EXECUTIVE ORDER NO. 28
EXECUTIVE ORDER NO. 28 - DIRECTING
THE CONSOLIDATION OF THE GUARANTEE FUND FOR SMALL AND MEDIUM
ENTERPRISES WITH THE SMALL BUSINESS GUARANTEE AND FINANCE CORPORATION
WHEREAS,
the government recognizes the need for equity-led growth and
development strategies in order to ensure that the benefits of economic
growth and progress are more effectively channeled to the neediest
members of society;
WHEREAS, the government is fully committed to assist and support the
development of the Small and Medium Enterprises (SME) sector as a means
of promoting economic growth and as an effective venue for equitably
distributing the benefits of economic progress;
WHEREAS, in order to more effectively assist the sector, it is the
policy of government to rationalize the credit guarantee and related
financial supplementation support systems for the SME sector;
WHEREAS, it is the policy of government to continuously improve and
upgrade efficiencies in the delivery of public services, particularly
those services that are directed to vital sectors of the economy and
society such as the SME sector, and in so doing desires to put in place
highly qualified professionals competitively chosen in their fields of
experience and expertise;
WHEREAS, the government is cognizant of the need to reorganize in order
to eliminate redundancies, improve efficiencies and achieve cost
savings, within the confines of the law as provided for by R.A. 6656,
an Act which provides personnel-related guidelines in the
implementation of government reorganization;
WHEREAS, Executive Order No. 233 Series 2000, and Executive Order No.
19 Series 2001, transferred the Guarantee Fund for Small and Medium
Enterprises (GFSME) to the Department of Trade and Industry (DTI) and
mandated its consolidation with the Small Business Guarantee and
Finance Corporation (SBGFC) under the continuing authority of the
President to transfer any agency under the Office of the President to
any other Department or agency as provided for in Sec. 31 Chapter 10
Book III of the Administrative Code of 1987;
WHEREAS, Section 11, Article D of R.A. 6977, also known as the Magna
Carta for Small Enterprises, as amended by R.A. 8289, created a nine
(9)-member Board of Directors for the SBGFC upon which the powers of
the Corporation shall be vested, and which should include a
representative each from the five (5) government financial institutions
(GFI) mandated by law to provide the initial capital of the Corporation;
WHEREAS, Section 12 of R.A. 6977 as amended by R.A. 8289 calls for
additional funding for the capitalization of the SBGFC from unused or
excess funds of existing government agencies;
NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic
of the Philippines, by virtue of the powers vested in me, do hereby
order:
Section 1. The GFSME shall be consolidated with
SBGFC. The GFSME organization shall be abolished upon the complete
transfer of its programs and resources to the reorganized SBGFC. The
assets of GFSME as reflected in its latest audited financial statements
including subsequent additions/accruals thereto, after deducting all
the cost of separation of GFSME personnel, gratuities and benefits
granted under existing laws and all direct and incidental costs
appurtenant to the abolition thereof as provided in Sec. 5 hereof,
shall be transferred to the SBGFC to form part of its capital structure
as additional equity of the national government pursuant to Section 12
of R.A. 6977. All liabilities which have accrued prior to the
consolidation with SBGFC shall be honored under the new
organization.
Sec. 2. In view of the additional equity of the
national government in SBGFC and pending an amendment of the SBGFC law
authorizing a proportional representation of said additional equity of
the national government in the SBGFC Board of Directors, the
representatives of Land Bank of the Philippines, Development Bank of
the Philippines, Government Service Insurance System and Social
Security System shall be nominated by the national government in
consultation with the Secretary of DTI and the respective Board
Chairmen of these agencies, and need not be officers of these said
institutions.
Sec. 3. The SBGFC shall be reorganized in order to
cover the programs and resources transferred from GFSME. The new
organization shall be made more responsive to the present credit
supplementation requirements of the SME sector and shall widen the
coverage of alternative financing instruments needed to make small
Philippine businesses competitive in a rapidly globalizing environment.
A proposal for a new structure shall be submitted to and approved by
the Department of Budget and Management (DBM) within thirty (30) days
from signing of this Executive Order. The DTI Secretary shall oversee
the drafting of the proposed structure in consultation with the SBGFC
Board of Directors and the GFSME Management Committee.
Sec. 4. An independent Personnel Selection
Committee shall be created by the DTI Secretary to recommend: a) what
positions in the newly DBM-approved structure will be opened for
filling-up consistent with the objectives of cost efficiency and
effective service; b) the qualification standards for positions in the
new structure which should at least meet the requirements of the Civil
Service Commission (CSC); and c) selection of personnel to fill-up
opened positions who should be competitively chosen with the end of
setting up a highly professional and development-oriented organization.
The Committee shall serve its purpose until such time that the new
organization can set-up appropriate internal rules and regulations on
personnel recruitment, selection and hiring.
Sec. 5. The SBGFC and GFSME personnel shall be
entitled to separation pay which shall be two (2) months of latest
compensation for every year of service in the government, which shall
be in addition to all gratuities and benefits to which they may be
entitled under existing laws; provided, however that those who avail of
such privileges shall start their government service anew if absorbed
by the reorganized SBGFC or any other government entity.
Sec. 6. Separated employees of SBGFC and GFSME
shall be on equal footing regardless of the agency they came from and
they shall have priority in the selection of personnel to fill-up
opened positions in the new SBGFC structure.
Sec. 7. As provided under Article e Section 11
Chapter III of R.A. 8289, the allowance and fringe benefits structure
of the reorganized SBGFC may be parallel to those enjoyed by employees
of other GFIs, including among others its provident
fund.
Sec. 8. All personnel-related movements resulting
from the consolidation and reorganization shall be implemented within
CSC rules and regulations.
Sec. 9. During the transition period prior to the
setting up of the reorganized SBGFC, the SBGFC shall be managed by its
Board of Directors and the GFSME by its Management Committee.
Sec. 10. The DTI Secretary is hereby authorized to
promulgate additional implementing rules and regulations, as necessary
to ensure the orderly consolidation of GFSME with SBGFC and its
reorganization
Sec. 11. All executive orders, issuance, orders,
rules and regulations which are inconsistent with this Executive Order
are hereby revoked, amended or modified accordingly.
Sec. 12. If any provision of this Executive Order
shall be held unconstitutional, the remainder of the Order not
otherwise affected shall remain in effect.
Sec. 13. This Executive Order takes effect
immediately.
DONE in the City of Manila this
30th day of July in the year of our Lord, Two Thousand and One.
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Since 19.07.98.