EXECUTIVE ORDER NO. 286
EXECUTIVE ORDER NO. 286 - CREATING
THE SEQUESTERED ASSETS DISPOSITION AUTHORITY (SADA) AND FOR OTHER
PURPOSES
WHEREAS,
it is the policy of the State to recover ill-gotten wealth amassed by
the leaders and close associates of the previous regime and to protect
the interest of the people through orders of sequestration;
WHEREAS, by virtue of Executive Order No. 1, the Presidential
Commission on Good Government (PCGG) was created, to assist the
Philippine government in the recovery of the said ill-gotten wealth;
WHEREAS, Executive Order No. 1 further provides that the PCGG shall
provisionally take over the business or corporations, enterprises and
properties amassed by the leaders and close associates of the previous
regime until the transaction leading to such acquisition by the latter,
are declared to be illegal by a court of law with competent
jurisdiction;
WHEREAS, there is an urgent need for an entity to oversee the
disposition of assets and properties recovered by the Government, by
virtue of a decision of a court of law, pursuant to Sec. 26, Article
XVIII of the 1987 Constitution and those voluntarily surrendered to the
PCGG.
NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, by
virtue of the powers vested in me by the sovereign will of the Filipino
people and the Constitution do hereby order:
Section 1. Creation of Authority. — There is hereby
created a Sequestered Assets Disposition Authority, hereinafter
referred to as the Authority, composed of one (1) Chairman and four (4)
members, who are of good moral character and unquestionable integrity,
to be appointed by the President.
The Authority shall be under the administrative supervision of the
Office of the President.
In view of the limited life of the Authority, the emoluments and other
benefits of the Chairman, members and its support staff, as well as its
staffing pattern, shall be fixed by, and submitted to the President for
approval by the Chairman and members and shall be exempt from the OCPC
and other eligibility requirements of the Civil Service
Commission.
Sec. 2. Coverage. — The Authority shall formulate
and implement a program for the disposition of assets, business
enterprises or corporations transferred to the Authority by the PCGG or
pursuant to a decision of a court of law with competent jurisdiction
involving sequestered assets prescribed by Sec. 26, Article XVIII of
the 1987 Constitution.
Sec. 3. Powers and Functions. — The Authority
shall have the following powers and functions:
a)
To dispose of or authorize, subject to the approval
of the President, the disposition of such assets transferred to the
Authority to any party and on such terms as are in the best
interest of the National Government; for such purpose to execute and
deliver on behalf and in the name of the National Government such deeds
of sale, contracts, and other instruments as may be necessary or
appropriate to convey title to such assets;
b) To take
title to, and possession of, and to take such steps as may be necessary
to conserve assets transferred to the Authority by the PCGG or by a
Court of law, including, without limitation, to oversee the management
and operation of corporations or business constituting such assets, and
to file suits and institute proceedings on behalf and in the name of
the National Government for the recovery and protection of such assets;
c) Subject to
the prior approval of the President, to undertake the rehabilitation of
such assets in instances where such rehabilitation is necessary, to
conserve the value of such assets or permit their sale;
d) To engage
such external expertise as may be necessary to fulfill its task;
e) To lease
or own real and personal property to the extent required or entitled by
its functions; to borrow money and incur such liabilities as may be
reasonably necessary to permit it to carry out the responsibilities
imposed upon it under this Order; to receive and collect interest, rent
and other income from the corporations and assets held by it and to
exercise in behalf of the National Government and to the extent
authorized by the President, in respect of such corporations and
assets, all rights, powers and privileges of ownership including the
ability to compromise and release claims or settle liabilities, and
otherwise to do and perform any and all acts that may be necessary or
proper to carry out purposes of this Order: Provided, however, That any
borrowing of the Authority shall be subject to the prior approval of
the President; and
f) To issue
such policies, guidelines, rules and regulations to implement the
objectives of this Executive Order, subject to the approval of the
President.
Sec. 4. Staff Support. — The Authority shall have
a technical staff support, the organization and structure of which
shall be subject to the approval of the Office of the President (OP),
Civil Service Commission (CSC) and the Department of Budget and
Management (DBM).
Sec. 5. Exemptions from Taxes, Fees and Other
Charges. — The provisions of any law to the contrary notwithstanding,
the Authority as well as the sequestered corporations and assets
transferred to it, shall be exempt from all taxes, fees, charges,
imposts, and assessments arising from or occasioned by the passing of
title over such corporations or assets from the said corporations to
the Authority and/or from the National Government to a private
acquisition or buyer imposed by the National Government or any
subdivision thereof: Provided, That in cases where government
institutions acquired the said assets by foreclosure, the non-payment
of similar taxes, fees, charges, imposts, and assessments shall not be
a bar to the consolidation of title in the foreclosing institutions and
the subsequent passing of title to the Authority.
