Performance and Poverty Incidence
- Despite almost two decades of operation, the 4th District remained with the highest poverty incidence in Camarines Sur.
- Poverty incidence in the district also exceeded the average for the entire Bicol Region.
Calls for Abolition
- Sangguniang Panlalawigan of Camarines Sur, via Resolution No. 474 (s. 2017), urged abolition citing PDA's failure to fulfill its lawful purpose.
- PDA consistently operated at a loss, requiring continual subsidies from the National Government.
Governance Commission for GOCCs (GCG) Recommendation
- Under Section 5(a) of RA No. 10149 (GOCC Governance Act of 2011), GCG recommended abolition due to:
- Duplication and overlap of functions already performed by other government agencies.
- Failure to achieve intended outcomes, inefficiency, and poor cost-benefit performance.
Section 1: Abolition of the PDA
- The Partido Development Administration is formally abolished by this order.
Section 2: Disposition of Assets, Liabilities, and Functions
- Privatization Management Office (PMO) tasked with disposing of PDA assets to settle liabilities per laws and regulations.
- Planning and development functions transferred to appropriate local government units.
- Administration and operation of Nato Port transferred to the Philippine Ports Authority.
Section 3: Role of PDA Board as Administrator and Liquidator
- PDA Board of Directors assumes responsibility as administrator and liquidator.
- Duties include:
- Preserving and maintaining assets and assisting PMO in asset disposition.
- Settling liabilities.
- Issuing Notices of Termination to affected officers and employees within 60 days.
- Maintaining minimal personnel to preserve assets and assist liquidation.
- Settling retirement and separation benefits of affected personnel.
- Performing other necessary acts for PDA abolition.
- PMO and PDA Board must submit quarterly status reports to GCG on asset disposition and abolition implementation.
Section 4: Compensation for Affected Officials and Personnel
- Affected officers and personnel (regular or contractual) entitled to separation benefits in addition to existing retirement or separation benefits.
- Separation pay rates determined by years of service multiplied by Basic Monthly Pay (BMP):
- First 20 years: 1.00 x BMP x years of service.
- 20 years and 1 day to 30 years: 1.25 x BMP x years.
- Over 30 years: 1.50 x BMP x years.
- Funding for separation pay to come from PDA corporate funds.
- Department of Budget and Management to ensure availability of funds for compensation.
Section 5: Repeal Clause
- All orders and issuances inconsistent with this Memorandum Order are repealed or modified accordingly.
Section 6: Separability Clause
- Invalidity or unconstitutionality of any provision does not affect the validity of remaining provisions.
Section 7: Effectivity
- The Order takes effect immediately upon publication in the Official Gazette or a newspaper of general circulation.