Executive Order No. 5, s. 1986





WHEREAS, there is a need to effect the necessary and proper changes in the organizational and functional structures of the national and local governments, its agencies and instrumentalities, including government-owned and controlled corporations and their subsidiaries, in order to promote economy, efficiency and effectiveness in the delivery of public services;

WHEREAS, these major changes in the government bureaucracy must be responsive to and be consistent with the national goals for an accelerated socio-economic recovery and progress; and

WHEREAS, it is desirable to provide the President with adequate technical and staff support in the continuing assessment and determination of needed restructuring of government in order to attain the aforesaid national goals.

NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, by virtue of the powers vested in me by the popular mandate of the PEOPLE and the law of the land, do hereby order:

SECTION 1. The present Presidential Commission on Reorganization (PCR) operating under the provisions of Executive Order No. 575, dated January 4, 1980, is hereby converted into a Presidential Commission on Government Reorganization (PCGR), and its membership reconstituted as follows:

Honorable Luis R. Villafuerte Chairman
Honorable Joker P. Arroyo Member
Honorable Teodoro Locsin, Jr. Member
Honorable Jaime Ferrer Member

The Chairman of the PCGR shall have the rank of Minister and shall be a member of the Cabinet.

SECTION 2. The functional jurisdiction of the PCGR shall encompass, as necessary, the reorganization of the national and local governments, its agencies and instrumentalities, including government-owned or controlled corporations and their subsidiaries.

It shall continue providing staff assistance and consultative advice to the President, ministries and other agencies and instrumentalities of the government on development administration relative to, among others, reorganization, decentralization and regionalization, the career executive service, and the rationalization of government corporation management and functions.

The PCGR shall also assess, evolve and define a framework of the functional relationships between the national government and its political subdivisions at the regional, provincial, city, municipal and barangay levels.

The Special Presidential Reorganization Committee created under Executive Order No. 703, dated July 9, 1981, is hereby abolished and its functions and responsibilities are transferred to the PCGR, including particularly those pertaining to the government corporation sector study provided under Letter of Instructions No. 1454, dated April 8, 1985.

SECTION 3. In order to coordinate and integrate reorganization actions with the goals and objectives of the PCGR, all reorganization measures or proposals shall, prior to their submission to the President for consideration and action, be submitted to, and passed upon by, the PCGR.

SECTION 4. In order to facilitate the reorganization of the government, all ministries and equivalent agencies are hereby required to submit to the PCGR their reorganizational proposals not later than March 30 this year, such proposals to include, among others, internal reorganization measures down to bureau and service levels only (not including divisions and lower level units) and transfer of functions from the ministries to other ministries and vice versa.

The PCGR is hereby authorized to require ministries, bureaus, agencies and government-owned and controlled corporations and local governments to submit to it, whenever deemed necessary, studies, records, and other documents that are needed in the performance of its functions and responsibilities.

SECTION 5. The Commission is authorized to secure the services of personnel from other government agencies on temporary detail either on a full-time or part-time basis.

SECTION 6. In the meantime that the necessary documentation for the formal operation of the PCGR under its name is not yet completed, the PCGR is hereby authorized to operate and transact its affairs under the name of the PCR especially with respect to its budget and disbursements as well as other financial and related transactions.

SECTION 7. The amount of TEN MILLION PESOS (P10,000,000.) subject to the availability of funds, is hereby authorized to be released to the PCGR chargeable against the Special Activities Fund and/or any applicable appropriation’s item provided for in Batas Pambansa Blg. 879.

SECTION 8. The PCGR is hereby declared a critical agency and its personnel are accordingly exempted from the application of the rules and regulations of the Office of Compensation and Position Classification. The PCGR shall determine the salary rates of its regular and contractual personnel, as well as the rates of honorarium of detailed personnel.

SECTION 9. All laws, decrees, rules and regulations and other issuances or parts thereof which are contrary to or inconsistent with this Executive Order are hereby repealed or modified accordingly.

SECTION 10. This Executive Order shall take effect immediately.

DONE in the City of Manila, this 12th day of March, in the year of Our Lord, Nineteen Hundred and Eighty-Six.

President of the Philippines

By the President:

Executive Secretary

Source: Presidential Management Staff

Office of the President of the Philippines. (1986). [Executive Order Nos. : 1 – 170]. Manila : Presidential Management Staff.