WHEREAS, the Filipino people have ratified through a plebiscite held on April 7, 1981 the amendments to the Constitution of the Republic of the Philippines;

WHEREAS, there is a need to institute substantive changes at the highest level of the executive structure of the government to conform with the aforesaid constitutional amendments;

WHEREAS, it is necessary to delineate and clarify the functions and relationships of critical positions and units at the highest level of the executive structure of the government for more efficient administration of the government ™s policies and programs;

WHEREAS, under Presidential Decree No. 830, the President is specifically granted continuing authority to reorganize his Office; and

WHEREAS, under Presidential Decree No. 1416 as amended, the President is empowered to undertake such organizational and related improvements as may be appropriate in the light of changing circumstances and new developments.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution and the authority vested in me by Presidential Decree No. 830 and Presidential Decree No. 1416 as amended, do hereby order and ordain:

A. THE OFFICE OF THE PRESIDENT

SECTION 1. The Office of the President shall consist of the Private Offices, the system of Presidential Assistants, the Presidential Advisers, and the Presidential Security Command. In addition, the agencies and other entities under the Office of the President are those enumerated in Sections 7 to 10 hereof.

SECTION 2. The Private Offices shall include the Private Secretary ™s Office, Social Secretary ™s Office, Malaca ang Household Office, and Presidential Museum.

SECTION 3. The system of Presidential Assistants shall be headed by a Presidential Executive Assistant assisted by such Deputy Presidential Executive Assistants and other subordinate Presidential Assistants as may be necessary. It shall also include the following units:

(1) Administrative Office
(2) Finance Office
(3) Legal Office
(4) Malaca ang Clinic
(5) Malaca ang Public Assistance Center
(6) Presidential Appointments Office
(7) Presidential Management Staff
(8) Protocol Office
(9) Presidential Documents Office
(10) Political Affairs Office
(11) Engineer ™s Office

The Administrative Office shall be organized from existing components, including applicable personnel, of the Administrative Office, Accounting Office, and Records Office of the present Office of the President.

The Finance Office and the Legal Office shall be organized from existing components, including applicable personnel, of the Finance Office and the Legal Office, respectively, of the present Office of the President.

The Malaca ang Public Assistance Center shall be created from the merger of the present Complaints and Investigation Office and the Malaca ang Assistance Center.

The other units above-mentioned shall consist of the same units in the present Office of the President.

The President may create such additional units in the Office of the President as he may deem necessary.

SECTION 4. There shall be a Presidential Executive Assistant, with the rank of minister, who shall coordinate and supervise the system of Presidential Assistants under him as provided for in Section 3; serve as the administrative link between the Office of the President and the various other offices of the Government; and perform such other functions as the President may direct. The Presidential Executive Assistant shall prepare and submit to the President for approval the system of administrative relationships within the Office of the President.

SECTION 5. The Presidential Advisers shall provide direct or personal advisory or consultative services to the President in such fields and under such conditions as the President may determine.

SECTION 6. The Presidential Security Command of the Armed Forces of the Philippines shall provide for the security of the President and his family, his Office, and perform other related duties. The Presidential Security Command shall include the Presidential Aides Office, Presidential Security Unit, Provost Marshal ™s Office, Malaca ang Command Center and the General Communications Support Unit.

SECTION 7. The following bodies and entities shall continue to be under the chairmanship of the President:

(1) Council of Leaders
(2) Foreign Policy Council
(3) General Military Council
(4) National Security Council
(5) National Economic and Development Authority
(6) Special Presidential Reorganization Committee

SECTION 8. The following entities shall continue to be directly under the President:

(1) National Intelligence and Security Authority
(2) Office of the Presidential Assistant on National Minorities
(3) President ™s Center for Special Studies
(4) Presidential Commission on Reorganization

SECTION 9. The following entities shall continue to be under the administrative supervision of the Office of the President:

(1) Board of Energy
(2) National Manpower and Youth Council
(3) Philippine Racing Commission
(4) Task Force Anti-Gambling
(5) National Computer Center
(6) National Cartographic Authority
(7) Central Tender Board
(8) Games and Amusements Board

SECTION 10. The following entities shall continue to be attached to the Office of the President:

(1) Central Bank of the Philippines
(2) Pambansang Katipunan ng Kabataang Barangay ng Pilipinas
(3) Philippine Coconut Authority
(4) Philippine Sugar Commission

SECTION 11. The President shall exercise all the powers and functions as provided for by the Constitution. Specifically, he shall be the head of state and chief executive of the Republic, and shall have control of the ministries. In addition, in accordance with applicable laws, the President shall have the following powers and functions:

A. Powers and Functions as Head of State

1. Enter into contracts and agreements with other countries or international agencies; and

2. Mobilize citizens for national defense, and where necessary, extend the service of military personnel, recall to active duty any retired officer or enlisted man, take possession of vessels of Philippine registry for naval and military operation in times of war and other national emergency, and decide on the matter of detention of warlike vessels containing arms and ammunitions.

