ADMINISTRATION LAW

REPUBLIC ACT NO. 7854 AN ACT CONVERTING THE MUNICIPALITY OF MAKATI

INTO A HIGHLY URBANIZED CITY TO BE KNOWN AS THE CITY OF MAKATI
ARTICLE I GENERAL PROVISIONS
Section 1. Title. This Act shall be known as the Charter of the City of Makati.
Section 2. The City of Makati. The Municipality of Makati shall be converted into a
highly urbanized city to be known as the City of Makati, hereinafter referred to as the
City, which shall comprise the present territory of the Municipality of Makati in
Metropolitan Manila Area over which it has jurisdiction bounded on the northeast by
Pasig River and beyond by the City of Mandaluyong and the Municipality of Pasig; on
the southeast by the municipalities of Pateros and Tagig; on the southwest by the City of
Pasay and the Municipality of Tagig; and, on the northwest, by the City of Manila.
The foregoing provision shall be without prejudice to the resolution by the appropriate
agency or forum of existing boundary disputes or cases involving questions of territorial
jurisdiction between the City of Makati and the adjoining local government units.
Section 3. Corporate Powers of the City. The City constitutes a political body corporate
and as such is endowed with the attribute of perpetual succession and possessed of the
powers which pertain to a municipal corporation to be exercised in conformity with the
provisions of this Charter. The City shall have the following corporate powers:
(a) To have a continuous succession in its corporate name;
(b) To sue and be sued;
(c) To have and use a corporate seal;
(d) To acquire and convey real or personal property;
(e) To enter into contracts; and
(f) To exercise such other powers as are granted to corporations, subject to the
limitations provided in this Act and other laws.
Section 4. General Powers of the City. The City shall have a common seal and may
alter the same at pleasure. It shall exercise the powers of levy taxes and close or open
public roads, streets, alleys, parks or squares. It may take, purchase, receive, hold,
lease, convey and dispose of real and personal property for the general interest of the
City, condemn private property for public use, contract and be contracted with, sue and
be sued, prosecute and defend to final judgment and execution suits wherein said City is
a party, and exercise all the powers as are granted to corporations and/or hereinafter
conferred.
Section 5. Liability for Damages. The City and its officials shall not be liable for death
or injury to persons or damage to property done or caused as a consequence or result of
discharge or performance of official functions within the scope of their duties.
Section 6. Jurisdiction of the City. The jurisdiction of the City of Makati for police

purposes only, shall be coextensive with its territorial jurisdiction and for the purpose of
protecting and insuring the purity of the water supply of the City, such police jurisdiction
shall also extend over all territory within the drainage area of such water supply, or within
one hundred meters (100 m) of any reservoir, conduit, canal, aqueduct or pumping
station used in connection with the city water service. The city court of the City shall
have concurrent jurisdiction with the city or municipal court of the adjoining municipalities
or cities, to try crimes and misdemeanors committed within said drainage area or within
said spaces of one hundred meters (100 m). The court first taking cognizance of such an
offense shall have jurisdiction to try said cases to the exclusion of others. The police
force of the several municipalities and cities concerned shall have concurrent jurisdiction
with the police force of the City for the maintenance of good order and the enforcement
of ordinances throughout said zone, area or spaces shall be granted by the proper
authorities of the city or municipality concerned, and the fees arising therefrom shall
accrue to the treasury of the said city or municipality concerned and not to the City.
ARTICLE II CITY OFFICIALS IN GENERALS
Section 7. The Officials of the City of Makati. (a) There shall be in the City of Makati a
city mayor, a vice mayor, sangguniang panlungsod members, a secretary to the
sangguniang panlungsod, a city treasurer and an assistant city treasurer, a city assessor
and an assistant city assessor, a city accountant, a city budget officer, a city civil
registrar, a city administrator, a city legal officer, a city social welfare and social
development officer, and a city general services officer.
(b) In addition thereto, the city mayor may appoint a city architect, a city information and
community relations officer, a city population officer, a city environment and natural
resources officer, a city public safety officer, a city international relations officer, a city
education officer, a city youth and sports development officer, a city veterinarian and a
city cooperatives officer.
(c) The City of Makati shall maintain a city fire station to headed by a city fire marshall
and a city jail to be headed by a city jail warden.
(d) The City of Makati may:
(1) Maintain existing offices not mentioned in subsections (a) and (b) hereof;
(2) Create such other offices as may be necessary to carry out the purposes of the City;
or
(3) Consolidate the functions of any office with those of another in the interest of
efficiency and economy;
(e) Unless otherwise provided herein, all appointive city officials of the City shall be
appointed by the city mayor with the concurrence of the majority of all the sangguniang
panlungsod members, subject to civil service law, rules and regulations. The
sangguniang panlungsod shall act on the appointment within fifteen (15) days from the
date of its submission otherwise the same shall be deemed confirmed.
ARTICLE III THE CITY MAYOR AND VICE-MAYOR
Section 8. The City Mayor. (a) The city mayor shall be the chief executive of the City.
He shall be elected at large by the qualified voters of the City. No person shall be eligible
for the position of the city mayor unless at the time of the election he is at least twenty-

three (23) years of age, an actual resident of the City for at least one (1) year prior to his
election, and a qualified voter therein. He shall hold office for three (3) years, unless
sooner removed, and shall receive a minimum monthly compensation corresponding to
salary grade thirty (30) as prescribed under Republic Act No. 6758 and the implementing
guidelines issued pursuant thereto.
The city mayor, as the chief executive of the city government, shall exercise such
powers and perform such duties and functions as provided herein:
(a) Exercise those powers expressly granted to him by law, those necessarily implied
therefrom, as well as powers necessary, appropriate, or incidental for the efficient and
effective governance of the City, and those which are essential to the promotion of
general welfare:

(1) Determine the guidelines of city policies and be responsible to the sangguniang
panlungsod for the program of government;
(2) Direct the formulation of the city development plan, with the assistance of the city
development council, and upon approval thereof by the sangguniang panlungsod,
implement the same;
(3) Present the program of government and propose policies and projects for the
consideration of the sangguniang panlungsod at the opening of the regular session of
the sangguniang panlungsod every calendar year and as often as may be deemed
necessary as the general welfare of the inhabitants and the needs of the city
government may require;
(4) Initiate and propose legislative measures to the sangguniang panlungsod and as
often as may be deemed necessary, provide such information and data needed or
requested by said sanggunian in the performance of its legislative functions;
(5) Appoint all officials and employees whose salaries and wages are wholly or mainly
paid out of city funds and whose appointments are not otherwise provided for in this Act,
as well as those he may be authorized by law to appoint;
(6) Represent the City in all its business transactions and sign on its behalf all bonds,
contracts and obligations, and such other documents upon authority of the sangguniang
panlungsod or pursuant to law or ordinance;
(7) Carry out such emergency measures as may be necessary during and in the
aftermath of man-made and natural disasters and calamities;
(8) Determine the time, manner and place of payment of salaries or wages of the
officials and employees of the City, in accordance with law or ordinance;

(9) Allocate and assign office space to the City and other officials and employees who,
by law or ordinance, are entitled to such space in the city hall and other buildings owned
or leased by the city government;
(10) Ensure that all executive officials and employees of the City faithfully discharge their
duties and functions as provided by law and this Act, and cause to be instituted
administrative or judicial proceedings against any official or employee of the City who
may have committed an offense in the performance of his official duties;
(11) Examine the books, records and other documents of all offices, officials, agents or
employees of the City and, in aid of his executive powers and authority, require all
national officials and employees stationed in or assigned to the City to make available to
him such books, records and other documents in their custody, except those classified
by law as confidential;
(12) Furnish copies of executive orders issued by him to the Office of the President and
the Metropolitan Authority Council chairman within seventy-two (72) hours after their
issuance;
(13) Visit component barangays of the City at least once every six (6) months to deepen
his understanding of problems and conditions, listen and give appropriate counsel to
local officials and inhabitants of general laws and ordinances which especially concern
them, and otherwise conduct visits and inspections to ensure that the governance of the
City will improve the quality of life of the inhabitants;
(14) Act on leave applications of officials and employees appointed by him and the
commutation of the monetary value of their leave credits in accordance with law;
(15) Authorize official trips of city officials and employees outside of the City for a period
not exceeding thirty (30) days; Provided, that the trips abroad or for a longer period may
be authorized in accordance with the Local Government Code.
(16) Call upon any national official or employee stationed in or assigned to the City to
advise him on matters affecting the City and to make recommendations thereon;
coordinate with said officials or employees in the formulation and implementation of
plans, programs and projects; and, when appropriate, initiate any administrative or
judicial action against a national government official or employee who may have
committed an offense in the performance of his official duties while stationed in or
assigned to the City;
(17) Authorize payment for medical care, necessary transportation, subsistence, hospital
or medical fees of city officials and employees who are injured while in the performance
of their official duties and functions, subject to availability of funds;

(18) Solemnize marriages, any provision of law to the contrary notwithstanding;

(19) Conduct an annual palarong panlungsod, which shall feature traditional sports and
disciplines included in national and international games, in coordination with the
Department of Education, Culture and Sports; and
(20) Submit to the respective Metropolitan Authority Council chairmen and to the Office
of the President the following reports: (i) an annual report containing a summary of all
matters pertinent to the management, administration, and development of the City and
all information and data relative to its political, social and economic conditions; and (ii)
supplemental reports when unexpected events and situations arise at any time during
the year, particularly when man-made or natural disasters or calamities affect the
general welfare of the City;

(b) Enforce all laws and ordinances relative to the governance of the City and in the
exercise of its appropriate corporate powers, as well as implement all approved policies,
programs, projects, services and activities of the City.

(1) Ensure that the acts of the Citys component barangay and of its officials and
employees are within the scope of their prescribed powers, duties and functions;
(2) Call conventions, conferences, seminars, or meetings of elective and appointive
officials of the City, including national officials and employees stationed in or assigned to
the City, at such time and place and on such subject as he may deem important for the
promotion of the general welfare of the local government unit and its inhabitants;
(3) Issue such executive orders for the faithful and appropriate enforcement and
execution of laws and ordinances;
(4) Be entitled to carry necessary firearm within his territorial jurisdiction;
(5) Act as the deputized representative of the National Police Commission, formulate the
peace and order plan of the City and upon its approval, implement the same: and as
such, exercise general and operational control and supervision over the local police
forces in the City, in accordance with Republic Act No. 6975; and
(6) Call upon the appropriate law enforcement agencies to suppress disorder, riot,
lawless violence, rebellion or sedition, or to apprehend violators of the law when public
interest so requires and the city police forces are inadequate to cope with the situation or
the violators;

(c) Initiate and maximize the generation of resources and revenues, and apply the same
to the implementation of development plans, programs objectives and priorities,
particularly those resources and revenues programmed for agro-industrial development
and countryside growth and progress;

(1) Require each head of an office or department to prepare and submit an estimate of
appropriations for the ensuing calendar year, in accordance with the budget preparation
process in accordance with the provisions of the Local Government Code;

(2) Prepare and submit to the sanggunian for approval the executive and supplemental
budgets of the City for the ensuing calendar year in the manner provided for under the
Local Government Code;

(3) Ensure that all taxes and other revenues of the City are collected, and that city funds
are applied to the payment of expenses and settlement of obligations of the City in
accordance with law or ordinance;

(4) Issue licenses and permits and suspend or revoke the same for any violation of the
conditions upon which said licenses or permits had been issued, pursuant to law or
ordinance;

(5) Issue permits, without need of approval therefore from any national agency, for the
holding of activities for any charitable or welfare purpose, excluding prohibited games of
chance or shows contrary to law, public policy, and public morals;

(6) Require owners of illegally constructed houses, buildings or other structures to obtain
the necessary permit, subject to such fines and penalties as may be imposed by law or
ordinance, or to make necessary changes in the construction of the same when said
construction violates any law or ordinance, or to order the demolition or removal of said
house, building or structure within the period prescribed by law or ordinance;

(7) Adopt adequate measures to safeguard and conserve land, mineral, marine, forest
and other resources of the City;

(8) Provide efficient and effective property and supply management in the City; and
protect the funds, credits, rights and other properties of the City; and

(9) Institute or cause to be instituted administrative or judicial proceedings for violation of

ordinances in the collection of taxes, fees or charges, and for the recovery of funds and
property and cause the City to be defended against all suits to ensure that its interests,
resources and rights shall be adequately protected;

(d) Ensure the delivery of basic services and the provision of adequate facilities and, in
addition thereto:

(1) Ensure that the construction and repair of roads and highways funded by the national
government shall be, as far as practicable, carried out in a spatially contiguous manner
and in coordination with the construction and repair of the roads and bridges of the City;
and

(2) Coordinate the implementation of technical services, including public works and
infrastructure programs, rendered by national offices; and

(e) Perform such other duties and functions and exercise such other powers, as
provided for under Republic Act No. 7160, otherwise known as the Local Government
Code of 1991, and those that are prescribed by law or ordinance.
Section 9. The City Vice Mayor. There shall be a vice mayor who shall be elected in
the same manner as the city mayor and shall at the time of his election possess the
same qualifications as the city mayor. He shall hold office for three (3) years, unless
sooner removed, and shall receive a monthly compensation corresponding to salary
grade twenty-eight (28) as prescribed under Republic Act No. 6758 and the
implementing guidelines issued pursuant thereto.
The vice mayor shall:
(a) Act as presiding officer of the sangguniang panlungsod and sign all warrants drawn
on the city treasury for all expenditures appropriated for the operation of the
sangguniang panlungsod;

(b) Subject to civil service law, rules and regulations, appoint all officials and employees
of the sangguniang panlungsod, except those whose manner of appointment is
specifically provided for under existing laws;

(c) Assume the office of the city mayor for the unexpired term of the latter in the event of
permanent vacancy;

(d) Exercise the powers and perform the duties and functions of the city mayor in cases
of temporary vacancy; and

(e) Perform such other duties and functions and exercise such other powers as provided
for under Republic Act No. 7160, otherwise known as the Local Government Code of
1991, and those that are prescribed by law or ordinance.
ARTICLE IV THE SANGGUNIANG PANLUNGSOD
Section 10. The Sangguniang Panlungsod. The sangguniang panlungsod, the
legislative body of the City, shall be composed of the city vice mayor as presiding officer,
the regular sanggunian members, the president of the city chapter of the liga ng mga
barangay, the president of the panlungsod na pederasyon ng mga sangguniang
kabataan, and the sectoral representatives, as members.
In addition thereto, there shall be three (3) sectoral representatives: one (1) from the
women; and, as shall be determined by the sangguniang panlungsod within ninety (90)
days prior to the holding of the local elections, one (1) from the industrial workers; and
one (1) from other sectors including the urban poor or disabled persons.
The regular members of the sangguniang panlungsod and the sectoral representatives
shall be elected in the manner as may be provided for by law. The elective members of
the sangguniang panlungsod shall possess the same qualifications as that of the city
mayor and vice mayor.
They shall receive such compensation, emoluments and allowances as may be
determined by law.
The sangguniang panlungsod shall:
(a) Approve ordinances and pass resolutions necessary for an efficient and effective city
government and, in this connection shall:

(1) Review all ordinances approved by the sangguniang barangay and executive orders
issued by the punong barangay to determine whether these are within the scope of the
prescribed powers of the sanggunian and of the punong barangay;

(2) Maintain peace and order by enacting measures to prevent and suppress
lawlessness, disorder, riot, violence, rebellion or sedition and impose penalties for the
violation of said ordinances;

(3) Approve ordinances imposing a fine not exceeding Five thousand pesos (P5,000.00)
or an imprisonment for a period not exceeding one (1) year, or both at the discretion of
the court, for the violation of a city ordinance;

(4) Adopt measures to protect the inhabitants of the City from the harmful effects of manmade or natural disasters and calamities and to provide relief services and assistance
for victims during and in the aftermath of said disasters or calamities and in their return
top productive livelihood following said events;

(5) Enact ordinances intended to prevent, suppress and impose appropriate penalties for
habitual drunkenness in public places, vagrancy, mendicancy, prostitution,
establishment and maintenance of houses of ill repute, gambling and other prohibited
games of chance, fraudulent devices and ways to obtain money or property, drug
addiction, maintenance of drug dens, drug pushing, juvenile delinquency, the printing,
distribution or exhibition of obscene or pornographic materials or publications, and such
other activities inimical to the welfare and morals of the inhabitants of the City;

(6) Protect the environment and impose appropriate penalties for acts which endanger
the environment and such other activities which result in pollution, acceleration or
eutrophication of rivers or of ecological imbalance;

(7) Subject to the provisions of the Local Government Code and pertinent laws,
determine the powers and duties of officials and employees of the City;

(8) Determine the position and the salaries, wages, allowances and other emoluments
and benefits of officials and employees paid wholly or mainly from city funds and provide
for expenditure necessary for the proper conduct of programs, projects, services, and
activities of the city government;

(9) Authorize the payment of compensation to a qualified person not in the government
service who fills up a temporary vacancy or grant honorarium to any qualified official or
employee designated to fill a temporary vacancy in a concurrent capacity at the rate
authorized by law;

(10) Provide a mechanism and the appropriate funds therefore, to ensure the safety and
protection of all city government property, public documents, or records such as those
relating to property inventory, land ownership, records to births, marriages, deaths,
assessments, taxation, accounts, business permits and such other records and
documents of public interest in the offices and departments of the government;

(11) When the finances of the city government allow, provide for additional allowances

and other benefits to judges, prosecutors, public elementary and high school teachers,
and other national government officials stationed in or assigned to the City;

(12) Provide legal assistance to barangay officials who, in the performance of their
official duties or on the occasion thereof, have to initiate judicial proceedings or defend
themselves against legal action; and

(13) Provide for group insurance or additional insurance coverage for all barangay
officials, including members of barangay tanod brigades and other service units, with
public or private insurance companies, when the finances of the city government allow
said coverage;

(b) Generate and maximize the use of resources and revenues of the development
plans, program objectives and priorities of the City, with particular attention to agroindustrial development and citywide growth and progress:

(1) Approve the annual and supplemental budgets of the city government and
appropriate funds for specific programs, projects, services and activities of the City, or
for other purposes not contrary to law, in order to promote the general welfare of the City
and its inhabitants;

(2) Subject to the provisions of Book II of the Local Government Code and applicable
laws and upon the majority vote of all the members of the sangguniang panlungsod,
enact ordinance levying taxes, fees and charges, prescribing the rates thereof for
general and specific purposes, and granting tax exemptions, incentives or reliefs;

(3) Subject to the provisions of Book II of the Local Government Code and upon the
majority vote of all the members of the sangguniang panlungsod, authorize the city
mayor to negotiate and contract loans and other forms of indebtedness;

(4) Subject to the provisions of Book II of the Local Government Code and applicable
laws and upon the majority vote of all the members of the sangguniang panlungsod,
enact ordinances authorizing the floating of bonds or other instruments of indebtedness,
for the purpose of raising funds to finance development projects;

(6) Prescribe reasonable limits and restraints on the use of property within the
jurisdiction of the City;

(7) Adopt a comprehensive land use for the City;

(8) Reclassify land within the jurisdiction of the City, subject to the pertinent provisions of
the Local Government Code;

(9) Enact integrated zoning ordinances in consonance with the approved comprehensive
land use plan, subject to existing laws, rules and regulations; establish fire limits or
zones, particularly in populous centers; and regulate the construction, repair or
modification of buildings within said fire limits or zones in accordance with the provisions
of the Fire Code;

