WHEREAS, in
conformity with its statutory responsibility and authority over the
currency issue of the country and in conjunction with its other
functions and objectives, the Monetary Board of the Central Bank of the
Philippines authorized the establishment of a Mint, equipped to strike
coins from imported blanks; the Central Bank under Letter of
Instructions No. 171 date February 27, 1974 was likewise directed to
take all necessary steps for the establishment of a Gold Refinery,
suitable in design and capacity for the needs of the country, as soon
as practicable; and, finally, the Central Bank under Presidential
Decree No. 484 dated June 18, 1974 was authorized to operate a Security
Printing Plant for the printing of banknotes, as well as to undertake
such other security printing work as the facilities of the Plant would
permit;chanroblesvirtualawlibrary
WHEREAS, pursuant to Section 131 of Republic Act No. 265, as amended,
the importation by the Central Bank of notes and coins shall be fully
exempt from all Customs duties and consular fees and from all other
taxes, assessments, and charges related to such importation;chanroblesvirtualawlibrary
WHEREAS, in accordance with existing provisions of law, the
importations of the Central Bank of the necessary machineries,
equipment, and raw materials needed in the implementation of said
project are not exempt from Customs duties, taxes, assessments, and
other charges;chanroblesvirtualawlibrary
WHEREAS, the payment of such Customs duties and taxes and other charges
would amount to a substantial sum and could adversely affect the
viability of said projects;chanroblesvirtualawlibrary
WHEREAS, the maximum security requirements intimately related to the
immediate establishment and operation of these projects would render it
inadvisable to comply strictly with the existing policies, rules, and
regulations on public bidding relative to the award of construction and
supply contracts, as well as in the procurement of supplies and
materials needed in the operation of these projects;chanroblesvirtualawlibrary
WHEREAS, the operation of these projects would involve the creation of
substantial number of positions which are highly technical in nature
and/or primarily confidential, and it would not be practicable to
subject appointments thereto to the Civil Service law, rules and
regulations.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do hereby
decree and order the following:cralaw:red
Section 1. Section one of Presidential Decree No. 484
dated June 18, 1974 is hereby amended to read as follows:cralaw:red
"Sec. 1. The Central Bank of the Philippines is
hereby authorized to operate a Security Printing Plant for the printing
of banknotes, as well as to undertake such other security printing work
as the facilities of the Plant would permit, establish and operate a
Gold Refinery, suitable in design and capacity for the needs of the
country; and, establish and operate a Mint. The Monetary Board shall
issue such rules and regulations as may be necessary to carry out the
implementation of this Decree.
"Sec. 1-A. In the establishment and operation of the
Security Printing Plant, the Gold Refinery, and the Mint, the Central
Bank shall be exempt from all forms of taxation and from duties and all
other imposts on all machineries, equipment, raw materials and supplies
that it may import, the provisions of the Tariff and Customs Code, as
amended, the National Internal Revenue Code, as amended, and other
existing laws, rules and regulations to the contrary
notwithstanding. chanroblesvirtualawlibrary
"Sec. 1-B. Such other security printing work for
other Government offices, agencies, instrumentalities, and
Government-owned or control corporations, the requisitions for which
have been duly approved by the Commission on Audit, shall be at cost,
allowing only for a minimal margin to cover administration and
operational expenses. To safeguard such other security printing jobs,
all original designs, engravings, and other printing materials involved
in the security printing shall be kept in a secured vault, under the
joint custody of a committee composed of the Chairman of the Commission
on Audit and the Governor of the Central Bank, who may be represented
for this purpose by their duly authorized representatives and no
design, engraving, or other printing materials shall be removed
therefrom except in the presence of the head of the requisitioning
office requiring the same; Provided, That, in case of front and back
engravings, one of these shall be under the custody of the
requisitioning office, in such manner that no security printing may be
executed without the knowledge and approval of such official.
"Sec. 1-C. Due to the delicate and sensitive nature
of the projects authorized herein and in order that maximum security
shall not therefor be compromised, the Central Bank shall ensure that
access to plans, drawings, and specifications is reduced to the
minimum. For this purpose, the Central Bank, in the construction of the
required building complex and the procurement of necessary machineries,
equipment, raw materials, and services, shall likewise be exempt from
the requirements of general public bidding and other related
requirements, as provided in other existing laws, rules and
regulations. chanroblesvirtualawlibrary
"Sec. 1-D. The Monetary Board, taking into
consideration the technical expertise required and confidentiality of
the duties and complex production processes involved in the printing of
banknotes and other security instruments, the refinement of gold, and
the minting of coins, may declare such positions so determined in these
projects to be either primarily confidential or highly technical in
nature and accordingly, appointments thereto shall be exempt from the
Civil Service Law, rules and regulations.
"Sec. 1-E. After commencement of production by the
Security Printing Plant, the Gold Refinery, and the Mint, the Central
Bank shall undertake a study of the possibilities of export of services
and products of this Plant.
"Sec. 1-F. Any income that may be derived or net
losses incurred from the operations of these projects shall be
distributed in accordance with Sections 41 and 42 Republic Act No. 265,
as amended." chanroblesvirtualawlibrary
Section 2. This Decree shall take effect immediately.
Done in the City of Manila this
27th day of August, in the year of Our Lord, nineteen hundred and
seventy-five.
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