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Executive Orders

Reorganizing the Ministry of Transportation and Communications Defining Its Powers and Functions and For Other Purposes.

Executive Order No. 125

EXECUTIVE ORDER NO. 125 January 30, 1987

REORGANIZING THE MINISTRY OF TRANSPORTATION AND COMMUNICATIONS DEFINING ITS POWERS AND FUNCTIONS AND FOR OTHER PURPOSES.

RECALLING that the reorganization of the government is mandated expressly in Article II, Section 1 (a), and Article III of the Freedom Constitution;

HAVING IN MIND that pursuant to Executive Order No. 5 (1986), it is directed that necessary and proper changes in the organizational and functional structures of the government, its agencies and instrumentalities, be effected in order to promote efficiency and effectiveness in the delivery of public services;

CONSIDERING that viable and dependable transportation and communications networks are necessary tools for economic recovery;

CONSIDERING further that rapid technological advances in communication facilities require a distinct response to the peculiar problems of this field;

REALIZING that the growing complexity of the transportation sector has necessitated its division into various sub-sectors to facilitate the regulation and promotion of the sector as a whole; and

REALIZING further that the State needs to regulate these networks...

Reorganizing the Ministry of Transportation and Communications

Declaration of Policy (Sec. 3):
- The State is committed to maintaining and expanding viable, efficient, and dependable transportation and communications systems for national recovery and economic progress.
- The State shall not compete with private enterprises and shall operate transportation and communications facilities only where private initiatives are inadequate or non-existent.

Mandate and Objectives (Sec. 4):
- The Ministry shall be the primary policy, planning, programming, coordinating, implementing, regulating, and administrative entity for transportation and communications systems.
- Objectives include:
  - Promote development of dependable and coordinated transportation and communications networks. (Sec. 4a)
  - Guide government and private investments in intermodal transportation and communications systems. (Sec. 4b)
  - Impose measures to ensure economic viability and prevent inefficiency in transportation and communications entities. (Sec. 4c)
  - Develop an integrated plan for a nationwide transmission system. (Sec. 4d)
  - Guide investments in international switching systems for telecommunications services. (Sec. 4e)
  - Encourage development of domestic telecommunications industry. (Sec. 4f)
  - Provide a safe, reliable, and efficient postal system. (Sec. 4g)

Powers and Functions (Sec. 5):
- Formulate national policies and guidelines for integrated transportation and communications systems. (Sec. 5a)
- Establish and administer comprehensive programs for transportation and communications. (Sec. 5b)
- Assess, review, and provide direction to research and development programs. (Sec. 5c)
- Administer laws, rules, and regulations in transportation and communications. (Sec. 5d)
- Coordinate with the Ministry of Public Works and Highways on infrastructure projects. (Sec. 5e)
- Establish, operate, and maintain a nationwide postal system. (Sec. 5f)
- Sub-allocate frequency bands for specific services. (Sec. 5g)
- Accredit foreign aircraft manufacturers and organizations for aircraft certification. (Sec. 5h)
- Deputize Philippine Airlines and Airline Pilots Association for pilot licensing. (Sec. 5i)
- Perform other powers and functions prescribed by law. (Sec. 5j)

Authority and Responsibility (Sec. 6):
- The Minister of Transportation and Communications, appointed by the President, shall have supervision and control over the Ministry.

Office of the Minister (Sec. 7):
- The Office of the Minister shall consist of the Minister and immediate staff.

Deputy Ministers (Sec. 8):
- The Minister shall be assisted by four Deputy Ministers appointed by the President, responsible for Attached Agencies and Corporations, Transportation, Communications, and Ministry Regional Offices.

Assistant Ministers (Sec. 9):
- The Minister shall be assisted by seven Assistant Ministers appointed by the President, each heading Administrative and Legal Service, Finance and Management Service, Planning and Research Service, Technical Service, Luzon Regional Offices, Visayas Regional Offices, and Mindanao Regional Offices.

Structural Organization (Sec. 10):
- The Ministry shall be composed of the Minister Proper (Offices of the Minister, Deputy Ministers, and Assistant Ministers), four Bureaus (Land Transportation, Air Transportation, Posts, and Telecommunications), and Ministry Regional Offices.
- The Bureaus shall be staff in character.

Ministry Regional Offices (Sec. 11):
- There shall be two Ministry Regional Offices in each administrative region: one for Transportation and one for Communications.
- The Transportation Regional Office shall be headed by a Regional Director and two Assistant Regional Directors for air and land affairs.
- The Communications Regional Office shall be headed by a Regional Director and two Assistant Regional Directors for telecommunications and postal services.
- Regional Offices shall implement laws, policies, plans, programs, projects, rules, and regulations of the Ministry, provide efficient services, coordinate with other agencies and local government units, and perform other functions provided by law.

Bureau of Air Transportation (Sec. 12):
- Develop plans, policies, programs, standards, and guidelines related to air transportation, air space utilization, air traffic control, aeronautics communications and information services, aircraft and air navigational facilities, services, maintenance, and operations.
- Establish rules and regulations for aircraft inspection and registration, issuance of airmen licenses, enforcement of air transportation laws and penalties, determination of charges and rates for public air utility facilities and services, administration and operation of the Civil Aeronautics Training Center, and other functions provided by law.

