NEA Authorities, Powers and Directives.
SEC. 4. NEA Authorities, Powers and Directives. —
The NEA is hereby authorized, empowered and directed to promote, encourage and
assist public service entities, particularly cooperatives, to the end of
achieving the objective of making service available throughout the nation on an
area coverage basis as rapidly as possible; and for such purpose it is hereby,
without limiting the generality of the foregoing and in addition to other
authorizations, powers and directives established by this Decree, specifically
authorized, empowered and directed:
(a) To have a continuous succession under its corporate name until otherwise
provided by law;
(b) To prescribe and thereafter to amend and repeal its by-laws not
inconsistent with this Decree;
(c) To adopt and use a seal and alter it at its pleasure;
(d) To sue and be sued in any court: Provided, That NEA shall,
unless it consents otherwise, be immune to suits for acts ex delicti;
(e) To make contract of every name and nature and to execute all instruments
necessary or convenient for the carrying on of its business;
(f) To make loans to public service entities, with preference to
cooperatives, for the construction or acquisition, operation and maintenance of
generation, transmission and distribution facilities and all related properties,
equipment, machinery, fixtures, and materials for the purpose of supplying area
coverage service, and thereafter to make loans for the restoration, improvement
or enlargement of such facilities: Provided, That the public service
entity applying for a loan, if neither a cooperative nor a local government,
must be in operation at the time of application;
(g) To promote, encourage and assist public service entities and government
agencies and corporations having related functions and purposes, with preference
to cooperatives, in planning, developing, coordinating, establishing, operating,
maintaining, repairing and renovating facilities and systems to supply area
coverage service, and for such purpose to furnish, to the extent possible and
without charge therefor, technical and professional assistance and guidance,
information, data and the results of any investigation, study, or report
conducted or made by the NEA;
(h) To approve or disapprove any loan from other lenders to public service
entities which at the time are borrowers from NEA under sub-paragraphs (f) or
(i) of this Section, and thereafter, pursuant to Section 10 (b) to disapprove
advances of loans from other lenders;
(i) To make loans for the purpose of financing the wiring of premises of
persons served or to be served as a result of loans made under sub-paragraph (f)
of this Section, and for the acquisition and installation by such persons of
electrically-powered appliances, equipment, fixtures and machinery of all kinds
for residential, recreational, commercial, agricultural and industrial uses,
such loans to be made directly (1) to public service entities which have
received loans under sub-paragraph (f) of this Section, which entities shall in
turn relend such funds to persons served or to be served by them, or (2) to any
person served or to be served by public service entities which have received
loans under sub-paragraph (f) of this Section: Provided, That at no
time shall the total loans made under this sub-paragraph (i) to a public service
entity and/or to persons served or to be served by such entity exceed
twenty-five (25%) per centum of the outstanding loans to such entity made under
sub-paragraph (f) of this Section;
(j) To so cooperate, coordinate and exchange such information, studies and
reports with, and to seek such cooperation and coordination from, other
departments, agencies and instrumentalities of the National Government,
including the NPC, as will most effectively conduce to the achievement of the
purposes of this Decree;
(k) To borrow funds from any source, private or Government, foreign or
domestic, and, not inconsistently with Section 8, to issue bonds or other
evidences of indebtedness therefor and to secure the lenders thereof by
pledging, sharing or subordinating one or more of the NEA's own loan
securities;
(l) To receive from cooperatives all articles of incorporation, amendments,
consolidation, merger, conversion and dissolution, and all certificates of
changes in the location of principal offices and of elections to dissolve, and,
upon determining that such are in conformity with this Decree, to certify the
same, to file them in the records of the NEA, and to maintain a registry of such
filings the provisions of Act No. 1459, as amended, to the contrary
notwithstanding;
(m) To acquire, by purchase or otherwise (including the right of eminent
domain, which is hereby granted to the NEA, to be exercised in the manner
provided by law for the institution and completion of expropriation
proceedings by the National and local governments), real and physical
properties, together with all appurtenant rights, easements, licenses and
privileges, whether or not the same be already devoted to the public use of
generating, transmitting or distributing electric power and energy, upon NEA's
determination that such acquisition is necessary to accomplish the purposes of
this Decree and, if such properties be already devoted to the public use
described in the foregoing, that such use will be better served and accomplished
by such acquisition: Provided, That the power herein granted shall be
exercised by the NEA solely as agent for and on behalf of one or more public
