MALACAÑAN PALACE
MANILA

BY THE PRESIDENT OF THE PHILIPPINES

[ EXECUTIVE ORDER NO. 212, February 15, 2000 ]

MANDATING THE STREAMLINING OF THE PHILIPPINE CROP INSURANCE CORPORATION

WHEREAS, there is a need for the Philippine Crop Insurance Corporation (PCIC) to strengthen its operation to enable the agency to effectively carry out its mandate to provide insurance protection to agricultural producers, particularly the small subsistence farmers, against loss of their crops and produce including their non-crop agricultural assets (machineries and equipment, transport facilities and other related infrastructures) due to natural calamities, pests and diseases and/or perils beyond their effective control;

WHEREAS, the above insurance protection is vital in stabilizing the income of agricultural producers as well as the supply of staple crops, such as rice and corn, thereby contributing to the present food security and poverty alleviation thrusts of the Government;

WHEREAS, Section 29, Chapter V, Book V of Executive Order No. 292 (The Administrative Code of 1987) authorizes an agency to reduce its staff whenever it becomes necessary because of lack of funds due to the change in the scope or nature of an agency’s program or as result of reorganization;

WHEREAS, under Sections 77, 78 and 79 of Republic Act No. 8745 (General Appropriations Act for FY 1999), the President has been authorized to direct the reorganization of any department or agency of the government and/or the scaling down or phasing out of their activities, as may be necessary;

WHEREAS, as a consequence of financial constraints as well as to enable the agency to improve its service delivery, the streamlining plan of PCIC has been deemed urgent and necessary by its Management and Board of Directors.

NOW, THEREFORE, I, JOSEPH EJERCITO ESTRADA , President of the Republic of the Philippines, by virtue of the powers vested in me by law, do hereby order the streamlining of the PCIC, as follows:

Section 1. Objectives. The streamlining shall adhere to the following principles:

1. To review and improve its operations to enable the corporation to promote the development of the agricultural insurance industry, and making PCIC more viable in terms of economy, efficiency, and effectiveness thereby making the Corporation more responsive to the needs of its clientele, particularly the small subsistence farmers; and,

2. To attain optimum efficiency in the allocation of resources especially for priority programs, projects and services by minimizing organizational levels, reducing span of control, combining common functions, avoiding duplication of functions and maximizing resource utilization, but with minimum disruption to operations.

Section 2. Refocusing of Operations. To give due consideration to the opportunities and challenges of the industry, the PCIC shall:

1. Review and streamline its operations following a set of criteria for measuring the performance of programs and projects to attain the agency’s mission, plans and goals;

2. Restructure its organization to make it more responsive, effective and cost-efficient; and,

3. Establish the most appropriate staffing pattern and qualification standards for all positions under the new streamlined structure; provided that the new staffing pattern shall not exceed two hundred forty eight (248) positions nationwide from the present 502 filled positions. The revised organization structure and staffing pattern shall be subject to the approval by the PCIC Board of Directors and the Department of Budget and Management (DBM).

The PCIC shall finalize all placement actions within ninety (90) days from the date of the commencement of the reorganization which shall reckon fifteen (15) days from the approval by the DBM of its Organization Structure and Staffing Pattern (OSSP).

Section 3. Early Retirement Incentive Package (ERIP). An ERIP shall be provided to those who may want to voluntarily retire from the service to pave the way for streamlining and those whose positions will be phased-out or declared redundant as a result of the streamlining procedure. This shall cover all regular employees of the PCIC who have rendered at least one year of continuous service to the corporation reckoning from the time of availment.

Employees, however, may opt to avail themselves of any existing GSIS retirement law which they think can give them optimum benefit (RA Nos. 1616, 1146, 660, etc.). The number of years in service for qualified retirees under GSIS existing laws shall be certified by the GSIS.

The ERIP shall be over and above the benefits that may be received from Pag-IBIG and refund from GSIS premiums.

Section 4. Transitory Provisions. The following provisions shall serve to guide implementation in the interim period:

The incumbent officials and employees of the PCIC shall continue to exercise their respective functions, duties and responsibilities with corresponding benefits and privileges unless and until otherwise ordered by the President of the corporation.

2. Employees who may opt to reject assignments or appointments and those who may not be rehired under the new staffing pattern shall receive retirement benefits which they may be entitled to receive under existing laws; Provided that they shall be given an option to avail themselves of the benefits under Republic Act No. 6656 equivalent of one (1) month for every year of service or a fraction thereof, computed on the basis of highest salary received.

Section 5. Funding. The national government shall provide funding assistance of PhP 83 Million to PCIC for the purpose of the ERIP which shall be taken from the Miscellaneous Personnel Benefit Fund (MPBF) under the CY 2000 General Appropriations Act.1aшphi1 To achieve proper programming of fund, the release of the financial assistance shall be on a reimbursement scheme and only after the DBM has approved PCIC’s restructuring.

Section 6. Report Requirements and Timetable. In fulfillment of the above provisions, the PCIC shall submit its compliance report to the President through the DBM within sixty (60) days from the date of effectivity of the Executive Order.

Section 7. Effectivity. This Order shall take effect fifteen (15) days after its publication in a newspaper of national circulation.

DONE in the City of Manila, this 15th  day of February in the year of Our Lord, Two Thousand.

(SGD.) JOSEPH EJERCITO ESTRADA

President of the Philippines

By the President:

(SGD.) RONALDO B. ZAMORA
Executive Secretary


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