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Chan Robles Virtual Law Library
PRESIDENTIAL DECREE NO. 690
PRESIDENTIAL DECREE NO. 690 -
CREATING THE SOUTHERN PHILIPPINES DEVELOPMENT ADMINISTRATION AND
ABOLISHING THE COMMISSION ON NATIONAL INTEGRATION, THE MINDANAO
DEVELOPMENT AUTHORITY, THE PRESIDENTIAL TASK FORCE FOR THE
RECONSTRUCTION AND DEVELOPMENT OF MINDANAO, AND THE SPECIAL PROGRAM OF
ASSISTANCE FOR THE REHABILITATION OF EVACUEES (SPARE), APPROPRIATING
FUNDS THEREFOR, AND FOR OTHER PURPOSES
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chanroblesvirtualawlibrary
WHEREAS, it
is the policy of the Government to foster and accelerate the balanced
growth of the Mindanao, Sulu archipelago and Palawan for the national
economic, social and political stability;chanroblesvirtualawlibrary
WHEREAS, surveys and studies indicate a pressing need to accelerate the
socio-economic growth and development of the region to make it more
responsive to the national plans and policies within the context of
national solidarity with the leadership, support and total commitment
of the government;chanroblesvirtualawlibrary
WHEREAS, it is further recognized that, ultimately, sustained
development of the region will rely heavily on the capabilities of the
people of the area to participate in the total effort in undertaking
integrated development projects under one authoritative agency;chanroblesvirtualawlibrary
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, as part of the law of the land, the creation of the
Southern Philippines Development Administration as follows:cralaw:red
Section 1. Declaration of Policy. — It is hereby
declared the policy of the Government to foster and accelerate the
balanced growth of Mindanao, Sulu archipelago and Palawan, within the
context of national plans and policies, by the activation of mass
participation in the processes of development to be exercised through a
unified responsive agency; democratization of opportunity for
improvement and maximization of benefits in the utilization and
allocation of all resources that may be available.
Section 2. Creation of the Southern Philippines
Development Administration. — There is hereby created a body corporate
to be known as the Southern Philippines Development Administration,
hereinafter referred to as the "Administration" which shall be governed
by the provisions of this Decree. Generally, the Administration shall
be the agency of the government which shall be responsible for the
initiation and/or implementation of development projects in such areas
or fields where other government offices have not taken action or have
failed to take effective positive action under such arrangements as may
be agreed upon between the office or agency concerned and the
Administration. Pending such arrangement or in case of conflict, the
Administration may proceed to undertake the project subject to prior
approval of the President of the Philippines upon recommendation of the
NEDA. chanroblesvirtualawlibrary
The Administration shall exercise the powers and functions provided in
this Decree in close coordination with the Regional Development offices
of the National Economic and Development Authority and of the different
Executive Departments for the alignment and integration of its programs
and projects with the national development plans. For this purpose, the
Administration shall coordinate with NEDA for policy formulation.
Section 3. Principal Office; Term. — The principal
office of the Administration shall be in Davao City. It may, however,
establish such branches, subsidiaries, offices or agencies as it may
deem proper and necessary for the attainment of the objectives of this
Decree. The Administration shall have a term of fifty years from the
issuance hereof, renewable for the same period unless otherwise
provided by law.
Section 4. Purposes. — The Administration shall have
the purposes and objectives given as follows:cralaw:red
a) Promote the development of Mindanao, Sulu
archipelago and Palawan by initiating and/or undertaking by itself or
otherwise, development and/or business projects in social and/or
economic fields whether in agriculture, power, infrastructure,
education, energy, public utilities, housing, land development,
manufacturing, exploration and/or utilization of natural resources and
other fields or projects;chanroblesvirtualawlibrary
b) Generate and encourages mass active participation
and cooperation of the members of national cultural communities in its
activities which shall comprise, among others: manpower development;
provision of material, financial or technical assistance; and
initiation, development and/or implementation of projects giving
preference to cultural community groups, including programs designed
for the immediate return, resettlement and rehabilitation of
evacuees; chanroblesvirtualawlibrary
c) Initiate and undertake projects for the promotion
of community life through organized social or economic activities and
institutionalized schemes of assistance and incentives; and
d) Make investments in any field as would enhance the
socio-economic development of the region, the uplift of living
standards of the people and their socio-political stability.
