Legal Aspects of business

Administrative LAW
Paula Bianca A. Soriano
Legal Aspects of business

Topics
• Principles of Administrative Law
• How Administrative Agencies Act
• Administrative Agencies and the Constitution
• Judicial Review of Agency Actions
• Ease of Doing Business
• Obtaining Documents from an Agency

Administrative Law
Legal Aspects of business

Objective
• Understand the various ways in which administrative agencies operate
and addresses the key principles of administrative law.

• Know how to find the rules of a particular agency and how to obtain
documents from the government.

Administrative Law
Legal Aspects of business

Administrative law
• Is the body of law created by the agencies and departments of the government, which
carry out the laws passed by Congress or a state legislature

• It includes all the laws and policies that regulate or control the administrative
organization and operation of the government through administrative agencies (AAs).

Administrative Law
Legal Aspects of business

Principles of Administrative Law

• As a function, it refers to the implementations of the laws in non-judicial matters by competent authority. As an

organization, it refers to the people controlling it for the time being.

• Separation of Power – It is the division of the powers and functions of government among the three separate arms

that is, the legislature, executive, and the judiciary.

• Division of Power:

1. An executive body that serves public interest.

2. A quasi-legislative body that establishes and prescribes rules and regulations to implement the law.

3. A quasi-judicial body that conducts hearing and decides on cases; it shall not have power of a pure judicial

court.

Administrative Law
Legal Aspects of business

In the Administrative Code of 1987, agency is defined to include:

• any government unit authorized by law to make rules, issues, licenses, grant rights or
privileges, and adjudicate cases.
• research institutions with respect to licensing functions
• government corporations with respect to functions regulation private right, privileges,
occupation or business
• officials in the exercise of disciplinary power as provided by law

Administrative Law
Legal Aspects of business

How Administrative agencies Act

• Congress needs help determining all of the details of how the law will be enforced and implemented.
Administrative agencies and government departments fill in those gaps for Congress and pass additional
rules and regulations to achieve Congress's goals.
• It is through rule-making, adjudication, and implementation. Functions are related with the three equal
branches of government – Executive, Legislative, and Judicial

Administrative Agencies can also make rules and regulations to implement a law
1. Quasi-judicial - administrative agencies have the power to resolve disputes and controversies
2. Quasi-legislative – authority given to adopt rules and regulations intended to carry out the provisions of a law
and implement legislative policy.

Administrative Law
Legal Aspects of business

Administrative Agencies and the Constitution

• Department - refers to an executive department created by law.
• Bureau - refers to any principal subdivision or unit of any department.
• Office - refers, within the framework of governmental organization, to any major functional unit of a department or
bureau including regional offices.
• Instrumentality - refers to any agency of the National Government
• Regulatory agency - refers to any agency expressly vested with jurisdiction
• Chartered institution - refers to any agency organized or operating under a special charter, and vested by law with
functions relating to specific constitutional policies or objectives.
• Government-owned or controlled corporation - refers to any agency organized as a stock or non-stock corporation

Administrative Law
Legal Aspects of business

Administrative Agencies and the Constitution

• Chapter 5, Sec. 24. Constitutional Commissions. - The Constitutional Commissions, which shall be
independent, are the Civil Service Commission, the Commission on Elections, and the Commission on
Audit.

• Chapter 6, Sec. 29. Other Bodies. - There shall be in accordance with the Constitution, an Office of the
Ombudsman, a Commission on Human Rights, an independent central monetary authority, and a national
police commission. Likewise, as provided in the Constitution, Congress may establish an independent
economic and planning agency.

Administrative Law
Legal Aspects of business

An administrative agency may be created by:

1. Executive order
2. Legislation
3. Constitutional Provision

KEY NOTES:
1. An agency is wholly within the power of law that created it, that prescribes its powers and functions. It may be abolished

in the same manner as it is created.

2. Reorganization is also possible - restructuring the bureaucracy's organizational and functional set-up, to make it more

viable in terms of the economy, efficiency, and effectiveness.

