QuestionsQuestions (PRESIDENTIAL DECREE NO. 1061)
PD No. 1061 amends the Charter of the Development Academy of the Philippines to respond to expansion needs and fill a vacancy created by the abolition of the Office of the Executive Secretary, and to secure additional funds and resources. It amends Sections 4 and 9 of Presidential Decree No. 205.
The Board of Trustees shall be composed of twelve (12) members: (1) Secretary of Finance; (2) Presidential Assistant; (3) Secretary of National Defense; (4) Director-General of NEDA; (5) Governor of the Central Bank of the Philippines; (6) Chairman of the Board of Governors of the Development Bank of the Philippines; (7) General Manager of the Government Service Insurance System; (8) Administrator of the Social Security System; (9) President of the Philippine National Bank; (10) one appointed member (Muslim Filipino of national prominence) by the foregoing Trustees for a term of two years; (11) President of the Land Bank of the Philippines; and (12) President of the Academy.
Governance and policy direction are vested in the Board of Trustees, which exercises the powers of the Academy.
No. Trustees shall not receive any compensation or remuneration for their services as such, but they may be reimbursed for actual expenses incurred in discharging business of the Academy.
To explain the need to fill the vacancy created in the Board of Trustees of the Development Academy after the abolition of the Office of the Executive Secretary.
Because the Academy’s programs and activities had expanded greatly since its establishment, it needed additional funds and resources so it could continue effectively its development programs for the country.
The Land Bank of the Philippines is included as one of the developmental instrumentalities entitled to participate in the governance and policy direction of the Development Academy, specifically by having the President of the Land Bank as a member of the Board of Trustees.
A Development Academy of the Philippines Endowment Fund is created to help the Academy attain self-support capability. It is based on contributions, investments, and other income accruing to the Academy, aiming to terminate the need for annual contributions from the founding institutions.
It is administered as a trust with the Board of Trustees of the Academy as trustee thereof.
The principal of the endowment fund shall not be subject to impairment.
Only the earnings thereof are generally available for expenditures. Additionally, the Academy is authorized to withdraw from the endowment fund amounts not exceeding P3,000,000.00, and in total not exceeding P6,000,000.00 at any one time, with each withdrawn amount fully paid back into the endowment fund over a period not exceeding three years from the date of withdrawal.
Each amount withdrawn must be fully paid back into the endowment fund over a period not exceeding three years from the date of withdrawal.
Founding institutions are authorized to make contributions in the form of investments to the endowment fund: P3,000,000.00 each in June 1973 and P4,500,000.00 in June 1975, notwithstanding provisions of their respective charters to the contrary.
Yes. The Land Bank is included as a participant entitled to contribute by making financial and other contributions to operations in the same amounts and under the same conditions as the original founding institutions.
Effective fiscal year 1977.
Until the Academy is financially self-sufficient, its operations shall be financed through contributions of the founding institutions, the parties to the memorandum agreement dated May 11, 1973.
The Charter intends to protect the principal from being depleted or permanently reduced; any access to the fund must comply with limits and repayment rules, ensuring the principal remains intact except temporarily under tightly constrained withdrawals that must be repaid within the maximum three-year period.