Bureau of Land Transportation (Sec. 13):
- Develop plans, policies, programs, standards, and guidelines pertaining to land transportation.
- Establish rules and regulations for routes, zones, and areas of operation for public land services, issuance of certificates of public convenience for public land transportation utilities and services, inspection and registration of public land transportation facilities, issuance of licenses to drivers, conductors, engineers, and conductors, enforcement of land transportation laws and penalties, determination of charges and rates for public land utility facilities and services, accreditation of driving schools, and other functions provided by law.

Maritime Industry Authority (Sec. 14):
- Develop plans, policies, programs, standards, and guidelines for the promotion and development of the maritime industry, growth and regulation of shipping enterprises, and national security objectives.
- Establish routes, zones, and areas of operation for public water services, issue certificates of public convenience for domestic and overseas water carriers, register vessels and issue related certificates and licenses, undertake safety regulatory functions for vessel construction and operation, enforce laws and regulations governing water transportation and the Philippine Merchant Marine, issue licenses to seamen and pilots, determine charges and rates for public water transport utilities and facilities, accredit marine surveyors and maritime enterprises, supervise the Philippine Merchant Marine Academy, issue and register continuous discharge books of Filipino seamen, establish rules and regulations for the discharge of functions, and perform other functions provided by law.

Bureau of Telecommunications (Sec. 15):
- Develop plans, policies, programs, standards, and guidelines to provide telecommunications facilities and services, including systems to augment limited or inadequate private telecommunications services, provide services in areas without private services, and assist the private telecommunications sector.
- Establish rules and regulations for the operation and maintenance of telecommunications facilities in areas not adequately served by the private sector, administer and operate the Telecommunications Training Institute, and perform other functions provided by law.

Bureau of Posts (Sec. 16):
- Develop plans, policies, programs, standards, and guidelines to provide safe, fast, reliable, and efficient postal services in the country.
- Establish rules and regulations for the enforcement of laws governing postal services and penalties, determine charges and rates for postal services, establish rules and regulations for the operation and maintenance of a nationwide postal system including mail processing, delivery services, money order services, and promotion of philately, and perform other functions provided by law.

Abolition/Transfer/Consolidation (Sec. 17):
- The Land Transportation Commission is abolished, with staff functions transferred to the Bureau of Land Transportation and line functions transferred to the Ministry Regional Offices.
- PNL Leasing Inc. is abolished, and its functions are transferred to Philippine National Lines, Inc.
- The National Aero Manufacturing Inc. and the Philippine Aero Systems, Inc. are abolished.
- The Civil Aeronautics Board is transferred from the Ministry as an attached agency.

Attached Agencies and Corporations (Sec. 18):
- The following agencies and corporations are attached to the Ministry: Philippine National Railways, Maritime Industry Authority, Philippine National Lines, Philippine Aerospace Development Corporation, Metro Manila Transit Corporation, Office of Transport Cooperatives, Philippine Ports Authority, Philippine Merchant Marine Academy, Toll Regulatory Board, Light Rail Transit Authority, Transport Training Center, Civil Aeronautics Board, National Telecommunications Commission, and Manila International Airport Authority.
- An Airport Security Center is created within the Manila International Airport Authority to plan, supervise, control, coordinate, integrate, and direct intelligence and operational activities of all police, military, security, safety service, government monitoring, intelligence, and other security operating units employed by government entities and private agencies in the Manila International Airport.

Transitory Provisions (Sec. 19):
- Provisions for the transfer of functions, personnel, appropriations, funds, records, equipment, facilities, assets, liabilities, and personnel separation and benefits during the reorganization.

New Structure and Pattern (Sec. 20):
- The new position structure and staffing pattern of the Ministry shall be approved and prescribed by the Minister within 120 days from the approval of this Executive Order.
- Incumbents whose positions are not included or who are not reappointed shall be deemed separated from the service and shall receive retirement benefits or a separation pay equivalent to one month's basic salary for every year of service, but not exceeding 12 months' salary.
- No court or administrative body shall issue any writ or preliminary injunction or restraining order to enjoin the separation/replacement of any officer or employee.

Prohibition Against Changes (Sec. 21):
- No change in the reorganization shall be valid except upon prior approval of the President for the purpose of promoting efficiency and effectiveness in the delivery of public services.

Implementing Authority of Minister (Sec. 22):
- The Minister shall issue orders, rules, regulations, and other issuances necessary to ensure the effective implementation of this Executive Order.

Notice or Consent Requirements (Sec. 23):
- If any reorganizational change requires notice to or consent of creditors pursuant to any agreement, such notice or consent requirement shall be complied with prior to the implementation of such change.

Funding (Sec. 24):
- Funds needed to carry out the provisions of this Executive Order shall be taken from funds available in the Ministry.

Change of Nomenclature (Sec. 25):
- In the event of the adoption of a new Constitution providing for a presidential form of government, the Ministry shall be called the Department of Transportation and Communications, and the titles of Minister, Deputy Minister, and Assistant Minister shall be changed to Secretary, Undersecretary, and Assistant Secretary, respectively.

Separability (Sec. 26):
- Any portion or provision of this Executive Order that may be declared unconstitutional shall not have the effect of nullifying other portions or provisions, as long as such remaining portions or provisions can still subsist and be given effect in their entirety.

Repealing Clause (Sec. 27):
- Presidential Decree No. 890 and Letters of Instruction Nos. 263 and 371 are hereby repealed, as well as all laws, ordinances, rules, regulations, other issuances or parts thereof, which are inconsistent with this Executive Order.

Effectivity (Sec. 28):
- This Executive Order shall take effect immediately upon its approval.

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