(10) Subject to national law, process and approve subdivision plans for residential,
commercial, or industrial purposes and other development purposes, and to collect
processing fees and other charges, the proceeds of which shall accrue entirely to the
City. Provided, however, that where approval of a national agency or office is required,
said approval shall not be withheld for more than thirty (30) days from receipt of the
application. Failure to act on the application within the period stated above shall be
deemed as approval thereof;

(11) Subject to the provisions of Book II of the Local Government Code, control fishing
and related activities within the City rivers and waters;

(12) With the concurrence of at least two-thirds (2/3) of all the members of the
sangguniang panlungsod, grant tax exemptions, incentives or reliefs to entities engaged
in community growth-inducing industries, subject to the provisions of the Local
Government Code;

(13) Grant loans or provide grants to other local government units or to national,
provincial, and city charitable, benevolent or educational institutions: provided, that said
institutions are operated and maintained within the City;

(14) Regulate the numbering of residential, commercial, and other buildings; and

(15) Regulate the inspection, weighing and measuring of articles of commerce;

(c) Subject to the provisions of the Local Government Code of 1991, enact ordinances
granting franchises and authorizing the issuance of permits or licenses, upon such
conditions and for such purposes intended to promote the general welfare of the
inhabitants of the City and, pursuant to this legislative authority, shall;

(1) Fix and impose reasonable fees and charges for all services rendered by the city
government to private persons or entities;

(2) Regulate or fix license fees for any business or practice of profession within the City
and the conditions under which the license for said business or practice of profession
may be revoked and enact ordinances levying taxes thereon;

(3) Provide for and set the terms and conditions under which public utilities owned by the
City shall be operated by the city government, and prescribe the conditions under which
the same may be leased to private persons or entities, preferably cooperatives;

(4) Regulate the display of and fix the license fees for signs, signboards, or billboards at
the place or places where the profession or business advertised thereby is, in whole or
in part, conducted;

(5) Any law to the contrary notwithstanding, authorize and license the establishment,
operation, and maintenance of cockpits, and regulate cockfighting and commercial
breeding of gamecocks: provided, that existing rights shall not be prejudiced;

(6) Subject to the guidelines prescribed by the Department of Transportation and

Communications, regulate the operation of tricycles and grant franchises for the
operation thereof within the territorial jurisdiction of the City; and

(7) Upon approval by a majority vote of all the members of the sangguniang panlungsod,
grant a franchise to any person, partnership, corporation, or cooperative to do business
within the City; establish, construct, operate and maintain ferries, wharves, markets or
slaughterhouses; or undertake such other activities within the City as may be allowed by
existing laws: provided, that cooperatives shall be given preference in the grant of such
franchise;

(d) Regulate activities relative to the use of land, buildings, and structures within the City
in order to promote the general welfare and, for said purpose, shall;

(1) Declare, prevent or abate any nuisance;

(2) Require that buildings and the premises thereof and any land within the City be kept
and maintained in a sanitary condition; impose penalties for any violation thereof; or,
upon failure to comply with said requirement, have the work done at the expense of the
owner, administrator or tenant concerned; or require the filling up of any land or
premises to a grade necessary for proper sanitation;

(3) Regulate the disposal of clinical and other wastes from hospitals, clinics and other
similar establishments;

(4) Regulate the establishment, operation and maintenance of cafes, restaurants,

beerhouses, hotels, motels, inns, pension houses, lodging houses and other similar
establishments, including tourist guides and transports;

(5) Regulate the sale, giving away or dispensing of any intoxicating malt, vino, mixed or
fermented liquors at any retail outer;

(6) Regulate the establishment and provide for the inspection of steam boilers or any
heating device in buildings and the storage of inflammable and highly combustible
materials within the City;

(7) Regulate the establishment, operation and maintenance of any entertainment or

amusement facilities, including the theatrical performances, circuses, billiard pools,
public dancing schools, public dance halls, sauna baths, massage parlors, and other
places for entertainment or amusement; regulate such other events or activities for
amusement or entertainment, particularly those which tend to disturb the community or
annoy the inhabitants, or require the suspension or suppression of the same; or prohibit
certain forms of amusement or entertainment in order to protect the social and moral
welfare of the community;

(8) Provide for the impounding of stray animals; regulate the keeping of animals in
homes or as part of a business, and the slaughter, sale or disposition of the same; and
adopt measures to prevent and penalize cruelty to animals; and

(9) Regulate the establishment, operation and maintenance of funeral parlors and the
burial or cremation of the dead, subject to existing laws, rules and regulations;

(e) Approve ordinances which shall ensure the efficient and effective delivery of the
basic services and facilities as provided for under the Local Government Code and, in
addition to said services and facilities, shall:

(1) Provide for the establishment, maintenance, protection, and conservation of tree
parks and green belts:

(2) Establish markets, slaughterhouses or animal corrals and authorize the operation
thereof by the city government; and regulate the construction and operation of private
markets, talipapas or other similar buildings and structures;

(3) Authorize the establishment, maintenance and operation by the city government of
ferries, wharves and other structures intended to accelerate productivity related to
marine life and the preservation thereof;

(4) Regulate the preparation and sale of meat, poultry, fish, vegetables, fruits, fresh dairy
products, and other foodstuffs for public consumption;

(5) Regulate the use of streets, avenues, alleys, sidewalks, bridges, parks and other
public places and approve the construction, improvement, repair and maintenance of the
same; establish bus and vehicle stops and terminals or regulate the use of the same by
privately-owned vehicles which serve the public; regulate garages and the operation of
conveyances for hire; designate stands to be occupied by public vehicles when not in
use; regulate the putting up of signs, signposts, awnings and awning posts on the
streets; and provide for the lighting, cleaning and sprinkling of streets and public places;

(6) Regulate traffic on all streets and bridges; prohibit encroachments or obstacles
thereon and, when necessary in the interest of public welfare, authorize the removal of
encroachments and illegal constructions in public places;

(7) Subject to existing laws, establish and provide for the maintenance, repair and
operation of an efficient waterworks system to supply water to the inhabitants and to

purify the source of the water supply; regulate the construction, maintenance, repair and
use of hydrants, pumps, cisterns and reservoirs; protect the purity and quantity of the
water supply of the City and, for this purpose, extend the coverage of appropriate
ordinances over all territory within the drainage area of said water supply and within one
hundred meters (100 m) of the reservoir, conduit, canal, aqueduct, pumping station, or
watershed used in connection with the water services; and regulate the consumption,
use or wastages of water and fix and collect charges therefore;

(8) Regulate the drilling and excavation of the ground for the laying of water, gas, sewer,
and other pipes and the construction, repair and maintenance of public drains, sewers,
cesspools, tunnels and similar structures; regulate the placing of poles and the use of
crosswalks, curbs and gutters; adopt measures to ensure public safety against open
canals, manholes, live wires and other similar hazards to life and property; and regulate
the construction and use of private water closets, privies, and other similar structures in
buildings and homes;

(9) Regulate the placing, stringing, attaching, installing, repair and construction of all gas
mains, electric, telegraph and telephone wires, conduits, meters and other apparatus;
and provide for the correction, condemnation or removal of the same when found to be
dangerous, defective or otherwise hazardous to the welfare of the inhabitants;

(10) Subject to the availability of funds and to existing laws, rules and regulations,
establish and provide for the operation of vocational and technical schools and similar
post-secondary institutions and, with the approval of the Department of Education,
Culture and Sports and subject to existing law on tuition fees, fix and collect reasonable
tuition fees and other school charges in educational institutions supported by city
government;

(11) Establish a scholarship fund for poor but deserving students in schools located
within its jurisdiction or for students residing within the City;

(12) Approve measures and adopt quarantine regulations to prevent the introduction and
spread of diseases;

(13) Provide for an efficient and effective system of solid waste and garbage collection
and prohibit littering and the placing or throwing of garbage, refuse and other filth and
wastes;

(14) Provide for the care of disabled persons, paupers, the aged, the sick, persons of

unsound mind, abandoned minors, juvenile delinquents, drug dependents, abused

children and other youth below eighteen (18) years of age; and, subject to availability of
funds, establish and provide for the operation of centers and facilities for said needy and
disadvantaged persons;

(15) Establish and provide for the maintenance and improvement of jails and detention
centers, institute a sound jail management program, and appropriate funds for the
subsistence of detainees and convicted prisoners in the City;

(16) Establish a city council whose purpose is the promotion of culture and the arts,
coordinate with government agencies and nongovernmental organizations and, subject
to the availability of funds, appropriate funds for the support and development of the
same; and

(17) Establish a city council for the elderly and senior citizens which shall formulate
policies and adopt measures mutually beneficial to the elderly and to the community;
provide incentives for nongovernmental agencies and entities and, subject to the
availability of funds, appropriate funds to support programs and projects for the benefit of
the elderly; and

(f) Perform such other duties and functions and exercise such other powers as provided
for under Republic Act No. 7160, otherwise known as the Local Government Code of
1991, and those that are prescribed by law or ordinance.
ARTICLE V PROCESS OF LEGISLATION
Section 11. Internal Rules of Procedure. On the first regular session following the
election of its members and within ninety (90) days thereafter, the sangguniang
panlungsod shall adopt or update its existing rules of procedure.
The rules of procedure shall provide for the following:
(a) The organization of the sanggunian and the election of its officers as well as the
creation of standing committees which shall include, but shall not be limited to, the
committees on appropriations, revenues, engineering and public works, education and
health, women and family, human rights, youth and sports development, environmental
protection, peace and order and traffic, and cooperatives; the general jurisdiction of each
committee; and the election of the chairman and members of each committee;

(b) The order and calendar of business for each session;

(c) The legislative process;

(d) The parliamentary procedures which shall include the conduct of members during
sessions;

(e) The discipline of members for disorderly behavior and absences without justifiable
cause for four (4) consecutive sessions, for which they may be censured, reprimanded,
or excluded from the session, suspended for not more than sixty (60) days, or expelled:
provided, that the penalty of suspension or expulsion shall require the concurrence of at
least two-thirds (2/3) vote of all the sanggunian members: provided, further, that a
member convicted by final judgment to imprisonment of at least one (1) year for any
crime involving moral turpitude shall be automatically expelled from the sanggunian; and

(f) Such other rules as the sanggunian may adopt.

Section 12. Full Disclosure of Financial and Business Interest of Sangguniang
Panlungsod Members. Every sangguniang panlungsod member shall, upon
assumption to office, make a full disclosure of his business and financial interest. He
shall also disclose any business, financial, or professional relationship or any relation by
affinity or consanguinity within the fourth civil degree, which he may have with any
person, firm or entity affected by any ordinance or resolution, under consideration by the
sanggunian of which he is a member, which relationship may result in conflict of interest.
Such relationship shall include:
(a) Ownership of stock or capital, or investment, in the entity or firm to which the
ordinance or resolution may apply; and

(b) Contracts or agreements with any person or entity which an ordinance or resolution
under consideration may affect.
In the absence of a specific constitutional or statutory provision applicable to this
situation, conflict of interest refers in general to one where it may be reasonably
deduced that a member of a sanggunian may not act in the public interest due to some
private, pecuniary, or other personal considerations that may tend to affect his judgment
to the prejudice of the service or the public.
The disclosure required under this Act shall be made in writing and submitted to the
secretary of the sanggunian or the secretary of the committee of which he is a member.
The disclosure shall, in all cases, form part of the record of the proceedings and shall be
made in the following manner:
(1) Disclosure shall be made before the member participates in the deliberations on the
ordinance or resolution under consideration: provided, that if the member did not
participate during the deliberations, the disclosure shall be made before voting on the
ordinance or resolution on second and third readings; and

(2) Disclosure shall be made when a member takes a position or makes a privilege

speech on a matter that may affect the business interest, financial connection, or
professional relationship described herein.
Section 13. Sessions. On the first day of the session immediately following the election
of its members, the sangguniang panlungsod shall, by resolution, fix the day, time, and
place of its regular sessions. The minimum number of regular sessions shall be once a
week for the sangguniang panlungsod, and twice a month for the sangguniang
barangay.
When public interest so demands, special sessions may be called by the city mayor or
by a majority of the members of the sanggunian.
All sanggunian sessions shall be open to the public unless a closed-door session is
ordered by an affirmative vote of a majority of the members present, there being a
quorum, in the public interest or for reasons of security, decency, or morality. No two (2)
sessions, regular or special, may be held in a single day.
In the case of special sessions of the sanggunian, a written notice to the members shall
be served personally at the members usual place of residence at least twenty-four (24)
hours before the special session is held.
Unless concurred in by two-thirds (2/3) vote of the sanggunian members present, there
being a quorum, no other matter may be considered at a special session except those
stated in the notice.
The sanggunian shall keep a journal and record of its proceedings which may be
published upon resolution of the sangguniang panlungsod.
Section 14. Quorum. A majority of all the members of the sanggunian who have been
elected and qualified shall constitute a quorum to transact official business. Should a
question of quorum be raised during a session, the presiding officer shall immediately
proceed to call the roll of the members and thereafter announce the results.
Where there is no quorum, the presiding officer may declare a recess until such time as
a quorum is constituted, or a majority of the members present may adjourn from day to
day and may compel the immediate attendance of any member absent without justifiable
cause by designating a member of the sanggunian, to be assisted by a member or
members of the police force assigned in the territorial jurisdiction of the City of Makati, to
arrest the absent member and present him at the session.
If there is still no quorum despite the enforcement of the immediately preceding
subsection, no business shall be transacted. The presiding officer, upon proper motion
duly approved by the members present, shall then declare the session adjourned for
lack of quorum.
Section 15. Approval of Ordinances. Every ordinance enacted by the sangguniang
panlungsod shall be presented to the city mayor. If the city mayor approves the same,
he shall affix his signature on each and every page thereof; otherwise, he shall veto it
and return the same with his objections to the sanggunian, which may proceed to
reconsider the same. The sanggunian may override the veto of the city mayor by twothirds (2/3) vote of all its members, thereby making the ordinance or resolution effective
for all legal intents and purposes.
The veto shall be communicated by the city mayor to the sanggunian within ten (10)

days; otherwise, the ordinance shall be deemed approved as if he had signed it.
Section 16. Veto Power of the City Mayor. The city mayor may veto any ordinance of
the sangguniang panlungsod on the ground that it is ultra vires or prejudicial to the public
welfare, stating his reasons therefore in writing.
The city mayor shall have the power to veto any particular item or items of an
appropriations ordinance, an ordinance or resolution adopting a local development plan
and public investment program, or an ordinance directing the payment of money or
creating liability. In such a case, the veto shall not affect the item or items which are not
objected to. The vetoed item or items shall not take effect unless the sangguniang
panlungsod overrides the veto in the manner herein provided; otherwise, the item or
items in the appropriations ordinance of the previous year corresponding to those
vetoed, if any, shall be deemed reenacted.
The city mayor may veto an ordinance or resolution only once. The sanggunian may
override the veto of the city mayor by two-thirds (2/3) vote of all its members, thereby
making the ordinance effective even without the approval of the city mayor.
Section 17. Review of Barangay Ordinances by the Sangguniang Panlungsod. Within
ten (10) days after its enactment, the sangguniang barangay shall furnish copies of all
barangay ordinances to the sangguniang panlungsod for review as to whether the
ordinance is consistent with law and city ordinances.
If the sangguniang panlungsod fails to take action on barangay ordinances within thirty
(30) days from receipt thereof, the same shall be deemed approved.
If the sangguniang panlungsod finds the barangay ordinances inconsistent with law or
city ordinances, the sangguniang panlungsod shall, within thirty (30) days from receipt
thereof, return the same with its comments and recommendations to the sangguniang
barangay concerned for adjustment, amendment, or modification: in which case, the
effectivity of the barangay ordinance is suspended until such time as the revision called
for is effected.
Section 18. Enforcement of Disapproved Ordinances or Resolutions. Any attempt to
enforce any ordinance or any resolution approving the local development plan and public
investment program after the disapproval thereof, shall be sufficient ground for the
suspension or dismissal of the official or employee concerned.
Section 19. Effectivity of Ordinances or Resolutions. Unless otherwise stated in the
ordinance or the resolution approving the local development plan and public investment
program, the same shall take effect after ten (10) days from the date a copy thereof is
posted in a bulletin board at the entrance of the city hall of Makati, and in at least two (2)
other conspicuous places in the City of Makati.
The secretary of the sangguniang panlungsod shall cause the posting of an ordinance or
resolution in the bulletin board at the entrance of the city hall of Makati and in at least
two (2) conspicuous places in the City of Makati not later than five (5) days after
approval thereof.
The text of the ordinance or resolution shall be disseminated and posted in Filipino or
English and the secretary of the sangguniang panlungsod shall record such fact in a
book kept for the purpose, stating the dates of approval and posting.

The main features of the ordinance or resolution duly enacted or adopted shall, in
addition to being posted, be published once in a local newspaper of general circulation
within the City: provided, that in the absence thereof the ordinance or resolution shall be
published in any newspaper of general circulation: provided, further, that the gist of all
ordinances with penal sanctions shall also be published in a newspaper of general
circulation.
ARTICLE VI DISQUALIFICATIONS
OFFICIALS

AND

SUCCESSION

OF

ELECTIVE

CITY

Section 20. Disqualifications for Elective Public City Officials. The following persons
are disqualified from running for any elective position in the City:
(a) Those sentenced by final judgment for an offense involving moral turpitude or for an
offense punishable by one (1) year or more of imprisonment, within two (2) years after
serving sentence;

(b) Those removed from office as a result of an administrative case;

(c) Those convicted by final judgment for violating the oath of allegiance to the Republic
of the Philippines;

(d) Those with dual citizenship;

(e) Fugitives from justice in criminal or nonpolitical cases here and abroad;

(f) Permanent residents in a foreign country or those who have acquired the right to
reside abroad and continue to avail of the same right after the effectivity of the Local
Government Code; and

(g) The insane or feeble-minded.

Section 21. Permanent Vacancy in the Office of the City Mayor and City Vice Mayor. If
a permanent vacancy occurs in the office of the city mayor, the city vice-mayor
concerned shall become the city mayor. If a permanent vacancy occurs in the office of
the vice mayor, the highest ranking sangguniang panlungsod member or, in case of his
permanent incapacity, the second highest ranking sangguniang panlungsod member
shall become the city mayor or city vice mayor, as the case may be. Subsequent
vacancies in the said offices shall be filled automatically by the other sanggunian
members according to their ranking as defined herein.
A tie between or among the highest ranking sangguniang panlungsod members shall be
resolved by the drawing of lots.

