G.R. No. 182604 . September 27, 2016.
DR. ROLANDO B. MANGUNE, ET AL., PETITIONERS, VS. HONORABLE SECRETARY EDUARDO ERMITA, ET AL., RESPONDENTS.

FACTS

Republic Act No. 7842 established the Taguig-Pateros District Hospital (TPDH) under the administration and supervision of the Department of Health (DOH). On September 8, 2006, then President Gloria Macapagal-Arroyo issued Executive Order No. 567, devolving the administration and supervision of TPDH from the DOH to the City of Taguig. The order cited the Local Government Code and the President’s continuing authority to reorganize the executive department. Petitioners, DOH employees assigned to TPDH, objected to the devolution, submitting a position paper to the DOH and a letter to the Office of the President, but received no action. They subsequently filed a Petition for Prohibition and Certiorari before the Regional Trial Court (RTC), seeking to declare E.O. No. 567 unconstitutional for violating the principle of separation of powers and for being issued with grave abuse of discretion.
The RTC dismissed the petition, upholding the constitutionality of E.O. No. 567. It ruled that the issuance was within the President’s power of supervision and that R.A. No. 7842 did not prohibit devolution, as the principles of local autonomy under the Local Government Code are implied therein. The RTC also held that petitioners failed to exhaust administrative remedies by not seeking intervention from the Civil Service Commission regarding their reassignment and by not pursuing action against the DOH and the Office of the President for their inaction. Petitioners’ motion for reconsideration was denied, prompting this appeal.

ISSUE

The primary issue is whether Executive Order No. 567 is constitutional.

RULING

The Supreme Court denied the petition and affirmed the constitutionality of E.O. No. 567. The Court clarified that the President’s authority to devolve functions to local government units is derived from Section 17 of the Local Government Code, not from an inherent power of reorganization. This provision mandates the transfer of functions, responsibilities, and resources for the provision of basic services and facilities. The Court emphasized that devolution is a legislative act executed by the President, and E.O. No. 567 was a valid implementation of this legislative policy. The Court further explained that the Local Government Code itself is the source of the devolution mandate, and the President’s role is to execute this law. The Oversight Committee’s function was merely to formulate implementing rules and regulations, not to be the exclusive vehicle for devolution. Consequently, the President acted within her executive authority to carry out the clear statutory directive of devolution under the Code. The Court found no violation of the separation of powers, as the President was executing, not usurping, legislative policy.