Title
Creation of Surplus Property Commission
Law
Executive Order No. 27
Decision Date
Nov 18, 1946
Executive Order No. 27 establishes the Surplus Property Commission in the Philippines, responsible for the acceptance, administration, sale, and disposition of surplus property acquired from the United States, with powers to promote local industries and agriculture, and the authority to appoint personnel and handle funds.
A

Purpose and Scope

  • To accept, administer, sell, and dispose of surplus property acquired by the Philippine government from the U.S. government
  • Surplus properties refer to those owned by the U.S. in the Philippines surplus to its needs as of the Agreement's effective date
  • Properties may be sold or disposed of as deemed most advantageous to the government

Powers and Functions of the Commission

  • Acceptance of all sold or granted surplus properties from the U.S. pursuant to the September 11, 1946 Agreement
  • Care, custody, and protection of all such properties
  • Administration and disposal of properties not needed by the government or its subdivisions, including government-owned or controlled corporations
  • Sales aimed at promoting rehabilitation of industry, business, and agriculture with preference to local manufacturers, businessmen, and farmers
  • Sales exceeding P100,000 require Presidential approval before finalization

Financial Provisions

  • Authorized to appropriate necessary funds from proceeds of sales for the Commission’s administration and operating expenses with Presidential approval
  • Proceeds, except those appropriated for administration, to be deposited in the Philippine National Bank under a special fund for legally directed purposes

Organizational and Operational Structure

  • Bases with surplus properties to have parallel local organizations with a local committee of three members (one local, two others)
  • Government departments, bureaus, offices, agencies, instrumentalities, including government-owned or controlled corporations and local governments, must provide assistance upon request
  • Officials and employees called to serve the Commission receive salaries fixed by the Commission, paid from its funds
  • Temporary assignments allow designated personnel to receive salary differences for positions temporarily vacated

Contractual and Legal Authority

  • Authority to enter into contracts, sue, and be sued
  • Required to submit weekly sales and transaction reports to the President

Abolition of the Government Procurement Commission

  • Government Procurement Commission (Executive Order No. 85) abolished
  • All functions, properties, records, funds, appropriations, and personnel transferred to the Surplus Property Commission

Legal and Administrative Impact

  • Framework ensures systematic acceptance and disposition of U.S. surplus property
  • Promotes equitable distribution prioritizing local stakeholders
  • Provides mechanisms for administrative funding and operational oversight
  • Strengthens government control and accountability over surplus property management

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