EXECUTIVE ORDER NO. 503
EXECUTIVE ORDER NO. 503 - PROVIDING
FOR THE RULES AND REGULATIONS IMPLEMENTING THE TRANSFER OF PERSONNEL
AND ASSETS, LIABILITIES AND RECORDS OF NATIONAL GOVERNMENT AGENCIES
WHOSE FUNCTIONS ARE TO BE DEVOLVED TO THE LOCAL GOVERNMENT UNITS AND
FOR OTHER RELATED PURPOSES
WHEREAS,
Republic Act No. 7160, otherwise known as the Local Government Code of
1991, hereinafter referred to as the Code, transfers to responsibility
for the delivery of basic services and facilities from the national
government agencies (NGAs) concerned to the local government units
(LGUs);
WHEREAS, the Code stipulated that the transfer of basic services and
facilities shall be accompanied by the transfer of the national
personnel concerned and assets to ensure continuity in the delivery of
such services and facilities;
WHEREAS, responsive rules and regulations are needed to effect the
required transfer of national personnel concerned and assets to the
LGUs;
NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, by
virtue of the powers vested in me by law and the sovereign will of the
Filipino people and upon the recommendation of the Oversight Committee
of the Code, do hereby order:
Section 1. Transfer of Assets and Personnel. — The
Personnel and assets including pertinent records and equipment,
corresponding to the devolved service delivery functions enumerated
under Section 17 of the Code, shall be transferred to the LGUs.
Sec. 2. Principle and Policies Governing Transfer
of Personnel. —
a.
Coverage, Tenure, Compensation and Career Development. —
1.
Technical and administrative personnel of the NGAs affected by the
devolution of powers, functions, and responsibilities shall be
transferred to the LGUs.
2. The
absorption of the NGA personnel by the LGU shall be mandatory; in which
case, the LGUs shall create the equivalent positions of the affected
personnel except when it is not administratively viable.
3. Absorption
is not administratively viable when there is duplication of functions
unless the LGU opts to absorb the personnel concerned.
4. The
national personnel who are not absorbed by the LGUs under no. 3 above,
shall be retained by the NGA concerned, subject to civil service law,
rules and regulations.
5. There shall
be no involuntary separation, termination, or lay-off of permanent
personnel of the NGAs affected devolution.
6. Devolved
permanent personnel shall enjoy security of tenure.
7. Any
reorganization that will be implemented by the LGUs after the
devolution of functions shall be governed by the provisions of Republic
Act No. 6656.
8. Incumbents
of positions, namely administrator, legal officer, and information
officer declared by the Code as coterminous, who hold permanent
appointments, shall continue to enjoy their permanent status until they
vacate their positions.
9. Casual,
emergency, or daily-wage personnel assigned in the field units of the
NGAs affected by devolution who are performing duties and
responsibilities relative to the delivery of basic service may be
absorbed by the LGUs concerned.
10.
Contractual personnel of the NGAs concerned directly involved in the
implementation of pilot projects in the LGUs need not be devolved.
11. Temporary
personnel shall be absorbed by the LGUs, subject to civil service law,
rules and regulations.
12. Except as
herein otherwise provided, devolved permanent personnel shall be
automatically reappointed by the local chief executive concerned
immediately upon their transfer which shall not go beyond June 30,
1992.
13. The rank
or tenure of devolved permanent personnel shall not be reduced or
impaired.
14. There
shall be no diminution in pay or benefits of devolved personnel.
(b) Criteria
for Deployment. — Subject to the provisions of this Section , devolved
personnel shall be deployed to the LGUs in accordance with the
following criteria:
1.
Personnel performing city or municipality-specific functions shall be
absorbed by the city or municipality where they are assigned.
2. Personnel
performing inter-municipal functions shall be absorbed by the province
wherein the municipalities concerned are located.
3. Regional
personnel undertaking LGU-specific functions may be absorbed by the LGU
concerned.
4. Regional
personnel performing primarily regional functions shall be retained by
the NGAs concerned to form part of their field units to be established
as a result of the phase-out of their regional offices, on or before
October 10, 1992, for purposes of monitoring and coordinating the
devolved basic services and providing technical assistance to the LGUs.
(c) Retention
of Personnel by the NGA. — Regional directors who are Career Executive
Service Officers, and other officers of similar rank, shall be retained
by the NGA without diminution of rank, salary, or tenure.
(d) Vacant
positions in the NGAs. — Existing vacant positions in the NGAs, whose
functions are to be devolved to the LGUs, shall be transferred to the
LGUs concerned on January 1, 1992. In the event of duplication of
functions, however, the corresponding budget allocated to the salaries
of existing vacant positions may be realigned by the LGUs concerned to
fund programs, projects and activities in the sector where the fund
originated.
(e) Exemptions
from Rules on Nepotism, Residency, and Election Ban. —
1.
The rule on nepotism as provided under the Code shall not apply to
devolved personnel.
2. The
residency requirement and prior concurrence of the local sanggunian as
prescribed under the Code for the appointment of local appointive
officials shall not be apply to the devolved personnel.
3. Transfer of
devolved personnel within the six-month transition period from January
1 to June 30, 1992, shall be exempted from the election ban subject to
the approval of the Commission on Elections.
(f) Separation
and Retirement Benefits. —
1.
When the personnel to be devolved opt for voluntary separation or
retirement from the service, they shall be entitled, if qualified under
existing laws, to receive the retirement gratuities and other benefits
accruing thereunder.
2. When an
official or employee is not eligible for retirement, they shall be
entitled to separation pay equivalent to one (1) month salary for every
year of service, plus a proportionate amount for any fraction thereof
over and above the monetary value of their accumulated leave credits
pursuant to existing laws.
