An Act Authorizing the President of the Philippines, with the Help of a Commission on Reorganization, to Reorganize the Different Executive Departments, Bureaus, Offices, Agencies and Instrumentalities of the Government. Including Banking or Financial Institutions and Corporations Owned or Controlled by It, Subject to Certain Conditions and Limitations

REPUBLIC ACT No. 5435

An Act Authorizing the President of the Philippines, with the Help of a Commission on Reorganization, to Reorganize the Different Executive Departments, Bureaus, Offices, Agencies and Instrumentalities of the Government. Including Banking or Financial Institutions and Corporations Owned or Controlled by It, Subject to Certain Conditions and Limitations

Be it enacted by the Senate and House of Representatives of the Philippine Congress Assembled:

Section 1. Declaration of policy.— It is hereby declared to be the policy of Congress 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 the service in the transaction of the public business in the executive departments, bureaus, offices, commissions, boards, agencies and instrumentalities of the government, including banking or financial institutions and corporations owned or controlled by the government within the limits of their respective charters, except the Legislative and Judicial Departments, the General Auditing Office, the Commission on Elections and local governments, by:

Section 2. For the purpose of carrying out the policy set forth in Section One of this Act, there is hereby created a Commission on Reorganization to be constituted within ten days after the approval of this Act.

Section 3. To accomplish the objectives set forth in Section One of this Act, the Commission is further authorized:

The Commission shall study and investigate the present status of all government bureaus, departments, offices, agencies and instrumentalities of the Executive Branch of the Government, including government-owned or controlled corporations; Provided, However, That in the reorganization to be effected by this Act, no office or agency or function of government shall be made to continue beyond the period authorized by law or beyond the time when it would have terminated if the reorganization had not been made.

Section 4. The Commission shall submit an integrated reorganization plan to the President not later than December 31, 1969, and the President shall, within forty days after the opening of the next regular session, submit the same to the Congress with or without modification, together with a declaration that such reorganization is necessary to accomplish the purposes of Section One hereof. No reorganization plan shall become effective unless expressly approved by Congress which must either accept or reject it in toto.

Upon approval of the reorganization plan or plans by Congress, the President shall forthwith implement the same by issuing the necessary executive order or orders subject to the limits of the Appropriation Act for the fiscal year during which the implementation is effected.

Section 5. Whenever it becomes necessary to reduce the personnel of any office affected by the reorganization plan or plans or modifications thereof, the provisions on reduction in force of Rule VIII of the Civil Service Rules shall be applied: Provided, However, That, other things being equal, the preference in retention shall be given to a veteran-employee.

Officers and employers whose positions are abolished or who may be separated from the service as a consequence of the reorganization authorized under this Act shall not lose their civil service eligibilities. Their names shall be submitted to the Commissioner of Civil Service who shall enter them in a preferential re-employment list under proper classifications as to qualifications, training, civil service eligibility and other similar factors that would facilitate their re-employment in appropriate vacancies in the government: Provided, However, That the names of officers and employees whose efficiency ratings are below "satisfactory" or its equivalent, shall not be registered in the preferential re-employment list: Provided, further, That those who may be separated or removed from the service by reason of the reorganization shall be granted a gratuity at a rate equivalent to one month's salary for every year of continuous satisfactory service rendered or the equivalent nearest fractions thereof favorable to them on the basis of the highest salary received: Provided, still further, That if they are already entitled to any gratuity or pension under any other existing retirement or gratuity law, they shall have the option to select either such gratuity or pension or the gratuity provided under this Reorganization Act: And Provided, finally, That any of such officers and employees who may be reinstated in the service before the expiration of the period for which he has been paid gratuity shall refund the unearned portion of such gratuity before he is reinstated in the service.

Section 6. Hereafter, vacancies in any department, bureau, office or agency or instrumentality of the government, including government-owned or controlled corporations, shall be filled by certification of the Commissioner of Civil Service from the preferential re-employment list ahead of the regular register of eligibles, under such rules and regulations as the Commission on Reorganization may promulgate: Provided, That no appointment which is made in violation of this Section or of the rules and regulations promulgated hereunder by the Commission on Reorganization shall be approved by the Commissioner of Civil Service.

Section 7. To carry out the provisions of this Act, the sum of one million pesos or so much thereof as may be necessary is hereby appropriated out of any funds in the National Treasury not otherwise appropriated.

Section 8. This Act shall take effect upon its approval.

Approved: September 9, 1968.