WHEREAS, there is a need for the National Tobacco Administration (NTA) to adjust and strengthen its operations to enable the agency to effectively serve its mandate, address major and pressing concerns to meet the challenges in local tobacco industry as well as respond to the growing needs of international trade;

WHEREAS, Section 29, Chapter V, Book V of Executive Order No. 292 (The Administrative Code of 1987) authorizes an agency to reduce its staff whenever it becomes necessary because of lack of funds due to the change in the scope or nature of an agency's program or as a result of reorganization;

WHEREAS, under Section 78 of the General Provisions of Republic Act No. 8522 (General Appropriations Act for FY 1998), the President may direct changes in the organization and key positions in any department, bureau or agency;

WHEREAS, as a consequence of financial constraints as well as to enable the agency to perform better and upon recommendation of the Department of Budget and Management (DBM), a streamlining plan for NTA has been approved.

NOW, THEREFORE, I, JOSEPH E. ESTRADA, President of the Republic of the Philippines, by virtue of the powers vested upon me by law, do hereby order the streamlining of the NTA:

SECTION 1.       Principles. The streamlining should adhere to the following principles:

1.         The streamlining shall be taken within the overall context of promoting the development of the tobacco industry. It should address the current needs of the agency and support its strategic thrusts. This will include the review of all its operations with a set of criteria for measuring programs, projects and services to attain the agency's visions and plans; and

2.         Attain optimum efficiency in the allocation of resources especially for priority programs, projects and services by minimizing organizational levels, reducing span of control, combining common functions, avoiding duplication and maximizing resource utilization, but with minimum disruption to operations.

SECTION 2.       Guidelines for Refocusing of Operations. To give due consideration to the opportunities and challenges of the industry, the NTA shall refocus its operations with a set of guidelines:

1.         Review the agency's operations with a set of criteria for measuring programs and projects to attain the agency's visions and plans. This will include an organizational design as set forth below:

a)    Preliminary analysis - to include data collection of the agency's thrusts and strategies, nature of individual unit's work, major work flows and elements of each as well as current problems and concerns.

b)    Strategic organizational design - to include functional groupings and strategic linking at top levels.

c)    Operational organizational design - to include groupings at lower levels of the organization including functional job descriptions.

2.         Realign departmental operations, modify its structure to come up with more responsive, effective and efficient agency.

3.         The number of positions in the new staffing pattern shall not exceed four hundred (400). However, the revised organizational structure and staffing shall be subject to approval by the DBM. In the event that the agency fails to submit its proposal for the revised Organization Structure and Staffing Pattern (OSSP), the DBM shall issue the final OSSP for immediate implementation by the NTA, one (1) month after the issuance of this Executive Order.

4.         Establish the most appropriate staffing and skill levels for all units and recommend assignment of personnel to specific positions. This will include reclassification of certain positions, finalization of staffing complement and the present work load factor.

5.         An early retirement incentive package (ERIP) shall be provided to those who opt to retire voluntarily and those whose positions will be phased out or closed as a result of the streamlining procedure. The ERIP shall be over and above the benefits that they may receive from PAG-IBIG and refund from GSIS premiums.

SECTION 3.       Coverage. This Executive Order shall cover all regular employees of the NTA who have rendered at least one year of continuous service to the agency. Employees, however, may opt to avail of any existing GSIS retirement laws. The number of years in service for qualified retirees under its laws shall be certified by the GSIS.

SECTION 4.       Transitory Provisions. The following provisions shall serve to guide implementation in the interim period:

1.         Incumbent officials and employees of the NTA shall continue to exercise their respective functions, duties and responsibilities with corresponding benefits and privileges, unless and until otherwise ordered by the Administrator.

2.         Employees who may opt to reject assignments or appointments in the new/realigned positions shall receive retirement benefits which they may be entitled to receive under existing laws. Otherwise, they may be paid, pursuant to Republic Act No. 6656 (An Act to Protect the Security of Tenure of Civil Service Officers and Employees in the Implementation of Government Reorganization), the equivalent of one (1) month salary for every year of service, computed on the basis of the highest salary received.

SECTION 5.       Funding. The national government shall provide finding assistance to NTA for the purpose of the ERIP which shall be taken from the Miscellaneous Personnel Benefit Fund under Republic Act No. 8522. To achieve proper programming of fund, the release of the financial assistance shall be on a reimbursement scheme and only after the DBM has approved NTA's restructuring.

SECTION 6.       Reportorial Requirements and Timetable. In fulfillment of the above provisions, the NTA shall submit its compliance report to the President through the DBM within sixty (60) days from the date of effectivity of the Executive Order.

SECTION 7.       Effectivity. This Executive Order shall take effect one (1) day after its publication in a newspaper of national circulation.

Adopted: 30 Sept. 1998


By the President:

(SGD.) RONALDO B. ZAMORA
Executive Secretary