Disposal of Unserviceable Govt. Property

Executive Order No. 888 authorizes disposal notwithstanding existing laws, rules or regulations to the contrary.
Executive Order No. 888 relies on the prior authority of the defunct Ministry of Public Highways under Presidential Decree No. 147, as amended by Presidential Decree No. 494.
Executive Order No. 888 adopts a disposal approach patterned on the authority previously granted to the defunct Ministry of Public Highways.

Executive Order No. 888 responds to the presence of unserviceable equipment and property deteriorating and exposed to the elements.
Executive Order No. 888 requires a more expeditious disposal procedure to prevent further deterioration.
Executive Order No. 888 establishes a uniform and expeditious procedure of government property disposal.
Executive Order No. 888 extends the same disposal authorization to all Ministers and Heads of Ministry/Agency for their unserviceable property.

Section 1 grants Ministers and Heads of Ministries/Agencies full and sole authority and responsibility to dispose of all unserviceable equipment and property of their respective Ministries/Agencies.
Section 2 creates a Disposal Committee in each Ministry and Agency to expedite disposal.
Section 2 mandates the Disposal Committee composition as:
- Owning Ministry or Agency: Chairman
- Bureau of Supply Coordination: Member
- Commission on Audit: Member
Section 3 requires each Disposal Committee to establish a standard operating procedure governing its action.

Section 3(1) requires the Disposal Committee to inspect or authorize Ministries/Agencies’ field offices to inspect unserviceable equipment and property to verify justification for disposal.
Section 3(2) requires the Disposal Committee to set the final appraised value considering:
- obsolescence,
- market demand,
- physical condition, and
- the result of previous biddings for similar property.
Section 3(3) requires the Disposal Committee to recommend to the Minister or Head of Ministry/Agency for approval the manner of disposal, taking into account the Revised Administrative Code and the National Auditing Code.
Section 3(4) requires the Disposal Committee to conduct public biddings for sale of disposable property on an “AS IS, WHERE IS” basis and to recommend the corresponding award.
Section 3(5) clothes the Commission on Audit and the Bureau of Supply Coordination, together with the COA Technical Staff specifically assigned, with full authority to make final decisions in behalf of their respective offices during committee deliberations.
Section 3(6) requires that for agencies attached to certain Ministries, the Disposal Committee’s recommendation is subject to the final approval of the Minister concerned.

Section 4 authorizes the Minister concerned to create Regional Disposal Committees in each region as necessary to facilitate disposal in regional field offices.
Section 4 authorizes Regional Disposal Committees to conduct public biddings for sale on an “AS IS, WHERE IS” basis.
Section 4 requires Regional Disposal Committees to be composed of:
- Regional Office of the Owning Ministry or Agency: Chairman
- COA Regional Office: Member
- Bureau of Supply Coordination: Member
Section 4 grants Regional Disposal Committees the same authority and functions as the Disposal Committee, but requires that all recommendations be subject to final approval of the Minister or Head of Ministry/Agency concerned.

Section 5 requires accountable officials in possession of unserviceable equipment to submit to the Disposal Committee, thru their respective heads of appropriate office, an Inventory and Inspection Report (General Form No. 17-A).
Section 5 requires each submission to be supported by:
- individual equipment survey reports, and
- current photographs (two views each).
Section 5 requires the Waste Material Report (General Form No. 64-A) to be used for waste materials and worn-out and obsolete spare parts.
Section 5 requires heads concerned, after processing such reports, to refer them to the Disposal Committee or the Regional Disposal Committee, as applicable, with their recommendations.

Section 6 provides that the Committee shall consider any of the following modes of disposal as most appropriate:
- Sale thru public bidding
- Disposal by barter or negotiated sale after unsuccessful bidding
- Barter with other government agencies and government-owned or controlled corporations
Section 6(1) requires that sale through public bidding be:
- widely publicized, and
- conducted with a minimum selling price tied to the Committee’s appraised value at realistic levels considering:
  - market demand,
  - physical condition,
  - obsolescence, and
  - all other relevant factors.
Section 6(2) provides that if sale thru public bidding is unsuccessful, the Committee may dispose the property at any manner most advantageous to the government, including thru barter or negotiated sale, not less than the Committee’s appraised value.
Section 6(3) authorizes barter with other government agencies and government owned or controlled corporations.

Section 7 provides that dropping disposed property from the books of accounts is governed by existing accounting and auditing regulations.
Section 8 requires creation of a Secretariat and technical staff drawn from existing personnel of the concerned Ministry/Agency.
Section 8 tasks the Secretariat to handle:
- the Committees’ technical and administrative matters, and
- safekeeping and systematic filing of Committee documents and records.

Section 9 repeals, amends, or modifies all existing Executive Orders, Letters of Instruction, Letters of Implementation, rules and regulations that are inconsistent with Executive Order No. 888.
Section 10 affirms effectivity upon approval.