EXECUTIVE ORDER NO. 786
EXECUTIVE ORDER NO. 786 - CREATING
THE NATURAL RESOURCES DEVELOPMENT CORPORATION, DEFINING ITS FUNCTIONS,
POWERS AND RESPONSIBILITIES AND FOR OTHER PURPOSES
WHEREAS,
with the urgent need to accelerate the country’s development is the
need to conserve the natural resources and the environment to attain a
better quality of life for the people;
WHEREAS, there are new technologies which complement the utilization of
a resource with the conservation of another and result to greater net
benefit to the people and the environment, such as the charcoal pig
iron making;
WHEREAS, more productive utilization of resources can be attained by
the use of new better systems or technologies, such as the stumpage
valuation system; and
WHEREAS, with the present slump in the economy, it is imperative that
the government active support the development and implementation of
such technologies and systems;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution and
Presidential Decree No. 1416 do hereby order the following:
Section 1. Creation of the Corporation. — The Natural
Resources Development Corporation (NRDC) is hereby created under the
Ministry of Natural Resources. It shall have corporate term of fifty
(50) years which shall be deemed renewed for an equal period unless
earlier dissolved by law. The principal office shall be in Metro Manila
but the Board may hereafter establish branches/offices elsewhere in the
Philippines as it shall deem necessary.
Sec. 2. Policy/Purposes. — The NRDC shall on its
own, or through its subsidiary/subsidiaries or in joint venture with
the private sector hasten development by promoting and/or undertaking
the development and/or use of technologies system that complement the
utilization of natural resources with its conservation and/or optimize
its utilization;
Sec. 3. Functions/Objectives. — The NRDC shall
undertake all manner of activity, business or development projects that
shall achieve the purpose to include but not limited to the following:
1.
Engage in the production of charcoal pig iron and small and/or medium
scale steel mills as well as the necessary support fuel wood
plantations.
2. Engage
and/or encourage private sector to engage in reforestation and
industrial forestry operations through the stumpage sale system and
other means.
3. Ensure a
stable market for natural resources- based products by coordinating the
production and marketing activities and/or by engaging in the
production and/or local/international marketing of critical natural
resources-based products.
4. Promote
investment in natural resources-based industries by providing
financial, technical and/or management support/assistance.
5. Conduct
research and development on natural resources-based products.
6. Engage in
the production and marketing of minor forest, aquatic and marine
products.
Sec. 4. Powers. — The NRDC shall have the general
powers provided in the Corporation Law, insofar as they are not
inconsistent with this Order, and such other powers necessary to enable
it to attain its objectives. Without in any manner restricting the
purpose of this Section , it is expressly provided that the NRDC shall
exercise the following powers:
1.
Acquire, hold and dispose such lands as may be necessary to carry out
the purposes and objectives of the NRDC within such areas and locations
as may be determined by the President and approved by the Board of
Directors;
2. Promulgate
such rules and regulations necessary for the attainment of the
objectives of this Order;
3. Enter into,
make and execute contracts of any kind with any person, firm or
corporation, with the Philippine Government or with any foreign
government, subject to existing laws;
4. Form,
establish, organize and operate and/or contract to operate such
subsidiaries, divisions, functional units, offices and departments of
the NRDC as it may deem necessary or useful for the furtherance of the
purpose of this Order;
5. Enter into
any lawful arrangement for sharing profits, joint ventures, union,
interests, reciprocal concession or cooperation with any association,
partnership, syndicate or entity located in or organized under the laws
of any authority in any part of the world as may be necessary to carry
out its operations;
6. Obtain
funds to support or carry out its objectives and purposes and/or to
invest idle funds or income derived from marketing, contributions, etc,
in any authorized government depository banks;
7. Arrange for
financing or credit, or any kind of assistance for its own account,
subsidiaries or any client from government or private sources in the
Philippine or from international public or private financial
institutions, as the Board may deem necessary;
8. Secure any
or all of its obligations or liability by any guarantee or
counter-guarantee, pledge, mortgage, deed of trust or assignment of the
NRDC property or by creating or suffering to exist, a charge, lien, or
encumbrance, general or special, upon its assets as the Board may deem
reasonable and proper;
9. Guarantee
domestic or foreign loans and other forms of indebtedness both as to
principal and interest or either, issued by its own subsidiaries and/or
by any duly incorporated companies engaged in the business of
developing, producing and marketing natural resources-based products;
10. Accept
and/or grant donations, in any form, from/to any entity, private or
government, domestic or foreign.
