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WHEREAS, a well coordinated and sustained government program on food production coupled with the cooperation of the Filipino farmers has made the country not only self-sufficient but with an exportable surplus in rice;

WHEREAS, with the breakthrough in grains production, it has become necessary to establish a national post-harvest Institute for research and extension, in order to maximize the benefits to farmers, traders, processors and consumers; minimize losses and improve the quality of the milled rice and other grains both for the local and export market;

WHEREAS, Section 5 of Presidential Decree No. 1580 provides that the program of implementation which shall include the organizational and staffing pattern, compensation system and funding of the institute has to be submitted to the Office of the President;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines by virtue of the powers vested in me by law, do hereby instruct the implementation of the following guidelines:

1. NAPHIRE as a Foundation

NAPHIRE hereinafter referred to as the Institute, is envisioned to be organized and to function as a foundation which, for policy, program coordination and support, shall be a subsidiary of the National Grains Authority and shall have powers, rights and privileges, such as:

1. The Institute shall be exempted from the payment of Income Tax as provided for under the National Internal Revenue Code.

2. Donations given by private individuals or entitles, whether Filipino National, resident aliens or non-resident aliens under the pertinent circumstances shall not be subject to Donor’s tax and may be deducted in toto from the income of the National Internal Revenue Code.

3. The Institute shall likewise be exempted from the coverage of Presidential Decree No. 711.

4. The Institute shall have the power to own, lease, operate or otherwise acquire land, buildings, equipment and such other infrastructures as may be necessary to carry out its functions and to sell or dispose of the same.

5. The Institute shall also have the authority to enter into, make, perform and carry out contracts of every class and description necessary or incidental to the realization of its function with any person, firm or corporation or initiate contracts and/or agreements between the Philippine government and any foreign government or institution, including the power to accept donations and grants, to invest its funds and enter into trust fund agreements.

6. The Institute may engage the services of experts from other government agencies, schools, colleges and universities and instrumentalities.

II. Organizational Set-up and Structure

A.   Board of Trustees

The powers and functions of the institute shall be vested in and exercised by the Board of Trustees which shall have the overall responsibility for formulating and coordinating a comprehensive program for the development of the post-production technology.

It shall have further powers, such as:

1. To constitute appropriate committees and determine and grant such allowances and other incentives for the services of experts and consultants as may be necessary in furtherance of its objectives and functions.

2. To coordinate the activities of appropriate government and private institutions relative to their respective functions in connection with post-harvest programs and corollary activities.

3. To adopt and annual budget for the payment of salaries and wages, purchase of equipment and materials and for operating and capital expenditures of the institute.

4. To formulate the organizational structure of the institute and establish such staff and line units as may be necessary for its operations and functions.

5. To cause the establishment of research and training centers in such locations as may be determined by the Board.

6. To discharge such other rights and powers as may be necessary for, corollary and incidental to its functions.

B.   MANAGEMENT

1. The management of the institute shall be vested in an executive director who may be assisted by as many deputy directors as may be necessary, all of whom shall be appointed by the Board of Trustees.

2. The salaries, benefits and other emoluments of the officials and employees of the institute shall be fixed by the Board of Trustees, pursuant to Letter of Implementation No. 103 dated October 1, 1979 for the agricultural, trading and promotional sector.

3. The Executive Director shall, among others, execute and administer the policies and resolutions approved by the Board, direct, manage and supervise the administration and operations of the institute, subject to the supervision of the Board.

4. The Executive Director, shall, subject to the confirmation of the Board, appoint the personnel of the institute, suspend or otherwise discipline them for cause and prescribe their duties and qualifications to the end that only competent persons may be employed; He may also delegate certain aspects of his administrative responsibilities to other officers, and may be vested in him by the Board.

III FUNDING

1. The Ministry of the Budget shall immediately release to the institute the sum of TEN MILLION PESOS (P10 M) provided for under Presidential Decree No. 1380.

2. For the continuing operations of the institute, the following sources of funds are hereby authorized:

2.1 Fixed excise tax from export of rice the the private sector

2.2 Fixed research fund contributions from G.O. 47 participants

2.3 Grains industry development tax as may be imposed on the grains industry sector

2.4 Fixed contributions from NGA and other government agencies requested by the board

2.5 Grants-In-Aid from government institutions and government entities, foundations or international institutions and governments such as UNDP, IDRC

2.6 Earnings from royalties, copyrights, consultancies, training fees, rentals and sales of publications

2.7 Soft loans from external funding institutions to be arranged through the Philippine Government

2.8 Interest carning of trust funds and other investments coming from the budget appropriated by the National Treasury.

3. In order that the institute could function immediately, the NGA shall allocate from its own funds such amount as may be necessary for the operations of the institute.

IV. Implementing Rules and Regulations

Pursuant to an in consonance with the guidelines established herein, the Board of Trustees shall have to formulate and adopt rules and regulations as may be necessary for, incidental to and appropriate for the attainment of the objectives of the institute.

V. Report to the President

Before the end of March of each year, the Board shall submit to the Office of the President an annual report on the condition of the institute, the annual report shall contain a review of the policies and measures adopted by the Board during the past year and the projects and researches undertaken and completed. The report shall also include an audited statement of the financial condition of the institute.

VI. Repealing Clause

All Laws, Decrees, Orders and Acts which are inconsistent with this Order are hereby repealed, modified or amended accordingly.

VII. Effectivity Clause

This Letter of Implementation shall be effective immediately.

Done in the City of Manila, this 22nd day of May, in the year of Our Lord, Nineteen Hundred and Eighty.

(SGD.) FERDINAND E. MARCOS
Republic of the Philippines

By the President:

(SGD.) JACOBO C. CLAVE
Presidential Executive Assistant