Facts: On Feb. 21, 1992, then Pres. Aquino issued AO 268 which granted each official and employee of the government the productivity incentive benefits in a maximum amount equivalent to 30% of the employee’s one month basic salary but which amount not be less than P2, 000.00. Said AO provided that the productivity incentive benefits shall be granted only for the year 1991. Accordingly, all heads of agencies, including government boards of government-owned or controlled corporations and financial institutions, are strictly prohibited from granting productivity incentive benefits for the year 1992 and future years pending the result of a comprehensive study being undertaken by the Office of the Pres.
The petitioners, who are officials and employees of several government departments and agencies, were paid incentive benefits for the year 1992. Then, on Jan. 19, 1993, then Pres. Ramos issued AO 29 authorizing the grant of productivity incentive benefits for the year 1992 in the maximum amount of P1,000.00 and reiterating the prohibition under Sec. 7 of AO 268, enjoining the grant of productivity incentive benefits without prior approval of the President. Sec. 4 of AO 29 directed all departments, offices and agencies which authorized payment of productivity incentive bonus for the year 1992 in excess of P1, 000.00 to immediately cause the refund of the excess. In compliance therewith, the heads of the departments or agencies of the government concerned caused the deduction from petitioners’ salaries or allowances of the amounts needed to cover the alleged overpayments.
Issue: Whether or not AO 29 and AO 268 were issued in the valid exercise of presidential control over the executive departments
Held: The Pres. is the head of the government. Governmental power and authority are exercised and implemented through him. His power includes the control of executive departments as provided under Sec. 17, Art. VII of the Constitution.
Control means the power of an officer to alter or modify or set aside what a subordinate officer had done in the performance of his duties and to substitute the judgment of the former for that of the latter. The Pres. can, by virtue of his power of control, review, modify, alter or nullify any action or decision of his subordinate in the executive departments, bureau or offices under him.
When the Pres. issued AO 29 limiting the amount of incentive benefits, enjoining heads of government agencies from granting incentive benefits without approval from him and directing the refund of the excess over the prescribed amount, the Pres. was just exercising his power of control over executive departments.
The Pres. issued subject AOs to regulate the grant of productivity incentive benefits and to prevent discontent, dissatisfaction and demoralization among government personnel by committing limited resources of government for the equal payment of incentives and awards. The Pres. was only exercising his power of control by modifying the acts of the heads of the government agencies who granted incentive benefits to their employees without appropriate clearance from the Office of the Pres., thereby resulting in the uneven distribution of government resources.
The President’s duty to execute the law is of constitutional origin. So, too, is his control of executive departments.
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