WHEREAS, under the New Republic, national economic development shall be pursued with renewed vigor and greater determination;

WHEREAS, the Ministry of Local Government and Community Development shall be more effective instrument of development if it specializes in the functions specifically relating to local government development and supervision which will avoid overlapping and duplication of functions with other Ministries;

WHEREAS, the adoption by the government of the Kilusang Kabuhayan at Kaunlaran as a priority program reinforces the approach taken by the Ministry of Human Settlements in the performance of its functions namely, the strategy self-help and emphasize the need for a more integrated approach to community development; 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. 1416, as amended, do hereby order and ordain:

SECTION I. Declaration of Policy. - The state shall guarantee and promote the autonomy of local government units, especially the barangay, to ensure their fullest development as self-reliant communities. For this purpose, the national government shall provide the administrative machinery and leadership which shall foster the establishment of progressive and responsible local governments.

SEC. 2. Renaming of the Ministry of Local Government and Community Development as Ministry of Local Government. - The Ministry of Local Government and Community Development is hereby renamed as Ministry of Local Government. The community development function of the Ministry of Local Government and Community Development as well as the appropriate records of the Bureau of Community Development are hereby transferred to the Ministry of Human Settlements. This shall be without prejudice to a realignment of the functions of the agencies and corporations under the Ministry of Human Settlements to prevent duplication of functions among them and the Ministry of Human Settlements proper.

The Bureau of Community Development is hereby renamed Bureau of Local Government Development, and its applicable appropriations, equipment, property and staff personnel shall remain with the Ministry of Local Government. Likewise, all the field officers and personnel in the regional, provincial, city, municipal and barangay levels of the Ministry of Local Government and Community Development shall be retained by the Ministry of Local Government, provided that their position designations and job descriptions shall be realigned or revised in accordance with the new program thrusts of the Ministry of Local Government in coordination with the Office of Budget and Management.

SEC. 3. Organization. - (1) The authority and responsibility for the exercise of the powers and the discharge of the functions of the Ministry of Local Government, hereinafter referred to as the Ministry, shall be vested in the Minister of Local Government, hereinafter referred to as the Minister. He shall be assisted by such Deputy Ministers as may be appointed by the President. The Minister is authorized to determine and assign the respective functional areas of responsibility of the Deputy Ministers, should there be more than one: Provided, That such delineation of responsibilities shall cover the substantive functions and operations of the Ministry; and Provided, Further, That no Deputy Minister shall be assigned primarily administrative matters.

(2) The Ministry proper shall be composed of the immediate Office of the Minister including all the existing regular and special units under it, a Planning Service, a Financial Management Service, an Administrative Service, and a Legal Service.

(3) The Ministry shall have regional offices which shall be organized in accordance with Presidential Decree No. 1 (Integrated Reorganization Plan) as amended.

(4) The Ministry shall have two (2) bureaus, the Bureau of Local Government Development and the Bureau of Local Government Supervision. It shall exercise supervision and control over them.

SEC. 4. Functions of the Ministry. - The Ministry of Local Government shall perform development and regulatory functions. It shall develop the capability of local government officials and strengthen the administrative capability of local government units. It shall assist the President in exercising his power and general supervision over all local governments. It shall also assist in the administration of the Katarungang Pambarangay (barangay justice). The Ministry shall be responsible for the following functions:

(1) Develop the capability of local government officials for development;

(2) Strengthen the capability of local government units so that they can perform their functions under conditions of greater local autonomy and develop increasing capacity to govern and carry out development programs;

(3) Assist the President in exercising general supervision over local government;

(4) Assist in the administration of the Katarungang Pambarangay (barangay justice);

(5) Administer training, research, technical and financial assistance programs and local government participation to improve the management of local government units;

(6) Perform other functions provided by law.

