Transfer of Behest Loans Duties to PCGG

Memorandum Order No. 61 (November 9, 1992) expanded its scope to cover all non-performing loans, both behest and non-behest.
Memorandum Order No. 91 (February 15, 2000) further gave the Committee authority to file and prosecute legal actions for recovery of deficiency claims on defaulted behest and non-behest loans.
Section 2 of Memorandum Order No. 91 mandated the Presidential Commission on Good Government (PCGG) to assist the Committee in filing and prosecution.

Since 1995, the PCGG Legal Department has supported the Committee’s legal endeavors.
The Office of the President allocated PHP 10 million for this purpose.

Executive Order No. 72 (February 11, 2002) abolished the Committee as part of government rationalization.
Due to national interest and suitability, the PCGG was deemed most appropriate to assume the Committee’s duties.

PCGG is assigned to:
- Inventory behest loans and identify lenders, borrowers, key persons, and those influencing loan grants.
- Identify and assess "friendly waivers" and responsible government officials.
- Recommend government recovery actions to the Office of the President.
- Investigate and study all non-performing loans including behest and non-behest.
- File and prosecute legal actions for recovery of deficiency claims arising from defaulted loans.
The criteria for defining behest loans per Section 1 of Memorandum Order No. 61 remain valid.

The PCGG gains legal personality to continue prosecuting all pending behest loan cases previously filed by the abolished Committee.
PCGG is empowered to initiate and prosecute any future related legal actions.

PCGG may compel any government department, agency, office, or employee to assist in performing its functions.