Presidential Decree No. 594 (PD 594) — Amending Certain Provisions of Republic Act Numbered Thirty Hundred and Thirty-Four Entitled "An Act Creating the Mindanao Development Authority, Prescribing Its Powers, Functions, and Duties, Providing Funds Therefor and for Other Purposes"
WHEREAS, it is a declared policy to promote and accelerate
the socio-economic growth and development of the Mindanao region;
WHEREAS, in pursuance of such policy there is an urgent need
to strengthen and extend over-all support to the Mindanao Development
Authority to enable it to meet the implementation requirements of its
expanding programs and activities in its area of responsibility;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the Constitution as
Commander-in-Chief of all the Armed Forces of the Philippines and
pursuant to Proclamation No. 1081 dated September 21, 1972, and General
Order No. 1 dated September 22, 1972, as amended and in order to effect
the desired changes and reforms in the social, economic and political
structure of our Society, do hereby order and decree as follows:
SECTION 1. Section 1 of Republic Act numbered thirty hundred
and thirty-four is hereby amended to read as follows:
"SECTION 1. Declaration of policy. — It is hereby
declared to be the policy to foster the accelerated and balanced growth
of the Mindanao and Sulu region, hereinafter referred to as the region,
within the context of national plans and policies for social and
economic development, through the leadership, guidance and support of
the government. To achieve this end, it is recognized that a government
corporation should be created for the purpose of drawing up the
necessary plans for regional development; providing leadership in the
setting up of pioneering or groundbreaking industrial and agricultural
enterprises; coordinating or integrating the diverse efforts of the
various public and private entities directly engaged in implementing
plans and projects affecting power, manufacturing, mining transportation
and communication, conservation, resettlement, education, extension
work, health and other activities leading to the rapid, socio-economic
growth of the region; and extending or facilitating the extension of
financial, management and technical support to worthwhile industrial and
commercial ventures within the region.
SEC. 2. Section 5, Subsections (a), (d), (e), (f) and (g) of
the said Act are hereby amended to read as follows:
"SEC. 5. Purposes.—The Authority shall have the
following purposes:
To make a comprehensive survey of the physical and natural
resources and potentialities of the region, including its social
conditions, values and institutions, and special regional problems and,
on the basis thereof, to draft a comprehensive and detailed plan
designed to promote the region's rapid social and economic development
along the general lines set forth by the National Economic and
Development Authority.
To coordinate and/or integrated such projects or operations
of local governments, governmental agencies, public corporations and,
where clearly necessary and feasible, those of private entities, as bear
directly upon the plans and activities of the Authority so as to make
possible the accelerated and balanced development of the region within
the context of the guidelines formulated by the National Economic and
Development Authority; for this purpose, to set up a compact and
well-trained staff for effective liaison and consultation or joint
planning and/or implementation with such government and private
entities: Provided, That disputes involving jurisdiction between
the Authority and any department, bureau, office, or agency or
instrumentality of the government within the area covered by this Act,
and these arising in the coordination or integration of government
plans, projects or operations in the area shall be settled by decisions
of the President of the Philippines.
To engage in industry, agriculture or other enterprises
within the region which may be necessary or directly contributory to the
socio-economic development of the region and, for this purpose, whether
by itself or in cooperation with private persons or entities, to
organize, finance, invest in, and operate subsidiary
corporations when such an arrangement is clearly necessary to
implement the powers granted to it by this Act: Provided, That
the Authority shall engage only in those activities as are in the nature
of pioneering ventures or are demonstrably beyond the scope,
capacity, or interest of purely private enterprises due to
consideration of geography, technical or capital requirements,
returns on investments, and risks : Provided, further, That the
Authority may undertake and/or invest in social and/or invest in social
and/or service-oriented projects upon the prior approval of the
President, on recommendation of the National Economic and Development
Authority [NEDA].
To advise, cooperate in and, if necessary, to undertake by
itself the readjustment, relocation or resettlement of population in
any part of the country that may be displace or affected by the
socio-economic measures of the government in cooperation with the
national, provincial, city and municipal agencies organized towards that
end.