Section 5. Corporate Powers. — The Administration
shall exercise the powers and perform the functions given as follows:cralaw:red
a) To succeed on its corporate name, with the power
of succession.
b) To sue and be sued in such corporate name.
c) To adopt, alter and use a corporate seal, which
shall be judicially noticed.
d) To undertake the programs and projects specified
or envisioned under Section 4 hereof.
e) To make contracts of any kind and description to
enable it to discharge its functions and attain the objectives provided
in this Decree.
f) To adopt, amend and repeal its by-laws.
g) To acquire, lease or hold such personal and real
property as it deems necessary or inconvenient in the transaction of
its business and to lease out, mortgage, sell, alienate or otherwise
dispose any such personal and real property held by it, but not to sell
its properties and products for delivery or use outside of the
Philippines without the approval of the President.
h) To hold, own, possess, lease, convey, mortgage
agricultural lands.
i) To invest its funds as it may deem proper for the
attainment of the objectives of this Decree provided that no funds of
the Administration shall be invested in bonds or securities except
those issued and guaranteed by the government.
j) 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 government to accomplish thems and purposes
of this Decree.
k) Whenever essential to the proper administration of
its corporate affairs or necessary for the proper transaction of its
business or to carry out the purposes of its organization, to contract
indebtedness and issue bonds subject to the approval of the President,
upon recommendation of the Secretary of Finance.
l) To charge and collect fees, dues, or other charges
at reasonable rates for such services and/or facilities that may be
provided by the Administration.
m) Determine its own organizational structure and
revise the same as may be necessary for the effective undertaking of
its powers and functions and attainment of its objectives. chanroblesvirtualawlibrary
Section 6. Capitalization. — The Administration shall
have an authorized capital of five hundred million pesos
(P500,000,000.00) to be fully subscribed and paid by the Government of
the Republic of the Philippines, to be appropriated out of any funds in
the National Treasury not otherwise appropriated and/or from proceeds
from loans and the issuance of bonds and other forms of evidences of
indebtedness which are hereby authorized to be incurred or to be issued
by the Secretary of Finance for the purpose; Provided, however, That
the net assets of the Mindanao Development Authority and the Commission
on National Integration as of the date of this Decree shall be
considered as paid-in capital of the Government. The balance of the
authorized capital of the Administration shall be paid as follows:cralaw:red
a) The amount programmed for release during the
remaining period of Fiscal Year 1975 from the existing appropriations
of the Mindanao Development Authority, the Commission on National
Integration and the Presidential Task Force for Reconstruction and
Development of Mindanao shall also form part of the authorized capital
of the Administration.
b) The remaining balance shall be paid by the
Government in the sum of P100 million beginning FY 1976 and annually
thereafter until the entire authorized capital of the Administration
shall have been paid in full. chanroblesvirtualawlibrary
Section 7. Special Development Fund. — All balances
out of the existing appropriations for developmental purposes of the
Mindanao Development Authority, the Commission on National Integration
and the Presidential Task Force for the Reconstruction and Development
of Mindanao transferred to the Administration as hereinbelow provided,
and any additional appropriation that may be provided from time to time
to the Administration for development purposes shall upon release
thereof be credited to a Special Development Fund which is hereby
created in the National Treasury such fund to be disbursed and expended
by the Administration exclusively for the authorized purposes or
projects envisioned under P.D. No. 290, as well as other existing laws,
rules and regulations.
Section 8. Operating Expenses. — There is hereby
appropriated the sum of One million pesos out of the funds in the
National Treasury not otherwise appropriated for the operating costs of
the Administration for the remaining period of Fiscal Year 1974-75.
