WHEREAS, it is the policy to promote simplicity, economy, and efficiency in the government to enable it to pursue programs consistent with national goals for accelerated social and economic development, and to improve upon the services of the government in the transaction of the public business;

WHEREAS, rapidly changing conditions, both locally and abroad, call for prompt and responsive organizational flexibility in government;

WHEREAS, the President of the Philippines has been given continuing authority to reorganize the National Government under Presidential Decree No. 1416;

WHEREAS, it would be desirable to further clarify and elaborate upon the scope and nature of the exercise of such authority, including relevant guidelines and standards;

WHEREAS, for these reasons it would be necessary to accordingly amend Presidential Decree No. 1416;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and ordain:

SECTION 1.  Paragraph 1 of Presidential Decree No. 1416 is hereby amended to read as follows:

“1. The President of the Philippines shall have continuing authority to reorganize the National Government. In exercising this authority, the President shall be guided by generally acceptable principles of good government and responsive national development, including but not limited to the following guidelines for a more efficient, effective, economical and development-oriented governmental framework:

(a) More effective planning, implementation, and review functions;

(b) Greater decentralization and responsiveness in the decision-making process;

(c) Further minimization, if not elimination, of duplication or overlapping of purposes, functions, activities, and programs;

(d) Further development of as standardized as possible ministerial, sub-ministerial and corporate organizational structures;

(e) Further development of the regionalization process; and

(f) Further rationalization of the functions of and administrative relationship among government entities.

“For purposes of this Decree, the coverage of the continuing authority of the President to reorganize shall be interpreted to encompass all agencies, entities, instrumentalities, and units of the National Government, including all government-owned or controlled corporations, as well as the entire range of the powers, functions, authorities, administrative relationships, and related aspects pertaining to these agencies, entities, instrumentalities, and units.”

SEC. 2.  Paragraph 2 of Presidential Decree No. 1416 is hereby amended to provide for additional sub-paragraphs, as follows:

“f. Create, abolish, group, consolidate, merge, or integrate entities, agencies, instrumentalities, and units of the National Government, as well as expand, amend, change, or otherwise modify their powers, functions and authorities, including, with respect to government-owned or controlled corporations, their corporate life, capitalization, and other relevant aspects of their charters.”

“g. Take such other related actions as may be necessary to carry out the purposes and objectives of this Decree.”

SEC. 3.  A new Paragraph, as Paragraph 3, is inserted in Presidential Decree No. 1416 to read as follows:

“3. Executive Orders as may be issued by the President pursuant to this Decree shall have the effect of repealing, amending or modifying accordingly all laws, decrees, charters, executive orders, administrative orders, proclamations, rules and regulations or parts thereof that are in conflict with such Executive Orders.”

SEC. 4.  Repealing Clause. All laws, decrees, charters, executive orders, administrative orders, proclamations, rules and regulations or parts thereof that are in conflict with this Decree are hereby repealed or modified accordingly.

SEC. 5.  Effectivity. This Decree shall take effect immediately.

Done in the City of Manila, this 15th of January, in the year of Our Lord, nineteen hundred and eighty-one.

(Sgd.) FERDINAND E. MARCOS
President of the Philippines

By the President:

(Sgd.) JUAN C. TUVERA
Presidential Executive Assistant