B. Executive Powers and Functions

1. Powers and Functions as Chief Executive

(1) Issue bonds or other securities to finance government projects, and endorse debentures for the government as primary obligor;

(2) Approve the denominations, dimensions, designs, inscriptions and other characteristics of notes, and the weight, fineness, designs, denominations and other characteristics of coins issued by the Central Bank; and modify the par value of the peso;

(3) Negotiate and approve the subscription of the Philippine government to the capital stock of any foreign financing or lending institution and domestic government-owned or controlled corporation or the increase thereof and approve the release of funds therefor;

(4) Certify labor disputes for compulsory arbitration in proper cases

(5) Make adjustments on all internal revenue taxes relative to rates, taxable base and classification of articles, under certain conditions;

(6) Increase, reduce or remove the existing protective rates of import duty, including any necessary change in classification of articles, subject to certain limitations;

(7) Subject export products under Title III of the Tariff and Customs Code, as amended, to higher or lower rates of duty, include additional products, excluded or exempt any product from such Title, or additionally subject any products with an export quota, subject to certain conditions;

(8) Approve projects of the government to be funded from foreign loans, credits or indebtedness contracted by the government;

(9) Approve the compromise or release by the Commission on Audit of certain claims of government agencies;

(10) Authorize government financial institutions to extend loans to government agencies or corporations;

(11) Approve alternative procedures in opening contract areas and in selecting the best offer for petroleum operations; and

(12) Offer the examination of the business affairs, administration and condition of any corporation.

2. Administrative Powers and Functions

(1) Create, abolish, group, coordinate, consolidate, merge or integrate ministries, bureaus, offices, agencies, instrumentalities and functions of the government; and transfer functions, appropriations, equipment, property, records and personnel from one ministry, bureau, office, agency or instrumentality to another;

(2) Standardize salaries, materials and equipment;

(3) Remove or otherwise discipline officers of the government as may be provided by law; and

(4) Commute or remove administrative penalties or disabilities upon officials or employees in disciplinary cases.

3. Other Powers and Functions

(1) Determine, designate and reserve any land of the public domain of any classification for specific purposes, and withdraw or exclude any portion or portions therefrom;

(2) Approve the acquisition, transfer, encumbrance, lease or sale, and dispose or convey title to lands and other properties of the government;

(3) Issue executive orders and proclamations, as well as rules, regulations or instructions to implement the laws; and modify or revoke the same;

(4) Declare, suspend, and terminate a state of national emergency; and

(5) Proclaims special elections.

C. Residual Powers and Functions

1. Exercise such other powers and functions vested in the President which are provided for under the laws of the land and which are not specifically enumerated above, or which are not delegated by the President in accordance with law, unless the Batasang Pambansa provides otherwise.

SECTION 12. All references to œThe President/Prime Minister  or to œThe President and Prime Minister  in existing laws, Executive Orders, and other issuances shall be construed to refer to the President, except as may otherwise be determined by the President, or by applicable law.

B. THE OFFICE OF THE PRIME MINISTER

SECTION 13. The Office of the Prime Minister shall consist of the common staff support system as hereinafter provided for, and the agencies under or attached to the said Office.

The common staff support system shall refer to such staff or units as may be necessary which shall provide direct or personal assistance to the Prime Minister, as well as those which shall provide him with technical, administrative or general services. The latter shall include the Administrative Office, Legal Office, Legislative Office, Accounting Office, Finance Office, Cabinet Secretariat, and Records Office, and shall absorb the equivalent units or components thereof in the present Office of the President.

SECTION 14. The Prime Minister shall be assisted, whenever necessary, by a Deputy Prime Minister as may be determined by the President.

The Prime Minister shall recommend for appointment by the President a Secretary-General with the rank of deputy minister who shall supervise and coordinate the common staff support system of the Office of the Prime Minister. The Secretary-General and the Office of the Prime Minister shall also provide the necessary staff support to the Executive Committee.

Nothing in this Executive Order shall be construed as prohibiting the Prime Minister from holding a cabinet position with portfolio in a concurrent capacity.

SECTION 15. The Prime Minister shall assume the chairmanship of the National Council on Integrated Area Development.

The Prime Minister shall serve as ex-officio Vice-Chairman of the National Economic and Development Authority, and as member of the boards, agencies, and entities where the President is Chairman, without prejudice to his being designated as Vice-Chairman thereof by the President.