SEC. 6. Functions of the Bureau of Local Government Development. - The Bureau shall be responsible for the following functions:

(1) Formulate programs and undertake research designed to develop the capability of local government officials in managing local affairs;

(2) Provide technical assistance designed to enhance the administrative and fiscal capabilities of local government in the financing and delivery of local public services;

(3) Formulate and administer training programs for local government officials and personnel;

(4) Assist local governments in the formulation, implementation and evaluation of local governments plans;

(5) Initiate and conduct in-depth studies and develop models and standards which shall serve as basis for formulating local government policies;

(6) Formulate, develop and periodically evaluate policies, plans and strategies relative to the administration of technical assistance programs intended to enhance the administrative capacity of local government units;

(7) Provide consultation and advice to improve local government management, including the preparation of manuals and primers on specific areas of local government administration;

(8) Establish and administer special incentive funds for local development as well as provide financial assistance to local government institutions or associations;

(9) Prescribe procedures and guidelines in the implementation of grant-in-aid and self-help assistance projects;

(10) Perform other functions provided by law.

SEC. 7. Functions of the Bureau of Local Government Supervision. - The existing Bureau of Local Government is hereby renamed Bureau of Local Government Supervision, and shall be responsible for the following functions:

(1) Advise and assist the Minister in connection with the exercise of the President of his power of general supervision over local governments, particularly among others with respect to: the implementation of laws and policies concerning local governments and their personnel; the review of local development plans and use of local development funds; the extension of financial assistance and budgetary aid to local government equitable; distribution of funds and obligations among local government units; expropriation and other forms of acquisition of lands, nominations ad interim appointments of local officials and related matters;

(2) Formulate guidelines for and assist in the implementation of laws governing local government, local development plans and use of local funds;

(3) Exercise technical supervision on behalf of the Minister over local government program activities at the regional, provincial, city, municipal and barangay levels;

(4) Perform other functions provided by law or assigned to it by the Minister.

SEC. 8. Agencies and Offices under Administrative Supervision. - All agencies and offices under the administrative supervision of, or attached to and assisted by the Ministry shall remain under the Ministry, including the following:

1. National Secretariat Paglilingkod sa Bagong Lipunan

2. Katipunan ng mga Sanggunian National Secretariat and the Pambansang Katipunan ng mga Punong Bayan sa Pilipinas Office

3. Inter-Agency Committee for National Government Aid to Local Government Units

4. Joint Commission on Local Government Personnel Administration Secretariat

5. Philippine Gamefowl Commission

6. Management Information Systems Office

7. Barangay Brigades Development Program Office

8. Lupong Tagapagpaganap Secretariat

9. Rural Roads Program

10. Rural Roads Improvement Program

11. Barangay Water Program

12. Rural Service Center

13. Barangay Roads Development Program Office

14. National Barangay Operations Office

15. Magalang-Angat Task Force Development Project

SEC. 9. Conversion of Barangay National Coordinating Executive Secretariat into the Operations Monitoring and Support Office. - The Barangay National Coordinating and Executive Secretariat (BNCES) is hereby converted into the Operations Monitoring and Support Office which shall provide an effective linkage between the staff and line offices of the Ministry as it pertains to the planning and implementation phases of its programs, projects and activities.

SEC. 10. Authority of the Minister of Local Government. - The Minister is hereby authorized to issue such orders, rules and regulations as may be necessary to implement the provisions of this Executive Order; provided, that approval of the Office of Budget and Management is obtained relative to the new staffing pattern including appropriate salary rates, the organizational structure at divisional and lower levels, and the realignment of existing appropriations. The Minister may appoint qualified personnel of the bureaus, agencies and offices of the Ministry affected by the reorganization to appropriate positions in the Ministry, and those not so appointed are deemed laid off.

SEC. 11. Repealing Clause. - All laws, orders, proclamations, rules and regulations, or parts thereof, which are inconsistent with any of the provisions of the Executive Order are hereby repealed or modified accordingly.

SEC. 12. Separability Clause. - Any portion of 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 portion can still stand and be given effect in their entirety to accomplish the objectives of this Executive Order.

SEC. 13. Effectivity Clause. - This Executive Order shall take effect immediately.

Done in the City of Manila, this 28th day of February, in the year of Our Lord, Nineteen Hundred and Eighty-Two.


By the President:

(SGD.) JOAQUIN T. VENUS, JR.
Deputy Presidential Executive Assistant