Question & AnswerQ&A (EXECUTIVE ORDER NO. 323)
The main purpose of Executive Order No. 323 is to constitute an Inter-Agency Privatization Council and create a Privatization and Management Office under the Department of Finance to oversee the continuing privatization of government assets and corporations in an orderly, coordinated, and efficient manner.
The Privatization Council is composed of the Secretary of Finance as Chairman; Secretaries of Budget and Management, Trade and Industry, National Economic and Development Authority, and Justice as members; with the National Treasurer and the Chairman of the Presidential Commission on Good Government as non-voting members.
The Council directs, supervises, and coordinates all privatization efforts, promotes private sector participation, assumes powers and assets previously held by the Committee on Privatization, and must unanimously decide on rehabilitation or disposition proposals.
The Council must meet at least twice a month or as frequently as necessary to effectively discharge its functions.
The CPO heads the Privatization and Management Office, implements marketing and disposition programs for government assets after Council approval, executes contracts and deeds, manages the office's staffing, and can enter into management contracts.
Officers must be of good moral character, unquestionable integrity, recognized business competence, and must not have any interest in the assets assigned to the Office either personally or through corporations.
All receipts from the sale of assets, except reimbursable expenses, are remitted to the National Treasury, with 60% to the Agrarian Reform Fund special account and 40% to the general fund.
A minimum of 10% of the sale of assets in corporate form must be reserved for small local investors as provided under Republic Act No. 7886.
Methods include Initial Public Offerings (IPOs), Employee Stock Option/Ownership Plans (ESOPs), sale to private and government employees, overseas workers, small farmers/fisherfolks, cooperatives, and sale to individual investors not exceeding P100,000.
The Council is provided an initial budget of 10 million pesos, and the Office an initial 30 million pesos, both drawn from the Organizational Adjustment Fund.
The Secretary of Justice serves as the ex-officio legal adviser to the Privatization Council.
Yes, it can retain commissions, due diligence fees, and up to 10% of proceeds, as approved by the Council, to maintain a revolving fund for operational costs and asset conservation.
Financial assets of the APT are transferred to the Land Bank's trust department for disposition, and physical assets are transferred to the Privatization and Management Office for appropriate disposition.
Under the Constitution and the Administrative Code of 1987, the President has control, supervision, and reorganization authority over the Executive Branch, including privatization programs.