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: ADMINISTRATIVE ORDERS
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ADMINISTRATIVE ORDER NO. 7
ADMINISTRATIVE ORDER NO. 7 -
PRESCRIBING RULES ON THE SUBMISSION, REVIEW AND APPROVAL OF GOVERNMENT
CONTRACTS
WHEREAS, the Arroyo Administration is
committed to a program of good governance;
WHEREAS, good governance requires transparency, impartiality, and
accountability in government transactions;
WHEREAS, this Administration is determined to pursue the expeditious
implementation of development projects;
NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the
Philippines, by virtue of the powers vested in me by law, do hereby
order:
Section 1. Every head of a department or agency shall
be responsible and accountable for ensuring that all contracts entered
into by the department/agency concerned are in accordance with all
existing laws, rules and regulations and are consistent with the
spending priorities of government.
Sec. 2. All contracts entered into by departments,
bureaus, offices, and agencies of government including government-owned
or controlled corporations and their subsidiaries requiring approval by
the President pursuant to existing laws, Executive Order No. 380, S. of
1989 and Memorandum Order No. 266, S. of 1989 shall be submitted to the
National Economic and Development Authority (NEDA) Board for review,
recommendation, and endorsement to the President for final approval and
signature. The NEDA Board shall act on these contracts within a period
of thirty (30) days from date of submission.
Sec. 3. In connection with Sec. 2 above, all
contracts requiring approval by the President shall be transmitted to
the NEDA Board only after the same have been completely processed by
the concerned department or agency and signed by the head of such
department or agency, indicating such official's prior and own approval
thereof. The head of the department or agency shall further certify
that the contract is in accordance with existing laws, rules and
regulations.
Sec. 4. All other contracts involving the amount
of Php50 million and above shall be submitted to the NEDA Board for
information within seven (7) days from the date of signing by the head
of the department or agency. Such contracts shall be transmitted to the
NEDA Board only after the same have been completely processed by the
concerned department or agency and signed by the head of such
department or agency, indicating such official's approval thereof. The
head of the department or agency shall further certify that the
contract is in accordance with existing laws, rules and regulations.
The NEDA Board, through its Chairman or Vice-Chairman, shall formally
notify the head of the department or agency concerned, within 15 days
of its receipt of a contract submitted under this section, that it has
examined and duly noted such contract, together with comments it may
have related thereto. Unless otherwise indicated in said notification,
the head of the department or agency concerned may, upon receipt of the
same and the contract earlier submitted, proceed with implementation of
the contract, without prejudice to a further review and monitoring of
the same by the NEDA Board.
Sec. 5. All contracts presently being
processed/reviewed by the Presidential Management Staff shall be
immediately transmitted to the NEDA Board or the concerned
department/agency as the case may be for their expeditious disposition
in accordance with this Order.
Sec. 6. The NEDA Board may issue appropriate rules
and regulations to implement the provisions of this Administrative
Order, including guidelines to ensure the transparency of all contracts
entered into by all government agencies.
Sec. 7. The following issuances on the review of
contracts are hereby repealed: Memoranda from the President dated 25
August 1998, dated 7 September 1998, dated 25 January 1999, dated 5
February 1999, dated 8 February 1999, dated 10 February 1999,
date 23 February 1999, dated 10 June 1999, dated 12 July 1999, and
dated 8 February 2000, and Memorandum Circular No. 25 dated 10 February
1999. All other Presidential directives, issuances, orders, rules and
regulations or parts thereof inconsistent with this Administrative
Order are likewise hereby repealed.
Sec. 8. This Administrative Order shall take
effect immediately.
DONE in the City of Manila,
this 23nd day of March, in the year of our Lord Two Thousand and One.
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Since 19.07.98.