DOTr order clips admin powers of some of its attached agencies


The Department of Transportation (DOTr) has issued an order that reduces the key functions and authority of some of its attached agencies.

Based on Department Order 2023-007 dated February 28, 2023, the transport department removed several functions from the Metro Rail Transit (MRT) 3 Management, the Land Transportation Office (LTO), the Land Transportation Franchising and Regulatory Board (LTFRB), and Philippine Railways Institute (PRI).

The same order also reduced the authority of some of its regional offices such as those in the Cordillera Autonomous Region (CAR) and the Caraga Administrative Region.

The 13-page order limited the scope of administrative, procurement, disbursement, and approval powers of the aforesaid agencies.

With the order, the above mentioned agencies now need to seek approval from the DOTr “undersecretary concerned” for contracts above P50 million. The document noted that for the most part, the Transportation Undersecretary for Administration and Finance would have the approving powers for such contracts.

Transactions, including advance payment, billing, and fund transfer to agencies where the contract is P50 million and above shall now be subject to the approval of the Transportation Secretary himself.

Aside from transactions, the order also limited the administrative functions of the attached agencies, transferring to the DOTr Undersecretary for Administration and Finance the following functions: engaging job order and contract service workers as well as appointment and/or contracts, renewal notice of termination, approval of expiration of contracts, acceptance of resignation, and dropping from the rolls.

Furthermore the Undersecretary for Administration and Finance was likewise designated as approving authority for administrative matters in attached agencies such as requests to render overtime pay of employees, application for leave, terminal leave, office clearance, issuance of travel authority, nomination to local and foreign scholarships, vehicle assignments, and other matters.

The order claimed that its goal is to “ensure an efficient and effective flow of operations, harmonize responsibilities, and enhance work efficiency in the department.”