3. Payment of
retirement benefits to the NGA personnel transferred to the LGUs shall
be proportionately shared by the NGA and the LGU concerned based on the
length of service of the personnel concerned in both agencies. The
Department of Budget and Management (DBM) shall issue the necessary
guidelines for this purpose.
4. The DBM, in
the case of NGA officials and employees, and the LGUs, in the case of
local government officials and employees, are hereby directed to
provide funding priority to personnel retirement and other benefits
arising from the devolution of basic services to the LGUs.
(g)
Responsibility for Devolved Functions. — The local chief executive
shall be responsible for all devolved functions. He may delegate such
powers and functions to his duly authorized representative whose
position shall preferably not be lower than the rank of a local
government department head. In all cases of delegated authority, the
local chief executive shall at all times observe the principle of
command responsibility.
Sec. 3. Principles and Policies Governing the
Transfer of Assets, Liabilities, Equipment and Records. — (a) Assets,
liabilities, equipment, and records of the NGAs corresponding to the
devolved powers, functions and responsibilities shall be transferred to
the LGU concerned.
(b) Lands and buildings to be transferred to the LGUs
shall, for purposes of disposition, be considered part of the seat of
government of the LGUs as defined under Section 11 of the Code.
(c) The LGUs shall provide appropriate funds in their
respective budgets for maintenance and other operating expenditures of
the transferred assets.
(d) Assets, liabilities, equipment, and records shall
be transferred to the LGUs subject to the following conditions;
1.
Those which are exclusively used within the territorial jurisdiction of
a municipality or city shall be transferred to the municipality or city
concerned.
2. Those which
are used by two (2) or more municipalities and/or component cities
shall be transferred to the province where these
municipalities/component cities are situated.
3. Regional
assets, liabilities, equipment, and records used for the delivery of
devolved services or functions as specified in the Code for a specific
LGU shall be transferred to the LGU concerned.
4. Regional
assets, liabilities, equipment, and records required by the field units
of the NGAs to be established as replacement of the regional offices
that will be phased out shall be retained by the NGA concerned.
5. Assets,
liabilities, equipment, and records of the NGAs within the Metropolitan
Manila Area, which serve more than one (1) LGU, shall be retained by
the NGA concerned.
Sec. 4. Closing, Opening, and Maintenance of
Accounts. — (a) The books of accounts of the NGAs, whose functions are
to be devolved totally to the LGUs, shall be closed as of the date of
transfer and the balances of all transferred assets, liabilities, and
residual equity (surplus) shall be recorded in the books of accounts of
the recipient LGU.
(b) The books of account of the NGAs whose functions
are to be devolved partially to the LGUs shall be adjusted as of the
date of transfer up to the extent of the balances of actual assets,
liabilities, and residual equity (surplus) transferred. These shall be
recorded in the books of accounts of the recipient LGU.
(c) All devolved financial transactions of the NGAs
shall be recorded in the books of accounts of the recipient LGU after
the transfer.
(d) Devolved NGAs maintaining multiple funds shall
prepare a consolidated trial balance.
(e) Subsidiary ledgers shall be prepared and
maintained by the LGUs for each fund and each NGA to facilitate
monitoring and control.
(f) All NGAs affected by devolution shall continue to
prepare the usual year end reports and statements as of December 31,
1991. The reports and statements shall be incorporated in the 1991
Annual Financial Report of the National Government.
(g) Additional guidelines and instructions for the
closing, opening and maintenance of accounts shall be promulgated by
the Commission on Audit.
Sec. 5. Reorganization of the NGAs Affected by
Devolution. — (a) The NGAs affected by devolution shall adopt new
organizational structure and operating systems responsive to
decentralization imperatives.
(b) The NGAs whose functions are not devolved shall
effect the deconcentration of requisite authority and power to their
regional or field offices on or before June 30, 1992 as provided under
Sec. 528 of the Code.
Sec. 6. Period of Devolution. — (a) Except as
herein otherwise provided, the devolution of responsibility for basic
services and facilities and the transfer of assets, liabilities,
personnel, equipment and records to the LGUs shall be completed not
later than June 30, 1992.
(b) All NGAs shall submit not later than March 1,
1992 to the different LGUs a list of the basic services in accordance
with Section 17 of the Code that can be devolved by June 30, 1992.
Those that cannot be devolved by June 30, 1992, shall be devolved not
later than December 31, 1992. For this purpose, the NGAs shall enter
into Memoranda of Agreement (MOA) with the different LGUs on the
schedule and extent of devolution. The NGAs shall furnish the
Department of Interior and Local Government and the DBM with copies of
their MOAs.
(c) Except as herein otherwise provided, the
corresponding salaries of devolved positions shall be transferred to
the LGUs on a quarterly basis by the NGAs concerned not latter than
July 1, 1992.
(d) The corresponding salaries for the positions
devolved pursuant to paragraph B of this Section shall be transferred
to the LGU concerned on the actual date of transfer, but in no case to
go beyond December 31, 1992.
Sec. 7. Monitoring of Transfer. — All NGAs
affected by devolution of functions shall submit to the Oversight
Committee the timetable for the transfer of assets, liabilities,
personnel, equipment and records to the LGUs within one (1) month after
the promulgation of this Executive Order.
Sec. 8. Effectivity. — This Executive Order shall
take effect immediately upon its publication in a newspaper of general
circulation.
DONE in the City of Manila,
this 22nd day of January, in the year of Our Lord, Nineteen Hundred and
Ninety-Two.
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