A
collection of Philippine laws, statutes and codes
not
included or cited in the main
indices
of
the
Chan Robles Virtual Law Library
PRESIDENTIAL DECREE NO. 425
PRESIDENTIAL DECREE NO. 425 -
AMENDING CERTAIN SectionS OF REPUBLIC ACT NUMBERED SIXTY-TWO HUNDRED
THIRTY-FOUR, ENTITLED "AN ACT CREATING THE METROPOLITAN WATERWORKS AND
SEWERAGE SYSTEM AND DISSOLVING THE NATIONAL WATERWORKS AND SEWERAGE
AUTHORITY, AND FOR OTHER PURPOSES"
|
chanroblesvirtualawlibrary
WHEREAS,
under Republic Act No. 6234, it is a declared national policy of the
state that the establishment, operation and maintenance of waterworks
systems must be supervised and controlled by the State, because the
proper operation and maintenance of waterworks systems to insure an
uninterrupted and adequate supply and distribution of potable water for
domestic and other purposes and the proper operation and maintenance of
sewerage systems are essential public services which are vital to
public health and safety;chanroblesvirtualawlibrary
WHEREAS, in the attainment of the aforementioned objectives, the
Metropolitan Waterworks and Sewerage System has implemented an interim
program of construction and improvement in order to provide stop-gap
measures in the interim to insure continuous and adequate supply of
potable water to the inhabitants of the Manila metropolitan area up to
1973;chanroblesvirtualawlibrary
WHEREAS, in view of the increasing water demand of a growing and
expanding population in the service area, including the industries,
factories, commercial establishments, etc., all of which will require
uninterrupted and adequate supply of potable water, the Metropolitan
Waterworks and Sewerage System is now ready to undertake the first
phase of a long-range program of construction, development and
improvement of the water system to be able to meet the increased water
demand beginning the year 1974;chanroblesvirtualawlibrary
WHEREAS, equally vital, if not more critical, is the maintenance of an
adequate sewerage disposal system in the serviced areas which should
allow the management of the System a wider latitude of fiscal
projections than it is allowed in its present Charter; and
WHEREAS, to achieve the foregoing objectives the System needs reliable
and definite capitalization of its programs and projects through the
conversion of the System into a stock corporation with a definite
equity base.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, as
Commander-in-Chief of the Armed Forces of the Philippines, and pursuant
to Proclamation No. 1081, dated September 21, 1972, and General Order
No. 1, dated September 22, 1972, as amended, do hereby amend Republic
Act Numbered Sixty-Two Hundred Thirty-four, otherwise known as the
Charter of the Metropolitan Waterworks and Sewerage System, to wit:cralaw:red
Section 1. A new section, to be known as Section 2-A
thereof, is hereby provided to read as follows: chanroblesvirtualawlibrary
"Sec. 2-A. Capital Stock of the System. — The System
is hereby authorized a capital stock of one billion pesos divided into
ten million shares at a par value of one hundred pesos each, which
shares shall not be transferred, negotiated, pledged, mortgaged, or
otherwise given as security for the payment of any obligation. The
shares shall be subscribed and paid for by the Government of the
Philippines as follows:cralaw:red
"(a) The sum of four hundred thirty-eight million
nine hundred eighty-six thousand seven hundred pesos, more or less,
representing bonded indebtedness on local bonds, including arrearages
on amortization, net of sinking fund investment and interest payables,
and eleven million six hundred seventy thousand pesos as organizational
loan under Republic Act Numbered Sixty-two hundred thirty-four shall be
converted into subscribed and paid-in capital stocks by the Government
of the Philippines equivalent to approximately four million five
hundred six thousand five hundred sixty-seven shares of stock at a par
value of one hundred pesos each;chanroblesvirtualawlibrary
"(b) The sum of six million two hundred thirty-five
thousand four hundred pesos, more or less, representing outstanding
cost and interest of reparations goods procured by the system and its
predecessor in interest pursuant to the provisions of Republic Act
Numbered Seventeen hundred eighty-nine shall be additional paid-in
subscription of the Government of the Philippines equivalent to
approximately sixty-two thousand three hundred fifty-four shares of
stock with the same par value of one hundred pesos each; and
"(c) The balance of said subscription shall be paid
by the conversion into equity capital of outstanding interest payments
on bonded indebtedness, cost of reparations funds that may be allocated
to the System in the future and surpluses of the System, bond issues
upon request of the System or through any capital contribution from any
source as may be duly approved from time to time by the President of
the Philippines."