To make a report annually to the National Economic and
Development Authority and the President, based upon its continuing
assessment and evaluation, in the light of the Authority's approved
plans and objectives, of the progress of its activities,
including those done in collaboration with various government and
private entities engaged in the implementation of socio-economic plans
and projects in the region, including in such report, among other
items, a general survey of the social economic conditions of the
regions, socio-economic problems having special reference to work of the
Authority, a comparison of the development targets set for the year
ending and the manner in which actual accomplishments measure up to such
targets, and appropriate administrative and legislative
recommendations.
SEC. 3. Section 6, Subsections (f) and (h) of the same Act
are hereby amended to read as follows:
"SEC. 6. Power, functions, eminent domain, etc. —
Except as otherwise specifically provided in this act, the
Authority-shall have the following powers and functions:
* * * * *
* *
To acquire, lease, or hold such personal and real property as
it deems necessary or convenient in the transaction of its business and
may lease, mortgage, sell, alienate or otherwise dispose of any such
personal and real property held by it.
To exercise the right of eminent
domain in the name of the Republic of the Philippines, and in the
acquisition of real estate by condemnation proceedings, the title to
such real estate shall be taken in the name of the Republic of the
Philippines, but thereafter the title to all such real estate shall be
transferred to the Authority by presidential decree or proclamation to
accomplish the aims and purpose of this Act.
SEC. 4. Section 7, Subsection (c) of the same Act is amended
to read as follows:
"SEC. 7. Capitalization. — The Authority shall have
an authorized capital of three hundred million pesos (P300,000,000)
which shall be fully subscribed by the Republic of the Philippines and
shall be paid out as follows:
In case the Authority shall undertake social and/or
service-oriented projects as provided under Section 5 (e) of this Act,
the Board of Directors may appropriate out of the Authority's revolving
fund such amounts as may be necessary to prosecute the said projects.
The National Government shall reimburse the authority for such expenses
actually incurred in the prosecution of such projects which
reimbursement shall accrue to the authority's revolving fund.
SEC. 5. Section 8 is hereby reapealed in its entirety and a
new provision to be known as Section 8 is hereby inserted which shall
read as follows:
"SEC. 8. Operating Expenses.—For the operating
expenses of the authority, the Board of Directors may appropriate out of
the authority's revolving fund a sum not exceeding two million pesos
during the fiscal year. A standing annual appropriation of two million
pesos is hereby authorized to be appropriated in the General
Appropriations Act for the current fiscal year, which amount shall be
used to reimburse the authority of the total expenses actually incurred
out of the two million pesos for operating expenses during the preceding
fiscal year, which reimbursement shall accrue to the revolving fund.
The unexpended balance of the appropriation for operating expenses shall
automatically revert to said revolving fund at the end of each fiscal
year and whatever net income of the authority, if any, shall also accrue
to the revolving fund. However, the Board of Directors may appropriate,
in addition to the two million pesos operating expenses herein
authorized, such amount as may be necessary to augment the operating
expenses of the authority: Provided, That such additional
appropriation shall be subject to the approval of the President, upon
the recommendation of the National Economic and Development Authority.
SEC. 6. Section 9 of the same act is amended to read as
follows:
"SEC. 9. Power to issue bonds. — Whenever the Board
of Directors may deem it necessary for the Authority to incur an
indebtedness or to issue bonds to carry out the provisions of this Act,
it shall, by resolution, so declared and state the purpose for which the
proposed debt is to be incurred. In order that such resolution be
valid, it shall be passed by the affirmative vote of at least three
members of such Board and approved by the President of the Philippines
upon the recommendation of the National Economic and Development
Authority, after consultation with the Monetary Board of the Central
Bank.
SEC. 7. Section 21 of the same Act is amended to read as
follows:
"SEC. 11. Form, rates of interest of bonds, etc. —
The National Economic and Development Authority, in consultation with
the Monetary Board, shall prescribe the form, the rates of interest, the
denominations, maturities, negotiability, convertibility, call and
redemption features, and all other terms and conditions of issuance,
placement, sale servicing, redemption, and payment of all bonds issued
under the Authority of this Act.
The bounds issued by virtue of this Act may be made payable both as
to principal and interest in Philippine currency or any readily
convertible foreign currency. Said bonds shall be receivable as security
in any transactions with the Government in which such security is
required.
