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WHEREAS, in the face of the enormous problems besetting the Government and to prevent conflicts in thrusts and directions, it is imperative that the Office of the President be strengthened particularly in the development management, coordinative, interventive and monitoring processes/functions of the President;

WHEREAS, the creation of a specialized office within the Office of the President duly vested with appropriate powers and functions has become necessary to effectively implement such processes/functions of the President;

NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, by virtue of the powers vested in me by the sovereign will of the Filipino people and the Freedom Constitution, do hereby order:

SECTION 1. Creation of the Office for Development Management. – There is hereby created within the Office of the President, under the direct supervision of the President, the Office for Development Management (ODM) to be headed by a Deputy Executive Secretary (DES) which shall serve as the operating arm and resource base in the performance of the development management function of the President.

SEC. 2. Declaration of Policy. – It is henceforth the policy of the Government to strengthen the Office of the President structurally and functionally, in the performance of its development management functions, particularly its coordinative, interventive and monitoring processes and functions relative thereto; establish direct access with, and a feedback mechanism from, the people; and through the Office of the President, to initiate, catalyze or demonstrate programs and projects, which will be carried out and sustained as regular national programs and projects by line ministries and agencies.

SEC. 3. Mandate and Functions of ODM. – The ODM shall carry out and implement the policies set forth in the preceding Section. To attain such mandate, the ODM shall have the following functions:

(a)	Translate Presidential perspectives/insights, policies and plans on development issues into strategic action programs/projects;
(b)	Assist in the coordinative functions of the President with respect to the implementation of the development program of the Government;
(c)	Implement initial action in critical areas such as, but not limited to, the National Reconciliation and Development Program, where the President would want to lead in piloting development initiatives that can subsequently be turned over and expanded by the line ministries;
(d)	Provide a feedback mechanism to and from the people and the Office of the President;
(e)	Transact such business and enter into such contracts, domestic or foreign, as may be necessary for the accomplishment of its purposes and objectives under such terms and conditions as it may deem necessary and reasonable;
(f)	Exercise direct control and supervision over such organizations, offices, agencies, programs and projects as may be aligned/assigned/transferred to the ODM pursuant to Section 7 hereof, or as may hereinafter be provided in subsequent promulgations of the President, provided, however, that the ODM is hereby authorized to repeal or amend the charters, articles of incorporation, or by-laws, if any, of said organizations, offices and agencies; merge or consolidate any of said organizations, offices and agencies; and is hereby also authorized to dispose of their assets as it may deem fit and expedient under the circumstances;
(g)	Seek the assistance and cooperation of any ministry, agency, bureau, office, or any other instrumentality of the Government or any private entity or organization for the accomplishment of its purposes and objectives;
(h)	Organize and supervise such task forces as may be necessary to respond to instructions from the President;
(i)	Undertake such activities and exercise such powers as are necessary for the effective and due performance of its functions.

SEC. 4. Functions of DES. – The authority and responsibility for the exercise of the mandate of the ODM, the accomplishment of its objectives and the discharge of its functions shall be vested in the DES, who shall be appointed by the President and shall supervise and control the ODM. For such purposes, the DES shall have the following functions:

(a)	Prepare the position structure and staffing pattern and budget of the ODM, including the corresponding salaries, duties and responsibilities of the personnel, and submit the same for approval of the President;
(b)	Direct and supervise the operations and activities of the ODM;
(c)	Appoint the officers and personnel of the ODM and remove or discipline them for cause as well as those of such organizations, agencies, corporations, centers, councils, committees, including their respective programs/projects, placed under the supervision and control of the ODM by virtue of this Administrative Order and/or such subsequent promulgations of the President;
(d)	Represent the ODM in all contracts and transactions which it may enter into;
(e)	Render annual reports on the activities of the ODM to the Office of the President;
(f)	Supervise the formulation and promulgation of the rules and regulations implementing this Administrative Order;
(g)	Issue such rules and regulations as may be necessary to implement the provisions of this Administrative Order;
(h)	Exercise such powers necessary or incidental to the attainment of the purposes of this Administrative Order or delegate them as he may deem proper under the circumstances.

SEC. 5. Non-Diminution of Authority of President. – Nothing in this Administrative Order shall be understood as inhibiting or delimiting any of the President’s powers, including the authority to direct and institute measures for directly and personally handling matters which are deemed vital enough to warrant the personal attention of the President.

SEC. 6. Critical Agency. – In view of its highly confidential and technical nature, the ODM is hereby declared a critical agency and its personnel shall be exempt from such wage standards and classifications established for Government employees. Each officer and employee shall have such terms and conditions of employment as may be adopted by the ODM and approved by the DES.

SEC. 7. Transfer of Agencies/Program. – The President, thru appropriate administrative order(s), shall specify the organizations, agencies, offices, programs, and projects and the functions being respectively performed by them, as well as their respective personnel, assets and budgets to be absorbed by, or attached to the ODM, and reorganized by it.

SEC. 8. Funding. – Funds needed to carry out the provisions of this Administrative Order shall be taken from funds available in the Office of the President, or, in the absence or insufficiency thereof, from any available lump sum appropriations and/or special funds.

SEC. 9. Separability Clause. – The provisions of this Administrative Order are hereby declared to be separable, and if any provision or section of this Administrative Order or application hereof to any person or circumstances should, for any reason, be held invalid or unconstitutional, such invalidity or unconstitutionality shall not affect the other provisions or sections of this Administrative Order.

SEC. 10. Effectivity. – This Administrative Order shall take effect immediately.

DONE in the City of Manila, this 5th day of January in the year of Our Lord, nineteen hundred and eighty-seven.


By the President:
(Sgd.) JOKER P. ARROYO
Executive Secretary