WHEREAS, this Administration recognizes the need to develop means and methods to promote transparency, efficiency and public accountability in the use of government resources;

WHEREAS, energy self-reliance and environmental protection necessitate the rationalization of petroleum consumption by government offices; and

WHEREAS, the process of acquiring new motor vehicles could be further streamlined thereby promoting efficiency and practicability.

NOW, THEREFORE, I, BENIGNO S. AQUINO III, President of the Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Section 4.0 of Administrative Order (AO) No. 233 (s. 2008) is hereby amended to read as follows:

œ4.0 In this connection, all government offices are hereby directed to account for all their motor vehicle units, prepare a disposal program for all luxury motor vehicles and submit within six (6) months a compliance report to the Department of Budget and Management (DBM) and OP. 

SECTION 2. Section 8.0 of AO No. 233 is hereby amended to read as follows:

œ8.0 Local Chief Executives, including Punong Barangays, are hereby authorized to approve the acquisition of the types of motor vehicles enumerated under Section 7.0 hereof to be sourced from their unencumbered local funds. However, for acquisitions of said vehicles to be sourced from the national government funds under the General Appropriations Act, the LGU shall seek the approval of the Secretary of Budget and Management for motor vehicles under Section 7.0 or the Secretary of the Interiorjand Local Government for other motor vehicles as provided under Section 9.0 hereof. 

SECTION 3. Section 9.0 of AO No. 233 is hereby amended to read as follows:

œ9.0 The authority to evaluate, recommend and approve the purchase of the following types of motor vehicles, which are not classified under Section 2.0 or 7.0, is delegated to the followinq:

9.1 For motor vehicle acquisitions of departments, attached agencies. GOCCs, and GFIs, devaluating and recommending authority is vested with DBM, while the approving authority is vested, with the department secretary concerned;

9.2 For motor vehicle acquisitions of LGUs, the approving authority is vested with DILG; and

9.3 For motor vehicles of other government offices/agencies not covered by the foregoing, the evaluating and recommending authority is vested with DBM, while approving authority is vested with OP. 

SECTION 4. Implementing Guidelines. All acquisition bf motor vehicles shall comply with applicable budgetary, procurement and auditing laws, regulations and standards. The OP, in coordination with DBM and DILG, is hereby directed to provide necessary guidelines to effectively implement the provisions of this Order, within sixty (60) days from effectivity hereof.

SECTION 5. Separability. If any provision of this Administrative Order is declared invalid or unconstitutional, the other provisions unaffected shall remain valid and subsisting.

SECTION 6. Repeal. All orders, issuances or parts thereof, which are inconsistent with this Administrative Order, are hereby repealed or modified accordingly.

SECTION 7, Effectivity. This Administrative Order shall take effect immediately.

DONE, in the City of Manila, this 25^th day of May, in the year of our Lord, Two Thousand and Eleven.


By the President:

(Sgd.) PAQUITO N. OCHOA, JR.

Executive Secretary