SEC. 8. Section 12 of the same Act is amended to
read as follows:
"SEC. 12. Exemption from tax. — The Authority shall
be exempt from all taxes, fees, imports and duties of whatever nature,
whether national, provincial, city or municipal, incidental to its
operations: Provided, That its subsidiary corporations shall
likewise be exempt from all said taxes, fees, imports and duties: Provided,
further, That in the event the Authority shall have transferred
control or ownership of such subsidiary corporation to the private
sector, the same shall be subject to all said taxes after said transfer.
All notes, bonds and debentures and other obligations issued by the
Authority shall be exempt from all taxes, both as to principal and
interest.
SEC. 9. Section 13 of the same Act is amended to read as
follows:
"SEC. 13. Sinking Fund. — A sinking fund shall be
established in such manner that the total annual contributions thereto,
accrued at such rate of interest as may be determined by the National
Economic and Development Authority in consultation with the Monetary
Board, shall be sufficient to redeem at maturity the bonds issued under
this Act. Said fund shall be under the custody of the Central Bank of
the Philippines which shall invest the same in such manner as the
Monetary Board may approve; charge all expenses of such investments to
said sinking funds, and credit the same with the interest on investments
and other income belonging to it.
SEC. 10. Section 15 of the same Act is amended to read as
follows:
"SEC. 15. Board of Directors Composition. —
The corporate powers of the Authority shall be vested in and
exercised by a Board of Directors hereinafter referred to as the Board
which shall be composed of seven members appointed by the President. The
President shall designate from among the members of the Board its
Chairman: Provided, however, That the President may, in the
interest of the service, designate the General Manager as Acting
Chairman of the Board.
SEC. 11. Section 16 of the same Act is amended to read as
follows:
"SEC. 16. Acting Chairman. — In case of vacancy in
the position of Chairman and the President has not yet filled the same
in accordance with the preceding section, or in the absence or
incapacity of the Chairman, the most senior member of the Board in point
of length of service as member thereof who meets the qualifications set
forth in Section 27 of this Act shall act as Chairman.
SECTION 12. Section 17 of the same Act is hereby amended to
read as follows:
"SEC. 17. Appointment and Tenure.—The term of office
of the first members of the Board shall expire as designated by the
President at the time of appointment: one at the end of the second year;
two at the end of the fourth year; and two, including the Chairman, at
the end of the sixth year after the approval of this Act. A successor to
a member of the Board shall be appointed in the same manner as the
original members and shall have a term of office expiring six years from
the date of the expiration of the term for which his predecessor was
appointed.
SECTION 13. Section 25 of the same Act is amended to read as
follows:
SEC. 14. Section 26 of the same Act is hereby amended to read
as follows:
"SEC. 26. The General Manager shall be nominated by the
Board and appointed by the President. As such, he shall have the
following powers and duties:
To prepare the agenda for the meetings of the Board
and to submit for the consideration thereof the policies and
measures which he believes to be necessary to carry out the purposes and
provisions of this Act;
To execute and administer the policies and measures approved
by the Board:
To direct and supervise the operations and internal
administration of the Authority. The General Manager may delegate
certain of his administrative responsibilities to other officers of the
Authority subject to the rules and regulations of the Board; and
To exercise such other powers as may be vested in him by the
Board.
SEC. 15. Section 28 of the same Act is amended to read as
follows:
"SEC. 28. Compensation. — The General Manager shall
receive a compensation of forty-eight thousand pesos per annum which
shall be charged against the Authority's annual appropriation for
operating expenses:
In case of vacancy in the position of General Manager and the
President has not yet filled the same in accordance with Section 26 of
this Act, or in the absence or incapacity of the General Manager, the
Board may designate an Acting General Manager. In the meantime, the most
senior department head in point of length of service as such in the
authority shall act as General Manager and he shall receive the
compensation fixed for the General Manager.
SEC. 16. Section 30 is hereby amended to read as follows:
"SEC. 30. Activities of the Authority; key
officials. — The activities of the Authority shall be carried out
under the supervision of the General Manager, through the following
administrative officials who will be responsible directly to him:
An Assistant General Manager who shall head a Department of
Planning and Research.
