Question & AnswerQ&A (EXECUTIVE ORDER NO. 432)
The Committee was tasked to inventory all behest loans, identify lenders and borrowers including principal officers and stockholders of borrowing firms, identify borrowers granted "friendly waivers" and determine their validity, and recommend appropriate actions to recover these loans to the Office of the President.
The scope was broadened to include all non-performing loans, covering both behest and non-behest loans, in the Committee's investigation, inventory, and study.
Memorandum Order No. 91 expanded the Committee's authority to file and prosecute legal actions for the recovery of deficiency claims arising from both behest and non-behest loans that were defaulted.
The PCGG is assigned to inventory, investigate, and file/prosecute legal actions concerning behest and non-behest loans, including determining the validity of "friendly waivers" and recommending actions for loan recovery.
The PCGG has the legal personality to continue the prosecution of all pending behest loan cases filed by the defunct Committee and can also file and prosecute future cases.
Yes, the PCGG is empowered to call upon any government department, bureau, office, agency, instrumentality, or corporation, including officers and employees thereof, for necessary assistance in fulfilling its functions.
The Executive Order takes effect immediately upon its signing on May 26, 2005.
The Committee was abolished under Executive Order No. 72, which rationalized the agencies attached to the Office of the President.
Behest loans refer to loans granted at the behest or influence of government officials. Identification includes inventorying all behest loans, identifying lenders, borrowers, principal officers, stockholders, and persons responsible or who influenced the granting of the loans as per criteria under Memorandum Order No. 61, series of 1992.