Reorganization of Government Corporations 1947

Governing authority and purpose

Section 1 abolishes the National Enterprises Council Board and creates the Government Enterprises Council to oversee corporations owned or controlled by the government.
Section 2 directs the Government Enterprises Council to advise the President in the exercise of his power of supervision and control over government-owned or controlled corporations.
Section 2 requires the Council to formulate and adopt policies and measures to coordinate the functions and activities of government-owned or controlled corporations and related offices or instrumentalities formed for national economic development.

Government Enterprises Council structure

Section 1 creates the Government Enterprises Council composed of: the President of the Philippines as Chairman, the Secretary of Commerce and Industry as Vice-Chairman, and the chairmen of the Boards of Directors and managing heads of all government-owned or controlled corporations as ex officio members.
Section 1 empowers the President to appoint additional members with the consent of the Commission on Appointments of the Congress.
Section 1 establishes a Secretary to the Council, appointed by the President with the consent of the Commission on Appointments of the Congress, serving on a full-time basis with salary fixed by the President.
Section 2 vests advisory and policy-coordination functions for government supervision and control.

Control Committee powers and direction

Section 3 creates a Control Committee within the Government Enterprises Council composed of the Secretary of Commerce and Industry as Chairman, a member designated by the President as Vice-Chairman, and the Secretary of the Council as ex officio member.
Section 3(a) directs the Control Committee to supervise, for and under the direction of the President, all government-owned or controlled corporations to ensure efficiency and economy in operations.
Section 3(b) requires the Control Committee to pass upon the corporations’ approved program of activities and their yearly budget of expenditures submitted by their respective Boards.
Section 3(c) tasks the Control Committee to carry out the Council’s policies and measures, subject to the approval of the President.

Appointment and limits of managing heads

Section 4 requires that each government-owned or controlled corporation have a President, general manager, or manager appointed by the corporation’s Board (or other governing body) with the approval of the President.
Section 4 provides that the managing head directs and manages the corporation’s affairs and business on behalf of the Board and subject to Board control and supervision.
Section 4 authorizes the Board of Directors, by majority vote of all the members, to suspend the managing head with the approval of the President.
Section 5 prohibits any chairman or member of the Board of Directors or other governing body of the covered corporations from serving in the same corporation in any capacity other than as such chairman or member unless authorized by the President.
Section 5 allows an exception for a person appointed as a board or governing body representative of employees and laborers.

Corporate conversions and dissolutions

Section 6 converts the National Rice and Corn Corporation by ending its status as a subsidiary of the National Development Company, transferring all National Development Company rights, titles, interests, property, assets, or shares in the capital stock to the National Rice and Corn Corporation at book and/or par value.
Section 7 converts the Agricultural Machinery and Equipment Corporation into a department operating directly under the National Development Company, transferring and assigning its properties and assets to the National Development Company.
Section 8 converts the National Cooperatives Administration into the National Cooperatives and Small Business Corporation, which must assume the prior function of the Bureau of Commerce in encouraging, promoting, and supervising the establishment of provincial trading corporations.
Section 14 merges the National Housing Commission (created by Commonwealth Act No. 648) and the People’s Homesite Corporation (created under the Corporation Law) into the People’s Homesite and Housing Corporation, transferring duties, powers, functions, personnel, records, equipment, funds, and other assets and liabilities of both merged entities.
Section 14 provides that the People’s Homesite and Housing Corporation is deemed a continuation of the personalities of the two merged corporations, and references in Acts, Executive Orders, Administrative Orders, rules, or regulations to the former corporations are deemed references to the merged corporation.
Section 17 dissolves the National Produce Exchange, National Warehousing Corporation, and National Footwear Corporation, with their accounts to be liquidated by the Auditor General.

Metropolitan Transportation Service transfers

Section 9 transfers the Metropolitan Transportation Service (METRAN)—created by Executive Order No. 59 dated July 27, 1945, as amended by Executive Order No. 75—together with its functions, duties, personnel, equipment, records, assets, and liabilities, to the Manila Railroad Company effective January 1, 1948.
Section 9 directs that the Manila Railroad Company exercise full control and authority over METRAN after the transfer.
Section 10 abolishes the Board of Directors of METRAN created by Executive Order No. 57 dated June 7, 1947, and transfers its powers and duties to the Board of Directors of the Manila Railroad Company.
Section 11 provides that METRAN personnel considered in excess after the transfer shall be included in a temporary plantilla and remain in their respective positions as long as they are not transferred to other permanent positions in the combined services of the Manila Railroad Company and its bus lines (including Luzon Bus Line, Benguet Auto Line, and Mindanao Motor Line).
Section 11 requires that when filling vacancies or new positions in departments of the Manila Railroad Company or its bus lines, first preference be given to suitable personnel listed in the temporary plantilla.
Section 11 provides that any position that becomes vacant in the temporary plantilla is automatically abolished.
Section 12 abolishes the Metropolitan Transportation Service Revolving Fund created by Executive Order No. 75 dated December 1, 1945, transferring its assets and liabilities to the Manila Railroad Company.
Section 13 directs the Manila Railroad Company to furnish motor transportation service to all bureaus and offices of the National Government on hire or rental basis in accordance with the schedule of rates and regulations in Executive Order No. 28 dated November 22, 1946, subject to revision or amendment with approval of the President.

Insurance system and Property Insurance Law

Section 15 places the Government Service Insurance System (established by Commonwealth Act No. 186) under the administrative supervision of the Government Enterprises Council.
Section 15 transfers to the Control Committee the authority and control previously exercised by the Secretary of Finance over the Government Service Insurance System and the Government Service Insurance Board.
Section 15 provides that any references to the Secretary of Finance in Commonwealth Act No. 186 and its amendments and rules or regulations issued thereunder are deemed references to the Chairman of the Control Committee.
Section 16 transfers the administration of the Property Insurance Law—sections 336 to 341 of the Revised Administrative Code, as amended—to the Government Service Insurance System.
Section 16 provides that references in the Property Insurance Law or its rules and regulations to the Secretary of Finance and the Treasurer of the Philippines are considered references to the Chairman of the Control Committee and the Manager of the Government Service Insurance System, respectively.

Repeal and effectivity rules

Section 18 repeals or modifies Acts, Executive Orders, Administrative Orders, or Proclamations (or parts thereof) that are inconsistent with any provision of the order.
Section 19 provides effectivity immediately, unless otherwise stated.