Title
Banda vs. Ermita
Case
G.R. No. 166620
Decision Date
Apr 20, 2010
NPO employees challenged EO No. 378, claiming it violated their tenure and exceeded presidential authority. SC dismissed, upholding EO as valid reorganization.

Case Summary (G.R. No. 166620)

Scope of Presidential Reorganization Authority

Under the 1987 Constitution, the President has control over the executive branch. Section 31 of the Administrative Code grants the President continuing authority to reorganize the Office of the President and agencies attached thereto to achieve simplicity, economy, and efficiency—by abolishing or merging units, transferring functions, and realigning offices. General appropriations laws (e.g., RA 7645, RA 8760 and the 2003 GAA) further authorize the President to scale down, abolish, or reorganize agency activities and realign appropriations accordingly.

EO 378’s Amendments to EO 285 Fall Within Reorganization Power

EO 378 did not abolish the NPO nor transfer its core functions away; it simply removed the blanket exclusivity of NPO’s printing services (except election paraphernalia) and required the NPO to compete with private sector providers under cost and quality conditions. It also limited NPO’s GAA appropriation to its own income. These changes constitute permissible structural and functional adjustments designed to promote efficiency and fiscal responsibility, well within the President’s delegated legislative authority under the Administrative Code and supported by procurement reform policy.

Security of Tenure and Good Faith

Petitioners claimed EO 378 threatened their security of tenure by paving the way for NPO’s abolition. They offered no evidence that positions would be abolished, nor that the order was motivated by bad faith or political considerations. A reorganization effected

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