Trans Action Overseas Corp vs Castigador : 109583 : September 5, 199... http://sc.judiciary.gov.ph/jurisprudence/1997/sep1997/109583.htm eventually denied for lack of merit, and the April 5, 1991, order revoking its license was reinstated. Petitioner contends that Secretary Confesor acted with grave abuse of discretion in rendering the assailed orders on alternative grounds, viz.: (1) it is the Philippine Overseas Employment Administration (POEA) which has the exclusive and original jurisdiction to hear and decide illegal recruitment cases, including the authority to cancel recruitment licenses, or (2) the cancellation order based on the 1987 POEA Schedule of Penalties is not valid for non-compliance with the Revised Administrative Code of 1987 regarding its registration with the U.P. Law Center. Under Executive Order No. 797[3] (E.O. No. 797) and Executive Order No. 247 (E.O. No. 247),[4] the POEA was established and mandated to assume the functions of the Overseas Employment Development Board (OEDB), the National Seamen Board (NSB), and the overseas employment function of the Bureau of Employment Services (BES). Petitioner theorizes that when POEA absorbed the powers of these agencies, Article 35 of the Labor Code, as amended, was rendered ineffective. The power to suspend or cancel any license or authority to recruit employees for overseas employment is vested upon the Secretary of Labor and Employment. Article 35 of the Labor Code, as amended, which provides: ART. 35. Suspension and/or Cancellation of License or Authority. - The Minister of Labor shall have the power to suspend or cancel any license or authority to recruit employees for overseas employment for violation of rules and regulations issued by the Ministry of Labor, the Overseas Employment Development Board, and the National Seamen Board, or for violation of the provisions of this and other applicable laws, General Orders and Letters of Instructions. In the case of Eastern Assurance and Surety Corp. v. Secretary of Labor,[5] we held that: The penalties of suspension and cancellation of license or authority are prescribed for violations of the above quoted provisions, among others. And the Secretary of Labor has the power under Section 35 of the law to apply these sanctions, as well as the authority, conferred by Section 36, not only to restrict and regulate the recruitment and placement activities of all agencies, but also to promulgate rules and regulations to carry out the objectives and implement the provisions governing said activities. Pursuant to this rule-making power thus granted, the Secretary of Labor gave the POEA,[6] on its own initiative or upon filing of a complaint or report or upon request for investigation by any aggrieved person, x x (authority to) conduct the necessary proceedings for the suspension or cancellation of the license or authority of any agency or entity for certain enumerated offenses including 1) the imposition or acceptance, directly or indirectly, of any amount of money, goods or services, or any fee or bond in excess of what is prescribed by the Administration, and 2) any other violation of pertinent provisions of the Labor Code and other relevant laws, rules and regulations.[7] The Administrator was also given the power to order the dismissal of the case or the suspension of the license or authority of the respondent agency or contractor or recommend to the Minister the cancellation thereof.[8] (Underscoring supplied) This power conferred upon the Secretary of Labor and Employment was echoed in People v. Diaz,[9] viz.: A non-licensee or non-holder of authority means any person, corporation or entity which has not been issued a valid license or authority to engage in recruitment and placement by the Secretary of Labor, or 4 of 5 1/24/2016 11:31 PM