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PRESIDENTIAL DECREE NO. 594
PRESIDENTIAL DECREE NO. 594 -
AMENDING CERTAIN PROVISIONS OF REPUBLIC ACT NUMBERED THIRTY HUNDRED AND
THIRTY-FOUR ENTITLED "AN ACT CREATING THE MINDANAO DEVELOPMENT
AUTHORITY, PRESCRIBING ITS POWERS, FUNCTIONS, AND DUTIES, PROVIDING
FUNDS THEREFOR AND FOR OTHER PURPOSES"
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chanroblesvirtualawlibrary
WHEREAS, it
is a declared policy to promote and accelerate the socio-economic
growth and development of the Mindanao region; chanroblesvirtualawlibrary
WHEREAS, in pursuance of such policy there is an urgent need to
strengthen and extend over-all support to the Mindanao Development
Authority to enable it to meet the implementation requirements of its
expanding programs and activities in its area of responsibility;chanroblesvirtualawlibrary
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 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 and in order to effect
the desired changes and reforms in the social, economic and political
structure of our Society, do hereby order and decree as follows:cralaw:red
Section 1. Section 1 of Republic Act numbered thirty
hundred and thirty-four is hereby amended to read as follows: chanroblesvirtualawlibrary
"Sec. 1. Declaration of policy. — It is hereby
declared to be the policy to foster the accelerated and balanced growth
of the Mindanao and Sulu region, hereinafter referred to as the region,
within the context of national plans and policies for social and
economic development, through the leadership, guidance and support of
the government. To achieve this end, it is recognized that a government
corporation should be created for the purpose of drawing up the
necessary plans for regional development; providing leadership in the
setting up of pioneering or groundbreaking industrial and agricultural
enterprises; coordinating or integrating the diverse efforts of the
various public and private entities directly engaged in implementing
plans and projects affecting power, manufacturing, mining
transportation and communication, conservation, resettlement,
education, extension work, health and other activities leading to the
rapid, socio-economic growth of the region; and extending or
facilitating the extension of financial, management and technical
support to worthwhile industrial and commercial ventures within the
region.
Section 2. Section 5, Subsections (a), (d), (e), (f)
and (g) of the said Act are hereby amended to read as follows:cralaw:red
"Sec. 5. Purposes. — The Authority shall have the
following purposes:cralaw:red
(a) To make a comprehensive survey of the physical
and natural resources and potentialities of the region, including its
social conditions, values and institutions, and special regional
problems and, on the basis thereof, to draft a comprehensive and
detailed plan designed to promote the region's rapid social and
economic development along the general lines set forth by the National
Economic and Development Authority.
(d) To coordinate and/or integrated such projects or
operations of local governments, governmental agencies, public
corporations and, where clearly necessary and feasible, those of
private entities, as bear directly upon the plans and activities of the
Authority so as to make possible the accelerated and balanced
development of the region within the context of the guidelines
formulated by the National Economic and Development Authority; for this
purpose, to set up a compact and well-trained staff for effective
liaison and consultation or joint planning and/or implementation with
such government and private entities: Provided, That disputes involving
jurisdiction between the Authority and any department, bureau, office,
or agency or instrumentality of the government within the area covered
by this Act, and these arising in the coordination or integration of
government plans, projects or operations in the area shall be settled
by decisions of the President of the Philippines. chanroblesvirtualawlibrary
(e) To engage in industry, agriculture or other
enterprises within the region which may be necessary or directly
contributory to the socio-economic development of the region and, for
this purpose, whether by itself or in cooperation with private persons
or entities, to organize, finance, invest in, and operate subsidiary
corporations when such an arrangement is clearly necessary to implement
the powers granted to it by this Act: Provided, That the Authority
shall engage only in those activities as are in the nature of
pioneering ventures or are demonstrably beyond the scope, capacity, or
interest of purely private enterprises due to consideration of
geography, technical or capital requirements, returns on investments,
and risks: Provided, further, That the Authority may undertake and/or
invest in social and/or service-oriented projects upon the prior
approval of the President, on recommendation of the National Economic
and Development Authority [NEDA].
(f) To advise, cooperate in and, if necessary, to
undertake by itself the readjustment, relocation or resettlement of
population in any part of the country that may be displace or affected
by the socio-economic measures of the government in cooperation with
the national, provincial, city and municipal agencies organized towards
that end.
