Before the day ended on Wednesday, Dec. 14, Trade and Industry Secretary Alfredo E. Pascual issued his third department order (DO) for the day, as he sought to clarify the leadership position at the Philippine Economic Zone Authority, but only muddled the issue some more.

DO 22-116, Series of 2022, which was forwarded to reporters past 6 pm, has designated DTI Undersecretary Rafaelita M. Aldaba as supervising undersecretary of PEZA. “In the interest of the service and pursuant to the powers vested in the DTI Secretary by law, Undersecretary Rafaelita M. Aldaba, PhD, for purposes of policy and program coordination, is hereby designated as the Supervising Undersecretary of the PEZA,” the DO stated.

The DO, which took effect immediately, has modified or amended previous DOs issued earlier in the day.

The third DO was issued after Pascual reinstated PEZA OIC Deputy Director General Tereso O. Panga in the second DO 22-115 issued past 2 pm. Panga was replaced by Aldaba as PEZA OIC in the first DO 22-114 issued earlier in the day.

The DO, however, did not clarify the role of the supervising DTI undersecretary, but sought to justify the action of the DTI Secretary in the designation of Aldaba.

”The DTI Secretary exercises jurisdiction over all bureaus, offices, agencies, and corporations under the Department as provided by law, and in accordance with the applicable relationships as specified in Chapters 7,8, and 9 of Book IV of Executive Order No. 292, Series of 1987 or the Administrative Code of 1987,” the DO stated.

An official privy to the developments at PEZA said that a supervising undersecretary for PEZA cannot legally perform the functions of any position in PEZA whether Director-General, Deputy DG, Zone Administrator, Zone Manager, General Manager or the like.

The official further said that a supervising undersecretary is just an alter ego of the DTI Secretary, as chairman of the PEZA board, performing a role on behalf of the chairman and whose chairman’s role is limited to policy supervision.

PEZA as an attached agency of DTI is not under the control of the DTI Secretary. PEZA, which administers the registration and tax and fiscal incentives of locators inside economic zones, enjoys independence and autonomy from the DTI, except for policy and program coordination , and is governed by its own board.

It could be recalled that Pascual was grilled during his confirmation hearing at the Commission on Appointments over the controversial power struggle at PEZA. Pascual’s appointment hangs in balance as a result.

Pascual was criticized by Surigao del Sur Rep. Johnny Pimentel for designating Panga over former PEZA Director General Charito B. Plaza. Also mentioned at the hearing were the complaints filed by a few PEZA employees, whose services were allegedly unfairly terminated, demoted or put on floating status.

Pascual, however, said the designation of Panga was based on the ruling issued by the Executive Secretary declaring all positions occupied by political appointees vacant. Pascual said he will also investigate the complaints of PEZA employees.