REPUBLIC ACT NO. 4186 - AN ACT TO
FURTHER AMEND REPUBLIC ACT NUMBERED TWENTY HUNDRED AND FORTY-SIX,
ENTITLED "AN ACT CREATING A PUBLIC CORPORATION TO BE KNOWN AS THE
COMMUNICATIONS AND ELECTRICITY DEVELOPMENT AUTHORITY, CAVITE"
Section 1. Section two of Republic Act Numbered Twenty
hundred and forty-six, as amended, is further amended by amending
subparagraph (j) thereof and adding thereto subparagraphs (n), (o), (p)
and (q) which shall read as follows:
"(j) When essential to the proper administration of
its corporate affairs or when necessary for the proper transaction of
its business or for carrying out the purposes for which it was
organized, to contract indebtedness, locally or from foreign
governments or financing institutions, and issue bonds, subject to the
approval of the Provincial Governor of Cavite and the Secretary of
Finance. The government of the Republic of the Philippines hereby
guarantees the payment of both the principal and interest of the
indebtedness incurred by the Communications and Electricity Development
Authority (CEDA), Cavite, with foreign governments or financing
institutions. The bonded indebtedness of the Authority, of all classes,
shall not at any time exceed fifty million pesos, and the issue thereof
shall be subject to the conditions set forth in Section five of this
Act;
"(n) When requested in a resolution of a municipality
of an adjoining province, to extend its facilities and services beyond
the zone of jurisdiction mentioned in Section one of this Act;
"(o) To acquire and own equipment and materials
needed in the implementation of its electrification and communications
projects without cost under Republic Act Numbered Seventeen hundred and
eighty-nine;
"(p) To issue and sell shares of stock to its
consumers and local governments within its zone of jurisdiction:
provided, that when such shares of stocks already constitute fifty per
centum of the value of the Authority, the stockholders shall be
entitled to elect the members of the board representing the consumers:
provided, further, that no consumer shall own a share of more than
one-tenth of one per centum of the Authority.
"(q) To enter into agreements with other power
agencies, whether privately or government owned, for the latter to
supply the authority with electric power that it may need and for the
authority to channel to the other power agencies such excess electric
power as it may generate from its plants."
Sec. 2. Paragraphs (a), (b), (c), (d), and (e) of
Section three of the same Act are amended to read as follows:
"(a) Chairman-General Manager. — The Chairman shall
be appointed by the Provincial Governor of Cavite, with the consent of
the Public Service Commission, and may be removed for cause by the
Public Service Commission. He shall, as ex officio General Manager of
the Authority, represent the Authority in all its business matters;
shall submit to the Board an annual report and such partial reports as
may be required by it or he may see fit to render from time to time,
regarding the condition of the business, or of any part of the business
of the Communications and Electricity Development Authority, Cavite,
and shall perform such other executive duties as may be prescribed by
law or may be required of him by resolution of the Board.
"(a-1) Assistant General Managers. — There shall be
two Assistant General Managers. One of them, who shall at least be an
electrical engineer, shall be in-charge of operation and shall be
appointed by the Provincial Governor of Cavite with the consent of the
National Power Board and may be removed for cause by the said National
Power Board. The other, who shall at least be a lawyer-accountant,
shall be in-charge of business management and administration and shall
be appointed by the Provincial Governor of Cavite with the consent of
the Public Service Commission and may be removed for cause by the
Public Service Commission. They shall both be entitled to sit and take
part in the meetings of the Board; but may not vote: provided, however,
that the Board shall designate which of the two Assistant General
Managers shall act as Chairman-General Manager in case of the temporary
disability or absence of the regular incumbent, and in such case, the
Assistant General Manager so chosen shall have the right to vote in the
absence or disability of the Chairman-General Manager.
"(b) Board Member-Engineer. — One member of the Board
shall at least be an electrical engineer, who shall be appointed by the
Provincial Governor of Cavite with the consent of the National Power
Board, and may be removed for cause by the said National Power Board.
He shall perform such other duties as may be required of him by the
Board.
"(c) Board Member-Treasurer. — One member of the
Board shall possess knowledge of business management and finance, who
shall be appointed by the Provincial Governor of Cavite, with the
consent of the Board of Directors of the Development Bank of the
Philippines, and may be removed for cause by the said Board of
Directors. He shall, as ex officio treasurer of the Authority, perform
such duties as may be required of him by the Board or by the General
Manager.
