Definition of Key Terms
- Regularization: Transformation of a GOCC into a regular government agency or integral unit attached to an executive department, losing corporate character.
- Conversion: Dissolution of a GOCC and formation of a new private corporation with similar functions but without government funding.
- Consolidation: Merging of one GOCC into another, transferring assets, liabilities, powers, and personnel, eliminating the former's separate legal personality.
Reorganization Measures and Targets
- Regularization applied to:
- Metals Industry Research and Development Center (MIRDC)
- Fiber Industry Development Authority (FIDA)
- National Post-Harvest Institute for Research and Extension (NAPHIRE)
- Philippine Coconut Authority (PCA)
- Consolidation of Music Promotion Foundation into the Cultural Center of the Philippines.
- Conversion of National Social Action Council into a private corporation.
Income and Funding of Regularized Agencies
- All income (except donations, grants, legacies) of regularized entities shall be part of the General Fund.
- After regularization, these bodies are funded through the General Appropriations Act.
Compliance with Third-Party Rights
- Any material reorganization affecting third-party rights requires compliance with notice or consent requirements before implementation.
General Provisions
- Severability Clause ensures that invalidity of any provision does not affect the rest of the order.
- Repeals or modifies existing conflicting laws and issuances related to the reorganized GOCCs.
- Effective 15 days after publication in a national newspaper or Official Gazette.
Metals Industry Research and Development Center (MIRDC)
- Regularized and attached to Department of Science and Technology.
- Functions retained except corporate powers.
- Governed by a Governing Council including representatives from relevant departments and industries.
- Executive Director appointed by the Council to manage daily operations.
- Transfer and abolition of related foundations.
- Employees maintain holdover status, with priority for appointments and retirement/separation options.
- Performance evaluation to be conducted periodically by Secretary of Science and Technology.
Fiber Industry Development Authority (FIDA)
- Regularized as Fiber Development Center under Department of Agriculture.
- Purpose includes promoting fiber industry growth, improving economic conditions of workers, boosting exports, and encouraging processing.
- Led by an Administrator appointed by the President.
- Similar personnel policies to MIRDC regarding holdover, appointments, and separation.
- Performance evaluation overseen by Secretary of Agriculture.
National Post-Harvest Institute for Research and Extension (NAPHIRE)
- Converted into Bureau of Post-Harvest Research and Extension under Department of Agriculture.
- Continues functions excluding corporate powers.
- Can hire experts from public or private sectors.
- Similar personnel and evaluation provisions as other regularized bodies.
Philippine Coconut Authority (PCA)
- Transformed into Bureau of Coconut Development and Inspection Service under Department of Agriculture.
- Retains functions except corporate powers.
- Similar personnel provisions on appointments, separations, and retirements.
- Subject to performance evaluation by Secretary of Agriculture.
Music Promotion Foundation
- Abolished and functions transferred to Cultural Center of the Philippines.
- Assets, personnel, and liabilities similarly transferred.
National Social Action Council
- Abolished as Government Corporation.
- Members required to form and register a private non-stock non-profit corporation within 30 days.
- Holdover status for employees until transfer; priority for appointment in new entity.
- Transfer of assets and liabilities to new private corporation.
- Secretary of Budget and Management tasked with promulgating implementing rules.
Personnel and Asset Management
- Incumbents of abolished bodies have priority for reappointment or may opt for separation/retirement.
- Transference of records, assets, rights, liabilities, and personnel to regularized or consolidated entities.
- Provisions for payment of liabilities, benefit entitlement, and allocation of remaining assets governed by relevant laws.
Implementation and Oversight
- Applicable secretaries (Science and Technology, Agriculture, Budget and Management) charged with formulation of organizational structures, rules, and performance evaluation systems.
- Ensures continuity of services and efficient realization of rationalization goals.
This Executive Order systematically streamlines selected GOCCs by rationalizing their structure, improving governance, ensuring fiscal responsibility, and aligning their functions with government priorities in line with privatization and corporate governance modernization programs.