EO 112: Reorganizing Dept. of National Defense Functions

Legal basis and cited laws

EO 112 is anchored on Section 15, Chapter I, Title VIII, Book IV of Executive Order No. 292 (Revised Administrative Code of 1987), which mandates the DND to maximize effectiveness for guarding against external and internal threats and to provide support for social and economic development.
EO 112 is also based on Section 20, Chapter 7, Title I, Book III of Executive Order No. 292, empowering the President to exercise vested powers provided by law.
EO 112 invokes Section 77 of RA 8745 (FY 1999 General Appropriations Act), authorizing the President to direct changes in organization and key positions in any department, bureau, or agency.
EO 112 references Section I.XLVIII of RA 8745 (1999 GAA), which provides for an Organizational Fund (OAF) for the Department of National Defense under the Office of the Secretary.

Mandate and policy direction

Section 1 mandates the DND to maximize its effectiveness for guarding against external and internal threats to national peace and security.
Section 1 directs the DND to promote the welfare of soldiers and veterans.
Section 1 requires the DND to provide support for social and economic development.
EO 112 is intended to refocus DND organizational units and operational structures to improve efficiency, effectiveness, and responsiveness to emerging defense concerns (as reflected in the Whereas clauses).

Roles of the Department of National Defense

Section 2(a) makes the DND the lead line agency and authority in formulating national defense-security policies, plans, and programs on defense and security.
Section 2(b) makes the DND the monitor and evaluator of implementation of defense and security policies, plans, and programs.
Section 2(c) makes the DND the administrator of National Disaster Coordinating Council (NDCC) special funds intended to assist Local Government Units (LGUs), communities, families, and citizens affected by calamities and/or disasters.
Section 2(d) designates the DND as an innovator of new strategies on defense and security issues, including pursuant to the national defense plan.
Section 2(e) makes the DND an enabler of NGAs, LGUs, GOCCs, NGOs, POs, and other civil society members in implementing civil defense and socio-economic development programs requiring defense and military assistance.
Section 2(f) requires the DND to advocate for social and economic development concerns including resource and environmental protection and preservation up to the Exclusive Economic Zone (EEZ), emergency preparedness and mitigation, soldiers and veterans’ welfare, and other similar concerns.
Section 2(g) makes the DND the implementor of the country’s international defense and security commitments under defense and security treaties, cooperation agreements, international covenants, protocols, and similar arrangements.

Functional focus and operational duties

Section 3(a) requires the DND to formulate, develop, and promote defense policies, plans, programs, and projects, in coordination with the NSC, in the field of security.
Section 3(b) requires the DND to direct, plan, and supervise the national defense program.
Section 3(c) empowers the DND to conduct researches and studies and adopt policies to ensure effective implementation of the national defense plan and related programs and projects.
Section 3(d) requires the DND to exercise supervision and control over the Armed Forces of the Philippines, Government Arsenal, Office of Civil Defense, Philippine Veterans Affairs Office, and the National Defense College of the Philippines.
Section 3(e) requires the DND to supervise the setting of standards, accreditation, and furnishing of technical assistance to institutions, organizations, corporations, and persons engaged in emergency management or related development activities requiring defense and military assistance.
Section 3(f) requires the DND to advocate for and disseminate information on defense-security issues.
Section 3(g) requires the DND to provide augmentation funding and resources to partners in civil defense activities.
Section 3(h) requires, in coordination with the DFA, implementation, promotion, and maintenance of bilateral and multilateral linkages for defense and military cooperation initiated, negotiated, or concluded by the DFA.
Section 3(i) directs the DND to perform other functions as provided by law.

Rationalization, reporting lines, and staffing plan

Section 4 requires the DND to prepare a Rationalization and Organizational Adjustment Plan (ROAP) to effect efficiency and effectiveness through functional and operational redirection.
Section 4 makes the ROAP the basis of operational and organizational adjustments, and it must include:
- (a) clustering of bureaus and offices to ensure accountability;
- (b) establishment of a reporting system with clear lines of authority among DND offices and the Office of the Secretary of National Defense;
- (c) realignment of offices delineating responsibilities based on functional categories (operations; policy and strategic planning; and administration and finance) in accordance with existing rules and regulations; and
- (d) rationalization of the Department’s staffing pattern, including a rationalization and/or integration plan for occupants of casual positions.
Section 4 requires submission of the ROAP to the Department of Budget and Management (DBM) for approval prior to implementation by the DND Secretary.
Section 4 authorizes the DBM to create key positions and/or upgrade existing positions if found necessary.

Personnel redeployment and funding limits

Section 5 directs that, as necessary, existing DND personnel must be redeployed in accordance with ROAP requirements and existing civil service laws and rules.
Section 5 requires that redeployment must not result in diminution in the rank and compensation of affected personnel.
Section 6 provides that financial resources required to implement the ROAP must be taken from funds available in the DND.
Section 6 imposes a cost cap: the total cost of the approved staffing pattern must not exceed the authorized appropriations of the agency for Personal Services, as well as the outlay for Personal Services under the existing Organizational Adjustment Fund (OAF) of RA 8745 (FY 1999 General Appropriations Act).

Repeal, separability, and implementation effect

Section 7 rescinds or modifies all other Executive Orders and issuances that are inconsistent with EO 112.
Section 8 provides separability: if any provision of EO 112 is held invalid, other provisions not affected remain valid and binding.
Section 9 states that EO 112 takes effect immediately upon adoption.