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REPUBLIC ACT NO. 3856 - AN ACT
CREATING THE PANAY DEVELOPMENT AUTHORITY, PRESCRIBING ITS POWERS,
FUNCTIONS AND DUTIES, AUTHORIZING THE APPROPRIATION OF FUNDS THEREFOR,
AND FOR OTHER PURPOSES |
CHAPTER
I Section 1. Declaration of Policy. — It is hereby declared to be the policy of Congress to adopt accelerated measures and to utilize to the maximum local resources and talent to bolster agro-industrial development through the leadership, guidance and support of the government. To this end, cognizant of the necessity of grouping together regional areas having similar economic and geographical basis, the provinces grouped together as one region comprising the Island of Panay, hereinafter referred to as the region, shall create a Regional Development Authority for the purpose of conducting economic surveys to determine its agricultural and industrial potentialities and mapping out and implementing plans and programs to effect the coordinated and integrated efforts of various government agencies as well as private entities engaged in activities conducive to rapid regional agro-industrial development; of providing active leadership in the establishment of pioneering industrial, agricultural or similar enterprises and lending financial, managerial and/or technical assistance to existing or prospective ventures within the region. Sec. 2. Creation and Organization. — There is hereby created a body corporate to be known as the Panay Development Authority, hereinafter referred to as Authority, which shall be organized within sixty days after the approval of this Act. The Authority shall exercise such powers as are expressly granted under this Act and those necessarily implied therein and shall perform such functions as are necessary for carrying out its objectives and purposes. Sec. 3. Incorporation. — The incorporation shall be deemed effected upon the first meeting of the Board of Directors and such directors as having attended such meeting shall be deemed the incorporators. Sec. 4. Principal Office. — The Authority shall have
its principal office at a convenient place within the region which
shall be chosen by the Chairman-General Manager upon recommendation of
the Board of Directors. Branch offices may also be maintained in such
other places as are necessary for the efficient conduct of its
business. CHAPTER
II Sec. 5. The Authority shall have the following purposes and objectives: (a)
To conduct a comprehensive and detailed survey in
the specific areas comprising the region of the economic, social and
cultural conditions, the physical and natural resources, the industrial
and agricultural potentialities, and on the basis thereof, to formulate
an integrated, practical, feasible, workable and detailed plan and
program within the context of the national plans and policies designed
to hasten the agro-industrial development of the region; CHAPTER
III Sec. 6. Powers and Functions. — The Authority shall have the following powers and functions: (a)
To succeed in its corporate name; CHAPTER
IV Sec. 7. Capitalization. — The authority shall have an authorized capital of one hundred and fifty million pesos which shall be fully subscribed and paid up by the Republic of the Philippines and authorized to be appropriated out of the general fund in the National Treasury not otherwise appropriated, and from the proceeds of loans, bond issues, and other sources of income of the National Government and included in the General Appropriations Act every year for a period of ten years from the approval of this Act and shall be paid out according to the schedule as follows: The
sum of thirty million pesos upon the approval of this Act; Sec. 8. Operating Expenses. — Upon its organization, the Board of Directors of the Authority may appropriate out of the Authority's paid in capital for its operating and overhead expenses for the fiscal year a sum of not exceeding one million pesos and for the succeeding years the Authority may appropriate for such overhead and operating expenses an amount not exceeding one million pesos for each fiscal year: Provided, That the appropriation for such overhead or operating expenses may be made to exceed one million pesos upon resolution of the Board of Directors and approved by the President of the Philippines: And provided, further, That the unexpended balance of the appropriation for such expense shall, at the end of the fiscal year automatically revert to the said revolving fund including whatever earnings the Authority may have. Sec. 9. Exemption from Tax. — The Authority shall be exempted from all taxes of both local and national origin in all activities and operations incidental to the exercise of its powers and in the performance of its functions, including taxes imposed on the sale, purchase or transfer of foreign exchange, bonds, debentures, securities or other evidences of indebtedness both as to principal and interest: Provided, That its subsidiary corporations shall be subject to all said taxes after their establishment under a graduated scale as follows: twenty per centum of all said taxes during the sixth year, forty per centum of all said taxes during the seventh year, sixty per centum of all said taxes during the eight year, eighty per centum of all said taxes during the ninth year and one hundred per centum of all said taxes during the tenth year, after said establishment. Sec. 10. Sinking Fund. — There shall be established a
