WHEREAS, Executive Order No. 81 dated March 5, 1999 and its Implementing Rules and Regulations, transferred the sports programs and activities of the Department of Education, Culture and Sports [now Department of Education (DepEd)] to the Philippine Sports Commission (PSC);

WHEREAS, under Republic Act No. 9155 entitled "Governance of Basic Education Act of 2001," the program of physical education and school sports is an integral part of the basic education curriculum being implemented by the DepEd;

WHEREAS, pursuant to the Implementing Rules and Regulations of EO No. 81, the PSC has been in charge of the management and implementation of the Palarong Pambansa;

WHEREAS, after evaluation and review of the implementation of Palarong Pambansa for the past several years, the PSC and DepEd deemed it to the best interest of the national school sports program to return the management of Palarong Pambansa to the DepEd;

WHEREAS, paragraph 2, Section 31, Chapter 10, Title III, Book III of Executive Order 292, otherwise known as "Administrative Code of 1987", grants to the President continuing authority to reorganize the administrative structure of the Office of the President;

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. Transferring the management of the Palarong Pambansa and funds to the DepEd. The management of the programs and activities of the Palarong Pambansa and the funds intended for this purpose are hereby transferred from the PSC to the DepEd.

SEC. 2. Defining the Role of DepEd. The DepEd shall:

1. Include in its regular calendar of activities for the month of May or during summer vacation, in order not to disrupt classes, the conduct of the Palarong Pambansa and its preparatory activities which may include school intramurals, district, division and regional athletic meets.

2. Propose the inclusion of budgetary appropriations in the annual General Appropriations Act for the implementation of the Palarong Pambansa and its preparatory activities.

SEC. 3. Coordination between DepEd and PSC. The DepEd and PSC shall continue to coordinate in the implementation of programs and projects for physical education and school sports, and all activities that contribute to the meaningful and substantial celebration of year 2005 as "International Year for Sports and Physical Education", as declared by the United Nations.

SEC. 4. Implementing Guidelines. The DepEd, in coordination with the PSC and other concerned entities, shall formulate the rules and guidelines for the effective implementation of this Order within forty-five days after its effectivity.

SEC. 5. Repealing Clause. All Executive Orders, Administrative Orders and other executive issuances inconsistent herewith are hereby repealed, modified or amended accordingly.

SEC. 6. Effectivity. This Executive Order shall take effect immediately.

Adopted: 31 May 2005

(SGD.) GLORIA MACAPAGAL-ARROYO

By the President:

(SGD.) EDUARDO R. ERMITA
Executive Secretary