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WHEREAS, there are now existing in the various Ministries/Agencies of the Government and their respective field offices throughout the country considerable quantity of unserviceable equipment and property deteriorating and exposed to the elements;

WHEREAS, a more expeditious disposal procedure of unserviceable equipment and property deteriorating and exposed to elements; 

WHEREAS, a more expeditious disposal procedure of unserviceable equipment and property is necessary in order to check further deterioration;

WHEREAS, the defunct Ministry of Public Highways has been authorized under Presidential Decree No. 147, as amended by Presidential Decree No. 494, to dispose of, all its unserviceable equipment and property;

WHEREAS, to further facilitate disposal of unserviceable equipment and property of all Ministries/Agencies of the Government, there is a need to prescribe a uniform and expeditious procedure of government property disposal;

WHEREAS, to attain this objective, there is a need to authorize all Ministers and Heads of Ministry/Agency to dispose of, all their unserviceable equipment and property in the same manner that the defunct Ministry of Public Highways has been so authorized;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and ordain:

Section 1. Authority to Dispose. — The provisions of existing laws, rules and regulations to the contrary notwithstanding the Ministers or Heads of Ministries/Agencies of the Government shall have the full and sole authority and responsibility to dispose of, all unserviceable equipment and property of their respective Ministries/Agencies;

Sec. 2. Disposal Committee. — To expedite disposal of these unserviceable equipment and property, a Disposal Committee is hereby created respectively in each Ministry and Agency, to be composed of the representatives of the following offices: 

1. Owning Ministry or Agency  — Chairman
2. Bureau of Supply Coordination — Member
3. Commission on Audit   — Member

Sec. 3. Duties of the Disposal Committee. — The Committee shall establish a standard operating procedure to govern its action and shall perform the following functions:

(1) Inspect or authorize the Ministries/Agencies field offices to inspect the unserviceable equipment and property to verify justification for disposal;

(2) Set the final appraised value of all disposable property considering obsolescence, market demand, physical condition and result of previous biddings for similar property;

(3) Recommend to the Minister or Head of Ministry/Agency for approval, the manner of disposal taking into consideration the pertinent provisions of the Revised Administrative Code and the National Auditing Code;

(4) Conduct public bidding for the sale of the disposable property on an “AS IS,” “WHERE IS” basis and to recommend corresponding award;

(5) The representatives of the Commission on Audit and the Bureau of Supply Coordination together with the COA Technical Staff specifically assigned to the Disposal Committee, shall be clothed with full authority to make final decisions in behalf of their respective offices in the various committee deliberations;

(6) In the case of agencies attached to certain Ministries, recommendations of the Disposal Committee is a subject to the final approval of the Minister concerned.

Sec. 4. Regional Disposal Committee. — To facilitate disposal of unserviceable equipment and property in the Regional field offices, the Minister concerned is hereby authorized to create Regional Disposal Committee, as he may deem necessary, in each region to conduct public biddings for the sale of these disposable property on as “AS IS,” “WHERE IS” basis. The Regional Disposal Committee shall be composed of the representatives of the following offices:

1. Regional Office of the Owning
  Ministry or Agency     — Chairman
2. COA Regional Office   — Member
3. Bureau of Supply Coordination — Member

This Regional Disposal Committee is hereby clothed with the same authority and charged with the same functions as the Disposal Committee provided that all its recommendations shall be subject to final approval of the Minister or Head of Ministry/Agency concerned.

Sec. 5. Disposal Documents. — Accountable officials in possession of unserviceable equipment shall submit to the Disposal Committee thru their respective heads of appropriate office, Inventory and Inspection Report (General Form No. 17-A), supported by individual equipment survey reports and current photographs (two view each). In the case of waste materials and worn-out obsolete spare parts, the Waste Material Report General Form No. 64-A shall be used. The heads concerned, after processing such reports, shall refer same to the Disposal Committee or the Regional Disposal Committee, as the case may be, with their recommendations.

Sec. 6. Modes of Disposal. — Any one of the following modes of disposal, whichever is most appropriate, shall be considered:

(1) Sale thru public bidding. Sale shall be widely publicized and the Committee appraised value which shall be the minimum selling price should be at realistic levels considering market demand, physical condition, obsolescence and all other relevant factors;

(2) Should the sale thru public bidding be unsuccessful, the Committee may dispose these property at any manner deemed cost advantageous to the government, including thru barter or negotiated sale at not less than the Committee appraised value;

(3) Barter with other government agencies and government owned or controlled corporation.

Sec. 7. Dropping from the book of accounts of disposed property shall be subject to existing accounting and auditing regulations.

Sec. 8. Secretariat. — A Secretariat and technical staff to be manned from existing personnel of the Ministry/Agency concerned shall be formed to handle all the Committee’s technical and administrative matters as well as the safekeeping and systematic filing of Committee documents and records.

Sec. 9. All existing Executive Orders, Letters of Instruction, Letters of Implementation, rules and regulations, which are inconsistent herewith are hereby repealed, amended or modified accordingly. 

Sec. 10. This Executive Order shall take effect upon approval.

Done in the City of Manila, this 18th day of March, in the year of Our Lord, nineteen hundred and eighty-three.
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Since 19.07.98.