Administrative Law
Legal Aspects of business

Judicial Review of Agency Actions

• Judicial power includes the duty of the courts of justice to settle actual controversies involving rights which are legally

demandable and enforceable, and to determine whether or not there has been a grave abuse of discretion amounting to lack or

excess of jurisdiction on the part of any branch or instrumentality of the government.

• Any party adversely affected by an agency decision may seek judicial review.

• If the appeal involves pure question of law, it should be filed directly with the Supreme Court through a petition for review

• Appeal from an agency decision shall be perfected by filing with the agency within fifteen (15) days from receipt of a copy thereof

a notice of appeal, and with the reviewing court a petition for review of the order.

• The petition for review shall be perfected within fifteen (15) days from receipt of the final administrative decision.

• The judicial power shall be vested in one Supreme Court and in such lower courts as may be established by law.

Administrative Law
Legal Aspects of business

Ease of Doing Business

• Republic Act No. 11032 or the Ease of Doing Business and Efficient Delivery of Government

Services - is an act that aims to streamline the current systems and procedures of

government services to improving the competitiveness of and ease of doing business in

the Philippines. Signed into law on 28 May 2018, the law effectively amends Republic Act

9485 or the Anti-Red Tape Act of 2007.

Administrative Law
Legal Aspects of business

Ease of Doing Business

• It applies to all government offices and agencies in the Executive Department including
local government units (LGUs), government-owned or -controlled corporations, and
other government instrumentalities, located in the Philippines or abroad that provide
services covering business-related and non-business transactions as defined in the IRR.

• Lead time per transaction

1. 3 days - Simple transactions
2. 7 days - Complex transaction
3. 20 days - Highly technical

Administrative Law
Legal Aspects of business

Obtaining Documents from an Agency

• SEC. 6. Citizen’s Charter. — All government agencies including departments, bureaus,

offices, instrumentalities, or government-owned and/or controlled corporations, or local

government or district units shall set up their respective service standards to be known as

the Citizen’s Charter in the form of information billboards which should be posted at the

main entrance of offices or at the most conspicuous place, in their respective websites

and in the form of published materials written either in English, Filipino or in the local

dialect.

Administrative Law
Legal Aspects of business

Obtaining Documents from an Agency

• Business One Stop Shop (BOSS) – a single common site or location, or a single online

website or portal designated for the Business Permit and Licensing System (BPLS) of an

LGU to receive and process applications, receive payments, and issue approved licenses,

clearances, permits, or authorizations;

Administrative Law
Legal Aspects of business

Administrative Case
Title: BALICAS vs. FFIB, OFFICE OF THE OMBUDSMAN
GR Number and Date of the Case: 145972 / March 23, 2004

Facts:
1. In the development of the Cherry Hills Subdivision (CHS), Philjas applied for the issuance of ECC from the DENR-Region IV. PENRO
senior environmental management specialist, monitored the implementation of the CHS Project Development to check
compliance with the terms and conditions in the ECC. She conducted another monitoring on the project for the same purpose.
In both instances, she noted that the project was still in the construction stage hence, compliance with the stipulated conditions
could not be fully assessed, and therefore, a follow-up monitoring is proper.
2. After the tragic incident on August 3, 1999, a fact-finding investigation was conducted by the Office of the Ombudsman
through its Fact-Finding and Intelligence Bureau (FFIB), which duly filed an administrative complaint with the Office of the
Ombudsman against several officials of the Housing and Land Use Regulatory Board (HLURB), Department of Environment and
Natural Resources (DENR), and the local government of Antipolo.

Administrative Law
Legal Aspects of business

3. The charge against petitioner involved a supposed failure on her part to monitor and inspect the development
of CHS, which was assumed to be her duty as DENR senior environmental management specialist assigned in the
province of Rizal.
4. The Office of the Ombudsman rendered a decision imposing upon petitioner the supreme penalty of dismissal
from office for gross neglect of duty. Petitioner seasonably filed a petition for review of the Ombudsmans decision
with the CA. The Court of Appeals dismissed the petition for lack of merit and affirmed the appealed decision.

