WHEREAS, in comformity with its statutory responsibility and
authority over the currency issue of the country and in conjunction
with its other functions and objectives, the Monetary Board of the
Central Bank of the Philippines authorized the establishment of a Mint,
equipped to strike coins from imported blanks; the Central Bank under
Letter of Instructions No. 171 dated February 27, 1974 was likewise
directed to take all necessary steps for the establishment of a Gold
Refinery, suitable in design and capacity for the needs of the country,
as soon as practicable; and, finally, the Central Bank under
Presidential Decree No. 484 dated June 18, 1974 was authorized to
operate a Security Printing Plant for the printing of banknotes, as well
as to undertake such other security printing work as the facilities of
the Plant would permit;
WHEREAS, pursuant to Section 131 of Republic Act No. 265, as
amended, the importation by the Central Bank of notes and coins shall
be fully exempt from all Customs duties and consular fees and from all
other taxes, assessments, and charges related to such importation;
WHEREAS, in accordance with existing provisions of law, the
importations of the Central Bank of the necessary machineries,
equipment, and raw materials needed in the implementation of said
project are not exempt from Customs duties, taxes, assessments, and
other charges;
WHEREAS, the payment of such Customs duties and taxes and
other charges would amount to a substantial sum and could adversely
affect the viability of said projects;
WHEREAS, the maximum security requirements intimately
related to the immediate establishment and operation of these projects
would render it inadvisable to comply strictly with existing policies,
rules, and regulations on public bidding relative to the award of
construction and supply contracts, as well as in the procurement of
supplies and materials needed in the operation of these projects;
WHEREAS, the operation of these projects would involve the
creation of a substantial number of positions which are highly technical
in nature and/or primarily confidential, and it would not be
practicable to subject appointments thereto to the Civil Service law,
rules, and regulations.
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 one of Presidential Decree No. 484 dated
June 18, 1974 is hereby amended to read as follows:
"SEC. 1. The Central Bank of the Philippines is hereby
authorized to operate a Security Printing Plant for the printing of
banknotes, as well as to undertake such other security printing work as
the facilities of the Plant would permit, establish and operate a Gold
Refinery, suitable in design and capacity for the needs of the country;
and, establish and operate a Mint. The Monetary Board shall issue such
rules and regulations as may be necessary to carry out the
implementation of this Decree.
"SEC. 1-A. In the establishment and operation of the
Security Printing Plant, the Gold Refinery, and the Mint, the Central
Bank shall be exempt from all forms of taxation and from duties and all
other imposts on all machineries, equipment, raw materials and supplies
that it may import, the provisions of the Tariff and Customs Code, as
amended, the National Internal Revenue Code, as amended, and other
existing laws, rules and regulations to the contrary notwithstanding.
"SEC. 1-B. Such other security printing work for other
Government offices, agencies, instrumentalities, and Government-owned or
control corporations, the requisitions for which have been duly
approved by the Commission on Audit, shall be at cost, allowing only for
a minimal margin to cover administration and operational expenses. To
safeguard such other security printing jobs, all original designs,
engravings, and other printing materials involved in the security
printing shall be kept in a secured vault, under the joint custody of a
committee composed of the Chairman of the Commission on Audit and the
Governor of the Central Bank, who may be represented for this purpose by
their duly authorized representatives, and no design, engraving, or
other printing materials shall be removed therefrom except in the
presence of the head of the requisitioning office requiring the same;
Provided, That, in cases of front and back engravings, one of these
shall be under the custody of the requisitioning office, in such manner
that no security printing may be executed without the knowledge and
approval of such official.
"SEC. 1-C. Due to the delicate and sensitive nature of
the projects authorized herein and in order that maximum security shall
not therefor be compromised, the Central Bank shall ensure that access
to plans, drawings, and specifications is reduced to the minimum. For
this purpose, the Central Bank, in the construction of the required
building complex and the procurement of necessary machineries,
equipment, raw materials, and services, shall likewise be exempt from
the requirements of general public bidding and other related
requirements, as provided in other existing laws, rules and
regulations.
"SEC. 1-D. The Monetary Board, taking into
consideration the technical expertise required and confidentiality of
the duties and complex production processes involved in the printing of
banknotes and other security instruments, the refinement of gold, and
the minting of coins, may declare such positions so determined in these
projects to be either primarily confidential or highly technical in
nature and accordingly, appointments thereto shall be exempt from the
Civil Service Law, rules and regulations.
"SEC. 1-E. After commencement of production by the
Security Printing Plant, the Gold Refinery, and the Mint, the Central
Bank shall undertake a study of the possibilities of export of services
and products of this Plant.
"SEC. 1-F. Any income that may be derived or net losses
incurred from the operations of these projects shall be distributed in
accordance with Sections 41 and 42 of Republic Act No. 265, as amended."
SEC. 2. This Decree shall take effect immediately.
Done in the City of Manila, this 27th day of August, in the year of
Our Lord, nineteen hundred and seventy-five.
(Sgd.)
FERDINAND E. MARCOS
President
Republic of the Philippines
By the President:
(Sgd.)
ROBERTO V. REYES
Acting Executive Secretary
