Reorganizing Ministry of Local Government

Declaration of policy and purpose

The state must guarantee and promote the autonomy of local government units—especially barangays—to ensure their fullest development as self-reliant communities (Section 1).
The national government must provide administrative machinery and leadership to foster the establishment of progressive and responsible local governments (Section 1).

Renaming and transferring community development

The Ministry of Local Government and Community Development is renamed as the Ministry of Local Government (Section 2).
The community development function of the former Ministry is transferred to the Ministry of Human Settlements, together with the appropriate records of the Bureau of Community Development (Section 2).
The transfer is made without prejudice to a realignment of functions of agencies and corporations under the Ministry of Human Settlements to prevent duplication of functions (Section 2).
The Bureau of Community Development is renamed as the Bureau of Local Government Development (Section 2).
Appropriations, equipment, property, and staff personnel of the Bureau remain with the Ministry of Local Government (Section 2).
Field officers and personnel at the regional, provincial, city, municipal, and barangay levels of the former Ministry are retained by the Ministry of Local Government, but their position designations and job descriptions must be realigned or revised in coordination with the Office of Budget and Management (Section 2).

Organization and internal structure

The Minister of Local Government exercises the powers and functions of the Ministry (Section 3).
The Minister is assisted by Deputy Ministers appointed by the President (Section 3).
The Minister must determine and assign functional areas of responsibility for Deputy Ministers when there is more than one Deputy Minister (Section 3).
Responsibility delineation must cover substantive functions and operations, and no Deputy Minister may be assigned primarily administrative matters (Section 3).
The Ministry proper consists of the Office of the Minister (with all existing regular and special units), plus a Planning Service, Financial Management Service, Administrative Service, and Legal Service (Section 3).
The Ministry’s regional offices must be organized under Presidential Decree No. 1 (Integrated Reorganization Plan), as amended (Section 3).
The Ministry has two (2) bureaus: the Bureau of Local Government Development and the Bureau of Local Government Supervision, and it exercises supervision and control over them (Section 3).

Core functions of the Ministry

The Ministry performs both development and regulatory functions (Section 4).
The Ministry must develop capability of local government officials and strengthen local governments’ administrative capability for greater local autonomy (Section 4).
The Ministry assists the President in exercising general supervision over all local governments (Section 4).
The Ministry assists in the administration of Katarungang Pambarangay (barangay justice) (Section 4).
The Ministry administers training, research, technical and financial assistance programs, and local government participation to improve local government management (Section 4).
The Ministry performs other functions provided by law (Section 4).
Specific functions include:
- Developing capability of local government officials for development (Section 4).
- Strengthening local government units to perform functions under conditions of greater autonomy and to carry out development programs (Section 4).
- Assisting the President in general supervision over local government (Section 4).
- Assisting in the administration of Katarungang Pambarangay (Section 4).
- Administering training, research, technical, and financial assistance programs and local government participation (Section 4).

Functions of Bureau of Local Government Development

The Bureau of Local Government Development formulates programs and undertakes research to develop the capability of local government officials in managing local affairs (Section 6).
The Bureau provides technical assistance to enhance local government administrative and fiscal capabilities in financing and delivering local public services (Section 6).
The Bureau formulates and administers training programs for local government officials and personnel (Section 6).
The Bureau assists local governments in formulation, implementation, and evaluation of local government plans (Section 6).
The Bureau initiates in-depth studies and develops models and standards serving as the basis for formulating local government policies (Section 6).
The Bureau formulates, develops, and periodically evaluates policies, plans, and strategies for technical assistance programs intended to enhance administrative capacity of local government units (Section 6).
The Bureau provides consultation and advice to improve local government management, including preparation of manuals and primers on specific areas of local government administration (Section 6).
The Bureau establishes and administers special incentive funds for local development and provides financial assistance to local government institutions or associations (Section 6).
The Bureau prescribes procedures and guidelines for implementing grant-in-aid and self-help assistance projects (Section 6).
The Bureau performs other functions provided by law (Section 6).

Functions of Bureau of Local Government Supervision

The Bureau of Local Government Supervision (renamed from the existing Bureau of Local Government) advises and assists the Minister regarding the President’s exercise of general supervision over local governments (Section 7).
In particular, it addresses:
- Implementation of laws and policies concerning local governments and their personnel (Section 7).
- Review of local development plans and use of local development funds (Section 7).
- Extension of financial assistance and budgetary aid to local government, equitable distribution of funds and obligations among local government units (Section 7).
- Expropriation and other forms of acquisition of lands, nominations ad interim appointments of local officials, and related matters (Section 7).
The Bureau formulates guidelines for and assists in implementation of laws governing local government, local development plans, and use of local funds (Section 7).
The Bureau exercises technical supervision on behalf of the Minister over local government program activities at the regional, provincial, city, municipal, and barangay levels (Section 7).
The Bureau performs other functions provided by law or assigned to it by the Minister (Section 7).

Agencies, offices, and operational linkage

Agencies and offices under administrative supervision of, attached to, or assisted by the Ministry remain under the Ministry (Section 8).
The following are listed as under such administrative supervision:
- National Secretariat Paglilingkod sa Bagong Lipunan (Section 8).
- Katipunan ng mga Sanggunian National Secretariat and the Pambansang Katipunan ng mga Punong Bayan sa Pilipinas Office (Section 8).
- Inter-Agency Committee for National Government Aid to Local Government Units (Section 8).
- Joint Commission on Local Government Personnel Administration Secretariat (Section 8).
- Philippine Gamefowl Commission (Section 8).
- Management Information Systems Office (Section 8).
- Barangay Brigades Development Program Office (Section 8).
- Lupong Tagapagpaganap Secretariat (Section 8).
- Rural Roads Program and Rural Roads Improvement Program (Section 8).
- Barangay Water Program (Section 8).
- Rural Service Center (Section 8).
- Barangay Roads Development Program Office and National Barangay Operations Office (Section 8).
- Magalang-Angat Task Force Development Project (Section 8).
The Barangay National Coordinating and Executive Secretariat (BNCES) is converted into the Operations Monitoring and Support Office (Section 9).
The Operations Monitoring and Support Office must provide linkage between staff and line offices of the Ministry during planning and implementation of programs, projects, and activities (Section 9).

Minister’s authority and staffing consequences

The Minister is authorized to issue orders, rules, and regulations necessary to implement the Executive Order, provided approval is obtained from the Office of Budget and Management relative to:
- the new staffing pattern including appropriate salary rates,
- the organizational structure at divisional and lower levels, and
- the realignment of existing appropriations (Section 10).
The Minister may appoint qualified personnel of bureaus, agencies, and offices affected by the reorganization to appropriate positions in the Ministry (Section 10).
Personnel not so appointed are deemed laid off (Section 10).

Repeal, separability, and effectivity

All laws, orders, proclamations, rules, and regulations, or parts thereof, inconsistent with the Executive Order’s provisions are repealed or modified accordingly (Section 11).
Any unconstitutional portion does not nullify the remaining provisions if the remaining portion can still stand and be given effect to accomplish the Executive Order’s objectives (Section 12).
The Executive Order takes effect immediately (Section 13).