WHEREAS , Executive Order No. 111 authorized the transfer of portions of Nayong Pilipino property covered by TCT No. 18445 to the Manila International Airport Authority (MIAA) and the closure of the cultural park, pending redevelopment;

WHEREAS , as a result of this closure, pending redevelopment, there is a reduction in positions and functions in the Nayong Pilipino organizational structure and the need to streamline its operational activities;

WHEREAS , pursuant to applicable laws, the grant of separation pay for those to be affected by this closure should be provided for;

WHEREAS , Section 31, Chapter 10, Title III, Book III of Executive Order No. 292, otherwise known as the Revised Administrative Code of 1987, provides continuing authority to the President to reorganize the administrative structure of the Office of the President, based on exigencies of the service and the streamlining of the bureaucracy.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO , President of the Philippines, by virtue of the powers vested in me by law, do hereby direct the following in relation to Nayong Pilipino:

1. the abolition of all permanent positions and termination of all casuals and contractuals;

2. the retention of a skeletal transition team to undertake the remaining and interim functions such as enumerated hereunder, but not limited to:

a. the finalization of Nayong Pilipino transactions with the MIAA relative to the transfer of possession and title to MIAA;

b. the compliance with Presidential instructions to look for an alternative new site, and finalizing arrangements, for a new Nayong Pilipino that would be appropriate to its objectives as a showcase of Philippine culture;

c. the settlement of legal issues and pending obligations with respect to major lease contracts and other outstanding accounts.

3. the authorization to grant a separation/early retirement benefit package to all its qualified employees who are affected, equivalent to one and one-half times the basic monthly salary for every year of service based on the highest salary received, with funds to be taken from corporate savings and resources of the Nayong Pilipino Foundation, Inc.

To accomplish the above purposes, the Executive Director, with the approval of its Board of Trustees, and in coordination and consultation with appropriate government agencies concerned, shall undertake the following:

1. Submit to the Department of Budget and Management, for review and approval, the proposed streamlined staffing pattern, for the interim period, during the closure of the cultural park and its eventual relocation/redevelopment to an appropriate site;

2. Submit to the President an interim report on compliance with this Executive Order, with recommendations and proposals on the requirements of a new Nayong Pilipino not later than December 31, 2002.

This Executive Order shall take effect immediately.

Done in the City of Manila, this 21st day of October, in the year of our Lord, two thousand and two.

(SGD.) GLORIA MACAPAGAL-ARROYO

By the President:

(SGD.) ALBERTO G. ROMULO
Executive Secretary