WHEREAS, Executive Order 372 (s. 1950) mandated the Board of Liquidators (BOL) to gradually settle, dispose of and convey properties of abolished government corporations and former-enemy-owned entities within three years of the Board ™s creation;

WHEREAS, Executive order 323 (s. 2000) created the Privatization and Management Office (PMO) to implement a disposition program for government corporations, assets and idle properties upon approval of the Privatization Council, which oversees the privatization program of the government;

WHEREAS, the merger of the BOL with PMO will expedite the liquidation of assets and properties of abolished agencies under the stewardship of the BOL and improve the efficiency of the privatization program by removing duplicative functions in asset disposition;

WHEREAS, it is the Administration ™s policy to undertake a streamlining program to transform the bureaucracy into an efficient and results -oriented organization;

WHEREAS, under existing laws and jurisprudence, the President has continuing authority to reorganize the Executive Branch of Government.

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. Merger. - The functions, rights, personnel, properties, assets, resources, technologies, materials, and records, as well as the obligations and liabilities of the BOL are hereby merged with the PMO. The assets and/or rights, which the BOL is mandated to dispose under EO 372, shall be transferred to the National Government which shall entrust said assets and/or rights to the PMO.

The PMO shall be surviving entity in the merger. As such, the administrative policies and operational guidelines of the PMO shall govern all transactions and disposition of the assets of the BOL.

SECTION 2. Creation of a Rationalization Plan. - Within sixty (60) days from the effectivity of this Order, and pursuant to Executive Order No. 366 (s.2004) a rationalization and integration plan shall be formulated and implemented by the Privatization Council (PrC), in consultation with BOL and PMO. The plan shall include, among other, the following:

1. Core functions, programs, activities and services of the merged organization;
   
   
2. Changes in policy directions, functions, programs, staffing patterns and resources allocation;
   
   
3. Actions on units, functions, programs and projects which may be scaled down, phased out or abolished;
   
   
4. Financial restructuring plan to cover the effects of the streamlined set-up on the budgetary allocations, reallocation of expenditure items, and physical and financial assets;
   
   
5. Internal and external communication plan in conveying the rationalization process to those concerned.
   

Such plan, which is separate from the rationalization plan of the Department of Finance (DOF), shall be submitted to the Department of Budget and Management (DBM) for approval.

SECTION 3. Remittance and Utilization of Revenues. - The PMO shall be allowed to retain a portion not exceeding ten percent (10%) of the proceeds from the disposition of BOL properties, which shall serve as the revolving fund for the payment of costs and expenses incurred by the PMO in the conservation and disposition of government assets. Thereafter, the net proceeds collected or receipts of any kind from the disposition of all BOL properties shall be remitted to the National Treasury in the manner followed by the PMO, which is 60% for the Agrarian Reform Fund and 40% for the General Fund.

All special funds under Section 5 of EO 372 (s. 1950) are hereby referred to the Permanent Committee under Section 45, Book VI of EO 292 (1987) for evaluation and possible reversion to the General Fund.

SECTION 4. Budget for the merged PMO. - Upon merger, the operational income of the BOL shall be transferred to the PMO. By the fiscal year 2006, the budget for the operations of the merged PMO and BOL shall be incorporated in the General Appropriations Act.

SECTION 5. Early retirement for personnel who may be affected by the merger. - BOL personnel who may be affected by the merger shall be offered the early retirement/separation benefits under Executive Order 366 (s. 2004).

SECTION 6. Role of the PrC. - The PrC shall have the authority to approve any action on the disposition of properties of abolished agencies under the merged PMO including all pending disposition transactions of BOL awaiting final action from the Office of the President at the time this Executive Order has been issued. PrC shall issue the implementing guidelines for the effective implementation of activities affecting the merger.

SECTION 7. Reporting Requirements. - The PMO shall submit a report to the Office of the President (OP), copy furnished the PMS, on the status of the merger within thirty (30) days after the effectivity of this Order and every quarter thereafter or as often as may be required by the OP.

SECTION 8. Repealing Clause. - EO 372 (s. 1950) and EO 350 (s. 2004) and all other orders, rules and regulations, and other issuances or parts thereof which are inconsistent with this Executive Order are hereby repealed, amended or modified accordingly.

SECTION 9. Effectivity. - This Executive Order shall take effect immediately after its publication in the Official Gazette or in a newspaper of general circulation.

Done in the City of Manila, this 17th day of November, in the year of Our Lord, Two Thousand and Five


By the President:

(Sgd.) EDUARDO R. ERMITA
Executive Secretary