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This page features the full text of
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"
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:chanroblesvirtualawlibrary
"Sec.
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.
chan
robles virtual law library"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:chanroblesvirtualawlibrary
"(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.chan
robles virtual law library
"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. Section 2 of the same Act
is hereby amended to read as follows:chanroblesvirtualawlibrary
"Sec.
2. The following conditions shall
be adhered to in privatization:chanroblesvirtualawlibrary "(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."chan
robles virtual law library
Sec.
3. The same Act is hereby amended
by inserting between Sections 2 and 3 thereof a new section to read as
follows:chanroblesvirtualawlibrary
"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. Section 6 of the same Act
is hereby amended to read as follows:chanroblesvirtualawlibrary
"Sec.
6. The provisions of Sections
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.chan
robles virtual law library
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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