WHEREAS , public officers and government in general have the constitutional duty to serve the Filipino people with utmost responsibility, integrity, loyalty and efficiency;

WHEREAS , it is the policy of the Administration to improve the quality and efficiency of public service to the Filipino people by continually adopting institutional improvements and innovations in the bureaucracy and enhancing the capacity of the President to manage the Executive Department and supervise agencies requiring greater attention by the President;

WHEREAS , Section 31, Chapter 10, Title III, Book III of Executive Order No. 292 dated July 25, 1987, otherwise known as the Administrative Code of 1987, provides continuing authority to the President to reorganize the administrative structure of the Office of the President;

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

SECTION 1. Declaration of Policy. - It is the policy of the Administration to undertake a streamlining program to rationalize the organization and supervision of the agencies under or attached to the Office of the President.

An agency shall be placed under or attached to the department best able to provide policy or program guidance or exercise administrative supervision. An agency shall be placed under or attached to the Office of the President only if it is chaired by the President, or if its mandate or functional concerns require the immediate attention of the President, or cut across sectors or cannot be aligned with those of any of the departments, or if it renders direct staff support to the President.

Agencies created by the President which have fulfilled their mandate, or perform functions properly pertaining to other departments, agencies or local government units, or have remained dormant shall be abolished, deactivated, merged, consolidated, transferred to other departments or agencies, or their functions, positions, personnel, assets and liabilities transferred to other departments or agencies.

SECTION 2. Initial Implementation of Streamlining Program . - Agencies presently under or attached to the Office of the President listed in Annex œA  hereof shall be transferred to the corresponding departments or agencies, subject to the conditions stated therein. Within thirty (30) days from the issuance of this Executive Order, the Chairman of the Housing and Urban Development Coordinating Council shall submit his recommendations to the Presidential Committee on Effective Governance (PCEG) regarding the rationalization of agencies transferred to it.

Agencies presently under or attached to the Office of the President listed in Annexes œB  and œC  hereof shall be abolished; Provided, that those listed in Annex œC  hereof shall be abolished, subject to the following:

(a) The Department of Budget and Management shall consult the local government units concerned for possible turnover of local or area-specific programs and projects.

(b) Where the local government units concerned are willing to perform and fund the functions of the agency to be abolished, the Department of Budget and Management shall arrange for the transfer of functions, positions, personnel, and assets, as may be necessary.

(c) The Department of Budget and Management shall oversee the winding-up of the activities of the agencies whose programs and projects are not accepted by the local government units concerned.

SECTION 3. Winding-up and Disposition of Functions, Positions, Personnel, Assets and Liabilities of Abolished Agencies . - The winding-up of the abolished agencies, including the disposition or transfer of their functions, positions, personnel, and assets, as may be necessary, shall be done immediately upon the issuance of this Executive Order and completed not later than April 15, 2002.

SECTION 4. Continuous Implementation of Streamlining Program . - Within sixty (60) days from the issuance of this Order, the PCEG shall submit to the President its recommendations for possible abolition, deactivation, merger, consolidation, transfer to other departments or agencies, or transfer of functions, positions, personnel, assets and liabilities of agencies under or attached to Office of the President not included in this Executive Order.

SECTION 5. Oversight. - The Department of Budget and Management is hereby directed to oversee the winding-up of agencies under this Executive Order, including the final disposition or transfer of their functions, positions, personnel, assets and liabilities. The Department of Budget and Management is hereby authorized to issue, upon consultation with the Civil Service Commission and the Commission on Audit and subject to the approval of the PCEG, the implementing guidelines for the winding-up of agencies and the final disposition or transfer of their functions, positions, personnel, assets and liabilities in order to achieve the effective implementation of this Executive Order.

SECTION 6. Reporting Requirement . - The Department of Budget and Management, in coordination with the PCEG, shall submit a Final Report to the President on the implementation of this Executive Order.

SECTION 7. Effectivity . - This Executive Order shall take effect immediately.

City of Manila, February 11, 2002.

(SGD.) GLORIA MACAPAGAL-ARROYO

By the President:

(SGD.) ALBERTO G. ROMULO
Executive Secretary