EXECUTIVE ORDER NO. 869
EXECUTIVE ORDER NO. 869 - AMENDING
EXECUTIVE ORDER NO. 577 RENAMING THE RURAL WATERWORKS ASSOCIATIONS AS
RURAL WATERWORKS AND SANITATION ASSOCIATIONS AND FOR OTHER PURPOSES
WHEREAS,
the Rural Water Supply and Sanitation Program will utilize the Rural
Waterworks Associations (RWAs) in bringing sanitation service to the
rural areas;
WHEREAS, there is a need to empower the RWAs to undertake sanitation
functions and to rename them as Rural Waterworks and Sanitation
Associations (RWSA);
WHEREAS, the Rural Waterworks Development Corporation, in undertaking
development projects prescribed in Executive Order No. 577, now
requires to be exempt from Sec. 23 of Presidential Decree No. 1177
to enable itself and the RWSAs to pay their indebtedness and other
obligations in furtherance of the declared national policy;
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 decree:
Section 1. Sec. 5 of Executive Order No. 577 is
hereby amended to read as follows:
“Sec.
5. Specific Powers. — The Corporation is hereby
authorized and empowered . . .
(h)
To promote and enhance the capability of local governments in
implementing their rural water supply programs by providing loans for
the purpose of financing their procurement of equipment and materials
in pursuing total water supply coverage of their areas; and
(i) To report
annually to the President of the Philippines . . .
Sec. 2. Section 12 of Executive Order No. 577 is
hereby amended to read as follows:
“Sec.
12. Earnings of the Corporation. — Earnings which may
be realized from the operations of the Corporation shall accrue to and
be automatically appropriated as part of the corporate earnings of the
Corporation, any provision of law to the contrary notwithstanding.
To enable RWDC to pay its
indebtedness and obligations in furtherance and effective
implementation of the policy enunciated in this Executive Order, the
RWDC, notwithstanding Sec. 23 of Presidential Decree No. 1177, is
hereby declared exempt:
(a)
From payment of all taxes, duties, fees, imposts, charges, costs and
restrictions to the Republic of the Philippines, its provinces, cities,
municipalities, and filing and service fees and charges or costs in any
court or administrative proceedings in which it may be a party;
(b) From all
income taxes, franchise taxes and realty taxes to be paid to the
National Government, its provinces, cities, municipalities and other
government agencies and instrumentalities; and
(c) From all
import duties, compensating taxes and advance sales tax, wharfage fees
on import of foreign goods required for its operations and projects.”
Sec. 3. Section 15 of Executive Order No. 577 is
hereby amended to read as follows:
“Sec.
15. Board of Directors. — All powers of the
Corporation shall be vested in and exercised by the Board of Directors,
hereinafter referred to as the Board, which shall be composed of the
Minister of Human Settlements as Chairman and as members, the Minister
of Public Works and Highways, the Minister of Local Government, the
Minister of Health, the Executive Director of the National Water
Resources Council, the General Manager of Local Water Utilities
Administration, the Administrator of the National Electrification
Administration and the General Manager of the Corporation or their duly
authorized representatives.”
Sec. 4. Sec. 21 of Executive Order No. 577 is
hereby amended read as follows:
“Sec.
21. Secretary of the Board. — There shall be a
Corporate Secretary who shall be appointed by the Board of Directors.”
Sec. 5. Sec. 28 of Executive Order No. 577 is
hereby amended to read as follows:
“Sec.
28. Organization. — Cooperative, non-profit,
non-stock associations to be known as Rural Waterworks and Sanitation
Associations (RWSA’s) may be organized for the purpose of supplying
water and sanitation services in the rural areas.
All preceding references to RWA’s shall heretofore be amended to read
as RWSA’s.”
Sec. 6. There will be added a new section to
Executive Order No. 577, which shall be known as section 33 and shall
read as follows:
“Sec.
33. Exemption from Securities and Exchange
Commission; Exemption from taxes, imposts, duties, fees. —
(a)
RWSA’s shall be exempt from regulation by the Securities and Exchange
Commission.
The provisions of the Securities
Act shall not apply to any note, bond or other evidence of indebtedness
issued by any RWSA or to any mortgage, deed of trust, indenture or
other instrument executed to secure the same. The provisions of said
Act shall not apply to the issuance of membership certificates or any
evidence of member or patron interest by the RWSA’s.
(b) The RWSA’s
shall be exempt from all National Government, local government and
municipal taxes and fees, including any franchise filing, recordation,
license or permit fees or taxes, charges or costs involved in any court
or administrative proceeding in which it may be a party, and of all
duties or imposts on foreign goods acquired for its operations.
Sec. 7. Sec. 36 of Executive Order No. 577 is
hereby amended to read as follows:
“Sec.
36. Franchising Power Delegated to the RWDC. — The
power to grant and repeal, alter or amend all franchises to supply
waterworks service is hereby delegated to the RWDC, whose Board of
Directors shall, acting as a Commission, administer the provisions of
this Chapter; Provided, That no franchise shall be altered,
conditioned, repealed or cancelled, and no franchise shall be granted,
without first affording the holder thereof, or the contending
applicants therefor, if such be the case, and any other interested
parties opportunity for hearing.”
Sec. 8. Sec. 37 of Executive Order No. 577 is
hereby repealed and in lieu thereof a new section shall read as
follows:
“Sec.
37. Rate Review. — ALL RWSA’s, including other
waterworks utilities operating within the area of responsibility of
RWDC, shall fix, maintain, implement and collect rates, fees, tools and
other charges and terms and conditions for service, subject to the
review and approval of the RWDC.
Sec. 9. Legal Counsel. — It shall be the duty of
the Solicitor General to represent RWDC in any judicial proceeding if,
for special reasons, the General Manager shall request his
intervention.
Sec. 10. Separability of Provisions. — If any
provision of this Executive Order or the application of such provision
to any person or circumstance is declared invalid, the remainder of the
Executive Order or the application of such provision to other persons
or circumstances shall not be affected by such declaration.
Sec. 11. Repealing Clause. — All laws, decrees,
executive orders, rules and regulations inconsistent herewith are
hereby repealed or modified accordingly.
Sec. 12. Effectivity. — This Executive Order shall
take effect immediately.
Done in the City of Manila,
this 2nd day of February, in the year of Our Lord, Nineteen Hundred and
Eight-Three.
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