"(d) The two other members of the Board, who shall
represent the consumers, shall be appointed by the Provincial Governor
of Cavite, upon election by the city and municipal mayors of Cavite in
meeting assembled, and shall hold office for five years unless
otherwise removed for cause by the Provincial Governor of Cavite:
provided, that at any time fifty percent of the capital of the
Authority is owned by stockholders and local governments as provided in
Section two, paragraph (p) of this Act, the Board may change the
procedure for selecting the board members mentioned in this paragraph.
"(e) Auditor. — The Provincial Auditor of Cavite, who
is hereby designated as ex officio Auditor of the Communications and
Electricity Development Authority, Cavite, shall be the representative
of the Auditor General: provided, that upon request of the Board of
Directors of the Authority, the Auditor General may appoint a regular
auditor. He shall be the chief of its auditing and accounting
department. He shall audit, examine, and settle all accounts of the
Communications and Electricity Development Authority, Cavite, according
to existing law and regulations, and shall perform such other duties as
the Auditor General or the Board may require of him from time to time."
Sec. 3. Section four of the same Act is amended to
read as follows:
"Sec. 4. First meeting of the Board; quorum; votes
necessary, in general, for adoption of resolutions; secretary of the
Board and his salary, annual reports. — The Chairman of the Board
shall, immediately after the formation thereof, fix a time and place
for the first meeting, at which the Board shall adopt rules of
procedure and fix a time and place for holding regular meetings.
A majority of the members of the Board shall constitute a quorum for
the transaction of business, and three affirmative votes shall be
necessary for the adoption of any resolution or motion, except as
herein otherwise provided.
"The Board shall appoint its secretary and fix his salary.
"The Board shall render annual reports to the Provincial Governor of
Cavite, the Public Service Commission, the National Power Corporation
and the Development Bank of the Philippines."
Sec. 4. Section six of the same Act is amended to
read as follows:
"Sec. 6. Acquisition by the Communications and
Electricity Development Authority, Cavite, of franchises and
serviceable equipment of electric operators. — Upon resolution of the
Board of Directors and approval by the Provincial Governor of Cavite,
the Communications and Electricity Development Authority, Cavite, may
acquire by purchase all serviceable equipment and franchises of
electric operators within the zone of jurisdiction of the Authority.
The chief of the Mechanical-Electrical Division of the Bureau of Public
Works, the chief of the Investigation and Planning Division of the
National Power Corporation, or their authorized representatives, and an
electric engineer to be designated by the Board of Directors of the
Development Bank of the Philippines, shall constitute the appraisal
committee. The acquisition cost to be fixed by the appraisal committee
shall be subject to the approval of the Public Service Commission
sitting en banc."
Sec. 5. Section seven of the same Act is amended
to read as follows:
"Sec. 7. Fixing, charging and collection of rates. —
The Communications and Electricity Development Authority, Cavite, is
hereby authorized to fix, charge and collect rates for all services
rendered in each sector, city, municipality, or group of consumers,
whether to any person, corporation, firm, government body, municipal
entity or religious or charitable institutions, subject to review by
the Public Service Commission. Services to any consumer who fails to
pay his bill for two months shall immediately be disconnected, and
shall so remain disconnected until payment of the amount due is made.
Any officer or employee of the Authority who knowingly neglects or
refuses to take the herein required step against a delinquent consumer
shall be punished by a fine of an amount equivalent to five times the
amount of the uncollected bill, without prejudice to other disciplinary
actions that might be warranted by the offense.
"The Authority shall exist as an independent agency of the Government
under the Public Service Commission for administrative purposes only."
Sec. 6. The same Act is hereby further amended by
inserting between Section s ten and eleven the following new section and
changing the numbers of the subsequent sections accordingly:
"Sec. 11. Damage and penalties. — The penalty of
arresto mayor in its medium and maximum periods shall be imposed upon
any person who shall maliciously damage any integral part of the
electric or communications system of the Communications and Electricity
Development Authority (CEDA), Cavite.
"If the damage shall result in the failure to communicate with the
police, fire department, hospital or similar agencies in times of
emergencies, or in the disruption of other essential public services,
the penalty next higher in degree shall be imposed."
Sec. 7. If any part or section of this Act or of
the Charter of the Communications and Electricity Development Authority
shall be declared unconstitutional, such declaration shall not
invalidate the other provisions thereof.
Sec. 8. This Act shall take effect upon its
approval.
Approved: May 4, 1965
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