(g) To make a report annually to the National
Economic and Development Authority and the President, based upon its
continuing assessment and evaluation, in the light of the Authority's
approved plans and objectives, of the progress of its activities,
including those done in collaboration with various government and
private entities engaged in the implementation of socio-economic plans
and projects in the region, including in such report, among other
items, a general survey of the social economic conditions of the
regions, socio-economic problems having special reference to work of
the Authority, a comparison of the development targets set for the year
ending and the manner in which actual accomplishments measure up to
such targets, and appropriate administrative and legislative
recommendations.
Section 3. Section 6, Subsections (f) and (h) of the
same Act are hereby amended to read as follows:cralaw:red
"Sec. 6. Powers, functions, eminent domain, etc. —
Except as otherwise specifically provided in this act, the Authority
shall have the following powers and functions: chanroblesvirtualawlibrary
xxx
xxx
xxx
(f) To acquire, lease, or hold such personal and real
property as it deems necessary or convenient in the transaction of its
business and may lease, mortgage, sell, alienate or otherwise dispose
of any such personal and real property held by it.
(h) To exercise the right of eminent domain in the
name of the Republic of the Philippines, and in the acquisition of real
estate by condemnation proceedings, the title to such real estate shall
be taken in the name of the Republic of the Philippines, but thereafter
the title to all such real estate shall be transferred to the Authority
by presidential decree or proclamation to accomplish thems and purpose
of this Act.
Section 4. Section 7, Subsection (c) of the same Act
is amended to read as follows:cralaw:red
"Sec. 7. Capitalization. — The Authority shall have
an authorized capital of three hundred million pesos (P300,000,000)
which shall be fully subscribed by the Republic of the Philippines and
shall be paid out as follows:cralaw:red
(c) In case the Authority shall undertake social
and/or service-oriented projects as provided under Section 5 (e) of
this Act, the Board of Directors may appropriate out of the Authority's
revolving fund such amounts as may be necessary to prosecute the said
projects. The National Government shall reimburse the authority for
such expenses actually incurred in the prosecution of such projects
which reimbursement shall accrue to the authority's revolving fund.
Section 5. Section 8 is hereby repealed in its
entirety and a new provision to be known as Section 8 is hereby
inserted which shall read as follows:cralaw:red
"Sec. 8. Operating Expenses. — For the operating
expenses of the authority, the Board of Directors may appropriate out
of the authority's revolving fund a sum not exceeding two million pesos
during the fiscal year. A standing annual appropriation of two million
pesos is hereby authorized to be appropriated in the General
Appropriations Act for the current fiscal year, which amount shall be
used to reimburse the authority of the total expenses actually incurred
out of the two million pesos for operating expenses during the
preceding fiscal year, which reimbursement shall accrue to the
revolving fund. The unexpended balance of the appropriation for
operating expenses shall automatically revert to said revolving fund at
the end of each fiscal year and whatever net income of the authority,
if any, shall also accrue to the revolving fund. However, the Board of
Directors may appropriate, in addition to the two million pesos
operating expenses herein authorized, such amount as may be necessary
to augment the operating expenses of the authority: Provided, That such
additional appropriation shall be subject to the approval of the
President, upon the recommendation of the National Economic and
Development Authority.
Section 6. Section 9 of the same act is amended to
read as follows:cralaw:red
"Sec. 9. Power to issue bonds. — Whenever the Board
of Directors may deem it necessary for the Authority to incur an
indebtedness or to issue bonds to carry out the provisions of this Act,
it shall, by resolution, so declared and state the purpose for which
the proposed debt is to be incurred. In order that such resolution be
valid, it shall be passed by the affirmative vote of at least three
members of such Board and approved by the President of the Philippines
upon the recommendation of the National Economic and Development
Authority, after consultation with the Monetary Board of the Central
Bank.
Section 7. Section 21 of the same Act is amended to
read as follows:cralaw:red
"Sec. 11. Form, rates of interest of bonds, etc. —
The National Economic and Development Authority, in consultation with
the Monetary Board, shall prescribe the form, the rates of interest,
the denominations, maturities, negotiability, convertibility, call and
redemption features, and all other terms and conditions of issuance,
placement, sale servicing, redemption, and payment of all bonds issued
under the Authority of this Act. chanroblesvirtualawlibrary
The bonds issued by virtue of this Act may be made payable both as to
principal and interest in Philippine currency or any readily
convertible foreign currency. Said bonds shall be receivable as
security in any transactions with the Government in which such security
is required.