Section 2. Section 3(k) thereof is hereby amended to
read as follows:cralaw:red
"(k) To construct work across, over, through and/or
alongside any stream, watercourse, canal, ditch, flume, street, avenue,
highway or railway, whether public or private as the location of said
works may require; Provided that such works be constructed in such
manner as to afford security to life and property; and Provided,
further, that the stream, watercourse, canal, ditch, flume, street,
avenue, highway, railway so crossed or intersected be restored as near
as possible to their former state, or in a manner not to impair
unnecessary their usefulness. Every person or entity whose right-of-way
or property is lawfully crossed or intersected by said works shall not
obstruct any such crossing or intersection and shall grant the System
or its representatives the proper authority to execute such work. The
System is hereby given the right-of-way to locate, construct and
maintain such works over and throughout the lands, including any
street, avenue, or highway owned by the Republic of the Philippines or
any of its branches and political subdivisions, and is given right of
immediate entry and to prosecute any undertaking thereon without any
further requirement or restriction other than due notice to the office
or entity concerned. The System, or its representatives, may also enter
upon private property in the lawful performance or prosecution of its
business or purposes, including the construction of water mains and
distribution pipes thereon, provided that the owner of such private
property shall be compensated as follows:cralaw:red
"(1) In case the land shall be acquired by purchase,
the fair market value thereof, which shall be the value of the land
based on the tax declaration that is valid and effective at the time of
the filing of the complaint for eminent domain or of the taking of said
land by the System, whichever is earlier; and
"(2) In addition, the owner shall be compensated for
the improvements such as houses, buildings, structures, or agricultural
crops and the like, if any, actually damaged during the construction,
operation, and maintenance of such works on the land, in amounts based
on the value of such improvements appearing on the tax declaration that
is valid and effective and/or the prevailing valuation of such
agricultural crops and the like made by the appropriate appraisal body
authorized by the law at the time of the filling of said complaint for
eminent domain or of the taking of said improvements by the System,
whichever is earlier; provided, further, that any action for
compensation and/or damages under (1) and (2) above, shall be filed
within five years from the date the right-of-way, pipelines structures
or other facilities shall have been established; provided, finally,
that after the said period of five years, no suit shall be brought to
question said right-of-way, pipelines, structures or other facilities
nor the amount of compensation and/or damages involve."
Section 3. A new paragraph, to be known as
paragraph(s) in Section 3 thereof, is hereby provided to read as
follows:cralaw:red
"(s) In the prosecution and maintenance of its
projects and plants the System shall adopt measures to prevent
environmental pollution and shall enhance the conservation, development
and maximum utilization of national resources, including the
improvement and beautification of its reservoirs, filter plants, and
other areas to promote tourism and related purposes, and shall provide
for the necessary corporate funds therefor."
Section 4. Section 4 thereof is hereby amended to
read as follows:cralaw:red
"Sec. 4. The Board of Trustees; Composition,
Qualification; Tenure; Power and Duties. — The Corporate powers and
functions of the System shall be vested in and exercised by a Board of
Trustees composed of five members consisting of a Chairman and three
Trustees all of whom shall be appointed by the President of the
Philippines and the General Manager of the System who shall be the
ex-officio Vice-Chairman of the Board.
"The Chairman and the three members of the Board shall serve for terms
of three years, except that any person appointed to fill a vacancy
shall serve only for the unexpired term of the member whom he succeeds.
