Question & AnswerQ&A (EXECUTIVE ORDER No. 148)
Section 5, Book IV of the Administrative Code of 1987 empowers the President to indicate to which department a government corporation may be attached.
The Philippine National Construction Corporation (PNCC), formerly the Construction Development Corporation of the Philippines, holds a franchise by virtue of Presidential Decree No. 1113, as amended by P.D. No. 1894, to operate, construct, and maintain the North and South Luzon Expressways and the Metro Manila Expressway.
PNCC is considered a government-owned and controlled corporation because the government of the Republic of the Philippines and/or government financial institutions have majority ownership, and this status was affirmed pursuant to the Supreme Court case PNCC vs. Pabion (320 SCRA 188).
Attaching PNCC to the DPWH is significant for ensuring policy and program coordination, and for the general supervision of PNCC, which aligns with the DPWH’s role in developing road networks across the country.
The Executive Order does not specify a time limit, implying that the attachment of PNCC to the DPWH is effective immediately and continues until further orders.
PNCC primarily engages in the construction, operation, and maintenance of toll roads, specifically expressways such as the North and South Luzon Expressways and the Metro Manila Expressway.
President Gloria Macapagal-Arroyo signed Executive Order No. 148, with Executive Secretary Alberto G. Romulo attesting the order.
General supervision includes oversight and guidance on the PNCC's policies and programs to ensure they align with national infrastructure and public works objectives, as administered by the DPWH.
The PNCC was created under Presidential Decree No. 1113, which was subsequently amended by Presidential Decree No. 1894.