service entities which shall timely receive, own and utilize or replace such
properties for the purpose of furnishing adequate and dependable service on an
area coverage basis, which entity or entities shall then be, or in connection
with the acquisition shall become, borrowers from the NEA under sub-paragraph
(f) of this Section: And provided, further, That the costs of such
acquisition, including the cost of any eminent domain proceedings, shall be
borne, either directly or by reimbursement to the NEA, whichever the NEA shall
elect, by the public service entity or entities on whose behalf the acquisition
is undertaken and otherwise to acquire, improve, hold, transfer, sell, lease,
rent, mortgage, encumber, and otherwise dispose of property incident to, or
necessary, convenient or proper to carry out, the purposes for which NEA was
created;
(n) At least annually, not later than June 30th, to report to the President
and when the same comes into existence, the Prime Minister and the National
Assembly, on the status of electrification of the Philippines, including a
comprehensive reporting of loans made, loan funds advanced, loans secured from
other sources and the advances thereof, the names and locations of the
borrowers, the number of services contemplated by such loans, the number
actually receiving service as a result of such loans, the number of electrified
and the remaining number of unelectrified households throughout the Nation, the
amounts of usage by consumers, loans and other activities programmed for the
ensuing year, and all such other information and data as will accurately reveal
the progress being made toward the achievement of the purposes of this Decree;
and to publish such report for dissemination to and use by other interested
departments, agencies and instrumentalities of the National Government and by
borrowers under this Decree; and
(o) To exercise such powers and do such things as may he necessary to carry
out the business and purposes for which the NEA was established, or which from
time to time may be declared by the Board of Administrators to be necessary,
useful, incidental or auxiliary to accomplish such purposes; and, generally, to
exercise all the powers of a corporation under the Corporation Law insofar as
they are not inconsistent with the provisions of this Decree.
SEC. 5. National Electrification Administration; Board
of Administrators; Administrator, (a) For the purpose of administering the
provisions of this Decree, there is hereby established a public corporation to
be known as the National Electrification Administration. All of the powers of
the Corporation shall be vested in and exercised by a Board of Administrators,
which shall be composed of a Chairman and four (4) members, one of whom shall be
the Administrator as ex officio member. The Chairman and the three other members
shall be appointed by the President of the Philippines to serve for a term of
six years: Provided, That the terms of the first appointees shall be
six years for the Chairman and one member and three years for the two other
members, respectively, and that the term of the ex officio member shall be
co-terminous with his term as the Administrator. All vacancies except through
expiration of the terms, shall be Oiled for the unexpired term only. The
Chairman and every member of the Board of Administrators shall be entitled to a
per diem of not more than three hundred pesos for each meeting actually attended
by them: Provided, That the total of such per diem shall not exceed one
thousand five hundred pesos per month per member.
The Board of Administrators shall meet regularly at least twice a month and
as often as the exigencies of the agency's affairs demand.
The presence of at least three members shall constitute a quorum which shall
be necessary for the transaction of any business. The affirmative vote of a
majority of the members present shall he necessary for the approval of any
resolution, decision or order, except when a greater vote is required as
sometimes hereinafter provided. In the absence of the Chairman at ;i
Board meeting duly called, the Administrator as ex officio member shall
preside.
The Board shall, without limiting the generality of the foregoing, have the
following specific powers and duties.
(1) To implement the provisions and purposes of this Decree;
(2) To formulate and adopt policies and plans, and to promulgate rules and
regulations, for the management, operation and conduct of the business of the
NEA;
(3) To adopt and, as may be necessary from time to time, to amend annual
budgets for the NEA's borrowing and lending programs and for the agency's
administration: Provided, That copies of such budgets shall be
submitted to the President or the appropriate committee of and as determined by
National Assembly, when it comes into existence, within fifteen (15) days from
the transmission thereof to the NEDA: And, provided further, That the
administrative budget and any amendments thereto shall be subject to the
approval of NEDA;
(4) To fix the compensation of the Administrator and of the Deputy
Administrators, subject to the approval of the President of the Philippines;
and
(5) To establish policies and guidelines for employment on the basis of
merit, technical competence and moral character and, upon the recommendation of
the Administrator to organize or reorganize NEA's staffing structure, to fix the
salaries of personnel and to define their powers and duties.
