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LETTER OF INSTRUCTIONS
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LETTER OF INSTRUCTIONS NO. 490 |
The Secretary, Department of Justice
The Secretary, Department of Local Government
and Community Development
The Governor, Central Bank of the Philippines
The President, Philippine National Bank
The President, Land Bank of the Philippines
The Chairman, Civil Service Commission
The Chairman, National Police Commission
WHEREAS, in line with the nation's goal of food self-sufficiency, there is need to maintain the level of rice self-sufficiency attained during the third year of Masagana 99;
WHEREAS, the majority of our rice farmers need non-collateral and low-interest loans to enable them to produce profitably and continue planting;
WHEREAS, the liquidity of the banking institutions must be protected in order to keep credit lines open to as Masagana 99 supervised credit scheme and to maintain the momentum of accelerated production;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order:
1.
The Department of Justice to :
(a)
Issue circulars to provincial and city fiscals to
give top priority to Masagana 99 cases, and deputize all provincial,
city, and municipal attorneys to assist fiscals in the filing of such
cases;
(b) Waive the
10% docketing fee charged by courts for
the filing of Masagana cases; and
(c) Allow the
filing of cases against delinquent
Masagana borrowers who happen to be elective government officials,
without the need for prior clearance of each case from the Department
of Justice.
2. The National Police Commission to order local police authorities to assist in the issuance of subpoenas to delinquent borrowers and to expedite arrests in cases where warrants of arrest have been issued.
3. The Department of Local Government and Community Development to allow Samahang Nayons to take over farm operations of delinquent Masagana 99 farmers until such time as their loans are fully paid.
4. The Central Bank to:
(a)
Exclude the uncollected Masagana 99 accounts
undergoing court action from the computation of total past due
obligations of rural banks to the Central Bank, so that in the interim,
banks with large amounts of arrearages can avail of CB rediscounting
facilities and can therefore, continue lending to deserving borrowers;
(b) Instruct
rural banks to increase their collection
force corresponding to the increase in the volume of their Masagana 99
loan portfolio. Non-compliance will mean the forfeiture of the 2%
service fee charged to borrowers;
(c) Assist the
PNB in meeting the NGA's additional
requirement of P200 million (which increases NGA's credit line from
P400 million to P600 million) in order to enable the NGA to effectively
implement LOI 372, which requires farmers to pay their loans in kind.
5. The Land Bank of the Philippines to make the Agricultural Guarantee Fund (AGF) serve the purpose for which it was established by:
(a)
Relaxing its restrictive requirements in
connection with processing of guarantee claims against the AGF;
(b) Studying,
jointly with the Department of
Agriculture and other agencies concerned, the establishment and
financing of a crop and livestock insurance program that will protect
our farmers to the extent possible from national calamities, either as
an addition to — or as a replacement of — the AGF.
(c) Expediting
the settlement of guarantee claims
against the AGF and allowing banks to write off these guaranteed
uncollected accounts from their books.
6. The Civil Service Commission to devise and enforce progressive disciplinary measures (in the form of suspension, then dismissal from service) against maliciously defaulting elective and appointive government officials who are Masagana borrowers. In this connection, I hereby order the automatic deduction from the delinquent official's salary of the amount equal to his unpaid obligation. Refusal to settle past due accounts without any valid reason may also subject said official to court action.
7. The Department of Agriculture to provide all its farm management technicians in the drive for collections and restructuring of loans.
The institutions concerned are instructed to adopt such measures as may be necessary and appropriate to implement and achieve the objectives of these instructions.
All provisions of other Letters of Instructions inconsistent with these orders are hereby repealed or modified accordingly.
This Letter of Instructions shall take effect immediately.
Done in the City of Manila, this 27th day of December, in the year of Our Lord, nineteen hundred and seventy-six.
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Since 19.07.98.