WHEREAS, the Philippine Coast Guard (PCG), an agency under the Office of the President, is mandated to promote the safety of life and property at sea and to protect the marine environment;

WHEREAS, the mandate of the PCG and the program of government to rationalize Philippine maritime administration by ensuring better policy and program coordination and implementation could be properly effected if the PCG is placed under the Department of Transportation and Communications (DOTC);

WHEREAS, Sec. 31, chapter 10, Title III, Book III of EO 292 grants the President the continuing authority to reorganize the Office of the President by, among others, transferring any agency or function thereof to any department or agency;

NOW, THEREFORE, I, FIDEL V. RAMOS, President of the Philippines, by virtue of the powers vested in me by law, do hereby order that:

SECTION 1.       Transfer. The PCG is hereby transferred from the Office of the President to the DOTC. The DOTC shall exercise administrative supervision over the PCG.

SECTION 2.       Powers and Functions. The PCG shall continue to be the agency primarily responsible for the promotion of safety of life at sea and the protection of the marine environment pursuant to the provisions of RA 5173, PD 600, PD 601, PD 602, PD 979, as amended.

SECTION 3.       Implementing Requirements. The Transition and Liquidation Committee created pursuant to Executive Order No. 475 shall continue to exercise its functions. The Committee shall continue to prepare and recommend to the President the necessary plans and measures to effect the transfer within 30 days from the signing of EO 475 including the undertaking of appropriate inventory and disposition of all PCG properties.

The Committee shall likewise, prepare plans and measures to ensure the smooth transfer of personnel from the PN to the PCG. Such plans and measures shall include the rules and guidelines covering matters pertaining to the transfer of commissionship of PCG officers, the administration of discipline and order during the transition period and, appointments and promotions and benefits of officers and enlisted men of the PCG, among others.

SECTION 4.       PCG Assets. The current appropriations of the PCG and assets presently under its possession, supervision and/or control shall be deemed PCG properties such as, inter alia, vessels, watercraft, firearms, armaments, munitions, communications and electronic equipment, vehicles, buildings, real estate, and lighthouses. Such properties and their records are hereby transferred to the PCG.

SECTION 5.       Appropriations. The funds which are appropriated for the PCG at the time of the approval of this Executive Order shall continue to be drawn by the PCG from the Philippine Navy budget until the end of 1998. Thereafter, the PCG shall prepare its own budget as a Key Budgetary Item (KBI).

SECTION 6.       Pay, Allowances and Retirement of Uniformed Personnel. PCG-uniformed personnel shall continue to receive the same base pay, longevity pay, and other allowances and benefits as authorized for corresponding grades and ranks in the AFP. PCG uniformed personnel shall continue to be covered by PD 1638 (AFP Retirement Law), as amended until such time as the PCG is able to establish its own retirement system under a regime and timetable agreed upon by the Committee.

SECTION 7.       Repealing Clause. All Executive Orders, Rules and Regulations or parts thereof contrary to or inconsistent with this Executive Order are hereby repealed or modified accordingly.

SECTION 8.       Effectivity. This Executive Order shall take effect immediately.

Adopted: 15 April 1998

BY THE PRESIDENT:

(SGD.) ALEXANDER P. AGUIRRE
Acting Executive Secretary