Thereafter and for subsequent fiscal year, the amount of Five million
pesos shall be provided in the General Appropriations Act to cover the
operating expenses of the Administration.
Section 9. Bond Issuance. — Whenever the Board of
Directors may deem it necessary for the Administration to incur an
indebtedness or to issue bonds to carry out the provisions of this
Decree, it shall, by resolution, so declare 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 a simple majority of all the members of such Board and approved
by the President of the Philippines upon the recommendation of the
Secretary of Finance, after consultation with the National Economic
Development Authority and the Monetary Board of the Central Bank.
The bonds issued under this provisions shall in no case exceed the
amount of Five Hundred Million Pesos (P500,000,000.00); Provided, that
no single issue shall be made if eighty per centum of the immediately
preceding issue is not yet sold. chanroblesvirtualawlibrary
The bonds shall be issued in such amounts as will be needed at any one
time, taking into account the rate at which said bonds may be absorbed
by the buying public and fund requirements of projects ready for
execution, and considering further a proper balance between productive
and non-productive projects so that inflation shall be held to a
minimum.
Section 10. Sinking Fund. — A sinking fund shall be
established by the Administration in such manner that the total annual
contributions thereto, accrued at such rate of interest as may be
determined by the Secretary of Finance in consultation with the
Monetary Board, shall be sufficient to redeem at maturity the bonds
issued under the provisions of this Decree. 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, charging all
expenses of such investment to said sinking fund, and crediting the
same with the interest on investments and other incomes accruing
thereto.
Section 11. Government Guarantee. — The Republic of
the Philippines hereby guarantees the payment by the Administration of
both the principal and interest on the bonds, debentures, collaterals,
notes or such other obligations incurred by the Administration by
virtue of the provisions of this Decree, and shall pay the said
principal and interest in case the Administration fails to pay the
same. The Secretary of Finance shall pay the amount thereof, to be
appropriated from funds of the National Treasury not otherwise
appropriated, and thereupon, to the extent of the amount so paid, the
Government of the Republic of the Philippines shall succeed to all the
rights of the holders of such bonds, debentures, collaterals, notes or
other obligations, unless the amount be refunded by the Administration
within a reasonable time.
Section 12. Foreign Loans. — The Administration is
hereby authorized to contract loans, credit and indebtedness, in any
convertible foreign currency or capital goods from time to time from
foreign governments or any international financial institutions or fund
sources, the total outstanding amount of which, exclusive of interest
charges, shall not exceed two hundred million US dollars or the
equivalent thereof in other currencies at any one time on such terms
and conditions as may be agreed upon.
The President of the Philippines, by himself, or through the Secretary
of Finance or the Governor of the Central Bank, is hereby authorized to
negotiate and contract with foreign governments or any international
financial institutions, in the name and on behalf of the
Administration, one of several loans, for the purpose of assisting in
the reconstruction, or promoting the development, of the economy of the
Mindanao, Sulu archipelago and Palawan region.
The President of the Philippines, by himself or through the Secretary
of Finance or the Governor of the Central Bank, 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 payment of the loan or loans herein
authorized, as well as the performance of all or any of the obligations
undertaken by the Administration in the territory of the Republic of
the Philippines, pursuant to loan agreements entered into with foreign
governments or any international financial institutions.
In the negotiation and contracting of any loan, credit or indebtedness
under this section, the provision of Section Four of Republic Act
Numbered Four Thousand Eight Hundred Sixty, as provided in Section Five
of Republic Act Numbered Six Thousand One Hundred Forty-Two, as
amended, shall apply.
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 machinery, equipment, materials and
supplies by the Administration, paid from the proceeds of any loan,
credit or indebtedness incurred under this Decree, shall also be exempt
from all taxes, fees, imposts, other charges and restrictions,
including import restrictions imposed by the Republic of the
Philippines, or any of its agencies and political subdivisions. chanroblesvirtualawlibrary
Section 13. Board of Directors. — The powers and
functions of the Administration shall be exercised by a Board of
Directors composed of nine (9) members to be appointed by the President
of the Philippines. The President of the Philippines shall likewise
appoint the Chairman from among the members of the Board. The members
of the Board shall have their respective alternates who shall attend
the meetings of the Board in the absence or incapacity of the regular
members. Such alternates shall have the same rights and privileges as
the regular members, including per diems and allowances.
