WHEREAS, it is the Government's policy to rationalize and streamline the livelihood sector to be able to provide a comprehensive livelihood program and services to the poor;

WHEREAS, the Department of Agriculture (DA), created primarily to improve farm income and generate work opportunities for farmers, fishermen and other rural workers, is the lead agency for the Government's food security program;

WHEREAS, the Livelihood Corporation (Executive Order No. 866, s. 1983), the Human Settlements Development Corporation (Presidential Decree No. 1386, s. 1973) and their subsidiaries (i.e. National Agri-Business Corporation, Northern Foods Corp., Philippine Genetics, Inc., etc.) are all engaged in agri-related livelihood undertakings catering to the needs of the underprivilege sector;

WHEREAS, the transfer of LIVECOR AND HSDC including their subsidiaries under the direct supervision and control of the DA shall strengthen government's capability to provide livelihood and other support services to the farmers, fishermen and other rural workers through a more cohesive coordination among these agencies;

WHEREAS, LIVECOR and HSDC are attached to the Office of the Executive Secretary by virtue of Executive Order No. 21 dated 27 August 1998;

WHEREAS, one of the offices under LIVECOR is the Guarantee Fund for Small and Medium Enterprises (GFSME);

WHEREAS, the GFSME of LIVECOR and the Small Business Guarantee and Finance Corporation (SBGFC) which is attached to the Department of Trade and Industry undertake homogeneous functions;

WHEREAS, under Section 31, Chapter 10, Book III of the Administrative Code of 1987, the President of the Philippines has continuing authority to reorganize the administrative structure of the Office of the President and may transfer any agency under the Office of the President to any other department or agency.

NOW, THEREFORE, I, JOSEPH EJERCITO ESTRADA, President of the Republic of the Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1. The Livelihood Corporation, the Human Settlements Development Corporation and all their subsidiaries, except the GFSME, are hereby attached, for supervision, control and policy/program coordination, to the Department of Agriculture.

SECTION 2. The Secretary of Agriculture, as head of the supervising agency, is hereby designated ex-officio Chairman of the Boards of Trustees of LIVECOR and HSDC.

SECTION 3. The GFSME shall be attached for supervision, control, policy/program coordination to the DTI. The attachment of the GFSME to the DTI is for the purpose of consolidating the activities of the GFSME with that of the SBGFC. The DTI is mandated to undertake such steps to effect the consolidation.

SECTION 4. The Secretary of Agriculture is hereby authorized to reorganize, streamline, merge, deactivate or dispose assets of the above-mentioned corporations, subject to existing laws. Separation or other benefits owing to any personnel affected shall be paid from any available funds in the above corporations and, if insufficient, shall be provided by the Department of Budget and Management.

SECTION 5. All laws, executive orders, rules and regulations or parts thereof inconsistent with this Executive Order are hereby repealed, amended or modified accordingly.

SECTION 6. This Executive Order shall take effect immediately.

DONE in the City of Manila, Philippines this 26th day of April, in the year of Our Lord, Two Thousand.


By the President:

(Sgd.) RONALDO B. ZAMORA
Executive Secretary