President Rodrigo Duterte has transferred the Philippine Reclamation Authority under his control and supervision to make the agency “more effective,” the Palace said on Monday.
In Executive Order No. 74, Duterte moved the PRA to the Office of the President, delegating the PRA Governing Board the power of the President to approve reclamation projects and other purposes, aiming to rationalize operations for sustainable resource development.
The PRA used to approve reclamation projects on behalf of the chief executive, but Duterte’s new directive repealed the two previous executive orders that placed the PRA under the control of the Department of Environment and Natural Resources and the National Economic and Development Authority.
“The PRA shall be under the control and supervision of the OP, while the power of the President to approve all reclamation projects shall be delegated to the PRA Governing Board,” the EO read.
“Such delegation, however, shall not be construed as diminishing the President’s authority to modify, amend, or nullify the action of the PRA Governing Board,” it added.
According to the EO, there is a need to “rationalize the approval process for reclamation projects towards an economically and environmentally sustainable resource development.”
The order also underscored the government’s policy “to increase competitiveness, promote ease of doing business, and rationalize and streamline functions of agencies to facilitate efficient delivery of government services.”
In order to integrate, direct, and coordinate all reclamation projects for and on behalf of the State, the PRA shall seek the advisory opinions of the NEDA, DENR, and the Department of Finance.
The PRA must seek the opinion of the NEDA on consistency of the project with national and regional development planning and programming, and established national priorities of the government; the DENR on the environmental sustainability of the project and compliance with environmental laws; and, Department of Finance on the economic and fiscal viability of the project.
The order also applies to all reclamation projects, including those initiated by local government units and other government entities allowed under existing laws to reclaim land, “for which there are no contracts/agreements yet executed between the government entity concerned and a private sector proponent” before the effectivity of the said order.
“No reclamation project shall be approved by the PRA without the required Area Clearance and Environmental Compliance Certificate to be issued by the DENR. The DENR shall ensure transparency and inclusivity in the conduct of the Environmental Impact Assessment which shall include public disclosure and multi-stakeholder engagement,” the document read.
The PRA shall also craft a National and Regional Reclamation and Development Plan (RDP) that will consider the environmental, social and economic impacts of proposed relocation projects.
These plans, as mandated by the said EO, must undergo public consultation with the DENR, NEDA and affected local government units, and shall be consistent with the greater public interest.
The PRA Governing Board, meanwhile, shall set aside 5 percent of its net earnings to develop its capability and expertise to reclaim lands, ordering them to craft a five-year development plan to transform the PRA into a “premier reclamation authority.”
The order, signed by Executive Secretary Salvador Medialdea, took effect immediately.
Sought for an explanation on Duterte’s new directive, Presidential Spokesman Salvador Panelo said that the transferal of the PRA directly under the President’s watch will “streamline the services” of the agency to make it “more effective.”
“That’s the discretion of the President. He has control over the Executive departments and offices. Perhaps the reason is to streamline the services of agencies and maybe make it more effective,” Panelo said in a Palace press briefing.
“Maybe he feels it would be better for it to be under the Office of the President. Because under the Office of the President, government agencies tend to work faster,” Panelo added.
Asked if the President was dismayed over the efforts done by NEDA, Panelo said: “Not necessarily.”
The Palace official also said that the new directive was “not necessarily connected” to the alleged reclamation projects along the Manila Bay, stressing that Duterte only wants to be “hands-on” on the issue.
Following the ongoing cleanup of then-garbage-filled Manila Bay, some environmental groups have already called on the government to stop the looming reclamation projects in order to protect its decaying environment.
As this developed, the Department of Justice on Monday lauded the decision of Congress to keep the Office of the Government Corporate Counsel and the Presidential Commission on Good Government under its jurisdiction.
Justice Secretary Menardo Guevarra backed the approval by both the Senate and the House of Representatives of the bicameral conference committee, which rejected the proposal to abolish the two agencies and transfer their functions to the Office of the Solicitor General (OSG).
“The DOJ has always taken the position that the OGCC and the PCGG serve unique purposes and, for that reason, should continue to exist,” Guevarra said, in a brief statement.
OGCC chief Elpidio Vega also welcomed the development, saying “the OGCC lauds the decision of the bicameral conference committee and the recognition that the OGCC is separate and distinct from the OSG.”
“The OGCC has, through the years since its creation, specialized its legal services to protect the government owned and controlled corporations, dutifully safeguarding their legal interests. It has diligently provided the legal services necessary in order that GOCCs’ mandates shall be achieved for the good of the country,” Vega pointed out.
Vega is appealong to Congress to improve and strengthen the charter of the OGCC “in order to enhance its legal services and further address the legal requirements of more than 130 GOCCs and almost 500 water districts.”
The bicameral conference committee has agreed on the final version of the proposed law strengthening the OSG in a meeting last Jan. 21.
Senator Richard Gordon, member of the committee, said their members decided not to abolish the OGCC and PCGG.
Gordon said Congress decided to retain the OGCC since the OSG has only 250 lawyers, each handling 1, 400 cases.
“So we don’t want them being saddled by additional duties of the GOCCs so it will remain as is,” he said.
Gordon said the PCGG still has businesses to finish, citing the agency’s collection of P171 billion and target of collecting P40 billion more in 2020.
The DOJ had strongly opposed the bills in the House of Representatives seeking to abolish OGCC and PCGG and transfer their respective functions under the OSG.
It explained that OGCC and PCGG have special functions entirely different from the OSG. He said consolidating both agencies could result in conflict of interest in many cases.
“At present there are numerous cases wherein the OGCC and the OSG find themselves representing opposing sides with conflicting interest. The OGCC represents the GOCCs (government-owned and controlled corporations), while the OSG represents different agencies of the government like the Bureau of Internal Revenue, Bureau of Customs, Department of Finance and the like,” the DOJ has explained in its legal opinion in 2017 submitted to the House.
“If the BIR, for instance, assesses a tax on a GOCC like the Philippine Charity Sweepstakes Office, and the latter interposes as its defense that it is exempted from the tax, this conflict can only be resolved by going to court and it would be absurd if both entities will be represented by the Solicitor General,” it said.
The DOJ further argued the OGCC should be recognized for its key role in economic achievements of the state-owned corporations.
As for the PCGG, the DOJ said that President Duterte does not want the agency abolished but instead wants to expand and broaden its powers.
Both PCGG and OGCC are under the administrative supervision of the DOJ, while the OSG is an attached agency of the department.