Section 1. Sections 5, 8, 9, 10 and 11 of Executive Order No. 125, otherwise known as the Reorganization Act of the Ministry of Transportation and Communications, are hereby amended to read as follows:

"SECTION 5. Powers and Functions. — To accomplish its mandate, the Department shall have the following powers and functions:

  1. Formulate and recommend national policies and guidelines for the preparation and implementation of integrated and comprehensive transportation and communications systems at the national, regional and local levels;

  2. Establish and administer comprehensive and integrated programs for transportation and communications, and for this purpose, may call on any agency, corporation, or organization, whether public or private, whose development programs include transportation and communications as an integral part thereof, to participate and assist in the preparation and implementation of such program;

  3. Assess, review and provide direction to transportation and communications research and development programs of the government in coordination with other institutions concerned;

  4. Administer and enforce all laws, rules and regulations in the field of transportation and communications;

  5. Coordinate with the Department of Public Works and Highways in the design, location, development, rehabilitation, improvement, construction, maintenance and repair of all infrastructure projects and facilities of the Department. However, government corporate entities attached to the Department shall be authorized to undertake specialized telecommunications, ports, airports and railways projects and facilities as directed by the President of the Philippines or as provided by law;

  6. Establish, operate and maintain a nationwide postal system that shall include mail processing, delivery services, and money order services and promote the art of philately;

  7. Issue certificates of public convenience for the operation of public land and rail transportation utilities and services;

  8. Accredit foreign aircraft manufacturers and/or international organizations for aircraft certification in accordance with established procedures and standards;

  9. Establish and prescribe rules and regulations for identification of routes, zones and/or areas of operations of particular operators of public land services;

  10. Establish and prescribe rules and regulations for the establishment, operation and maintenance of such telecommunications facilities in areas not adequately served by the private sector in order to render such domestic and overseas services that are necessary with due consideration for advances in technology;

  11. Establish and prescribe rules and regulations for the operation and maintenance of a nationwide postal system that shall include mail processing, delivery services, money order services and promotion of philately;

  12. Establish and prescribe rules and regulations for issuance of certificates of public convenience for public land transportation utilities, such as motor vehicles, trimobiles and railways;

  13. Establish and prescribe rules and regulations for the inspection and registration of air and land transportation facilities, such as motor vehicles, trimobiles, railways and aircrafts;

  14. Establish and prescribe rules and regulations for the issuance of licenses to qualified motor vehicle drivers, conductors, and airmen;

  15. Establish and prescribe the corresponding rules and regulations for the enforcement of laws governing land transportation, air transportation and postal services, including the penalties for violations thereof, and for the deputation of appropriate law enforcement agencies in pursuance thereof;

  16. Determine, fix and/or prescribe charges and/or rates pertinent to the operation of public air and land transportation utility facilities and services, except such rates and/or charges as may be prescribed by the Civil Aeronautics Board under its charter, and, in cases where charges or rates are established by international bodies or associations of which the Philippines is a participating member or by bodies or associations recognized by the Philippine government as the proper arbiter of such charges or rates;

  17. Establish and prescribe the rules, regulations, procedures and standards for the accreditation of driving schools;

  18. Administer and operate the Civil Aviation Training Center (CATC) and the National Telecommunications Training Institute (NTTI); and

  19. Perform such other powers and functions as may be prescribed by law, or as may be necessary, incidental, or proper to its mandate or as may be assigned from time to time by the President of the Republic of the Philippines."

"SECTION 8. Undersecretaries. — The Secretary shall be assisted by four (4) Undersecretaries Appointed by the President upon the recommendation of the Secretary.

"SECTION 9. Assistant Secretaries and Service Chiefs. — The Secretary shall also be assisted by eight (8) Assistant Secretaries appointed by the President upon the recommendation of the Secretary, each of whom shall respectively be responsible for the following four (4) staff offices composed of eight (8) services and four (4) line offices, and shall report to the respective Undersecretaries assigned by the Secretary, which Undersecretary shall have control and supervision over said respective services and offices:

  1. Office of the Assistant Secretary for Administrative and Legal Affairs;

    1. Administrative Service, and

    2. Legal Service

  2. Office of the Assistant Secretary for Finance and Comptrollership;

    1. Finance and Management Service, and

    2. Comptrollership Service

  3. Office of the Assistant Secretary for Planning and Project Development;

    1. Planning Service, and

    2. Project Development Service

  4. Office of the Assistant Secretary for Management Information Service and Project Management;

    1. Management Information Service, and

    2. Project Management Service

  5. Office of the Assistant Secretary for Land Transportation;

  6. Office of the Assistant Secretary for Postal Services;

  7. Office of the Assistant Secretary for Telecommunications;

  8. Office of the Assistant Secretary for Air Transportation.

"Each of the above-named services shall be headed by a service chief appointed by the President upon the recommendation of the Secretary."

"SECTION 10. Structural Organization. —

"The Department, aside from the Department proper which is comprised of the Offices of the Secretary, Undersecretary and Assistant Secretaries shall include the Department regional offices and the attached agencies and corporations referred to in Section 14 hereof.

"The Office of the Secretary shall have direct line supervision and control over the Department regional offices. The Department proper shall be responsible for developing and implementing policies, plans, programs and projects for the Department.

"SECTION 11. Department Regional Offices. — The Department shall have three (3) Department Regional Offices in each of the administrative regions of the country: the Department Regional Office for land Transportation, the Department Regional Office for Telecommunications and the Department Regional Office for Postal Services. The present Regional Offices of the Land Transportation Commission are hereby abolished and their functions are transferred to the respective Department Regional Offices for Land Transportation. The present Regional Offices of the Bureau of Telecommunications are hereby abolished and their functions are transferred to the respective Department Regional Offices for Telecommunications. The present Regional Offices of the Bureau of Posts are hereby abolished and their functions are transferred to the corresponding Department Regional Offices for Postal Services. Each Department Regional Office shall be headed by a Department Regional Director and assisted by a Department Assistant Regional Director. The present Airport Offices of the Bureau of Air Transportation are hereby abolished and their functions are transferred to the Department Airport Offices. The abolition of the herein Regional Offices and the transfer of their functions shall be governed by the provisions of Section 15 (b) hereof.

"The Department Regional Offices shall essentially be line in character and shall be responsible for the delivery of all front line services of the Department.

"For such purposes, the Department Regional Offices shall have, within their respective administrative regions, the following functions:

  1. Implement laws, and policies, plans, programs, projects, rules and regulations of the Department;

  2. Provide efficient, and effective service to the people;

  3. Coordinate with regional offices of other departments, offices and agencies;

  4. Coordinate with local government units;

  5. Perform such other functions as may be provided by law."