"Every member of the Board shall possess any one or a combination of
the following qualifications: A duly licensed professional of
recognized competence in engineering, in business management and
finance, or in law with at least ten years of actual and distinguished
experience in their respective fields of expertise, and of good moral
character.
"The Board moreover, shall have the following specific powers and
duties:cralaw:red
"(a) To formulate and adopt policies and measures for
the management and operation of the System;chanroblesvirtualawlibrary
"(b) To adopt an annual and supplemental budget of
receipts and expenditures of the System according to its
requirements; chanroblesvirtualawlibrary
"(c) Subject to the provisions of existing laws and
regulations, and upon the recommendations of the General Manager, or
motu propio, to organize, reorganize in a manner other than what is
provided for under this Act and Section 3 of Republic Act No. 4177, and
determine the System's staffing pattern and the number of personnel, to
fix their salaries including other emoluments, and to define their
power and duties. WAPCO rules and regulation shall not apply to the
System; however, for the above purpose, the Board shall take into
consideration similar staffing patterns and salary ranges obtaining in
other government corporation of the same category as the System;chanroblesvirtualawlibrary
"(d) To recommend to the President of the Philippines
the appointment of the General Manager of the System and to fix his
compensation which shall be not less that sixty thousand pesos per
annum;chanroblesvirtualawlibrary
"(e) Subject to the approval of the President of the
Philippines to appoint and fix the compensation of each Assistant
General Manager which shall be not less than forty eight thousand pesos
per annum;chanroblesvirtualawlibrary
"(f) By a majority vote of all its members to suspend
or remove for cause, with approval of the President of the Philippines,
any Assistant General Manager subject to the provisions of Article VII
of the Civil Service Act, as amended;chanroblesvirtualawlibrary
"(g) To adopt and establish guidelines for the
employment of personnel on the basis of merit, technical competence and
moral character;chanroblesvirtualawlibrary
"(h) To issue such rules and regulations as may be
necessary for the sanitary protection of watersheds, reservoirs,
conduits springs and other water sources; for sewers; for the
preservation and protection of water and sewer service as soon as
established; and for proper procedures in applying for approval of, and
connection to, water and/or sewer services which rules shall take
effect after publication at least once a week for three consecutive
weeks in a newspaper of general circulation in the territory served by
the System. chanroblesvirtualawlibrary
Section 5. Section 6 thereof, is hereby amended to
read as follows:cralaw:red
"Sec. 6. Meetings of the Board, quorum, required
votes, per diems. — The Board of Directors shall immediately, after its
organization, adopt rules and procedures in the conduct of its meeting.
A majority of at least three of the members of the Board to include the
Chairman and/or Vice-Chairman shall constitute a quorum to transact
business, and the affirmative vote of three shall be required for the
adoption of any action. The members of the Board shall receive a per
diem not to exceed three hundred pesos for every regular Board meeting
and one hundred pesos for every special meeting actually attended by
them; provided, that such, per diem shall not exceed one thousand five
hundred pesos during any calendar month for any member."
Section 6. Section 7 thereof, is hereby amended as
follows:cralaw:red
"Sec. 7. Other Officers and Employees: Their
appointment and Qualifications. — The management of the System shall be
vested in the General Manager who shall be appointed by the President
of the Philippines and shall hold office at the pleasure of the
President. He shall receive a compensation a sixty thousand pesos per
annum unless the Board shall fix a higher amount therefor, he shall be
assisted by four Assistant General Manager — one for Engineering, one
for Operation, one for Finance and Administration, one for Commercial
and Customers Service — and heads of departments all of whom shall
perform managerial, highly technical and/or primarily confidential
functions, and such additional officers and employees as the board may
provide. The Assistant General Managers shall be appointed by the Board
and each receive a compensation of forty eight thousand pesos per annum
unless the Board shall fix a higher amount therefor.
