Law Summary
Reorganization of the Metropolitan Waterworks and Sewerage System (MWSS)
- MWSS to be headed by an Administrator, assisted by two Senior Deputy Administrators (Operations and Customer Service; Resource Development and Management).
- Four Deputy Administrators to support specialized functions in Engineering and Construction, Finance and Administration, and two for Customer Service.
- Administrator responsible for overall direction; certain departments report directly to the Administrator, including Corporate Planning, Internal Audit, Management Information, System Development, Computer Services, Legal, and Public Affairs.
- Office of Senior Deputy Administrator for Operations and Customer Service handles plant operations, maintenance, and delivery.
- Customer Service divided into two Districts for better service and revenue management, with four specific functional areas under each district (Revenue Generation, Facilities Operation and Maintenance, Meter Management, and Public Information).
- Senior Deputy Administrator for Resource Development supervises deputies for Engineering and Construction and for Finance and Administration.
- Specific responsibilities include project planning, design, research, accounting, finance, human resources, general services, personnel management, and treasury functions.
- Authority granted to revise the number of departments subject to Presidential approval, especially in cases of privatization or operational downsizing.
Reorganization of the Local Water Utilities Administration (LWUA)
- LWUA to be led by an Administrator, assisted by a Senior Deputy Administrator and three Deputy Administrators focused on Finance, Administration, and Area Operations.
- Teams under the Administrator include Internal Control, Management Services, and Public Affairs.
- Senior Deputy Administrator supervises Special Projects, Legal, and Water Resource Research and Training, along with the three deputies.
- Deputy Administrator for Finance oversees Treasury, Accounting, Loans Administration, and Water District Audit.
- Deputy Administrator for Administration responsible for Human Resources, Property, and General Services.
- Deputy Administrator for Area Operations manages nine area managers handling Project Planning, Monitoring, Water District Development, and Loans Evaluation.
- Similar authority to MWSS for revising departmental structures subject to Presidential approval.
Staffing and Personnel Management
- Both MWSS and LWUA must submit proposed detailed staffing plans and conduct a thorough personnel audit.
- Inventory of contractual, casual, and temporary employees must be compiled.
- Proposals submitted to the Department of Budget and Management (DBM) within 60 days; DBM to submit recommendations within 30 days or within 90 days total from the order’s effectivity.
- Revised staffing levels must not exceed existing authorized regular positions.
Compensation and Benefits
- MWSS and LWUA authorized to implement revised position classification and compensation packages with conditions:
- No reduction in current salaries and benefits.
- Compensation should correspond to improved revenue collection.
- Compensation shall not exceed private sector rates.
- Board of Trustee budget approval required.
- Non-revenue water must not exceed 40%.
- Final approval by the President required.
Separation Pay and Voluntary Retirement Incentives
- Officials or employees phased out due to reorganization entitled to benefits as prescribed by existing laws.
- MWSS, LWUA, and DBM instructed to develop measures offering incentives and benefits for voluntary retirement, possibly accelerating effect of revised compensation under Republic Act No. 6758 (Salary Standardization Law).
- Recommendations to be submitted to the President within 30 days.
Effectivity Clause
- The Executive Order takes effect the day after full publication in a newspaper of general circulation.