MALACAÑAN PALACE

MANILA

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. ___

REPEALING EXECUTIVE ORDER NO. 65 DATED JANUARY 2, 2012, SERIES

2012 PRESCRIBING RULES TO GOVERN THE COMPENSATION OF
MEMBERS OF THE BOARD OF DIRECTORS OF LOCAL WATER DISTRICTS,
AND AMENDING SECTION 5 OF EXECUTIVE ORDER NO. 24 DATED
FEBRUARY 10, 2011, SERIES OF 2011

WHEREAS, Republic Act No. 10149 (RA 10149) otherwise known as the “GOCC
Governance Act of 2011” that expressly excludes the local water districts (LWDs) from
the application of said law. Section 4 of said law provides:

“Section 4. Coverage. – This Act shall be applicable to all

GOCCs, GICPs/GCEs, and all governmental financial
institutions, including their subsidiaries, but excluding the
Bangko Sentral ng Pilipinas, state universities and colleges,
cooperatives, local water districts, economic zone
authorities, and research institutions: Provided, that in
economic zone authorities and research institutions, the
President shall appoint one-third (1/3) of the board
members from the list submitted by the GCG.”

WHEREAS, Section 5 of Executive Order No. 24 (EO 24), Series of 2011 went beyond
the coverage of RA 10149 and placed the Board of Directors (BODs) of LWDs under the
jurisdiction of the GCG, viz:

“Section 5. Local Water Districts. – Members of the Board

of Directors/Trustees of Local Water Districts shall likewise
be subject to the policies and principles set forth herein.
Separate rules pertaining to classification and compensation
of members of the Board of Directors/Trustees of Local
Water Districts shall be issued for this purpose.”

WHEREAS, only the BODs of LWDs were placed under the jurisdiction of the GCG;
the BODs of the Bangko Sentral ng Pilipinas, state universities and colleges, economic
zone authorities and research institutions remain excluded from coverage.

WHEREAS, Section 5 of EO 24 cannot supplant Section 4 of RA 10149; what was

expressly excluded from coverage by law cannot be included by an executive order.
WHEREAS, pursuant to Section 5 of EO 24, last January 2, 2012, President Benigno
Simeon C. Aquino, III, signed Executive Order No. 65 (EO 65) entitled “Prescribing
Rules to Govern the Compensation of Members of the Board of Directors of Local Water
Districts”.

WHEREAS, under Section 13 of Presidential Decree No. 198, as amended by Republic

Act No. 9286 (PD 198, as amended), the compensation of the BODs of LWDs,
denominated as per diem, is to be determined by the BODs themselves and subject to the
approval of the Local Water Utilities Administration, viz:

"Section 13. Compensation. – Each director shall receive

per diem to be determined by the Board, for each meeting
of the Board actually attended by him, but no director shall
receive per diems in any given month in excess of the
equivalent of the total per diem of four meetings in any
given month.

"Any per diem in excess of One hundred fifty pesos

(P150.00) shall be subject to the approval of the
Administration. In addition thereto, each director shall
receive allowances and benefits as the Board may prescribe
subject to the approval of the Administration."

WHEREAS, the regulatory and supervisory jurisdiction over the BODs of LWDs are
lodged with the LWUA, and it cannot by executive fiat be transferred to the GCG.

WHEREAS, executive orders and other administrative regulations of the executive

branch cannot repeal, amend or modify valid laws passed by the legislative branch of the
government.

WHEREAS, Section 5 of EO 24 and EO 65 both encroached the authority of the

legislative branch of the government, and which has to be corrected immediately.

NOW, THEREFORE, I, RODRIGO ROA DUTERTE, President of the Philippines, by

virtue of the powers vested in me by the Constitution and by law, do hereby order:

Section 1. Amendment of Section 5 of EO 24. – For being an ultra vires act, Section 5 of
EO 24 is hereby amended to read as follows:

“Section 5. Exclusion from Coverage. – Members of the

Board of Directors/Trustees of state universities and
colleges, cooperatives, local water districts, economic zone
authorities, and research institutions are not covered by this
issuance.”
Section 2. Repeal of EO 65. – For being an ultra vires act, EO 65 is hereby repealed.

Section 3. Directive. – The LWUA and all LWDs are directed follow the provisions to
Section 13 of PD 198, as amended, to govern the fixing of per diems of the BODs of all
LWDs. To implement the amendments brought about by RA 9286, LWUA is directed to
come up with a Policy Guidelines on Compensation and Other Benefits for the BODs
within thirty (30) days following the effectivity of this Order. The LWUA and Philippine
Association of Water Districts are likewise directed to review every five (5) years the
compensation and allowances of the BODs, subject to adjustment based on the
purchasing power of the peso and inflation rate.”

Section 4. Effectivity Clause. – This Order shall take effect immediately upon publication
in a newspaper of general circulation.

DONE, in the City of Manila, this ___ day of September, in the year of our Lord, Two
Thousand Seventeen.

(Sgd.) RODRIGO ROA DUTERTE

President of the Philippines

By the President:
(Sgd.) SALVADOR C. MEDIALDEA
Executive Secretary