Law Summary

Overview

Executive Order No. 319, issued on May 25, 1950, by President Elpidio Quirino, establishes the Department of Economic Coordination in the Philippines to oversee various government-owned or controlled corporations and agencies.

Section 1: Creation of the Department

• Legal Principle: Establishment of the Department of Economic Coordination.
• Key Definitions:
  • "Department of Economic Coordination" refers to the newly created government department.
• Important Requirements:
  • The Department is tasked with supervising several government corporations and agencies, including:
    • National Development Company and its subsidiaries.
    • Manila Railroad Company and its subsidiary.
    • National Rice and Corn Corporation, among others.

Section 2: Control and Supervision

• Legal Principle: The Department operates under the Secretary of Economic Coordination.
• Key Definitions:
  • "Secretary of Economic Coordination" is the head of the Department.
• Important Procedures:
  • The Secretary exercises functions under the supervision of the President.

Section 3: Operations of Supervised Entities

• Legal Principle: Continued operation of existing entities.
• Key Requirements:
  • Entities must operate according to their respective charters unless directed otherwise by the President.
  • The Secretary is responsible for ensuring efficiency and economy in operations.

Section 4: Recommendations and Corporate Governance

• Legal Principle: Authority to recommend changes in corporate governance.
• Important Procedures:
  • The Secretary may recommend changes in boards of directors or managing heads.
  • Voting of stocks owned by the government in corporations requires Presidential approval.

Section 5: Funding and Appropriations

• Legal Principle: Financial contributions for the Department's operations.
• Key Requirements:
  • Funding for salaries and expenses is to be contributed by the supervised corporations, with proportions determined by the Secretary.
  • Appropriations must be included in the National Government's general appropriation acts.

Section 6: Employment Regulations

• Legal Principle: Application of Civil Service rules.
• Key Definitions:
  • "Civil Service rules and regulations" govern the employment of Department officers and employees.
• Important Requirements:
  • All employees must adhere to these rules, similar to other government employees.

Section 7: Repeal of Inconsistent Laws

• Legal Principle: Abrogation of previous Executive Orders.
• Important Details:
  • Executive Order No. 93 and Executive Order No. 300 are abolished.
  • References to the abolished councils are replaced with the Department of Economic Coordination.

Section 8: Effectivity

• Legal Principle: Commencement of the Order.
• Key Details:
  • The Order takes effect upon its promulgation.

Key Takeaways

• The establishment of the Department of Economic Coordination centralizes oversight of various government-owned corporations.
• The Secretary of Economic Coordination plays a crucial role in governance and operational efficiency.
• Funding and employee regulations are structured to maintain compliance with existing government laws.
• Prior executive orders conflicting with this new structure are repealed to streamline governmental operations.