AMENDING PRESIDENTIAL DECREE NO. 690, THE REVISED CHARTER OF THE SOUTHERN PHILIPPINES DEVELOPMENT AUTHORITY.

• Number: Presidential Decree No. 1703
• Sections: 31

Preamble

WHEREAS, it is the policy of the Government to foster and

accelerate the balanced growth of the Southern Philippines (Mindanao, Sulum

Basilan and Tawi-Tawi) for the national economic, social and political

stability;

WHEREAS, surveys and studies indicate a pressing need to

accelerate the economic growth and development of the region to make it more

responsive to the national plans and policies within the context of national

solidarity with the leadership, support and total commitment os the

government;

WHEREAS, sustained development of the region will rely

heavily on the capabilities of the people of the area to participate in the

total effort in undertaking integrated development projects under one

authoritative agency;

WHEREAS, the Southern Philippine Development Administration

has been created by Presidential Decree No. 690 to serve as the specifi agency

of the Government which is responsible for the initiation and/or implementation

of development projects in Southern Philippines; and

WHEREAS, the Southern Philippines Development Administration

in order to more effectively and vigorously promote and enhance the development

of Mindanao and Sulu Archipelago, should be restructured and strengtherned;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the

Philippines, by virtue of the powers vested in me by the Constitution, do hereby

order and decree that Presidnetial Decree No. 690, otherwise known as the

Southern Philippines Development Administration Charter, be amended to read as

follows:

Section 1 Short Title.

SECTION 1. Short Title.— This Decree shall be known

as the “Revised Charter of the Southern Philippines Development Authrity.”

Section 2

SEC. 2. Declaration of Policy — It is hereby

declared the policy of the Government to foster and accelerate the balanced

grovth of the Southern Philippines within the context of national plans and

policies, by the activation of mass participation in the processes of

development to be exercised through a unified responsive agency;

democratizationof opportunity for improvement and maximazationof benefits in the

utilization and allocation of all the resources that may be available;

utilization of income and profit for economic growth and development and in

support of the required social innovations.

Section 3 Creation of the Southern Philippines Development Authority.

SEC. 3. Creation of the Southern Philippines Development

Authority. —There is hereby created a body corporate to be known as the

Southern Philippines Development Authority, hereinafter referred to as the

"Authority" which shall be governed by the provisions of the this Decree.

Generally, the Authority shall undertake essentially developmental and

economically viable ventures within its territorial boundaries of operations

which is limited to the geographical coverage of Regions IX, X, XI and XII.

Section 4

SEC. 4. Principal Office; Term — The principal

office of the authority shall be in Davao City. It may, however, establish such

branches, subsidiaries, offices or agencies as it may deem proper and necessary

for the attainment of the objectives of this Decree . The Authority shall have a

term of fifty (50) years from the issuance hereof, renewable for the same period

unless otherwise provided by law.

Section 5 Purposes.

SEC. 5. Purposes. — The Authority shall have the

following purposes and objectives:

To promote the development of Southern Philippines by initiating and/or

undertaking, by itself or otherwise, development and/or business projects of

corporate, economic nature whether in agriculture, power, infrastructure,

energy, public utilities, land development, manufacturing, exploration and/or

utilization of natural resources and other fields or projects;

To make investments in any field as would enhance the economic development

of the region;

Section 6 Powers and Functions of the Authority.

SEC. 6. Powers and Functions of the Authority. —

The Authority shall exercise the following powers and perform functions:

To succeed on its corporate name, with the power of succession.

To sue and be sued in such corporate name.

To adopt, alter and use a corporate seal, which shall be judicially noticed.

To undertake the programs and projects specified or envisioned under Section

5 hereof.

To make contracts of any kind and description to enable it to discharge its

functions and attain the objectives provided in this Decree.

To adopt, amend and repeal its by-laws

To acquire, lease or hold such personal and real property as it deems

necessary or convenient in the transaction of its business and to lease out,

mortgage, sell, alienate or otherwise dispose any such personal and real

property held by it.

To hold, own, possess, lease, convey and mortgage agricultural lands,

To engage or invest in or extend, loans and guarantees to, or enter, into

joint ventures with Filipino and foreign investors as it may deem proper, and

necessary or contributory to the economic development of Southern Philippines.

To exercise the right of eminent domain as may be necessary for the purpose

for which the corporation is created.

