Tuesday, January 24, 2012

Reorganization of Public Office


     A public office is created by the Constitution or by law or by an officer or tribunal to which the power to create the office has been delegated by the legislature. The power to create an office carries with it the power to abolish.  

     Abolition of a public office is usually done thru reorganization. Reorganization however, must be done in good faith to be valid. 

     This doctrine was again reiterated in the case of Enrique U. Betoy v. The Board of Directors, National Power Corporation, G.R. No. 156556-57, promulgated on October 4, 2011. In this case, employees affected by the privatization of the NPC led by Betoy filed a petition directly to the Supreme Court praying to declare the board resolutions providing separation benefits null and void. The petition basically questioned certain provisions of Rep. Act No. 9136 or the Electric Power Industry Reform Act of 2001.

     The Court in this case sustained the reorganization of the NPC involving the reduction of personnel, consolidation of offices, or abolition thereof by reason of economy or redundancy of functions. The court did not lend credence to the allegation of the petitioner that the reorganization was tainted with bad faith. 

     Bottom line, employees of agencies affected by reorganization should brace themselves for they have very little recourse in cases of valid reorganization. 

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