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PRESIDENTIAL DECREE NO. 492
PRESIDENTIAL DECREE NO. 492
- CREATING THE MANILA TRANSIT CORPORATION, APPROPRIATING FUNDS THEREFOR
AND FOR OTHER PURPOSES
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WHEREAS,
the proliferation of independent road transportation utility operators
in Metropolitan Manila has not provided the commuting public with
adequate and responsive service; chanroblesvirtualawlibrary
WHEREAS, this condition cannot improve the urban public transport
system when it tolerates destructive competition and other structural
diseconomies in public utility operations rather than encourage or
institute the integration, or consolidation of resources, management
and operations to achieve economy and efficiency;chanroblesvirtualawlibrary
WHEREAS, there is, then an urgent need for the Government to intervene
and institute through an appropriate instrumentality the
rationalization of the transportation system in Metropolitan Manila;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers in me vested by the Constitution as
Commander-in-Chief of all 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
order and decree the creation and organization of a Manila Transit
Corporation, to be governed by this decree and its by-laws in
accordance with the following:cralaw:red
Section 1. Declaration of Policy. — It is hereby
declared to be the policy of the state to rationalize and integrate
public transportation services in order to attain the following
objectives:cralaw:red
1. To integrate public transportation operations in
Metropolitan Manila (herein used as defined by the Bureau of Census and
Statistics) into one corporate entity such that the operators, with
franchises to operate within the area, transfer their assets involved
in the transport business in exchange for equity participation in the
corporation.
2. To establish and operate an integrated public
transportation system in Metropolitan Manila which will: (1) eliminate
destructive competition and service duplication among different
transport modes and firms; (2) rationalize route allocation and provide
proper balance of commuter service in all routes; (3) effect economies
in operations and overhead facilities and logistics support; (4)
develop a financially strong and operationally efficient metropolitan
transport firm; (5) work towards the standardization of rolling stock
equipment and other facilities in order to satisfy the requirements of
the riding public.
Section 2. Manila Transit Corporation: — Creation and
Purpose. — To implement state policy and pursue the objectives set
forth in the preceding section, there is hereby created a body
corporate to be known as the Manila Transit Corporation which shall
have its principal place of business in the City of Manila.
Section 3. Corporate Powers. — The Corporation shall
have the power:cralaw:red
a) to prescribe its by-laws;chanroblesvirtualawlibrary
b) to adopt, alter and use a corporate seal;chanroblesvirtualawlibrary
c) to make contracts and to sue and be sued;chanroblesvirtualawlibrary
d) to own real or personal property and to sell,
mortgage or otherwise dispose of the same;chanroblesvirtualawlibrary
e) to employ such officers and personnel as may be
necessary to carry on its business;chanroblesvirtualawlibrary
f) to acquire rolling stocks, repair and maintenance
equipment, and other facilities;chanroblesvirtualawlibrary
g) to manage and operate a public transport system
within Metropolitan Manila in accordance with the above-stated policy
objectives;chanroblesvirtualawlibrary
h) to establish, manage or operate related activities
and facilities, such as transport infrastructures, terminal facilities,
parking areas, and the like, subject to the approval of the appropriate
government authorities;chanroblesvirtualawlibrary
i) to contract loans, credits in any convertible
foreign currency or capital goods, and indebtedness from time to time
from foreign governments, or any international financial institutions
or funds sources or to issue bonds, the total outstanding amount of
which, exclusive of interest, shall not exceed Five Hundred Million
United States Dollars or the equivalent thereof in other currencies, on
such terms and conditions as it shall deem appropriate for the
accomplishments of its purposes and to enter into and execute
agreements and other documents specifying such terms and
conditions. chanroblesvirtualawlibrary
The President of the Philippines, by himself, or through his duly
authorized representative, is hereby authorized to negotiate and
contract loans with foreign governments or any international financial
institution of fund source, in the name and on behalf of the
corporation, for the accomplishment of its purposes.
