Directing the Abolition of the Partido Development Administration, and for Other Purposes

September 25, 2018

MEMORANDUM ORDER NO. 29

DIRECTING THE ABOLITION OF THE PARTIDO DEVELOPMENT ADMINISTRATION, AND FOR OTHER PURPOSES

WHEREAS, the Partido Development Administration (PDA) was established in 1994 pursuant to Republic Act (RA) No. 7820 or the "Partido Development Administration Act of 1994," as amended by RA No. 8989, to accelerate the development of the following municipalities comprising the 4th District of the Province of Camarines Sur: (a) Sagnay; (b) Tigaon; (c) Goa; (d) San Jose; (e) Lagonoy; (f) Tinambac; (g) Siruma; (h) Presentacion; (i) Garchitorena; and (j) Caramoan;

WHEREAS, despite the operation of the PDA for almost twenty (20) years, the 4th District of the Province of Camarines Sur has the highest poverty incidence level compared to other districts of the Province, and has a higher poverty incidence compared to the average for the entire Bicol Region;

WHEREAS, the Sangguniang Panlalawigan of Camarines Sur, through its Resolution No. 474 (s. 2017), urged the President and the Governance Commission for Government-Owned or -Controlled Corporations (GCG) to cause the immediate abolition of the PDA in view of its failure to serve the lawful purpose for which it was created;

WHEREAS, the PDA and its various operating units have been consistently operating at a loss for several years, which necessitates continuous subsidy from the National Government;

WHEREAS, pursuant to Section 5 (a) of RA No. 10149 or the "GOCC Governance Act of 2011," the GCG recommended the abolition of the PDA for the following reasons: (a) the PDA performs functions or purposes that duplicate or unnecessarily overlap with functions, programs, activities or projects already provided by a government agency; and (b) the PDA is not producing the desired outcomes, or no longer achieving the objectives and purposes for which it was originally designed and implemented, and/or not cost efficient and does not generate the level of social, physical and economic returns vis-à-vis the resource inputs;

NOW, THEREFORE, the following are hereby ordered:

SECTION 1. Abolition of the PDA. — The PDA is hereby abolished.

SECTION 2. Disposition of Assets, Settlement of Liabilities, and Relinquishment of Functions. — The Privatization Management Office (PMO) shall dispose of the assets of the PDA to settle its outstanding liabilities in accordance with applicable laws, rules and regulation.

The planning and developmental functions of the PDA shall be relinquished to the appropriate local government units, while the administration and operations of the Nato Port shall be relinquished to the Philippine Ports Authority.

SECTION 3. PDA Board of Directors as the Administrator and Liquidator. — The PDA Board of Directors shall act as the administrator and liquidator of the PDA, and implement the following activities: acEHCD

a. Preserve and maintain the assets of the PDA, and assist the PMO in the disposition of such assets;

b. Settle the liabilities of the PDA;

c. Issue the Notice of Termination to all affected officers and employees of the PDA within sixty (60) days from the issuance of this Order;

d. Maintain a minimum number of personnel necessary to preserve and maintain the assets of the PDA, and assist in the liquidation of its corporate affairs;

e. Settle the retirement and/or separation benefits of affected officers and employees of the PDA; and

f. Perform other acts necessary to implement the abolition of the PDA.

For purposes of monitoring, the PMO and PDA Board shall provide the GCG with the respective quarterly status reports on the disposition of assets and implementation of the abolition.

SECTION 4. Compensation for Affected Officials and Personnel. — All affected officials and personnel of the PDA, whether regular or contractual, may avail of the separation benefits below in addition to retirement or separation benefits allowed under existing laws:

 

Years in Service	Rate
First 20 years	1.00 x BMP* x No. of years
20 years and 1 day to 30 years	1.25 x BMP x No. of years
30 years and 1 day and above	1.50 x BMP x No. of years

*Basic Monthly Pay

 

Funding for the separation pay and other benefits of affected officials and personnel of the PDA shall be sourced from its corporate funds. The Department of Budget and Management shall ensure that there are sufficient funds to cover the compensation for affected officials and personnel.

SECTION 5. Repeal. — All other orders, issuances, or parts thereof, which are inconsistent with the provisions of this Order, are hereby repealed or modified accordingly.

SECTION 6. Separability. — If any provision of this Order is declared invalid or unconstitutional, the other provisions not affected thereby shall remain valid and subsisting.

SECTION 7. Effectivity. — This Order shall take effect immediately upon publication in the Official Gazette or in a newspaper of general circulation.

DONE in the City of Manila, this 25th day of September, in the year of Our Lord, Two Thousand and Eighteen.

 

Published in the Official Gazette, Vol. 114, No. 41, p. 7014 on October 8, 2018.