Presidential Decree No. 572 (PD 572) — Further Amending the Charter of the Philippine National Oil Company (Pnoc), as Provided for in Presidential Decree No. 334, as Amended, and for Other Purposes.
WHEREAS, under Presidential Decree No. 334, as amended, the
Philippine National Oil Company is expressly charged (a) to provide
and maintain an adequate and stable supply of oil and petroleum products
for the domestic requirements; (b) to promote the exploration,
exploitation and development of local oil and petroleum sources; and (c)
to foster oil or petroleum operation conditions conducive to a balanced
and sustainable growth of the economy;
WHEREAS, it is imperative that the Philippine National 0il
Company and its affiliated companies be granted adequate powers and
incentives to enable it to attain expeditiously and efficiently its
declared objectives.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the Constitution,
do hereby decree and order the following:
SECTION 1. Section 13 of Presidential Decree No. 334 is
hereby amended to read as follows:
SEC. 2. Section 15 of Presidential Decree No. 334, as
amended, is hereby further amended to read as follows:
"SEC. 15. Privileges and Incentives. — The Company
shall be entitled to all the incentives and privileges granted by law
to private enterprises engaged in petroleum or oil operations.
"In addition the company shall be exempt 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: Provided,
That the Company's affiliate corporations as provided in Section 13
hereof, as amended, shall be exempt only 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 importations of
aircrafts, vessels, tankers, barges and other floating structures,
including any machinery, engines, motors, equipment, spare parts and
materials thereof.
"Other government offices and other government-owned or
controlled corporations shall extend whatever assistance maybe needed by
the Company or any of its affiliates and subsidiaries, including the
detail of its officials and employees to the Company or any of its
subsidiaries on full time or part time basis under arrangement
satisfactory to the Company or any of its subsidiaries and the other
office or corporation concerned. Said officials and employees, as well
as the direction of the Company and its affiliates and subsidiaries, may
receive allowances and other emoluments, notwithstanding the provision
of any law to the contrary."
"The employees of the Company shall be entitled to all the
retirement and insurance benefits and leave privileges of government
employees. However, subsidiaries of the Company organized to undertake
purely business ventures shall not, as a matter of right, be subject to
the provisions of the Government Service and Insurance System, as
provided for under R. A. 186, as amended, as well as to any law,
executive orders and decrees relating to leave of absences, retirement
privileges, regular working hours, and other government employee
benefits."
SEC. 3. This Decree shall be effective as of the date of
the effectivity of Presidential Decree No. 334.
Done in the City of Manila, this 5th day of November, 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
SEC. 13. Loans — The Company as well as any
affiliate corporation in which it holds, owns and/or controls by itself
or jointly with one or more Government owned or controlled corporations
at least seventy-five (75%) of the issued and outstanding shares of
stock entitled to vote, when specifically authorized by the President of
the Philippines, is hereby authorized to contract loans, credits, in
any convertible foreign currency or capital goods, and indebtedness from
time to time from foreign governments, or any international financial
institutions or fund sources, or any other entities, on such terms and
conditions it shall deem appropriate for the accomplishment of its
purposes and to enter into and execute agreements and other documents
specifying such terms and conditions.
"The Republic of the Philippines, through the President of the
Philippines or his duly authorized representative, may guarantee,
absolutely and unconditionally, as primary obligor and not as surety
merely, the payment of the loans, credits and indebtedness secured by
the Company or any of its affiliate corporations, as provided above,
which may be over and above the amount which the President of the
Philippines is authorized to guarantee under Republic Act Numbered Sixty
One Hundred Forty-Two, as amended, as well as the performance of all or
any of the obligations undertaken by the Company or its affiliate
corporations in the territory of the Republic of the Philippines
pursuant to loan agreements entered into with foreign governments or any
international financial institutions or fund sources.
"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,
supplies and services, by the Company or any of its affiliate
corporations as defined herein, paid from the proceeds of any loan,
credit or indebtedness incurred under this Act, shall also be exempt
from all direct and indirect taxes, duties, fees, imposts, and all other
charges and restrictions, including import restrictions previously and
presently imposed, and to be imposed by the Republic of the Philippines,
or any of its agencies and political subdivisions."
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