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 in behalf of the Republic of the Philippines,
the payment of the loans, credits, indebtedness and bonds issued up to
the amount which the President of the Philippines is authorized to
guarantee under Republic Act Numbered Sixty One Hundred Forty Two, as
amended, as well as the performance of all or any of the obligations
undertaken by the Corporation in the territory 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 payment of the principal, interest and other charges thereon,
as well as the importation of machineries equipment, materials, supply
and services, by the Corporation, paid from the proceeds of any loan,
credit for indebtedness incurred under this Act, shall also be exempt
from all direct and indirect taxes, fees imports and 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. chanroblesvirtualawlibrary
j) to exercise the powers granted under this decree
and such other incidental powers as may be necessary to carry on its
business and the general powers mentioned in the Corporation Law, as
amended, insofar as they are not inconsistent herewith.
Section 4. Authorized Capital Stock, Appropriation: —
The Corporation shall have a capital stock divided into three million
voting and no par value shares to be subscribed, paid for and voted as
follows:cralaw:red
(a) two million shares of stocks shall be subscribed
and paid for by the government of the Republic of the Philippines. For
this purpose, the amount of ten million (P10,000,000.00) Pesos is
hereby set aside from the general funds, not otherwise appropriated, to
be applied to the full payment of the two million shares subscribed by
the government.
(b) to assure early and gradual institution of an
integrated public transport system, the Corporation is hereby
authorized to sell the remaining one million voting and no par shares
to persons or entities operating public utility vehicles in
Metropolitan Manila Area at issue values to be determined by the Board
of Directors.
The voting power pertaining to shares of stock subscribed by the
Government of the Republic of the Philippines shall be vested in the
President of the Philippines or in such person of persons as he may
designate.
Each share of stock shall represent one vote and any agreement,
contract, arrangement scheme or plan that shall transfer ownership and
voting rights over the shares such that the public corporate nature of
the corporation shall be impaired or removed is hereby prohibited.
Section 5. Board of Directors. — The Corporation
shall be governed and its activities shall be directed, controlled and
managed by a Board of Directors that shall be composed of five (5)
ex-officio members, namely, the Secretary of Public Works,
Transportation and Communications (or the successor Department with
respect to Transportation) who shall act as Chairman, the Executive
Secretary, the Secretary of National Defense, the Secretary of Industry
and the Secretary of Finance, and two (2) other members to be appointed
by the President of the Philippines. The two appointive directors shall
each serve for a term of two (2) years.
Section 6. Functions and Duties of the Board of
Directors. —chanroblesvirtualawlibrary
1. The Board shall appoint and fix the salaries of a
General Manager and such other affiliates as may be necessary for the
international administration of the Corporation.
2. The Board shall establish such number of Divisions
in the Corporation as may be necessary for the accomplishment of its
corporate purposes. chanroblesvirtualawlibrary
3. The Board shall submit to the President of the
Philippines and shall publish an annual report of the condition of the
Corporation before the end of February of each year.
Section 7. The Auditor. — The Chairman of the
Commission on Audit shall appoint a representative who shall be the
necessary personnel to assist said representative in the performance of
his duties. The salaries of the Auditor and his staff shall be fixed by
the Chairman of the Commission on Audit with the advice of the Board of
Directors and said salaries, and other expenses for the auditor's
office shall be paid by the Corporation. The Auditor of the Corporation
and personnel under him may be removed only by the Chairman of the
Commission on Audit.
Section 8. Exemptions. — All positions of the
Corporation whether technical, administrative, professional, or
managerial, are exempt from the provisions of the Civil Service Law and
the rules and regulations of the Wage and Position Classification
Office, and shall be governed only by the personnel management policies
set by the Board of Directors, provided further that all personnel
shall be entitled to the benefits and privileges normally accorded to
government employees.
Section 9. Implementing Rules. — The Secretary of
Public Works, Transportation and Communication shall within the (30)
days from the date of his appointment, call for an organizational
meeting of the Board in order that Corporate business may forthwith be
commenced.
Done in the City of Manila,
this 27th day of June, in the year of Our Lord, Nineteen Hundred and
Seventy-Four.
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