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WHEREAS, it is the fundamental aim of the State to provide every possible opportunity and facility to accelerate the pace of progress throughout the land with emphasis not only in areas where economic development lagged but likewise in places where political considerations, among others, constitute a serious impediment to the early realization of the aims and purposes of the New Society;

WHEREAS, creation of municipalities, through division of existing municipalities, would not only enhance the development of the areas involved for projects intended for development would be given closer attention and supervision by local officials but would also ensure peace and order within their respective localities;

WHEREAS, the necessity is imperative to create by division, the Municipality of New Panamao, out of the existing Municipality of Panamao (Old) so as to maximize the efficacy of law and order thereat and to expedite optimum development thereof;

WHEREAS, the creation of the Municipality of New Panamao will benefit economically, socially and politically the residents of the area or areas affected;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and decree and make as part of the law of the land:

SECTION 1. Panamao in the Province of Sulu shall remain a municipality, exercising powers and discharging functions over the areas specified in the law of its creation, except the barangays of Gagguil, Kamih Pungud, Libug-Kabaw, Punay, Gata-gata, Tiptipon, Pandakan and Lubok-lubok, all of the aforesaid municipality, which are hereby segregated therefrom to constitute a separate and independent municipality to be known as the Municipality of New Panamao, also in the Province of Sulu.

SEC. 2. The seat of government of the Municipality of New Panamao shall be in Barangay Punay.

SEC. 3. Except as hereinafter provided, all provisions of law, now or hereafter applicable to regular municipalities, shall be applicable to the New Municipality of New Panamao.

SEC. 4. The present elective municipal officials of the Municipality of Panamao shall continue to perform their duties as such officials in the newly created Municipality of New Panamao until the municipal officials of said municipality shall have been appointed by the President or elected in the regular elections for municipal officials following the issuance of this Decree and shall have qualified, unless sooner removed at the pleasure of the President. Such appointive officers and employees as may be necessary to organize or to complete the government personnel of the Municipality of New Panamao shall be appointed as provided for under existing laws.

SEC. 5. Upon the effectivity of this Decree, the proportionate share of the New Municipality of New Panamao in the obligations, funds, assets and other property of the Municipality of Panamao shall be transferred by the President to the newly created municipality upon the recommendation of the Commission on Audit.

SEC. 6. All laws or parts of laws as well as all executive orders or regulations inconsistent herewith are hereby repealed or modified accordingly.

Done in the City of Manila, this 1st day of January, in the year of Our Lord, Nineteen Hundred and Eighty.

			(Sgd.) FERDINAND E. MARCOS President of the Philippines
	By the President:
	(Sgd.) JACOBO C. CLAVE
		Presidential Executive Assistant