The successors as defined herein shall serve only the unexpired terms of their
predecessors.
For purposes of this Act, a permanent vacancy arises when an elective local official fills
a higher vacant office, refuses to assume office, fails to qualify, dies, is removed from
office, voluntarily resigns or is otherwise permanently incapacitated to discharge the
functions of his office.
For purposes of succession as provided in this Act, ranking in the sanggunian shall be
determined on the basis of the proportion of votes obtained by each winning candidate
to the total number of registered voters in the City in the immediately preceding local
election.
Section 22. Permanent Vacancies in the Sanggunian. Permanent vacancies in the
sangguniang panlungsod where automatic succession as provided above does not apply
shall be filled by appointment in the following manner:
(a) The President, through the Executive Secretary, shall make the aforesaid
appointment;

(b) Only the nominee of the political party under which the sanggunian member
concerned had been elected shall be appointed in the manner herein provided. The
appointee shall come from the same political party as that of the sanggunian member
who caused the vacancy and shall serve the unexpired term of the vacant office. In the
appointment herein mentioned, a nomination and a certificate of membership of the
appointee from the highest official of the political party concerned are conditions sine
qua non, and any appointment without such nomination and certification shall be null
and void ab initio and shall be a ground for administrative action against the official
responsible therefore;

(c) In case the permanent vacancy is caused by a sanggunian member who does not
belong to any political party, the city mayor shall, upon recommendation of the
sangguniang panlungsod, appoint a qualified person to fill the vacancy; and

(d) In case of vacancy in the representation of the youth and the barangay in the
sangguniang panlungsod, said vacancy shall be filled automatically by the official next in
rank of the organization concerned.
Section 23. Temporary Vacancy in the Office of the City Mayor. When the city mayor is
temporarily incapacitated to perform his duties for physical or legal reasons such as, but
not limited to, leave of absence, travel abroad, and suspension from office, the city vicemayor, or the highest ranking sangguniang panlungsod member shall automatically
exercise the powers and perform the duties and functions of the city mayor, except the
power to appoint, suspend, or dismiss employees which can only be exercised if the
period of temporary incapacity exceeds thirty (30) working days.
(b) Said temporary incapacity shall terminate upon submission to the sangguniang
panlungsod of a written declaration by the city mayor that he has reported back to office.

In cases where the temporary incapacity is due to legal causes, the city mayor shall also
submit necessary documents showing that said legal causes no longer exist.
(c) When the city mayor is travelling within the country but outside his territorial
jurisdiction for a period not exceeding three (3) consecutive days, he may designate in
writing the officer-in-charge of his office. Such authorization shall specify the powers and
functions that the local official concerned shall exercise in the absence of the city mayor
except the power to appoint, suspend, or dismiss employees.
(d) In the event, however, that the city mayor fails or refuses to issue such authorization,
the city vice mayor, or the highest ranking sangguniang panlungsod member, as the
case may be, shall have the right to assume the powers, duties and functions of the said
office on the fourth day of absence of the city mayor, subject to the limitations provided
in subsection (c) hereof.
(e) Except as provided above, the city mayor shall in no case authorize any local official
to assume the powers, duties, and functions of the office, other than the city vice mayor,
or the highest ranking member of the sangguniang panlungsod, as the case may be.
ARTICLE VII CITY OFFICES IN GENERAL
Section 24. City Offices. There shall be established in the government of the City of
Makati the following offices for its elective officials:
(a) The office of the city mayor;

(b) The office of the city vice mayor; and

(c) The individual offices of the members of the sangguniang panlungsod.

The City shall likewise establish the following offices:
(1) The office of the city administrator;

(2) The finance department;

(3) The engineering and public works department;

(4) The law department;

(5) The health department;

(6) The assessment department;

(7) The budget department;

(8) The urban development department;

(9) The international relations department;

(10) The social welfare department;

(11) The information and community relations department;

(12) The youth and sports development department;

(13) The education department;

(14) The environmental services department; and

(15) The public safety department.

The city mayor, as the chief executive of the City, shall have the power to designate the
heads of the aforementioned departments, subject to the approval of the members of the
sangguniang panlungsod.
ARTICLE
VIII THE
APPOINTIVE
OFFICIALS
QUALIFICATIONS, POWERS AND DUTIES

OF

THE

CITY;

THEIR

Section 25. The Secretary to the Sangguniang Panlungsod. There shall be a secretary
to the sangguniang panlungsod with the rank and salary equal to a head of department
or office, who shall be appointed by the city mayor.
No person shall be appointed secretary to the sangguniang panlungsod unless he is a
citizen of the Philippines, a resident of the City of Makati, of good moral character, a
holder of a college degree preferably in law, commerce or public administration from a
recognized college or university, and a first grade civil service eligible or its equivalent.
The term of the secretary to the sangguniang panlungsod is coterminous with that of the
appointing authority
The secretary to the sangguniang panlungsod shall take charge of the office of the
sangguniang panlungsod and shall:

(a) Attend meetings of the sangguniang panlungsod and keep a journal of its
proceedings;

(b) Keep the seal of the City and affix the same with his signature to all ordinances,
resolutions, and other official acts of the sangguniang panlungsod and present the same
to the presiding officer for his signature;

(c) Forward to the city mayor, for approval, copies of ordinances enacted by the
sangguniang panlungsod and to the sangguniang panlungsod and duly certified by the
presiding officer;

(d) Furnish, upon request of any interested party, certified copies of records of public
character in his custody, upon payment to the city treasurer of such fees as may be
prescribed by ordinance;

(e) Record in a book kept for the purpose, all ordinances and resolutions enacted or
adopted by the sangguniang panlungsod, with dates of passage and publication thereof;

(f) Keep his office and all non-confidential records therein open to the public during the
usual business hours;

(g) Translate into the dialect used by the majority of inhabitants all ordinances and
resolutions immediately after their approval, and cause the publication of the same
together with the original version in the manner provided under the Local Government
Code;

(h) Take custody of the local archives and, where applicable, the local library and
annually account for the same; and

(i) Perform such other duties and functions and exercise such other powers as provided
for under Republic Act No. 7160, otherwise known as the Local Government Code of
1991, and those that are prescribed by law or ordinance.
Section 26. The City Treasurer. The city treasurer shall be appointed by the Secretary
of Finance from a list of at least three (3) ranking eligible recommendees of the city
mayor, subject to civil service law, rules and regulations.
The city treasurer shall be under the administrative supervision of the city mayor, to
whom he shall report regularly on the tax collection efforts of the City.

No person shall be appointed treasurer unless he is a citizen of the Philippines, a

resident of the City of Makati, of good moral character, a holder of a college degree
preferably in commerce, public administration or law from a recognized college or
university, and a first grade civil service eligible or its equivalent. He must have acquired
experience in treasury or accounting service for at least five (5) years in the case of the
city treasurer.
The city treasurer shall receive such compensation, emoluments, and allowances as
may be determined by law.
The city treasurer shall take charge of the city finance department and shall:
(a) Advise the city mayor, the sangguniang panlungsod, and other local government and
national officials concerned regarding disposition of local government funds and on such
other matters relative to public finance;

(b) Take custody and exercise proper management of the funds of the City;

(c) Take charge of the disbursement of all funds of the City and such other funds the
custody of which may be entrusted to him by law or other competent authority;

(d) Inspect private commercial and industrial establishments within the jurisdiction of the
City in relation to the implementation of tax ordinances, pursuant to the provisions of the
Local Government Code;

(e) Maintain and update the tax information system of the City; and

(f) Perform such other duties and functions and exercise such other powers as provided
for under Republic Act No. 7160, otherwise known as the Local Government Code of
1991, and those that are prescribed by law or ordinance.
Section 27. The Assistant City Treasurer. The assistant city treasurer may be
appointed by the Secretary of Finance from a list of at least three (3) ranking eligible
recommendees of the city mayor, subject to civil service law, rules and regulations.
No person shall be appointed assistant city treasurer unless he is a citizen of the
Philippines, a resident of the City of Makati, of good moral character, a holder of a
college degree preferably in commerce, public administration, or law from a recognized
college or university; and a first grade civil service eligible or its equivalent. He must
have acquired at least five (5) years of experience in treasury or accounting.
The assistant city treasurer shall receive such compensation, emoluments, and
allowances as may be determined by law.
The assistant city treasurer shall assist the city treasurer and perform such other duties
as the latter may assign him. He shall have authority to administer oaths concerning

notices and notifications to those delinquent in the payment of the real property tax and
concerning official matter relating to the accounts of the city treasurer or otherwise
arising from the offices of the city treasurer and the city assessor.
Section 28. The City Assessor. The city assessor must be a citizen of the Philippines,
a resident of the City of Makati, of good moral character, a holder of a college degree
preferably in civil or mechanical engineering, commerce, or any other related course
from a recognized college or university, and a first grade civil service eligible or its
equivalent. He must have acquired experience in real property assessment work or in
any related field for at least five (5) years immediately preceding the day of his
appointment.
The city assessor shall receive such compensation, emoluments and allowances as may
be determined by law.
The city assessor shall take charge of the city assessment department and shall:
(a) Ensure that all laws and policies governing the appraisal and assessment of real
properties for taxation purposes are properly executed;

(b) Initiate, review, and recommend changes in policies and objectives, plans and
programs, techniques, procedures and practices in the valuation and assessment of real
properties for taxation purposes;

(c) Establish a systematic method of real property assessment;

(d) Install and maintain a real property identification and accounting system;

(e) Prepare, install, and maintain a system of tax mapping, showing graphically all
properties subject to assessment and gather all data concerning the same;

(f) Conduct frequent physical surveys to verify and determine whether all real properties
within the City are properly listed in the assessment rolls;

(g) Exercise the functions of appraisal and assessment primarily for taxation purposes of
all real properties in the City;

(h) Prepare a schedule of the fair market value of the different classes of real properties
in accordance with the provisions of the Local Government Code;

(i) Issue, upon request of any interested party, certified copies of assessment records of
real property and all other records relative to its assessment, upon payment of a service
charge or fee to the city treasurer;

(j) Submit every semester a report of all assessments, as well as cancellations and
modifications of assessments, to the city mayor and the sangguniang panlungsod; and

(k) Perform such other duties and functions and exercise such other powers as provided
for under Republic Act No. 7160, otherwise known as the Local Government Code of
1991, and those that are prescribed by law or ordinance.
Section 29. The Assistant City Assessor. The assistant city assessor must be a citizen
of the Philippines, a resident of the City of Makati, of good moral character, a holder of a
college degree preferably in civil or mechanical engineering, commerce, or any related
course from a recognized college or university, and a first grade civil service eligible or
its equivalent. He must have acquired experience in assessment work or in any related
field for at least three (3) years immediately preceding the day of his appointment. The
assistant city assessor shall receive such compensation, emoluments and allowances as
may be determined by law.
The assistant city assessor shall assist the city assessor and perform such other duties
as the latter may assign to him. He shall have the authority to administer oaths on all
declarations of real property for purposes of assessment.
Section 30. The City Accountant. The city accountant must be a citizen of the
Philippines, a resident of the City of Makati, of good moral character, and a certified
public accountant. He must have acquired experience in the treasury or accounting
service for at least five (5) years immediately preceding the day of his appointment.
The city accountant shall receive such compensation, emoluments, and allowances as
may be determined by law.
The city accountant shall take charge of both the office on accounting and internal audit
services and shall:
(a) Install and maintain an internal audit system in the City;

(b) Prepare and submit financial statements to the city mayor, and to the sangguniang
panlungsod;

(c) Apprise the sangguniang panlungsod and other officials on the financial condition
and operations of the City;
(d) Certify to the availability of budgetary allotment of which expenditures and obligations
may be properly charged;

(e) Review supporting documents before preparation of vouchers to determine

completeness of requirements;

(f) Prepare statements of cash advances, liquidation,

reimbursements, and remittances pertaining to the City;

salaries,

allowances,

(g) Post individual disbursements to the subsidiary ledger and index cards;

(h) Maintain individual ledgers for officials and employees of the City pertaining to
payrolls and deductions;

(i) Record and post in index cards details of purchased furniture, fixtures, and
equipment, including disposal thereof, if any;

(j) Account for all issued requests for obligations and maintain and keep all records and
reports related thereto;

(k) Prepare journals and the analysis of obligations and maintain and keep all records
and reports related thereto; and

(l) Perform such other duties and functions and exercise such other powers as provided
for under Republic Act No. 7160, otherwise known as the Local Government Code of
1991, and those that are prescribed by law or ordinance.
Section 31. The City Budget Officer. The city budget officer must be a citizen of the
Philippines, a resident of the City of Manila, of good moral character, a holder of a
college degree preferably in accounting, economics, public administration, or any related
course from a recognized college or university, and a first grade civil service eligible or
its equivalent. He must have acquired experience in government budgeting or in any
related field for at least five (5) years immediately preceding the date of his appointment.
The city budget officer shall receive such compensation, emoluments, and allowances
as may be determined by law.
The city budget officer shall take charge of the city budget department and shall:
(a) Prepare forms, orders, and circulars embodying instructions on budgetary and
appropriation matters for the signature of the city mayor;

(b) Review and consolidate the budget proposals of different departments and offices of

the City;

(c) Assist the city mayor, in the preparation of the budget and during budget hearings;

(d) Study and evaluate budgetary implications of proposed legislation and submit
comments and recommendations thereon;

(e) Submit periodic budgetary reports to the Department of Budget and Management;

(f) Coordinate with the city treasurer, the city accountant, and the city urban
development officer for the purpose of budgeting;

(g) Assist the sangguniang panlungsod in reviewing the approved budgets of

components of the City;

(h) Coordinate with the city urban development office in the formulation of the
development plan of the City; and

(i) Perform such other duties and functions and exercise such other powers as provided
for under Republic Act No. 7160, otherwise known as the Local Government Code of
1991, and those that are prescribed by law or ordinance.
Section 32. The City Urban Development Officer. The city urban development officer
must be a citizen of the Philippines, a resident of the City of Makati, of good moral
character, a holder of a college degree preferably in urban planning, development
studies, economics, public administration, or any related course from a recognized
college or university, and a first grade civil service eligible or its equivalent. He must
have acquired experience in development planning or in any related field for at least five
(5) years immediately preceding the date of his appointment.
The city urban and development officer shall receive such compensation, emoluments,
and allowances as may be determined by law.
The city urban development officer shall take charge of the city urban development
department and shall:
(a) Formulate integrated economic, social, physical, and other development plans and
policies for consideration of the City;

(b) Conduct continuing studies, researches, and training programs necessary to evolve

plans and programs for implementation;

(c) Integrate and coordinate all sectoral plans and studies undertaken by the different
functional groups of agencies;

(d) Monitor and evaluate the implementation of the different development programs,
projects, and activities in the City in accordance with the approved development plan;

(e) Prepare comprehensive plans and other development planning documents for the
consideration of the local development council;

(f) Analyze the income and expenditure patterns, and formulate and recommend fiscal
plans and policies for consideration of the finance committee of the sangguniang
panlungsod;

(g) Promote people participation in development planning within the City; and

(h) Perform such other duties and functions and exercise such other powers as provided
for under Republic Act No. 7160, otherwise known as the Local Government Code of
1991, and those that are prescribed by law or ordinance.
Section 33. The City Engineer. The city engineer must be a citizen of the Philippines, a
resident of the City of Makati, of good moral character, and a licensed civil engineer. He
must have acquired experience in the practice of his profession for at least five (5) years
immediately preceding the date of his appointment.
The city engineer shall receive such compensation, emoluments, and allowances as
may be determined by law.
The city engineer shall take charge of the city engineering and public works department
and shall:
(a) Initiate, review and recommend changes in policies and objectives, plans and
programs, techniques, procedures and practices in infrastructure development and
public works in general of the City;

(b) Advise the city mayor on infrastructure, public works, and other engineering matters;

(c) Administer, coordinate, supervise, and control the construction, maintenance,

improvement, and repair of roads, bridges, and other engineering and public works

projects of the City;

(d) Provide engineering services to the City, including investigation and survey,
engineering designs, feasibility studies, and project management; and

(e) Perform such other duties and functions and exercise such other powers as provided
for under Republic Act No. 7160, otherwise known as the Local Government Code of
1991, and those that are prescribed by law or ordinance.
Section 34. The City Health Officer. The city health officer must be a citizen of the
Philippines, a resident of the City of Makati, of good moral character, and a licensed
medical practitioner. He must have acquired experience in the practice of his profession
for at least five (5) years immediately preceding the date of his appointment.
The city health officer shall receive such compensation, emoluments, and allowances as
may be determined by law.
The city health officer shall take charge of the city health department and shall:
(a) Supervise the personnel and staff of said office, formulate program implementation
guidelines and rules and regulations for the operation of the said office for the approval
of the city mayor, in order to assist him in the efficient, effective, and economical
implementation of a health services program geared to implementation of health-related
projects and activities;

(b) Formulate measures for the consideration of the sangguniang panlungsod and
provide technical assistance and support to the city mayor, in carrying out activities to
ensure the delivery of basic services and provision of adequate facilities relative to
health services;

(c) Develop plans and strategies and upon approval thereof by the city mayor,
implement the same, particularly those which have to do with health programs and
projects which the city mayor is empowered to implement and which the sangguniang
panlungsod is empowered to provide;

(d) Be in the frontline of the delivery of health services, particularly during and in the
aftermath of man-made and natural disasters and calamities; and

(e) Perform such other duties and functions and exercise such other powers as provided
for under Republic Act No. 7160, otherwise known as the Local Government Code of
1991, and those that are prescribed by law or ordinance.
Section 35. The City Civil Registrar. The city civil registrar must be a citizen of the
Philippines, a resident of the City of Makati, of good moral character, a holder of a

college degree from a recognized college or university, and a first grade civil service
eligible or its equivalent. He must have acquired experience in civil registry work for at
least five (5) years immediately preceding the date of his appointment.
The city civil registrar shall receive such compensation, emoluments, and allowances as
may be determined by law.
The city civil registrar shall be responsible for the civil registration program in the City of
Makati, pursuant to the civil registry law, the civil code, and other pertinent laws, rules
and regulations issued to implement them.
The city civil registrar shall take charge of the office of the city civil registry and shall:
(a) Develop plans and strategies and upon approval thereof by the city mayor,
implemented the same, particularly those which have to do with civil registry programs
and projects which the city mayor is empowered to implement and which the
sangguniang panlungsod is empowered to provide; and

(b) Perform such other duties and functions and exercise such other powers as provided
for under Republic Act No. 7160, otherwise known as the Local Government Code of
1991, and those that are prescribed by law or ordinance.
Section 36. The City Administrator. The city administrator must be a citizen of the
Philippines, a resident of the City of Makati, of good moral character, holding a college
degree preferably in public administration, law, or any related course from a recognized
college or university, and a first grade civil service eligible or its equivalent. He must
have acquired experience in management and administration work for at least five (5)
years immediately preceding the date of his appointment.
The city administrator shall receive such compensation, emoluments, and allowances as
may be determined by law.
The city administrator shall take charge of the office of the city administrator and shall:
(a) Develop plans and strategies and upon approval thereof by the city mayor,
implement the same particularly those which have to do with the management and
administration-related programs and projects which the city mayor is empowered to
implement and which the sangguniang panlungsod is empowered to provide;

(b) Be in the frontline of the delivery of administrative support services, particularly those
related to the situations during and in the aftermath of man-made and natural disasters
and calamities;

(c) Recommend to the sangguniang panlungsod and advise the city mayor on all matters
relative to the management and administration of the City; and

(d) Perform such other duties and functions and exercise such other powers as provided

for under Republic Act No. 7160, otherwise known as the Local Government Code of
1991, and those that are prescribed by law or ordinance.
Section 37. The City Legal Officer. The city legal officer must be a citizen of the
Philippines, a resident of the City of Makati, of good moral character, and a member of
the Philippine Bar. He must have practiced his profession for at least five (5) years
immediately preceding the date of his appointment.
The city legal officer shall receive such compensation, emoluments, and allowances as
may be determined by law.
The city legal officer, the chief legal counsel of the City, shall take charge of the office for
legal department, and shall:
(a) Formulate measures for the consideration of the sangguniang panlungsod and
provide legal assistance and support to the city mayor in carrying out the delivery of
basic services and provisions of adequate facilities;

