Presidential Decree No. 487 (PD 487) — Authorizing the Creation of Philippine Centers Abroad
WHEREAS, there is an urgent need to consolidate, integrate
and coordinate all the activities of all Philippine Government offices
and agencies abroad, which have hitherto been dispersed and separate
from each other, a situation entailing unnecessary expense and
duplication of functions;
WHEREAS, consistent with the human and material resources of
the Philippines, it is the objective of the New Society, among other
things, to nurture, promote and propagate Philippine culture, to
encourage foreign tourists to visit the Philippines, to expand the
foreign market for Philippine products, to provide efficient and
comprehensive public service in the country and abroad, and in general
to enhance the image of the Philippines;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers in me vested by the Constitution,
do hereby decree and order as follows:
SECTION 1. In certain strategically located places approved
by the President upon the recommendation of the Secretary of Trade,
there shall be incorporated a Philippine Center Management Board,
hereinafter called "the Board," which shall, in behalf of the Republic
of the Philippines, acquire by purchase or by any other appropriate
means of building, which shall house within its premises all the offices
and agencies of the Philippine Government. Such building shall be
called "the Philippine Center," hereinafter called "the Center," and
shall serve the purposes stated in the second paragraph of the preamble.
SEC. 2. The Board shall have the following composition and
functions:
A. Composition—
Chairman—The Chief of Mission
Vice Chairman—The Head of the Philippine National Bank Branch
Office, or, in case there is no such branch office, the Philippine
Commercial Attache or Trade Promotion Representative.
Members:
The Philippine Commercial Attache or Trade Promotion
Representative when not acting as Vice Chairman.
The Representative of the Department of Tourism.
The Philippine Center Business Manager, who shall also be the
Secretary of the Board.
One representative each from other offices and agencies of
the Philippine Government in the area.
B. Functions—
The Board shall be responsible to the President of the
Philippines for the overall operation, maintenance and management of the
Center in accordance with this Decree and with sound business'
practices.
The Board shall meet a least once a year to prepare and
submit to the President of the Philippines through the Secretary of
Trade its annual report on the operations, financial position and
achievements of the Center not later than the 31st of December of each
year.
The Board shall, in accordance with its procedures, decide
and implement policies dealing with the construction, renovation,
maintenance and operations of the Center. Its decisions shall be arrived
at by a simple majority of the entire composition of the Board.
The Board shall approve lease contracts for the rentals
stipulated in Section
All lease contracts shall be signed by the Chairman of the
Board. All lease payments shall be payable to the "Philippine Center
Management Board" and such payments shall be promptly deposited in the
bank for credit to the fund provided in Section 3. 5. The Board shall
adopt the most practical and effective arrangements for the security of
personnel and the premises.
The Board shall have such other functions consistent with
the objectives of this Decree.
SEC. 3. The funds for the purchase and renovation of the
Center shall be obtained through borrowings that the Philippine National
Bank is hereby authorized to secure as agent for and in behalf of the
Philippine Center Management Board. Should such borrowings be inadequate
to cover the cost of purchase and renovation, the Philippine National
Bank may advance the necessary amount from its own resources in the
event of urgent need. For borrowings contracted by the said bank, it
shall be entitled to collect commission and service fees. For advances
made from its own resources, the said bank shall be entitled to collect
interest charges at the rate imposed by its present lending policy for
loans or advances of the same category.
There is hereby
appropriated annually out of any fund in the National Treasury not
otherwise appropriated the sum of twenty million pesos to repay the
advances or borrowing authorized in the preceding paragraph, including
interests, premiums, commission, service fees and other charges thereon.
Additional appropriations shall be authorized as the need arises.
The funds for the maintenance and operation of the Center shall, as far
as practicable, be taken from the income accruing to the Center Fund:
Provided, however, that advances or borrowings for this purpose may be
obtained by the Board.
The Board shall have the power and
authority to borrow money from the Philippine National Bank or from
other creditors under financing arrangements that may be made with the
assistance of the said banks, and to mortgage, or assign, or otherwise
encumber its properties as security for such borrowings. The borrowings
made pursuant to this authority shall be paid from any money in the
Center Fund.
The Center Fund shall consist of the sales proceeds
of the properties mentioned in Section 4 and the income of the Center
from lease payments and other sources.
SEC. 4. All real
property in the area owned by the Philippine Government shall be sold at
the most advantageous price by the Board with the advice and assistance
of a representative of the Commission on Audit, and all the proceeds
thereof shall be transferred to and become part of the Center Fund.
SEC. 5. All Philippine Government offices or agencies
and private firms using the Center shall pay rent to the Board:
Provided, that in consideration of their service to the Center, the
Philippine Embassy or Consulate and service representatives attached to
the Embassy or Consulate shall be exempt from the payment of rent during
the Center's first two fiscal year of operation.
The rate of rent shall be based primarily on the prevailing
monthly or annual rate per square foot in other buildings with
comparable facilities within a two-block radius of the Center.
SEC.
6. The Board shall appoint a Philippine Center Business Manager,
hereinafter called "the Manager," who shall be responsible to the Board
for the effective and prompt implementation of its policies and
decisions.
A. The following emoluments shall be paid to the
Manager by the Board from the Center Fund:
Salary—The Manager shall have an annual salary of twelve
thousand US dollars (US$ 12,000.00), with increments proportionate to
any increase in rental rates.
Benefits—
Health and hospitalization insurance equivalent to
coverage of the employees of the Philippine Embassy or Consulate.
Social Security under local laws.
B. Functions:
The Manager shall be the Secretary of the Board and shall
prepare the agenda and the minutes of Board meetings.
He shall be responsible for the safety, cleanliness and
orderly maintenance of the building.
He shall perform such other functions as may be assigned to
him by the Board.
SEC. 7. The Center shall have a trade, tourism and
investment center, called Philippine House, for Philippine products and
cultural, tourism and investment materials, which shall be under the
direct supervision of the Department of Trade and which shall be
operated under guidelines issued by the Secretary of Trade. The Center
shall also provide for an auditorium/theater/community room; a library
room; a restaurant; a penthouse for socials of the Embassy or Consulate
and for rental to the Philippine Community; a storage room; and such
other areas as may be necessary or proper to be decided by the Board.
SEC. 8. The Department of Trade, with the assistance
and cooperation of other government offices and agencies concerned,
shall be the coordinating and clearing house of support activities for
the Center. For this purpose, there is hereby appropriated out of any
fund in the National Treasury not otherwise appropriated the sum of five
million pesos to serve as a revolving fund of the Department of Trade
for operating expenses of Philippine Houses abroad.
SEC. 9. The Secretary of Trade may appoint a Filipino
architectural consultant for the Center. Such consultant shall advise
the Board and local architects and/or building contractors on the
exterior and interior renovation work that may be undertaken in order
that the Center may project an image which is representative of the best
in Philippine life and culture.
SEC. 10. This Decree amends Presidential Decree No. 188,
dated May 10, 1973 and Presidential Decree No. 258, dated July 31,
1973.
Done in the City of Manila, this 19th day of June, in the year
of Our Lord, nineteen hundred and seventy-four.
(Sgd.)
FERDINAND E. MARCOS
President of the Philippines
By the President:
(Sgd.)
ALEJANDRO MELCHOR
Executive Secretary
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