The members of the Board or their alternates shall receive a per diem
of two hundred fifty pesos for every meeting of the Board attended,
provided that in no case shall such per diems exceed one thousand pesos
per month. They shall likewise be reimbursed by the Administration for
actual expenses for traveling and subsistence allowances incurred in
attending such meetings.
Section 14. Organizational Structure. — The Board of
Directors shall determine the organizational structure of the
Administration and the officers thereof. The Board may reorganize the
same and create or abolish divisions, offices, units, branches or
agencies therein, as the exigencies of the affairs of the
Administration may require.
Section 15. Administrator. — The Administration shall
have an Administrator, to be appointed by the President of the
Philippines, who shall be the Executive Officer of the Administration
on full-time basis. He may have such Deputy Administrator/s as the
Board of Directors may decide, to be appointed by the latter.
The Administrator shall have the following powers, duties and
responsibilities: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 in his judgment are necessary to carry out the purposes
and provisions of this Decree. chanroblesvirtualawlibrary
b) To prepare the budget of the Administration for
consideration by the Board.
c) To execute and administer the policies and
measures approved by the Board.
d) To direct and supervise the operations and
internal administration of the Administration. He may delegate certain
administrative responsibilities to other officers of the Administration
subject to the rules and regulations of the Board.
e) To prepare the plantilla and appoint all employees
of the Administration except the heads of departments and divisions,
whose appointments shall be made by the Board of Directors upon his
recommendation and to remove, dismiss or otherwise discipline for
cause, such employees of the Administration; and
f) To exercise such other powers as may be vested in
him by the Board.
The Administrator, who shall have a term of five (5) years unless
sooner removed for cause, shall receive a compensation of Sixty
Thousand Pesos per annum. He shall reside in the vicinity of the
Administration's principal office and shall not engage in any business,
calling or profession during his term of office.
Section 16. Merit System. — All officials and
employees of the Administration shall be selected and appointed on the
basis of merit and fitness in accordance with a comprehensive and
progressive merit system to be established by the Administration
immediately upon its organization. The recruitment, transfer, promotion
and dismissal of all its personnel, including temporary workers shall
be governed by such merit system. In this connection, the officers and
employees of the Administration shall be exempt from the application of
the Civil Service Law, rules and regulations and from the rules and
regulations of the Wage and Position Classification Office.
Section 17. Abolition of Existing Agencies. — The
Commission on National Integration created under RA 1888, the Mindanao
Development Authority created under RA 3034, the Presidential Task
Force for the Reconstruction and Development of Mindanao created under
Executive Order No. 411 and the Special Program of Assistance for the
Rehabilitation of Evacuees (SPARE) created under Letter of Instruction
No. 30, are hereby abolished. All their appropriations, assets and
liabilities as of the date of this Decree are hereby transferred to the
Administration to be effected within a period of one hundred twenty
(120) days after the constitution of the Board of Directors: Provided,
That all the qualified civil service employees of the Commission on
National Integration, the Mindanao Development Authority, the
Presidential Task Force for the Reconstruction and Development of
Mindanao and the Special Program of Assistance for the Rehabilitation
of Evacuees (SPARE) shall be given preference in filling up open
positions in the Administration.
All outstanding contracts of the Commission on National Integration,
the Mindanao Development Authority, the Presidential Task Force for the
Reconstruction and Development of Mindanao, and the Special Program of
Assistance for the Rehabilitation of Evacuees (SPARE), with other
agencies and/or instrumentalities of the government or those with
private entities are assumed by the Administration except, that in the
case of the Commission on National Integration, all the latter's
functions pertaining to the National Cultural Communities located in
Luzon and Visayas under the provisions of RA 1888, as amended, shall be
undertaken, by the Department of Agrarian Reform, and for this purpose
the Department of Agrarian Reform shall establish a division for the
National Cultural Communities.
