Title
Amendment of EO 254-A on Palawan Fund Release
Law
Executive Order No. 405
Decision Date
Feb 1, 2005
Executive Order No. 405 grants local governments in the Philippines autonomy in their finances, allowing them to determine their expenses within their financial capacity, while the Department of Finance reviews and supervises their budgets, with limitations on salaries and wages of officials and employees.

Legal basis and prior issuances

  • Executive Order No. 405 is issued by the President under powers vested in the President by law.
  • Local Government Code authority is invoked: the President may direct a national agency to provide assistance to a local government unit at no extra cost upon request of the concerned local government unit.
  • Executive Order No. 254 (dated December 8, 2003) authorized release of funds from the net government share from Service Contract No. 38 over the Camago-Malampaya Natural Gas Reservoir as assistance to the Province of Palawan.
  • Executive Order No. 254-A (dated March 3, 2004) authorized further release for specified purposes, including construction for Ospital ng Palawan Provincial Hospital and acquisition and development related to the El Nido Municipal Airport.

Purpose of the amendment

  • The amendment reallocates and specifies beneficiary and uses to ensure better benefit to the Province of Palawan.
  • The amendment designates the Provincial Health Office as the beneficiary instead of Ospital ng Palawan, because Ospital ng Palawan has been nationalized and placed under the supervision of the Department of Health.
  • The amendment allows the beneficiary office to acquire medical equipment.
  • The amendment changes a prior allocation relating to the El Nido Municipal Airport land and development because the available funds for that purpose are insufficient.

Revised allocation for Provincial Health Office

  • Section 1 amends Section 2 (g) of Executive Order No. 254-A.
  • The amended Section 2 (g) provides Ten Million Pesos (P10,000,000.00) for construction of additional facilities and acquisition of additional medical equipment for the Provincial Health Office.
  • Section 2 (g) is expressly amended in place of the earlier allocation formula stated in Executive Order No. 254-A.

Revised allocation for El Nido drainage system

  • Section 1 amends Section 2 (i) of Executive Order No. 254-A.
  • The amended Section 2 (i) provides Forty Million Pesos (P40,000,000.00) for concreting and installation of a drainage system of the Poblacion to Lio Airport road in the Municipality of El Nido.
  • The amended allocation substitutes the earlier allocation under Executive Order No. 254-A relating to acquisition of land and development of the El Nido Municipal Airport.

Repealing and modification clause

  • Section 2 provides that all Executive Orders and other issuances or parts thereof inconsistent with Executive Order No. 405 are repealed or modified accordingly.

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