QuestionsQuestions (Republic Act No. 353)
RA 353 appropriates funds to carry into effect Executive Order No. 107 for the rehabilitation of domestic insurance companies.
From any funds in the National Treasury not otherwise appropriated.
Executive Order No. 107, dated April 20, 1946.
No amount shall be set up in the books of the General Auditing Office or otherwise made available for investment unless previously authorized by the President upon certification of the Secretary of Finance that the sum is necessary for rehabilitation of domestic insurance companies, based on the recommendation of the Bank and Insurance Commissioner.
The Secretary of Finance must certify that the sum involved is necessary for the rehabilitation of domestic insurance companies, as recommended by the Bank and Insurance Commissioner.
It must recommend the rehabilitation need, which is then considered for the President’s authorization upon the Secretary of Finance’s certification.
The President of the Philippines.
There is an additional authorization requirement—prior authorization by the President is required following the Secretary of Finance’s certification and the Bank and Insurance Commissioner’s recommendation.
Any amount released under RA 353 for the purposes of Executive Order No. 107 shall be credited to the subscription of the Government of the Republic of the Philippines to the capital stock of the Rehabilitation Finance Corporation.
The released funds are credited to the Government’s subscription to the capital stock of the Rehabilitation Finance Corporation.
It indicates that the appropriated funds are intended to implement not only the original EO 107 but also its subsequent amendments.
It indicates that even if appropriated, amounts cannot be entered in GAO records or otherwise made available for investment without the required President authorization and certifications/recommendations.
Upon its approval.
(1) The Bank and Insurance Commissioner recommends the need; (2) the Secretary of Finance certifies necessity; (3) the President authorizes the amount; (4) only then can the amount be set up/issued for investment and released consistent with EO 107 purposes.
The Bank and Insurance Commissioner (recommendation), the Secretary of Finance (certification), the President (authorization), and the General Auditing Office (no set-up/availability without authorization).