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EXECUTIVE ORDERS
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EXECUTIVE ORDER NO. 323 -
CONSTITUTING AN INTER-AGENCY PRIVATIZATION COUNCIL (PC) AND CREATING A
PRIVATIZATION AND MANAGEMENT OFFICE (PMO) UNDER THE DEPARTMENT OF
FINANCE FOR THE CONTINUING PRIVATIZATION OF GOVERNMENT ASSETS AND
CORPORATIONS
Whereas,
pursuant to Republic Act No. 8758 s. 1999, the life of the Committee on
Privatization (COP) and the Asset Privatization Trust (APT) will expire
on December 31, 2000.
Whereas, Republic Act No. 8758 provided that, “All assets held by the
Asset Privatization Trust, all moneys and other properties belonging to
it, and all its liabilities outstanding upon the expiration of its term
shall revert to and be assumed by the National Government”.
Whereas, Republic Act No. 8758 mandated the transfer for disposition of
the assets held by the APT by the President of the Philippines to the
trust department of the appropriate government financial institution or
appropriate government agency upon the expiration of the term of APT;
Whereas, Executive Order No. 12, s. 1998 reaffirmed the privatization
policy of the Government by encouraging all heads of departments,
bureaus, agencies and instrumentalities including government owned and
controlled corporations to identify assets and activities that can be
efficiently and effectively undertaken by the private sector; by
broadening the coverage of privatization activities with the inclusion
of some authorities such as Bases Conversion and Development Authority
(BCDA), Public Estates Authority (PEA), Philippine Tourism Authority
(PTA), Philippine Economic Zone Authority (PEZA) and Subic Bay
Metropolitan Authority (SBMA); and by directing the COP to consider
other alternative modes of privatization such as leasing, management
and maintenance contracts, BOT schemes or joint venture arrangements;
Whereas, under the Constitution and under the Administrative Code of
1987, the President, as Chief Executive, has control and supervision
over, and the authority to reorganize, the Executive Branch of the
Government, including the Office of the President;
Whereas, the Government’s privatization program has proven beneficial
and helpful to the economy in terms of generating revenues, improving
investment climate, attracting foreign capital and investments,
broadening ownership base, developing capital markets and fostering
private sector participation;
Whereas, there are remaining partially sold and undisposed accounts
approved for privatization consisting of 150 transferred assets, of
which 88 are partially sold and 62 are still undisposed, 57 government
owned or controlled corporations, of which 31 have been partially sold
and 26 are still undisposed, and several surrendered properties with
sizeable amount of projected revenues for the much-needed resources of
the Government;
Whereas, there is a vast opportunity for greater private sector
participation in the development of the Philippine economy with the
successful launching of Government’s PROGRESS Bonds and the pending
enactment by Congress of the bill restructuring of the power industry
and privatizing the National Power Corporation;
NOW, THEREFORE, I, JOSEPH EJERCITO ESTRADA, President of the
Philippines, by virtue of the powers vested in me by law, do hereby
order:
ARTICLE
I
Restatement of the Policy
Section 1.
ARTICLE
II
The Privatization Council
Section 1.
Sec. 2.
The Technical Committee shall also be established to be composed of the
representative of the Department of Finance as Chairman, and
representatives of the Department of Justice, Department of Budget and
Management, Department of Trade and Industry, National Economic
Development Authority, Bureau of the Treasury and the PCGG, as members.
Sec. 3.
Sec. 4.
The presence of the majority of the voting members shall constitute a
quorum and the concurrence of said majority should be adequate for any
decision of the Council: Provided, that were a disposition or
rehabilitation proposal is involved, the decision of the Council must
be unanimous. In case they are unable to attend, the Chairman and
Members may designate any of their immediate subordinates with the rank
of Undersecretary or its equivalent to represent them in the meetings
of the Council.
The Council shall act on any recommendation for disposition not later
than thirty (30) days from the date of its submission to the Council.
Sec. 5.
Sec. 6.
ARTICLE
III
Privatization and Management
Office
Section 1.
The Office shall be headed by a Chief Privatization Officer (CPO) who shall be appointed by the President of the Philippines upon recommendation of the Secretary of Finance.
The Chief Privatization Officer shall be assisted by four (4) Deputy Privatization Officers who shall be in charge of specific operations and undertakings as directed by the Chief Privatization Officer. These Deputy Privatization Officers shall be appointed by the Secretary of Finance upon recommendation by the Chief Privatization Officer.
Sec. 2.
Any and all sales and other modes of privatization or disposition shall
not be considered final unless and until approved by the Council.
All receipts from the sale of assets of the Office, except portions
thereof for reimbursable custodianship and/or operational expenses,
shall be remitted to the National Treasury.
Sec. 3.
1.
2.
Sec. 4.
Sec. 5.
Sec. 6.
Appropriations for the succeeding year shall be incorporated in the
budget proposal for the Department of Finance.
ARTICLE
IV
Operational Provisions
Section 1.
Sec. 2.
Sec. 3.
Any of the following transactions shall be deemed compliance on sale to
small local investors: (a) Initial Public Offering (IPO), (b) Employee
Stock Option/Ownership Plans (ESOPs). Provided, that the Social
Security System and Government Service Insurance System shall grant
loans to qualified employees of the firms under privatization who would
like to avail the ten percent (10%) stock offering as provided in this
Executive Order, (c) sale to private and government employees, overseas
workers, small farmers/fisherfolks and cooperatives through Government
Financial Institutions such as GSIS, LBP, DBP and HDMF, (d) sale of
assets/shares to individual investors not exceeding a maximum of
P100,000.00, (e) sale to retirement funds, pension funds and other
funds managed on behalf of employees and other individuals, (f) sale of
privatization bonds issued by the Republic of the Philippines provided
that the terms of such privatization bonds give the option to holders
thereof to exercise the exchange option contained in such bonds either
into shares in corporate assets privatized through the IPO or into a
cash amount where the privatized corporate asset is being sold to one
or more block investors.
ARTICLE
V
Miscellaneous Provisions
Section 1.
Sec. 2.
Sec. 3.
DONE in the City of Manila,
this 6th day of December, in the year of our Lord, Two Thousand.
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