M a n i l a

PRESIDENTIAL DECREE No. 1061 December 9, 1976


WHEREAS, the programs and activities of the Development Academy of the Philippines have expanded greatly since its establishment;

WHEREAS, with the abolition of the Office of the Executive Secretary, there is a need to fill in the vacancy created in the Board of Trustees of the Academy;

WHEREAS, to enable the Academy to continue effectively its programs of development for the country, it is urgently necessary for the Academy to secure additional funds and resources for its operations;

WHEREAS, the expanding development capabilities of the Academy and its present financial requirements indicate the need for the membership and participation of the Land Bank of the Philippines in the financial support, management and policy direction of the Academy;

WHEREAS, therefore, it has become imperative to amend certain portions of the Academy's Charter to enable it to respond to change and to discharge its functions adequately;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution of the Philippines, do hereby order and decree that: Sections 4 and 9 of Presidential Decree No. 205 be, as they are hereby amended to read as follows:

Section 4. Board of Trustees.

The governance and policy direction of the Academy shall be vested in, and its powers exercised by, a Board of Trustees, which shall be composed of TWELVE (12) members, as follows:

(a) The Secretary of Finance

(b) Presidential Assistant

(c) The Secretary of National Defense

(d) The Director-General of the National Economic and Development Authority

(e) The Governor of the Central Bank of the Philippines

(f) The Chairman of the Board of Governors of the Development Bank of the Philippines

(g) The General Manager of the Government Service Insurance System

(h) The Administrator of the Social Security System

(i) The President of the Philippine National Bank

(j) One member, to be appointed for a term of two years by the aforenamed Trustees, who shall be a Muslim Filipino of national prominence

(k) The President of the Land Bank of the Philippines

(l) The President of the Academy

The Trustees shall not receive any compensation or remuneration for their services as such, but they may be reimbursed for actual expenses incurred in discharging the business of the Academy.

Section 9. Financial Support.

Until such time as the Academy shall be financially self-sufficient, its operations shall be financed through the contributions of the founding institutions, parties to the memorandum agreement date May 11, 1973; A Development Academy of the Philippines Endowment Fund shall be created for the purpose of attaining self-support capability for the Academy, on the basis of contributions, investments, and other income accruing to the Academy and its operations, and with the view of terminating the need for annual contributions from the parties to the said memorandum agreement. The endowment fund shall be administered as a trust with the Board of Trustees of the Academy as trustee thereof. THE PRINCIPAL OF THE SAID ENDOWMENT FUND SHALL NOT BE SUBJECT TO IMPAIRMENT AND ONLY THE EARNINGS THEREOF SHALL BE AVAILABLE FOR EXPENDITURES PROVIDED, THAT THE ACADEMY SHALL BE AUTHORIZED TO WITHDRAW FROM THE SAID ENDOWMENT FUND FROM TIME TO TIME AMOUNTS NOT EXCEEDING THREE MILLION PESOS (P3,000,000.00) AND PROVIDED, FURTHER, THAT THE TOTAL OF SUCH AMOUNTS SHALL NOT EXCEED SIX MILLION PESOS (P6,000,000.00) AT ANY ONE TIME AND PROVIDED FINALLY THAT EACH SUCH AMOUNT WITHDRAWN SHALL BE FULLY PAID BACK INTO THE ENDOWMENT FUND OVER A PERIOD NOT EXCEEDING THREE YEARS FROM DATE OF WITHDRAWAL.

For this purpose, the founding institutions are hereby authorized to make contributions in the form of investments to the endowment fund, at the rate of Three million pesos (P3,000,000.00) each in June 1973 and Four and one-half million pesos (P4,500,000.00) in June 1975, provisions of their respective charters to the contrary notwithstanding.

The LAND BANK OF THE PHILIPPINES is hereby included as one of the developmental instrumentalities entitled to participate in the governance and policy direction of the Development Academy of the Philippines and shall support its programs by making financial and other contributions to its operations in the same amounts and under the same conditions as the original founding institutions, effective fiscal year 1977.

Done in the City of Manila, this 9th day of December, in the year of Our Lord, nineteen hundred and seventy-six.

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