BANDA VS ERMITA (April 20, 2010)

Nature Petition for Certiorari and Prohibition

Parties Atty. Banda, et al, class suit filed on their own behalf and on behalf of all their co-employees at the National Printing Office
(NPO), petitioners
Ermita as Executive Secretary, respondent
Disputed Matter Constitutionality of Executive Order No. 378
Antecedents  July 25, 1987: NPO was formed by virtue of EO No. 285 under the regime of Pres. Corazon Aquino.
- NPO was created from the merger of the Government Printing Office and the relevant printing units of the
Philippine Information Agency (PIA).
- Sec. 6 of EO No. 285 grants NPO the exclusive printing jurisdiction of government’s accountable forms, official
ballots, and other public documents.
 October 25, 2004: issued EO No. 378 amending Section 6 of Executive Order No. 285 by, inter alia, removing the
exclusive jurisdiction of the NPO over the printing services requirements of government agencies and instrumentalities.
- Under EO No. 378, government agencies and instrumentalities are allowed to source their printing requirement from
the private sector through competitive bidding, provided that their serviced are of lower cost and superior quality
than that of NPO.
- NPO’s appropriation in the General Appropriations Act is limited to its income
 The petitioners bring the instant petition contending that:
1. It is beyond the executive powers of President Arroyo to amend or repeal Executive Order No. 285 issued by former
President Aquino when the latter still exercised legislative powers; and
2. Executive Order No. 378 violates petitioners’ security of tenure, because it paves the way for the gradual abolition of
the NPO

Issues Decision Doctrine

I. SUBSTANTIVE
a. Given the EO No. 285, creating the
NPO is issued by then President
Aquino under the Freedom
Constitution when she still had
legislative power, does PGMA have
the power to repeal or amend the
same by virtue of a mere executive
order, i.e. EO No. 378?
Yes. NPO, as an agency that is part of the Office of the Press It is a well-settled principle in
Secretary, is part of the Office of the President. By virtue of Sec. jurisprudence that the President has
31 of the RAC of 1987 the President is granted continuing the power to reorganize the offices
authority to reorganize the Executive office (NPO covered) by: and agencies in the executive
a. abolishing, consolidating or merging units thereof or department in line with the
transferring functions from one unit to another; and - President’s constitutionally
b. to transfer functions or offices from the Office of the granted power of control over
President to any other Department or Agency in the executive offices and
Executive Branch, and vice versa - by virtue of previous
delegation of the legislative
In the instant case, the NPO is neither abolished, nor its power to reorganize executive
functions transferred. The government agencies are merely offices under existing statutes.
allowed to source printing services from private suppliers. Thus,
NPO must now compete with private sectors. The end sought In other words the basis of the
Issues
b. Will EO No. 378, in allowing
government agencies to source
printing services from the private
sector and in limiting the NPO’s
budget to its income purportedly lead
to its gradual abolition and the loss of
security of tenure of its employees? Is
the EO issued in bad faith?
Decision Doctrine
for such is to encourage its efficiency and profitability. President’s power to reorganize
offices and agencies in the executive
The power of the President to reorganize the Executive Branch department is constitutional and
under Sec. 31 includes such powers and functions that may be statutory.
provided for under other laws, pursuant to Sec. 20 of the same
Code: Constitutional basis. Sec. 17, Art. VII of
the 1987 Constitution.
Sec. 20. Residual Powers. – Unless Congress provides
otherwise, the President shall exercise such other powers and The President shall have control of all
functions vested in the President which are provided for under the executive departments, bureaus,
the laws and which are not specifically enumerated above, or and offices. He shall ensure that the
which are not delegated by the President in accordance with law. laws be faithfully executed.
The power of the President to reorganize the Executive office is Statutory basis. Sec. 31, Chap. 10,
supported by specific provisions in the general appropriation Title III, Book III of the Revised
laws, to wit: Administrative Code of 1987. This
a. Sec. 48 and 62 of RA No. 7645; the General granted a Continuing Authority to
Appropriations Law for 1993 the President to reorganize his
b. Sec. 78 of RA No. 8760 office to achieve simplicity, economy
c. Sec. 77 and 78 of the 2003 General Appropriations Act and efficiency. This is a delegation of
d. Sec. 31(2) and (3) of EO No. 292 legislative power to the
President.
The issuance of Executive Order No. 378 by President Arroyo is
an exercise of a delegated legislative power granted by the
aforementioned Sec. 31, Chap. 10, Title III, Book III of the
Administrative Code of 1987, which provides for the continuing
authority of the President to reorganize the Office of the
President, "in order to achieve simplicity, economy and
efficiency."
No. Petitioners failed to substantiate their claim. They failed to There is a presumption of regularity
allege and prove sufficient facts to show that the limitation of the in the issuances by the branches of
NPO’s budget to its own income would lead to its abolition of the government. They are deemed
the position, or removal from office, of any employee. Neither issued in good faith unless proven
did they present any proof that the changes in the functions of otherwise by competent evidence.
the NPO were for political considerations that had nothing to do The burden of proof lies with the
with improving the efficiency of, or encouraging operational person alleging the irregularity.
economy in, the said agency.