SECTION 16. The entities under the administrative supervision of the Prime Minister are the following:

(1) General Services Administration
(2) Philippine Atomic Energy Commission
(3) Presidential Committee to Study Government Corporations which is hereby renamed Committee to Study Government Corporations

The President, motu propio, or upon the recommendation of the Prime Minister, may make changes in the attachments of corporations and other entities for purposes of policy and program coordination.

SECTION 17. The Prime Minister shall exercise all the powers and functions as provided for under the Constitution and the laws, and as may be delegated by the President pursuant to Section 19 hereof. Specifically, he shall be the head of the Cabinet and the chairman of the Executive Committee, and shall exercise supervision of all ministries.

SECTION 18. The Prime Minister shall submit to the Batasang Pambansa within thirty days from the opening of each regular session, as the basis of the general appropriations bill, a budget of receipts based on existing and proposed revenue measures, and of expenditures, after approval by the President. The Ministry of the Budget shall prepare such budget in coordination and consultation with the Prime Minister.

C. OPERATING RELATIONSHIPS

SECTION 19. As a general principle, the President shall be concerned principally with major policy and decision-making processes. The Prime Minister shall be responsible for the day-to-day supervision and the details of administration of the government. Matters elevated for Presidential action shall be those of such national importance or significance as would require decision of the President himself, and which preferably have been first coursed through the Prime Minister as such or as head of the Executive Committee or the Cabinet for appropriate recommendation. Initially, the Prime Minister and the Executive Committee shall exercise recommendatory powers with respect to matters requiring Presidential decision, without prejudice to exercising such specific powers and functions as may be delegated to him by the President. Initially, the Executive Committee shall function along the lines and procedures established for the Cabinet Standing Committee.

Presidential control over ministries includes the authority to act directly on any specific function entrusted to the ministries; direct the performance of a duty; restrain the commission of acts; review, approve, reverse or modify acts and decisions of ministries; determine priorities in the execution of plans and programs; and prescribe standards, guidelines, plans and programs.

Prime Ministerial supervision of ministries refers to the authority to oversee the operations of the ministries and to insure that they are managed economically, efficiently, and effectively in accordance with established policy; to coordinate and harmonize inter-ministerial operation and activities; and to take such action as may be necessary for the proper performance of official functions. The Prime Ministerial supervision herein defined shall be without prejudice to the exercise of such powers and functions as may be delegated to the Prime Minister by the President.

SECTION 20. Nothing herein shall be construed as inhibiting or delimiting any of the President ™s powers, including the authority to direct and institute the conduct of studies on any issue for submission of appropriate recommendation to him, or to institute measures for directly handling matters or administering agencies which he deems vital enough to warrant his personal attention, or to review decisions of the Prime Minister, the Executive Committee, or the Cabinet.

In addition to the powers of the Prime Minister provided for herein, the Prime Minister shall submit to the President for approval a system for the delegation of Presidential authority, as well as guidelines on matters which should be elevated for Presidential action and those that could normally be finally acted upon by the Prime Minister.

The various ministries shall have the authority to fully exercise their decision making powers and functions at their level, and to act on all matters affecting solely their substantive operations.

SECTION 21. The Prime Minister shall have the authority to act on all matters delegated to him by the President in accordance with law without having to indicate in the proper document the phrase œBy authority of the President .

D. GENERAL AND TRANSITORY PROVISIONS

SECTION 22. The President shall issue from time to time such directives as may be necessary for the implementation of this Executive Order. Any transfer of functions or units pursuant to this Executive Order shall include applicable appropriations, records, equipment, property and such personnel as may be necessary. Assistants to the President and to the Prime Minister are personal to the President or Prime Minister as the case may be, and shall serve only at their pleasure: provided, however, that this concept of Assistants for the President or Prime Minister shall not apply to the career Staff Directors in the present Office of the President.

SECTION 23. The various agencies now under the Office of the President, including those whose enabling charters did not explicitly specify their respective organizational locations, are hereby transferred, as follows:

