QuestionsQuestions (LTO ADMINISTRATIVE ORDER NO. BGC-AO-001)
PD No. 570, dated October 30, 1974, creates the Tondo Foreshore Development Authority, defining its objectives, powers, functions, and the funding and other legal provisions needed for the Tondo Foreshore urban renewal and resettlement.
It is granted succession for fifty (50) years from and after the date of the approval of the Decree.
It has general jurisdiction and control over all persons, corporations, firms, or utilities existing, proposed, or to be established within the Tondo Foreshore area and its resettlement site.
The Authority must undertake integrated urban renewal for a harmonious healthy living community, ameliorate the physical and socio-economic conditions of Tondo Foreshore residents, and encourage public/private organizations to adopt similar integrated approaches to slum, squatter, and resettlement problems.
Examples include: (1) develop and implement comprehensive urban renewal programs and enforce environmental-standard compliance; (2) construct, own, lease, operate and maintain infrastructure and housing/sites-and-services; (3) acquire and own property and encumber/dispose of it; (4) sue and be sued and prepare bylaws; (5) borrow/raise funds and contract; among others.
Section 3(a)(1) requires that the Authority’s development policies ensure a reasonable degree of compliance with environmental standards.
The governing powers are vested in a six (6) member Board composed of ex-officio members: the Executive Secretary, NEDA Director General, DPW&C Secretary, Secretary of Industry, GSI Service Insurance System General Manager, and the Administrator of the Social Security System; plus it includes the Chairman of the Board of Governors of the Development Bank of the Philippines as the seventh in the sense described for choosing the Chairman.
The President appoints the Chairman from among the directors.
Each Board member receives a monthly commutable allowance of ₱500 and a per diem of ₱100 for every meeting of the Board or its committees actually attended; the total per diems per month cannot exceed ₱500.
The Board formulates and adopts policies consistent with the national framework for urban development; it ordains and promulgates rules and regulations via a Code of By-Laws passed by majority vote; it establishes committees; and it submits/publishes an annual report before end of June.
The sinking fund ensures that total annual contributions, at an interest rate determined by the Board, are sufficient to redeem the bonds at maturity. Custody is with the treasurer of the Authority, who invests it according to the Board’s directions.
The Republic guarantees payment of both principal and interest of obligations issued under the Decree. If the Authority fails, the Secretary of Finance pays from National Treasury funds not otherwise appropriated; to the extent paid, the Republic succeeds to the rights of bondholders unless the amount is refunded by the Authority within a reasonable time.
A lump sum of ₱30,000,000.00 for Fiscal Year 1975 is appropriated out of National Treasury funds not otherwise appropriated; subsequent appropriations are included in the Annual Appropriations Act.
It has the right of eminent domain to acquire properties for planning and implementation. Condemnation proceedings must be maintained by and in the name of the Authority and conducted in the manner provided by law.
The Chairman of the Commission on Audit appoints a representative as auditor of the Authority and the necessary personnel; salaries are fixed by COA with advice of the Board and are paid by the Authority.
Officers and employees of the Authority are not subject to the Civil Service Law, rules, and regulations, and are likewise exempt from Wage and Position Classification Office rules.
The Authority is exempt from all forms of taxation and from all duties direct or indirect imposed by the Government or any political subdivision/instrumentality. Donations/contributions/bequests/financial aid to the Authority are exempt from taxes of any kind and are allowable deductions in full from donors’ income for income tax purposes.
The properties, rights, obligations, and liabilities of the Tondo Foreshore Urban Renewal Project are transferred to the Authority, meaning the Authority assumes the predecessor project’s legal standing.