Malacañang issued Thursday revised Memorandum Circular No. 1 declaring all co-terminus third level positions (posts occupied by presidential appointees) vacant as of June 30.

The revised order, signed by Executive Secretary Paquito Ochoa Jr., also directed all non-career officials occupying career executive service positions to continue to perform their duties. It also extended the services of certain contractual and casual employees until July 31.

The original memorandum circular concerning the status of some government officials released last Wednesday was merely a draft and therefore was not yet final, according to Presidential Spokesman Edwin Lacierda.

Amended was the “language” of the original MC 1, which declared all non-career executive service positions vacant and extending the services of contractual employees for another month, he said.

The latest circular, also dated June 30, was issued “in the exigency of the service and to ensure continuity of government operations, official processes, and transactions as well as the delivery of services to the people.”

“All presidential appointees under co-terminus status and/or those occupying positions created in excess of the authorized staffing pattern in all departments, offices, agencies and bureaus in the executive branch are deemed separated from the service as of noon of June 30, 2010,” the circular said.

The non-career officials holding CESO positions will remain in their post until July 31 or until their resignations have been accepted and/or until their respective replacements have been appointed.

“In cases where the head of agency of office has resigned and whose resignation has been accepted or is deemed separated on June 30, 2010 and no replacement has been appointed or designated, the next-in-rank and most senior official shall take over as officer-in-charge to perform the duties and discharge the responsibilities of the position until July 31, 2010 or until a replacement has been appointed or designated, whichever comes first,” the order read.

The MC also stated that services rendered by the affected government employees would be compensated based on existing civil service rules.

Those who will temporarily stay in government were also directed to facilitate an orderly and complete turnover of records, documents, books, equipment, and other properties of their respective offices to their successors, after the latter shall have been appointed or designated.

Early in the day, Lacierda came clean that the circular, which was supposed to be the first order issued by President Aquino shortly after a Cabinet meeting in the Palace was a “draft” and the government was "fine-tuning its language.”

The memorandum circular was reviewed by President Aquino, Ochoa, and Chief Presidential Legal Counsel Eduardo de Mesa. “We want to make sure the intent is there and we properly reviewed the bureaucracy,” Lacierda said amid concerns raised by some groups it may trigger a collapse of the bureaucracy.

With the amendments limited on non-career positions, Lacierda said that contractual employees would remain on holdover capacity until July 31 as originally written in the MC.

Lacierda said he was unsure if Ochoa presented the MC to President Aquino before it was released to the media Wednesday. He admitted though there was lack of time to discuss the status of the affected government personnel during the transition period.

In the original MC 1 issued last Wednesday, Malacañang declared all positions occupied by non-CESO presidential appointees as vacant as of June 30. Most senior career executive service officers were directed to take over as officer-in-charge until July 31 or until a replacement has been appointed.

This prompted the Manila International Airport Authority (MIAA) to act Thursday, with Herminia D. Castillo taking over the helm at the airport organization being the highest ranking CESO official in the organization.

Castillo, who has been at the airport since 1985, replaced lawyer Melvin Matibag who was assigned to the post last February, 2010. (With a report by Anjo Perez)