CREATING AND ESTABLISHING THE DEVELOPMENT ACADEMY OF THE PHILIPPINES, DEFINING ITS POWERS, FUNCTIONS, AND RESPONSIBILITIES, AND FOR OTHER PURPOSES.

WHEREAS, on May 11, 1973, the Central Bank of the
Philippines, the National Economic and Development Authority, the Development
Bank of the Philippines, the Government Service Insurance System, the Social
Security System, and the Philippine National Bank, as developmental
instrumentalities of the Government dedicated to the promotion of wealth and
welfare in the New Society, have entered into a memorandum agreement to
establish, as their joint project, the Development Academy of the
Philippines;

WHEREAS, the Development Academy of the Philippines was
conceived by the said founding institutions for the purpose of promoting and
supporting the developmental efforts of the country by carrying out human
resource development programs designed to instill development perspectives and
advance management capability in the leadership of key sectors of the Government
and the economy, as well as research, analysis, and publications programs of
depth and quality to service the requirements of development planning,
management, and implementation at both the macro and project levels; and

WHEREAS, in order to effectively fulfill its purposes, it is
imperative that the Development Academy of the Philippines be endowed with
juridical status and conferred with certain privileges, to the end that its
activities be undertaken with greater vigor, resources and direction;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the Constitution of the
Philippines, and pursuant to Proclamation No. 1081, dated September 21, 1972,
and General Order No. 1, dated September 22, 1972, do hereby create and
establish a body corporate to be known as the Development Academy of the
Philippines, which shall operate in accordance with the following
provisions:

SECTION 1. Purposes.

1. To foster and support the developmental forces at work in the nation’s
   economy through selective human resource development programs, research,
   data-collection, and information services, to the end that optimization of
   wealth may be achieved in a manner congruent with the maximization of public
   security and welfare;
2. In line with the foregoing objective, to promote, carry on and conduct
   scientific, interdisciplinary, and policy-oriented research, education,
   training, consultancy, and publications in the broad fields of economics, public
   administration, and the political and social sciences generally involving the
   study, determination, interpretation and publication of economic, political and
   social facts and principles bearing upon development problems of local, national
   or international significance;
3. To discharge a regional role in initiating and catalyzing exchange of ideas
   and expertise on development activities in the region of Asia and the Far East.

SEC. 2. Corporate Powers.

To fulfill its purposes, the Academy shall have the following powers:

1. To adopt, alter and use a corporate seal;

2. To take and hold by bequest, devise, gift, purchase, or lease, either
   absolutely or in trust for any of its purposes, any property, real or personal,
   without limitation as to amount or value; to convey such property and to invest
   and reinvest any principal, and deal with and expend the income and principal of
   the said Academy in such manner as will promote its objects;
3. To collect, receive and maintain a fund or funds, by subscription or
   otherwise, and to apply the income and principal thereof to the promotion of its
   aims and purposes hereinbefore set out;
4. To contract any obligation, or enter into any agreement necessary or
   incidental to the proper management of its corporate powers;

In general, to carry on any activity and to have and exercise all of the
powers conferred by the laws upon private or government-owned or controlled
corporations; and to do any and all of the acts and things herein set forth to
the same extent as juridical persons could do, and in any part of the world, as
principal, factor, agent, or otherwise, alone or in syndicate or otherwise in
conjunction with any person, entity, partnership, association or corporation,
domestic or foreign.

SEC. 3. Domicile.

The principal office of the Academy shall be established at Tagaytay City.
The Academy may also have branches or offices at such other place or places,
within or without the Philippines, as the operations and activities of the
Academy may require.

SEC. 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 fifteen
members, as follows:

1. The Secretary of Finance
2. The Executive Secretary
3. The Secretary of National Defense
4. The Director General of the National Economic and Development Authority
5. The Governor of the Central Bank of the Philippines
6. The Chairman of the Board of Governors of the Development Bank of the
   Philippines
7. The General Manager of the Government Service Insurance System
8. The Administrator of the Social Security System
9. The President of the Philippine National Bank
10. One member, to be appointed for a term of two years by the aforenamed
    Trustees, who shall be a Muslim Filipino of national prominence
11. 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.

SEC. 5. Responsibilities of the Board.

In the exercise of the powers granted to it under this Act, the Board of
Trustees shall:

1. Prepare and adopt such rules and regulations as it considers necessary for
   the effective discharge of its responsibilities;
2. Authorize the fields of human resource development, investigation and major
   studies to which the available funds are allocated, without determining,
   controlling or influencing the methodology of particular investigations or the
   conclusions reached;
3. Constitute the Executive Committee, as hereinafter defined;
4. Appoint the President, and one or more Vice Presidents to assist the
   President, in the administration of the affairs of the Academy;
5. To review periodically the administration and the programs of the Academy.

