PICHAY v. OFFICE OF EXEC SEC.

o Hence, the express recognition of the GAA of 2010 of the President’s

G.R. No. 196425. authority to “direct changes in the organizational units or key positions in any
July 24, 2012 department or agency.”
 Recognizing the power “even to the extent of modifying and
DOCTRINE: realigning appropriations for that purpose.”
 the Administrative Code of 1987, vests in the President the continuing authority to  To further enable the President to run the affairs of the executive department, he is
reorganize the offices under him in order to achieve simplicity, economy and efficiency likewise given constitutional authority to augment any item in the General
o The abolition of the Presidential Anti-Graft Commission (PAGC) and the transfer Appropriations Law using the savings in other items of the appropriation for his
of its functions to a division specially created within the Office of the Deputy office
Executive Secretary for Legal Affairs (ODESLA) is properly within the o Thus, the necessary funds for the IAD-ODESLA may be properly sourced
prerogative of the President under his continuing “delegated legislative from the President’s own office budget without committing any illegal
authority to reorganize” his own office pursuant to E.O. 292 appropriation
 NO USURPATION of LEGIS’S POWER to APPROPRIATE FUNDS
FACTS: o When the President simply allocates the existing funds previously
 In 2001, Pres. Arroyo issued E.O 12 creating the Presidential Anti-Graft Commission appropriated by Congress for his office.
(PAGC)
o vesting it with the power to investigate or hear administrative cases or EO 13 is CONSTITUTIONAL
complaints for possible graft and corruption against presidential appointees and
to submit its report and recommendations to the President
 In 2010, Pres. Aquino issued EO 13 abolishing the PAGC and transferring its functions to
the Office of the Deputy Executive Secretary for Legal Affairs (ODESLA)
o more particularly to its newly-established Investigative and Adjudicatory
Division (IAD)
 In 2011, respondent Finance Secretary filed before the IAD-ODESLA a complaint for grave
misconduct against petitioner Prospero A. Pichay, Jr., Chairman of the Board of Trustees of
the Local Water Utilities Administration (LWUA), including members of the BoT
o The complaint arose from the purchase by the LWUA of shares of stick of
Express Savings Bank
 Now, Pichay contends that EO 13 is UNCONSTITUTIONAL
o Among his contentions is that EO 13 usrped the power of the Legislature to
appropriate funds

ISSUE: WON EO 13 is unconstitutional [NO]

HELD:
 The President has Continuing Authority to Reorganize the Executive Department
under EO 292
o Rationale: to remain effective and efficient, the Office of the President must be
capable of being shaped and reshaped by the President in the manner he deems
fit to carry out his directives and policies.
o Clearly, the abolition of the PAGC and the transfer of its functions to a
division specially created within the ODESLA is properly within the
prerogative of the President under his continuing “delegated legislative
authority to reorganize” his own office pursuant to E.O. 292.

 THERE IS NO USURPATION OF THE LEGISLATIVE POWER TO APPROPRIATE PUBLIC

FUNDS
o Placed upon the President is the POWER TO RECOMMEND the BUDGET
necessary for the operation of the government
 This implies that he has the necessary authority to evaluate and
determine the structure that each government agency in the Exec
Dept. would need to operate in the most economical and efficient
manner