Executive Order Number 18 repeals an Arroyo EO that 'resulted in bureaucratic impediments and unnecessary delays' in the procurement process at the defense department, says Malacañang
CLIPPED POWERS. President Rodrigo Duterte and Defense Secretary Delfin Lorenzana attend the 75th Commemoration of Araw ng Kagitingan and Veterans Week in Bataan on April 9, 2017. Malacañang file photo
President Rodrigo Duterte issued an executive order removing the authority of the defense chief to sign defense contracts.
Executive Order (EO) Number 18, released on Monday, April 17, intends to "streamline" rules and procedures governing defense contracts entered into by the Philippine government by repealing EO 235, signed by then president Gloria Macapagal-Arroyo in 2003.
In issuing EO 18, Duterte blamed EO 235 for "bureaucratic impediments and unnecessary delays" in the procurement process at the defense department.
Arroyo issued EO 235 in 2003 to streamline procedures on defense contracts by authorizing the defense secretary to sign contracts except for those that, by law, only the president can approve.
EO 235 also allowed the secretary to "delegate in writing" officials he has empowered to sign contracts below P50 million. For Philippine military contracts below P50 million, the chief of the Armed Forces of the Philippines (AFP) was given the authority to sign.
EO 235 also established a single Bids and Awards Committee (BAC) for the AFP.
Presidential Spokesman Ernesto Abella could not give examples of the supposed delays and impediments caused by EO 235 that convinced Duterte to repeal it.
He only said, "The President wants effective and efficient delivery of service which runs contrary with the setup of EO 235."
EO 18 noted that EO 235 "limited" the defense chief's authority "to delegate approvals of procurement contracts."
Under EO 18, the defense secretary was tasked to "effectively monitor the operations of the separate Bids and Awards Committees" which may be created under Republic Act (RA) No. 9184 or the Government Procurement Reform Act for transparency and accountability purposes.
In a text message to Rappler, Executive Secretary Salvador Medialdea said EO 18 "merely gives SND (Secretary of National Defense) the flexibility to create and/or delegate other Bids and Awards Committees (BAC) in the DND or its agencies in accordance with RA 9184."
Malacañang earlier issued Memorandum Circular No. 16, reminding agencies under the executive department to secure approval from the President before signing or negotiating international agreements, and foreign grants or borrowings.
http://www.rappler.com/nation/167341-duterte-executive-order-18-defense-chief-contracts
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