(NAR) VOL. 11 NO.3 / JULY – SEP. 2000
WHEREAS, Presidential Decree No. 538 dated
August 1974 created and established the PHIVIDEC Industrial Authority
(PIA) as the body corporate to carry out the policy of the Government to
encourage, promote and sustain the economic and social growth of the
country;
WHEREAS, to further carry out the above policy,
the Decree mandated the establishment of PHIVIDEC Industrial Areas, the
first of which is the PHIVIDEC Industrial Estate-Misamis Oriental
(PIO-MO) located in the municipalities of Tagoloan and Villanueva in the
Province of Misamis Oriental;
WHEREAS, the Decree further
mandates the PIA operate, administer and manage PIE-MO, and for this
purpose empowers the PIA to construct, acquire, own, lease, operate and
maintain infrastructure facilities, factory buildings, warehouses, dams,
reservoirs, water distribution, electric light and power systems,
telecommunications and transportation networks, or such other facilities
and services necessary or useful in the conduct of industry and
commerce or in attainment of the purposes and objectives of the Decree;
WHEREAS,
the PIE-MO, with the establishment of a container port and terminal,
will be the gateway to the East Asia Growth
Area/Brunei-Indonesia-Malaysia-Philippine region (EAGA-BIMP);
WHEREAS,
the Loan Agreement requires the repayment of the loan in accordance
with the Amortization Schedule fixed therein and the payment of interest
in accordance therewith;
WHEREAS, Presidential Decree No.
538 provides that fifty percent (50%) of the profit of the PIA shall be
turned over to the Philippine Veterans Investment and Development
Corporation (PHIVIDEC);
WHEREAS, the GRP has to ensure the
repayment of the loan, but to require the PIA to continue remitting to
the PHIVIDEC 50% of its profit including that from the MTCP will
prejudice the repayment schedule on the loan and may even cause the GRP
to default;
WHEREAS, the JBIC has expressed concern over
the current mechanism of remitting 50% of the PIA’s profit to the
PHIVIDEC, and has explained to the GRP the necessity of changing that
mechanism;
WHEREAS, it is of paramount interest in the
full economic development of Mindanao that the MTCP be completed and
made operational without delay and that the profits from its operation
be plowed back to the MTCP for maintenance, improvement and expansion;
WHEREAS,
under Presidential Decree No. 1416 dated 9 June 1978, as amended by
Presidential Decree No. 1772 dated 15 January 1981, the validity of
which Decrees “are unquestionable” as held by the Supreme Court in Larin
vs. Executive Secretary et al., G.R. No. 112745, 16 October 1997, the
President of the Philippines “shall have continuing authority to
reorganize the National Government, x x x including all government-owned
or controlled corporations, as well as the entire range of the powers,
functions, authorities, administrative relationships, and related
aspects pertaining to these agencies, entities, instrumentalities and
units;”
WHEREAS, under the same Decrees the President of
the Philippines has the power to “expand, amend, change, or otherwise
modify their powers, functions and authorities, including, with respect
to government-owned or controlled corporations, their corporate like,
capitalization, and other relevant aspects of their charters” and to
tale “such other related actions as may be necessary to carry out the
purposes and objectives of this Decree;”
NOW, THEREFORE, I, JOSEPH EJERCITO ESTRADA, President of the Philippines, by virtue of the powers vested in me by law, do hereby order:
SECTION 1. Suspension of the 50% remittance.
Effective immediately and until the entire loan under Loan Agreement
No. PH-P213 is paid in full, or sooner if circumstances warrant and as
otherwise directed by the President of the Philippines, the mechanism of
remitting by the PHIVIDEC Industrial Authority of 50% of its profit to
the Philippine Veterans Investment and Development Corporation is hereby
suspended.
SEC. 2. Assistance to veterans. The above
suspension notwithstanding, the Board of Directors of the PHIVIDEC
Industrial Authority is hereby authorized to fix an amount from its
profit every calendar year beginning with CY 2005 for
donation/assistance directly to government hospitals for the benefit of
veterans.
SEC. 3. Repealing Clause. Conformably with
Presidential Decree No. 1416, as amended by Presidential Decree No.
1772, all laws, decrees, charters, executive orders, administrative
orders, proclamations, rules, regulations and other issuances or parts
thereof which are in conflict with the provisions of this Executive
Order are hereby repealed or modified accordingly.
SEC. 4. Effectivity. This Executive Order shall take effect immediately.
DONE in the City of Manila, this 28th day of June in the year of Our Lord, Two Thousand.
(Sgd.) JOSEPH EJERCITO ESTRADA
By the President:
RONALDO B. ZAMORAExecutive Secretary