Question & AnswerQ&A (Republic Act No. 6651)
The purpose of Executive Order No. 251 is to further define the supervision and coordination of policies, plans, and programs by the Department of Finance over certain Government Financial Institutions (GFIs) transferred from the Office of the President, ensuring effective administrative supervision and program coordination.
The GFIs covered include the Development Bank of the Philippines, Government Service Insurance System, Land Bank of the Philippines, and Social Security Insurance System.
The Department of Finance is authorized to oversee general operations for efficiency and effectiveness but is restricted from interfering with the GFIs' day-to-day activities.
No, the Department of Finance can review and pass upon budget proposals but is not authorized to increase or add to them.
No, the Department of Finance's authority expressly excludes appointments and other personnel actions within the GFIs.
The Department of Finance may conduct management audits, performance evaluations, and inspections to ensure compliance with policies, standards, and guidelines.
The Department of Finance reviews and coordinates such policies and provides general policies either through its board representative or directly to the GFIs' boards. It may also send observers to board meetings where it has no representative.
If the disagreement cannot be resolved, the Department of Finance shall bring the matter to the President for resolution and direction.
The GFI Monitoring Office, under the Office of the Secretary of Finance, is responsible for monitoring the GFIs and can include newly created plantilla positions coordinated with the Department of Budget and Management.
No, the supervision does not extend to loans and contracts of the GFIs, which are governed by appropriate laws, rules, and regulations.