WHEREAS, the enthusiastic response generated by the KKK program demands an accelerated implementation of the activities and operations at the Barangay, Municipal, Provincial and National levels, to achieve the overriding objective of bringing social justice to the Filipino Society;

WHEREAS, the Kilusang Kabuhayan at Kaunlaran as established under Executive Order No. 715 was conceived as a nationwide movement to mobilize such local and national resources for the establishment of productive enterprises that would provide sources of livelihood within the community;

WHEREAS, it is a declared policy of the State, to foster the growth of every Barangay, not only as basic political unit, but also as a firm foundation for socio-economic development;

WHEREAS, in recognition of the aforementioned policy, the National Government has extended direct assistance for community development through the establishment of Barangay Development Funds and other local Development Funds;

WHEREAS, the basic commitment of the New Republic to uplift the socio-economic conditions in the Barangays can best be achieved through the consolidation of efforts and available government financial resources which were addressed to these common development objectives; and

WHEREAS, the National Leadership recognizes the critical role of local political leadership for bringing about the transformation of the countryside into vibrant communities;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the power vested in me by the Constitution, and the authority vested in me by P.D. No. 1416, as amended, hereby order and ordain:

SECTION 1. Creation of KKK Local Government Special Fund (LGSF).

There is hereby created a KKK Local Government Special Fund (LGSF) as a Special Account of KKK in the Treasury distinct from the Regular KKK Fund established under Executive Order No. 715 and appropriated under Section 33, F, of Batas Pambansa Blg. 131, to accelerate the implementation of KKK program.

SEC. 2. Components of the LGSF

The LGSF shall be implemented in two phases with the following three major components:

A. Phase I

i) City/Municipal Livelihood Capital Fund - to finance livelihood projects initiated and approved at the City/Municipal level amounting to P100,000 per City/Municipality per year;

ii) Provincial Livelihood Capital Fund - to finance livelihood projects initiated and approved at the provincial level amounting to P500,000 per province per year.

B. Phase II

iii) Barangay Livelihood Capital Fund - to finance livelihood projects initiated and approved at the barangay level amounting to P5,000 per barangay per year.

SEC. 3. Nature and Characteristics of the LGSF

The LGSF shall be a capital fund that may partake the nature of a corporate investment fund or a revolving fund and shall therefore be exempted from the provisions of Sec. 40, 50, 51, 52, 53 and 55 of P.D. No. 1177.

As a capital fund, recovery and return to capital shall be a standard guideline for fund disposition.

SEC. 4. Management and Administration of the LGSF

In accordance with Sec. 5 of P.D. 144 and Sec. 3 of P.D. 559, the Provincial Treasurer shall be the custodian of all LGSF and he shall maintain in his books a special account therefore. Except for the provincial funds, he shall release the City/Municipal and Barangay KKK LGSF to the City/Municipal Treasurer concerned who shall be responsible for the disbursement and accounting of the same.

All interest accruing to and repayments to be realized from the LGSF herein set-forth, shall accrue to the KKK National Capital funds and shall be utilized for the implementation of other KKK projects in the area in accordance with the guidelines which may be jointly issued periodically by the KKK Secretary-General and the Minister of Local Government.

SEC. 5. Organizational Machinery of the KKK at the Provincial and Municipal Levels

The organizational machinery of the KKK at the municipal and provincial level as prescribed in Sections 6, 7, 8, 9, 10, and 11 of Executive Order No. 715 are hereby further strengthened to authorize the Governors and city/municipal Mayors to approve KKK-projects financed from LGSF herein created in accordance with the guidelines jointly promulgated by the Minister of Human Settlements and the KKK Secretary-General and the Minister of Local Government. The Chairman of the Commission on Audit, the Minister of Local Government and the Secretary-General of the KKK National Secretariat and the Minister of Human Settlements are hereby directed to immediately formulate and issue specific guidelines and rules that shall govern the livelihood investment transactions of the Governors and Mayors including the Regional Action Officers pertaining to KKK financed projects.

SEC. 6. Sources of Fund

The LGSF shall have the following sources of funds from existing budgetary appropriations:

a. City/Municipal Livelihood Capital Funds to be sourced from the Barangay Development Fund established under P.D. 144, as amended;

b. Barangay Livelihood Capital Fund to be sourced from the Barangay Development Fund established under P.D. 144, as amended.

The Minister of the Budget shall, starting CY 1982, program and release the amount for the LGSF as identified in Sec. 2 of this Order subject to the guidelines and schedule of fund releases to be issued periodically and jointly by the Minister of Human Settlements as Secretary-General of KKK and Minister of Local Government.

SEC. 7. Program Monitoring and Target Setting

Barangay Captains shall submit to their respective Municipal Mayors regular status reports on the progress of KKK Livelihood Projects in their barangay, while the Municipal Mayors shall prepare consolidated Municipal Reports to their Provincial Governors. The consolidated report of the province shall be submitted to the Regional Offices of the Ministry of Human Settlements KKK Secretariat and the Ministry of Local Government for regular reporting to the Pambansang Lupon of the KKK.

SEC. 8. Establishment of Project Development and Management Fund

A KKK Project Development and Management Fund which shall be utilized by KKK implementing agencies to front-end livelihood projects in both production and marketing phases is hereby established under the KKK National Secretariat. The amount of P200 M shall be taken starting CY 1982 out of the Current Operating Expenditures of the National Livelihood Program Support Fund in the General Appropriation Act and shall be released by the Ministry of Budget to the KKK Secretariat in accordance with the guidelines of the Minister of Human Settlements and KKK Secretary-General.

SEC. 9. Repealing Clause

All laws, decrees, charters, executive orders, administrative orders, proclamations, rules and regulations or parts thereof that are in conflict with this Executive Order are hereby repealed or modified accordingly.

SEC. 10. Separability Clause

Any portion or provision of this Executive Order that may be declared unconstitutional shall not have the effect of nullifying the other portions thereof; provided, that such remaining portions can still stand and be given effect in their entirety to accomplish the objectives of the Executive Order.

SEC. 11. Effectivity

This Executive Order shall take effect immediately.

DONE in the City of Manila, this 9th day of March in the Year of Our Lord, nineteen hundred and eighty two.


By the President:

(SGD.) JUAN C. TUVERA
Presidential Executive Assistant