.:;;" "!l'dr 
"wt: 
A<, 
FIFTEENTH CONGRESS OF THE REPUBLIC 
) 
If)t\1~ .. llf hI': i'l"" rbr~ 
OF THE PHILIPPINES 
) 
Second Regular Session 
) 
'11 
JUL 26 P 3 :13 
SENATE 
S. B. No.2917 
Introduced by Senator Jinggoy Ejercito Estrada 
EXPLANATORY NOTE 
Article II, Section 3 of the 1987 Constitution provides "Civilian 
authority is at all times supreme over the military. The Armed Forces of the 
Philippines is the protector of the people and the State. Its goal is to secure 
the sovereignty of the State and the integrity of the national territory." Thus, 
the Commander-in-Chief together with corps of warriors - able soldiers of 
the Armed Forces - are considered the defenders of the State. 
Recent events, however, particularly the anomalies uncovered during 
the legislative investigations in the Senate has evidently given the Filipinos a 
good glimpse of a contrary picture of the AFP. Now, seemingly, they are the 
"destroyers" of the State. 
This Bill therefore seeks, as propriety dictates, to reorganize the 
defense structure with reforms that would define the very strength of its 
leadership, its relevance to present and future challenges and one that 
would strengthen civilian authority. 
In view of the foregoing, approval of this Bill is hereby sought. 
1 


, 
FIFTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
Second Regular Session 
) 
SENATE 
S. B. NO. 2917 
~\ ,., tl 'I, }\ " 
,..~t,;, 
-1-'> 
.:. 
{~!h;r of tip: ~£t'\'\'1 rbr~ 
'11 
JUL 26 P 3 :13 
Introduced by Senator Jinggoy Ejercito Estrada 
AN ACT 
REORGANIZING THE DEPARTMENT OF NATIONAL DEFENSE (DND) AND 
THE ARMED FORCES OF THE PHILIPPINES (AFP) AND FOR OTHER 
PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
CHAPTER 1 
PRELIMINARY PROVISIONS 
SECTION 1. 
Title. - This Act shall be known as the "DND-AFP 
Reorganization Act of 20 11". 
SEC. 2. Declaration of Policy and Objectives. - It is hereby declared 
the policy of the State to strengthen civilian authority in the Department of 
National Defense (DND). 
Towards this end, the government shall implement reforms in the 
DND to immediately attain the following objectives: 
1. To reorganize the DND; 
2. To emphasize the chains of command; 
3. To set the roles of the Secretary of National Defense (SND), Chief of 
Staff AFP (CSAFP land Service Chiefs; 


• 
4. To improve the military advice provided to the President, the 
National Security Council, and the SND 
5. To place clear responsibility on the commanders of the area 
commands for the accomplishment of missions assigned and 
ensure 
that 
the 
authority 
of the 
commanders 
1S 
fully 
commensurate with that responsibility; 
6. To define the functions and place clear responsibility on the Service 
Chiefs for the accomplishment of missions in support of the Area 
Commands; 
7. To establish different DND agencies and prescribe its functions; 
8. To provide a system for more efficient use of defense resources. 
CHAPTER II 
THE DEPARTMENT OF NATIONAL DEFENSE 
SEC. 3. Composition of the DND. - The DND shall be headed by the 
SND and shall be composed of the following: 
1. The Office of the Secretary of National Defense (OSND); 
2. The AFP; 
3. The DND Agencies; and 
4. Such other offices, agencies, activities, and commands as may be 
established or designated by law or by the President. 
If the President establishes or designates an office, agency, 
activity, or command in the DND of a kind the President shall 
notify Congress not later than 60 days thereafter 
SEC. 4. - Chain of Command. - The Chain of Command shall be as 
follows: 
a. Operational Chain of Command. 
The operational chain of command shall run from the President to 
the SND to the Commanders of Area Commands. 
2 


b. Administrative Chain of Command. 
The administrative chain of command shall run from the President 
to the SND to the CSAFP to the service chiefs of the Philippine 
Army, Philippine Navy and Philippine Air Force. 
SEC. 5. Roles, functions and duties of the Secretary of National 
Defense. - The SND shall exercise authority, direction and control over all 
component agencies, offices and units of the DND. The main duty of the 
SND is to plan, develop and execute policies that concern the military affairs 
and national security of the country. 
He shall be responsible for the 
department's resource management; fiscal and program evaluation as well 
as proposing and enforcing military policies, procedures, and plans, 
including formulating strategic force structure plans, basic needs, and 
resolving inter-service conflict. 
SEC. 6. 
Roles, Duties and Responsibilities of the OSND.-
The 
Office of the Secretary of National Defense (OSND) shall be composed of the 
following: 
a) The Undersecretaries of DND; 
b) The Assistant Secretaries of DND; 
c) The Inspector General of DND; 
d) Such other offices and officials as may be established by law or the 
SND. 
Officers of the armed forces may be assigned or detailed to permanent 
duty in the OSND. However, the Secretary may not establish a military staff 
in the OSND. For this matter, and to maintain its integrity as a civilian 
office, the number active military personnel assigned to DND should not 
exceed ten (10) percent of the authorized DND personnel ceiling. 
The Service Chief of each branch of service, and the civilian employees 
of the Armed Forces, shall cooperate fully with personnel of the OSND to 
achieve efficient administration of the DND and to carry out effectively the 
authority, direction, and control of the SND. 
SEC. 7. Roles, functions and duties of the CSAFP. - The Chief of 
Staff of the AFP (CSAFP) shall be appointed by the President. He shall serve 
at the pleasure of the President for a term of two years. 
However, the 
3 


