WHEREAS, to address the need for a new body to assist the President in the campaign against graft and corruption in the Executive Department, the President issued Executive Order No. 12 dated 16 April 2001 creating the Presidential Anti-Graft Commission, hereinafter referred to as the "Commission";

WHEREAS, Section 2 of the said Executive Order provides, among others, that "[a]ll the members of the Commission shall serve on a full-time basis and a majority shall be members of the Philippine Bar";

WHEREAS, in order for the Commission to espouse a more holistic approach in dealing with the problem of graft and corruption in the Government, there is a need to appoint therein reputable individuals who represent other related fields or disciplines;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the Philippines, by virtue of the power vested in me by the Constitution and the laws, do hereby order:

SECTION 1. Section 2 of Executive Order No. 12 Dated 16 April 2001 is hereby amended to read as follows:

"SEC, 2. Composition.- The Commission shall be composed of a Chairman and two (2) Commissioners to be appointed by the President.  All the members of the Commission shall serve on a full-time basis and at least one of whom shall be a member of the Philippine Bar.  The Chairman shall have the rank, emoluments and privileges of a Presidential Assistant II.  The Commissioners, on the other hand, shall have the rank, emoluments, and privileges of a Presidential Assistant I.  The Chairman shall preside over the meetings of the Commission and shall direct and supervise the implementation and execution of policies rules and regulations."

SEC. 2. Repealing Clause. - All other executive issuances or portions thereof inconsistent with this Executive Order are hereby repealed or modified accordingly.

SEC. 3. Effectivity. - This Executive Order shall take effect immediately upon approval.

Adopted: 9 July 2004