(b) The management of the NEA shall be vested in the Administrator, who shall
be a person of known integrity, competence and experience in technical and
executive fields related to the purposes of this Decree. He shall be appointed
by the President of the Philippines and shall not be removed except for
cause.
The Administrator shall have the following powers and duties:
(1) To execute and administer the policies, plans and programs, and the rules
and regulations, approved or promulgated by the Board of Administrators;
(2) To submit for the consideration of the Board of Administrators such
policies, plans and programs as he deems necessary to carry out the provisions
and purposes of this Decree;
(3) To direct and supervise the operation and internal administration of the
NEA and, for this purpose, to delegate some or any of his powers and duties to
subordinate officials of the NEA;
(4) Subject to the guidelines and policies established by the Board of
Administrators, to appoint and fix the number and compensation of subordinate
officials and employees of the NEA: Provided, however, That the
provisions of the Civil Service Law and the Wage and Position Classification Law
shall not apply to the appointment and compensation of any such subordinate
official or employee;
(5) For cause, to remove, suspend, or otherwise discipline any subordinate
official or employee;
(6) To prepare an annual report on the activities of the NEA at the close of
each fiscal year and to submit a copy thereof to the President of the
Philippines and when it comes into existence, the Prime Minister and the
appropriate committee of, and as determined by, the National Assembly; and
(7) To exercise such other powers and duties as may be vested in him by the
Board of Administrators.
In case of absence or disability of the Administrator, he shall designate any
of the Deputy Administrators who shall act in his place.
(c) The Auditor General shall be ex of fie to Auditor of the NEA. The
provisions of Section 584 of the Revised Administrative Code, as amended by
Republic Acts numbered 2266 and 2716, shall apply to the Office of the
Representative of the Auditor General in the NEA.
Capital Stock.
SEC. 6. Capital Stock. — The authorized capital
stock of NEA is one billion pesos (P1B) divided into ten (10) million shares
having a par value of one hundred (P100.00) pesos each which shares are not to
be transferred, negotiated, pledged, mortgaged, or otherwise given as security
for the payment of any obligation. The sum of fifty million pesos (P50M) of the
capital stock has been subscribed and paid wholly by the Government of the
Philippines in accordance with the provisions of Republic Act numbered
Twenty-seven hundred seventeen and Republic Act numbered Sixty hundred
thirty-eight. The remaining nine hundred fifty million pesos (P950 M) shall be
wholly subscribed by the Government of the Philippines and shall be paid as
follows:
(a) The sum of one hundred ninety-five million pesos (P195M) worth of goods
and services from Japanese Reparations for the eighteenth, nineteenth and
twentieth year schedule, which is hereby allocated to NEA;
(b) The sum of ten million pesos (P10M) for the fiscal year 1973 and the same
amount each year for the next two fiscal years malting a total sum of thirty
million pesos (P30 M) representing proceeds of the sale of reparations goods,
which are hereby allocated to NEA:
(c) The sum of fifty three million five hundred thousand pesos (P53.5M) for
the fiscal year 1973 and the same amount each year for the next nine (9) fiscal
years from the general revenue, which arc hereby appropriated;
(d) The sum of one hundred thirty million pesos (P130M) representing fund or
physical assets which NEDA-FS may make available to the NEA for loan
purposes;
(e) The sum of sixty million pesos (P60 M) representing proceeds
corresponding to the share of the National Government in all franchise taxes
paid by electric service entities; and
(f) Such sums as may be appropriated and/or allocated by the President or the
National Assembly, when it comes into existence, from time to time as the
Financial needs of the NEA shall require until the authorized capital stock is
fully paid up.
Loan Standards.