President may reappoint an officer serving as CSAFP for one (1) additional 
year after his term expires. 
In the event of the death, retirement or resignation, an officer 
appointed to fill the vacancy shall serve as CSAFP only for the remainder of 
the original term, but may be reappointed as provided in paragraph (1). 
The CSAFP shall perform the following: 
1) Act as Chairman of the Board of Generals (BOG); 
2) Subject to the authority, direction, and control of the President and 
the SND, the CSAFP shall be responsible for the following principal 
functions: 
(a) To advise and assist the SND on the preparation of annual 
policy guidance for the Heads of the DND Agencies for the 
preparation and review of program recommendations and 
budget proposals; 
(b) To advise the SND on the preparation of policy guidance for the 
preparation and review of contingency plans. 
(c) To serve as the spokesman for Commanders of the Area 
Commands, especially on the operational requirements of each 
commands. 
(d) To assist the President and the SND in providing for the 
strategic direction of the Armed Forces, including the direction 
of operations conducted by the Area Commanders. 
(e) To prepare strategic plans, including plans that conform with 
resource levels projected by the SND made available during the 
period for which the plans are to be effective. 
(f) 
To prepare military strategy and assessments. 
(g) To provide for the preparation and review of contingency plans 
those conform to policy guidance from the President and the 
SND. 
4 


(h) To advise the SND on critical deficiencies and strengths in force 
capabilities 
(including manpower, 
logistic, 
and 
mobility 
support) identified during the preparation and review of 
contingency plans, and assess the effect of such deficiencies 
and strengths on meeting national security objectives and 
policy and strategic plans. 
(i) To consult with the Area Commanders in order to establish and 
maintain a uniform system for evaluating the preparedness of 
each Command to carry out missions assigned. 
(j) To advise the SND on the priorities 
especially 
operational 
requirements, 
Commanders of the Area Commands. 
of the requirements, 
identified 
by 
the 
(k) To submit to the SND, when deemed necessary, alternative 
program recommendations and budget proposals within 
projected resource levels and guidance provided by the SND, to 
achieve greater conformance with the priorities established in 
strategic plans and with the priorities for the requirements of 
the Area Commanders. 
(1) 
To oversee the activities of the Area Commands. 
(m) To formulate policies regarding the military education and 
training of members of the Armed Forces. 
(n) To determine military requirements for defense acquisition 
programs; 
(0) To advise the SND on the extent to which the major programs 
and policies of the Armed Forces in the area of manpower 
conform with strategic plans. 
(p) 
To develop and establish doctrine for all aspects of the joint 
employment of the Armed Forces. 
(q) 
To 
submit 
to 
the 
SND, 
a 
report 
containing 
such 
recommendations for changes in the assignment of functions 
(roles and missions) to the Armed Forces necessary to achieve 
maximum effectiveness of the Armed Forces. 
5 


(r) To attend and participate in meetings of the NSC subject to the 
guidance and direction of the President and SND. 
Is) To advise and assist the SND on establishing Area Commands 
to perform military missions and on prescribing the force 
structure of those commands. 
(t) To transmit communications between the President or the SND 
and the Commanders of the Area Commands, as directed by the 
President. 
(u) To develop and maintain a uniform readiness reporting system 
for combat-support agencies, in consultation with the director of 
each agency. 
(v) To advise and assist the SND on the periodic review and revision 
of the curriculum of each professional military education school 
to enhance the education and training of officers particularly in 
joint matters. 
(w) To review the reports of selection boards that considers 
promotion of officers. 
(x) To advise the SND on the establishment of career guidelines for 
officers. 
(y) To submit to the SND an evaluation of the performance of 
officers recommended for promotion to star rank. 
(z) To review the plans and program of the Area Commanders to 
determine their adequacy and feasibility for the performance of 
assigned missions. 
(aa) To participate, as directed, in the preparation of combined 
plans for military action in conjunction with the Armed 
Forces of other nations. 
(bb) To determine the headquarters support, such as facilities, 
personnel, and communications, required by the Area 
Commands, and recommend the assignment to the 
6 


