Establishing Privatization Council and Office

Creation of the Privatization Council (PC) to oversee the government's privatization program.
Chairman: Secretary of Finance.
Members: Secretaries of Budget and Management, Trade and Industry, National Economic and Development Authority, Justice.
Non-voting members: National Treasurer, Chairman of the Presidential Commission on Good Government (PCGG).
Establishment of a Technical Committee with representatives from relevant government agencies.

Responsible for directing, supervising, and coordinating all privatization and disposition efforts.
Assumes assets, liabilities, functions, and records previously held by the Committee on Privatization (COP).
Meetings at least twice a month; quorum requires majority voting members.
Unanimous decision required for disposition or rehabilitation proposals.
Legal counsel provided by the Secretary of Justice.
Initial budget allocation of PHP 10,000,000 from the Organizational Adjustment Fund.

PMO established under the Department of Finance to implement the marketing and disposition programs.
Headed by a Chief Privatization Officer (CPO), appointed by the President upon Secretary of Finance's recommendation.
Four Deputy Privatization Officers appointed by Secretary of Finance upon CPO's recommendation.

Implements marketing/disposition programs after Council approval.
Executes deeds of sale, contracts, and other instruments to transfer asset titles on behalf of the government.
Takes title and possession of transferred assets and conserves them.
May hire external experts and adopt internal rules and regulations.
Submits periodic reports to the Privatization Council.
Sales only final upon Council approval.
Proceeds, excluding operating expenses, remitted to the National Treasury.

Officers must be of good moral character, unquestionable integrity, and recognized business competence.
Prohibition against conflicts of interest related to assets managed.
PMO may adopt necessary internal rules, subject to the Secretary of Finance's approval.
Initial budget of PHP 30,000,000 from the Organizational Adjustment Fund.
PMO may retain commissions, fees, and up to 10% of proceeds for operational expenses, subject to Council approval.

Financial assets of the Asset Privatization Trust (APT) transferred to Land Bank's trust department for disposition.
Physical assets transferred to PMO under the Department of Finance for disposition.

Proceeds remitted to National Treasury: 60% to Agrarian Reform Fund and 40% to the general fund.
Government-owned and controlled corporations (GOCCs), except GSIS and SSS subsidiaries, to remit at least 50% of net sale proceeds.
Net proceeds defined as gross proceeds minus liabilities and selling expenses.

Minimum 10% of corporate asset sales reserved for small local investors, pursuant to Republic Act No. 7886.
Compliance transactions include IPOs, Employee Stock Option Plans, sales through government financial institutions, sales to workers and cooperatives, small individual investor sales capped at PHP 100,000, and pension fund sales.
SSS and GSIS to provide loans to qualified employees for stock purchases.
Privatization bonds may be issued with options to convert into shares or cash.

Separability clause ensures the validity of the remainder of the order if any part is declared unconstitutional.
Repealing clause invalidates inconsistent rules, orders, and issuances.
Effectivity upon publication but not earlier than January 1, 2001.