The Assistant General Managers shall be persons of integrity,
competence, and experience in technical and executive fields related to
the purpose of this Act. Their other qualifications as well as powers
and duties shall be determined by the Board.
In case of temporary disability or absence of the General Manager, the
Chairman of the Board shall designate any Assistant General Manager, to
act as General Manager; in case of temporary disability or absence of
any Assistant General Manager, the General Manager may designate any
department head in the group to act as Assistant General Manager."
Section 7. Paragraphs (a), (b), (c) and (d) thereof
of Section 8 are hereby amended to read as follows:cralaw:red
"Sec. 8. Other powers and duties of the General
Manager. —chanroblesvirtualawlibrary
"(a) To execute and administer the policies and
measures approved by the Board, and be responsible for the efficient
discharge of management functions;chanroblesvirtualawlibrary
"(b) To submit for the consideration of the Board
such policies and measures which he deems are necessary to carry out
the purposes and provisions of this Act;chanroblesvirtualawlibrary
"(c) To direct and supervise the operation and
internal administration of the System and, for the purpose, he may
delegate some or any of his administrative responsibilities and duties
to other officers of the System; and
"(d) Subject to the guidelines and policies set up by
the Board:cralaw:red
"(1) To appoint or promote upon recommendation of the
proper Assistant General Manager with the approval of the Board, the
department heads, division and section chiefs, and other officers of
equivalent rank;chanroblesvirtualawlibrary
"(2) To appoint or promote all other personnel upon
recommendation of the proper Assistant General Manager, and to submit
to the Board a monthly report on such appointments and non-disciplinary
transfers made on the month immediately preceding;chanroblesvirtualawlibrary
"(3) To remove, suspend or otherwise discipline for
cause, or terminate by reason or incapacity, department heads, division
and section chiefs, and other officer of equal rank, subject to the
approval of the Board, and in accordance with the provision of Article
VII of the Civil Service Act, as amended;chanroblesvirtualawlibrary
"(4) To remove, suspend or otherwise discipline for
cause or terminate by reason of incapacity all other personnel in
accordance with the provisions of Article VII of the Civil Service Act,
as amended.
Section 8. Section 9 thereof is hereby amended by
substitution to read as follows:cralaw:red
"Sec. 9. Authority to Incur Indebtedness and Issue
Bonds; Their Condition, Privileges, Exceptions; Sinking Funds;
Guarantee. chanroblesvirtualawlibrary
"(a) Domestic Indebtedness. — Whenever the Board
deems it necessary for the System to incur indebtedness or to issue
bonds to carry out the purpose for which the System has been organized,
it shall, by resolution, so declare and state the purpose for which the
proposed debts to be incurred. In order that such resolution be valid,
it shall be passed by the affirmative vote of at least three members of
the Board and approved by the President of the Philippines upon
recommendation of the Secretary of Finance.
"The Board shall determine the amount, terms, and conditions of
domestic indebtedness, subject to approval by the Secretary of Finance.
"The bonds issued under the authority of this subsection shall be
exempt from the payment of all taxes by the Republic of the
Philippines, or by any authority, branch, division or political
subdivision thereof, which facts shall be stated upon the face of said
bonds. Said bonds shall be receivable as security on any transaction
with the Government for which such security is required.
"A sinking fund shall create, the total thereof at each annual due date
of the bonds to be equal to an amount of annuity earning an annual
interest of nine-tenth of the rate of interest of the bonds as fixed by
the Secretary of Finance. The sinking fund shall be under the custody
of the Treasurer of the Philippines. Who shall invest the same subject
to the approval of the Board and Secretary of Finance.
