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PRESIDENTIAL DECREE NO. 1406
PRESIDENTIAL DECREE NO. 1406 -
FURTHER AMENDING REPUBLIC ACT 6243, ENTITLED "AN ACT CREATING THE
METROPOLITAN WATERWORKS AND SEWERAGE AND FOR OTHER PURPOSES," AS AMENDED
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WHEREAS,
under Presidential Decree No. 1269, the territorial jurisdiction of the
Metropolitan Waterworks and Sewerage System has been extended to
Lungsod Silangan, Muntinlupa, and other areas that may come within the
development path of the expanding Metropolitan Manila; chanroblesvirtualawlibrary
WHEREAS, the continuous growth in terms of population, economic
activity, and geographical extent of Metropolitan Manila demands a
massive program for the expansion and improvement of its public water
supply and sewerage services;chanroblesvirtualawlibrary
WHEREAS, there is a consequent need for the Metropolitan Waterworks and
Sewerage System to enhance its focus on the premier metropolis of the
country and to expand its financial base.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do hereby
amend certain sections of the Revised Charter of the Metropolitan
Waterworks and Sewerage Authority under Republic Act No. 6234, as
amended by Presidential Decrees No. 425 and 1269, and do hereby decree
as part of the law of the land the following:cralaw:red
Section 1. Section 2, paragraphs (c) and (d) of R.A.
No. 6234 as amended, are hereby amended to read as follows: chanroblesvirtualawlibrary
"(c) The System shall own and/or have jurisdiction,
supervision and control over all waterworks and sewerage in the
territory comprising the cities of Manila, Pasay, Quezon, Cavite and
Caloocan, the municipalities of Las Piñas, Makati, Malabon,
Mandaluyong, Marikina, Navotas, Parañaque, Pasig, Pateros, San
Juan , Taguig, Valenzuela, all of Metropolitan Manila, the
municipalities of Antipolo, San Mateo, Taytay, Cainta, Montalban, all
of Rizal Province, and the municipalities of Bacoor, Imus, Kawit,
Noveleta, Rosario, all of Cavite Province. The System shall also own
and/or have jurisdiction, supervision and control of all waterworks and
sewerage systems in Lungsod Silangan, Muntinlupa and, subject to the
approval of the President, other areas that may come within the
development path of the expanding Metropolitan Manila Area, which areas
the Board of Metropolitan Waterworks and Sewerage System may, from time
to time, determine and declare as contiguous to its service area and
requiring immediate attention by the System, under such terms and
conditions as may be agreed upon by the parties concerned. All other
waterworks and sewerage systems now under the supervision and control
of the Metropolitan Waterworks and Sewerage System (MWSS), are hereby
returned, ceded, transferred and turned over to the provinces, cities
and municipalities for their supervision, control and administration,
until such time that they qualify within the program of development
under the local Water Utilities Administration (LWUA). The transfer and
turn-over to the local governments concerned shall be completed within
the period of ninety (90) days from the promulgation of this decree.
(d) Any provision of law to the contrary
notwithstanding, all existing waterworks systems or any system that may
hereafter be established by provinces, cities and municipalities shall
have priority in the use and supervision over all sources of water
supply for domestic purposes in their respective jurisdictions, and any
water right now being enjoyed by the Metropolitan Waterworks and
Sewerage System (MWSS) in such provinces, cities and municipalities
shall likewise be turned over to the said provinces, cities and
municipalities concerned."
Section 2. Section 2-A of the same law is hereby
amended to read as follows:cralaw:red
"Sec. 2-A. Capital Stock of the System. — The System
is hereby authorized a capital stock of Three Billion Pesos
(P3,000,000,000) divided into thirty million shares at a par value of
One Hundred Pesos (P100.00) each, which shares shall not be
transferred, negotiated, pledged, mortgaged or otherwise given security
for the payment of any obligation. The sum of Four Hundred Ninety-One
Million, Six Hundred Twelve Thousand, Six Hundred Sixty Seven Pesos and
Ten Centavos (P491,612,667.10) which as of June 30, 1977 has already
been subscribed and fully paid for by the Government of the Republic of
the Philippines in accordance with the provisions of Presidential
Decree No. 425, shall be the initial paid-in capital of the authorized
capital stock provided herein.
The remaining Two Billion Five Hundred Eight Million, Three Hundred
Eighty-Seven Thousand, Three Hundred Thirty-Two Pesos and Ninety
Centavos (P2,508,387,332.90) shall be subscribed by the Government of
the Republic of the Philippines and paid as follows:cralaw:red
(a) The sum of Fifty Million Eight Hundred
Twenty-Four Thousand Pesos (P50,824,000.00) representing the remaining
unpaid amount of the System to the National Treasury for advances for
the payment of amortization and interest of the System's loan to the
World Bank, shall be additional paid-in subscription of the Government
of the Republic of the Philippines for five hundred eight thousand, two
hundred forty shares of stock of said capital stock. chanroblesvirtualawlibrary
(b) Whatever balance remaining of said subscription
shall be paid from a continuing appropriation which is hereby made out
of any funds in the National Treasury not otherwise appropriated be
they collections from any or all taxes accruing to the General Fund or
proceeds from loans, the issuance of bonds, treasury bills or notes
which are hereby authorized to be incurred or to be issued by the
Secretary of Finance for the purpose, such annual appropriation to be
programmed and released in accordance with pertinent budget laws:
Provided, That, this continuing appropriation shall remain in force
until the balance of the unpaid subscription of the government to the
capital stock of the System have been paid in full."
