REPUBLIC ACT NO. 7661 - AN ACT
AMENDING REPUBLIC ACT NUMBERED SEVEN THOUSAND ONE HUNDRED AND
EIGHTY-ONE ENTITLED "AN ACT EXTENDING THE LIFE OF THE COMMITTEE ON
PRIVATIZATION AND ASSET PRIVATIZATION TRUST"
Section 1. Section 1 of Republic Act No. 7181 is hereby
amended to read as follows:
"Section 1. The term of the Committee on Privatization
and the Asset Privatization Trust created by Proclamation No. 50
"Proclaiming and Launching a Program for the Expeditious Disposition
and Privatization of Certain Government Corporations and/or the Assets
thereof, and Creating the Committee on Privatization and the Asset
Privatization Trust" is hereby extended from December 31, 1993 to June
30, 1995, Provided, that prior to the beginning of its extended term on
January 1, 1994, the President may appoint new members of the Asset
Privatization Trust.
"During the said extension period, the Committee on Privatization and
the Asset Privatization Trust shall continue to exercise the powers,
duties and responsibilities provided under Proclamation No. 50, as
amended, Provided, that all disposition of any and all assets shall be
primarily for cash: provided, however, that the use of government
financial instruments and sales by installment may be allowed:
provided, further, that the Committee on Privatization shall serve as
the central agency of the privatization program and, accordingly, is
further empowered:
"(a) To designate the disposition entity for all
assets intended for privatization, including all assets and properties
recovered by the Presidential Commission on Good Government (PCGG) and
government idle properties; and
"(b) When necessary, to appoint a representative to
the governing board of a government corporation or corporation with
government transferred assets which has been identified for
privatization who shall, for the purpose of facilitating privatization,
have the powers and privileges of a member of such board, except the
right to vote: provided, that such appointee shall not receive any
additional salary or emolument by reason of such appointment; Provided,
further, that the appointee shall not be eligible for employment in any
capacity whatsoever in the said corporation within two (2) years after
privatization.
"Upon the effectivity of this Act, all receipts from the sale of assets
of the Asset Privatization Trust shall be remitted to the National
Treasury in the following proportion: sixty percent (60%) to the
special account of the Agrarian Reform Fund and forty percent (40%) to
the general fund: provided, however, that within the ten year period of
implementation of the Comprehensive Agrarian Reform Program the total
initial amount of Fifty billion pesos (P50,000,000,000) shall be
satisfied and completed from all sources pursuant to the pertinent
provisions of Republic Act No. 6657 and Executive Order No. 229, dated
July 1987: provided, further, that except for subsidiaries of the
Government Service Insurance System and the Social Security System, all
government-owned or -controlled corporations shall remit to the
National Government at least fifty percent (50%) of the net proceeds
derived from the sale of shares or assets effective October 1, 1992:
provided, finally, that net proceeds shall mean gross proceeds less
related liabilities and selling expenses.
"All assets held by the Asset Privatization Trust, all moneys and other
properties belonging to it, and all its liabilities outstanding upon
the expiration of its term shall revert to and be assumed by the
National Government. The President of the Philippines shall
designate by an executive order the government office or entity to
which the assets and liabilities of the Asset Privatization Trust shall
be transferred.
"All cash advances and all unsettled obligations incurred after the
effectivity of this law by the officers and employees of the Committee
on Privatization or the Asset Privatization Trust as finally determined
by the proper agency or court of law, must be liquidated on or before
June 30, 1995."
Sec. 2. Sec. 2 of the same Act is hereby
amended to read as follows:
"Sec. 2. The following conditions shall be adhered to
in privatization:
"(a) In the disposition of assets in corporate form,
there shall be no undue dislocation of labor unless all benefits as
provided by existing laws or Collective Bargaining Agreements (CBA)
shall be complied with: and provided that the old qualified personnel
shall be given preference in the hiring of new personnel by the new
owners.
"(b) Assets for disposal shall not revert to previous
owners who after final judgment by the proper agency or a court of law,
have been found to have mismanaged or diverted the resources of the
assets which resulted in loss and bankruptcy: provided, that if assets
are to be reverted back to the previous owners, the price shall not be
less than the original transfer price.
"(c) Privatization of government assets classified as
a strategic industry by the National Economic and Development Authority
(NEDA) shall first be approved by the President of the Philippines.
"(d) The disposition of assets shall be governed by
an abiding concern to expand the ownership base of property.
"(e) In the disposition of assets, due regard for
improving competition in business and preventing the creation or
perpetuation of monopolies and cartels shall be made.
"(f) A minimum of ten percent (10%) of the sale of
assets in corporate form shall first be offered to small local
investors, including Filipino overseas workers and, where practicable,
also in the sale of any physical assets.
"(g) Sale of all assets shall be published in at
least three (3) national newspapers of general circulation for three
(3) consecutive days: provided, that the first publication shall occur
at least ten (10) days prior to the scheduled bidding date or date of
negotiation."
Sec. 3. The same Act is hereby amended by
inserting between Section s 2 and 3 thereof a new section to read as
follows:
Sec. 2-A. No court or administrative agency in the
Philippines shall issue any restraining order or writ of preliminary
injunction against the Asset Privatization Trust or the Committee on
Privatization and any of its duly designated disposition entities in
connection with the acquisition, sale or disposition of assets pursuant
to Proclamation No. 50, nor shall order or writ be issued against the
purchaser of assets sold or disposed by the Trust, the Committee, or
the disposition entities to prevent such purchaser from taking
possession of such assets.
In the event that any court or administrative agency issues a permanent
restraining order or writ of injunction against the Trust, the
Committee, and the disposition entities or the purchaser, as the case
may be, secure the immediate lifting of such order or writ by filing
with the judge or clerk of court a bond in an amount equal to that of
the bond posted by the applicant of the order or writ.
Sec. 4. Sec. 6 of the same Act is hereby
amended to read as follows:
"Sec. 6. The provisions of Section s 3, 10, 31, and 34
of Proclamation No. 50, as amended in particular, all other provisions
of the proclamation as well as other laws, orders, promulgations, rules
and regulations or parts thereof, which are inconsistent herewith, are
hereby amended repealed or modified accordingly. All other
provisions of the proclamation which are not otherwise in conflict with
any provision hereof shall remain valid and in full force and
effect.
Sec. 5. Implementing guidelines and regulations
shall be issued by the Committee on Privatization to fully implement
this Act within forty-five (45) days from the date of approval of this
Act.
Sec. 6. This Act shall take effect after its
publication in two (2) newspapers of general circulation.
Approved: December 23,
1993
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