.' 
military service branch of the responsibilities for providing 
such support. 
(cc) To assess joint military requirements for command, control, 
and communications; recommend improvements; and 
provide guidance on aspects that relate to the conduct of 
joint operations. 
(dd) To prepare and submit to the SND, for information and 
consideration in connection with the preparation of 
budgets, statements 
of military requirements. 
These 
statements of requirements shall include tasks, priority of 
tasks, force requirements, and general strategic guidance 
for developing military installations and bases, and for 
equipping and maintaining military forces. 
(ee) In carrying out his functions, duties, and responsibilities, 
the CSAFP, shall, as considered appropriate, consult with 
and seek the advice of the service chiefs and the 
Commanders of the Area Commands. 
(ft) To perform such other duties as the President or the SND 
may prescribe. 
CHAPTER III 
MUitary Advisers to the President and SND 
SEC . 8. The Board of Generals (BOG). - There shall be in the DND 
the Board of Generals (BOG) headed by the CSAFP. The BOG shall consists 
of the following: 
a) The CSAFP as Chairman; 
b) The Vice Chief of Staff, AFP (VCSAFP) as the Vice Chairman; 
c) The Chief of the Army; 
d) The Chief of the Navy; 
e) The Chief of the Air Force. 
The Vice Chairman, while so serving, holds the grade of lieutenant 
general or, in the case of an officer of the Navy, vice admiral and outranks 
all other officers of the armed forces except the Chairman. 
7 


SEC. 9. Functions of the BOG Chairman. - Subject to the authority, 
direction, and control of the President and the SND, the BOG Chairman 
shall be the principal military adviser to the National Security Council and 
shall be responsible for the following: 
1) 
STRATEGIC DIRECTION. He shall assist the President and the 
SND in providing for the strategic direction of the armed forces. 
2) 
STRATEGIC PLANNING. 
(a) 
He shall prepare strategic plans, including plans which 
conform to the resource level projected by the SND to be 
available for the period of time for which the plans are to 
be affective. 
(b) 
He shall 
prepare joint logistic 
and mobility plans to 
support those strategic plans and recommending the 
assignment of logistic and mobility responsibilities to the 
armed forces in accordance with those logistic and 
mobility plans. 
(c) 
He shall perform net assessments to determine the 
capabilities of the armed forces with those of their 
potential adversaries. 
3) 
CONTINGENCY PLANNING. 
(a) 
He shall provide for the preparation and review of 
contingency plans which conform to policy guidance from 
the President and the SND. 
(b) 
He shall advise the SND on critical deficiencies and 
strengths in force capabilities, including manpower, 
logistic, and mobility support identified during the 
preparation and review of contingency plans and shall 
assess the effect of such deficiencies and strengths on 
meeting national security objectives and policy and on 
strategic plans. 
8 


• 
(c) 
He shall establish and maintain, after consultation with 
the commanders of the area commands, a uniform system 
of evaluating the preparedness of each such command to 
carry out missions assigned to the command. 
4) 
ADVICE ON PROGRAMS AND REQUIREMENTS 
(a) 
He shall advise the SND on the priorities of the 
requirements identified by the commanders of the area 
commands and chiefs of the service branches. 
(b) 
He shall advise the SND of the extent to which the program 
recommendations of the military departments and other 
components of the DND for a fiscal year conforms with 
the priorities established in strategic plans and with the 
priorities established for the requirements of the area 
commands. 
(c) 
He shall submit to the SND alternative program 
recommendations within projected resource levels and 
guidance provided by the Secretary, in order to achieve 
greater conformity with the priorities. 
(d) 
He shall recommend to the SND programs and logistical 
requirements of each service branch. 
(e) 
He shall recommend and assess military requirements for 
defense acquisition programs. 
5) 
DOCTRINE TRAINING AND EDUCATION. 
(a) 
He shall develop doctrine for the joint employment of the 
armed forces. 
(b) 
He shall formulate policies for the joint training of the 
armed forces. 
(c) 
He shall formulate policies for coordinating the military 
education and training of members of the armed forces. 
9 


" 
6) 
OTHER MATTERS. He shall perform such other duties as may 
be prescribed by law, the President, or the SND. 
In carrying out his functions, duties, and responsibilities, the 
Chairman shall, as he considers appropriate, consult with and seek 
the advice of the other members of the BOG and the commanders of 
the area command. 
In presenting advice with respect to any matter to the SND, the 
Chairman shall, as he considers appropriate, inform the SND, as the 
case may be, of the range of military advice and opinion with respect 
to that matter. 
SEC. 10. Advice and opinions of members other than the 
Chairman.-
Any member of the BOG may submit to the Chairman, advice 
or an opinion in disagreement with, or in addition to, the advice presented 
by the Chairman to the SND. If a member submits such advice or opinion, 
the Chairman shall present the advice or opinion of such member at the 
same time he presents his own advice to the Secretary of National Defense, 
as the case may be. 
The Chairman shall establish procedures to ensure that the 
presentation of his own advice to the SND is not unduly delayed by reason 
of the submission of the individual advice or opinion of another member of 
the BOG. 
The SND shall acknowledge the receipt of the dissenting opinion of a 
member through written communication addressed to the concerned BOG 
member and shall furnish a copy to the Chairman. 
SEC. 11. Advice on Request. The members of the BOG, individually 
or collectively, in their capacity as military advisers, shall provide advice to 
the SND on a particular matter when the SND request such advice. 
SEC. 12. Meeting of BOG. - The Chairman shall convene the regular 
meeting of the BOG. 
Subject to the authority, direction, and control of the 
President and the SND, the Chairman shall (1) preside over the meetings of 
the BOG; (2) provide agenda for the meetings of the BOG; and (3) determine 
when issues under consideration by the BOG shall be decided. 
10 