(b) Develop plans and strategies and upon approval thereof by the city mayor,
implement the same, particularly those which have to do with programs and projects
related to legal services which the city mayor is empowered to implement and which the
sangguniang panlungsod is empowered to provide;

(c) Recommend measures to the sangguniang panlungsod and advise the city mayor on
all matters related to upholding the rule of law;

(d) Be in the frontline of protecting human rights and prosecuting any violations thereof,
particularly those which occur during and in the aftermath of man-made or natural
disasters, and calamities; and

(e) Perform such other duties and functions and exercise such other powers as provided
for under Republic Act No. 7160, otherwise known as the Local Government Code of
1991, and those that are prescribed by law or ordinance.
Section 38. The City Social Welfare and Development Officer. The city social welfare
and development officer must be a citizen of the Philippines, a resident of the City of
Makati, of good moral character, a duly licensed social worker or a holder of a college
degree preferably in sociology or any other related course from a recognized college or
university, and a first grade civil service eligible or its equivalent. He must have acquired
experience in the practice of social work for at least five (5) years immediately preceding
the date of his appointment.
The city social welfare and development officer shall receive such compensation,
emoluments, and allowances as may be determined by law.
The city social welfare and development officer shall take charge of the social welfare
department and shall:

(a) Formulate measures for the approval of the sangguniang panlungsod and provide
technical assistance and support to the city mayor in carrying out measures to ensure
the delivery of basic services and provision of adequate facilities relative to social
welfare and development services;

(b) Develop plans and strategies and upon approval thereof by the city mayor,
implement the same, particularly those which have to do with social welfare programs
and projects which the city mayor is empowered to implement and which the
sangguniang panlungsod is empowered to provide;

(c) Be in the frontline of service delivery; particularly those which have to do with
immediate relief during and in assistance in the aftermath of man-made and natural
disasters and natural calamities;

(d) Recommend to the sangguniang panlungsod and advise the city mayor on all other
matters related to social welfare and development services which will improve the
livelihood and living conditions of the inhabitants; and

(e) Perform such other duties and functions and exercise such other powers as provided
for under Republic Act No. 7160, otherwise known as the Local Government Code of
1991, and those that are prescribed by law or ordinance.
Section 39. The City Environment and Natural Resources Officer. The city
environment and natural resources officer must be a citizen of the Philippines, a resident
of the City of Makati, of good moral character, a holder of a college degree preferably in
environment, forestry, agriculture or any other related course from a recognized college
or university, and a first grade civil service eligible or its equivalent. He must have
acquired experience in the environmental and natural resources management
conservation, and utilization work for at least five (5) years immediately preceding the
date of his appointment.
The city environment and natural resources officer shall receive such compensation,
emoluments, and allowances as may be determined by law.
The city environment and natural resources officer shall take charge of the
environmental service department and shall:
(a) Formulate measures for the consideration of the sangguniang panlungsod and
provide technical assistance and support to the city mayor in carrying out measures to
ensure the delivery of basic services and provision of adequate facilities relative to
environment and natural resources services;

(b) Develop plans and strategies and upon approval thereof by the city mayor,
implement the same, particularly those which have to do with environment and natural
resources programs and projects which the city mayor is empowered to implement and

which the sangguniang panlungsod is empowered to provide;

(c) Be in the frontline of delivery of services concerning the environment and natural
resources, particularly in the renewal and rehabilitation of the environment during and in
the aftermath of man-made and natural disasters and calamities;

(d) Recommend measures to the sangguniang panlungsod and advise the city mayor on
all matters relative to the protection, conservation, maximum utilization, application of
appropriate technology and other matters related to the environment and natural
resources; and

(e) Perform such other duties and functions and exercise such other powers as provided
for under Republic Act No. 7160, otherwise known as the Local Government Code of
1991, and those that are prescribed by law or ordinance.
Section 40. The City Architect. The city architect must be a citizen of the Philippines, a
resident of the City of Makati, of good moral character, and a duly licensed architect. He
must have practiced his profession for at least five (5) years immediately preceding the
date of his appointment.
The city architect shall receive such compensation, emoluments, and allowances as may
be determined by law.
The city architect shall take charge of the office on architectural planning and design and
shall:
(a) Formulate measures for the consideration of the sangguniang panlungsod and
provide technical assistance and support to the city mayor in carrying out measures to
ensure the delivery of basic services and provisions of adequate facilities relative to
architectural planning and design;

(b) Develop plans and strategies and upon approval thereof by the city mayor,
implement the same, particularly those which have to do with architectural planning and
design of programs and projects which the city mayor is empowered to implement and
which the sangguniang panlungsod is empowered to provide;

(c) Be in the frontline of the delivery of services involving architectural planning and
design, particularly those related to the redesigning of spatial distribution of basic
facilities and physical structures during and in the aftermath of man-made and natural
disasters and calamities;

(d) Recommend to the sangguniang panlungsod and advise the city mayor on all other
matters relative to architectural planning and design as it relates to the local

socioeconomic development of the City; and

(e) Perform such other duties and functions and exercise such other powers as provided
for under Republic Act No. 7160, otherwise known as the Local Government Code of
1991, and those that are prescribed by law or ordinance.
Section 41. The City Information and Community Relations Officer. The city
information and community relations officer must be a citizen of the Philippines, a
resident of the City of Makati, of good moral character, a holder of a college degree
preferably in journalism, mass communication or any other related course from a
recognized college or university, and a first grade civil service eligible or its equivalent.
He must have experience in writing articles and research papers, or in writing for print,
television or broadcast media for at least five (5) years immediately preceding the date
of his appointment.
The city information and community relations officer shall receive such compensation,
emoluments, and allowances as may be determined by law.
The city information and community relations officer shall take charge of the city
information and community relations department and shall:
(a) Formulate measures for the consideration of the sangguniang panlungsod and
provide technical assistance and support to the city mayor in providing the information
and research data required for the delivery of basic services and provision of adequate
facilities so that the public becomes aware of said services and may fully avail of the
same;

(b) Develop plans and strategies and upon approval thereof by the city mayor,
implement the same, particularly those which have to do with public information and
research data to support programs and projects which the city mayor is empowered to
implement and which the sangguniang panlungsod is empowered to provide;

(c) Be in the frontline in providing information during and in the aftermath of man-made
and natural disasters and calamities, with special attention to the victims thereof, to help
minimize injuries and casualties during and after the emergency, and to accelerate relief
and rehabilitation;

(d) Recommend to the sangguniang panlungsod and advise the city mayor on all other
matters relative to public information and research data as it relates to the total
socioeconomic development of the City; and

(e) Perform such other duties and functions and exercise such other powers as provided
for under Republic Act No. 7160, otherwise known as the Local Government Code of
1991, and those that are prescribed by law or ordinance.

Section 42. The City Cooperative Officer. The city cooperative officer must be a citizen
of the Philippines, a resident of the City of Makati, of good moral character, a holder of a
college degree preferably in business administration with special training in cooperatives
or any related course from a recognized college or university, and a first grade civil
service eligible or its equivalent. He must have experience in cooperatives organization
and management for at least five (5) years immediately preceding the date of his
appointment.
The city cooperative officer shall receive such compensation, emoluments, and
allowances as may be determined by law.
The city cooperative officer shall take charge of the office for the development of
cooperatives and shall:
(a) Formulate measures for the consideration of the sangguniang panlungsod and
provide technical assistance and support to the city mayor in carrying out measures to
ensure the delivery of basic services and provision of facilities through the development
of cooperatives, and in providing access to such services and facilities;

(b) Develop plans and strategies and upon approval thereof by the city mayor,
implement the same, particularly those which have to do with the integration of
cooperative principles and methods in programs and projects which the city mayor is
empowered to implement and which the sangguniang panlungsod is empowered to
provide;

(c) Be in the frontline of cooperatives organization, rehabilitation or viabilityenhancement, particularly during and in the aftermath of man-made and natural
calamities and disasters, to aid in their survival and, if necessary, subsequent
rehabilitation;

(d) Recommend measures to the sangguniang panlungsod and advise the city mayor on
all other matters relative to cooperatives development and viability-enhancement which
will improve the livelihood and quality of life of the inhabitants; and

(e) Perform such other duties and functions and exercise such other powers as provided
for under Republic Act No. 7160, otherwise known as the Local Government Code of
1991, and those that are prescribed by law or ordinance.
Section 43. The City Population Officer. The city population officer must be a citizen of
the Philippines, a resident of the City of Makati, of good moral character, a holder of a
college degree with specialized training in population development from a recognized
college or university, and a first grade civil service eligible or its equivalent. He must
have experience in the implementation of programs on population development and
responsible parenthood for at least three (3) years immediately preceding the date of his
appointment.

The city population officer shall receive such compensation, emoluments, and
allowances as may be determined by law.
The city population officer shall take charge of the office on population development and
shall:
(a) Formulate measures for the consideration of the sangguniang panlungsod and
provide technical assistance and support to the city mayor in carrying out measures to
ensure the delivery of basic services and provision of adequate facilities relative to the
integration of the population development, principles and in providing access to said
services and facilities;

(b) Develop plans and strategies and upon approval thereof by the city mayor,
implement the same particularly those which have to do with the integration of
population development principles and methods in programs and projects which the city
mayor is empowered to implement and which the sangguniang panlungsod is
empowered to provide; and

(c) Perform such other duties and functions and exercise such other powers as provided
for under Republic Act No. 7160, otherwise known as the Local Government Code of
1991, and those that are prescribed by law or ordinance.
Section 44. The City Veterinarian. The city veterinarian must be a citizen of the
Philippines, a resident of the City of Makati, of good moral character, and a licensed
doctor of veterinary medicine. He must have practiced his profession for at least three
(3) years immediately preceding the date of his appointment.
The city veterinarian shall receive such compensation, emoluments, and allowances as
may be determined by law.
The city veterinarian shall take charge of the office of veterinary services and shall:
(a) Formulate measures for the consideration of the sangguniang panlungsod and
provide technical assistance and support to the city mayor in carrying out measures to
ensure the delivery of basic services and provision of adequate facilities;

(b) Develop plans and strategies and upon approval thereof by the city mayor,
implement the same particularly those which have to do with veterinary related activities
which the city mayor is empowered to implement and which the sangguniang
panlungsod is empowered to provide;

(c) Be in the frontline of veterinary related activities, such as the outbreak of highlycontagious and deadly diseases, and in situations resulting in the depletion of animals
for work and human consumption, particularly those arising from and in the aftermath of
man-made and natural disasters and calamities;

(d) Recommend measures to the sangguniang panlungsod and advise the city mayor on
all other matters relative to veterinary services which will increase the number and
improve the quality of livestock, poultry, and other domestic animals used for work or
human consumption; and

(e) Perform such other duties and functions and exercise such other powers as provided
for under Republic Act No. 7160, otherwise known as the Local Government Code of
1991, and those that are prescribed by law or ordinance.
Section 45. The City General Services Officer. The city general services officer must
be a citizen of the Philippines, a resident of the City of Makati, of good moral character, a
holder of a college degree on public administration, business administration and
management from a recognized college or university, and a first grade civil service
eligible or its equivalent. He must have acquired experience in general services,
including management of supply, property, solid waste disposal, and general sanitation
for at least five (5) years immediately preceding the date of his appointment.
The city general services officer shall receive such compensation, emoluments, and
allowances as may be determined by law.
The city general services officer shall take charge of the office on general services and
shall:
(a) Formulate measures for the consideration of the sangguniang panlungsod and
provide technical assistance and support to the city mayor in carrying out measures to
ensure the delivery of basic services and provision of adequate facilities which require
general services expertise and technical support services;

(b) Develop plans and strategies and upon approval thereof by the city mayor,
implement the same, particularly those which have to do with general services
supportive of the welfare of the inhabitants of the City which the city mayor is
empowered to implement and which the sangguniang panlungsod is empowered to
provide;

(c) Take custody of and be accountable for all properties, real or personal, owned by the
City, and those granted to it in the form of donation, reparation, assistance, and
counterpart of joint projects;

(d) Be in the frontline of general services related activities, such as the possible or
imminent destruction or damage to records, supplies, properties, and structure materials
or debris, particularly during and in the aftermath of man-made and natural disasters and
calamities;

(e) Recommend to the sangguniang panlungsod and advise the city mayor on all other
matters relative to general services; and

(f) Perform such other duties and functions and exercise such other powers as provided
for under Republic Act No. 7160, otherwise known as the Local Government Code of
1991, and those that are prescribed by law or ordinances.
Section 46. Other City Officials. In addition to the officials enumerated above, the City
of Makati shall also have the following officials with the corresponding qualifications,
duties, functions, and compensation:
(a) The City Education Officer The city education officer must be a citizen of the
Philippines, a resident of the City of Makati, of good moral character, a holder of a
college degree in education or any other related course from a recognized college or
university and a first grade civil service eligible or its equivalent. He must have practiced
his profession for at least five (5) years immediately preceding the date of his
appointment.
The city education officer shall receive such compensation, emoluments, and
allowances as may be determined by law.
The city education officer shall take charge of the city education department and shall:
(1) Formulate measures for the consideration of the sangguniang panlungsod and
provide technical assistance and support to the city mayor in carrying out measures to
ensure the delivery of basic services and provision of adequate facilities relative to
education;

(2) Develop plans and strategies and upon approval thereof by the city mayor,
implement the same, particularly those which have to do with education supportive of the
welfare of the inhabitants of the City which the city mayor is empowered to provide;

(3) Liaison with teachers and principals assigned in the city as well as sit as additional
member of the Local school board of the City;

(4) Study, evaluate and recommend the allocation of the Special Education Fund (SEF);
and

(5) Perform such other duties and functions and exercise such other powers as may be
prescribed by law or ordinance.
(b) The City Youth and Sports Development Officer The city youth and sports
development officer must be a citizen of the Philippines, a resident of the City of Makati,
of good moral character, a holder of a college degree from a recognized college or
university, and a first grade civil service eligible or its equivalent. He must have acquired
experience in sports development or in any related field for at least five (5) years
immediately preceding the date of his appointment.

The city youth and sports development officer shall receive such compensation,
emoluments, and allowances as may be determined by law.
The city youth and sports development office shall take charge of the youth and sports
development department and shall:
(1) Develop plans and strategies and upon the approval thereof by the city mayor,
implement the same, particularly those which have to do with youth and sports programs
and projects which the city mayor is empowered to implement and which the
sangguniang panlungsod is empowered to provide; and

(2) Perform such other duties and functions and exercise such other powers as may be
prescribed by law or ordinance.
(c) The City Public Safety Officer The city public safety officer must be a citizen of the
Philippines, a resident of the City of Makati, of good moral character, a holder of a
college degree from a recognized college or university, and a first grade civil service
eligible or its equivalent. He must have acquired experience in public safety
management for at least five (5) years immediately preceding the date of his
appointment.
The city public safety officer shall receive such compensation, emoluments, and
allowances as may be determined by law.
The city public safety officer shall take charge of the public safety department and shall:
(1) Develop plans and strategies and upon approval thereof by the city mayor,
implement the same, particularly those relating to public safety which the city mayor is
empowered to implement and which the sangguniang panlungsod is empowered to
provide; and

(2) Perform such other duties and functions and exercise such other powers as may be
prescribed by law or ordinance.
ARTICLE IX THE CITY FIRE STATION SERVICE AND THE CITY JAIL SERVICE
Section 47. The City Fire Station Service. There shall be established in the City at
least one (1) fire station with adequate personnel, firefighting facilities and equipment,
subject to the standards, rules and regulations as may be promulgated by the
Department of the Interior and Local Government. The City shall provide the necessary
land or site of the station.
The city fire station service shall be headed by a city fire marshall whose qualifications
shall be as those provided for under Republic Act No. 6975, otherwise known as the
Philippine National Police Law.
The city fire station shall be responsible for fire protection and various emergency
services such as rescue and evacuation of injured people at fire-related incidents and in
general, all fire prevention and suppression measures to secure the safety of life and
property of the citizenry.

Section 48. The City Jail Service. There shall be established and maintained in the
City a secured, clean, adequately equipped, and sanitary jail for the custody and
safekeeping of prisoners, any fugitive from justice, or person detained, awaiting
investigation or trial and/or violent mentally-ill person who endangers himself or the
safety of other, duly certified as such as by the proper and medical health officer,
pending the transfer to a mental institution.
The city jail service shall be headed by a city jail warden who must be a graduate of a
four-year course in psychology, psychiatry, sociology, nursing, social work or criminology
who shall assist in the immediate rehabilitation of individuals or detention of prisoners.
Great care must be exercised so that the human rights of these prisoners are respected
and protected, and their spiritual and physical well-being are properly and promptly
attended to.
Section 49. Municipal Ordinances Existing at the Time of the Approval of this Act. All
municipal ordinances of the Municipality of Makati existing at the time of the approval of
this Act shall continue to be in force within the City of Makati until the sangguniang
panlungsod shall, by ordinance, provide otherwise.
Section 50. Plebiscite. The City of Makati shall acquire corporate existence upon the
ratification of its creation by a majority of the votes cast by the qualified voters in a
plebiscite to be conducted in the present Municipality of Makati within sixty (60) days
from the approval of this Act. The expenses for such plebiscite shall be borne by the
Municipality of Makati. The Commission on Elections shall conduct and supervise such
plebiscite.
Section 51. Officials of the City of Makati. The present elective officials of the
Municipality of Makati shall continue as the officials of the City of Makati and shall
exercise their powers and functions until such time that a new election is held and the
duly elected officials shall have already qualified and assumed their offices. Provided,
the new city will acquire a new corporate existence. The appointive officials and
employees of the City shall likewise continue exercising their functions and duties and
they shall be automatically absorbed by the city government of the City of Makati.
Section 52. Legislative Districts. Upon its conversion into a highly urbanized city,
Makati shall thereafter have at least two (2) legislative districts that shall initially
correspond to the two (2) existing districts created under Section 3(a) of Republic Act
No. 7166 as implemented by the Commission on Elections to commence at the next
national elections to be held after the effectivity of this Act. Henceforth barangays
Magallaes, Dasmarias, and Forbes shall be with the first district, in lieu of Barangay
Guadalupe-Viejo which shall form part of the second district.
Section 53. Limitation. Within three (3) years from the approval of this Act, no new
racetrack, jai-alai fronton, gambling casino or cockpit shall be licensed or allowed to
operate in the city.
Section 54. Applicability of Laws. The provisions of Republic Act No. 7160, otherwise
known as the Local Government Code of 1991, Presidential Decree No. 824, and other
laws pertaining to Metropolitan Manila and such laws as are applicable to highly
urbanized cities shall govern the City of Makati insofar, as they are not inconsistent with
the provisions of this Act.
Section 55. Reservation. Nothing herein contained shall preclude the determination by

the appropriate agency or forum of boundary disputes or cases involving questions of

territorial jurisdiction between the City of Makati and any adjoining local government
units even after the effectivity of this Act.
Section 56. Effectivity Clause. This Act shall take effect upon.
EXECUTIVE ORDER NO. 903 July 21, 1983
PROVIDING FOR A REVISION OF EXECUTIVE ORDER NO. 778 CREATING THE
MANILA INTERNATIONAL AIRPORT AUTHORITY, TRANSFERRING EXISTING
ASSETS OF THE MANILA INTERNATIONAL AIRPORT TO THE AUTHORITY, AND
VESTING THE AUTHORITY WITH POWER TO ADMINISTER AND OPERATE THE
MANILA INTERNATIONAL AIRPORT
WHEREAS, the Manila International Airport as the principal airport of the Philippines for
both international and domestic air traffic, is required to provide standards of airport
accommodation and service comparable with the best airports in the world;
WHEREAS, domestic and other terminals, general aviation and other facilities, have to
be upgraded to meet the current and future air traffic and other demands of aviation in
Metro Manila;
WHEREAS, a management and organization study has indicated that the objectives of
providing high standards of accommodation and service within the context of a
financially viable operation, will best be achieved by a separate and autonomous body;
and
WHEREAS, under Presidential Decree No. 1416, as amended by Presidential Decree
No. 1772, the President of the Philippines is given continuing authority to reorganize the
National Government, which authority includes the creation of new entities, agencies
and instrumentalities of the Government;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by
virtue of the powers vested in me by the Constitution, and pursuant to the authority
vested in me by Presidential Decree No. 1416, as amended, do hereby order:
Sec. 1. Title. This Executive Order shall be known as the "Revised Charter of the Manila
International Airport Authority."
Sec. 2. Definition. For the purpose of this Executive Order, the terms used herein shall
have the following meaning:
(a) "Authority" shall mean the Manila International Airport Authority;
(b) "Board" shall mean the Board of Directors of the Authority appointed by the President
under Section 7 of this Executive Order;
(c) "Airport" shall mean the new Manila Airport, including the Manila Domestic Airport,
and all its installations, facilities and equipment, and such other airports in Metro Manila
as may, in the future, be constructed and administered by the Authority.

