Question & AnswerQ&A (EXECUTIVE ORDER NO. 323)
The main purpose of Executive Order No. 323 is to constitute an Inter-Agency Privatization Council (PC) and create a Privatization and Management Office (PMO) under the Department of Finance to continue the privatization of government assets and corporations.
The Privatization Council is composed of the Secretary of Finance as Chairman, with the Secretaries of Budget and Management, Trade and Industry, National Economic and Development Authority, and Justice as members. The National Treasurer and the Chairman of the Presidential Commission on Good Government are non-voting members.
The Council directs, supervises, and coordinates all privatization efforts of the government to promote private sector participation and maximize cash recovery. It assumes all powers, functions, duties, and responsibilities previously held by the Committee on Privatization under Proclamation No. 50, including the management of assets and liabilities devolved to the National Government under Republic Act No. 8758.
The PMO implements the marketing and disposition program for government corporations, assets, and idle properties upon approval of the Council. It can execute and deliver contracts and deeds of sale, take possession of assets, engage external expertise, and submit periodic reports on disposition status.
The Chief Privatization Officer is appointed by the President of the Philippines upon the recommendation of the Secretary of Finance. The four Deputy Privatization Officers are appointed by the Secretary of Finance upon recommendation of the Chief Privatization Officer.
Officers must be of good moral character, unquestionable integrity and responsibility, and recognized business competence. They must not be directors, officers, consultants, or stockholders of corporations with interest in assets assigned to the Office.
All receipts from sales are remitted to the National Treasury with 60% allocated to the special account of the Agrarian Reform Fund and 40% to the general fund. Government-owned and controlled corporations must remit at least 50% of net proceeds from sales. Net proceeds mean gross proceeds less related liabilities and selling expenses.
A minimum of 10% of sales in corporate form is reserved for small local investors to develop the domestic capital market. Compliance includes methods such as Initial Public Offerings, Employee Stock Ownership Plans, sales to private and government employees, small farmers, cooperatives, and sales to individual investors not exceeding P100,000.
The presence of the majority of the voting members of the Council constitutes a quorum, and the concurrence of the majority is needed for decisions. For disposition or rehabilitation proposals, unanimous Council decisions are required.
Pursuant to Republic Act No. 8758, all assets, moneys, properties, liabilities of the APT revert to and are assumed by the National Government. Financial assets are transferred to the trust department of the Land Bank of the Philippines for disposition, while physical assets are transferred to the Privatization and Management Office for appropriate disposition.