"The Republic of the Philippines is hereby guarantees the payment by
the System of both principal and the interest of the bonds issued by
said System by virtue of this Act, and shall pay such principal and
interest in case of the System fails to do so. There is hereby
appropriated, out of the general funds in the National Treasury not
otherwise appropriated, the sums necessary to make the payments
guaranteed by the Act; Provided, that the sums paid by the Republic of
the Philippines shall be refunded by the System; Provided, further,
that the System shall set aside five per centum of its annual net
operating revenues before interests as a reserve or sinking fund to
answer for amounts advanced by the National Government for any loan,
credit and indebtedness contracted by the former for which the latter
shall be held answerable as primary obligor or guarantor under the
provisions of this Act; Provided, furthermore, that the setting aside
of the amounts mentioned herein shall automatically cease the moment
the accumulated sinking fund or reserve exceeds the amounts advanced to
the System by the National Government under this Act; Provided,
finally, that the System may be periodically make partial payments to
the National Government out of the said reserve.
"The total principal indebtedness of the System under this subsection,
exclusive of interest, shall not exceed one billion pesos, at any given
time. chanroblesvirtualawlibrary
"(b) Foreign Loans. — The System is hereby authorized
to contract loans and credits, in any convertible foreign currency or
capital goods, and to incur indebtedness from time to time from foreign
governments, or any international financial institutions or fund
sources or to issue bonds, the total outstanding amount of which,
exclusive of interest, shall not exceed two hundred million United
States dollars or the equivalent thereof in other currencies at any
given time on such terms as it shall deem appropriate for the
accomplishment of its purposes and to enter into and execute agreements
and other documents specifying such terms and conditions.
"The President of the Philippines, by himself, or through his duly
authorized representative, is hereby authorized to negotiate and
contract with foreign governments or any international financial
institution or fund sources in the name and on behalf of the System,
one or several loans, for the purpose of assisting the reconstruction,
or promoting the development of the country.
"The President of the Philippines, by himself, or through his duly
authorized representative, is hereby further authorized to guarantee,
absolutely and unconditionally, as primary obligor and not as surety
merely, in the name and on behalf of the Republic of the Philippines,
the payments of the loans, credits, indebtedness and bonds issued up to
the amount herein authorized, which shall be over and above the amount
which the President of the Philippines is authorized to guarantee under
Republic Act 4860, as amended, as well as the performance of all or any
obligations undertaken by the System in the territorial jurisdiction of
the Republic of the Philippines pursuant to loan agreements entered
into with foreign governments or any international financial
institutions or fund sources.
"The loans, credits and indebtedness contracted under this subsection
and the payments of the principal, interest and other charges thereon,
as well as the importation of machinery, equipment, material, supplies
and services by the System, paid from the proceeds of any loan, credit,
or indebtedness incurred under this Act, shall also be exempt from all
direct and indirect taxes, fees, impost, other charges and
restrictions, including import restrictions previously and presently
imposed and to be imposed by the Republic of the Philippines, or any of
its agencies and political subdivisions."
Section 9. A new section, to be known as Section 9-A
thereof, is hereby provided to read as follows:cralaw:red
"Sec. 9-A. Construction or Repair Work Awarded Upon
Public Bidding; Exceptions. — All construction or repair work of the
System involving an estimated cost of seventy-five thousand pesos or
more shall be awarded by the General Manager with the approval of the
Board to the responsible bidder who made the lowest and most
advantageous bid. Notice to Bidders shall be published as provided by
law. In case no satisfactory bid is received, the General Manager may
proceed to advertise anew, or, with the approval of the Board, to do
the work by administration. Before award of contract is made, the
General Manager shall require the Contractor to give an adequate bond
to secure the proper accomplishment of the work under contract and to
satisfy all obligations to materials used and labor employed upon the
same; Provided, that any repair, reconstruction or other work of an
emergency nature may be authorized by the Board to be undertaken by
administration or by contract, and provided, further, that any single
work of construction or repaid involving an estimated total cost less
than seventy-five thousand pesos, may, at the option of the General
Manager, be authorized by him to be undertaken by administration or by
contract after a canvass of the market to determine the lowest and most
advantageous bid."