11. Acquire
equipment and/or raw materials and supplies by outright purchase or
lease or rent from, as well as contract services or the undertaking or
development projects to, any person or entity, domestic or foreign,
private or government, with or without bidding, as the Board may deem
reasonable and proper;
12. Exercise
the power of eminent domain as may be necessary in carrying out the
purposes of the Order.
Sec. 5. Board of Directors. — The NRDC shall be
governed by a Board of Directors composed of the following or their
only designated representatives:
Chairman:
Minister of Natural Resources
Member:
Minister of Trade and Industry
Chairman of Development Bank of the Philippines
Minister of
Transportation and Communications
Minister of
Economic Planning
Minister of
Finance
Minister of the NRDC
Sec. 6. Powers/Functions of the Board. — The Board
of Directors of the NRDC shall exercise/perform the following
powers/functions.
1.
Prescribe and amend the By-Laws of the NRDC;
2. Formulate
policies, plans, projects, rules and regulations to effectively carry
out functions of the NRDC;
3. Direct the
management, operations and administration of the NRDC;
4. Create
committee and/or positions necessary for the efficient operation of the
Corporation; fix and authorize payment of salaries, allowances, per
diems, honoraria and other remunerations or emoluments of the members
of the Board, President, other officers and personnel, including
personnel of the government agencies/instrumentalities, who may be
designated to work for the NRDC by detail or designation in concurrent
capacity;
5. Fix the
term of office of the members of the Board and officers of the NRDC;
6. Submit to
the President of the Republic of the Philippines the annual report of
operations and condition of the NRDC;
7. Exercise
such other powers as may be necessary to accomplish the
purposes/objectives of the NRDC;
8. Delegate
any or all of its power and functions to the officer/s of the NRDC.
Sec. 7. Management. — The management of the NRDC
shall be headed by a President who shall be appointed by the Board of
Directors. Other officer positions may be created by the Board as it
shall deem fit. The powers, duties, term and compensation of the
officers shall be determined by the Board.
Sec. 8. Powers and Duties of the President. — The
President shall have the following powers and duties:
1.
To prepare the agenda for meetings of the Board and to submit for the
consideration of the Board proposed policies and measures necessary to
carry out the purposes of this Order;
2. To
recommend, and execute and administer the policies and measures
approved by the Board;
3. To
represent the NRDC in all dealings with offices, agencies, and
instrumentalities of the government and other entities, public or
private, domestic or foreign; and
4. To exercise
such other powers as may be delegated/vested in him by the Board.
Sec. 9. Capitalization. — The NRDC shall have an
authorized capital stock of FIVE HUNDRED MILLION PESOS
(P500,000,000.00) divided into five (5) Million Shares having a par
value of one hundred (P100.00) pesos each. The entire amount shall be
subscribed by the National Government and to be paid up in accordance
with the project funding requirements to be approved by the Minister of
the Budget, provided, however, that the Minister of the Budget shall
immediately release the amount of One Million Pesos (P1,000,000.00) to
the NRDC to start its operations.
Sec. 10. Exemption from all Taxes, Duties, Fees,
Imposts and Other Charges by Government and Government
Instrumentalities. — To enable the NRDC to effectively carry out its
purposes and objectives, the NRDC is hereby declared exempt, for a
period of ten (10) years from the effectivity of this Order, from the
payment of the following:
1.
Taxes, duties, fees, imposts, cost, and other charges provided for
under the Tariff and Customs Code of the Philippines, as amended;
2. All income
taxes, franchise taxes and realty taxes due to the national and/or
local government agencies or instrumentalities;
3. All import
duties, compensating taxes and advance sales tax, wharfage fees on
foreign goods imported for its operations; and
4. All taxes,
duties, fees, imposts and other charges imposed on all petroleum and
related products used by the NRDC.
Any provision of existing laws to the contrary notwithstanding, any
donation, contribution, bequest, subsidy or financial aid which may be
made to the NRDC shall be exempted from taxes of any kind, and shall
constitute allowable deductions in full from the income of the donors
or givers for income tax purposes.
Sec. 11. Auditor. — The NRDC shall be audited by
the corporate auditor, whose appointment by the Commission on Audit is
subject to the approval of the Board. The subsidiary corporation/s of
the NRDC formed and registered with the Securities and Exchange
Commission shall be audited by the independent Certified Public
Accountants selected by the Board.
Sec. 12. Separability Clause. — Should any
provisions of this Order be held unconstitutional, no other provisions
hereof shall be affected thereby.
Sec. 13. Effectivity. — This Order shall take
effect immediately.
Done in the City of Manila,
this 19th day of March, in the year of Our Lord, nineteen hundred and
eighty-two.
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Since 19.07.98.