PMS LIBRARYAUG , ~ 1992M,\I_ACANAN(;

Mi\NI14A

MEMORANDUM ORDER NO. 27

MANDATING ALL HEADSINSTR UMENT ALITIESSTREAMLINE AND]ORGANIZATIONS

OF DEPARTMENTS, AGENCIES ANDOF THE 'NATIONAL GOVERNMENT TO[MPROVE THEIR OPERATIONS AND

WI-IEREAS, there is a need to strengthen existing economic stabilizationmeasl;1res to ensure a smooth and enduring transition to growth and prosperity;

WI-IEREAS, continued fiscal discipline is a major component of thisstabilization program through optional allocation ?f scarce resource,s;

WI-IEI{EAS, the meager resources alloted to the different departments for FY1993 as reported in the Cabinet Meeting of 7 July 1992 may not be able to include iliepriority functions, programs, a.nd thrusts of the new government;

WI-IEREAS, there is a corresponding need to assess the organizationalarrangements within each government agency to streamline operations, andprovide a stronger and more efficient organizational and budgetary support. toprioJity P!ograms and projects;

WHEREAS, Section 48 of Republic Act No. 7180 mandates the scaling do\vn,phasing out or abolition of agency activities which are no longer essential in the

delivery of public services, and the utilization of budgetary savings generatedtherefrom in I?riority programs, projects and activiti~~ofagencies;

.NOW, THEREFORE, I, FIDEL V. RAMOS, President of the Republic of th<.'

Phili ppines, by virtue of t~e powers vested in me by law I do .hereby orde~:

SECTION 1," COVERAGE. This Memorandum Order shall cover allExecuti ve Departments, including agencies and corporations attached thereof, aswell as State Universities and Colleges. This Order shall apply on voluntary basi§' tothe Constitutional Offices, the Judiciary, and the Legislature.

SEC. 2. ASSESSMENT AND STREAMLINING OF AGENCY OPERATIONSAND ORGANIZATION. All heads of agencies are hereby directed to conduct acomprehensive assessment of their respective operations and organizations with aview to achieve the following objectives:

2.1

To eliminate unnecessary duplication, proliferation and overlapping ofagency functions, programs, projects and activities, and abolish thosethat are redundant, irrelevant and outdated; and

-2-

To provide stronger organizational, financial and manpowersupport to key functions and priority programs, projects andactivities, through the appropriate focusing and re-allocation ofagency resources.

SECTION 3. STREAMLINING CRITERIA. In the streamlining of theirrespective operations and organizations, agency heads may be guided by thefollowing criteria:

Programs) projects and activities falling under any of the followingcategories may either be phased out or abolished:

a)

Those that are not producing the desired effects, and no longerachieve the objectives and purposes for which they wereoriginally designed and implemented;

Those that are no longer relevant to the agency mandate orfunctions;

b)

Those that are not cost-efficient and do not generate the level ofphysical and socio-economic returns i\ltended for specificamounts of resource inputs; and

c)

Those that duplicate, or unnecessarily overlap with otherprograms, projects and activities, or those that are redundantand outdated. '

d)

Those that unnecessarily duplicate or compete with the private.sector and can be done more efficiently and effectively by it.

e)

The followinJ; programs, projects and activities may be scaled down:3.2

Those that. are not presently considered as having high prioritybut for which substantial amounts of finarlcial, manpower andphysical resources are available; and

a)

b) Those that are supposed to provide services to a wide segmentof the population or over a wide geographical area, resulting ina thinly spread, unfocused provision of benefits or services.These programs, projects and activities should be scaled downin scop~ by focusing on priority areas or population segments.

3-

The following programs, projects and activities shall be given priorityin the allocation of all organizational resource;;:

3.3

Those that are directly involved in th(: social, economic andpolitical empowerment of the people; rromote private sectorinitiative; or those that contribute to the creation of livelihoodor employment opportunity, and an environment conducive toinvestment and entrepreneurship, and r:roductivity.

a)

b) Those that are concerned with th~ regular dutiesgovernance as mandated by existing lav- s.

of'

Those that directly contribute to the fulfillment of agencymandate.

c)

ofd) Those that directly relate to the conservationenvironment.or provide strategic suppor~, thereof..

SECTION 4. IMPLEMENTATION PROCEDLfRE. The followingprocedures shall guide agencies in the streamlining of their operations andorganizations:

~

The new program, project activity structure oi' the agency should bedefined, those which will be abolished, mc:ged, scaled down orphased out should be identified,

4.1~

".~;.;""

,

4.2

The necessary modifications in the organiz,ltional arrangementsincluding possible revisions in the formal structure,prograrn/projectJactivity distribution, and staffing patterns should bethoroughly studied and justified. These mf.:difications should beimplemented under the following conditions:

,-

a) That formal structural modifications will not violate theagency enabling act and other pertinent 1aws..

b) That no incumbent to any permanent position will beterminated as a result of the streamlining, nor should theysuffer any diminution in compensation.

c) That the deployment of people will be cal'ried out in accordancewith pertinent Civil Service Laws.

d) That positions which have remained vacant or have beenvacated as a result of these modification~, should be abolished.

