EXECUTIVE ORDER NO. 18
EXECUTIVE ORDER NO. 18 - CREATING A
SUGAR REGULATORY ADMINISTRATION
WHEREAS, the sugar industry is a
major component of the socio-economic and political structure of the
country;
WHEREAS, the present laws restricting free enterprise within the sugar
industry have not only stifled the industry’s growth, development and
stability, but more importantly, have placed it in the vicious sphere
of monopoly;
WHEREAS, national interest requires that the free market forces should
be allowed to prevail in the marketing of sugar although the production
of the same should be regulated and supported by an innovative research
and development program and a socio-economic program which will
primarily be the private sector’s responsibility.
NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, do
hereby order:
Section 1. Declaration of Policy. — It shall be the
policy of the State to promote the growth and development of the sugar
industry through greater and significant participation of the private
sector, and to improve the working condition of laborers.
Sec. 2. The Sugar Regulatory Administration. — In
order to carry out the foregoing policy, a Sugar Regulatory
Administration under the Office of the President is hereby created with
the following objectives:
(A)
To institute an orderly system in sugarcane production for the stable,
sufficient and balanced production of sugar, for local consumption,
exportation and strategic reserves;
(B) To
establish and maintain such balanced relation between production and
requirement of sugar and such marketing conditions as will insure
stabilized prices at a level reasonably profitable to the producers and
fair to consumers;
(C) To promote
the effective merchandising of sugar and its by-products in the
domestic and foreign markets so that those engaged in the sugar
industry will be placed on a basis of economic viability;
(D) To
undertake such relevant studies as may be needed in the formulation of
policies and in the planning and implementation of action programmes
required in attaining the purposes of objectives set forth under this
Executive Order.
Sec. 3. Powers and Functions. — The Sugar
Regulatory Administration shall have the following powers and functions:
(A)
To recommend the establishment of a sugar production, coefficient and a
production quota which shall be attached the land for each planter;
(B) To
institute regulations for implementing, controlling and monitoring the
production quotas;
(C) To
establish domestic, export and reserve allocation;
(D) To explore
and expand the domestic market and foreign markets for sugar and
by-products, to assure mutual benefits to consumers and producers, and
to promote and maintain proper balance of production of sugar and its
by-products;
(E) To
institute, implement and regulate an orderly system of quedanning,
disposition and withdrawals of various forms of sugar from warehouses;
(F) To
evaluate and recommend to the President new projects involving the
production of sugar and its by-products and another products derived
from sugarcane and sugar;
(G) To issue
permits and licenses and collect corresponding fees and levies on the
processing and manufacture of sugar and its by-products and another
products derived from sugarcane and sugar;
(H) To enter,
make and execute routinary contracts may be necessary for or incidental
to the attainment of its purposes between any persons, firm, public or
private, and the Government of the Philippines;
(I) To do all
such other things, transact such other businesses and perform such
functions directly or indirectly necessary incidental or conducive to
the attainment of the purposes of the Sugar Regulatory Administration.
Sec. 4. Governing Body; Sugar Board. — All
corporate powers of the Sugar Regulatory Administration shall be vested
in, and exercised by, the Sugar Board. The Board shall be composed of
an Administrator, who shall acts as its chairman, to the appointed by
the President of the Philippines, and two (2) members. The two members
of the Board shall likewise be appointed by the President of the
Philippines upon the recommendation of the sugar industry, with one
member representing the millers and the other representing the planters.
The Sugar Board shall meet in regular session once a month. The Board
may be called by the Chairman of both private sector’s representatives
to a special session as the need arises.
The Administrator shall be the Chief Executive Officer of the Sugar
Regulatory Administration.
Sec. 5. Tenure. — The Administrator shall hold
office at the pleasure of the President of the Philippines. The two
members from the private sector shall hold office for a period of three
(3) years unless sooner removed for cause. No reappointment of the
Members shall be made immediately upon termination of their respective
terms of office. Any Member appointed to a vacancy shall serve only for
the unexpired term of the Member whom he succeeds.