Whenever essential to the proper transaction of its business or to carry out

the purposes of its organization, to contract indebtedness end issue bonds.

To charge and collect fees dues or other charges at reasonable rates for

such services and/or facilities that may be provided by the

Authority.

Section 7

SEC. 7. Availabity and Utilization of Public Lands

— Upon request by the Authority and certification by the President, the

Bureau of Lands and Bureau of forestry shall immediately make available and

deliver necessary public lands, for the Authority's priority projects. The

Authority is hereby empowered and authorized to hold, administer, utilize,

encumber or otherwise deal with such land in the pursuit of the said priority

projects.

Section 8

SEC. 8. Capital Stock — The Authority shall have an

authorized capital stock of Five Hundred Million Pesos (P500,000,000.00) the

amount to be fully subscribed and paid by the National Government, to be

appropriated out of any funds in the National Treasury not otherwise

appropriated. The present assets of the Authority may be revalued as of the date

of the effectivity of this Decree and such revaluation may be reflected in the

Authority's capitalization. Existing liabilities of the Authority due the

National Government are hereby converted as capital of the Authority.

Section 9

SEC. 9. Operating Expenses — There is hereby

appropriated the sum of Two Million Pesos out of the funds of the National

Treasury not otherwise appropriated for the operating costs of the authority for

the remaining period of fiscal Year 1980. Thereafter and for subsequent fiscal

years, the amount of Ten Million Pesos shall be provided in the General

Appropriations Act to cover the operating expenses of the Authority.

Section 10

SEC. 10. Powers to Issue Bonds — Whenever the Board

Directors may deem, it necessary for the authority to incur an indebtedness or

to issue bonds to carry out the provisions of this Decree, it shall by

resolution, so declare and state the purpose for which the proposed debt is to

be incurred. It order that such resolution be valid, it shall be passed by the

affirmative vote of at least a simple majority of all the members of such Boad

and approved by the President of the Philippines upon the recommendation of the

Secretary of Finance, after consultation with the National Economic and

Development Authority and the Monetary Board of the Central Bank.

Section 11

SEC. 11. Sinking Fund — A sinking fund shall be

established by the Authority in such manner that the total annual contributions

thereto, accrued at such rate of interest as may be determined by the Minister

of Finance in consultation with the Monetary Board, shall be sufficient to

redeem at maturity the bonds issued under the provisions of this Decree. Said

fund shall be under the custody of the Central Bank of the Philippine which

shall invest the same in such manner as the Monetary Board may approve, charging

all expenses of such investment of said sinking fund, and crediting the same

with the interest on investments and other income accruing thereto„

Section 12

SEC. 12. Government Guarantee — The Republic of the

Philippines hereby guarantees the payment of the Authority of both the principal

and interests on the bonds, debentures, collaterals, notes or such other

obligations incurred by the Authority by virtue of the provisions of this

decree, and shall pay the said principal and interest in case the Authority

fails to pay the same, The Minister of Finance shall pay the amount thereof, to

be appropriated from the funds of the National Treasury not otherwise

appropriated, and thereupon to the extend of the amount so paid, the Government

of the Republic of the Philippines shall succeed to all the rights of the

holders of such bonds, debentures, collaterals, notes or other obligation-unless

the amount be refunded by the Authority within a reasonable time.

Section 13

SEC. 13. Foreign Loans — The Authority is hereby

authorized to contract loans, credit and indebtedness, in any convertible

foreign currency or capital goods from time to time from foreign governments or

any international financial institutions or fund sources, the total outstanding

amount of which, exclusive of interest charges, shall not exceed two hundred

million US Dollars or the equivalent thereof in other currencies at any one time

on such terms and conditions as may be agreed upon.

The President of the Philippines, by himself, or through the Minister of

Finance or the Governor of the Central Bank is hereby further authorized to

guarantee, absolutely and. unconditionally, as primary obligor and not as surety

merely, in the name and on behalf of the Republic of the Philippines, the

payment of any loans herein authorized, as well as the performance of all or any

of the obligations undertaken by the Authority, pursuant to loan agreements

entered into with foreign government or any international financial

institutions.

In the negotiation and contracting of any loan, credit or indebtedness under

this Section, the provision of Section Four of Republic Act Numbered Four

thousand Eight Hundred Sixty, as provided in Section Five of Republic

Act numbered Six Thousand One Hundred Forty-Two, as amended, shall apply.

