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WHEREAS, Executive Order (EO) 292 the Administrative Code of 1987 and EO 112 of 1999 defines the mandate of the Department of National Defense (DND) as follows: Guard against external and internal threats to national security, promote the welfare of soldiers and veterans, and provide support to socio-economic development;

WHEREAS, under the laws creating the DND there are three (3) Undersecretaries of Defense: for (1) Munitions, as provided by RA 1884, (2) National Defense as provided by EO 292 and (3) Civil Relations, as provided by PD 876 as amended by PD 1895;

WHEREAS, EO 292 provides for an indeterminate number of Assistant Secretaries and such other bodies as are provided by law.

WHEREAS, under EO 292 the Executive Staff shall be composed of the (1) Staff for Plans and Programs, (2) Staff for Installation and Logistics, (3) Staff for Public Affairs, (4) Staff for Strategic Assessment, (5) Staff for Comptrollership, (6) Staff for Personnel and (7) the Legal Service; while the Service Staff shall be composed of the (1) Administrative Services and (2) Information Management Staff, and there shall be a Personal Staff as may be determined by the Secretary.

WHEREAS, under EO 292 no member of the armed forces in the active service shall be appointed or designated in any capacity to a civilian position in the Government;

WHEREAS, in 1992 the Undersecretary for Munitions was replaced by an Undersecretary for Veterans and Reserve Affairs;

WHEREAS, the Executive Staff has by practice been headed by Assistant Secretaries;

WHEREAS, in 1992 two (2) Assistant Secretaries were transformed into Office Chiefs; for Legal Service and Strategic Assessment, while the Assistant Secretary for Public Affairs was transformed into an Office Chief for Legislative Affairs.

WHEREAS, pursuant to DO 170 dated 22 September 2003 and DO 175 dated 24 September 2003 there were five (5) Undersecretaries, (5) Assistant Secretaries and (8) Service Staff;

WHEREAS, during the incumbency of Sec. Avelino J. Cruz, Jr., there were six (6) Undersecretaries, eight (8) Assistant Secretaries and nine (9) Office Chiefs;

WHEREAS, the General Appropriations Act (GAA) for the period January 1, 2005 - December 31, 2005, as reenacted in 2006, Sec. 78 of the General Provisions provides that the appointment of officers and employees shall be limited to the number of authorized positions in the plantilla of personnel approved pursuant to the organization structure provided for in the law creating such department, bureau, office or agency;

WHEREAS, Administrative Order (AO) No. 165 dated 12 December, 2006 provided for seven (7) Assistant Secretaries:

WHEREAS, the same GAA provided for five (5) Assistant Secretaries;

NOW, THEREFORE, I, GLORIA M. ARROYO, President of the Philippines and Acting Secretary of National Defense, by the powers vested in me by law and the Constitution do hereby order:

The DND is hereby reorganized as follows:

1. There shall be three (3) Undersecretaries, for (1) Defense Affairs; (2) Civil, Veterans and Reserve Affairs and (3) Legal Affairs and Special Concerns. Undersecretary Antonio Santos shall serve as Undersecretary for National Defense. Undersecretary Ernesto Carolina shall serve as Undersecretary for Civil, Veterans and Reserve Affairs. Undersecretary Ricardo Blancaflor shall serve as Undersecretary for Legal and Special Concerns. Undersecretary Ariston delos Reyes shall continue to serve as Presidential Assistant seconded to the DND as Undersecretary for Internal Affairs. Incoming Presidential Assistant Mateo Mayuga shall be seconded to the DND as Undersecretary for Armed Forces Modernization Affairs.
   
   
2. There shall be five (5) Assistant Secretaries to head five (5) Executive Staff: (1) Plans and Programs, to be headed by Assistant Secretary Robert Emmanuel Feliciano; (2) Installation and Logistics, to be headed in acting capacity by Director Lamberto Sillona; (3) Strategic Assessment, namely Assistant Secretary Ma. Joji Aragon; (4) Comptrollership, namely Assistant Secretary Roberto Nuqui and (5) Personnel, namely Assistant Secretary Ruben Ciron.
   