• 
SEC. 13. Functions of Other BOG Members. - The Vice Chairman 
performs such duties as may be prescribed by the CSAFP with the approval 
of the SND. In case of vacancy in the office of Chairman of BOG or in his 
absence or disability, the Vice Chairman shall act as Chairman and shall 
perform the duties of the Chairman until a successor is appointed or the 
absence or disability ceases. 
If there is a vacancy in the offices of both Chairman and Vice 
Chairman or in the absence or disability of both the Chairman and the Vice 
Chairman, or when there is a vacancy in one such office and in the absence 
or disability of the officer holding the other, the President shall designate a 
member of the BOG to act as and perform the duties of the Chairman until a 
successor to the Chairman or Vice Chairman is appointed or the absence or 
disability of the Chairman or Vice Chairman ceases. 
SEC. 14. Appointment of Officers to BOG. - There shall be a BOG 
staff under the Chairman. The BOG staff shall assist the Chairman and, 
subject to the authority, direction, and control of the Chairman, the other 
members of the BOG and the Vice Chairman in carrying out their 
responsibilities. 
Officers of the armed forces assigned to serve in the BOG shall be 
selected by the Chairman in approximately equal numbers from three 
services. 
Selection of officers from the armed forces to serve in the BOG shall be 
made by the Chairman from a list of officers submitted by the service chiefs 
having jurisdiction over that armed force. 
Each officer whose name is 
submitted shall be among those officers considered to be the most 
outstanding officers of that armed force. 
The Chairman may specifY the 
number of officers to be included on any such list. 
The Chairman of the BOG, after consultation with the other members 
and With the approval of the SND, may select an officer to serve as Director 
of the BOG. 
The Chairman may participate in all meetings of the BOG, but he 
may not vote on a matter before the BOG except when acting as Chairman. 
11 


• 
SEC. 15. Management of BOG. - The Chairman shall manage the 
BOG and the Director of the BOG. The BOG shall perform such duties 
under such procedures as the Chairman may prescribe. 
SEC. 16. Operation of BOG. - The SND shall ensure that the BOG is 
independently organized and operated so that the BOG supports the 
Chairman in meeting the congressional purpose set to provide for the 
unified strategic direction of the combat forces and for their operation under 
area command. 
The total number of members of the armed forces and civilian 
personnel assigned or detailed to permanent duty in the BOG shall not 
exceed 50. 
SEC. 17. Tour of Duty BOG Officers. 
(a) 
An officer who is assigned or detailed to permanent duty on the 
BOG may not serve for a tour of duty n more than three years. 
However, such a tour of duty may be extended with the approval 
of the SND. 
(b) 
In accordance with procedures established by the SND, the 
Chairman of the BOG may suspend from duty and recommend 
the reassignment of any officer assigned to the BOG. 
Upon 
receipt of such a recommendation, the SND 
shall promptly 
reassign the officer back to his service branch. 
SEC.IS. Participation in National Security Council Meetings.- The 
Chairman or, in his absence, the Vice Chairman of the BOG may, in his 
role as principal military adviser to the National Security Council and 
subject to the direction of the President, attend and participate in meetings 
of the National Security Council. 
CHAPTER 1V 
Area Commands 
SEC. 19. Establishment of Area Commands. - With the advice and 
assistance of the CSAFP, through the SND, shall establish area commands 
to perform military missions; and prescribe the force structure of those 
commands. 
12 


It shall be headed by an area commander with the title of 
Commanding General. 
Other than an Area Command that has specific area of responsibility 
and operation, there shall be an AirSpace Defense Command and Naval 
Defense Command that will primarily provide for the external defense 
requirement of the nation. 
SEC. 20. Periodic Review. - The CSAFP shall periodically review the 
missions, responsibilities, including geographic boundaries, and force 
structure of each area command and shall recommend to the President, 
through the SND, any changes to such missions, responsibilities, and force 
structures as may be necessary. 
The President shall notifY Congress not more than 60 days thereafter. 
For purposes of this Act, the term "area command" means a military 
command which has broad, continuing missions and which is composed of 
forces from three service branches operating within an specific geographical 
area of responsibility. 
SEC. 21. 
Assignment of Forces. - The Chiefs of the different 
Services shall assign all forces under their jurisdiction to area commands to 
perform missions assigned to those commands. Such assignments shall be 
made as directed by the Secretary of National Defense, including direction 
as to the command to which forces are to be assigned. 
The SND shall 
ensure that such assignments are consistent with the force structure 
prescribed by the President for each area command. 
A force assigned under an area command may be transferred from the 
command to which it is assigned only by authority of the SND; and under 
procedures prescribed by the Secretary. 
Except as otherwise directed by the SND, all forces operating within 
the geographic area assigned to an area command shall be assigned to, and 
under the command of the area commander of that command. 
SEC. 22. Chain of Command. - Unless otherwise directed by the 
President, the chain of command to the area command runs from the 
President to the SND; and from the Secretary of National Defense to the 
commander of the area command. 
13 