	Agency	Ministry
(1)	Alcohol Commission	Ministry of Energy
(2)	Boy Scouts of the Philippines	Ministry of Education and Culture
(3)	Commission on Filipinos Overseas	Ministry of Foreign Affairs
(4)	Commission on Population	National Economic and Development Authority
(5)	Commission on the Settlement of Land Problems	Ministry of Justice
(6)	Committee on Transport Cooperatives	Ministry of Transportation and Communications
(7)	Council for the Welfare of Children	Ministry of Social Services and Development
(8)	Cultural Center of the Philippines	Ministry of Human Settlements
(9)	Environmental Center of the Philippines	Ministry of Human Settlements
(10)	Export Credit Corporation	Ministry of Finance
(11)	Garments and Textile Export Board	Ministry of Trade
(12)	Gintong Alay Foundation	Ministry of Youth and Sports Development
(13)	Girl Scouts of the Philippines	Ministry of Education and Culture
(14)	Kalinga Special Development Region	National Economic and Development Authority
(15)	Museum of Philippine Costume	Ministry of Human Settlements
(16)	National Artists Awards Committee	Ministry of Human Settlements
(17)	National Board for Teachers	Ministry of Education and Culture
(18)	National Census Coordinating Board	National Economic and Development Authority
(19)	National Coal Authority	Ministry of Energy
(20)	National Commission Concerning Disabled Persons	Ministry of Social Services and Development
(21)	National Commission on the Role of Filipino Women	Ministry of Human Settlements
(22)	National Committee on Anti-Organized Crime	Ministry of National Defense
(23)	National Committee on Geological Sciences	Ministry of Natural Resources
(24)	National Dendro Development Corporation	Ministry of Human Settlements
(25)	National Disaster Coordinating Council	Ministry of National Defense
(26)	National Electrification Administration	Ministry of Human Settlements
(27)	National Fire Society Council	Ministry of National Defense
(28	National Food Authority	Ministry of Human Settlements
(29)	National Media Production Center	Ministry of Public Information
(30)	National Nutrition Council	Ministry of Agriculture
(31)	National Parks Development Committee	Ministry of Human Settlements
(32)	National Social Action Council	Ministry of Education and Culture
(33)	National Stud Farm	Ministry of Education and Culture
(34)	National Wages Council	Ministry of Labor and Employment
(35)	National Youth and Sports Development Foundation of the Philippines	Ministry of Youth and Sports Development
(36)	Nayong Pilipino Foundation	Ministry of Human Settlements
(37)	Pagkain ng Bayan	Ministry of Human Settlements
(38)	Philippine Amusements and Gaming Corporation	Ministry of Finance
(39)	Philippine Crop Insurance Corporation	Ministry of Finance
(40)	Philippine Gamefowl Commission	Ministry of Local Government and Community Development
(41)	Philippine Heart Center for Asia	Ministry of Human Settlements
(42)	Philippine National Lines	Ministry of Transportation and Communications
(43)	Philippine National Red Cross	Ministry of Social Services and Development
(44)	Philippine National Volunteer Service Coordinating Agency	National Economic and Development Authority
(45)	Presidential Committee on the Rehabilitation Program for Moro National Liberation Front (MNLF) which is hereby renamed National Committee on the Rehabilitation Program for Moro National Liberation Front (MNLF)	Ministry of Human Settlements
(46)	Presidential Council for Forest Ecosystem Management which is hereby renamed National Council for Forest Ecosystem Management	Ministry of Natural Resources
(47)	Procurement Service Council	Ministry of the Budget
(48)	Public Estates Authority	National Economic and Development Authority
(49)	Rural Waterworks Development Corporation	Ministry of Human Settlements
(50)	Sacobia Development Authority	Ministry of Human Settlements
(51)	Securities and Exchange Commission	Ministry of Finance
(52)	Task Force Pawikan Council	Ministry of Natural Resources
(53)	Toll Regulatory Board	Ministry of Transportation and Communications

SECTION 24. The President is hereby authorized to reconstitute the chairmanship or membership of any of the above agencies as may be necessary and whenever applicable as a result of the transfer of the agencies from the present Office of the President.

SECTION 25. The following agencies are abolished, and their functions, applicable appropriations, records, equipment, property, and such personnel as may be necessary are hereby transferred to the appropriate agencies of the government as shall be determined by the President:

(1) Consultative Council on Muslim Affairs
(2) Board of Liquidators
(3) Bonded Export Marketing Board
(4) Committee on Government Management Consultancy
(5) National Commission on Savings
(6) National Gaming Commission
(7) Philippine Coordinating Committee on the Asian Development Bank
(8) Presidential Action Committee on Food
(9) National Commission on Countryside Credit and Collection

The President shall promulgate the necessary issuances to provide for the implementing details to carry out this provision.

SECTION 26. All laws, decrees, orders, proclamations, rules, regulations, and issuances or parts thereof, which are inconsistent with any of the provisions of this Executive Order are hereby repealed or modified accordingly.

SECTION 27. Any portion or provision of this Executive Order that may be declared unconstitutional shall not have the effect of nullifying the other provisions thereof, provided that such remaining portions can still stand and be given effect in their entirety to accomplish the objectives of this Executive Order.

SECTION 28. This Executive Order shall take effect immediately.

DONE in the City of Manila, this twenty-seventh day of July, in the year of Our Lord, Nineteen Hundred and Eighty-One.

By the President:

(SGD.) JUAN C. TUVERA
Presidential Executive Assistant