SEC. 7. Loan Standards. — In making a loan
authorized in Section 4, the Board of Administrators is hereby authorized,
empowered and directed:
(a) Before making such loan, to determine and certify that (1) the project or
projects being financed thereby are financially feasible for the purpose of, and
will result in, area coverage in the area or areas to be affected thereby; (2)
funds are or will be available for the total advance of such loans to the
borrower on the schedule contemplated by the loan agreement; and (3) in the
NEA's judgment the security for such loan is reasonably adequate and the
principal of an interest upon such loan will be repaid on schedule and within
the time agreed;
(b) To require that such loan be self-liquidating within a term to be fixed
by the NEA;
(c) To impose upon the loan principal an interest charge to be fixed by the
NEA;
(d) To fix the schedule for repayment of the principal of and the interest
upon such loan in installments recurring not more than every quarter, which
installments may be in unequal amounts and larger in the later years of the loan
term than in the earlier years;
(e) To require in the loan agreement that the borrower's rates, charges,
rules and regulations, policies and all other terms and conditions affecting its
extension and furnishing of service shall be such as to assure achievement of
the loan purposes, and that the same be filed with and for such purpose approved
by the Board of Administrators before being put into effect or changed by the
borrower; and
(f) Subject to the foregoing, to establish and require compliance with such
procedures, rules and regulations as the Board of Administrators may determine
to be necessary or appropriate to assure that the purposes of such loan will be
timely achieved and that the loan agreement and the provisions of this Decree
will be complied with.
Contracting Indebtedness: Conditions, Privileges, Exemptions, Sinking Fund, Guarantees.
SEC. 8. Contracting Indebtedness: Conditions,
Privileges, Exemptions, Sinking Fund, Guarantees. — Whenever the Board of
Administrators determines that to accomplish the purposes of Chapter II of this
Decree it is necessary to contract indebtedness, it shall by a resolution,
adopted by the affirmative votes of at least three members, so declare and
authorize the NEA's execution or issuance of, and establish the terms and
conditions to be contained in, such bonds, loan agreements or other evidences of
indebtedness necessary therefor. Such resolution shall become valid and
effective upon approval by the President of the Philippines upon recommendation
of the Secretary of Finance.
(a) With respect to domestic indebtedness to be incurred by the NEA, the
terms and conditions to be contained in such bonds or other evidences of
indebtedness, and other conditions, privileges, exemptions and guarantees
attaching thereto, shall include the following:
Such bonds or other evidences of indebtedness (A) shall be in registered
form and transferable at the Central Bank of the Philippines; (B) shall not be
sold at less, than par; (C) shall be payable ten years or more from date of
issue, as may be determined by the Secretary of Finance before their issuance,
but shall be redeemable, upon the election of the Board of Administrators after
five years from such date of issue; and (D) shall bear interest at an annual
rate to be determined before their issuance by the Secretary of Finance. The
interest may be payable quarterly, semi-annually or annually, as determined by
the Secretary of Finance in consultation with the Monetary Board of the Central
Bank of the Philippines before date of issuance, and both the principal and
interest shall be payable in legal tender of the Philippines.
The bonds or other evidences of indebtedness shall be exempt from the
payment of all taxes by the Republic of the Philippines, or by any authority,
branch, division or political sub-division thereof, which facts shall be stated
upon their face; and they shall be receivable as security in any transaction
with the National Government or any of its branches, subdivisions,
instrumentalities and its owned or controlled corporations in which a security
is required.
The sinking fund shall be established by the National Electrification
Administration in such manner that the total 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 Subsection. The sinking fund shall be
under the custody of the Central Bank of the Philippines, which shall invest the
same, subject to the approval of the Board of Administrators and the Secretary
of Finance in consultation with the Monetary Board: Provided, That the proceeds
thereof shall accrue to the NEA.
The Republic of the Philippines hereby guarantees the payment by the NEA of
both the principal and the interest of the bonds or other evidences of
indebtedness, and shall pay such principal and interest in case the NEA fails to
do so; and there are hereby appropriated out of the general funds in the
National Treasury not otherwise appropriated the sums necessary to make the
payments so guaranteed: Provided, That the sums so paid by the Republic of the
Philippines shall be refunded by the NEA: And, provided further, That
the NEA, to assure such refunding, shall establish such reserves or sinking
funds and comply with such other restrictions and conditions as the Secretary of
Finance may prescribe and establish for that purpose.