) 
• 
SEC. 23. Role of the CSAFP.- The CSAFP may be directed by the 
President 
1) to receive and transmit communications between the President or 
the SND and the commanders of area commands; and 
2) to assist the President and the SND in performing their command 
function. 
He may also be assigned, by the SND, the responsibility of overseeing 
the activities of the area commands. Such assignment by the SND to 
the CSAFP does not confer any command authority on the CSAFP and 
does not alter the responsibility of the commanders of the area 
commands. He may also be designated by the SND as the spokesman 
for the commanders of the area commands, especially on the 
operational requirements of their commands. 
In performing such 
function the CSAFP shall: 
(a) confer with and obtain information from the commanders of the 
area commands with respect to the requirements of their 
commands; 
(b) evaluate and integrate such information; 
(c) advise and make recommendations to the SND with respect 
to the requirements of the area commands, individually and 
collectively; and 
(d) communicate, as appropriate, the requirements of the area 
commands to other elements of the Department of National 
Defense. 
SEC. 24. Assignment of Area Commanders. -
The President may 
assign any officer to serve as the commander of an area command provided 
that he possesses joint specialty; and has served in at least one joint duty as 
a general or flag officer. 
SEC. 25. Responsibilities of Area commander. - The commander 
of an area command shall be responsible to the President and to the SND for 
the performance of missions assigned to that command by the President or 
by the Secretary with the approval of the President. 
14 


) 
• 
Subject to the direction of the President, the 
commander of area 
command shall: 
(1) perform his duties under the authority, direction, and control of 
the Secretary of National Defense; and 
(2) be directly responsible to the SND for the preparedness of the 
command to carry out missions assigned to the command. 
He shall also evaluate the duty performance of each commander of a 
command directly subordinate to the area commander; and 
submit the 
evaluation to the Service Chiefs and the CSAFP. 
SEC. 26. Command Authority of Area Commanders. - (a) Unless 
otherwise directed by the President or the SND, the authority, direction, 
and control of the commander of the area command with respect to the 
commands and forces assigned to that command include the following 
command functions of: 
(1) giving authoritative direction to subordinate commands and forces 
necessary to carry out missions assigned to the command, 
including authoritative direction over all aspects of military 
operations, joint training, and logistics; 
(2) prescribing the chain of command to the commands and forces 
within the command; 
(3) organizing commands and forces within that command 
considers necessary to carry out missions assigned 
command; 
as he 
to the 
(4) employing forces within the command as he considers necessary 
to carry out missions assigned to the command; 
(5) assigning command functions to subordinate commanders; 
(6) coordinating and approving those aspects of administration and 
support (including control of resources and equipment, internal 
organization, and training) and discipline necessary to carry out 
missions assigned to the command; and 
15 
• 


(7) exerclsmg the authority with respect to selecting subordinate 
commanders, selecting combatant command staff, suspending 
subordinates, and convening courts-martial. 
b) The SND shall ensure that a commander of an area command has 
sufficient authority, direction, and control over the commands and 
forces assigned to the command to exercise effective command over 
those commands and forces. 
In carrying out this Secretary shall 
consult with the Chief of Staff. 
c) If a commander of an area command at any time considers his 
authority, direction, or control with respect to any of the commands 
or forces assigned to the command to be insufficient to command 
effectively, the commander shall promptly inform the SND. 
SEC. 27. 
Authority of Area Commander over Subordinate 
Commanders.- The commander of the area command have authoritative 
direction has control over the commanders of commands and 
forces 
assigned to an area command all matters for which the commander of the 
area command has been assigned authority. 
SEC. 28. Selection of Subordinate Commanders. - (a) Any officer 
may be assigned to a position as the commander of a command directly 
subordinate to the area commander by the President or SND for assignment 
to that position, provided that there is concurrence by the area commander; 
and in accordance with procedures established by the SND. 
(b) The SND may waive the requirement under paragraph (a) for the 
concurrence of the commander of an area command with regard to the 
assignment (or recommendation for assignment) of a particular officer if the 
SND determines that such action is in the national interest. 
SEC. 29. Area Command Staff. - Each area command shall have a 
staff to assist the area in carrying out his responsibilities. 
Positions of 
responsibility on the area command staff shall be filled by officers from each 
of the armed services having significant forces assigned to the command. 
An officer may be assigned to a position the staff of an area command, 
may be recommended to the SND for assignment to that position, provided 
16 