-4-

The savings in financial resources generated should be identified,and the intended reallocation of these resources to priorityprograms, projects and activities should be carefully planned andimplemented in accordance with existing budgetary rules andregulations.

4.3

SECTION 5. REPORTING PROCEDURE AND SCHEDULE. AllDepartment Secretaries, Heads of Agencies, and the President of P ASUC in thecase of State Universities and Colleges, shall submit a Streamlining Report to theOffice of the President, through the Department of Budget and Management,containing the actions taken to fulfill the provisions of this Order, in accordancewith the schedule and reporting procedure indicated hereunder:

The report shall contain the following and may be presented in theforms attached herewith:

Function! Activi ty/Project Structure Modifications, reflectingthe structure of regular programs and activities, and the list ofpublic investments projects to be undertaken.

a.

b. Organizational Modifications Report, reflecting revisions inthe formal internal structure, program/project/activitydistribution, staffing distribution, and positions to be abolished.

FY 1992 Budget Modifications, indicating the realignmentJredistribution of all pertinent budgetary resources from oneFunction/Activity/Project to another. Realignments whichrequire authority shall be submitted to DBM and acted on bythat Department within 15 days upon receipt thereof.

c.

The report submission schedule shall be as follows:

The Streamlining Report shall be submitted within 60 daysupon the effectivity of this Order.

a.

b. The Department of Budget and Management shall submit tothe President a comprehensive report on the results of theimplementation of this Order, within 90 days upon theeffectivity of this Order.

5 -

SECTION 6. EFFECTIVITY.immediately.

This Memorandum Order shall take effect

DONE in the City of Manila, this 13th day of August, in the Year of OurLord, nineteen hundred and ninety-two.

~By the President:

=:~

DIONISIO S. DE LA SERNASenior Deputy Executive Secretary

CERTIFIED COpy~~"')..1.-"'~ .

AURORZdiJAQUI~ti-PRESIDENTIAL STAFF DJRE.cTO:~

h4 -.i111 1141, '"

~@"

~~

!'!

~~~ -

~ ~

~~

R.

"tr~B

s.-;s;:

\t)

~ -.

;s ;s

~;;:o

I:) ~

;:.."s:;:;s~

Q

.~

5.

E;:";s

3-. -s;:;;:oQ

.~

~.

E~~

;: ~

~ :;

~

;:;s

Q.

~;:

~ ~

~

~;s

I:)\t)

;:~'"C

'~~

~~

Q.~

S

Q.

~~\t) -.

.~

Q"S.

[~~~~§.\t)\t)~I:);:~~~~~§:~

()0 d~roo'

~

~"'09~

~'-c

tT1>

q~d~t""'

~!

81~

~I -~ft)rn

g[rn c:'iD

"~~>~

~

>

g~~~o-i>~Q"03.C

I

~,~f

ed§C

)

tt1...,)0-

~~q-0~)0-

~~~0'a

q~0Cj

:;;-8-0z~"'d0~

~tD><

>

~N

""'-'...~

~~

~2

R;o..n

I:) ..~

P".

":3",";00~

g-~~

~~

,.

~~

~~

"'tE"

~~

;1.

s. ..'0'

:3 <

'- "'t

~~

~§ S

' g..~

OQ

Q"

E;:;:

.'1 ;S

"'t

~;;:~

g\l);:-~

;o;:

~. 5.

":3:i-;o;S

--,

--~

~ ~

~-;or-

_o~~

Q""I.

;SO

~

;0

-.":3~~

~~

~~

~1) ~

-.

*~~

;o~~

~

".. ::-00i'

U)

;SO

-.;or- O

Q

§~;:

-~;s

;0 0 -.

~~

~:3 ~'O

'OQ

~"'tt.:3B

~-

g..::",-o;:~

~=

. Q ~

.~

~

5.Q

~;s

~~

~~

~

;0Q"

0a:::to

~":3

~~~f'

z~~~>.9

0z~~ 0'E5Izn~~

0r!d

~~>

~0~r..cC

/)""i

~~~~0tj-~-£-0zC/)

gtD><

~

~~

~~~

~

.--o' ~

o'

~ ~

1~~~

~~

~

~~

-.~

§

:s ~

~~

(II

B 5"

;1 ::

:S:5:

~ ~

~...

~~

goB.

l;;":~:3- -.~

:s.~

~-.g:~;::~~go;;-:s.~(II:3-C

)::E

:0-~0-~2--

~

~'itN

""'U)

';1'

...'

~II:2.I:x

~Ei~~..~~&..

~~.~'" ~~I C)~

~!J

~~~ ~~~tt1~~~~a~~0 ~~g]

--.0:.

~~Q~~~ ~~

~~~-zC')

~0~-~~tj0z~

~~n

" ,,' .,.) .