CONVERTING THE ILOCOS REGION FUELWOOD DEVELOPMENT PROGRAM CREATED UNDER THE LETTER OF INSTRUCTIONS NO. 866 INTO A CORPORATION AS A SUBSIDIARY OF THE PHILIPPINE VIRGINIA TOBACCO …

WHEREAS, Letter of Instruction
No. 866 dated May 23, 1979 directed the Philippine Virginia Tobacco
Administration and the Ministry of Natural Resources to vigorously pursue the
implementation of the Ilocos Region Fuelwood Development Program (IRFDP).

WHEREAS, it is imperative to
strengthen the Program to improve its organizational capability to facilitate
the attainment of its objectives.

NOW, THEREFORE, I, FERDINAND E.
MARCOS, President of the Philippines, by virtue of the powers vested in me by
the Constitution of the Philippines, in order to effect the desired changes and
progress in the social, economic and political structure of our Society do
hereby order, direct and make as part of the law of the land, the following:

Section 1. Conversion of the
IRFDP to Virginia Tobacco Fuelwood Corporation (VTOFCO). – The Ilocos
Region Fuelwood Development Program created under the Letter of Instructions
No. 866, dated May 23, 1979 is hereby converted and reconstituted into a body
corporate as a subsidiary of PVTA to be known as the VTOFCO.

Section 2. Domicile. –
The principal office of the Corporation shall be in Metro Manila but branches
may hereafter be established in such places as the needs of VTOFCO may require.

Section 3. Corporate
Existence. – The VTOFCO shall exist for fifty (50) years subject to
extension for another fifty (50) years.

Section 4. The Board of
Directors. – The powers and functions of the Corporation shall be exercised by
a Board of Directors, hereinafter referred to as the Board, which shall be
composed of the following:

Chairman – The Chairman of the
Philippine Virginia Tobacco Administration shall be the ex-officio Chairman of
the Board;

Vice-Chairman – The Minister of
Natural Resources shall be the ex-officio Vice-Chairman of the Board;

The following shall be
ex-officio members:

a) The Provincial Governor of
Abra;
b) The Provincial Governor of Ilocos Norte;
c) The Provincial Governor of Ilocos Sur;
d) The Provincial Governor of La Union
e) The Director of the Bureau of Forest Development;
f) The Director of the Bureau of Lands;

One (1) member to be appointed
by the President who shall have a term of office of three (3) years.

Five (5) Members of the Board
shall be necessary to constitute a quorum.

Section 5. General Objectives.
– The VTOFCO shall undertake all manner of activity, business or
development projects for the establishment of a reliable fuelwood and related
industries that shall include but not limited to the following objectives:

a) Operate production and
marketing activities or services to ensure adequate and continuous supply of
fuelwood for the Virginia tobacco industry and domestic markets;

b) Adopt measures vital to the
growth and development of the fuelwood and related industries capable of
contributing to their proper shares in the economy as a whole;

c) Provide comprehensive
direction to the public sector in the management and development of forest
resources on a fully commercial scale; and

d) Promote the adoption of
effective strategies and systems to limit the indiscriminate use and
destruction of the forest lands of the country.

Section 6. Specific
Objectives.

a) Directly engage in the
production of fuelwood by establishing nurseries and plantations primarily in
the Virginia tobacco producing areas or in such areas or other places
accessible to the industry of feasible to the production of fuelwood;

b) Undertake harvesting and/or
processing operations of fuelwood products and its by-products, and to put up
the necessary infrastructures and support facilities;

c) Develop and implement a
marketing program to ensure efficient distribution of fuelwood products and its
by-products raised from its plantation areas;

d) Undertake studies and
encourage adoption, in the production, harvesting, processing and marketing
phases, of such proven strategies and systems as to promote the fuelwood and
related industries and safeguard the forest resources as renewable source of
energy and for ecological reasons; and

e) Promote policy
recommendations for the management of the country’s forest resources.