Sec. 3. Creation of the Manila International Airport Authority. There is hereby established
a body corporate to be known as the Manila International Airport Authority which shall be
attached to the Ministry of Transportation and Communications. The principal office of
the Authority shall be located at the New Manila International Airport. The Authority may
establish such offices, branches, agencies or subsidiaries as it may deem proper and
necessary; Provided, That any subsidiary that may be organized shall have the prior
approval of the President.
The land where the Airport is presently located as well as the surrounding land area of
approximately six hundred hectares, are hereby transferred, conveyed and assigned to
the ownership and administration of the Authority, subject to existing rights, if any. The
Bureau of Lands and other appropriate government agencies shall undertake an actual
survey of the area transferred within one year from the promulgation of this Executive
Order and the corresponding title to be issued in the name of the Authority. Any portion
thereof shall not be disposed through sale or through any other mode unless specifically
approved by the President of the Philippines.
Sec. 4. Purposes and Objectives. The Authority shall have the following purposes and
objectives:
(a) To help encourage and promote international and domestic air traffic in the
Philippines as a means of making the Philippines a center of international trade and
tourism and accelerating the development of the means of transportation and
communications in the country. lawphi1.net
(b) To formulate and adopt for application in the Airport internationally acceptable
standards of airport accommodation and service; and
(c) To upgrade and provide safe, efficient, and reliable airport facilities for international
and domestic air travel.
Sec. 5. Functions, Powers, and Duties. The Authority shall have the following functions,
powers and duties:
(a) To formulate, in coordination with the Bureau of Air Transportation and other
appropriate government agencies, a comprehensive and integrated policy and program
for the Airport and to implement, review and update such policy and program
periodically;
(b) To control, supervise, construct, maintain, operate and provide such facilities or
services as shall be necessary for the efficient functioning of the Airport;
(c) To promulgate rules and regulations governing the planning, development,
maintenance, operation and improvement of the Airport and to control and/or supervise
as may be necessary the construction of any structure or the rendition of any service
within the Airport;
(d) To sue and be sued in its corporate name;
(e) To adopt and use a corporate seal;

(f) To succeed by its corporate name;

(g) To adopt its by-laws, and to amend or repeal the same from time to time;
(h) To execute or enter into contracts of any kind or nature;
(i) To acquire, purchase, own, administer, lease, mortgage, sell or otherwise dispose of
any land, building, airport facility, or property of whatever kind and nature, whether
movable or immovable, or any interest therein;
(j) To exercise the power of eminent domain in the pursuit of its purposes and objectives;
(k) To levy and collect dues, charges, fees or assessments for the use of the airport
premises, works, appliances, facilities or concessions, or for any service provided by the
Authority, subject to the approval of the Minister of Transportation and Communications
in consultation with the Minister of Finance, and subject further to the provisions of Batas
Pambansa Blg. 325 where applicable;
(l) To invest its idle funds, as it may deem proper, in government securities and other
evidences of indebtedness of the government;
(m) To provide services, whether on its own or otherwise, within the Airport or the
approaches thereof, which shall include but not shall be limited to, the following:
(1) Aircraft movement and allocation of parking areas of aircraft on the ground;
(2) Loading and unloading of aircrafts;
(3) Passenger handling and other services directed towards the care, convenience and
security of passengers, visitors and other airport users; and
(4) Sorting, weighing, measuring, warehousing or handling of baggage and goods.
(n) To perform such other acts and transact such other business, directly or indirectly
necessary, incidental or conducive to the attainment of the purposes and objectives of
the Authority, including the adoption of necessary measures to remedy congestion in the
airport; and
(o) To exercise all the powers of a corporation under the Corporation Law, insofar as
these powers are not inconsistent with the provisions of this Executive Order.
Sec. 6. Police Authority. The Authority shall have the power to exercise such police
authority as may be necessary within its premises to carry out its functions and attain its
purposes and objectives, without prejudice to the exercise of functions within the same
premises by the Ministry of National Defense through the Aviation Security Command
(AVSECOM) as provided in LOI 961: Provided, That the Authority may request the
assistance of law enforcement agencies, including request for deputization as may be
required. Such police authority shall be exercised in connection with the following,
among others:

(a) Maintenance of security to passengers, cargoes, aircraft, airport equipment,

structures, facilities, personnel, funds and documents;
(b) Regulating the entry to, exit from and movement within the Airport;
(c) Maintenance of peace and order within the premises of the Authority in coordination
with local police authorities and other authorized peace-keeping entities within the
Airport;
(d) Regulation and supervision of private security agencies operating in the Airport; and
(e) Enforcement of rules and regulations promulgated by the Authority pursuant to law.
Sec. 7. Board of Directors. The corporate powers of the Authority shall be exercised by
and vested in a Board of seven (7) members, which shall be composed of a Chairman, a
Vice-Chairman and five (5) members. The Minister of Transportation and
Communications shall be the ex-officio Chairman of the Board. The General Manager of
the Authority shall be the ex-officio Vice-Chairman of the Board. The Minister of Finance,
the Minister of Tourism, the Presidential Executive Assistant, the Chief of Staff of the
Armed Forces of the Philippines, and the Commissioner of Immigration and Deportation
shall be ex-officio members.
In the absence of the Chairman, the Vice-Chairman shall act as Chairman. The
Chairman, the Vice-Chairman and the Board members may designate their respective
representatives to attend Board meetings in their absence. Such representatives shall
attend Board meetings and the meetings of any committee assigned to their principals,
and receive the corresponding per diems.
The Board shall meet regularly once a month and as often as the exigencies of the
service demand. The presence of at least four (4) members of their representatives shall
constitute a quorum; and the vote of a majority of the members or representatives
present there being a quorum shall be necessary for the adoption of any rule, regulation,
resolution, decision or any other act of the Board.
The Members of the Board or their representatives shall receive per diems, as the Board
may approve, for each Board meeting actually attended by them: Provided, That such
per diem shall not exceed One Thousand Pesos (P1,000.00) during any one (1) month
for each member or representative.
Sec. 8. Functions, Powers and Duties of the Board. Without prejudice to the powers
vested in the Board by virtue of the other Sections herein, the Board shall have the
following functions, powers and duties:
(a) To define and approve the programs, plans, policies, procedures and guidelines of
the Authority for the development and operation of the Airport within the context of the
overall Government objectives, and to control the management, operation and
administration of the Authority.
(b) To recommend to the President of the Philippines, for appointment, a General
Manager of the Authority who shall be the Chief Executive Officer of the Authority;

(c) To approve the Authority's organizational and administrative structure, staffing

pattern, operating and capital expenditures, and financial budgets, prepared in
accordance with the corporate plan of the Authority, upon recommendation of the
General Manager;
(d) To approve salary ranges, benefits and other terms and conditions of service for all
officers and employees of the Authority, upon recommendation of the General Manager,
which shall, as far as possible, be competitive with those offered in the private sector,
subject to existing laws, rules and regulations;
(e) To fix the rate of dues, charges, fees or assessments for the use of the Airport
premises, works, appliances, facilities, concessions, services and other fees and
charges related to the activities of the Airport, upon recommendation of the General
Manager; and
(f) Generally, to exercise all the functions and powers necessary or incidental to attain
the purposes and objectives of this Executive Order.
Sec. 9. Functions, Powers and Duties of the General Manager. The General Manager
shall be directly responsible to the Board, and shall have the following functions, powers
and duties:
(a) To direct and supervise the management, operation and administration of the
Authority, and its integral units including its buildings, runways, facilities and equipment,
so as to provide international standards of service to airport users, and to ensure its
financial stability in accordance with the programs, plans, policies, procedures and
guidelines of the Board;
(b) To provide general supervision and overall coordination of all government agencies
operating in the Airport with respect to the allocation and use of building space and
airport premises.
(c) To undertake researches, studies, investigations, and other activities related to the
present operations and future development requirements of the Airport, on his own
initiative or upon instructions of the Board, and to submit comprehensive reports and
appropriate recommendations to the Board for its information and action;
(d) To appoint transfer, suspend, remove or otherwise discipline any subordinate officer
or employee of the Authority, subject to the approval of the Board and to engage either
on contractual basis and other suitable arrangements the services of highly qualified
professionals, experts, technical advisers or consulting firms and to determine their
compensation or fees including other terms and conditions of employment as may be
authorized by the Board;
(e) To enter into a memorandum of agreement/understanding, contracts or such other
arrangements as may be feasible with such government agencies or private entities
operating or providing services in the Authority to ensure proper coordination and
integration of all activities in the Authority, subject to the approval of the Board or such
laws, rules and regulations as are applicable in the exercise of such authority;

(f) To establish and maintain a system, in coordination with the appropriate government
offices and agencies, for the regular and prompt dissemination of financial, statistical
and other relevant data within the Authority and to the Board;
(g) Within the limits of the authority delegated to him by the Board, to execute contracts,
incur obligations, acquire and dispose of assets, and deliver documents, on behalf of the
Authority;
(h) To implement and enforce decisions, orders, rules and regulations issued, prescribed
or adopted by the Board; and
(i) To perform such other duties as the Board may delegate or assign, and such other
acts as may be necessary and proper to implement this Executive Order.
Sec. 10. Capital. The capital of the Authority to be contributed by the National
Government shall be Two and One Half Billion Pesos (P2,500,000,000.00). The initial
capital shall consist of:
(a) The value of fixed assets (including airport facilities, runways and equipment) and
such other properties, movable and immovable, which may be contributed by the
National Government or transferred by it from any of its agencies, the valuation of which
shall be determined jointly with the Office of Budget and Management and the
Commission on Audit on the date of such contribution or transfer after making due
allowance for depreciation and other deduction or taking into account the loans and
other liabilities of the Authority at the time of the takeover of the assets and other
properties;
(b) The value of such real estate owned and administered by the Manila International
Airport.
(c) The value of the net current assets (including stocks and receivables less prepaid
payables and accrued expenses) and such cash amount as may be deemed an
appropriate initial balance. Such initial cash amount, as approved by the President of the
Philippines, shall be more or less equivalent to six (6) months working capital
requirements of the Authority, and shall be appropriated out of the funds of the National
Treasury. lawphi1.net
Thereafter, the government contribution to the capital of the Authority shall be provided
for in the General Appropriations Act.
Sec. 11. Contribution to the General Fund for the Maintenance and Operation of other
Airports. Sixty-Five per centum (65%) of the annual gross operating income of the
Authority shall revert to the general fund in the National Treasury to be used for the
maintenance and operation of other international and domestic airports in the country.
Sec. 12. Auditor. The Chairman of the Commission on Audit shall be the ex-officio
Auditor of the Authority. For this purpose, he may appoint a representative who shall be
the auditor of the Authority, together with the necessary personnel to assist said
representative in the performance of his duties. The number and salaries of the auditor
and said personnel shall be determined by the Chairman of the Commission on Audit,

subject to the rules and regulations of the Commission on Audit. Said salaries and all
other expenses of maintaining the auditor's office shall be paid by the Authority.
lawphi1.net
The Auditor shall, as soon as practicable, but not later than three (3) months after the
accounts have been submitted to audit, send an annual report to the Board. The Auditor
may also submit such periodic or special reports as the Board may deem necessary.
lawphi1.net
Sec. 13. Legal Counsel. The Government Corporate Counsel shall be the Legal Counsel
of the Authority: Provided, That the Authority may establish its own legal department to
handle the day-to-day legal matters affecting the affairs of the Authority. For the
performance of his duties and the services of the Legal Staff of the Office of the
Government Corporate Counsel, the Board shall appropriate, and the General Manager
shall remit, such amount as shall be determined by the Government Corporate Counsel.
Sec. 14. Annual Report. The Board shall submit to the President of the Philippines
through the Ministry of Transportation and Communications, together with the audit
report on the relevant accounts, an annual report generally dealing with the activities and
operations of the Authority.
Sec. 15. Applicability of Civil Service Laws. The Authority and its officials and employees
shall be subject to the Civil Service law and its rules and regulations.
Sec. 16. Borrowing Power. The Authority may, after consultation with the Minister of
Finance and with the approval of the President of the Philippines, as recommended by
the Minister of Transportation and Communications, raise funds, either from local or
international sources, by way of loans, credits or securities, and other borrowing
instruments, with the power to create pledges, mortgages and other voluntary liens or
encumbrances on any of its assets or properties.
All loans contracted by the Authority under this Section, together with all interests and
other sums payable in respect thereof, shall constitute a charge upon all the revenues
and assets of the Authority and shall rank equally with one another, but shall have
priority over any other claim or charge on the revenue and assets of the Authority:
Provided, That this provision shall not be construed as a prohibition or restriction on the
power of the Authority to create pledges, mortgages, and other voluntary liens or
encumbrances on any assets or property of the Authority.
Except as expressly authorized by the President of the Philippines the total outstanding
indebtedness of the Authority in the principal amount, in local and foreign currency, shall
not at any time exceed the net worth of the Authority at any given time.
The President or his duly authorized representative after consultation with the Minister of
Finance may guarantee, in the name and on behalf of the Republic of the Philippines,
the payment of the loans or other indebtedness of the Authority up to the amount herein
authorized.
Sec. 17. Increase or Decrease of Rates. The Authority may increase or decrease the
rates of the dues, charges, fees or assessments collectible by the Authority to protect

the interest of the Government and provide a satisfactory return on the Authority's
assets, and may adjust the schedule of such rates so as to reflect the cost of facilities or
services provided or rendered. The Authority may periodically review all dues, charges,
fees or assessments collectible by the Authority, and shall make such adjustments to the
schedule of rates as shall adequately reflect any increase in price levels and (in the case
of concession rental) of volume of traffic through the Airport, subject to the provisions of
Batas Pambansa Blg. 325, whenever practicable.
Sec. 18. Remedies for Non-Payment. If the owner or agent of any aircraft refuses or
neglects to pay on demand any rate or charges made in pursuance of Section 17 hereof,
the Authority may, in addition to any other remedy provided by law, detain, on its own
authority, such aircraft equipment or furniture belonging to the owner or agent of said
aircraft, until the amounts due have been paid.
Sec. 19. Fines and Penalties. The Authority shall have the power to exact reasonable
administrative fines in such specific amounts and for such specific violations arising out
of the use of the Airport, as shall be prescribed in rules and regulations which the
Authority is hereby authorized to issue for the purpose, which amount of fine shall not be
less than Fifty Pesos (P50.00) nor shall be more than Ten Thousand Pesos
(P10,000.00).
Sec. 20. Competitive Tender. The General Manager, shall as far as practicable, grant
permits or concessions to trade or business within the areas controlled by the Authority
to the highest bidder after a competitive public bidding: Provided, That the bidding
requirements may be waived in the case of banks, branches of post office, Bureau of
Telecommunications, other government agencies with airport-related activities and those
who are engaged in airline operations or where the fees, rates or assessments to be
charged have been fixed by the Board.
The General Manager shall require permittees or concessionaires to provide goods or
services acceptable under international standards and at such prices similar to goods or
services in Metropolitan Manila or airports in other countries: Provided, That such final
awards of permits or concessions to successful bidders shall be subject to the approval
of the Board.
Sec. 21. Tax Exemptions. The Authority shall be exempt from realty taxes imposed by
the National Government or any of its political subdivisions, agencies and
instrumentalities: Provided, That no tax exemption herein granted shall extend to any
subsidiary which may be organized by the Authority. lawphi1.net
Sec. 22. Transfer of Existing Facilities and Intangible Assets. All existing public airport
facilities, runways, lands, buildings and other property, movable or immovable, belonging
to the Airport, and all assets, powers, rights, interests and privileges belonging to the
Bureau of Air Transportation relating to airport works or air operations, including all
equipment which are necessary for the operation of crash fire and rescue facilities, are
hereby transferred to the Authority.
Sec. 23. Projects in Progress. All ongoing projects relating to the construction of airport
facilities shall be continued by the agency or agencies involved until completion.
Thereafter, such projects shall be transferred to the Authority, in accordance with

agreement among agencies concerned. Any disagreement, relating to such transfer,

shall be submitted to the President of the Philippines for final decision.
Sec. 24. Transfer of Liabilities and Debts. Upon the transfer to and acceptance by the
Authority of the existing physical facilities, intangible assets and completed projects
referred to in the preceding sections, all debts, liabilities, and obligations of the Bureau of
Air Transportation and other government agencies or entities concerned in respect of
such physical facilities, tangible assets and completed projects within the Airport, shall
likewise be assumed by the Authority. lawphi1.net
Sec. 25. Abolition of the Manila International Airport as a Division in the Bureau of Air
Transportation and Transitory Provisions. The Manila International Airport including the
Manila Domestic Airport as a division under the Bureau of Air Transportation is hereby
abolished.
The Airport General Manager of the abolished Manila International Airport shall continue
in office and shall perform all powers and functions of the Authority until such time as a
General Manager is appointed for the smooth transfer of responsibility from the
abolished entity to the Authority, as well as the determination of the personnel to be
retained: Provided, That, all officials and employees whose services are terminated shall
be entitled to all benefits and gratuities provided for under existing laws.
Sec. 26. Repealing Clause. All laws, executive orders, letters of instructions, rules and
regulations, or provisions thereof, which are inconsistent with the provisions of this
Executive Order are hereby repealed, amended, or modified accordingly. lawphi1.net
Sec. 27. Separability Clause. The provisions of this Executive Order are hereby declared
separable. If any portion thereof shall be held invalid or unconstitutional, such invalidity
or unconstitutionality shall not effect the other provisions which shall remain in full force
and effect.
Sec. 28. Effectivity. This Executive Order shall take effect immediately. lawphi1.net
Done in the City of Manila, Philippines, this 21st day of July in the Year of Our Lord,
Nineteen Hundred and Eighty-Three.
REPUBLIC ACT NO. 2640 - AN ACT TO CREATE A PUBLIC CORPORATION
TO BE KNOWN AS THE VETERANS FEDERATION OF THE PHILIPPINES,
DEFINING ITS POWERS, AND FOR OTHER PURPOSES