Section 10. A new section, to be know as Section 10-A
thereof, is hereby provided to read as follows:cralaw:red
"Sec. 10-A. Punishable Acts. — Any person who shall
maliciously destroy, injure or interfere with canal, raceway, ditch,
lock, pier, inlet, crib, bulkhead, dam, gate, service, reservoir,
aqueduct, water distribution pipes, conduit, pipes, weir, bench-mark,
monument, or other works, appliance, machinery, building, or property
of the System or shall maliciously do any act which shall injuriously
affect the quantity of the water or sewage flow of the System, or the
supply, conveyance, measurement, or regulation thereof, or who shall
maliciously interfere with any person engaged in the discharge of
duties connected therewith, or who shall maliciously prevent, obstruct,
and interfere with the survey, works and the construction of access
road and water mains and distribution network and any related works of
the System shall be punished upon conviction, with a fine ranging from
one thousand to five thousand pesos or imprisonment ranging from one to
five years, or both, such fine and imprisonment at the discretion of
the court, and any injured party shall have the right to recover all
the damages suffered and cost of suit in a separate civil action in any
Court of competent jurisdiction; Provided, further, that any person who
shall violate any rule or regulation of the System issued pursuant to
the law or who shall connect to water and/or sewer lines without
approval of the System shall, upon conviction, be punished with a fine
of not more than one thousand pesos or imprisonment for not more than
six months or both such fine and imprisonment upon the discretion of
the Court; Provided, finally, that the System shall be authorized to
summarily disconnect any illegal connection pending the appropriate
court action." chanroblesvirtualawlibrary
Section 11. Section 11 thereof is hereby amended to
read as follows:cralaw:red
"Sec. 11. Audit. — The Chairman of the Commission on
Audit shall be the ex-officio auditor of the System. The provisions of
Section five hundred eighty four of the Revised Administrative Code as
amended by Section one of Republic Act Numbered 2266 and Republic Act
Numbered 2716 and further amended by Presidential Decree Numbered 61,
111 and 111-A, shall apply to the Office of the Representative of the
Commission on Audit in the System."
Section 12. Section 15 thereof is hereby amended by
the deletion of the last provision therein which reads as follows:cralaw:red
"Provided, finally, That in no case shall the expenses in any fiscal
year for salaries, wages, allowances, emoluments and other fringe
benefits exceed thirty-five per cent (35%) of the gross income of the
System in the immediately preceding fiscal year."
Section 13. Section 18 thereof is hereby amended to
read as follows:cralaw:red
"Sec. 18. Non-Profit Character of the System,
Exemption from all Taxes, Duties, Fees, Imposts and Other Charges by
Government and Governmental Instrumentalities. — The System shall be
non-profit and shall devote all its returns from its capital investment
as well as excess revenues from its operations, for expansion and
improvement. To enable the System to pay its indebtedness and
obligations and the furtherance and effective implementation of the
policy enumerated in Section one of this Act, the System is hereby
declared exempt:cralaw:red
(a) From the payment of all taxes, duties, fees,
imposts, charges and restrictions of the Republic of the Philippines,
its provinces, cities, municipalities and other government agencies and
instrumentalities including the taxes, duties, fees, imports, and other
charges provided for under Tariff and Customs Code of the Philippines,
Republic Act Numbered Nineteen hundred thirty-seven, as amended to
further amended by Presidential Decree No. 34, dated October 27, 1972
and costs and service fees in any Court or administrative proceedings
in which it may be a party;chanroblesvirtualawlibrary
(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 imposts, duties, compensating taxes, and
advanced sales tax, and wharfage fees on import of foreign goods
required for its operations and projects."
Section 14. This Decree is hereby made part of the
law of the land and provisions of existing laws, decrees, orders, rules
and regulations, or parts thereof, in conflict with this Decree are
hereby repealed or modified accordingly.
Section 15. This Decree shall take effect
immediately.
Done in the City of Manila,
this 29th day of March, in the year of Our Lord, nineteen hundred and
seventy-four.
|
Back
to Home
- Back
to Main
chanroblesvirtuallawlibrary
Since 19.07.98
|