An Assistant General Manager who shall head a Program
Implementation Department which shall take charge of implementating
specific projects undertaken by the Authority.
A General Counsel who shall head the Legal Department to
advise and represent the Authority on legal matters, procedures, and
actions.
An Assistant General Manager who shall head a Finance
Department which shall develop and implement plans and programs for the
effective, efficient and economical utilization of the Authority's
financial resources, and advise the General Manager on matters
relating to finance.
An Assistant General Manager who shall head an administrative
services department which shall plan, direct and supervise such
administrative services as supply and records management, secretariat,
duplicating, security, transportation, and building maintenance and
repair, and develop and administer sound practices for personnel
administration and advise the General Manager on all personal matters.
Such other officials as the Board of Directors may consider
necessary for the efficient conduct of the Authority's activities.
SEC. 17. Section 31 of the same Act is amended to read as
follows:
"SEC. 31. Merit System. — All officials, agents, and
employees of the Authority shall be selected and appointed on the basis
of merit and fitness in accordance with a comprehensive and progressive
merit system to be established and administered by the Authority
immediately upon its organization and in accordance with Civil Service
rules and regulations. The recruitment transfer, promotion, and
dismissal of all Authority's personnel, including temporary workers,
shall be governed by such merit system.
SEC. 18. Section 32 of the same Act is amended to read as
follows:
"SEC. 32. Appointment by Board. — Department heads
shall be appointed by the Board, upon recommendation of the General
Manager.
SEC. 19. Section 33 of the same Act is amended to read as
follows:
"SEC. 33. Appointment by General Manager.— Employees
and officials below the rank of department head shall be appointed to
positions in the approved budget by the General Manager upon written
recommendation of the head of the department concerned using as guide
the standard set forth in the Authority's merit system: Provided,
That the General Manager shall submit a quarterly report to the Board
regarding personnel selection, placement and training.
SEC. 20. Section 37 of the same Act is amended to read as
follows:
"SEC. 37. Other Benefits. — As far as applicable,
the benefits granted by existing laws shall extend to persons given
employment under the provisions of this Act.
SEC. 21. Section 40 of the same Act is amended to read as
follows:
"SEC. 40. Authority under the National Economic and
Development Authority. — Any provision of law to the contrary
notwithstanding, the Authority shall operate as an independent
corporation subject only to the supervision by the National Economic and
Development Authority.
SEC. 22. Section 41 of the same Act is amended to read as
follows:
"SEC. 41. Supplies and services other than personal.—
All purchases of supplies or contracts for services, except personal
services, shall be entered into by the Authority. In accordance with the
rules and regulations prescribed and promulgated by the Board, subject
to the approval of the President on recommendation of the National
Economic and Development Authority.
SEC. 23. Section 42 of the same Act is hereby repealed
entirely and a new provision to be known as Section 42 is inserted which
shall read:
"SEC. 42. Auditing. — The Auditor General shall act
as ex-officio auditor of the Authority and as such is empowered and
authorized to appoint a representative who shall be the auditor thereof
and fix his salary in an amount equal to the salary authorized for the
first Assistant or next ranking Managing Head of the Authority. The
Auditor General shall, upon recommendation of the Auditor of the
Authority, appoint personnel, subject to the approval of the Board. The
Personnel expenses and operating costs of his office shall be determined
and paid by the Authority. Such salaries and number of auditing
personnel may only thereafter be increased, diminished or altered by the
Auditor General, subject to the approval of the Board, and said
representative and his subordinate personnel may receive such allowances
and privileges as may be authorized and approved by the Board upon
recommendation of the Auditor General.
Such representative shall render an annual audit report on the
financial condition and operations of the Authority to the Board thru
the Auditor General. The Auditor General shall submit his annual report
to the President and the National Assembly.
SEC. 24. This decree shall take effect immediately.
Done in the City of Manila, this 3rd day of December 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
Per diems.
SEC. 25. Per diems. — The members of the Board shall
receive for every meeting attended a per diem of two hundred and fifty
pesos; Provided, That in no case will the total amount received
by each exceed the sum of one thousand pesos. Members of the Board shall
be reimbursed by the Authority for actual expenses (including
travelling and subsistence expenses) incurred by them in the performance
of their duties."
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