Section 1. The following persons, to wit: Emilio Aguinaldo, of Associacion de los

Veteranos de la Revolucion; Margarito Torralba of the AFP Retired Veterans Association (AFREVA);
Lorenzo B. Cabrera of the Confederation of the Filipino Veterans (CONVETS); Teodoro V. Kalaw of
the Defenders of Bataan and Corregidor; Fausto S. Alberto of the ECLGA Veterans Association;
Enrique C. Rimando of the FAIT Veterans Legion; Francisco L. Gonzales of the Filipino Disabled
Veterans Association; Basilia M. Baja of the Gold Star Mothers and United War Widows and
Orphans Association of the Philippines; Simeon C. Medalla of the Hunters ROTC Association;
Antonio F. Garcia of the Magsaysay Veterans Legion; Dionisio V. Ojeda Guaof the PEFTOK
Veterans Association; Primitivo Lovina of the Philippine National Guard Veterans Legion;

Jose V. Andrada of the Philippine Naval Veterans Legion; Jaime Piopongco of the Philippine
Veterans Legion; Sofia L. Prudenciado of the Philippine Association of War Widows, Parents,
and Orphans; Eugenio B. Recto of the United Disabled Veterans Association of the Philippines;
and Gaudencio Antonino of the USAFIP NL and their associates and successors are hereby
created a body corporate, under the control and supervision of the Secretary of National Defense,
under the name, style and title of "Veterans Federation of the Philippines," hereinafter referred
to as the Federation. The principal office of the Federation shall be in the City of Manila, Philippines.
Sec. 2. The said Federation shall have perpetual succession, with power to sue and be sued;
to hold such real and personal property as shall be necessary for its purposes, and to
receive real and personal property by gift, devise or bequest; to invest its funds for the
exclusive benefit of the veterans of the Philippines; to extend, within its capabilities, all
necessary assistance, and operate such enterprises as may further the material or moral well-being
of veterans; to adopt a seal, and to alter or destroy the same at pleasure; to have offices and
conduct its business and affairs in the City of Manila and/or provinces, cities, municipalities and
barrios of the Philippines and to amend said laws, regulations and rules; to establish and
operate branches of its office anywhere in the Philippines; to publish a magazine and/or other
publications; and generally, to do all such acts and things as may be necessary to carry into
effect the provisions of this Act and to promote the purposes of said Federation.
Any action or decision of the Federation or of the Supreme Council shall be subject to the
approval of the Secretary of National Defense.
Sec. 3. No association shall be an affiliated member of the Federation unless it is integrated
by veterans who served in the naval,r or land arms or services of the Philippines at some
Philippine Revolution, or World Wars I or II, or in the United States Army Forces in the Far
East in World War II, or Forces to Korea in the Korean Campaign, or in any armed conflict
in which the Philippines may be involved in the future: Provided, however, That the said
veterans have been honorably discharged or separated from the service or continue in the
active military service or are carried on the military rosters on inactive reserve.
Sec. 4. The purposes of the Federation shall be to uphold and defend the democratic way
of life as envisioned in the Constitution of the Republic of the Philippines; to represent
and to defend the interests of all Filipino veterans; to coordinate the efforts of all different
veterans of the Philippines in behalf of the interests of respective members; to promote
mutual help among former comrades-in-arms; to perpetuate their common experiences in war;
to undertake acts of charity and relief work; to preserve peace and order; to foster love of
country and things Filipino and inculcate individual civic consciousness. In general, the
Federation shall exist solely for purposes of a benevolent character, and not for pecuniary
profit of its members.
Sec. 5. The Federation shall be non-sectarian and non-political in character, and that affiliation
thereto shall not increase or diminish liability for military service.
Sec. 6. The Federation shall have no power to issue certificates of stock or to declare or pay
dividends, all funds in excess of operating expenses being reserved for disbursement, as
the Supreme Council may authorize, for the purposes stated in Section two of this Act.
Sec. 7. The governing body of the said Federation shall be its Supreme Council. The number,
qualifications, manner of election and terms of office of the members of this Supreme Council
and of the officers of the Federation shall be prescribed by its own constitution and by-laws.

The persons named in Section one of this Act shall constitute its Supreme Council and the
persons elected for the term of office beginning March, nineteen hundred sixty, shall be the
first officers of said Federation, to serve as such until their successors are duly elected and
have qualified. The by-laws shall prescribe the number or members of the Supreme Council
necessary to constitute a quorum.
Sec. 8. An annual meeting of the affiliated members shall be held once every year after
the date of the creation of the Federation, at such time and place as shall be prescribed in
the constitution and by-laws, when the annual report of the Federation shall be presented, and
members of the Supreme Council and officers shall be designated and elected. Special meetings
of the Supreme Council may be called upon such notice as may prescribed in the constitution
and by-laws, which shall further fix the number of affiliated members which shall constitute
a quorum at any annual or special meeting. The Supreme Council shall have power to hold
their meetings and keep the seal, books, documents and papers of the Federation at the
principal office of the Federation.
Sec. 9. The Federation is empowered to adopt its own insignia and uniforms and shall
have sole and exclusive right in the Philippines to have and to use the titles, emblems,
uniforms, badges, insignia, descriptive or designating marks, words, and phrases used
by it in carrying out its program in accordance with the purposes of this Act.
Section 10. Any donation or contribution which from time to time may be made to
the Federation by the Government of the Philippines or any of its subdivisions, branches,
offices, agencies or instrumentalities shall be expended by the Supreme Council only for
the purposes mentioned in this Act.
Section 11.

The Federation is expressly exempted from payment of any and all taxes.

Section 12. On or before the last day of the month following the end of each fiscal year,
the Federation shall make and transmit to the President of the Philippines or to the
Secretary of National Defense, a report of its proceedings for the past year,
including a full, complete and itemized report of receipts and expenditures of whatever kind.
Section 13.

This Act shall take effect upon its approval.

PRESIDENTIAL DECREE No. 1264

AMENDING REPUBLIC ACT NO. 95 (As amended by Republic Acts No. 855 and
6373) AN ACT TO INCORPORATE THE PHILIPPINE NATIONAL RED CROSS
WHEREAS, during the meeting in Geneva, Switzerland, on 22 August 1894, the nations
of the world unanimously agreed to diminish within their power the evils inherent in war;
WHEREAS, more than one hundred forty nations of the world have ratified or adhered to
the Geneva Conventions of August 12, 1949 for the Amelioration of the Condition of the
Wounded and Sick of Armed Forces in the Field and at Sea, The Prisoners of War, and
The Civilian Population in Time of War referred to in this Charter as the Geneva
Conventions;

WHEREAS, the Republic of the Philippines became an independent nation on July 4,

1946, and proclaimed on February 14, 1947 its adherence to the Geneva Conventions of
1929, and by the action, indicated its desire to participate with the nations of the world in
mitigating the suffering caused by war and to establish in the Philippines a voluntary
organization for that purpose as contemplated by the Geneva Conventions;
WHEREAS, there existed in the Philippines since 1917 a chapter of the American
National Red Cross which was terminated in view of the independence of the
Philippines; and
WHEREAS, the volunteer organizations established in other countries which have
ratified or adhered to the Geneva Conventions assist in promoting the health and welfare
of their people in peace and in war, and through their mutual assistance and cooperation
directly and through their international organizations promote better understanding and
sympathy among the people of the world;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by
virtue of the powers vested in me by the Constitution as Commander-in-Chief of all the
Armed Forces of the Philippines and pursuant to Proclamation No. 1081 dated
September 21, 1972, and General Order No. 1 dated September 22, 1972, do hereby
decree and order that Republic Act No. 95, Charter of the Philippine National Red Cross
(PNRC) as amended by Republic Acts No. 855 and 6373, be further amended as
follows:
Section 1. There is hereby created in the Republic of the Philippines a body corporate
and politic to be the voluntary organization officially designated to assist the Republic of
the Philippines in discharging the obligations set forth in the Geneva Conventions and to
perform such other duties as are inherent upon a national Red Cross Society. The
national headquarters of this Corporation shall be located in Metropolitan Manila.
Section 2. The name of this corporation shall be "The Philippine National Red Cross"
and by that name shall have perpetual succession with the power to sue and be sued; to
own and hold such real and personal estate as shall be deemed advisable and to accept
bequests, donations and contributions of property of all classes for the purpose of this
Corporation hereinafter set forth; to adopt a seal and to alter and destroy the same at
pleasure; and to have the right to adopt and to use, in carrying out its purposes
hereinafter designated, as an emblem and badge, a red Greek cross on a white ground,
the same as has been described in the Geneva Conventions, and adopted by the
several nations ratifying or adhering thereto; to ordain and establish by-laws and
regulations not inconsistent with the laws of the Republic of the Philippines, and
generally to do all such acts and things as may be necessary to carry into effect the
provisions of this Act and promote the purposes of said organization; and the corporation
hereby created is designated as the organization which is authorized to act in matters of
relief under said Convention. In accordance with the Geneva Conventions, the issuance
of the distinctive Red Cross emblem to medical units and establishments, personnel and
materials neutralized in time of war shall be left to the military authorities. The red Greek
cross on a white ground, as has been described by the Geneva Conventions is not, and
shall not be construed as a religious symbol, and shall have equal efficacy and
applicability to persons of all faiths, creeds and beliefs. The operational jurisdiction of the
Philippine National Red Cross shall be over the entire territory of the Philippines.

Section 3. That the purposes of this Corporation shall be as follows:

(a) To provide volunteer aid to the sick and wounded of armed forces in time of war, in
accordance with the spirit of and under the conditions prescribed by the Geneva
Conventions to which the Republic of the Philippines proclaimed its adherence;
(b) For the purposes mentioned in the preceding sub-section, to perform all duties
devolving upon the Corporation as a result of the adherence of the Republic of the
Philippines to the said Convention;
(c) To act in matters of voluntary relief and in accordance with the authorities of the
armed forces as a medium of communication between people of the Republic of the
Philippines and their Armed Forces, in time of peace and in time of war, and to act in
such matters between similar national societies of other governments and the
Governments and people and the Armed Forces of the Republic of the Philippines;
(d) To establish and maintain a system of national and international relief in time of
peace and in time of war and apply the same in meeting and emergency needs caused
by typhoons, flood, fires, earthquakes, and other natural disasters and to devise and
carry on measures for minimizing the suffering caused by such disasters;
(e) To devise and promote such other services in time of peace and in time of war as
may be found desirable in improving the health, safety and welfare of the Filipino people;
(f) To devise such means as to make every citizen and/or resident of the Philippines a
member of the Red Cross.
Section 4. In furtherance of the purposes mentioned in the preceding sub-paragraphs,
the Philippine National Red Cross shall:
(a) Be authorized to secure loans from any financial institution which shall not exceed its
budget of the previous year.
(b) Be exempt from payment of all duties, taxes, fees, and other charges of all kinds on
all importations and purchases for its exclusive use, on donations for its disaster relief
work and other Red Cross services, and in its benefits and fund raising drives all
provisions of law to the contrary notwithstanding.
(c) Be allotted by the Philippine Charity Sweepstakes Office one lottery draw yearly for
the support of its disaster relief operations in addition to its existing lottery draws for the
Blood Program.
Section 5. Membership in the Philippine National Red Cross shall be open to entire
population in the Philippines regardless of citizenship. Any contribution to the Philippine
National Red Cross Annual Fund Campaign shall entitle the contributor to membership
for one year and said contribution shall be deductible in full for taxation purposes.
Section 6. The governing powers and authority shall be vested in a Board of Governors
composed of thirty members, six of whom shall be appointed by the President of the

Philippines, eighteen shall be elected by chapter delegates in biennial conventions and

the remaining six shall be elected by the twenty-four members of the Board already
chosen. At least one but not more than three of the Presidential appointees shall be
chosen from the Armed Forces of the Philippines.
(a) The term of office of all members of the board of Governors shall be four years. Any
member of the Board of Governor who has served two consecutive full terms of four
years each shall be ineligible for membership on the Board for at least two years; any
term served to cover unexpired terms of office of any governor will not be considered in
this prohibition in serving two consecutive full terms, and provided, however, that terms
served for more than two years shall be considered a full term.
(b) Vacancies in the Board of Governors caused by death or resignation shall be filled by
election by the Board of Governors at its next meeting, except that vacancies among the
Presidential appointees shall be filled by the President.
Section 7. The President of the Philippines shall be the Honorary President of the
Philippine National Red Cross. The officers shall consist of a Chairman, a ViceChairman, a Secretary, a Treasurer, a Counselor, an Assistant Secretary and an
Assistant Treasurer, all of whom shall be elected by the Board of Governors from among
its membership for a term of two years and may be re-elected. The election of officers
shall take place within sixty days after all the members of the Board of Governors have
been chosen and have qualified.
Section 8. The Biennial meeting of chapter delegates shall be held on such date and
such place as may be specified by the Board of Governors to elect members of the
Board of Governors and advice the Board of Governors on the activities of the Philippine
National Red Cross; Provided, however that during periods of great emergency, the
Board of Governors in its discretion may determine that the best interest of the
corporation shall be served by postponing such biennial meeting.
Section 9. The power to ordain, adopt and amend by-laws and regulations shall be
vested in the Board of Governors.
Section 10. The members of the Board of Governors, as well as the officers of the
corporation, shall serve without compensation. The compensation of the paid staff of the
corporation shall be determined by the Board of Governors upon the recommendation of
the Secretary General.
Section 11. As a national voluntary organization, the Philippine National Red Cross shall
be financed primarily by contributions obtained through solicitation campaigns
throughout the year which shall be organized by the Board of Governors and conducted
by the Chapters in their respective jurisdictions. These fund raising campaigns shall be
conducted independently of other fund drives and service needs.
Section 12. The Board of Governors shall promulgate rules and regulations for the
organization of local units of the Philippine National Red Cross to be known as Chapters.
Said rules and regulations shall fix the relationship of the Chapters to the Corporation,
define their territorial jurisdictions, and determine the number of delegates for each
chapter based on population, fund campaign potentials and service needs.

Section 13. The Corporation shall, at the end of every calendar year submit to the
President of the Philippines an annual report containing the activities of the Corporation
showing its financial condition, the receipts and disbursements.
Section 14. It shall be unlawful for any person to solicit, collect or receive money,
materials, or property of any kind by falsely representing or pretending himself to be a
member, agent or representative of the Philippine National Red Cross.
Section 15. The use of the name Red Cross is reserved exclusively to the Philippine
National Red Cross and the use of the emblem of the red Greek cross on a white ground
is reserved exclusively to the Philippine National Red Cross, medical services of the
Armed Forces of the Philippines and such other medical facilities or other institutions as
may be authorized by the Philippine National Red Cross as provided under Article 44 of
the Geneva Conventions. It shall be unlawful for any other person or entity to use the
words Red Cross or Geneva Cross or to use the emblem of the red Greek cross on a
white ground or any designation, sign, or insignia constituting an imitation thereof for any
purpose whatsoever.
Section 16. As used in this Decree, the term person shall include any legal person,
group, or legal entity whatsoever nature, and any person violating any section of this
Article shall, upon conviction therefore be liable to a find of not less than one thousand
pesos or imprisonment for a term not exceeding one year, or both, at the discretion of
the court, for each and every offense. In case the violation is committed by a corporation
or association, the penalty shall devolve upon the president, director or any other officer
responsible for such violation.
Section 17. All acts or parts of acts which are inconsistent with the provisions of this
Decree are hereby repealed.
This Decree shall take immediately.
Done in the City of Manila, this 15th day of December, in the year of Our Lord, nineteen
hundred and seventy seven.
PRESIDENTIAL DECREE No. 1406
FURTHER AMENDING REPUBLIC ACT 6243, ENTITLED "AN ACT CREATING THE
METROPOLITAN
WATERWORKS AND SEWERAGE AND FOR OTHER PURPOSES," AS AMENDED
WHEREAS, under Presidential Decree No. 1269, the territorial jurisdiction of the
Metropolitan Waterworks and Sewerage System has been extended to Lungsod
Silangan, Muntinlupa, and other areas that may come within the development path of the
expanding Metropolitan Manila;
WHEREAS, the continuous growth in terms of population, economic activity, and
geographical extent of Metropolitan Manila demands a massive program for the
expansion and improvement of its public water supply and sewerage services;

WHEREAS, there is a consequent need for the Metropolitan Waterworks and Sewerage
System to enhance its focus on the premier metropolis of the country and to expand its
financial base;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by
virtue of the powers vested in me by the Constitution, do hereby amend certain sections
of the Revised Charter of the Metropolitan Waterworks and Sewerage Authority under
Republic Act No. 6234, as amended by Presidential Decrees No. 425 and 1269, and do
hereby decree as part of the law of the land the following:
Section 1. Sec. 2, paragraphs (c) and (d) of R.A. No. 6234 as amended, are hereby
amended to read as follows:
"(c) The System shall own and/or have jurisdiction, supervision and control over all
waterworks and sewerage in the territory comprising the cities of Manila, Pasay,
Quezon, Cavite and Caloocan, the municipalities of Las Pias, Makati, Malabon,
Mandaluyong, Marikina, Navotas, Paraaque, Pasig, Pateros, San Juan , Taguig,
Valenzuela, all of Metropolitan Manila, the municipalities of Antipolo, San Mateo, Taytay,
Cainta, Montalban, all of Rizal Province, and the municipalities of Bacoor, Imus, Kawit,
Noveleta, Rosario, all of Cavite Province. The System shall also own and/or have
jurisdiction, supervision and control all waterworks and sewerage systems in Lungsod
Silangan, Muntinlupa and, subject to the approval of the President, other areas that may
come within the development path of the expanding Metropolitan Manila Area, which
areas the Board of Metropolitan Waterworks and Sewerage System may, from time to
time, determine and declare as contiguous to its service area and requiring immediate
attention by the System, under such terms and conditions as may be agreed upon by the
parties concerned. All other waterworks and sewerage systems now under the
supervision and control of the Metropolitan Waterworks and Sewerage System (MWSS),
are hereby returned, ceded, transferred and turned over to the provinces, cities and
municipalities for their supervision, control and administration, until such time that they
qualify within the program of development under the local Water Utilities Administration
(LWUA). The transfer and turn-over to the local governments concerned shall be
completed within the period of ninety (90) days from the promulgation of this decree.
(d) Any provision of law to the contrary notwithstanding, all existing waterworks systems
or any system that may hereafter be established by provinces, cities and municipalities
shall have priority in the use and supervision over all sources of water supply for
domestic purposes in their respective jurisdictions, and any water right now being
enjoyed by the Metropolitan Waterworks and Sewerage System (MWSS) in such
provinces, cities and municipalities shall likewise be turned over to the said provinces,
cities and municipalities concerned."
Sec. 2. Sec. 2-A of the same law is hereby amended to read as follows:
"Sec. 2-A. Capital Stock of the System. The System is hereby authorized a capital stock
of Three Billion Pesos (P3,000,000,000) divided into thirty million shares at a par value
of One Hundred Pesos (P100.00) each, which shares shall not be transferred,
negotiated, pledged, mortgaged or otherwise given security for the payment of any
obligation. The sum of Four Hundred Ninety-One Million, Six Hundred Twelve Thousand,
Six Hundred Sixty Seven Pesos and Ten Centavos (P491,612,667.10) which as of June
30, 1977 has already been subscribed and fully paid for by the Government of the