SEC. 6. Executive Committee.

There shall be an Executive Committee consisting of the President of the
Academy and not fewer than three nor more than five other members to be elected
by the Board of Trustees from the membership of the Board. Members of the
Executive Committee, other than the President of the Academy, shall hold office
for terms of two years, unless at the time of election a shorter term is
specified, and shall be eligible for re-election. The Board shall elect the
Chairman of the Executive Committee from the membership of the Committee.

SEC. 7. Functions of the Executive Committee.

The Executive Committee shall administer the affairs of the Academy in
accordance with such functions, powers and responsibilities its may be delegated
by the Board of Trustees. In the exercise of such delegated functions, powers
and responsibilities, the Executive Committee shall have all powers of the
Board, excepting the power to fill a vacancy on the Board and to amend the rules
and regulations of the Academy.

SEC. 8. President of the Academy.

The President of the Academy shall be its chief executive officer, who shall
be appointed by the Board of Trustees, and receive such compensation and
remuneration to be fixed by the Board. His powers and duties are:

1. To submit for the consideration of the Board of Trustees and the Executive
   Committee the policies and measures which he believes to be necessary to carry
   out the purposes of the Academy;
2. To recommend, coordinate and administer the programs and projects of the
   Academy;
3. To direct and supervise the operations and internal administration of the
   Academy, and to delegate administrative responsibilities in accordance with the
   rules and regulations of the Academy;
4. To submit an animal report to the Board of Trustees setting forth the work
   of the Academy during the year, its financial operations and status, and a
   program and budget for the ensuing year; and
5. To exercise such other powers and to discharge such other functions as may
   be vested in him by the Board of Trustees and the Executive Committee.

SEC. 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 dated 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: Provided, That the principal of said Endowment Fund shall not
be subject to impairment: And provided, furthermore, That only the
earnings thereof shall be available for expenditure. 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) each in June 1973 and four and one-half-million pesos (P4,500,000)
in June 1975, provisions of their respective charters to the contrary
notwithstanding.

SEC. 10. Expenditures and Disbursements.

Expenditures and disbursements made by the Academy in the conduct of its
affairs shall not be subject to the procurement requirements and restrictions
imposed by existing law upon government agencies,
instrumentalities and
government-owned or controlled corporations.

SEC. 11. Staff Appointments.

Any provision of law to the contrary notwithstanding, appointments to the
administrative or research staff of the Academy may be on a part-time basis, and
shall be exempt from the requirements and restrictions of the Civil Service Law,
Laws, rules and regulations on position-classification and salary
standardization and Section Two Hundred Fifty-Nine of the Revised Administrative
Code: Provided, That any government retiree employed in the Academy
shall not be required to reimburse or refund any gratuity received from the
Government nor shall any pension or annuity to which he is entitled be suspended
or reduced on account of his employment in the Academy;

SEC. 12. Exemption from Taxes.

Any provision of existing laws to the contrary notwithstanding, any donation,
contribution, bequest, subsidy or financial aid which may be made to the Academy
shall be exempt from taxes of any kind, and shall constitute allowable
deductions in full from the income of the donors or givers for income tax
purposes.

The Academy, its assets, acquisitions, income, and its operations and
transactions shall be exempt from any and all taxes, fees, charges, imposts,
licenses and assessments, direct or indirect, imposed by the Republic of the
Philippines or any of its political subdivision or taxing authority thereof,
except import taxes, duties and fees.

SEC. 13. Disposition of Assets upon
Dissolution.

In the event of dissolution of the Academy, its remaining assets, after
return of the principal of the Endowment Fund to the contributing founding
institutions, and payment of other liabilities, shall be disposed of and turned
over to any foundation or institutions dedicated to the same or similar pursuits
as the Academy, or to the Republic of the Philippines or any of its agencies or
instrumentalities, as the Board of Trustees may determine.

SEC. 14. Transfer of Functions, Properties and
Appropriations of the Productivity and Development Center.

All the functions vested in and conferred upon the Productivity and
Development Center of the National Economic and Development Authority, as well
as all assets, funds and properties belonging to it, including its budgetary
appropriations, are hereby transferred to the Academy, which shall execute,
administer, dispose of and handle such functions, assets, properties and
appropriations in accordance with the provisions of this Decree.

Done in the City of Manila, this 6th day of June, in the year of Our Lord,
nineteen hundred and seventy-three.

			(Sgd.) FERDINAND E. MARCOS President Republic of the Philippines
	By the President:
	(Sgd.) ROBERTO V. REYES
		Assistant Executive Secretary