EXECUTIVE ORDER NO. 65, January 02, 2012
PRESCRIBING RULES TO GOVERN THE COMPENSATION OF MEMBERS OF THE BOARD OF DIRECTORS OF LOCAL WATER DISTRICTS PURSUANT TO SECTION 5 OF EXECUTIVE ORDER NO. 24 (s. 2011)
President issued Executive Order (EO) No. 24 entitled “Prescribing Rules
to Govern the Compensation of Members of the Board of
Directors/Trustees in Government-Owned or Controlled Corporations
Including Government Financial Institutions”;
WHEREAS,
in the exercise of the power of control of the President over
Government-Owned or Controlled Corporations (GOCCs), EO No. 24 was
issued to rationalize the compensation of the members of their Board of
Directors;
WHEREAS, the Supreme Court, in the
case of Davao City Water District et. al. vs. Civil Service Commission
and Commission on Audit, G.R. No. 95237-38, dated September 30, 1991,
declared Local Water Districts (LWDs) as “GOCCs with original charter”,
they being quasi-public corporations created pursuant to Presidential
Decree No. 198 (The Provincial Water Utilities Act of 1973), as amended,
and whose employees belong to the Civil Service; and,
WHEREAS,
Section 5 of EO No. 24 states that the members of the Board of
Directors of LWDs shall likewise be subject to the policies and
principles set forth therein, and that separate rules on the
classification and compensation of the said members of the Board of
Directors shall be issued for the purpose.
NOW, THEREFORE, I, BENIGNO S. AQUINO III, President of thePhilippines, by virtue of the powers vested in me by the Constitution and by law, do hereby order:
Section 1. Coverage. The rules set forth herein shall apply to all duly formed and existing LWDs.
Terms used in this Order shall have the same meaning as in EO No. 24 except when otherwise defined or provided.
Section 2. LWD Classification.
LWDs shall be classified into four (4) major categories (Category A, B,
C, or D) based on the number of active service connections and
equivalent point rating, whichever is lower, as provided for in the
Revised LWD Manual on Categorization, Recategorization and Other Related
Matters (LWD-MaCRO) prepared by the Oversight Committee on LWDs
composed of the Department of Budget and Management (DBM), Civil Service
Commission (CSC), Local Water Utilities Administration (LWUA), and
Philippine Association of Water Districts (PAWD).
Section 3. Compensation Structure. The compensation of members of the Board of Directors shall have the following components:
a) Compensation shall be in the form of per diems and subject to limits as provided for under Sections 4 and 5 hereof;
b)
Compensation in the form of Performance-Based incentives may be allowed
and shall be based on a set of performance criteria as provided under
Section 9 hereof;c) Annual Retainer Fees and Stock Plans shall not be allowed; and
d)
Salaries, Allowances, Benefits, and other Bonuses shall not be allowed
unless specifically authorized by law or Charter and approved by the
President, provided that the total of the foregoing compensation and per
diems shall not exceed the limits stipulated under Sections 4 and 5
hereof.
Section 4. Per Diem
for Board Meetings. The maximum per diem per Regular or Special Board
meeting actually attended by members of the Board of Directors of LWDs
shall be based on the classification of the LWD under Section 2 hereof
but shall not exceed the maximum annual amount as specified herein.
Entitlement thereof shall be in accordance with the guidelines issued by
the LWUA.
The Board Chairperson may receive not more than 20% over the amount set for the members of the Board of Directors of LWDs.
Section 5. Computation of Per Diem
. The classification of LWDs under Section 2 hereof and the equivalent
point rating system shall be the basis in determining the amount of per
diem of the members of the Board of Directors of LWDs as specified in
the per diem schedule below. Any points earned beyond the maximum points
allocated per category shall no longer be considered in the final
computation of per diem and may not be carried over to succeeding years.
COMPUTATION OF PER DIEM
The
members of the Board of Directors of LWDs may receive per diem
corresponding to the GOCC classification C or higher as specified in
Section 6 of EO No. 24 provided that the LWD meets the Assets and
Revenue criteria provided therein.
Section 6. Succeeding Adjustments of Per Diem .
The per diem of the members of the Board of Directors of LWDs may be
adjusted through a Board Resolution effective on the date indicated in
the Resolution, subject to the guidelines issued by the LWUA provided
that said per diem rate falls within the limits specified in Sections 4
and 5 hereof. Any increase in the limit of the rate of per diem shall be
endorsed by the LWUA and the Governance Commission for GOCCs (GCG) and
subject to the approval of the President.
Section 7. Committees. The
creation of working committees in the LWD Board of Directors shall be
allowed only for LWDs under Category A. Per diem for such committee
meetings shall be at most 60% of the amount set for Board meetings, but
not to exceed the maximum amounts specified below. Entitlement thereof
shall be in accordance with the guidelines issued by the LWUA.
|
Category |
Maximum Per Diem per Meeting (Php) |
Maximum Per Diem per Year (Php) |
|
A |
6,000 |
144,000 |
Section 8.
LWUA Review. For purposes of determining compliance of LWDs with
established guidelines, LWUA shall conduct a review of the actual per
diems granted to the members of the Board of Directors of LWDs within
three months from the date of implementation of the adjusted per diems.
Section 9. Performance-Based incentives.
The members of the Board of Directors of LWDs may be entitled to
Performance-Based Incentives not to exceed 50% of the actual annual per
diem received for Regular and Special Board meetings, subject to a set
of performance criteria developed by LWUA, endorsed by the GCG and
subject to the approval of the President.
Section 10. Reimbursable Expenses.
All necessary expenses of the members of the Board of Directors of LWDs
to attend Board and other meetings and discharge their official duties
shall be paid directly by the LWD. Any claim for reimbursement of
necessary expenses by members of the Board of Directors of LWDs shall be
subject to compliance with Section 12 of EO No. 24, provided that such
expenses shall not exceed twenty-five percent (25%) of the actual per
diems received for Regular and Special Board meetings. Further,
reimbursement for travel expenses for official travel of members of the
Board of Directors of LWDs shall be in accordance with the guidelines in
EO No. 248 (s. 1995), as amended by EO No. 248-A (s.1995) and EO No.
298 (s. 2004).
Section 11. Categorization of LWDs by LWUA.
The LWUA shall categorize the LWDs based on the LWD-MaCRO within three
(3) months from the effectivity of this Order and submit the complete
list of categorized LWDs to the DBM immediately thereafter.
Section 12. Clarification. Any request for clarification on the provisions of this Order shall be in writing and directed to the LWUA.
Section 13. Separation Clause.
If any provision of this Order is declared invalid or unconstitutional,
the other provisions unaffected shall remain valid and subsisting.
Section 14. Repealing Clause.
All other rules, regulations and issuances or parts thereof which are
inconsistent with this Order are hereby repealed or modified
accordingly.
Section 15. Effectivity Clause. This Order shall take effect immediately upon publication in a newspaper of general circulation.
DONE, in the City of Manila, this 2nd day of January, in the year of our Lord, Two Thousand Twelve.
President of the Philippines
By the President:
(Sgd.) PAQUITO N. OCHOA, JR.
Executive Secretary