(b) With respect to foreign indebtedness to be incurred by the NEA, such may
be contracted, in the form of loans, credits, convertible foreign currencies, or
other forms of indebtedness, from foreign governments or any international
financial institution of fund source, including foreign private lenders. The
total outstanding amount of such indebtedness, exclusive of interest, shall not
exceed five hundred million United States dollars (U.S. $500M) or the equivalent
thereof in other currencies. The President of the Philippines, by himself or
through his duly authorized representative, is hereby authorized to negotiate
and to so contract with foreign governments or any international financial
institution or fund source in the name and on behalf of the NEA; and is further
authorized to guarantee, absolutely and unconditionally, as primary obligor and
not merely as a surety, in the name and on behalf of the Republic of the
Philippines, the repayment of any indebtedness thereby contracted and the
payment thereon of any due interest charge, up to the limited amount authorized
to guarantee under Republic Act 6142, and also to guarantee the performance of
all or any of the obligations undertaken by the NEA in the territory of the
Republic of the Philippines pursuant to loan agreements entered into pursuant to
this Sub-paragraph (b). Any indebtedness contracted under this Sub-paragraph (b)
and the payment of the principal thereof and of any interest or other charges
thereon, as well as the importation of machinery, equipment, materials, supplies
and services by the NEA, paid from the proceeds of any such contracted
indebtedness, shall also be exempt from all direct and indirect taxes, fees,
imposts, other charges and restrictions, including import restrictions, by the
Republic of the Philippines, or by any authority, branch, division or political
subdivision thereof.
Authority to Extend Loans and Release or Subordinate Securities.
SEC. 9. Authority to Extend Loans and Release or
Subordinate Securities. — Whenever in its judgment such is necessary or
desirable to achieve the purposes of this Decree, and particularly if such is
necessary to make or keep a project operationally viable, the Board of
Administrators is hereby authorized and empowered (a) by agreement with the
borrower, to extend the time of payment of principal or interest, or both,
beyond the loan agreement term of any loan made by the NEA under this Decree, or
to defer, for not in excess of seven years, the time when the repayment schedule
for principal or interest, or both, shall begin, or to reschedule payments of
principal or interest, or both, or when none of the foregoing is sufficient, to
compromise any amount owing by a borrower to the NEA subject to provisions of
existing laws; and (b) upon the NEA's determination that such is necessary or
desirable for the purpose of enabling a borrower to accomplish the purposes for
which it has already received an NEA loan and that such will not result in any
diminution of the security of, or of the ability of the borrower to repay, any
outstanding indebtedness of the borrower below the level of such security and
ability were additional borrowings from another lender not undertaken, to
release any after-acquired property clause contained in any lien the NEA holds
on a borrower's properties to, or to share any such lien on a co-equal basis in
proportion to their respective loans with, or to subordinate any such lien in
favor of, any other lender of funds to a public service entity or to the NEA for
relending to public service entities for the purposes for which loans are
authorized under this Decree.
Enforcement Powers.
SEC. 10. Enforcement Powers. — If any public
service entity which has borrowed funds from the NEA, or from any other lender
with the NEA's lawfully required prior approval, shall default in its principal
or interest payments, or shall fail, after notice from the NEA, to comply with
any other term or condition of a loan agreement or of any rule or regulation
promulgated by the NEA in administering the provisions of this Decree, the Board
of Administrators is hereby authorized and empowered in its discretion to do any
or any combination of the following:
(a) Refuse to make, or give any lawfully required approval to, any new loan
to the borrower;
(b) Withhold without limitation the NEA's advancement, or withhold its
approval for any other lender with respect to which the NEA has such approving
power to make advancement of funds pursuant to any loan already made to the
borrower;
(c) Withhold any technical or professional assistance otherwise being
furnished or that might be furnished to the borrower;
(d) Foreclose any mortgage or deed of trust or other security held by the NEA
on the properties of such borrower, in connection with which the NEA, may,
subject to any superior or co-equal rights in such lien held by any other
lender; (1) kid for and purchase or otherwise acquire such properties; (2) pay
the purchase price thereof and any costs and expenses incurred in connection
therewith out of the revolving fund; (3) accept title to such properties in the
name of the Republic of the Philippines; and (4) even prior to the institution
of foreclosure proceedings, operate or lease such properties for such period,
and in such manner as may be deemed necessary or advisable to protect the
investment therein, including the improvement, maintenance and rehabilitation of
systems to be foreclosed, but the NEA shall, within five years after acquiring
such properties in foreclosure proceedings, sell the same for such consideration
as it determines to be reasonable and upon such terms and conditions as it
determines most conducive to the achievement of the purposes of this Decree;
or
(e) Take any other remedial measure for which the loan agreement may
provide.
