Transfer of PADC to Department of National Defense

The President issues Executive Order No. 78 by virtue of powers vested by the Constitution and existing laws.
The order anchors presidential control over executive departments under Section 17, Article VII of the 1987 Constitution.
Section 1 operationalizes that control by placing PADC under administrative supervision of the DND.
Section 2 ensures consistency by revoking, amending, or modifying inconsistent prior issuances.

Executive Order No. 78 directs that the PADC’s policies, programs, and activities be coordinated with the DND to attain relevant objectives of the Philippine Development Plan (PDP) 2017-2022.
The order is intended to maximize the national utility of the aviation and aerospace industry.
The order links the transfer to goals of addressing emerging internal and external threats and achieving self-reliance in defense equipment.
The order also emphasizes the promotion of technology transfer from neighboring countries.

PADC is a government-owned or -controlled corporation (GOCC) created by Presidential Decree (PD) No. 286 (s. 1973).
PADC is empowered to design, manufacture, and sell all forms of aircraft and aerospace devices, equipment, or contraptions.
PADC is empowered to develop local capabilities in the maintenance, repair, and modification of aviation equipment.
Before this transfer, EO No. 546 (s. 1979) attached PADC to the Department of Transportation (DOTr).

Section 1 transfers PADC to and places it under the administrative supervision of the DND.
Section 1 requires coordination of PADC’s policies, programs, and activities with the DND.
Section 1 ties this coordination to ensuring attainment of PDP 2017-2022 objectives.
Section 1 ties the coordination to maximizing the national utility of the aviation and aerospace industry.

Section 2 revokes, amends, or modifies relevant provisions of EO No. 546 (s. 1979) that conflict with Executive Order No. 78.
Section 2 likewise revokes, amends, or modifies all executive orders, rules and regulations, and other issuances or parts thereof that are inconsistent with Executive Order No. 78.
The operative effect of Section 2 is to align prior regulatory and issuance frameworks with the transfer of PADC to the DND.