Section 8. Section 12 of the same Act is amended to
read as follows:cralaw:red
"Sec. 12. Exemption from tax. — The Authority shall
be exempt from all taxes, fees, imports and duties of whatever nature,
whether national, provincial, city or municipal, incidental to its
operations: Provided, That its subsidiary corporations shall likewise
be exempt from all said taxes, fees, imports and duties: Provided,
further, That in the event the Authority shall have transferred control
or ownership of such subsidiary corporation to the private sector, the
same shall be subject to all said taxes after said transfer. All notes,
bonds and debentures and other obligations issued by the Authority
shall be exempt from all taxes, both as to principal and interest.
Section 9. Section 13 of the same Act is amended to
read as follows:cralaw:red
"Sec. 13. Sinking Fund. — A sinking fund shall be
established in such manner that the total annual contributions thereto,
accrued at such rate of interest as may be determined by the National
Economic and Development Authority in consultation with the Monetary
Board, shall be sufficient to redeem at maturity the bonds issued under
this Act. Said fund shall be under the custody of the Central Bank of
the Philippines which shall invest the same in such manner as the
Monetary Board may approve; charge all expenses of such investments to
said sinking funds, and credit the same with the interest on
investments and other income belonging to it. chanroblesvirtualawlibrary
Section 10. Section 15 of the same Act is amended to
read as follows:cralaw:red
"Sec. 15. Board of Directors Composition. — The
corporate powers of the Authority shall be vested in and exercised by a
Board of Directors hereinafter referred to as the Board which shall be
composed of seven members appointed by the President. The President
shall designate from among the members of the Board its Chairman:
Provided, however, That the President may, in the interest of the
service, designate the General Manager as Acting Chairman of the Board.
Section 11. Section 16 of the same Act is amended to
read as follows:cralaw:red
"Sec. 16. Acting Chairman. — In case of vacancy in
the position of Chairman and the President has not yet filled the same
in accordance with the preceding section, or in the absence or
incapacity of the Chairman, the most senior member of the Board in
point of length of service as member thereof who meets the
qualifications set forth in Section 27 of this Act shall act as
Chairman.
Section 12. Section 17 of the same Act is hereby
amended to read as follows:cralaw:red
"Sec. 17. Appointment and Tenure. — The term of
office of the first members of the Board shall expire as designated by
the President at the time of appointment: one at the end of the second
year; two at the end of the fourth year; and two, including the
Chairman, at the end of the sixth year after the approval of this Act.
A successor to a member of the Board shall be appointed in the same
manner as the original members and shall have a term of office expiring
six years from the date of the expiration of the term for which his
predecessor was appointed. chanroblesvirtualawlibrary
Section 13. Section 25 of the same Act is amended to
read as follows:cralaw:red
"Sec. 25. Per diems. — The members of the Board shall
receive for every meeting attended a per diem of two hundred and fifty
pesos; Provided, That in no case will the total amount received by each
exceed the sum of one thousand pesos. Members of the Board shall be
reimbursed by the Authority for actual expenses (including travelling
and subsistence expenses) incurred by them in the performance of their
duties."
Section 14. Section 26 of the same Act is hereby
amended to read as follows:cralaw:red
"Sec. 26. The General Manager shall be nominated by
the Board and appointed by the President. As such, he shall have the
following powers and duties:cralaw:red
(a) To prepare the agenda for the meetings of the
Board and to submit for the consideration thereof the policies and
measures which he believes to be necessary to carry out the purposes
and provisions of this Act;chanroblesvirtualawlibrary
(b) To execute and administer the policies and
measures approved by the Board;chanroblesvirtualawlibrary
(c) To direct and supervise the operations and
internal administration of the Authority. The General Manager may
delegate certain of his administrative responsibilities to other
officers of the Authority subject to the rules and regulations of the
Board; and
(d) To exercise such other powers as may be vested in
him by the Board.
Section 15. Section 28 of the same Act is amended to
read as follows:cralaw:red
"Sec. 28. Compensation. — The General Manager shall
receive a compensation of forty-eight thousand pesos per annum which
shall be charged against the Authority's annual appropriation for
operating expenses:cralaw:red
(a) In case of vacancy in the position of General
Manager and the President has not yet filled the same in accordance
with Section 26 of this Act, or in the absence or incapacity of the
General Manager, the Board may designate an Acting General Manager. In
the meantime, the most senior department head in point of length of
service as such in the authority shall act as General Manager and he
shall receive the compensation fixed for the General Manager.
