QuestionsQuestions (EXECUTIVE ORDER NO. 432)
It was created by Administrative Order No. 13 dated October 8, 1992.
To inventory behest loans; identify lenders and borrowers (including principal officers and stockholders); identify persons who influenced the granting; identify borrowers with “friendly waivers” and determine the validity of such waivers; and recommend appropriate actions for recovery to the Office of the President.
It broadened the investigation/inventory/study to include all non-performing loans, embracing both behest and non-behest loans.
It expanded authority to file and prosecute legal actions for recovery of deficiency claims arising from defaulted behest and non-behest loans.
PCGG was to render full assistance and support to the Committee in filing and prosecuting behest loans cases.
Executive Order No. 72 dated February 11, 2002 rationalized agencies under/attached to the Office of the President and rendered the Committee abolished.
The powers, functions, and duties of the defunct Presidential Ad Hoc Fact-Finding Committee on Behest Loans are transferred to the PCGG.
(a) Inventory all behest loans and identify lenders/borrowers and persons responsible/influencing the grant; (b) Identify borrowers granted “friendly waivers,” identify officials who granted waivers, and determine validity; (c) Determine course of action to recover loans and recommend appropriate actions to the OP; (d) Investigate/inventory/study all non-performing loans including behest and non-behest loans; and (e) File and prosecute legal actions for recovery of deficiency claims from defaulted behest and non-behest loans.
The criteria in determining a behest loan as enumerated under Section 2 of Memorandum Order No. 61 (series of 1992) remain valid.
PCGG has legal personality to continue the prosecution of all pending legal actions pertaining to behest loans filed by the now defunct Committee, and PCGG may file and prosecute future legal actions concerning the same.
PCGG is empowered to call upon any department, bureau, office, agency, instrumentality, or corporation of the government, or any officer or employee thereof, for assistance needed to discharge its functions.
It takes effect immediately, and it was done on May 26, 2005.
Because the national interest requires the duties/responsibilities to be performed by PCGG, which is considered most suited to perform filing and prosecuting behest loans cases.
It states that PCGG shall perform the listed functions “in addition to its powers, functions and duties pursuant to existing laws and executive issuances.”
It ensures continuity by granting PCGG legal personality to continue pending cases and to file future actions regarding behest loans.