Title
Supreme Court
Pichay, Jr. vs. Office of the Deputy Executive Secretary for Legal Affairs-IAD
Case
G.R. No. 196425
Decision Date
Jul 24, 2012
President's reorganization authority upheld; E.O. 13 abolishing PAGC, transferring functions to IAD-ODESLA deemed constitutional, no encroachment on Ombudsman's powers, due process observed.

Case Summary (G.R. No. 196425)

Creation and Powers of the PAGC under E.O. 12

E.O. 12 vested the collegiate PAGC with authority to investigate or hear administrative cases against presidential appointees and to submit factual findings, legal conclusions, and penalty recommendations to the President.

Abolition of PAGC and Transfer of Functions by E.O. 13

E.O. 13 abolished the PAGC, created an Investigative and Adjudicatory Division within ODESLA, and transferred PAGC’s powers, emphasizing the government’s policy of streamlining bureaucracy, economy, and efficiency.

Administrative Proceeding Initiated against Petitioner

Finance Secretary Purisima filed an affidavit for grave misconduct before IAD-ODESLA concerning LWUA’s stock purchase. Petitioner received an order to submit a written explanation and filed a motion to dismiss, citing a pending Ombudsman case on the same transaction.

Constitutional and Statutory Grounds of the Petition

Petitioner alleged E.O. 13 usurped legislative power to create public offices, appropriate funds, and delegate quasi-judicial functions; encroached on the Ombudsman’s powers; and violated due process and equal protection under the 1987 Constitution.

President’s Continuing Authority to Reorganize under E.O. 292

The Court held that Sec. 31 of E.O. 292 grants the President continuing delegated authority to abolish, consolidate, or merge units within the Office of the President Proper for simplicity, economy, and efficiency, including transferring functions among units.

Reorganization Versus Creation of a Distinct Office

The transfer of PAGC functions to an existing office (ODESLA) merely involved restructuring by establishing a new division. It did not create a separate agency, but altered internal lines of control—an act squarely within Sec. 31(1) of E.O. 292.

Good Faith and Economical Purpose of the Reorganization

E.O. 13’s Whereas clauses and the absence of a separate budget allocation for IAD-ODESLA demonstrated the President’s bona fide intention to streamline operations, eradicate corruption, and promote efficiency without additional congressional appropriation.

Legislative Power over Appropriations Not Usurped

Congress appropriated funds for the President’s Office in the General Appropriations Acts. Under Art. VI, Sec. 25(5) of the 1987 Constitution and P.D. 1177, the President may realign or augment his office’s budget from savings, so sourcing funds for IAD-ODESLA did not usurp legislative appropriation.

Investigative and Recommendatory Nature of IAD-ODESLA

Despite “Adjudicatory” in its name, IAD-ODESLA is limited to fact-finding, report preparation, and recommendations. It lacks authority to apply law authoritatively or render final decisions—functions reserved to judicial or duly delegated quasi-judicial bodies.

Non-Encroachment on Ombudsman’s Jurisdiction

The Ombudsman’s primary jurisdiction applies to crimi

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