WHEREAS, the Conservation of Priority Protected Areas project ("the Project") was designed to implement Republic Act Mo. 7586, otherwise known as the National Integrated Protected Areas System Law;

WHEREAS, the Global Environment Trust Fund financed the Project through a Graft Agreement involving the amount of US$20 Million, of which US$2.87 Million was coursed through the Government of the Republic of the Philippines (GRP), represented by the Department of Environment and Natural Resources (DENR), and US$17.13 million of which was coursed through the NGG's for Integrated Protected Areas, Inc. (NIPA), a non-government entity organized under the laws of the Philippines;

WHEREAS, the International Bank for Reconstruction and Development (the World Bank) and the GRP have decided to grant financing for the Project through NIPA to ensure that it is implemented in the most efficient and cost-effective manner;

WHEREAS, a review undertaken by the World Bank Supervision Mission in June 2001, on the Project's implementation concluded that improper deviation from the scope of the Grant Agreement were committed by NIPA officials and employees and that some DENR employees were guilty of irregular conduct;

WHEREAS, to protect the integrity of the grant implementation processes, there is a need to investigate the allegations made by the World Bank, to pinpoint responsibility for any wrongful act or omission.

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

1. There is hereby created an investigation team ("the Team") to be composed of five (5) members, two (2) each from the DENR and the Department of Finance (DOF), and one (1) from the Department of Justice. The Team shall be chaired by the representative from the DOJ.
2. The Team shall evaluate the review-report of the World Bank Supervision Mission and, shall, if necessary, conduct its own investigation to determine whether any irregularity existed in the Project's implementation;
3. The Team shall submit a report on its findings, with its recommendation on the corrective, preventive, or punitive measures that should be implemented. The Team shall also cause the filing of criminal, civil or administrative charges, as the case may be, against any person responsible for any irregularity.
4. The DENR shall extend secretariat support to the team and provide it with the necessary equipment and supplies, document safekeeping and other related services, as well as shoulder all incidental expenses relative to the work of the Team.
5. This Administrative Order shall take effect immediately

Done in the City of Manila, this 11th day of August, in the year of Our Lord, Two Thousand and Three.

By the President:

(Sgd.) ALBERTO G. ROMULO
Executive Secretary