The loans, credits and indebtedness contracted under this subsection and the

payment of the principal, interest and other charges thereon, as well as the

importation of machinery, equipment, materials and supplies by the authority,

paid from the proceeds of any loan, credit or indebtedness incurred under this

Decree shall also be exempt from all taxes, fees, imposts, other charges and

restrictions imposed by the Republic of the Philippines, or any of its agencies

and political subdivisions.

Section 14

SEC. 14. Board of Directors — The affairs and

business of the Authority shall be directed and its property managed and

preserved, unless provided in this Decree, by a Board of Directors,

hereinafter referred to as the Board, consisting of eleven (11) members who are

as follows:

The Minister of Human Settlements who shall act as the Chairman of the Board

of Directors;

Six (6) regular members to be appointed by the President;

The two Chairman of the Lupong Tagapagpaganap Ng Pook of Regions IX and XII

and the two Chairmen of the Regional Development Councils of Regions X and XI,

as ex-officio members of the Board.

The members of the Board shall receive a par diems of Seven Hundred Fifty

Pesos for every meeting of the Board attended; Provided, that in no

case shall such per diems received by each exceed Two Thousand Two Hundred and

Fifty Pesos per month. They shall likewise be reimbursed by the Authority for

actual expenses for travelling and subsistence allowance incurred in attending

such meetings, subject to the usual auditing and accounting requirements.

Section 15

SEC. 15. Organizational Structure — The Board of

Directors shall determine the organizational structure , staffing pattern and

pay scales of the Authority and the officers and employees thereof. The Board

may reorganize the same and create or abolish divisions, of icons, units,

branches or agencies therein, as the exigencies of the affairs of the authority

may require .

Section 16

SEC. 16. Administration — The Corporation shall

have an Administrator to be appointed by the President of the Philippines who

shall be the Chief Executive Officer of the Authority and ex-Officio

Vice-Chairman of the Board of Directors.

The Administrator shall have the following powers, duties and

responsibilities:

To submit to the Board for consideration policies and measures which, in his

judgment, are necessary to carry out the purposes and provisions of this Decree.

To prepare the budget of the Authority for approval of the Board.

To execute and administer the policies and measures approved by the Board.

To direct and supervise the operations and internal administration of the

Authority. He may delegate certain administrative responsibilities to other

officers of the Authority subject to the rules and regulations of the Board.

To appoint all employees of the Authority except the heads of departments

and divisions whose appointments shall be made by the Board of Directors upon

his recommendations; and to remove, dismiss or otherwise discipline for cause,

such employees in accordance with the standard guidelines for recruitment,

employment and discipline of personnel which shall be enacted by the Board.

To represent the Authority in all dealings with other offices, agencies and

instrumentalities of the Government and with all persons and. entities, public

or private.

Subject to the approval of the Board, to determine the rates of

compensation, allowances, honoraria and such other additional compensation which

the Authority is hereby authorized to grant its officers, technical staff and

consultants, including the necessary detailed personnel;

To exercise such other powers as nay be vested in him by the

Board.

The Administrator shall receive a compensation of Ninety Six Thousand Pesos

per annum.

Section 17

SEC. 17. Other Officers — The Administrator shall

be assisted in carrying out the activities of the Authority by one or more

Deputy Administrators who shall be appointed and removed for cause by the board

upon recommendation of the Authority. Their salaries shall be fixed by the Board

pursuant to Section 15 hereof.

Section 18

SEC. 18. General Counsel — The Government Corporate

Counsel shall be the General Counsel of the Authority who shall exclusively

handle, control and supervise the legal affairs of the authority and its

subsidiaries are hereby authorized to appropriate and pay such amount

representing assessments by the Office of the Government Corporate Counsel for

its operation and maintenance approved by the Office of the President. The

Government Corporate Counsel may designate any of the lawyers in the Office of

the Government Corporate Counsel to assist him in the discharge of his

functions, The Authority may extend such allowances to such lawyers so

designated in such amount as may be approved by the Board.

Section 19

SEC. 19. Merit System — All officials and employees

of the Authority shall be selected and appointed on the basis of merit and

fitness in accordance with the comprehensive and progressive merit system to be

established by the Authority immediately upon its organization in accordance

with Civil Service Law, rules and regulations. The recruitment, transfer,

promotion and dismissal of all its personnel, including temporary workers shall

be governed by such merit system.

