EXECUTIVE ORDER NO. 1039 - CREATING THE WOOD INDUSTRY DEVELOPMENT AUTHORITY, DEFINING ITS POWERS AND FUNCTIONS, PROVIDING FUNDS THEREFOR, AND FOR OTHER PURPOSES

WHEREAS, there is a need to maximize wood industry production and capacity utilization and to develop markets for processed wood products;

WHEREAS, there is a need to optimize the utilization of the country’s limited timber resources in order to stabilize  and improve the wood resources base;

WHEREAS, there is a need to establish, maintain and operate economic and efficient forest-based processing industry;

WHEREAS, there is a need to develop the wood industry’s capability to respond to changing economic and marketing conditions;

WHEREAS, there is a need to ensure the viability of the wood industry in order for it to continue providing socio-economic contributions to the country;

WHEREAS, it is the policy of the State to ensure the proper management and judicious utilization of forest resources for the needs and enjoyment of the people, to enhance and sustain ecological balance, and to safeguard the interest of the future generation of the Filipinos;

WHEREAS, there is a need to implement a wood industry rationalization program to establish a stable, efficient and viable industry in the face of diminishing raw materials, financial constraints and inadequate market outlets;

WHEREAS, it is urgently necessary to provide a strong organizational framework to effect the rationalization and effective regulation of the wood industry;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution and pursuant to Presidential Decree No. 1416, as amended, do hereby order the following:

Section 1. Creation/Purpose and Objectives of the WOOD INDUSTRY DEVELOPMENT AUTHORITY — There is hereby created a body corporate to be known as the Wood Industry Development Authority, hereinafter referred to as the Authority, attached to the Ministry of Natural Resources, which shall be responsible for the regulation, control, supervision and development of the wood industry of the Philippines in all its aspects.

Sec. 2. Jurisdiction of the Authority — The Authority shall have jurisdiction over the operations of licenses, lessees and permittees for the taking or use of forest products, the establishment of industrial tree plantations, tree farms and agro-forestry plantations, the establishment and operations of sawmills, veneer and plywood mills and other wood processing plants utilizing logs, wood products, wood waste, and residues and non-timber forest products.

Sec. 3. Powers and Functions of the Authority — In furtherance of its purposes and objectives, the Authority shall have the following powers and functions:

(a) To adopt and use a corporate seal;

(b) To sue and be sued in its corporate name;

(c) To succeed by its corporate name;

(d) To adopt its by-laws and promulgate such rules and regulations as may be necessary or proper to implement this Executive Order, and to amend or repeal the same from time to time;

(e) To invest in, purchase or otherwise acquire, own, hold, use, lease, mortgage, pledge, encumber, sell, assign, convey, exchange, or otherwise deal in real and/or personal properties of whatever kind and nature, or any interest therein, including shares of stock, bonds, notes, securities and other evidences of indebtedness of natural or juridical persons, whether domestic or foreign and whether government or private;

(f) To formulate and adopt a rationalization program for thentegrated development of the wood industry to ensure its long-term viability;

(g) To formulate and establish comprehensive policy guidelines for the management and utilization of forest resources;

(h) To implement all forestry laws pertaining to the utilization of timber and other forest products, including the issuance of licenses, leases and permits, and to collect the necessary fees thereof;

(i) To promote diversification of forest uses to develop a strong and viable forest-based industry for the optimal utilization of the country’s forest resources;

(j) To provide adequate processing and delivery mechanisms to meet the needs of the country in terms of forest goods and services;

(k) To regulate, supervise, and, when necessary, engage in the manufacturing and processing including handling, transportation, storage, mechanical and chemical processing, and marketing of all forest products in both the domestic and foreign markets;

(l) To develop in coordination with other government agencies domestic and foreign markets for processed wood products;

(m) To initiate, establish and promote small and medium scale forest-based industries in coordination with other government entities;

(n) To negotiate, enter into, make and execute contracts of any kind with any person, firm or corporation, with the Philippine Government or its agencies, or with any foreign Government, subject to existing laws, including but not limited to the export  of any forest product, under such terms and conditions as may be necessary, proper or incidental to the attainment of its purposes and objectives;

(o) To borrow from local and international financing institutions, and to issue bonds, subject to existing rules and regulations of the Central Bank of the Philippines and the Ministry of Finance, for the purpose of financing programs and projects deemed necessary for the early attainment of its purposes and objectives;

(p) To formulate and recommend for adoption by financial institutions, credit programs to support production, processing, and marketing of forest-based products;

(q) To receive and administer funds provided by law and draw, with the approval of the President of the Philippines, funds from existing appropriations as may be necessary in support of its programs, and to accept donations, grants and assistance from all kinds of international and local private foundations, associations or entities and to administer the same in accordance with the instructions or directions of the donor, or in default thereof, in the manner it may, in its discretion, determine;

(r) To exercise all the powers of a corporation under the general corporation law, insofar as such powers are not inconsistent with the provisions of this Executive Order; and

(s) To exercise such other powers and functions and perform such other acts as may be necessary, proper or incidental to the attainment of its purposes and objectives;

Sec. 4. Transfer of Functions — The Presidential Committee on Wood Industry Development is hereby abolished and all its functions and powers are transferred to the Authority. All functions and powers of the Bureau of Forest Development pertinent to the regulation, control, supervision and development of the forest-based industry are also hereby transferred to the Authority.

Sec. 5. Governing Body.— The Authority shall be governed, and its powers shall be exercised, by a Board of Directors, hereinafter referred to as the Board, which shall be composed of the Minister of Natural Resources as ex officio Chairman, the Minister of Trade and Industry, the Minister of Finance, the Minister of National Defense, the Governor of Central Bank of the Philippines and the Administrator of the Authority, as ex officio members, and one (1) representative from the private sector to be appointed by the President of the Philippines, upon the recommendation of the Minister of Natural Resources. The appointive member shall hold office for a term of three (3) years, unless sooner removed for cause, until his successor shall have been duly appointed and qualified.

