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WHEREAS, there is particular need for the reorientation among public officials and employees and the people in general on the right sense of spiritual and moral values as the foundation of an enduring national strength and character, with a view to stopping the illegal acquisition of material gains through dubious means such as graft and corruption, smuggling, subversion and lawlessness;

WHEREAS, more than the punishment of criminals and corrupt officials and employees, it is the determined policy of the Administration to prevent the commission of crimes and other venalities through proper education, information and other preventive measures, with the government personnel setting the right example of dedicated service and upright leadership;

WHEREAS, in order to achieve more efficiency and competent performance in the administration of government, it is necessary that a more thorough and expeditious study be made of official matters, issues and problems demanding executive attention; and

WHEREAS, in order to insure good government and prompt action on various administrative problems dealing with requests and complaints of the public and of the national and local governments, reforms should be instituted to attain social, economic and political advancement for the greatest good to the greatest number of people;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by law, do hereby create the Presidential Agency on Reforms and Government Operations (PARGO) as the executive instrumentality in the Office of the President that shall render the necessary services enumerated above to the end that administration of government may thereby achieve higher proficiency, keep itself informed of the actual conditions of the Republic and prove more responsive to the needs of the people.

1. The Presidential Agency on Reforms and Government Operations shall be directly under and responsible only to the President of the Philippines, and shall be headed by the Assistant to the President. He shall be a member of the Cabinet, with all the rights and privileges of the office.
   
   
2. The Assistant to the President is hereby authorized to recommend to the President the appointment of his personal and technical staff, and the detail of and assignment to the Agency of such personnel and equipment as it may require from departments, bureaus, offices and agencies and other instrumentalities of the government.
   
   
3. The Assistant to the President may call upon the Technical Advisers to the President to assist in the study of, and/or give advice on, matters within the scope of their respective fields.
   
   
4. The Presidential Agency on Reforms and Government Operations shall have the following functions and responsibilities:
   
   
   1. To provide a central clearing house through which the general public and all government officials and employees may transmit inquiries, ventilate grievances and lodge complaints, and receive information and welcome advice.
      
      
   2. To investigate all activities involving or affecting immoral practices, graft and corruption, smuggling (physical or technical), lawlessness, subversion, and all other activities which are prejudicial to the government and the public interests, and to submit proper recommendations to the President of the Philippines.
      
      
   3. To establish and maintain direct liaison between the President of the Philippines and the executive departments, bureaus, offices, agencies and instrumentalities of the government, including government-owned or controlled corporations, and all branches of local governments, and to coordinate with these offices to insure the speedy and effective implementation of the policies of the Administration.
      
      
   4. The Agency is further authorized to enlist the assistance of appropriate government offices and entities and local governments for the transmission and implementation of policies, programs and/or reforms which are calculated to develop a strong and dynamic moral character, integrity and civic consciousness among the masses of our people.
      
      
   5. To investigate cases of graft and corruption and violations of Republic Acts Nos. 1379 and 3109, and gather necessary evidence to establish, prima facie, acts of graft and acquisition of unlawfully amassed wealth and, for the purpose, it shall have access, inter alia, to the records of the Presidential Anti-graft Committee created by Executive Order No. 378 dated February 18, 1960, and abolished by Executive Order No. 457 dated December 20, 1961, which are now in the custody of the National Bureau of Investigation.
      
      
   6. To make and submit a regular report on the overall conduct and performance on reforms and remedies intended to improve the administration of government or its essential services and operations.
      
      
   7. To conduct seminars and educational campaigns in government offices and, wherever possible, in communities for the purpose of instilling the proper sense of spiritual and moral values as the foundation of an enduring national vitality, strength and character.
      
      
   8. To receive and evaluate, and to conduct fact-finding investigations of, sworn complaints against the acts, conduct or behaviour of any public official or employee.
      
      
   9. To perform such other duties and functions as the President of the Philippines may from time to time direct.
   
   
   
5. The Agency is hereby vested with all the powers of an investigating committee under Sections 71 and 580 of the Revised Administrative Code, including the power to summon witnesses by subpoena or subpoenae duces tecum, administer oaths, take testimony or evidence relevant to the investigation.
   
   
6. The Assistant to the President is hereby authorized to use any form of communication and transportation or means of conveyance in his official travel or those of his personnel for the speedy and efficient execution or performance of his duties.
   
   
7. All departments, bureaus, offices, agencies and instrumentalities of the national government, including government-owned or controlled corporations, provincial, city and municipal governments, are hereby directed to cooperate with and assist the Presidential Agency on Reforms and Government Operations in effecting prompt and successful accomplishment of its assigned duties.
   
   
8. The Presidential Anti-Graft Committee created by Executive Order No. 4 dated January 18, 1962, is hereby abolished and its personnel, records, properties, equipment, unexpended balance of appropriations and pending work shall be transferred and turned over to the Agency herein created. Such personnel thereof as may not be retained shall be returned to their mother offices or entities if they are on detail and those not, shall be given gratuity equivalent to one month salary for every year of continuous satisfactory service in the government but not exceeding twelve months, on the basis of the highest salary received: Provided, That if an official or employee is entitled to gratuity under any retirement law, he shall select either such gratuity or the gratuity herein provided: And provided, further, That in case such official or employee is reinstated in the government service, he shall refund to the National Government the unexpired portion of his gratuity.
   
   
9. This Order shall take effect immediately.

Done in the City of Manila, this 7th day of January, in the year of Our Lord, nineteen hundred and sixty-six.


By the President:
(SGD.) RAFAEL M. SALAS
Executive Secretary