Section 20

SEC. 20. Gratuity — An employee or Officer of the

Authority not selected nor appointed by the Authority in case of future

reorganization or who refuses such appointment shall be paid the money value of

his accumulated vacation and sick leave, and such retirement gratuity as may be

due him linger existing retirement laws. Any of the employees who do not qualify

under any existing retirement law may be paid one month salary for every year of

service, payable in lump sum. For this purpose, there is hereby appropriated out

of any funds in the national Treasury not otherwise appropriated the sum of Two

Million Pesos (P2,000,000,00) to provide for their separation gratuities,

accumulated vacation and sick leaves and/or retirement, when and if, payable and

due to them.

Section 21

SEC. 21. Auditor — The Commission on Audit shall

appoint, subject to the approval of the Board, a representative who shall be the

Auditor of the Authority and such personnel as may be necessary to assist said

representative in the performance of his duties. Subsidiaries of the Authority

created and registered with the Securities and Exchange Commission are to be

audited by independent Certified Public Accountant as may be approved, by the

Board.

Section 22

SEC. 22. Subsidiaries — The Authority shall have

the power to form, establish, organize and maintain subsidiary corporation or

corporations. Such subsidiary or subsidiaries shall be formed in accordance with

the Philippine Corporation Law and existing rules and regulations promulgated by

the Securities and Exchange Commission, unless otherwise provided in

this Decree. In all cases, the Authority shall own initially at least fifty-one

(51%) per centum of the capital stock of each subsidiary.

A subsidiary of the Authority shall have a Board of Directors of at least

five (5) members of which at least one director shall be elected from among the

members of the Board of Directors of the Authority. In addition, the Chief of

Executive Officer of the Authority, or his duly designated representative from

the Authority shall be an ex-officio member of the Board of Directors

of each subsidiary established by the Authority.

Such subsidiaries shall be exempt from the coverage of the Civil Service

Decree, rules and regulations, and Office of Compensation and Position

Classification.

Section 23

SEC. 23. Relationship With Regional Development Councils

— To effectively implement its purposes, duties powers and functions, the

Authority shall coordinate with, consult or implement its policies and projects

through the Regional Development Councils in Southern Philippines. In addition

to their present powers, duties and functions, the Regional Development Councils

in the Philippines shall have the following functions:

Submit recommendation to the Authority on certain economic, development,

industrial and corporate projects in and for their respective territorial

jurisdiction;

Assist and/or implement such projects as may be approved for their

respective local governments;

Furnish the Authority such data and information in their respective

territorial jurisdiction which the Authority may deem vital and necessary in the

pursuit of its purposes and objectives; and

Coordinate among themselves in the planning and implementation of their

respective economic development and industrial projects falling under the

Authority.

Section 24

SEC. 24. Donations and Gifts — The Authority shall

have the right to receive donations or bequests which shall be utilized only for

the implementation of the programs and projects of the Authority. Such donations

or bequest shall be exempt from the payment of gift taxes and full amount of

such donations or bequest shall be deductible from the gross income of the donor

for the year during which the same is made.

Section 25

SEC. 25. Administrative Supervision — The Authority

shall be placed under the Ministry of Human Settlements under the direct

supervision of the Minister of Human Settlements.

Section 26

SEC. 26. Applicability of the Corporation Law — The

provisions of the Corporation Law, as amended insofar as they are not

inconsistent with this Decree shall be applicable to the operations of the

Authority.

Section 27

SEC. 27. By Laws and Rules and Regulations — The

Board of Directors shall adopt tits By-Laws promulgate the rules and regulations

to implement the provisions of this Decree which shall take effect upon approval

by the Minister of Human Settlements.

Section 28

SEC. 28. Separability Clause — Should any provision

of the decree be hold unconstitutional, no other provisions thereof shall be

affected thereby.

Section 29

SEC. 29. Repealing Clause — All other laws,

decrees, acts, orders, executive orders, rules and regulations or parts thereof

inconsistent herewith are hereby likewise repealed or modified accordingly.

Section 30

SEC. 30. Effectivity — This Decree shall take

effect immediately.

DONE in the City of Manila, this 26th day of July, in the year of Our Lord,

nineteen hundred and eighty.

(Sgd.) FERDINAND E. MARCOS

President of the

Philippines

By the President:

(Sgd.) JOAQUIN T. VENUS, JR.

Presidential

Assistant