The ex officio members of the Board, if unable to attend to a board meeting, may designate their respective alternates whose acts shall be considered the acts of the principals.

The members of the Board shall elect a Vice-Chairman who shall act as Chairman in case of the absence, inability or temporary incapacity of the Chairman; Provided, That in the absence of the Chairman and the Vice-Chairman, the Board shall elect a temporary presiding officer.

The Board shall meet regularly at least twice a month or as often as the exigencies of the service demand. The presence of at least four (4) members shall constitute a quorum, and the majority vote of the members present, there being a quorum, shall be necessary for the adoption of any resolution, rule, regulation, decision or any other act of the Board.

The members of the Board, including the Chairman, shall receive per diem, as the Board may determine, for each Board meeting actually attended; Provided, That such per diem shall not exceed Two Thousand Pesos (P2,000.00) during any one month for each member. The said members shall also be entitled to reimbursable transportation and representation allowances in going to and coming from board meetings and transacting official business for the Authority.

Sec. 6. Powers and Functions of the Board. — The Board shall have the following powers and functions, among others:

(a) To define and approve the programs, plans, policies and procedures and guidelines for the Authority in accordance with its purposes and objectives, and to control the management, operation and administration of the Authority;

(b) To approve the Authority’s organizational structure, staffing pattern, operating and capital expenditures, and financial budgets, prepared in accordance with the corporate plan of the Authority;

(c) To approve salary ranges, benefits, privileges, bonuses, and other terms and conditions of service for all officers and employees of the Authority, upon recommendation of the Administrator;  

(d) To appoint, transfer, promote, suspend, remove or otherwise discipline any subordinate officer or employee of the Authority, upon recommendation of the Administrator;

(e) To create such committee or committees and appoint the members thereof, as may be necessary or proper for the management of the Authority or for the attainment of its purposes and objectives;

(f) To formulate a comprehensive rationalization program for the development of wood industry;

(g) To prescribe specific policies in the determination of just and reasonable fees and other charges relative to the operations of the wood industry; and

(h) To exercise such other powers and functions and perform such other acts as may be necessary or proper for the attainment of the purposes and objectives of the Authority, or as may be delegated by the Minister of Natural Resources.

Sec. 7. Organization and Management. — The management of the Authority shall be vested in  an Administrator to be appointed by the President of the Philippines upon the recommendation of the Board.

The Board shall be assisted by such Deputy Administrators as the Board may prescribe, all of whom shall be appointed or removed by the Board.

Sec. 8. Powers and Duties of the Administrator. — The Administrator shall have the following function, and powers and duties:

(a) To direct and manage the affairs of the Authority in accordance with the policies of the Board;

(b) Within the limits of the authority delegated to him by the Board, to execute contracts, incur obligations, acquire and dispose of assets and deliver documents on behalf of the Authority;

(c) To implement and enforce policies, decisions, orders, rules and regulations adopted by the Board; and

(d) To exercise such other powers and functions and perform such other duties as may be authorized or assigned by the Board.

Sec. 9. Appropriation. — To carry out the purposes and objectives of this Order, all unexpended funds for the calendar year 1985 out of funds already stipulated for the regulation, control, supervision and development of the wood industry of the Bureau of Forest Development, and all unexpended funds appropriated for the Presidential Committee on Wood Industry Development, are hereby transferred to the Authority. Thereafter, the succeeding appropriations of the Authority shall be included in the General Appropriations Act; Provided, That the returns from its capital investments and income derived from its operations shall be expended by the Authority to carry out its activities, and shall not accrue to the General Fund.   lex

Sec. 10. Applicability of Civil Service Law. — The Authority of its officer and employees shall be subject to the Civil Service Law, rules and regulations; Provided, That technical personnel shall be selected on the basis of merit and fitness to be determined in accordance with such policies and guidelines as may be approved by the Board.

Sec. 11. Auditor. — The Chairman of the Commission on Audit shall be the ex officio Auditor of the Authority. For this purpose, he may appoint a representative who shall be the auditor of the Authority, together with the necessary personnel to assist said representative in the performance of his duties. The number and salaries of the auditor and said personnel shall be determined by the Chairman  of the Commission on Audit, subject to the rules and regulations of the Commission on Audit. Said salaries and all other expenses of maintaining the auditor’s office shall be paid by the Authority.

The Auditor shall, as soon as practicable, but not later than three (3) months after the accounts have been submitted to audit, send an annual report to the Board. The Board shall also submit such periodic or special reports as the Board may deem necessary or proper.

Sec. 12. Legal Counsel. — The Government Corporate Counsel shall be the Legal Counsel of the Authority; Provided, That the Authority may establish its own legal department under the supervision and control of the Government Corporate Counsel to handle the day-to-day legal matters affecting the affairs of the Authority. For the performance of his duties and the services of the Legal Staff of the Office of the Government Corporate Counsel, the Board shall appropriate, and the Administrator shall remit, such amount as shall be determined by the Government Corporate Counsel.

Sec. 13. Separability Clause. — The provisions of this Executive Order are hereby declared separable. If any portion hereof shall be held invalid or unconstitutionality shall not affect the other provisions which shall remain in full force and effect; Provided, That the latter provisions can stand alone and be enforced in their entirely.

Sec. 14. Effectivity. — This Executive Order shall take effect immediately.

Done in the City of Manila, Philippines, this 10th day of July in the year of Our Lord, nineteen hundred and eighty-five.

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