WHEREAS, our country's national development continues to be confronted with various challenges that pose serious implications for national political stability and security;

WHEREAS, these challenges necessitate greater resources and a comprehensive effort involving the entire government machinery, especially the Intelligence Community;

WHEREAS, many intelligence communities worldwide have implemented varied techno-structural reforms including the creation of counter-terrorism units, intelligence fusion centers and information technology hubs as part of efforts to make them more responsive to the emerging national security threats;

WHEREAS, it is in the national interest to re-engineer and reinforce the national Intelligence Community to render it more responsive to the ever-increasing requirements of the national leadership and promote intelligence fusions at all levels;

WHEREAS, Administrative Order No. 149, series of 1989 directs the Director General, National Security Council to provide regular guidance and direction to the National Intelligence Coordinating Agency and members of the Intelligence Community;

WHEREAS, Administrative Order No. 2, series of 1992 authorizes the National Security Council Director to revitalize the Intelligence Community and re-orient its activities towards attaining broader national goals;

WHEREAS, Executive Order No. 366 directs the strategic review of the operations and organizations of the entire Executive Branch to transform the bureaucracy into an effective and efficient institution;

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 and direct the National Security Adviser/Director General, NSC to revitalize the Intelligence Community to render it more responsive to the demands of the new security environment consistent with the following directives and guidelines:

SECTION 1. Coverage. This Administrative Order shall cover all members of the Intelligence Community.

SECTION 2. Re-organization of the Intelligence Community. The NSA/DG, NSC is hereby directed to re-organize the Intelligence Community and revitalize the same through streamlining or expansion of concerned intelligence services/organizations, as necessary and undertake such other tasks to ensure that their activities are responsive to the needs and requirements of the national leadership.

SECTION 3. Review of Operations and Organizations. The Members of the Intelligence Community shall each undertake a strategic scrutiny and rationalization of their respective organizations, functions, systems and processes as well as their respective financial requirements for this purpose. The entire effort is geared towards the development/improvement of each member's capability vis-a-vis preparation of departmental and national intelligence.

The members of the National Intelligence Community shall thereafter prepare their respective re-organization/rationalization proposals to be submitted to the ONSA/ODG, NSC for review/consolidated and subsequent endorsement for the approval of the President.

SECTION 4. Intelligence Audit. The NSA/DG, NSC in his capacity as Chair of the National Intelligence Board shall conduct periodically an audit of the Intelligence Community's overall performance to ensure that the reforms undertaken achieve the identified goals.

SECTION 5. Effectivity. This Administrative Order shall take effect immediately.

DONE in the City of Manila, this 28th day of July in the year of Our Lord, Two Thousand and Five.


By the President

(Sgd.) EDUARDO R. ERMITA
Executive Secretary