Sec. 6. Functions of the Sugar Board. — The Board
shall have the following powers of the functions:
(A)
To prescribe, amend, modify, or repeal rules and regulations, governing
the manner in which the general business of the Board shall be
exercised subject to the approval of the President;
(B) To
establish policies pertaining to the sugar and sugarcane production
control, quedanning of sugar produced; withdrawals from sugar
warehouses; issuance of permits and licenses in the processing and
manufacture of raw sugar, refined and other classes of sugar; issuance
of permits and licenses and other related issues pertaining to the
specific and general powers prescribed in this Executive Order;
(C) To enter
into contracts, transactions, or undertakings of whatever nature which
are necessary or incidental to its functions and objectives with any
natural or juridical persons and with any foreign government
institutions, private corporations, partnership or private individuals;
(D) To fix the
compensation of the Administrator and the other officers and employees
of the Sugar Regulatory Administration, subject to the approval of the
Office of the President of the Philippines;
(E) To approve
the annual and/or such supplemental budgets of the Sugar Regulatory
Administration as may be submitted to it by the Administrator from time
to time; and
(F) To perform
such other duties, like the preparation of a study on particular issues
regarding the sugar industry, as may be assigned to it by the President
of the Philippines.
Sec. 7. Appointment and Promotions. — In the
appointment and promotion of officers and employees, merit and
efficiency shall serve as basis, and no political test or other
qualifications shall be prescribed and considered for such appointments
or promotions. Any person appointed by the Sugar Regulatory
Administration in violation of this prohibition, shall be removed from
office by the Office of the President.
Sec. 8. Application of Civil Service Law and
Regulation and Compensation and Position Classification. — All officers
and employees of the Sugar Regulatory Administration shall be subject
to the Civil Service Law, rules and regulations, except those whose
positions may be declared by the Board as policy determining, primarily
confidential or technical in nature. The rules and regulations issued
by the Office of Compensation and Position Classification shall be
applicable to all officers and employees of the Sugar Regulatory
Administration.
Sec. 9. Audit Personnel. — The Chairman of the
Commission on Audit shall appoint a representative who shall be Auditor
of the Sugar Regulatory Administration and the necessary personnel to
assist the said representative in the performance of his duties. The
salaries of the Auditor and his personnel shall be determined and paid
by the Commission on Audit.
Sec. 10. Audit Report. — The financial
transactions of the Sugar Regulatory Administration shall be audited in
accordance with law, administrative regulations and the principles and
procedures applicable to commercial corporate transactions. A report of
audit for each fiscal year shall be submitted by the Auditor, through
the Chairman of Commission on Audit, to the Sugar Regulatory
Administration and copies thereof shall be furnished the President of
the Philippines.
Sec. 11. Financing. — Until otherwise provided, as
directed and ordered by the President of the Philippines, the Sugar
Regulatory Administration shall continue to receive the proceeds of
levies, charges and other impositions as now granted by law, decree
and/or executive order, to the Philippine Sugar Commission.
Sec. 12. Suspension of Sole Trade Authority. — The
Authority granted by Presidential Decree No. 1971, dated February 21,
1985, and No. 1984, dated October 4, 1985, to Philippine Sugar
Marketing Corporation (PHILSUMA) to act as a sole buying and selling
agency for export sugar shall cover only all such sugar as of crop year
1985-1986. Thereafter, the said authority shall cease, and free
enterprise shall be observed in the marketing of domestic and export
sugar. The exemption from R.A. No. 1180, as amended by PD No. 714,
granted by Sec. 5, PD No. 1984, to PHILSUMA is hereby withdrawn.
Sec. 13. Transitory Provisions. — The Philippine
Sugar Commission (PHILSUCOM) is hereby abolished. The Sugar Regulatory
Administration may retain some of the personnel of said agency as it
may deem necessary. Any public officer or employee separated from
service as a result of the abolition of PHILSUCOM effected under this
Executive Order shall, if entitled the laws then in force, receive the
retirement and other benefits accruing thereunder. In case of lack of
funds to support the retirement and separation pay of affected officers
and employees of the Philippine Sugar Commission, a special fund shall
be set aside by the Ministry of Budget for the purpose.
Assets and record that, as determined by the Sugar Regulatory
Administration, as required in its operation are hereby transferred to
the Sugar Regulatory Administration.
Although the Philippine Sugar Commission is hereby abolished, it shall
nevertheless continue as a judicial entity for three (3) years after
the time when it would have been so abolished. For the purpose of
prosecuting and defending suits by or against it and enabling it to
settle and close its affairs, to dispose of and convey its property and
to distribute its assets, but not for the purpose of continuing the
functions for which it was established, under the supervision of the
Sugar Regulatory Administration.
Sec. 14. Repeal or Modification. — Any provision
of law, decree, executive orders or other issuances inconsistent with
the Executive Order are hereby repeal or modified accordingly.
Sec. 15. Severability. — If any provision of this
Executive Order shall be held unconstitutional, the other provisions
shall be not affected.
Sec. 16. Effectivity. — This Executive Order shall
take affect immediately.
Done in the City of Manila,
this 28th day of May, in the year of Our Lord, nineteen hundred and
eight-six.