Case Summary (G.R. No. L-6)
Key Dates
· February 19, 1996 – DOTC Memorandum Order No. 96-735 issued.
· March 13, 1996 – Mabalot’s petition for certiorari, prohibition, and preliminary relief filed.
· March 20, 1996 and April 8, 1996 – RTC issues TRO and preliminary injunction, respectively.
· January 29, 1997 – DOTC Department Order No. 97-1025 issued.
· March 31, 1999 – RTC renders decision declaring both orders void.
· February 27, 2002 – Supreme Court decision under review, applying the 1987 Constitution.
Applicable Law
· 1987 Constitution, Article VII (Executive reorganization), Article IX-B (Office Holders’ Prohibitions).
· Administrative Order No. 36 (September 23, 1987) – Mandates establishment of regional offices in CAR.
· Executive Order No. 220 (July 15, 1987) – Defines CAR territorial coverage.
· Executive Order No. 292 (Administrative Code of 1987), Section 17 (agency creation) and Section 20 (residual powers).
· Presidential Decree No. 1416, as amended by P.D. 1772 – Grants President continuing authority to reorganize.
· General Appropriations Acts (R.A. 7645, 8174, 8250) – Authorize organizational changes by the President.
Facts
The DOTC Secretary, relying on Administrative Order No. 36 and Executive Order No. 220, directed the LTFRB Central Office to transfer its regional functions to DOTC-CAR, to be performed by organic DOTC-CAR personnel under LTFRB supervision, pending creation of a regular LTFRB-CAR. Mabalot challenged both the February 1996 Memorandum Order and January 1997 Department Order in RTC, securing injunctive relief. The RTC ultimately invalidated both orders as unlawful exercises of legislative power and violative of constitutional prohibitions on dual office-holding.
Issue
Whether the DOTC Secretary validly reorganized executive functions by issuing Memorandum Order No. 96-735 and Department Order No. 97-1025, or whether such transfers usurped legislative power and breached constitutional office-holding prohibitions.
Supreme Court Ruling
The Supreme Court reversed and set aside the RTC decision, upholding the validity of both administrative orders.
Reasoning
- Under the 1987 Constitution, the President exercises control over executive departments and may reorganize them by authority of law.
- Administrative Order No. 36, issued by the President, unequivocally directed departmental heads to establish regional offices in CAR, thereby delegating authority to implement such creation to the DOTC Secretary.
- Presidential Decrees 1416 and 1772 remain operative, granting the President continuing authority to create, abolish, merge offices, and transfer functions. Cabinet secretaries act as the President’s alter ego in executing such directives.
- General Appropriations Acts contain express riders authorizing reorganization of executive agencies, presumptively constitutional absent explic
Case Syllabus (G.R. No. L-6)
Facts
- Jurisdiction: Supreme Court of the Philippines, En Banc, G.R. No. 138200, decided February 27, 2002; reported at 428 Phil. 154.
- Memorandum Order No. 96-735 (19 February 1996) issued by then DOTC Secretary Jesus B. Garcia, Jr., directing the transfer of LTFRB regional functions to the DOTC–CAR Regional Office pending creation of a regular regional franchising office.
- Organic personnel of DOTC–CAR were to perform LTFRB functions concurrently under direct supervision and control of LTFRB Central Office.
- Roberto Mabalot filed a petition for certiorari and prohibition (SCAC No. Q-96-26868) with prayer for preliminary injunction in RTC Quezon City, Branch 81, on 13 March 1996, challenging Memorandum Order No. 96-735 as illegal.
- RTC issued a temporary restraining order on 20 March 1996 and a writ of preliminary injunction on 8 April 1996; petitioner filed bond.
- Secretary Amado Lagdameo, Jr. answered on 25 April 1996.
- Department Order No. 97-1025 (29 January 1997) was thereafter issued, establishing DOTC–CAR as LTFRB Regional Office in CAR under LTFRB Central supervision; budgetary needs to be funded by DOTC until appropriations included in the GAA.
- RTC granted OSG’s motion to reopen hearing (18 February 1997) for introduction of DO 97-1025; respondent filed supplemental petition on 3 April 1997.
- Exhibits admitted over respondent’s objection; respondent’s supplemental petition and petitioner’s answer thereafter considered.
- RTC decision dated 31 March 1999 declared MO 96-735 and DO 97-1025 null and void for encroaching on legislative power and breaching appointive-office prohibitions; made preliminary injunction permanent.
Issue
- Whether Memorandum Order No. 96-735 and Department Order No. 97-1025 issued by the DOTC Secretary are valid administrative issuances or an unconstitutional usurpation of legislative power and impermissible holding of multiple offices.
Respondent’s Contentions
- Transfer of LTFRB regional powers to DOTC–CAR