Section 16. Section 30 is hereby amended to read as
follows:cralaw:red
"Sec. 30. Activities of the Authority; key officials.
— The activities of the Authority shall be carried out under the
supervision of the General Manager, through the following
administrative officials who will be responsible directly to him:cralaw:red
(a) An Assistant General Manager who shall head a
Department of Planning and Research.
(b) An Assistant General Manager who shall head a
Program Implementation Department which shall take charge of
implementing specific projects undertaken by the Authority.
(c) A General Counsel who shall head the Legal
Department to advise and represent the Authority on legal matters,
procedures, and actions.
(d) An Assistant General Manager who shall head a
Finance Department which shall develop and implement plans and programs
for the effective, efficient and economical utilization of the
Authority's financial resources, and advise the General Manager on
matters relating to finance.
(e) An Assistant General Manager who shall head an
administrative services department which shall plan, direct and
supervise such administrative services as supply and records
management, secretariat, duplicating, security, transportation, and
building maintenance and repair, and develop and administer sound
practices for personnel administration and advise the General Manager
on all personal matters.
(f) Such other officials as the Board of Directors
may consider necessary for the efficient conduct of the Authority's
activities.
Section 17. Section 31 of the same Act is amended to
read as follows:cralaw:red
"Sec. 31. Merit System. — All officials, agents, and
employees of the Authority shall be selected and appointed on the basis
of merit and fitness in accordance with a comprehensive and progressive
merit system to be established and administered by the Authority
immediately upon its organization and in accordance with Civil Service
rules and regulations. The recruitment transfer, promotion, and
dismissal of all Authority's personnel, including temporary workers,
shall be governed by such merit system.
Section 18. Section 32 of the same Act is amended to
read as follows:cralaw:red
"Sec. 32. Appointment by Board. — Department heads
shall be appointed by the Board, upon recommendation of the General
Manager.
Section 19. Section 33 of the same Act is amended to
read as follows:cralaw:red
"Sec. 33. Appointment by General Manager. — Employees
and officials below the rank of department head shall be appointed to
positions in the approved budget by the General Manager upon written
recommendation of the head of the department concerned using as guide
the standard set forth in the Authority's merit system: Provided, That
the General Manager shall submit a quarterly report to the Board
regarding personnel selection, placement and training.
Section 20. Section 37 of the same Act is amended to
read as follows:cralaw:red
"Sec. 37. Other Benefits. — As far as applicable, the
benefits granted by existing laws shall extend to persons given
employment under the provisions of this Act. chanroblesvirtualawlibrary
Section 21. Section 40 of the same Act is amended to
read as follows:cralaw:red
"Sec. 40. Authority under the National Economic and
Development Authority. — Any provision of law to the contrary
notwithstanding, the Authority shall operate as an independent
corporation subject only to the supervision by the National Economic
and Development Authority.
Section 22. Section 41 of the same Act is amended to
read as follows:cralaw:red
"Sec. 41. Supplies and services other than personal.
— All purchases of supplies or contracts for services, except personal
services, shall be entered into by the Authority. In accordance with
the rules and regulations prescribed and promulgated by the Board,
subject to the approval of the President on recommendation of the
National Economic and Development Authority.
Section 23. Section 42 of the same Act is hereby
repealed entirely and a new provision to be known as Section 42 is
inserted which shall read:cralaw:red
"Sec. 42. Auditing. — The Auditor General shall act
as ex-officio auditor of the Authority and as such is empowered and
authorized to appoint a representative who shall be the auditor thereof
and fix his salary in an amount equal to the salary authorized for the
first Assistant or next ranking Managing Head of the Authority. The
Auditor General shall, upon recommendation of the Auditor of the
Authority, appoint personnel, subject to the approval of the Board. The
Personnel expenses and operating costs of his office shall be
determined and paid by the Authority. Such salaries and number of
auditing personnel may only thereafter be increased, diminished or
altered by the Auditor General, subject to the approval of the Board,
and said representative and his subordinate personnel may receive such
allowances and privileges as may be authorized and approved by the
Board upon recommendation of the Auditor General.
Such representative shall render an annual audit report on the
financial condition and operations of the Authority to the Board thru
the Auditor General. The Auditor General shall submit his annual report
to the President and the National Assembly.
Section 24. This decree shall take effect immediately.
Done in the City of Manila,
this 3rd day of December, in the year of Our Lord, nineteen hundred and
seventy-four.
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