Prohibition on dealings with President's relatives

The Order is issued consistent with Administrative Order No. 1, which prohibits dealing in specified official matters with certain relatives of the President.
The Order is aligned with a Presidential instruction from the Cabinet meeting of 12 February 2002 to discourage relatives up to the fourth degree of consanguinity and affinity from exerting influence to derive benefits.
The Order directs enforcement without prejudice to Republic Act No. 3019, otherwise known as the Anti-Graft and Corrupt Practices Act, and other similar laws.
The Order specifies that it expands coverage beyond the initial persons contemplated in Administrative Order No. 1.

The Order is directed toward transparency in government transactions.
The Order is designed to remove any suspicion or impression of any anomaly or wrongdoing in Department and attached-agency transactions.
The Order expands coverage to include additional DOE officials and specified leadership roles to achieve the transparency objective.

The prohibition applies to employees of the Department of Energy and its attached and supervised agencies.
The Order also covers the undersigned, members of the DOE Executive Committee, and the officers of all DOE-attached and supervised agencies for purposes of the specified “dealing” restrictions.
The expanded coverage includes the President and Vice Presidents of the Philippine National Oil Company (PNOC) and each of its subsidiaries.
The expanded coverage includes the leadership of National Power Corporation (NPC), Power Sector Assets and Liabilities Management Corporation (PSALM), and National Transmission Corporation (TRANSCO).
The expanded coverage includes the Administrator and Deputy Administrators of the National Electrification Administration.
The Order limits the family-relationship scope to relatives to the fourth degree of consanguinity and affinity, including common law relationships.
The Order covers dealings with relatives described as real, pretended, or imaginary.

The Order prohibits DOE employees from dealing directly or indirectly with any covered relative to the fourth degree (consanguinity and affinity), including common law, and including real, pretended, or imaginary relatives.
The prohibition applies in transactions and activities that are:
- (a) those relating to contracts where the DOE and/or its attached and supervised agencies is a party;
- (b) those for the procurement or purchase of property, supplies and materials;
- (c) the appointment of personnel and recommendations for positions; or
- (d) any other matter calling for action or decision.
The Order states that prohibited dealings include direct or indirect engagement, dealing, or doing business in the specified activities and matters.

The Order requires covered officials to instruct their relatives from directly or indirectly engaging, dealing or doing business with any officers or employees in the DOE and/or its attached or supervised agencies.
The instruction duty is tied to the same categories of activities and transactions: the matters described as contracts, procurement/purchase, appointments/recommendations, and any other matter calling for action or decision.

The Order provides that any violation shall be dealt with accordingly, without prejudice to Republic Act No. 3019.
The Order further provides that enforcement applies without prejudice to “such other similar laws” in addition to Republic Act No. 3019.