In addition to the foregoing, the Board of Administrators may, at its own
instance and in the name of the NEA, petition any court having jurisdiction for
such purpose or any administrative agency possessing regulatory powers for such
purpose including the Board of Power and Waterworks) to issue such order and
afford such lawful relief as may be necessary.
No borrower shall, without the approval of the Board of Administrators and of
any other lender holding or sharing a lien on such borrower's properties, sell
or dispose of the property, rights, franchises, permits or any other assets
acquired and/or mortgaged pursuant to the provisions of this Decree until all
outstanding indebtedness to the NEA and any other such lender, including all
interest owing thereon, shall have been repaid: Provided, That the NEA
may by appropriate rule or regulation, grant general permission to borrowers to
dispose of incidental properties (excluding real property), rights, franchises,
permits or other assets no longer deemed necessary or useful in conducting the
borrower's operations.
No cooperative shall borrow money from any source without the Board of
Administrators' prior approval: Provided, That the Board of
Administrators may, by appropriate rule or regulation, grant general permission
to cooperatives to secure short term loans not requiring the encumbering of
their real properties or of a substantial portion of their other properties or
assets.
Execution of Public Works Acts.
SEC. 11. Execution of Public Works Acts. — The NEA
shall execute all electrification projects that may be authorized in any Public
Works Acts; and for this purpose it may call for assistance and cooperation
consistently with Section 4 (j).
Conflict of Interest.
SEC. 12. Conflict of Interest. — (a) No member,
officer, attorney, agent or employee of the NEA shall in any manner, directly or
indirectly, participate in the determination of any question affecting any
public service entity or other entity in which he is directly or indirectly
interested or any person to whom he is related within the third degree of
affinity or consanguinity, Any person violating the provisions of this
Subsection shall be removed from office and shall upon conviction be punished by
a fine not to exceed ten thousand (P10,000.00) pesos or imprisonment not to
exceed five years, or both.
(b) No officer or employee of the NEA or any government official who may
exercise executive or supervisory authority over the NEA, either directly or
indirectly, for himself or as the representative or agent of others, shall
become a guarantor, endorser, surety for loans from the NEA to others, or in any
manner be an obligor for money borrowed from the NEA. Any such officer or
employee who violates the provisions of this Subsection shall be punished by a
fine of not less than one thousand (P1,000.00) pesos nor more than five thousand
(P5,000.00) pesos, or imprisonment for not less than one year nor more than five
years, or both.
(c) No loan shall be granted by the NEA to any person related to any member
of the Board of Administrators or to the Administrator within the third degree
of consanguinity or affinity, or to any corporation, partnership, or company
wherein any member of the Board of Administrators or the Administrator is a
share holder: Provided, That the foregoing prohibition shall not apply
to a cooperative of which any member of the Board of Administrators or the
Administrator or any such relative is a member. Violation by any member of the
Board of Administrators or the Administrator of the provisions of this
Subsection is sufficient cause for his removal by the President of the
Philippines; and the violator shall furthermore be punished as provided
in Subsection (b).
(d) No fee, commission, gift, or charge of any kind shall be exacted,
demanded, or paid for obtaining loans from the NEA. Any officer, employee or
agent of the NEA or the Government exacting, demanding or receiving any fee,
commission, gift of charge of any kind for service in obtaining a loan shall be
punished by a fine of not less than one thousand (P1,000.00) pesos nor more than
three thousand (P3,000.00) pesos, or imprisonment for not less than one year nor
more than three years, or both.
