QuestionsQuestions (EXECUTIVE ORDER NO. 432)
Executive Order No. 432 itself is the direct legal basis. It transfers the powers, functions, and duties of the defunct Committee to the Presidential Commission on Good Government (PCGG). The EO also relies on prior issuances that expanded the Committee’s scope (Administrative Order No. 13 [1992], Memorandum Orders No. 61 [1992] and No. 91 [2000]) and the abolition/rationalization under Executive Order No. 72 (Feb. 11, 2002).
The Committee was tasked to: (1) inventory behest loans and identify lenders/borrowers and responsible persons; (2) identify borrowers granted “friendly waivers” and the officials who granted them, and determine validity of such waivers; and (3) determine the course of action to recover loans and recommend actions to the Office of the President.
It broadened the scope by including all non-performing loans, covering both behest loans and non-behest loans.
It expanded the scope to allow the Committee to file and prosecute legal actions for the recovery of deficiency claims arising from defaulted behest and non-behest loans.
The PCGG was ordered to render full assistance and support to the Committee in filing and prosecuting behest loans cases.
The EO states that Executive Order No. 72 rationalized agencies under or attached to the Office of the President, thereby rendering the Committee abolished. The consequence was that its duties needed to be transferred to an existing agency.
The PCGG must: (a) inventory all behest loans and identify lenders/borrowers and responsible persons; (b) identify borrowers with “friendly waivers,” identify the officials who granted them, and determine validity of the waivers; (c) determine government actions to recover those loans and recommend appropriate actions to the OP; (d) investigate, inventory, and study all non-performing loans (both behest and non-behest); and (e) file and prosecute legal actions for recovery of deficiency claims for defaulted behest and non-behest loans.
It means Executive Order No. 432 did not redefine what qualifies as a behest loan; it preserved the existing criteria from the earlier memorandum order. The PCGG must use the same standards for determining a behest loan.
The PCGG has legal personality to continue the prosecution of all pending legal actions pertaining to behest loans filed by the defunct Committee. It can also file and prosecute future legal actions concerning the same matters.
It enables PCGG to assume/continue the legal prosecution of pending cases and to initiate prosecutions in the same area (behest loans), ensuring procedural continuity and standing to sue/prosecute through its authority.
The PCGG is empowered to call upon any department, bureau, office, agency, instrumentality, or corporation of the government, or any government officer/employee, for the assistance needed to discharge its functions.
By explicitly transferring the Committee’s functions to the PCGG and granting the PCGG legal personality to continue pending actions and file future ones.
It includes non-behest loans. Section 1(d) and (e) explicitly require investigation/inventory of all non-performing loans and filing/prosecution of deficiency claims arising from both behest and non-behest loans.
PCGG must file and prosecute the corresponding legal actions for recovery of deficiency claims—i.e., pursue court or other appropriate proceedings to recover unpaid portions after default.
It took effect immediately upon adoption (26 May 2005). Practically, this supports immediate transfer/implementation of functions, including continuation of pending cases and readiness to file future actions.