Section 7. General Powers.
– The VTOFCO is hereby authorized to adopt and use a corporate seal which shall
be judicially noticed; to make contracts, to lease or own real personal
properties and to sell or otherwise dispose of the same; to sue and to be sued.

Section 8. Specific Powers.
– In addition to the powers vested in the defunct Ilocos Region Fuelwood
Development Program which are not vested in the corporation, the Corporation
shall have the following powers:

a) To acquire and hold such
lands as may be necessary for the carrying out of the powers, functions,
purposes and objectives of the Corporation within such areas and in such
locations as may be determined by the Administrator and approved by the Board
of Directors;

b) To promulgate such rules and
regulations as may be reasonably necessary and desirable for the attainment of
the objective of the Executive Order;

c) To enter into, make and
execute contracts of any kind as may be necessary or incidental to the
attainment of its purposes and powers, with any person, firm, or corporation,
with the Government of the Philippines or with any foreign government, subject
to existing laws;

d) To contract indebtedness when
essential to the proper administration of its corporate affairs or when
necessary for the proper transaction of its business or for carrying out the
purposes of this Executive Order;

e) To create and operate and/or
contract to operate such divisions, functional units, offices and departments
of the Corporation as it may deem necessary or useful for the furtherance of
any of the purposes of this Executive Order;

f) To enter into any lawful
arrangement for sharing profits, joint ventures, union, interests, reciprocal
concession or cooperation with any person, or corporation, association,
partnership, syndicate or entity located in or organized under the laws of any
authority in any part of the world in the carrying on of any business which the
Corporation is authorized to carry on, or any business or transaction deemed
necessary, convenient or incidental to the carrying on of the purposes of the
Corporation;

g) To establish and maintain
fuelwood plantations and to market its products and by-products thereof;

h) To undertake research in the
promotion of the quality and quantity of fuelwood products and by-products;

i) To obtain funds to support or
carry out its objectives and purposes and/or invest idle funds or such funds
and other income sources derived from marketing, and contributions, etc. in any
authorized government depository banks and/or to arrange financing or credit,
or any kind of assistance for its own account or for the account of its clients
in such manner as the Board of Directors of the Corporations may deem
reasonable from governmental or private sources in the Philippines or elsewhere
or from international public or private lending institutions, and to secure any
or all of the same by any guarantee or counter-guarantee by pledge, mortgage,
deed of trust or assignment of the property of the Corporation, or by creating
or suffering exist a charge, lien, or encumbrance, general or special, upon its
assets, for the purposes of securing the performance by the Corporation of any
obligation or liability it may undertake;

j) To accept and receive
donations such as cash and cash equivalents, including but not limited to
personal and real properties;

k) To do any and all such other
things as may be necessary or incidental to the attainment of the purposes of
the VTOFCO; and

l) Generally, to exercise all
the powers of a corporation under the Corporation Law, in so far as they are
not inconsistent with the provisions hereof.

Section 9. Capitalization.
– The authorized capital stock of the Corporation shall be ONE HUNDRED MILLION
(P100,000,000.00) PESOS, Philippine Currency, to be fully subscribed by the
Philippine Virginia Tobacco Administration and paid as follows;

a) The net assets of and the
appropriations for the Ilocos Region Fuelwood Development Program shall form
part of the authorized capital of the Corporation;

b) The balance shall be paid by
the Philippine Virginia Tobacco Administration from the Tobacco Fund entrusted
with the National Treasury in such releases as may be approved by the President
of the Philippines as recommended by the Minister of the Budget, provided that
the Minister of the Budget shall immediately release from the said Tobacco Fund
such sum as should enable the Corporation to function effectively.

Section 10. Cash Advances.
– The Central Bank of the Philippines is hereby authorized to extend to the
Corporation advances and/grant loans which may be needed for its operations.