sinking fund in such a manner that the 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 this Act. The Central Bank
of the Philippines shall keep said fund in custody and shall invest the
same in such manner as the Monetary Board may approve, charging all
expenses of such investment and crediting interest or other earnings
thereon and other income belonging to the said sinking fund. Sec. 11. Guarantee of payment by the Republic of the
Philippines. — The Republic of the Philippines hereby guarantees the
payment by the Authority of both the principal and interest of bonds,
debentures, notes and other certificates of indebtedness or obligations
issued by the Authority under this Act. In the case the Authority shall
be unable to pay the bonds, debentures and such other obligations, the
Secretary of Finance shall pay the amount thereof out of the funds
hereby appropriated for this purpose in the National Treasury not
otherwise appropriated, and thereupon, the Republic of the Philippines
shall succeed to all the holders of such bonds, debentures, notes or
such other obligations hereinbefore mentioned, to the extent of the
amounts so paid, unless the Authority, within a reasonable time makes a
refund of the amount paid by the Republic of the Philippines. CHAPTER
V Sec. 12. Board of Directors — Composition. — The corporate powers of the Authority shall be vested in and exercised by a Board of Directors herein referred to as the Board, which shall be composed of five members including its chairman, appointed by the President of the Philippines with the consent of the Commission on Appointments. The governors of the provinces Aklan, Capiz, Antique and Iloilo shall be members ex-officio of the Board and as such take part in all its meetings, deliberations and discussions but they shall not have the right to vote, except as hereinafter provided. Sec. 13. Chairman-General Manager. — The President of the Philippines shall designate the Chairman of the Board, who shall at the same time be the General Manager of the Authority, notwithstanding any provision of law to the contrary. Sec. 14. Acting Chairman-General Manager. — In case of temporary vacancy in the position of the Chairman-General Manager caused by absence or temporary incapacity, the Chairman-General Manager shall designate a person of his confidence — not necessarily a member of the Board — to act as acting Chairman-General Manager during his temporary absence or incapacity which shall not be more than forty-five days at any one time nor more than one hundred and twenty days for the any one year period. Sec. 15. Appointment and Tenure. — The members of the
Board of Directors first appointed shall serve for the period
designated by the President of the Philippines in their respective
appointments and the terms of office shall expire as follows: Sec. 16. Quorum. — Three members of the Board present at a meeting shall constitute a quorum to transact the business of the Board. Vacancies in the Board shall be filled as provided in Section fifteen of this act, votings shall be by a majority of actual membership. Sec. 17. Qualifications of Directors. — No person
shall be appointed member of the Board of Directors unless he be a
natural born citizen of the Philippines, familiar with the social and
economic conditions obtaining in the Region, a permanent resident
therein and possessed with sufficient experience and background in the
management of agricultural, industrial or similar enterprises or public
administration. Sec. 18. Prohibition against "conflict of interest." — No member of the Board shall, during his term of office, be financially interested directly or indirectly in any contract with the Authority or in any special privilege granted by the Authority nor shall any such member engage in any business which may be affected by or related to the exercise of the Authority of its functions and powers.t Sec. 19. Suspension or Removal. — A member of the Board may be suspended or removed by the President of the Philippines only for cause. Sec. 20. Board Meetings. — The Board shall hold its regular meetings at the Principal Office of the Authority once every month, the specific day to be fixed by the Board. Special meetings shall be held as frequently as the Board or the Chairman General-Manager may deem necessary, Provided, That there shall not be more than four such special meetings in any one month. Sec. 21. Per Diems. — The Authority shall provide the members of the Board, except the Chairman-General Manager, a per diem of one hundred pesos for every regular or special meeting attended, and for the reimbursement of traveling and subsistence expenses incurred by them in the performance of their duties: Provided, That in no case will the total amount received by each exceed the sum of eight hundred pesos for any one month. Sec. 22. Powers of the Chairman-General Manager. —
The Chairman-General Manager shall be the Chief Executive of the
Authority and as such shall exercise and perform the following powers
and duties: (a)
To prepare the agenda for the meetings of the
Board and to submit for its consideration and approval the policies and
measures which he deems necessary and proper to carry out the purposes