Section 18. Gratuity. — An employee or officer of the
Commission on Natural Integration, the Mindanao Development Authority,
the Presidential Task Force for the Reconstruction and Development of
Mindanao, and the Special Program of Assistance for the Rehabilitation
of Evacuees (SPARE), not selected nor appointed by the Administration
or who refuses such appointment shall be paid the money value of his
accumulated vacation and sick leave, and such retirement gratuity as
may be due him under existing retirement laws. Any of the employees and
laborers who do not qualify under any existing retirement law shall be
paid one month salary for every year of service, payable in lump sum.
For this purpose, there is hereby appropriated out of any funds in the
national treasury not otherwise appropriated the sum of Five million
pesos to provide for their separation gratuities, accumulated vacation
and sick leaves and/or retirement, when and if, payable and due to them.
Section 19. Auditor. — The Commission on Audit shall
recommend to the Board a representative who shall be the Auditor of the
Administration and such personnel as may be necessary to assist said
representative in the performance of his duties. The salaries of the
Auditor and his staff shall be fixed, and paid by the Administration.
The Auditing reports shall contain a statement of the resource and
liabilities including earnings and expenses, the amount of paid up
capital stock, surplus, reserves, and profits, as well as losses, bad
debts and such other facts which under auditing rules and regulations,
are considered necessary to accurately describe the financial
conditions and operations of the Administration: Provided, that, before
such reports are made, the Administration shall be given reasonable
opportunity to examine the exemptions and criticisms of the Auditor of
the Administration or the Chairman of the Commission on Audit as the
case may be, to point out, explain or answer any inaccuracies therein,
if any, and to file a statement which shall be appended by the Auditor
of the Administration and Chairman of the Commission on Audit in their
respective reports. chanroblesvirtualawlibrary
Section 20. Tax Exemptions. — The Administration
shall be exempt form payment of all income taxes, franchise taxes,
realty taxes and all kinds of taxes and licenses to the National
Government, its provinces, cities, municipalities, and other government
agencies and instrumentalities: Provided, that its subsidiary
corporations shall be subject to all said taxes five years after their
establishment under a graduated scale as follows: twenty per centum of
all said taxes from the sixth to the seventh year, sixty per centum of
all said taxes from the eight to the tenth year, after its
establishment. Such exemption shall include any tax or fee imposed by
the government on the sale, purchase or transfer of foreign exchange.
All notes, bonds and debentures and other obligations issued by the
Administration shall be exempted from all taxes, both as to principal
and interest, except inheritance and gift taxes.
Section 21. Donations and Gifts. — The Administration
shall have the right to receive donations or bequests which shall be
utilized only for the implementation of the programs and projects of
the Administration. Such donations or bequests shall be exempt from the
payment of gift taxes and the full amount of such donation or bequest
shall be deductible from the gross income of the donor for the year
during which the same is made.
Section 22. Presidential Supervision. — The
Administration shall be under the direct supervision of the President
of the Philippines.
Section 23. Applicability of the Corporation Law. —
The provisions of the Corporation Law as amended, in so far as they are
not inconsistent with this Decree shall be applicable to the operations
of the Administration.
Section 24. Separability Clause. — Should any
provision of the decree be held unconstitutional, no other provisions
thereof shall be affected thereby.
Section 25. Repealing Clause. — Republic Act Nos.
1888 and 3034, both as amended, Executive Order No. 411, and Letter of
Instruction Nos. 30 and 87, are hereby repealed. All other laws,
decrees, acts, orders, executive orders, rules and regulations or parts
thereof inconsistent herewith are hereby likewise repealed or modified
accordingly. chanroblesvirtualawlibrary
Section 26. Effectivity. — This Decree shall take
effect immediately.
Done in the City of Manila,
this 22nd day of April, in the year of Our Lord, nineteen hundred and
seventy-five.
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