(e) Any person who, for the purpose of obtaining, renewing, or increasing a
loan or the extension of the period thereof, on his own or another's behalf,
shall give any false information or cause through his intrigue or machination
the existence and production of any false information with regard to the
identity, situation, productivity or value of security, or with regard to a
point which might affect the granting or denial of the loan, whether the latter
has been consummated or not, and any officer or employee of the NEA who through
connivance shall allow by action or omission such false information to pass
unnoticed, thereby causing damage to the NEA or exposing the latter to the
danger of suffering such damage, shall be punished by a fine of not less than
the amount of the loan obtained or applied for nor more than three times such
amount, or imprisonment for not less than three months nor more than three
years, or both.
(f) Any officer or employee of the NEA who violates, or causes or permits
another person to violate, and any other person who violates or aids or abets
the violation of, any provision of this Decree not specifically punishable in
the preceding Subsections shall be punished by a fine not exceeding two thousand
(P2,000.00) pesos, or imprisonment not exceeding one year or
both.
Supervision over NEA; Power Development Council.
SEC. 13. Supervision over NEA; Power Development
Council. — The NEA snail be under the supervision of the Office of the
President of the Philippines, All orders, rules and regulations promulgated, and
all appointments made by the NEA as well as transactions subject to the
authority and jurisdiction of the NEA involving more than five hundred thousand
(P500,000.00) pesos shall be subject to the approval of the Office of the
President of the Philippines.
In order to achieve coordination and cooperation among different agencies and
sectors having to do with electrification and power development, there is hereby
created a Power Development Council whose Chairman shall be a person or official
designated by the President of the Philippines, and its members shall be the
manager of the NPC, the NEA Administrator, the Director General of the NEDA, the
Chairman of the Board of Power and Waterworks, a representative of electric
cooperatives, to be chosen by a national association of electric cooperatives,
and a representative of the private sector.
The Council shall have a Secretariat to be headed by an Executive Secretary
and staffed by such number of personnel as may be determined by the Council. In
order to augment the expertise necessary in the performance of its functions,
the Council may secure the detail of personnel, either on a part-time or
full-time basis, as well as other forms of assistance from other government
offices and agencies, including government-owned or controlled corporations. The
qualifications and compensation of the personnel of the Secretariat shall be
determined by the Council, but their appointment shall be made by the
Chairman.
The salaries, expenses, operating expenses and such other necessary financial
outlays for PDC shall be provided for from a special annual assessment
to be determined by the Chairman of PDC and paid by the NEA and NPC.
The Council shall adopt an integrated plan of electrification and power
development, coordinate the activities and operations of all sectors involved in
electrification, and recommend such policies and measures to the proper
authorities and parties concerned as it may deem necessary to achieve the total
electrification objective declared in this Decree.
SEC. 14. Exemption From All Taxes, Duties, Fees, Imposts
and Other Charges by Government and Government Instrumentalities. — The NEA
shall devote all its returns from its capital investments as well as excess
revenues from its operation to attain its objectives. To enable the NEA to pay
its indebtedness and obligations and in furtherance and effective implementation
of the policy enunciated in this Decree, the NEA is hereby declared exempt:
(a) From the payment of all taxes, duties, fees, imposts, charges, costs and
restrictions to the Republic of the Philippines, its provinces, cities,
municipalities, and other government agencies and instrumentalities, including
the taxes, duties, fees, imposts and other charges provided for under
the Tariff and Customs Code of the Philippines, Republic Act 1937, as amended by
Presidential Decree No. 34, dated October 27, 1972, and Presidential Decree No.
69, dated November 24, 1972, and filing and service fees and other charges or
costs in any court or administrative proceedings in which it may be a party;
(b) From all income taxes, franchise taxes and realty taxes to be paid to the
National Government, its provinces, cities, municipalities and other government
agencies and instrumentalities;
(c) From all import duties, compensating taxes and advance sales tax,
wharfage fees on import of foreign goods required for its operations and
projects; and
(d) From all taxes, duties, fees, imposts, and all other charges imposed
directly or indirectly by the Republic of the Philippines, its provinces,
cities, municipalities and other government agencies and instrumentalities, on
all petroleum products used by the NEA in the generation, transmission,
utilization and sale of electric power.
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
