WHEREAS, the Lungsod ng Kabataan was created under Presidential Decree No. 1631 to promote the development of the Filipino youth and children;

WHEREAS, the Lungsod ng Kabataan is mandated to promote scientific research and provide medical services for the prevention and treatment of pediatric diseases;

WHEREAS, in keeping with the policy of government to effect continuing reforms, it is necessary to streamline the functions of Lungsod ng Kabataan in order to make the institution more responsive to the needs of its children;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and direct:

SECTION 1. Section 1 of PD 1631 is hereby amended to read as follows:

œSEC. 1. Creation of the Lungsod ng Kabataan. There is hereby created a trust to be known as Lungsod ng Kabataan under the Ministry of Human Settlements hereinafter referred to as the Lungsod, which shall be administered by a Board of Trustees composed of the Minister of Human Settlements as Chairman and seven (7) members to be appointed by the President. The Chairman shall appoint an Executive Director who shall be the Chief Executive Officer of the Lungsod and ex-Officio Vice Chairman of the Board of Trustees. The Board of Trustees, through the Chairman, shall have the power to reorganize the Lungsod and issue the proper implementing guidelines for such.

A Council of Research Fellows shall be formed, attached to the Board of Trustees, composed of a Chairman, Vice Chairman and five (5) members to be appointed by the Chairman of the Board, who shall serve as an advisory body to the Board of Trustees on the research programs to be pursued by the Lungsod.

The Lungsod shall be organized into three (3) major units namely: Medical Services; Administration; and Academic Affairs.

The Medical Services Department shall manage and operate the Children ™s Medical Center and shall attend to all pediatric cases particularly those requiring medical treatment.

The Administrative Department shall provide the necessary logistical support to the operation of the Lungsod and be responsible for corporate planning; sourcing of local and international funds through donations, aid, subsidies and bequests; and implementation of income-generating projects.

The Academic Affairs Department shall plan, implement, manage and operate various affiliated programs and projects such as pediatric training and research in order to enhance the effectiveness of the Lungsod as a development center for the youth and children.

The members of the Board of Trustees and the Council shall receive a reasonable amount per diem of honorarium as the Board may provide for every meeting actually attended by them, but not to exceed P1,000.00 a month. They shall serve for a period of four (4) years and shall continue to serve until their successors have been duly appointed and qualified. 

SECTION 2. Three (3) new provisions are hereby inserted between Sections 4 and 5 of PD 1631 to be known as Sections 5, 6, and 7 to read as follows:

œSEC. 5. Powers and functions of the Executive Director. The Executive Director as Chief Executive Officer shall exercise the following powers and functions:

a) To recommend policy guidelines and submit to the Board the program of work of the Lungsod;

b) To direct and supervise the implementation of programs, projects, operations and internal administration of the Lungsod;

c) To establish the appropriate organizational set-up subject to the confirmation of the Board;

d) To formulate and implement guidelines and standards for an efficient system of reporting and evaluation;

e) To arrange and/or negotiate for funding from local and foreign sources;

f) To appoint employees of the Lungsod except those whose appointments shall be made by the Board through the Chairman upon his recommendation; and to remove, dismiss or otherwise discipline for cause such employees in accordance with the standard guidelines for recruitment, employment and discipline of personnel which shall be enacted by the Board;

g) Subject to the approval of the Board, to determine the plantilla and rates of compensation, allowances, honoraria and such other additional compensation to be granted to all the officers, employees, technical staff and consultants of the Lungsod.

SEC. 6. Revolving Fund. The Lungsod is authorized to establish a Revolving Fund into which shall accrue revenues from operating and economical transactions undertaken by the Lungsod. Such revenues shall be automatically appropriated to cover expenses incurred in such operations, subject to pertinent budget, compensation, accounting and auditing rules and regulations. The Lungsod is hereby exempted from the provisions of Section 50 of PD No. 1177.

SEC. 7. Applicability of the Corporation Code. The provisions of the Corporation Code as amended, insofar as they are not inconsistent with this Executive Order, shall be applicable to the operations of the Lungsod. 

SECTION 3. Sections 5, 6, 7, 8, 9, 10 and 11 of PD 1631 are hereby renumbered as Sections 8, 9, 10, 11, 12, 13 and 14 respectively.

SECTION 4. Repealing Clause. All laws, decrees, orders, proclamations, rules, regulations and issuances, or parts thereof, which are inconsistent with any of the provisions of this Executive Order are hereby repealed or modified accordingly.

SECTION 5. Separability Clause. Any portion or provision of this Executive Order that may be declared unconstitutional shall not have the effect of nullifying the other provisions thereof, provided that such remaining portions can still stand and be given effect in their entirety to accomplish the objectives of this Executive Order.

SECTION 6. This Order shall take effect immediately.

Done in the City of Manila, this 21st day of April in the year of Our Lord, Nineteen Hundred and Eighty-three.


By the President:

(SGD.) JOAQUIN T. VENUS, JR.
Deputy Presidential Executive Assistant