WHEREAS, the Trust Agreement dated September 5, 1967 by and
between the Republic of the Philippines as Trustor, and the Philippine
Veterans Bank as Trustees over the P121,368,000.00 Veterans Claims
Settlement Funds as Trust Corpus, representing the $31,120,000.00 (at
conversion rate of P3.90 for every dollar) turned over by the United
States of America to the Republic of the Philippines to pay the two
claims of Filipino Veterans for services rendered during World War II
empire as of July 7, 1972, as provided under paragraph 7 thereof, and
was renewed by the parties thereto, on April 5, 1974;
WHEREAS, P38,556,272.90 was already paid to settle 62,721
claims adjudicated by the Philippine Veterans Affairs Office as of June
30, 1974;
WHEREAS, only P23,928,400.00 is still needed to settle in
full the remaining claims estimated to be only about 45,083 officers and
enlisted men entitled to backpay, and to the refund of erroneous
deductions from their backpay;
WHEREAS, the Philippine Veterans Assistance Commission
(PVAC) was created to render assistance to Philippine Veterans pursuant
to PD No. 244 dated July 12, 1973, and the Philippine Veterans
Investment Development Corporation (PHIVIDEC) was also created pursuant
to PD No. 243 dated July 12, 1973, as amended, as an investment arm of
the government to generate funds for PVAC, in order that the latter can
effectively provide and support its veterans projects;
WHEREAS, all banking institutions are required by a Central
Bank Memorandum-Letter dated April 23, 1973 to increase their
individual paid-up capital to at least P100 million pesos, which in the
case of the Philippine Veterans Bank is imperative in order to enable it
to effectively participate in the activities of the banking system and
serve as an instrument of economic development;
WHEREAS, in order to maximize the investment earning of the
Philippine Veterans Investment Development Corporation (PHIVIDEC) and
generate more funds for the benefits of Philippine Veterans, it is
necessary to invest a large portion of the balance of the said Veterans
Claims Settlement Fund to worthwhile projects, in order to accelerate
the socio-economic development of the country, especially those which
are labor-intensive, and productive of high returns, and thereby
prevent the stagnation of aforecited funds, without prejudice to the
settlement of the claims remaining as yet unpaid;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Republic 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 the following:
That, P49 million of the balance of the aforementioned Veterans
Claims Settlement Fund be segregated and turned over to the Philippine
Veterans Bank as payment by the Government of the Republic of the
Philippines for 490,000 preferred shares of stock with a par value of
one hundred pesos each, for and in behalf of the veterans, their widows,
orphans, or compulsory heirs as provided under Section 3, paragraph (a)
of RA 3518, in order to increase its paid-up capital to P100 million as
required for all banking institutions pursuant to a Central Bank
Memorandum-Letter dated April 27, 1973: Provided, however, That
each veteran referred to under Section 3 (b) of said Republic Act 3518,
as amended shall be entitled to one common share and one preferred
share;
That, P24 million of the balance of said Funds be segregated
and retained in trust with the Philippine Veterans Bank to pay all the
remaining claim still unadjudicated by the Philippine Veterans Affairs
Office under the same terms and conditions set forth in the renewed
Trust Agreement dated April 5, 1974;
That another P8 million of said funds be segregated and turned
over to the Philippine Veterans Investment Development Corporation as
the second partial payment by the Government of the Republic of the
Philippines, corresponding to the balance of its unpaid subscription of
the sixty per centum of the authorized capital of said
corporation;
That the remaining P2 million., more or less, of said balance
be segregated and turned over to the Philippine Veterans Assistance
Commission for the specific purpose of utilizing the same for the
medicare of the veterans, for the establishment and support of veteran
homes for the aged, and for small business loans not exceeding P2,000.00
for each veteran-applicant: Provided, however, That the
Philippine Veterans Assistance Commission enter a Trust Agreement with
the Philippine Veterans Investment Development Corporation for the
investment of said funds, pursuant to its corporate powers under
paragraph 2(f) of Presidential Decree No. 353, to obtain maximum yield,
consistent with the safety liquidity of the funds;
The provision of all laws, decrees, instructions, executive
orders, proclamations, administrative orders rules and regulations or
part thereof which are inconsistent with the provisions of this decree
are either repealed or modified accordingly; and
That the President of the Philippine Veterans Bank (PVB), the
President of the Philippine Veterans Investment Development Corporation
(PHIVIDEC), the Administrator of the Philippine Veterans Assistance
Commission (PVAC), and the Administrator of the Philippine Veterans
Affairs Office (PVAO), shall make the necessary coordination among
themselves to effect immediately the implementation of this decree.
This Decree shall take effect upon its promulgation.
Done in the City of Manila, this 21st day of January, in the
year of Our Lord, nineteen hundred and seventy-five.
(Sgd.)
FERDINAND E. MARCOS
President of the Philippines
By the President:
(Sgd.)
ROBERTO V. REYES
Acting Executive Secretary