Question & AnswerQ&A (EXECUTIVE ORDER NO. 494)
The main purpose is to reorganize certain government-owned or controlled corporations (GOCCs) through regularization, consolidation, or conversion to implement the Government's Corporate Rationalization Program and privatization efforts.
Regularization is the process by which a government-owned or controlled corporation is transformed into either a regular government agency or a unit integral to an existing agency or executive department, retaining the same objectives, powers, and functions except those which are corporate in nature.
Conversion refers to the process where a GOCC is dissolved, and its management is authorized to form a new private corporation with the same name, objectives, powers, and functions but without government funding, except that existing assets may be donated.
Consolidation is the process wherein a GOCC loses its legal personality by merging its objectives, powers, functions, assets, liabilities, and personnel into another GOCC.
The Metals Industry Research and Development Center, Fiber Industry Development Authority, National Post-Harvest Institute for Research and Extension, and the Philippine Coconut Authority were regularized.
It was consolidated with the Cultural Center of the Philippines, with its powers and functions transferred thereto.
The National Social Action Council was abolished and directed to convert into a private, non-stock, non-profit corporation registered with the Securities and Exchange Commission.
Their incomes, excluding donations, grants, and similar acquisitions, shall form part of the General Fund and their operations funded through the General Appropriations Act.
If the reorganization prejudices third persons with legally recognized rights, the necessary notices or consents from creditors must be obtained before implementation.
Section 9 enumerates the repeal and modification of laws, presidential decrees, and executive issuances that are inconsistent with the provisions of this Executive Order.
The respective Secretary of the department to which the regularized agency is attached is responsible for this task.
They continue in a holdover capacity, receiving salaries and benefits unless separated or retired under existing laws; incumbents have priority for appointment or may opt for separation or retirement.
Their powers, functions, assets, liabilities, records, and personnel are transferred to the respective agencies or entities as stated, and their appropriations revert to the General Fund.
The Governing Council formulates policies, administers funds, appoints personnel, enters into contracts, and oversees the effective operation of the Center.
The Executive Director supervises and coordinates the Center's activities, implements policies, appoints personnel, administers funds, and enters into contracts subject to Council approval.
Yes, specific regularized agencies like the Fiber Development Center and the Bureau of Post-Harvest Research and Extension may engage experts pursuant to existing laws, rules, and regulations.
Assets and liabilities are transferred to the receiving government agency; undisbursed funds or remaining assets revert to the General Fund or as otherwise directed; liabilities are settled according to Civil Code provisions.
To generate maximum cash recovery for the government, improve efficiency, implement the privatization program, and promote private sector primacy in entrepreneurial endeavors.
It takes effect 15 days after publication in a national newspaper of general circulation or in the Official Gazette.
It transitions the Council from a government corporation to a private, non-stock, non-profit corporation to exercise its functions more effectively as a private entity.