ISSUE: Whether or not, Balicas is guilty of gross neglect of duty

HELD: the petition is hereby GRANTED, The CA decision affirming the Ombudsmans dismissal of petitioner IGNACIA
BALICAS from office is REVERSED and SET ASIDE, and petitioners REINSTATEMENT to her position with back pay and
without loss of seniority rights is hereby ordered.

Administrative Law
Legal Aspects of business

Administrative Case
Title: Alicia Pagaduan vs. Commission on Audit
GR Number and Date of the Case: 140207 / October 27, 2004

Facts:
1. The office of Civil Service Commission-NCR issued a formal charged against the then cashier, Alicia Pagaduan
for Gross Neglect of Duty, for failure to liquidate her cash advance within the prescribed period.
2. Based on the narrative report of Commission on Audit, Pagaduan made cash advances amounting to Seventy
Seven Thousand Nine Hundred and Eighty Pesos (P77,980.00) for payments to NVRC clients on December 11,
2001 but as of as of March 31 of 2004 , and no settlement was made and she has failed to observe the period for
liquidation of her cash advance which is within five (5) days after each fifteen (15) days/end of the month
period as prescribed under Section 5.1 of COA Circular No. 97-002;

Administrative Law
Legal Aspects of business
3. Due to non-liquidation, COA issued a formal demand letter dated April 27, 2001 to Pagaduan directing the latter to settle her

accountabilities within thirty calendar days from receipt of the said demand but despite the formal demand, Pagaduan failed to liquidate

her outstanding cash advances within the thirty-day period, thus, she should be charged with the administrative offense of Gross Neglect

of Duty.

4. On October 27, 2004, the CSC-NCR formally charged Pagaduan with Gross Neglect of Duty and directed her to submit her answer within

five (5) days from receipt thereof. She was informed on whether she elects to have a formal investigation of the case filed against her and

of her right to counsel of her own choice.

5. January 3, 2005, Pagaduan stated that she should not be administratively charged for Gross Neglect of Duty on account of the following

reosons: a robbery occurred at the cashier's office whereby one of the stolen items was the cash intended for NVRC clients and that she

immediately sent a letter to the DSWD-IICR Regional Director informing them of said incident and she has received a reply from the

Regional Director informing me that my request cannot be granted considering that the investigation of said incident had not yet been

completed.

Administrative Law
Legal Aspects of business

6. In light of the foregoing considerations, it is clear that there was no neglect of due on the part of Pagaduan on her failure to

liquidate the cash advance. The delay was principally caused by the inaction of DSWD officials in not completing the investigation

despite the lapse of a considerable length of time.

7. In July of 2009, the Legal Service of DSWD has already rendered a decision for the offense of Simple Neglect of Duty and

Infficiency, imposing the penalty of suspension for a period of two months and one day and with an order to pay the amount of

One Hundred Three Thousand Four Hundred Seventy Two Pesos (P103,472.00). The said suspension has already been served from

January 5 to March 6, 2009 per certificate issued by DSWD-NCR Personnel Unit while the amount will be paid on a staggered basis

beginning March 9, 2009.

8. On August 2011, a certification from DSWD-NCR stated that the One Hundred Three Thousand Four Hundred Seventy Two Pesos

(P103,172.00) had been fully paid deducted from the salary of Pagaduan.

Administrative Law
Legal Aspects of business

Issue: Whether there exists substantial evidence to find Pagaduan guilty of Gross Neglect of Duty.

Decision: After evaluating the entire records, the Commission finds no substantial evidence to find Pagaduan guilty of the
administrative offense of Gross Neglect of Duty. It is clear from the records that Pagaduan had already settled her cash
advance of P77,980.00 and the Commission warns Pagaduan to be more circumspect on her future dealings specifically in
observing the proper period to liquidate cash advances.

The administrative case for Gross Neglect of Duty filed against Alicia K. Pagaduan, then Cashier Il (now Chief Administrative
Officer), Finance Division, Department of Social Welfare and Development - National Capital Region (DSWD - NCR), Manila, is
hereby DISMISSED.

Administrative Law
Legal Aspects of business

THANK YOU!
Paula Bianca A. Soriano