that said assignment is with the concurrence of the area commander; and in 
accordance with procedures established by the SND. 
The area commander may suspend from duty and recommend the 
reassignment of any officer assigned to such area command. 
The SND may waive the requirement under paragraph (b) for the 
concurrence of the area commander with regard to the assignment (or 
recommendation for assignment) of a particular officer to serve on the staff 
of the area command if the SND determines that such action is in the 
national interest. 
SEC. 30. Authority to Suspend Subordinates. - In accordance with 
procedures established by the SND, the area commander may suspend from 
duty and recommend the reassignment of any officer assigned to such area 
command. 
CHAPTER V 
Establishment of Service Branches and Authority of Chiefs 
SEC. 31. Establishment of Service Branches. - With the advice and 
assistance of the CSAFP, the President, through the SND, shall establish 
Service Branches to perform military functions; and prescribe the 
organizational structure of those commands. For purposes of this Act, the 
term "Branch of Service" means a military command which has broad and 
continuing administrative missions. The three service branches are: (a) The 
Philippine Army (PA); (b) The Philippine Navy (PN); and (c) The Philippine Air 
Force. (PAF), each shall be headed by Service Chief addressed as a) Chief 
of the Army; b) Chief of the Navy; and c) Chief of the Air Force, respectively. 
SEC. 32. Periodic Review. - The CSAFP shall periodically review the 
missions, responsibilities and force structure of each service branch; and 
recommend to the President, through the SND, any 
changes to such 
missions, responsibilities, and force structures as may be necessary. 
The President shall notifY Congress not more than 60 days thereafter. 
Sec. 33. Chain of Command. - Unless otherwise directed by the 
President, the chain of command to the service branch runs from the 
President to the SND; from the Secretary of National Defense to the CSAFP; 
and from the CSAFP to the Service Chiefs. 
17 


SEC. 34. Assignment of Service Chief. - The President may assign 
any officer to serve as the commander of an area command provided that 
the officer has the joint specialty; and has served in at least one joint duty 
as a general 
or flag officer. 
SEC. 35. Responsibilities of Service Chiefs. - The Service Chief is 
responsible to the President, to the SND and the CSAFP for the performance 
of duties and responsibilities assigned to that Service Branch by the 
President or by the Secretary with the approval of the President. They are 
administrative military chiefs. They do not command operating units. 
Subject to the authority, direction, and control of the SND, the Service 
Chiefs are responsible to the SND for the following activities of their 
respective Service Branch: 
(1) The formulation of policies and programs that are fully consistent 
with national security objectives and policies established by the 
President and the SND; 
(2) The effective and timely implementation of policies, programs and 
instructions of the President or SND relating to the functions of 
each Branch of Service; 
(3) The carrying out of the functions so as to fulfill the current and 
future operational requirements of the Area Commands; 
(4) The effective cooperation and coordination between the military 
services and Agencies of the DND to provide for effective, efficient, 
and economical administration and to eliminate duplication; 
(5) 
The presentation and justification of the positions of their 
respective services on the plans, programs, and policies of the 
DND; 
(6) 
Such other activities prescribed by law or by the President or 
SND. 
SEC. 36. Functions of Service Chiefs. - Subject to the authority, 
direction, and control of the SND, Service Chiefs are responsible for the 
following functions: 
18 


• 
(1) To organize, train and eqUIp forces for assignment to Area 
Commands; 
(2) 
To 
determine 
Service 
force 
requirements 
and 
to 
make 
recommendations concerning 
force requirements to support 
national security objectives and strategy and to meet the 
operational requirements of the Area Commands; 
(3) 
To recommend to the CSAFP the assignment and deployment of 
forces to Area Commands established by the President through 
the SND 
(4) To administer Service forces; 
(5) 
To recruit, organize, train, and equip interoperable forces for 
assignment to the Area Commands; 
(6) To establish 
reserves of manpower, equipment and supplies for 
Service forces for effective employment of the Area Commands; 
(7) To maintain in readiness mobile reserve forces, properly 
organized, trained, and equipped for employment in emergency; 
(8) 
To develop and equip garrison, maintain bases and other 
installations, including lines of communication, and to provide 
administrative and logistics support for all forces and bases, 
unless otherwise directed by the SND; 
(9) To prepare and submit for their respective Service Branch, 
justifying before the DND including those assigned to Area 
Commands. The submissions logistic requirements of to the SND 
by the branch of service Shall be prepared on the basis, among 
other things, of the recommendations of Area Commanders and of 
Service component commanders of forces assigned to Area 
Commands; 
(10) To 
provide logistic support 
for Service forces, including, 
distribution, 
supply, equipment, and maintenance, unless 
otherwise directed by the SND; 
19 


• 
(11) To develop 
doctrines, 
procedures, 
tactics, and techniques 
employed by Service forces; 
(14) 
To coordinate/participate with other Service Branches in the 
development of the doctrines, procedures, tactics, techniques, 
training, publications, and equipment for joint operations; 
CHAPTER VI 
Establishment and Management of Defense Agencies 
SEC. 37. Establishment of Defense Agencies. - There shall be 
defense agencies directly under the OSND as follows: 
(a) Defense Intelligence Service (DIS) 
(b) Defense Logistics Service (DLS) 
(c) Defense Security Service (DSS); 
(d) Civil Defense Service (CDS); 
(e) Defense Procurement Service (DPS); 
(f) Defense Military Industries Service (DMIS); 
(g) Defense Internal Affairs Service (DIAS); 
(h) Defense Research and Development Service (DRDS); 
(i) Defense Installation and Real Estate Service (DIRES); 
(j) Defense Commissary Service (DCS); 
(k) Defense Health Service (DHS); 
(1) Defense Education and Training Service (DETS); 
(m) Defense Morale and Welfare Service (DMWS); 
(n) Defense Military Operations Service (DMOS); 
(0) Defense Legal Service (DLES); 
(p) Defense Finance Service (DFS); 
(q) Defense Accounting Services (DAS). 
2) The abovementioned Defense Agencies shall be by a Director 
designated by SND for the approval of the President. 
3) The following AFP Wide Service Supports Units (AFPWSUSJ, GHQ 
units/offices and their Service Branch counterparts shall be absorbed and 
be placed directly under the direction, control and supervision of the 
Secretary of National Defense through DND bureau: 
20 


