Reorganization of Certain Government GOCCs EO 494

Section 48 of Republic Act No. 7078 empowers heads of agencies to scale down, phase out, or abolish non-essential activities subject to Office of the President’s directives.
The President, under delegated legislative powers, may amend or repeal GOCC charters for privatization or merger purposes.
Reorganization actions are in furtherance of maximizing cash recovery and enhancing privatization programs.

Regularization: Transformation of a GOCC into a regular government agency or a unit within an existing agency, retaining non-corporate powers.
Conversion: Dissolution of a GOCC and formation of a private corporation with similar functions but without government funding.
Consolidation: Merging of one GOCC into another, integrating their legal personalities, assets, personnel, and liabilities.

Metals Industry Research and Development Center, Fiber Industry Development Authority, National Post-Harvest Institute, and Philippine Coconut Authority are regularized as government agencies.
Regularized entities’ income, except donations and similar, form part of the General Fund.
Their operations will be financed through the General Appropriations Act.

Music Promotion Foundation is consolidated with the Cultural Center of the Philippines.
National Social Action Council is subjected to conversion into a private, non-stock, non-profit corporation.

Annexes provide detailed operational guidelines for each corporation’s reorganization.
Notice or consent from creditors is required if reorganization materially prejudices third parties.

If any part is declared invalid or unconstitutional, other provisions remain effective if still functional.
Various laws and executive issuances related to the concerned GOCCs are repealed or modified accordingly.

The Executive Order takes effect 15 days after publication in a national newspaper or the Official Gazette.

Transformed into a regular agency attached to the Department of Science and Technology.
Retains functions excluding corporate ones such as training, quality control, research, and trade accreditation.
Governed by a Council with representatives from related government departments and industry.
Personnel policies provide for holdover service with priority reappointment and retirement/separation benefits.
Assets and liabilities transferred from abolished MIRDC Testing Foundation.

Regularized as Fiber Development Center under the Department of Agriculture.
Objectives focus on productivity, economic improvement of farmers, export trade, processing, and incentives.
Administered by an Administrator appointed by the President, with relevant competence.
Personnel policies ensure continuity, priority in reappointment, and benefits on separation or retirement.
Assets and liabilities transferred accordingly.

Transformed into Bureau of Post-Harvest Research and Extension under Department of Agriculture.
Continued performance of functions except corporate powers.
May hire experts from public or private sectors.
Personnel policies for holdover and priority appointment with benefits on retirement/separation.
Assets and liabilities transferred accordingly.

Regularized into Bureau of Coconut Development and Inspection Service under Department of Agriculture.
Retains powers and functions except corporate ones.
May hire experts under existing laws.
Personnel policies provide holdover service, priority appointment, separation and retirement benefits.
Assets and liabilities transferred accordingly.

Abolished as a government corporation.
Members directed to form a private, non-stock, non-profit corporation within 30 days.
Personnel to serve in holdover capacity until registration;
Upon registration, incumbents deemed separated or retired with entitlement to benefits and priority for positions in new corporation.
Transfer of assets to new corporation as capitalization, liabilities handled per Civil Code.
Secretary of Budget and Management to issue implementing rules.

Reorganization must respect creditor rights and require notices or consents if affected.

Heads of related departments to submit organizational structures within 120 days.
Secretaries of involved departments to formulate objective periodic performance evaluations.

Appropriations not used post-reorganization revert to General Fund after settling separation benefits.
Deficiencies in benefit payments covered by department savings.
Remaining assets disposed per Government Auditing Code.
Liabilities paid according to Civil Code preference rules.

Secretaries of Science and Technology, Agriculture, and President of Cultural Center tasked with issuing necessary rules and regulations for effective implementation.