Section 11. Powers of the
Board. – In addition to the general and specific powers of VTOFCO,
the Board shall exercise the following:

a) To formulate policies, plans,
projects, rules and regulations to carry out effectively the functions of the
Corporation;

b) To direct the management,
operations and administration of the Corporation;

c) To approved the budget and
authorize such expenditures by the Corporation as are in the interest of the
effective administration and operation of the Corporation;

d) To establish offices and/or
branch offices and create positions necessary for the efficient operations of
the Corporation; fix and authorize payment of salaries, allowances, per diems,
honoraria and other remunerations or emoluments of the members of the Board,
Administrator, Deputy Administrator and other officers and personnel of the
Corporation including personnel of other government agencies and
instrumentalities who may be designated to work for the VTOFCO by detail or
designation in an ex-officio or concurrent capacity;

e) To exercise such other powers
as may be necessary to accomplish the purposes for which the Corporation was
organized.

Section 12. Management.
– The management of the Corporation shall be headed by an Administrator and a
Deputy Administrator who shall be appointed by the Board of Directors unless
sooner removed by the Board. The Administrator and the Deputy Administrator
shall each receive such salary as may be determined by the Board but in no case
less than SIXTY THOUSAND (P60,000.00) PESOS per annum and FIFTY-TWO THOUSAND
(P52,000.00) PESOS per annum, respectively.

Section 13. Powers and Duties
of the Administrator. – The Administrator shall perform the
functions and duties of the Program Director of the defunct Program. In addition
thereto, the Administrator shall have the following powers and duties:

a) To prepare the agenda for
meetings of the Board and to submit for the consideration of the Board proposed
policies and measures which are necessary to carry out the purposes and
provisions thereof;

b) To execute and administer the
policies and measures approved by the Board;

c) To represent the Corporation
in all dealings with other offices, agencies and instrumentalities of the
Government and with all persons and entities, public or private, domestic or
foreign; and

d) To exercise such other powers
as may be vested in him by the Board.

Section 14. Coordination of
Policies. – The Corporation shall coordinate its policies, plans,
projects and regulations with those of the Philippine Virginia Tobacco
Administration, the Ministry of Natural Resources and other agencies of the
Government involved in fuelwood and the development and use thereof.

Section 15. Reorganization.
– The Board is hereby authorized to recognize the administrative structure of
the defunct IRFDP as established under Letter of Instructions No. 866.

Section 16. Transfer of the
IRFDP Properties, Assets, Unexpended Balance and Personnel. – The
IRFDP properties, assets and unexpended appropriations and necessary personnel
as may be determined by the Board are hereby transferred to the VTOFCO.

Section 17. By-Laws, Rules
and Regulations. – The Board may adopt a by-laws for the
Corporation and promulgate the necessary rules and regulations which are not
inconsistent herewith for the effective implementation of the policies and
purposes of the Corporation and revise or amend the same as may be expedient.

Section 18. General Counsel.
– The Office of the Government Corporate Counsel shall be the General Counsel
of the Corporation. The Corporation may, however, organize its own legal
department to assist management and the Board in the performance of its
functions.

Section 19. The Corporation
Law. – The provisions of the Corporation Law, is so far as they
are not inconsistent with the provisions and policies provided herein, shall be
applicable to the VTOFCO.

Section 20. Repealing Clause.
– LOI No. 866 and the provisions of any other Presidential Issuance, Ordinance,
Rules and Regulations inconsistent herewith are hereby repealed, amended or
modified accordingly. If for any reason, any section or provision of this
Executive Order is declared unconstitutional or invalid, the other sections or
provisions hereof, which are not affected thereby, shall continue to be in full
force and effect.

Section 21. Effectivity.
– This Executive Order shall take effect immediately.

Done in the City of Manila, this
30th day of September, in the year of Our Lord, Nineteen Hundred and Eighty.

By the President:

(SGD.) JOAQUIN T. VENUS, JR.
Presidential Assistant