Republic of the Philippines in accordance with the provisions of Presidential Decree No.
425, shall be the initial paid-in capital of the authorized capital stock provided herein.
The remaining Two Billion Five Hundred Eight Million, Three Hundred Eighty-Seven
Thousand, Three Hundred Thirty-Two Pesos and Ninety Centavos (P2,508,387,332.90)
shall be subscribed by the Government of the Republic of the Philippines and paid as
follows:
(a) The sum of Fifty Million Eight Hundred Twenty-Four Thousand Pesos
(P50,824,000.00) representing the remaining unpaid amount of the System to the
National Treasury for advances for the payment of amortization and interest of the
System's loan to the World Bank, shall be additional paid-in subscription of the
Government of the Republic of the Philippines for five hundred eight thousand, two
hundred forty shares of stock of said capital stock.
(b) Whatever balance remaining of said subscription shall be paid from a continuing
appropriation which is hereby made out of any funds in the National Treasury not
otherwise appropriated be they collections from any or all taxes accruing to the General
Fund or proceeds from loans, the issuance of bonds, treasury bills or notes which are
hereby authorized to be incurred or to be issued by the Secretary of Finance for the
purpose, such annual appropriation to be programmed and released in accordance with
pertinent budget laws: Provided, That, this continuing appropriation shall remain in force
until the balance of the unpaid subscription of the government to the capital stock of the
System have been paid in full."
Sec. 3. Sec. 9 (a), paragraph 6 of the same law is hereby amended to read as follows:
"The total principal indebtedness of the System under this subsection, exclusive of
interest, shall not exceed Three Billion Pesos (P3,000,000,000.00), at any given time."
Sec. 4. Sec. 9 (a), paragraph 6 of the same law is hereby amended to read as follows:
"Sec. 9-A. Construction, Repair, Works Contracts for Services and Furnishing of
Supplies, Materials and Equipment Awarded Upon Public Bidding, Exceptions. All works
of construction or repair of the System as well as contracts for services and furnishing of
supplies, materials and equipment shall be awarded by the General Manager in
accordance with the ceilings and rules imposed by the Board, to the responsible bidder
who made the lowest and meet advantageous bid: Provided, however, that these do not
conflict with existing executive orders and/or presidential issuances on awards of
government contracts: Provided, further, That, any repaid, construction or other works of
an emergency nature may be authorized by the Board to be undertaken by
administration or by contract, and; Provided, finally, That, any single work of construction
or a repair, involving an estimated total cost of Five Hundred Thousand Pesos
(P500,000.00) may, at the option of the General Manager, be authorized by him to be
undertaken by administration or by contract after a canvass of the market to determine
the lowest and most advantageous bid."
Sec. 5. Sec. 9 (b), first paragraph of the same law is hereby amended to read as follows:
"(b) Foreign Loans. The System is hereby authorized contract loans and credit, in any
convertible foreign currency or capital goods and to incur indebtedness from time to time

from foreign government, or any international financial institutions or fund sources or to

issue bonds, the total outstanding amount of which, exclusive of interest, shall not
exceeds Six Hundred Million United States Dollars (US$ 600M) or the equivalent thereof
in other currencies at any given time on such terms as it shall deem appropriate for the
accomplishment of its purposes and to enter into and execute agreements and
documents specifying such terms and conditions."
Sec. 6. Section 16 of the same law is hereby repealed and replaced by a new provision
which shall read as follows:
"Section 16. Gratuity. Any personnel of the waterworks systems transferred or turned
over to the provinces, cities and municipalities are hereby transferred to and absorbed
by the said provinces, cities and municipalities concerned but any personnel of district
offices who are presently in-charge of these systems who cannot be absorbed by the
local governments concerned and those who refuse appointment therein shall be paid
the money value of the accumulated vacation sick leaves, and such retirement gratuities
as may be due them under existing retirement laws. Any of the said personnel who does
not qualify under existing retirement law shall be paid one (1) month salary for every
years of service payable in lump sum. for this purpose, there is hereby appropriated out
of any fund in the National Treasury not otherwise appropriated the sum of Three Million
Pesos (P3,000,000.00) to provide for their separation gratuities, accumulated vacation
and sick leaves and/or retirement, when and if, payable and due them. Other personnel
under the central organization of the System whose salaries are presently being charged
against national government appropriations are to be transferred to and absorbed by the
System."
Sec. 7. Section 17 is hereby repealed and replaced by a new provision which shall read
as follows:
"Section 17. Transfer of Local Systems. The return, cession, transfer and turnover to the
local governments concerned of the Local Waterworks and Sewerage Systems under
Section 1 of this Decree shall include all personnel of the systems, including those of the
district offices who may be absorbed by the local governments concerned, records,
properties, equipment, assets, choses in action, obligations and liabilities, including all
obligations to their employees, excepting, however, obligations accruing to and due the
national government and other government agencies, instrumentalities and corporations,
are hereby ceded, transferred and conveyed to their respective provinces, cities, and
municipalities; Provided, That for the payment of obligations accruing to the national
government and other government agencies, instrumentalities and corporations, there is
hereby appropriated out of any funds in the National Treasury not otherwise
appropriated the sum of Thirty-Three Million, Five Hundred Thousand Pesos
(P33,500,000.00); Provided, further, that in case of disagreement between the MWSS
and the local governments concerned on the liabilities and obligations being transferred
by the System to the local governments, the same shall be passed upon and decided by
an arbitration committee to be composed of a representative of the local government
and a representative of the System, and a third member from the Commission on Audit
who shall act as Chairman. The decision of such committee shall be final.
"All waterworks systems shall be ceded, transferred and conveyed to the provinces,
cities and municipalities which they serve; Provided, however, That, where the system
serves two or more municipalities, the same shall be ceded, transferred and conveyed to

the provincial government; Provided, further, That, where the system serves a city or a
city or municipalities, the system shall be transferred, ceded and conveyed to the city."
Sec. 8. All provisions of existing laws, decrees, executive and administrative orders or
parts thereof in conflict with this Decree are hereby modified and/or repealed
accordingly.
Sec. 9. This Decree shall take effect immediately.
DONE in the City of Manila, this 7th day of June, in the year of Our Lord, nineteen
hundred and seventy-eight.
REPUBLIC ACT NO. 4850 July 18, 1966
AN ACT CREATING THE LAGUNA LAKE DEVELOPMENT AUTHORITY,
PRESCRIBING ITS POWERS, FUNCTIONS AND DUTIES, PROVIDING FUNDS
THEREFOR, AND FOR OTHER PURPOSES.
CHAPTER I
DECLARATION OF POLICY AND CREATION OF AUTHORITY
Section 1. Declaration of Policy. It is hereby declared to be the national policy to
promote, and accelerate the development and balanced growth of the Laguna Lake area
and the surrounding provinces, cities and towns hereinafter referred to as the region,
within the context of the national and regional plans and policies for social and economic
development and to carry out the development of the Laguna Lake region with due
regard and adequate provisions for environmental management and control,
preservation of the quality of human life and ecological systems, and the prevention of
undue ecological disturbances, deterioration and pollution.
Sec. 2. Laguna Lake Development Authority created. For the purpose of carrying out
and effecting the declared policy, as provided for in Sec. one hereof, there is hereby
created a body corporate to be known as the Laguna Lake Development Authority,
hereinafter referred to as the Authority, which shall be organized within one hundred
twenty (120) days after the approval of this Act. The Authority shall execute the powers
and functions herein vested and conferred upon it in such a manner as will, in its
judgment, aid to the fullest possible extent in carrying out the aims and purposes set
forth below. This Act may be known as the Laguna Lake Development Authority Act of
1966.
Sec. 3. Location of principal office. The Authority shall maintain its principal office at a
convenient place within the region, but it may have branch offices in such other places
as are necessary for the proper conduct of its business.
Sec. 4. Special Powers and Functions. The Authority shall exercise perform the following
powers and functions:
(a) To make a comprehensive survey of the physical and natural resources and
potentialities of the Laguna Lake region particularly its social and economic conditions,
hydrologic characteristics, power potentials, scenic and tourist spots, regional problems,

and on the basis thereof, to draft a comprehensive and detailed plan designed to
conserve and utilize optimally the resources within the region particularly Laguna de Bay
to promote the region's rapid social and economic development and upon approval by
the National Economic and Development Authority (NEDA) Board of such plan, to
implement the same including projects in line with said plan: Provided, That
implementation of all fisheries plans and programs of the authority shall require prior
consensus of the Bureau of Fisheries and Aquatic Resources to ensure that such plans
and programs are consistent with the national fisheries plans and programs. For the
purpose of said survey, public agencies shall submit and private entities shall provide
necessary data except such data which under existing laws are deemed inviolable.
(b) To provide the machinery for extending the necessary planning, management and
technical assistance to prospective and existing investors in the region;cralaw
(c) To make recommendation to the proper agencies on the peso or dollar financing,
technical support, physical assistance and, generally, the level of priority to be accorded
agricultural, industrial and commercial projects, soliciting or requiring direct help from or
through the government or any of its instrumentalities;cralaw
(d) To pass upon and approve or disapprove all plans, programs, and projects proposed
by local government offices/agencies within the region, public corporations, and private
persons or enterprises where such plans, programs and/or projects are related to those
of the Authority for the development of the region as envisioned in this Act. The Authority
shall issue the necessary clearance for approved proposed plans, programs, and
projects within thirty days from submission thereof unless the proposals are not in
consonance with those of the Authority or that those will contribute to the unmanageable
pollution of the Laguna Lake waters or will bring about the ecological imbalance of the
region: Provided, further, That the Authority is hereby empowered to institute necessary
legal proceeding against any person who shall commence to implement or continue
implementation of any project, plan or program within the Laguna de Bay region without
previous clearance from the Authority: Provided, furthermore, That any local government
office, agency, public corporation, private person, or enterprise whose plans, programs
and/or projects have been disapproved by the Authority may appeal the decision of the
Authority to the NEDA within fifteen (15) days from receipt of such disapproval whose
decision on the matter shall be final. Reasonable processing fees as may be fixed by the
Authority's Board of Directors shall be collected by the Authority for the processing of
such plans, programs and/or projects: Provided, finally, The expansion plans shall be
considered as new plans subject to review of the Authority and to payment of the
processing fees.
The Authority and national and local government offices, agencies and public
corporations shall coordinate their plans, programs, projects and licensing procedures
with respect to the Laguna Lake region for the purpose of drawing up a Laguna Lake
development plan which shall be binding upon all parties concerned upon approval of
the NEDA board.
(e) To engage in agriculture, industry, commerce, or other activities within the region
which may be necessary or directly contributory to the socio-economic development of
the region, and, for this purposes, whether by itself or in cooperation with private
persons or entities, to organize, finance, invest in, and operate subsidiary corporations:
Provided, That the Authority shall engage only, unless public interest requires otherwise,

in those activities as are in the nature of new ventures or are clearly beyond the scope,
capacity, or interest or private enterprises due to consideration of geography, technical
or capital requirements, returns on investment, and risk;cralaw
(f) To plan, program finance/or undertake infrastructure projects such as river, flood and
tidal control works, waste water and sewerage works, water supply, roads, portworks,
irrigation, housing and related works, when so required within the context of its
development plans and programs including the readjustment, relocation or settlement of
population within the region as may be necessary and beneficial by the Authority:
Provided, That should any project be financed wholly or in part by the Authority, it is
hereby authorized to collect reasonable fees and tolls as may be fixed by its Board of
Directors subject to the approval of the NEDA Board from users and/or beneficiaries
thereof to recover costs of construction, operation and maintenance of the projects:
Provided, further, That if the Authority should find it necessary to undertake such
infrastructure projects which are classified, as social overhead capital projects as
determined by the NEDA, the Authority shall be authorized to receive financial
assistance from the government in such amount as may be necessary to carry out the
said projects subject to such terms and condition that may be imposed by the
government, upon recommendation of the NEDA Board: Provided, finally, That such
amount as may be necessary for the purpose is hereby authorized to be appropriated
out of the funds of the National Treasury not otherwise appropriated.
(g) To make an annual report to the stockholders regarding the operation of the Authority
more particularly a statement of its financial conditions, activities undertaken, progress of
projects and programs and plans of actions for the incoming years: Provided, however,
That a majority of the stockholders may require the Authority to submit report or reports
other than the annual report herein required, which report must be submitted within a
period of thirty (30) days from notice thereof;cralaw
(h) To lend or facilitate the extension of financial assistance and/or act as surety or
guarantor to worthwhile agricultural, industrial and commercial enterprises;cralaw
(i) To reclaim or cause to the reclaimed portions of the Lake or undertake reclamation
projects and/or acquire such bodies of land from the lake which may be necessary to
accomplish the aims and purposes of the Authority subject to the approval of the NEDA
Board: Provided, That the land so reclaimed shall be the property of the Authority and
title thereto shall be vested in the Authority: Provided, further, That the resulting lake
shore shall continue to be owned by the national government.
(j) The provisions of existing laws to the contrary notwithstanding, to engage in fish
production and other aqua-culture projects in Laguna de Bay and other bodies of water
within its jurisdiction and in pursuance thereof to conduct studies and make experiments,
whenever necessary, with the collaboration and assistance of the Bureau of Fisheries
and Aquatic Resources, with the end in view of improving present techniques and
practice. Provided, That until modified, altered or amended by the procedure provided in
the following sub-paragraph, the present laws, rules and permits or authorizations
remain in force;cralaw
(k) For the purpose of effectively regulating and monitoring activities in Laguna de Bay,
the Authority shall have exclusive jurisdiction to issue new permit for the use of the lake
waters for any projects or activities in or affecting the said lake including navigation,

construction, and operation of fishpens, fish enclosures, fish corrals and the like, and to
impose necessary safeguards for lake quality control and management and to collect
necessary fees for said activities and projects: Provided, That the fees collected for
fisheries may be shared between the Authority and other government agencies and
political sub-divisions in such proportion as may be determined by the President of the
Philippine upon recommendation of the Authority's Board: Provided, further, That the
Authority's Board may determine new areas of fisheries development or activities which
it may place under the supervision of the Bureau of Fisheries and Aquatic taking into
account the overall development plans and programs for Laguna de Bay and related
bodies of water: Provided, finally, That the Authority shall subject to the approval of the
President of the Philippines promulgate such rules and regulations which shall govern
fisheries development activities in Laguna de Bay which shall take into consideration
among others the following: socioeconomic amelioration of bonafide resident fisherman
whether individually or collectively in the form of cooperatives, lakeshore town
development, a master plan for fishpen construction and operation, communal fishing
ground for lakeshore town residents, and preference to lakeshore town residents in
hiring laborers for fishery projects.
(l) To require the cities and municipalities embraced within the region to pass
appropriate zoning ordinances and other regulatory measures necessary to carry out the
objectives of the Authority and enforce the same with the assistance of the Authority.
(m) The provisions of existing laws to the contrary notwithstanding, to exercise water
rights over public waters within the Laguna de Bay region whenever necessary to carry
out the Authority's projects;cralaw
(n) To act in coordination with existing governmental agencies in establishing water
quality standards for industrial, agricultural and municipal waste discharges into the lake
and to cooperate with said existing agencies of the government of the Philippines in
enforcing such standards, or to separately pursue enforcement and penalty actions as
provided for in Sec. 4(d) and Sec. 39-A of this Act: Provided, That in case of conflict on
the appropriate water quality standard to be enforced such conflict shall be resolved thru
the NEDA Board;cralaw
(o) To develop water supply from ground and/or lake water resources for municipal,
agricultural and industrial usages, in coordination with the National Water Resources
Council created by Presidential Decree No. 424 dated March 28, 1974 or its successors
in interests, and to enter into agreements with municipalities, governmental agencies
and corporations and the private sector to supply, distribute and market such
water;cralaw
(p) Undertake studies on the improvement and maintenance of the desirable lake water
quality of Laguna de Bay, and in pursuance thereof, prepare a water quality
management program on a continuing basis, subject to the approval of the NEDA, which
the Authority shall carry out with the assistance and support of all national and local
government units involved in water quality management.
Sec. 4-A. Compensation for damages to the water and aquatic resources of Laguna de
Bay and its tributaries resulting from failure to meet established water and effluent
quality standards or from such other wrongful act or omission of a person, private or
public, juridical or otherwise, punishable under the law shall be awarded to the Authority

to be earmarked for water quality control and management.