Section 3. Section 9 (a), paragraph 6 of the same law
is hereby amended to read as follows:cralaw:red
"The total principal indebtedness of the System under this subsection,
exclusive of interest, shall not exceed Three Billion Pesos
(P3,000,000,000.00), at any given time."
Section 4. Section 9 (a), paragraph 6 of the same law
is hereby amended to read as follows:cralaw:red
"Sec. 9-A. Construction, Repair, Works Contracts for
Services and Furnishing of Supplies, Materials and Equipment Awarded
Upon Public Bidding, Exceptions. — All works of construction or repair
of the System as well as contracts for services and furnishing of
supplies, materials and equipment shall be awarded by the General
Manager in accordance with the ceilings and rules imposed by the Board,
to the responsible bidder who made the lowest and meet advantageous
bid: Provided, however, that these do not conflict with existing
executive orders and/or presidential issuances on awards of government
contracts: Provided, further, That, any repaid, construction or other
works of an emergency nature may be authorized by the Board to be
undertaken by administration or by contract, and; Provided, finally,
That, any single work of construction or a repair, involving an
estimated total cost of Five Hundred Thousand Pesos (P500,000.00) 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 5. Section 9 (b), first paragraph of the same
law is hereby amended to read as follows:cralaw:red
"(b) Foreign Loans. — The System is hereby authorized
contract loans and credit, in any convertible foreign currency or
capital goods and to incur indebtedness from time to time from foreign
government, or any international financial institutions or fund sources
or to issue bonds, the total outstanding amount of which, exclusive of
interest, shall not exceeds Six Hundred Million United States Dollars
(US$ 600M) 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 documents
specifying such terms and conditions."
Section 6. Section 16 of the same law is hereby
repealed and replaced by a new provision which shall read as
follows: chanroblesvirtualawlibrary
"Sec. 16. Gratuity. — Any personnel of the waterworks
systems transferred or turned over to the provinces, cities and
municipalities are hereby transferred to and absorbed by the said
provinces, cities and municipalities concerned but any personnel of
district offices who are presently in-charge of these systems who
cannot be absorbed by the local governments concerned and those who
refuse appointment therein shall be paid the money value of the
accumulated vacation sick leaves, and such retirement gratuities as may
be due them under existing retirement laws. Any of the said personnel
who does not qualify under existing retirement law shall be paid one
(1) month salary for every years of service payable in lump sum. for
this purpose, there is hereby appropriated out of any fund in the
National Treasury not otherwise appropriated the sum of Three Million
Pesos (P3,000,000.00) to provide for their separation gratuities,
accumulated vacation and sick leaves and/or retirement, when and if,
payable and due them. Other personnel under the central organization of
the System whose salaries are presently being charged against national
government appropriations are to be transferred to and absorbed by the
System."
Section 7. Section 17 is hereby repealed and replaced
by a new provision which shall read as follows: chanroblesvirtualawlibrary
"Sec. 17. Transfer of Local Systems. — The return,
cession, transfer and turnover to the local governments concerned of
the Local Waterworks and Sewerage Systems under Section 1 of this
Decree shall include all personnel of the systems, including those of
the district offices who may be absorbed by the local governments
concerned, records, properties, equipments, assets, choses in action,
obligations and liabilities, including all obligations to their
employees, excepting, however, obligations accruing to and due the
national government and other government agencies, instrumentalities
and corporations, are hereby ceded, transferred and conveyed to their
respective provinces, cities, and municipalities; Provided, That for
the payment of obligations accruing to the national government and
other government agencies, instrumentalities and corporations, there is
hereby appropriated out of any funds in the National Treasury not
otherwise appropriated the sum of Thirty-Three Million, Five Hundred
Thousand Pesos (P33,500,000.00); Provided, further, that in case of
disagreement between the MWSS and the local governments concerned on
the liabilities and obligations being transferred by the System to the
local governments, the same shall be passed upon and decided by an
arbitration committee to be composed of a representative of the local
government and a representative of the System, and a third member from
the Commission on Audit who shall act as Chairman. The decision of such
committee shall be final. chanroblesvirtualawlibrary
"All waterworks systems shall be ceded, transferred and conveyed to the
provinces, cities and municipalities which they serve; Provided,
however, That, where the system serves two or more municipalities, the
same shall be ceded, transferred and conveyed to the provincial
government; Provided, further, That, where the system serves a city or
a city or municipalities, the system shall be transferred, ceded and
conveyed to the city."
Section 8. All provisions of existing laws, decrees,
executive and administrative orders or parts thereof in conflict with
this Decree are hereby modified and/or repealed accordingly.
Section 9. This Decree shall take effect immediately.
DONE in the City of Manila,
this 7th day of June, in the year of Our Lord, nineteen hundred and
seventy-eight.
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