The sale or transfer of such corporations or assets shall not be
enjoined or hindered by the existence of any liens by way of taxes,
fees, charges or other assessments in favor of the government at the
time of sale or transfer: Provided, That the proceeds from such sale or
transfer shall be subject to the tax lien and shall first be applied to
satisfy such obligations secured by such liens.
Sec. 6. Audit. — Generally accepted accounting and
auditing rules and regulations shall be observed in the recording of
the transactions of the Authority.
Sec. 7. No Injunction. — The provisions of any
law to the contrary notwithstanding, no restraining order, temporary or
permanent injunction shall be issued by any court, agency or body for
the purpose of preventing the Authority, its agents or
employees:
a)
from taking possession of, consolidating title to,
or disposing of, assets transferred to the Authority under terms of
this Order; or
b) from
foreclosing upon security or exercising any other right or remedy
available to the Authority under law or contract, to enforce the
payment of obligations acquired by the Authority hereunder.
No restraining order, temporary or permanent injunction shall be issued
by any court, agency or body to prevent any purchaser of assets sold by
the Authority pursuant to this Order from taking possession of, taking
or consolidating title to or disposing of such assets except where the
restraining order, temporary or permanent injunction is sought by the
Authority itself on the grounds of fraud, breach or material
misrepresentation on the part of the purchaser.
Sec. 8. Immunity and Indemnity Provision for
Members of the Authority. —
1)
No civil action shall lie against the Authority and no civil or
criminal action shall prosper against any member of the Authority in
its or his discharge of the tasks and functions contemplated by this
Order, unless: (a) the act or omission complained of clearly relates to
a mandatory provision of this Order, the performance of which is
expressly devolved or delegated to the concerned defendant as a
ministerial duty rather than a discretionary or judgmental function,
and (b) the act or omission is attended by fraud, bad faith, gross
negligence, or violation of the provisions of the Anti-Graft law;
2) In the
event that any member of the Authority or any member of his respective
staff during or after his incumbency is called upon to defend his
actions, related to the performance or non-performance of an act, or
the execution of a transaction contemplated by this Order, before any
administrative, judicial or legislative proceeding, the government
shall provide him with counsel without cost; or shall shoulder
and pay the cost of the counsel of his choice as well as other
costs of litigation for which he may be held liable: Provided, that
where the civil or criminal action is based on (a) and (b) of the
preceding paragraph, and the member of the Authority or of his
respective staff is found guilty of the facts complained of, such
member shall be fully liable to and reimburse the government for all
sums advanced by the government in accordance with the provisions of
this Section to cover cost of counsel and other costs of litigation.
Sec. 9. Reporting Requirements. — The Authority
shall at least on a quarterly basis submit to the President a report on
the status of its assets disposition program, which report shall
include a description of the individual assets disposed of, the
purchases thereof, the consideration received therefrom, and the agreed
terms of payment and such other conditions related to the sale.
The technical staff shall report on a quarterly basis its performance
and financial condition to the Authority; and within three (3) months
from the closure of the books at the end of each fiscal year, submit a
comprehensive annual report through the Authority to the President on
the status of its assets disposition program, which report shall
include a description of the individual corporations and assets
disposed of, the purchases thereof, the consideration received
therefrom, and the agreed terms of payment and such other conditions
related to the sale.
Sec. 10. Proceeds and Income. — The proceeds and
income to be derived from the sale or disposition of all assets under
this Order shall immediately accrue to the National Treasury,
consistent with the provisions of Proclamation No. 131 and Executive
Order No. 229, both dated July 22, 1987.
Sec. 11. Funding. — Funds necessary for the
implementation of this Order is hereby authorized to be released from
the National Treasury from any fund not otherwise appropriated and
thereafter, such amount necessary for the operations of the Authority,
shall be included in the General Appropriations Act.
Sec. 12. Separability Clause. — Any portion or
provision of this Order that may be declared unconstitutional shall not
have the effect of nullifying the other provisions thereof; provided,
however, that such remaining portions can still stand and be given
effect in their entirety to accomplish the objectives of this Order.
Sec. 13. Repealing Clause. — All laws, ordinances,
orders, proclamations, rules, regulations, issuances or parts thereof,
which are inconsistent with any of the provisions of this Executive
Order are hereby repealed or modified accordingly.
Sec. 14. Effectivity. — This Executive Order shall
take effect immediately.
DONE in the City of Manila,
Philippines, this 25th day of July in the year of Our Lord, nineteen
hundred and eighty-seven.
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Since 19.07.98.