• 
(a) ISAFP to DIS; 
(b) PMA and other service schools to DETS; 
(c) PSG and 250th PAW, PAF to DSS; 
(d) AFP Procurement Center to DPC; 
(e) AFPCES to DCS; 
(f) 
72-100 RFU to DCS; 
(g) Finance Service/Units to DFS; 
(h) Accounting Offices to DAS; 
(i) JAGO to DLS; 
(j) AFPMC/ All Military Hospitals to DHS; 
(k) Offices of Internal Auditors to OSND Internal Audit; 
(1) AFP RDC to DRDS; 
(m) All Military Police Units to DIRES; 
SEC. 38. Functions: 
1) 
Defense Intelligence Service (DIS) -The Defense Intelligence 
Service (DIS) is a Combat Support Agency of the Department of 
National Defense (DND) and reports to the USec for Intelligence. Its 
functions are as follows: 
(a) collects, produces, or, through tasking and coordination, 
provides military and military-related intelligence for the SND, 
the DND Components, and, as appropriate, non-Defense 
agencies; 
(b) collects and provides military intelligence for national foreign 
intelligence and counter-intelligence products and coordinates 
all DND intelligence collection requirements; 
(c) manages the Defense Attache' system; 
(c) provides intelligence units to Area Commands. Such units are 
under the operational control of the Area Commander. DIS 
provides the administrative support to those units; 
(e) Performs other functions as directed by the SND. 
2) Defense Logistic Service (DLS) - The Defense Logistic Service (DLS) 
is a Combat Support Agency of the Department of National Defense 
(DND) and reports to the Usec Logistic. Its functions are as follows: 
21 


(a) Provides nationwide logistic support for the mission of the 
Service branches and the Area Commands under condition of 
peace and conflict; 
(b) Provides logistics support to other DND Components and 
certain national agencies and others as authorized; 
(c) Provides material commodities and items of supply that have 
been determined, through the application of approved criteria, 
to be appropriate for integrated management by DLS on behalf 
of all DND Components, or that have been otherwise 
specifically assigned by appropriate authority. 
(d) Furnishes logistics services directly associated with the supply 
management function and other support services; 
(e) Maintains a wholesale distribution system for assigned items. 
Provides contract administration service in support of the 
service branches, other DND Components, civil agencies and 
others as authorized; 
(t) Performs other functions as directed by the SND. 
3) Defense Military Operations Service (DMOS) - The Defense 
Military Operations Service (DMOS), reports to the USEC National 
Defense Operations). Its functions are as follows: 
(a) DMOS is responsible for monitoring of all military operations, 
troop deployment and employment; and subdivision and 
assignment of Area Command AORs; 
(b) 
Administers and implements the DND Campaign Plans and 
performs assigned functions for the Crisis Management; 
(e) 
Controls employment and utilization of all major operational 
assets like Airlift and Sealift; 
(d) 
Provides and assigns military units for CDS and for other 
disaster related operations; 
22 


• 
(e) Controls employment of special operations units and teams to 
the Area Commands; 
(f) performs other functions as directed by the SND. 
4) 
Defense Security Service (DSS) - The Defense Security Service 
(DSS), reports to the Undersecretary of National Defense 
(Intelligence). Its functions are as follows: 
(a) 
Responsible for personnel security investigations, industrial 
security management; automated systems security, education, 
training, and examinations; and, security research, education, 
and training; 
(b) Administers and implements the Defense Security Program; 
(c) Responsible for the security of the VIPs in the government; 
(d) performs other functions as directed by the SND. 
5) Defense Finance Service (DFS) - The Defense Finance Service (DFS) 
reports to the Undersecretary of National Defense (Comptroller). 
DFS is responsible for standardizing financial information that will 
be accurate, comprehensive, and timely. 
Its functions are as 
follows: 
(al Direct finance requirements, systems and functions for all 
appropriated and non-appropriated, working capital, revolving 
and trust fund activities; 
(b) Establish and enforce requirements, principles, standards, 
systems, procedures, and practices necessary to comply with 
finance statutory and regulatory requirements applicable to 
the DND; 
(c) Provide finance services for DND Components and other 
activities, as designated by the Under Secretary of National 
Defense (Comptroller); 
(d) And direct the consolidation, standardization, and integration 
of finance requirements, functions, procedures, operations, 
23 