Sec. 4-B. The Authority is hereby empowered to collect annual fees as provided for in
Sec. 4-J herein, for the use of the lake waters and its tributaries for all beneficial
purposes including recreation, municipal, industrial, agricultural, fisheries, navigation and
waste disposal purposes. All the fees so collected shall be used for the management
and development of the lake and its watershed areas: Provided, That the rates of the
fees to be collected shall be subject to the approval of the President of the Philippines.
CHAPTER III
CORPORATE POWERS
Sec. 5. The powers of the Authority. The Authority shall have the following powers and
functions:
a) To succeed on its corporate name;cralaw
b) To sue and be sued in such corporate name;cralaw
c) To adopt, alter and use a corporate seal;cralaw
d) To adopt, amend, and repeals its by-laws;cralaw
e) To enter into contracts of any kind and description, to enable it to carry out its
purposes and functions under this Act;cralaw
f) To acquire, buy, purchase, hold or lease, such personal and real property as it deems
necessary or convenient in the transaction of its business and/or in relation with carrying
out its purposes under this Act; and to lease, mortgage, sell, alienate, or otherwise
encumber, utilize, exploit or dispose any such personal and real property held by it,
subject to prior or existing individual or communal right of private parties or of the
government or any agency or enterprise thereof.
g) To exercise the right of eminent domain whenever the Authority deems it necessary
for the attainment of the objectives of the Authority under this Act;cralaw
h) To borrow funds from any local or foreign financial institutions independent of the
bonds it may issue or may continue to issue, to carry out the purposes of this Authority
under this Act;cralaw
i) To purchase, hold, alienate, mortgage, pledge or otherwise dispose of the shares of
the capital stock of, or any bond, securities, or other evidence of indebtedness created
by any other corporation, co-partnership, or government agencies or instrumentalities;
and while the owner of said stock to exercise all the rights or ownership, including the
right to vote thereon; Provided, That the Authority shall not invest its funds in any highly
risky debt instruments issued without recourse to commercial banks or investment
houses as well as in any highly speculative stocks.
j) For carrying on its business, or for the purpose of attaining or furthering any of its

objectives, to perform any and all acts which a corporation, co-partnership, or natural
person is authorized to perform under the laws now existing or which may be enacted
hereafter.
k) To issue such rules and regulations as may be necessary to effectively carry out the
powers and purposes herein provided including the plans, programs and projects of the
Authority, subject to the approval of the NEDA, the same to take effect thirty (30) days
after publication thereof, in a newspaper of general circulation.
Sec. 6. Capitalization and Financing. The Authority shall have an authorized capital of
One Hundred Million Pesos (P100,000,000) of which the amount of Fifty-One Million
Pesos (P51,000,000) shall be subscribed by the national government and Forty-Nine
Million Pesos (P49,000,000) shall be subscribed by cities, provinces, municipalities,
government corporations and private investors; Provided, That at least twenty-five
percent of the national government's subscription shall be fully paid: Provided, further,
That the authorized capital stock may be increased upon the recommendation of NEDA.
The authorized capital stock of One Hundred Million pesos (P100M) shall be divided into
One Million (1,000,000) Shares of stock with a par value of One hundred Pesos (P100)
per share.
The shares of stock of the Authority shall be divided into (1) 700,000 common shares
(voting) and (2) 300,000 preferred shares (non-voting) with such fixed rates of return as
shall be determined by the Board. Of the common shares of 700,000 a minimum of
400,000 shares shall be subscribed by the national government and at least sixty per
cent of the balance shall be subscribed by the Provinces of Laguna and Rizal in such
proportion as may be agreed upon by both provincial governments in accordance with
their respective capacities. The remaining balance of the common shares shall be open
for subscription to cities, provinces, municipalities and private investors.
Of the preferred shares of stock of 300,000 a minimum of 110,000 shares shall be
subscribed by the national government. The balance of the preferred shares shall be
available for subscription to cities, provinces, municipalities, government corporations,
and private investors; Provided, however, That preferred shares shall enjoy preference
with respect to distribution of dividends and assets in case of dissolution.
Sec. 7. Powers of Municipal Corporations to Subscribe. For purposes of attaining the
purposes of this Authority, municipalities, cities and provinces are hereby authorized to
subscribe, own, buy and hold shares of stock of this Authority.
Sec. 8. Operating Expenses. For the operating expenses of the Authority, the sum of
One Million Pesos (P1,000,000) is hereby appropriated annually for five (5) years from
the general fund of the National Government not otherwise appropriated from the date of
approval of this Decree.
The Board of Directors may appropriate out of the funds of the Authority such as may be
needed or necessary for its operating expenses.
Sec. 9. Power to Incur Debts and to Issue Bonds. Whenever the Board of Directors may
deem it necessary for the Authority to incur an indebtedness or to issue bonds to carry

out the provisions of this Act, it shall by resolution so declare and state the purpose for
which the proposed debt is to be incurred. The resolution shall be confirmed by the
affirmative vote of the stockholders representing a majority of the subscribed capital
stock outstanding and entitled to vote.
The Authority shall submit to the NEDA Board and the Monetary Board of the Central
Bank for approval its proposal to incur indebtedness or to issue bonds, This shall be
considered authorized upon approval of the President of the Philippines.
Sec. 10. Bond Limit. The bonds shall be issued in such amounts as will be needed at
any one time, taking into account the rate at which said bonds may be absorbed by the
buying public and the fund requirements of projects ready for execution, and considering
further a proper balanced productive and non-productive projects so that inflation shall
be held to the minimum.
Sec. 11. Form, rates of interest, etc. of bonds. The Board of Directors, shall prescribe
the form, the rates of interest, the denominations, maturities, negotiability, convertibility,
call and redemption features, and all other terms and conditions of issuance, placement,
sale, servicing, redemption, and payment of all bonds issued by the Authority under this
Act.
The bonds issued by virtue of this Act may be made payable both as to principal and
interest in Philippine currency or any readily convertible foreign currency; Said bonds
shall be receivable as security in any transaction with the government in which such
security is required.
Sec. 12. Exemption from tax. The Authority shall be exempt from all taxes, licenses,
fees, and duties, incidental to its operations. This exemption shall extend to its
subsidiary corporation: Provided, That its subsidiary corporations shall be subject to all
said taxes, licenses, fees, and duties five (5) years after their establishment under a
graduated scale as follows: twenty (20) per centum of all said taxes during the sixth
year, forty (40) per centum of all said taxes during the seventh year, sixty (60) per
centum of all said taxes during the eighth year, eighty (80) per centum of all said taxes
during the ninth year, and one hundred (100) per centum of all taxes during the tenth
year, after said establishment. Such examination shall include any tax or fee imposed by
the government on the sale, purchase or transfer of foreign exchange. All notes, bonds,
debentures and other obligations issued by the Authority shall be exempt from all taxes
both as to principal and interest, except inheritance and gift taxes.
Sec. 13. Sinking Fund. A sinking fund shall be established in such manner that the total
annual contribution thereto accrued at such rate of interest as may be determined by the
Board of Directors as confirmed by the stockholders representing a majority of the
subscribed capital stock outstanding and entitled to vote, shall be sufficient to redeem at
maturity the bonds issued under this Act.
Such funds shall be under the custody of the treasurer of the Authority who shall invest
the same in such manner as the Board of Directors may direct; charge all expenses of
investment to said sinking fund, and credit the same with the interest on investment and
other income belonging to it.
Sec. 14. Guarantee by the government. The Republic of the Philippines hereby

guarantees the payment by the Authority of both the principal and the interest of the
bonds, debentures, collaterals, notes or such other obligations issued by the Authority by
virtue of this Act, and shall pay such principal and interest in the event that the Authority
fails to do so. In case the Authority shall be unable to pay the said principal and interest,
the Secretary of Finance shall pay the amount thereof which is hereby appropriated out
of any funds in the National Treasury not otherwise appropriated, and thereupon, to the
extent of the amounts so paid, the Government of the Republic of the Philippine shall
succeed to all rights of the holders of such bonds, debentures, collaterals, notes or other
obligations, unless the sum so paid by the Republic of the Philippines shall be refunded
by the Authority within a reasonable time.
CHAPTER V
MANAGEMENT AND PERSONNEL
Sec. 15. Incorporation. The members of the first Board of Directors shall be elected by
the stockholders and the incorporation shall be held to have been effected from the date
of the first meeting of such Board.
Sec. 16. Board of Directors: Composition. The corporate powers shall be vested in and
exercised by a Board of Directors, hereinafter referred to as the Board, which shall be
composed of eight (8) members, to wit: the Executive Secretary, the Secretary of
Economic Planning, the Secretary of Natural Resources, the Secretary of Industry, a
representative of Laguna Province, who shall be designated by the Provincial Board of
Laguna; a representative of Rizal Province to be designated by its Provincial Board; the
General Manager of the Authority to be appointed by the President of the Philippines,
and a representative of the private investors, likewise to be appointed by the President
of the Philippines from among a list of recommendees to be submitted by the private
investors: Provided, That the incumbent representative of the private investors: shall
continue as member until the President appoints his successor. The Board of Directors
shall elect annually from among their members a Chairman and a Vice Chairman. There
shall be a Corporate Secretary who shall be appointed the Board.
The officials next in rank to the above-mentioned member shall serve as permanent
alternate members and shall attend meetings of the Board in the absence of their
principals and receive the corresponding per diems.
Sec. 17. Acting Chairman. In case of vacancy in the position of Chairman, or in the
absence of or temporary incapacity of the Chairman, the Vice-Chairman shall act as
such until a new Chairman is duly elected by the Board.
Sec. 18. (This provision were repealed by PD 813, Sec. 19, promulgated on October 17,
1975.)
Sec. 19. (This provision were repealed by PD 813, Sec. 19, promulgated on October 17,
1975.)
Sec. 20. Effect of vacancies; quorum. Vacancies in the Board as long as there shall be
four members in office, shall not impair the powers of the Board to execute the functions
of the Authority. The affirmative vote of four (4) members of the Board shall be

necessary at all times to pass or approve any act or resolution.

Sec. 21. Qualifications of Directors. All members of the Board shall be citizens and
residents of the Philippines. They shall have demonstrated executive competence and
experience in the field of public administration, economic planning, resource
management, or in the establishment and management of large agricultural, industrial or
commercial enterprises. No person shall be nominated as member of the Board unless
he be of unquestioned integrity and competence.
Sec. 22. Prohibition against "Conflict of Interest." No person member of the Board shall
be financially interested, directly or indirectly, in any contract entered into by the
Authority or in any special privileges granted by the Authority during his term of office. All
contracts entered into in violation of this provision shall automatically be null and void.
Any member of the Board found violating the provisions of this section by two-thirds (2/3)
vote of the Board shall automatically be disqualified from serving his unexpired term, and
he shall furthermore be perpetually disqualified for membership in the said Board.
Sec. 23. Removal, courtesy resignation. A member of the Board may be removed from
office by a vote of the stockholders holding or representing three-fourths (3/4) of the
subscribed capital stock outstanding and entitled to vote. No member of the Board shall
be required to submit a courtesy resignation at any time during his term of office.
Sec. 24. Board Meetings. The Board shall meet at least once a month. The Board shall
be convoked by the Chairman or upon written request signed by a majority of the
members.
Sec. 25. Per Diems and Allowances. The members of the Board shall receive for every
meeting attended a per diem to be determined by the Board: Provided, That in no case
will the total amount received by each exceed the sum of One Thousand Pesos
(P1,000.00) for any one month. Members of the Board shall be entitled to commutable
transportation and representation allowances in the performance of official functions for
the Authority as authorized by the Board the aggregate amount of which shall not
exceed One Thousand Pesos (P1,000.00) for any one month.
Sec. 25-A. Powers and Functions of the Board of Directors.
a. To formulate, prescribe, amend and repeal rules and regulations to govern the
conduct of business of the Authority;cralaw
b. To appoint and fix the compensation of all officials from division heads and above,
and others of comparable rank including the Assistant General Manager upon the
recommendation of the General Manager;cralaw
c. By a majority vote of all members of the Board, to suspend, remove or otherwise
discipline for just cause all officials appointed by the Board;cralaw
d. To approve the annual and/or supplemental budgets of the Authority; and
e. To do such other acts and perform such other functions as may be necessary to carry
out the provisions of this Charter.

Sec. 26. Powers and Functions of the General Manager. The General Manager shall be
the chief executive of the Authority. As such, he shall have the following powers and
duties:
a. Submit for consideration of the Board the policies and measures which he believes to
be necessary to carry out the purposes and provisions of this Act;cralaw
b. Execute and administer the policies, plans, programs and projects approved by the
Board;cralaw
c. Direct and supervise the operation and internal administration of the Authority. The
General Manager may delegate certain of his administrative responsibilities to other
officers of the Authority subject to the rules and regulations of the Board.
d. Appoint officials and employees below the rank of division heads to positions in the
approved budget upon written recommendation of the division head concerned using as
guide the standard set forth in the Authority's merit system;cralaw
e. Submit quarterly reports to the Board on personnel selection, placement and
training;cralaw
f. Submit to the NEDA an annual report and such other reports as may be required,
including the details of the annual and supplemental budgets of the Authority, and
g. Perform such other functions as may be provided by law.
Sec. 27. (This provision were repealed by PD 813, Sec. 18, promulgated on October 17,
1975.)
Sec. 28. (This provision were repealed by PD 813, Sec. 19, promulgated on October 17,
1975.)
Sec. 29. Compensation. The General Manager shall receive a compensation of at least
Thirty-Six Thousand Pesos (P36,000.00) per annum which shall be charged against the
annual appropriation of the Authority for operating expenses. The Board of Directors
may provide per diems and allowances for the General Manager.
Sec. 30. Residence. The General Manager shall establish his residence within the
region. The General Manager shall not, during his term of office, engage in any business
or profession or calling other than those connected in the performance of his official
duties as General Manager of the Authority.
Sec. 31. Activities of the Authority: Key Officials. In carrying out the activities of the
Authority, the General Manager shall be assisted by an Assistant General Manager who
shall have such powers, duties, and functions that may be delegated to him by the
General Manager, and shall act as General Manager in the absence of or during the
temporary incapacity of and/or until such time as a new General Manager is duly
appointed.
The Authority shall have the following divisions under the direct supervision and control

of the General Manager;cralaw

a. An Administrative Division which shall be responsible for providing services relating to
personnel, training, information, records, supplies general services, equipment and
security;cralaw
b. A legal Division, to be headed by a Legal Counsel who shall represent the Authority in
legal actions and proceedings. This division shall be responsible for providing staff
advice and assistance on legal matters;cralaw
c. A Finance Division which shall be responsible for providing staff advice and
assistance on budgetary and financial matters, and safekeeping of corporate
assets;cralaw
d. A Project Management Division which shall be responsible for the operation of
approved projects, project evaluation and management improvement matters;cralaw
e. A Planning and Project development Division which shall be responsible for providing
services relating to planning, programming, statistics and project development; and
f. An Engineering and Construction Division which shall be responsible for providing
services relating to detailed engineering plans and the construction and maintenance of
project facilities.
The business and activities of each of these divisions shall be directed by an officer to
be known as its division head.
The Board may create such other divisions and positions as may be deemed necessary
for the efficient, economical and effective conduct of the activities of the Authority.
Sec. 32. Merit and Compensation System. All officials, agents and employees of the
Authority shall be selected and appointed on the basis of merit and fitness in accordance
with a comprehensive and progressive merit system to be established by the Authority.
The recruitment, transfer, promotion and dismissal of all personnel of the authority,
including temporary workers, shall be governed by such merit system: Provided, That
the regular professional and technical personnel of the Authority shall be exempt from
the coverage of the classification and compensation plans of the WAPCO and Civil
Service rules and regulations: Provided, however, That such personnel shall be
permanent instates and shall be entitled to the benefits and privileges normally accorded
to government employees, such as retirement, GSIS insurance, leave and similar
matters: Provided, further, That the Director General of the NEDA shall review and
recommend the approval of the staffing pattern for professional and technical personnel
of the Authority including modifications thereof as may be necessary for five years from
the date of approval of this Decree.
Sec. 33. (This provision were repealed by PD 813, Sec. 23, promulgated on October 17,
1975.)
Sec. 34. (This provision were repealed by PD 813, Sec. 24, promulgated on October 17,
1975.)

Sec. 34-A. Supervision by the NEDA. The Authority shall be directly under the NEDA for
policy and program integration.
Sec. 34-B. Submission of Financial Statement to NEDA. The Authority shall submit
audited financial statements to NEDA within 60 days after the close of the fiscal year,
and it shall continue to operate on the basis of not more than the preceding year's
budget until the said financial statements shall have been submitted.
Sec. 34-C. Management Audit by the NEDA. The NEDA, may, at its own instance,
initiate a management audit of the Authority when there is a reasonable ground to
believe that the affairs of the Authority have been mismanaged. Should such audit
indicate mismanagement, the NEDA shall take such appropriate measures as may be
required by circumstances.
Sec. 35. Minimum Wage. All contracts entered into by the Authority which require the
employment of persons shall contain provision that not less than the minimum wage
fixed by law shall be paid to such persons so employed.
Sec. 36. Plans to be formulated within one year. Upon its organization, the Board of
Directors shall formulate and report to the stockholders with the utmost expeditious
manner, but in no case longer than one year, its plans and recommendations for the
accelerated and balanced development of the region in accordance with the aims and
purposes of this Act.
Sec. 37. Supplies and services other than personnel. All purchases of supplies or
contracts for services, except for personnel services, entered into by the Authority shall
be done only after the proper bidding is held. Bidding shall not be required when: (1) the
amount involved is five thousand pesos (P5,000.00) or less; (2) an emergency, as
certified to by the General Manager, requires immediate delivery of the supplies or
performance of the services: Provided, That in comparing bids and making awards, the
Authority shall consider such factors as the cost and relative quality and adaptability of
supplies or services; the bidders' financial responsibility, skill, experience, integrity, and
ability to furnish repairs and maintenance services; the time of delivery or performance
offered; and the compliance with the specifications desired.
Sec. 38. Auditing. The Board of Directors shall provide and appoint an auditor who shall
formulate an auditing system for the Authority. The auditor shall make a semestral
and/or annual report covering the financial conditions and operation of the Authority to
the Board. These auditing reports shall contain a statement of the resources and
liabilities, including earnings and expenses, the amount of paid-up capital stock, surplus,
reserves, and profits, as well as losses, bad debts and such other facts which, under
auditing rules and regulations, are considered necessary to accurately described the
financial conditions and operation of the Authority. The auditor shall report and directly
responsible to the Board.
Sec. 39.
Sec. 39-A. Penal and Civil Liability Clause. Any person, natural or juridical, who shall
violate any of the provisions of this Act or any rules or regulation promulgated by the
Authority pursuant thereto shall be liable to imprisonment of not exceeding three years
or to a fine not exceeding Five Thousand Pesos or both at the discretion of the Court.

If the violator be a corporation, partnership or association, the officer or officers of the

organization concerned shall be liable therefor.
The authority is hereby authorized to pursue separate civil actions for damages resulting
from infractions of the provisions of this Act, rules or regulations issued pursuant thereto
and/or conditions embodied in the clearances or permits issued by the Authority.
Sec. 40. Separability Clause. The provisions of this Act are hereby declared to be
separable, and in the event any one or more such provisions are held unconstitutional,
they shall not affect the validity of other provisions.
Sec. 40-A. Transitory Provision. When the Regional Development Council for the region
becomes operational, the socio-economic planning functions as envisioned under this
Charter shall be assumed by the aforementioned Regional Development Council in
accordance with the provisions of the Integrated Reorganization Plan, as amended. All
incumbent officials and employees shall continue in office and those qualified shall have
preference in filling up new positions that may be created as consequence of this
Decree.
Sec. 41. Definition of Terms.
1) Act Whenever used in this Act, shall refer to the enabling Act creating the Laguna
Lake Development Authority;cralaw
2) Authority Whenever cited in this Act shall mean the Laguna Lake Development
Authority;cralaw
3) Board The word Board shall always refer to the Board of Directors of the Laguna Lake
Development Authority;cralaw
4) Region The word Region in this connection mean the Laguna Lake area proper
comprising the provinces of Rizal and Laguna and the cities of San Pablo, Manila,
Pasay, Quezon and Caloocan;cralaw
5) Government instrumentalities or agencies or entities. Whenever used in this Act shall
means instruments of the national or local governments vested with powers to
accomplish a definite government aim or purpose;cralaw
6) Municipal Corporation. Whenever used in this Act shall mean one that is organized for
political purposes with political powers exercised for the good of the public, subject to
legislative control and with officers of the government as its members to administer or
discharge public duties;cralaw
7) Government Corporation. Whenever used shall refer to corporations engaged in
performing functions impressed with public interest;cralaw
8) Investor With regards to this Act, investors shall include public and private investors
whether foreign or local;cralaw
9) External Auditor. Shall mean a firm or a person hired outside the Authority or agency

to audit the books of accounts of another corporation or agency; examine financial

records, prepare audit reports on findings in the operation of the agency; review the
statement on the performance report of the Authority.
10) Subsidiary Corporation. A corporation that is organized or a corporation already in
existence wherein at least fifty-one per cent of its shares of stock are owned or
controlled by the organizing or subscribing Authority, in this case, the Laguna Lake
Development Authority, to carry out or accomplish its purposes.
11) Laguna Lake or Lake. Whenever Laguna Lake or lake is used in this Act, the same
shall refer to Laguna de Bay which is that area covered by the lake water when it is at
the average annual maximum lake level of elevation 12.50 meters, as referred to a
datum 10.00 meters below mean lower low water (M.L.L.W.). Lands located at and
below such elevation are public lands which form part of the bed of said lake.
Sec. 42. Laws repealed. All Acts, charters, executive orders, administrative orders,
proclamations, rules and regulations, or parts thereof in conflict with this Act are hereby
repealed or modified accordingly.
Sec. 43. Effectivity. This Act shall take effect upon its approval.
Approved: July 18, 1966.