and operational adjustments
offices in the Office of President Proper and the rest in the executive bureaucracy and modify or realign
of the Office of the President and the Executive appropriations of funds as may be necessary
Branch, it follows that she has the power to effect 1. Limitation of the NPO’s appropriations to
less radical or less substantive changes to the its own income under EO 378 is statutorily
functional and internal structure of the Office of authorized by the above provisions
the President, including the modification of c. Bagaoisan v. National Tobacco Administration: streamlining
functions of such executive agencies of the NTA through reduction of its personnel deemed
1. Under EO 378, the NPO is still the main included in the President’s power to reorganize executive
printing arm of the government for all offices granted under the laws even if it did not involve an
kinds of government forms and publications abolition or a transfer of functions of an office
but must now compete with the private
d. Tondo Medical Center Employees Association v. Court of private contracting parties who are eligible and
Appeals: the power of the President to reorganize agencies qualified
under the executive department by executive or iii. Dario v. Mison: presidential power to reorganize
administrative order is constitutionally and statutorily agencies and offices in the executive branch of
recognized government is subject to the condition that it was
i. Section 17, Article VII of the 1987 carried out in good faith
Constitution: [T]he president shall 1. If reorganization is done in good faith, the
have control of all executive departments, bureaus abolition of positions, which results in loss
and offices. of security of tenure of affected
ii. Domingo v. Zamora: rationale behind the government employees is valid
President’s continuing authority under the 2. No such thing as an absolute right to hold
Administrative Code to reorganize the office, except those who hold constitutional
administrative structure of the Office of the offices which provide for special immunity
President - reorganize to achieve simplicity, as regards salary and tenure
economy and efficiency 3. Petitioners failed to substantiate their claim that EO 378 would
iii. Section 23, Chapter 8, Title II of the Administrative lead to the gradual abolition of the NPO and loss of security of
Code: the Office of the President consists of the tenure of its present employees
Office of the President Proper and the agencies a. Petitioners have the burden of proof
under it b. Petitioners also did not present any proof of their assertion
iv. The President did not usurp any legislative that the changes in the functions of the NPO were for
prerogative in issuing Executive Order No. 102 political considerations that had nothing to do with
(structural and functional reorganization of the improving the efficiency of, or encouraging operational
DOH). It is an exercise of the President’s economy in, the said agency
constitutional power of control over the executive
department, supported by the provisions of the Separate Concurring Opinion (Carpio, J.)
Administrative Code, recognized by other statutes,  EO 378 merely implements RA 9184
and consistently affirmed by this Court. o RA 9184: mandates conduct of competitive bidding in all
e. Issuance of EO 378: exercise of a delegated legislative procurement activities of the government
power granted by Section 31, Chapter 10, Title III, Book III  EO 378 is not a reorganization involving the realignment of offices
of the Administrative Code of 1987 and personnel movement, rather, it is an issuance to ensure that
i. Redefining NPO’s functions and limiting its funding the government benefits from the best services available from the
to its own income and transforming it into a self- market at the best price
reliant agency able to compete with the private  Limiting NPO’s budget to its income is a logical by-product of
sector is well within the prerogative of President opening its operations to the market sector – there will be a
Arroyo under her continuing delegated legislative decrease in its workload, thus its funding needs will also be
power to reorganize her own office decreased
ii. Objective behind EO. 378 is consistent with the
state policy contained in RA 9184 or the
Government Procurement Reform Act: encourage
competitiveness by extending equal opportunity to