• 
, 
• 
and systems within the DND and ensure their proper 
relationship with other DND functional areas (e.g., budget, 
personnel, logistics, acquisition, civil engineering, etc.). 
6) 
Defense Accounting Service (DAS) -
The Defense Accounting 
Service (DFS) reports to the Under Secretary of National Defense 
(Comptroller). 
DAS is responsible for standardizing accounting 
information that will be accurate, comprehensive, and timely. Its 
functions are as follows: 
(a) Direct accounting requirements, systems and functions for all 
appropriated and non-appropriated, working capital, revolving 
and trust fund activities; 
(b) 
Establish and enforce requirements, principles. Standards, 
systems, procedures, and practices necessary to comply with 
accounting statutory and regulatory requirements applicable 
to the DND; 
(c) 
Provide accounting services for DND Components and other 
activities, as designated by the Under Secretary of National 
Defense (Comptroller); 
(d) And direct the consolidation, standardization, and integration 
of finance requirements, functions, procedures, operations, 
and systems within the DND and ensure their proper 
relationship with other DND functional areas (e.g., budget, 
personnel, logistics, acquisition, civil engineering, etc.). 
7) 
Defense Commissary Service (DCS) - The Defense Commissary 
Service (DCS) reports to the Under Secretary of National Defense 
for Logistics and subject to the operational supervision of the 
Commissary Operating Board. Its functions are as follows: 
(a) Responsible for providing an efficient and effective nationwide 
system of commissaries for the resale of groceries and 
household supplies at the lowest practical price (consistent 
with quality) to members of the Military Services, their 
families, and other authorized patrons, while maintaining high 
standards for quality, facilities, products, and service; 
24 


• 
, 
• 
(b) 
Make available hardware, supplies including POL and 
medicines for use of the AFP and other DND agencies; 
(c) 
Performs other functions as directed by the SND. 
8. Defense Legislative and Legal Services (DLLS) - The Director, DLLS, 
provides legal advice and services for the Defense Agencies, and 
other assigned organizations. Its functions include: 
(a) Technical support and assistance for development of the DND 
Legislative Program; 
(b) Coordinating DND positions on legislation and Presidential 
Executive Orders; 
(c) Providing a centralized legislative document reference and 
distribution point for the DND; 
(d) Maintaining the Department's historical legislative files; 
(e) 
Developing DND policy for standards of conduct and 
administering such programs for the OSND and other 
assigned organizations; 
(f) Supervises the AFP JAGO; 
(g) Performs other functions as directed by the SND. 
9) Defense Installation and Real Estate Services (DIRES) - reports to 
the Under Secretary of National Defense (Logistics). Its functions 
are as follows: 
(al 
Responsible for planning and maintenance of defense and 
camp facilities, camp security, including water, lights 
services of all military camps. Camp facilities shall include: 
Area Command Hqs 
Airstrips and helipads 
Chapels 
Parade Grounds 
Libraries 
Hospitals 
Museums 
Warehouses 
Depots 
Motorpool 
25 
Recreation Facilities 
Docks and Piers Quarters 
Detention Centers 
Firing range 
Training complex 


· 
.' 
Defense Commissaries 
Troop billet inside camp 
Water tanks, pumps 
Telephone exchange 
Fences and barricades 
Mess halls 
POL stations 
Hangars 
Sports complex 
Roads and bridges 
Powerhouse, Electricity & 
Power districe 
Parks, shrines and 
Cemeteries 
Schools inside camp 
(b) Keeps all inventories of all defense fIxed assets including 
assets maintained by the military Branches of Service; 
(c) Administers and implements uniform fIxed assets designs for 
construction; 
(d) Performs other functions as directed by the SND. 
10) Defense Procurement Service (DPS) - The Defense Procurement 
Service (DPS) reports to the Undersecretary of National Defense 
for Logistics. Its functions are as follows: 
(a) Responsible for the acquisition of material, equipment and 
services, for the Defense department; 
(b) Supervise all matters related to the procurement of goods and 
services for the Defense department; 
(c) Responsible for the formulation and review defense acquisition 
policy; 
(d) Performs other functions as directed by the SND. 
SEC. 39. Creation and Abolition. -
The SND, subject to the 
authority of the President, may create or abolish, activate or deactivate, fIll 
or unfill any office or unit within the department. Moreover, all non-core 
functions and tasks of the military shall be outsourced and that duplication 
of commands' /units' / offices' duties and responsibilities shall be avoided. 
SEC. 40. Management of Defense Resources. - The DND shall be 
the sole Budgetary Unit of the whole department. 
It shall handle all 
Financial Management of the whole department. This function cannot be 
and shall not be delegated to its agencies and lower units. 
26 


The AFP and other bureaus, offices and units under DND shall handle 
materiel management functions. 
CHAPTER VII 
FINAL PROVISIONS 
SEC.41. 
Implementing Rules _ The DND shall within ninety (90) 
days from the effectivity of this Act promulgate the appropriate rules and 
regulations for its effective implementation. 
SEC. 42. Separability Clause. - If any part or section of this Act is 
declared unconstitutional or invalid, such other parts or sections not 
affected thereby shall remain in full force and effect. 
SEC. 43. 
Repealing Clause. - All laws, decrees, proclamations, 
executive orders, rules and regulations inconsistent with any provisions of 
this Act shall be deemed repealed or modified accordingly. 
SEC. 44. Effectivity. -This Act shall take effect after fifteen (15) 
days following its complete publication in at least two (2) newspapers of 
general circulation. 
Approved, 
27