   
3. The Executive Staff for Comptrollership shall handle financial matters.
   
   
4. Director Sillona shall be assessed for promotion to Assistant Secretary by the DND Promotions Board, which shall be headed by Undersecretary de los Reyes.
   
   
5. There shall be four (4) Directors, to head two (2) Executive Staff and two (2) Office Staff: for (1) Executive Staff for Public and Legislative Affairs, to be headed by Office Chief Rosulo Manlangit; (2) Executive Staff for the Legal Service, to be handled by Office Chief Norman T. Daanoy; (3) Administrative Services Office, headed by Director Mac Orendain and (4) Information Management Office, headed by Director Ramon Martinez.
   
   
6. Office Chiefs Manlangit and Daanoy shall be assessed for promotion to Director by the Promotions Board.
   
   
7. Lt. Col. Leoel Santos shall be assigned by the Armed Forces (AFP) Chief of Staff to assist the Secretary in Defense Intelligence. The nature of the assignment shall be similar to that of a Defense Attache.
   
   
8. The Internal Audit unit shall be part of the Personal Staff of the Secretary.
   
   
9. The appointment or designation of members of the armed forces in the active service as Office Chiefs is hereby nullified.
   
   
10. Ma. Edna Guevara is hereby appointed Assistant Director at the Office of the Administrative Service Office, while Gladys Cagadoc is hereby appointed as Assistant Director for the Legal Service, in both cases without diminution in rank and compensation.
    
    
11. The Undersecretary for Defense Affairs shall assist the Secretary in assisting the Commander-in-Chief regarding AFP affairs. He shall assist the Secretary in supervising the Government Arsenal, the National Defense College of the Philippines, the Staff for Plans and Programs, the Staff for Installation and Logistics and the Staff for Strategic Assessment.
    
    
12. The Undersecretary for Civil, Veterans and Reserve Affairs shall assist the Secretary in supervising the Philippine Veterans Administration Office, the Veterans Memorial Medical Center, the Office of Civil Defense and the National Disaster Coordinating Council, the AFP Retirement Security and Benefits System and the Staff for Public and Legislative Affairs.
    
    
13. The Undersecretary for Legal Affairs and Special Concerns shall assist the Secretary in supervising the Legal Service.
    
    
14. The Undersecretary for Internal Affairs shall assist the Secretary in supervising the Staff for Comptrollership, the Staff Personnel, the Administrative Services Office and the Information Management Office.
    
    
15. The Undersecretary for Armed Forces Modernization Affairs shall assist the Secretary in implementing the Armed Forces Modernization Law and the Philippine Defense Reform. He shall supervise the DND Bids and Awards Committee.
    
    
16. The DND Bids and Awards Committee shall be composed of the following:
    
    Regular members:
    
    Chairman - Assistant Secretary Roberto Nuqui
    Vice-Chairman - Assistant Director Gladys Cagadoc
    Member - Assistant Director Edna Guevarra
    Member - Brigadier General Jerry Jalandoni
    
    
    Provisional members:
    
    Lt. General Antonio Romero for all Modernization procurement, and one (1) representative the end user Major Service for the procurement involved.
    
    
    Observers:
    
    Chairman - Undersecretary Mateo Mayuga
    Vice Chairman - Undersecretary Pedro Cabuay representing the National Security Council
    Member - Undersecretary Roberto Tan representing the Department of Finance
    Member - one (1) representative from the Philippine Chamber of Commerce and Industry
    Member - one (1) NGO representative
    
    
    
17. AO 165 is hereby amended accordingly.

Adopted: 31 Dec. 2006


(SGD.) GLORIA M. ARROYO
President of the Philippines

By the President:

(SGD.) EDUARDO R. ERMITA
Executive Secretary