Title
Transfer of PADC to Department of National Defense
Law
Executive Order No. 78
Decision Date
Mar 15, 2019
Executive Order No. 78 transfers the Philippine Aerospace Development Corporation (PADC) from the Department of Transportation to the Department of National Defense, aiming to enhance the aviation and aerospace industry and achieve self-reliance in defense equipment.
A

Previous Attachment of PADC to the Department of Transportation (DOTr)

  • By Executive Order No. 546 (s. 1979), PADC was previously attached to the Department of Transportation (then Ministry of Transportation and Communications).

Strategic Importance of the Aerospace Sector

  • Aerospace is identified as one of the priority industries in the Philippine Development Plan (PDP) 2017-2022.
  • The sector has emerging local industry potential and opportunities to leverage competitive advantages of Philippine industries.

Rationale for Transfer to the Department of National Defense (DND)

  • The transfer aims to address emerging internal and external security threats.
  • It seeks to achieve self-reliance in defense equipment production.
  • The move also promotes technology transfer from neighboring countries.
  • To effectively manage relevant agencies and align programs and policies, transferring PADC under DND is deemed necessary.

Legal Basis for Presidential Control

  • Section 17, Article VII of the 1987 Constitution vests the President with control over all executive departments, bureaus, and offices.

Provisions of the Executive Order

  • Section 1:
    • PADC is transferred to and placed under the administrative supervision of the Department of National Defense.
    • PADC's policies, programs, and activities are to be coordinated with the DND to achieve PDP objectives and maximize national utility of the aerospace industry.
  • Section 2:
    • Conflicting provisions from EO No. 546 (s. 1979) and other orders, rules, and regulations inconsistent with this Order are revoked, amended, or modified.
  • Section 3:
    • The Order takes effect immediately upon issuance.

Effectivity

  • The Executive Order was signed and took effect on March 15, 2019, as directed by President Rodrigo Roa Duterte and Executive Secretary Salvador C. Medialdea.

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