and provisions of this Act; Sec. 24. Residence requirement. — The Chairman-General Manager shall be required to reside in the vicinity of the principal office of the Authority. Sec. 25. Key officials. — The Chairman-General
Manager shall supervise the activities of the Authority through the
following administrative officials who shall be directly responsible to
him: (a)
An Assistant General Manager, who shall head the
Department of Research and Planning — To conduct surveys, make
researches and compile statistics and map out plans and programs; Sec. 26. Appointment of Officials. — Department heads and division chiefs shall be appointed by the Chairman-General Manager upon recommendation of the Board. Officials and employees below the rank of division chief shall be appointed by the Chairman-General Manager upon written recommendation of the department head concerned, to positions in the approved budget. Positions in the Authority shall be exempt from the Civil Service Law and the Wage and Position Classification Office. Sec. 27. Promotion of Officials. — Promotion of officials, employees and other agents of the Authority shall be made on the basis of merit, capacity, efficiency, and fitness in accordance with the system to be devised by the Authority upon organization. Sec. 28. Scale of wages. — All contracts entered into
by the Authority which require the employment of persons shall be
required to contain a provision for the payment of the minimum wage
fixed by law or the current wage for work of similar nature prevailing
in the vicinity where the work is to be done, whichever is the higher,
to the persons so employed. Disputes as to the prevailing rates of
wages for a particular work in a particular vicinity shall be referred
to the Secretary of Labor for determination. CHAPTER
VI Sec. 29. Formation of plans. — The Authority shall, upon its organization, embark upon the early and expeditious formulation of its plans within the context of the guidelines set forth by the National Economic Council and shall within six months submit and report to the President of the Philippines a broad outline of its plans and programs for approval. Details of the approved plans and programs outline shall be submitted and reported for approval to the President six months after its organization but not later than one year. Sec. 30. Implementation of plan and program. — Upon approval of the plan and program outline referred to in the next preceding section the Authority, upon direction of the President, shall immediately lay the necessary groundwork for its implementation. The Authority shall immediately proceed with the execution of its projects in the implementation of its plans and programs upon approval by the President of the details of the said plans and programs. Sec. 31. Supervision by the President. — The Authority shall operate as an independent corporation subject only to the supervision by the President of the Republic of the Philippines, any provision of law to the contrary notwithstanding. Sec. 32. Bidding for Supplies and Services — Exceptions. — All purchases of supplies or contracts for services, except for personal services, entered into the Authority, shall be done only after the proper bidding is held: Provided, That the bidding shall not be required when (1) an emergency as certified to by the General Manager, requires immediate delivery of the supplies or performance of the service, or (2) the aggregate amount involved in any purchase of supplies or procurement of services does not exceed the amount of ten thousand pesos for any one month: Provided, lastly, That in comparing bids and in making awards, the Authority shall consider such factors as the cost and relative quality and adaptability of supplies or services, the bidder's financial responsibility, skill, experience, integrity, and ability to furnish repairs and maintenance services; the time of delivery or performance offered; and the bidder's compliance with the specifications desired. Sec. 33. Auditing. — The Auditor General shall be
ex-officio Auditor in charge of the Auditing Office of the Authority.
He shall appoint a representative, who shall by the Auditor thereof.
The Auditor General shall, upon recommendation of the Auditor of the
Authority, appoint or remove personnel of the said Auditing Office in
accordance with the Authority's merit system. The operating expenses of
the officials and employees thereof shall be fixed by the Board and
paid by the Authority. Such representative shall render a semestral
report on the financial condition and operations of the Authority to
the Auditor General and the Board. The Auditor General shall submit to
the President and the Congress an annual report covering the financial
condition and operations of the Authority. Sec. 34. Separability Clause. — The provisions of this Act are hereby declared to be separable. A declaration or unconstitutionality of any one or more of its provisions shall not affect the validity of the proper provisions. Sec. 35. Law Repealed. — All Acts, Charters, Executive Orders, Administrative Orders, rules and regulations, or parts thereof in conflict with this Act are hereby repealed or modified accordingly. Sec. 36. Effectivity. — This Act shall take effect
upon its approval. Approved: June 1, 1964 |
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