QuestionsQuestions (Republic Act No. 4663)
The law declares it is necessary and conducive to public interest and the general welfare to administer, manage, develop, improve, integrate, coordinate, and mobilize terminal facilities through a self-autonomous public-benefit corporation for an efficient, safe, economical, and coordinated system of movement of goods and persons through the port.
RA 4663 creates a public-benefit corporation known as the Cagayan de Oro Port Authority. It must be organized by the President of the Philippines within six (6) months after the approval of the Act.
The Authority is under the supervision of the President of the Philippines.
The Port District is the territorial jurisdiction of the Authority and is co-extensive with the present territorial jurisdiction of the City of Cagayan de Oro. The President may designate an initial smaller territory, expandable later subject to approval and without exceeding the statutory boundaries.
All lands of the public domain within the territorial limits of the Authority, whether existing at approval or to be reclaimed, are deemed ceded to the Authority.
A Port Commission called the “Cagayan de Oro Port Commission” is created. It carries out the provisions of the Act, exercises corporate powers, and directs the Authority’s business affairs.
It must prepare and execute a comprehensive port development plan; manage/operate/maintain/improve/modernize and coordinate activities in the Port of Cagayan de Oro; investigate, adopt, implement and update the development plan; and establish and enforce regulations for conservation of navigable waters and proper designation/use of anchorages and lines, including control over construction, excavation, or fill in waters leading to or within the port.
It includes the seaport and its accessories of wharves, piers, slips, docks, dry docks, bulkheads, basins, warehouses, cold storage, and loading/unloading equipment; plus bus terminals and accessories, rail terminals and accessories, and air terminals and accessories.
The Authority has broad corporate powers including perpetual succession, by-laws, seal, sue and be sued, contracts, acquisition and disposition of property (including reclamation and deemed transfer of reclaimed land), eminent domain, and other incidental corporate powers. It specifically cannot levy taxes or assessments.
It consists of a Chairman, a Vice-Chairman who is the Port Manager, and four directors who are persons of known competence (preferably from Northern Mindanao). All are appointed by the President with consent of the Commission on Appointments. The Collector of Customs for the Port of Cagayan de Oro is an ex officio member.
The Port Manager is the chief executive of the Authority. He is appointed by the President with consent of the Commission on Appointments, upon recommendation of the Secretary of Public Works and Communications, from career engineers in the government service.
Appointments and promotions must be based on merit, seniority, and efficiency, and no political test or qualification may be prescribed or considered.
All purchases or contracts for services other than personal services must be done only after public bidding—except when an emergency exists as certified by the Port Manager and unit costs/prices do not exceed the latest costs/prices paid by the Authority for the same or similar goods/services; the Port Manager must report under oath to the Commission within two weeks after the emergency procurement.
Four members constitute a quorum. The Chairman receives a per diem of Php 100, while the four directors and the Collector of Customs receive per diems not exceeding Php 30 each day of meeting actually attended, exclusive of traveling expenses; meetings may not exceed four per month.
Members cannot directly or indirectly engage in partisan political activity, and cannot be interested in any business that may be affected by or related to the Authority’s functions. Additionally, no member may be financially interested in any contract entered into by the Authority or in any special privilege granted by it; violation is a ground for dismissal.
Bond issuance requires a Commission resolution with affirmative vote of at least five members and approval by the President upon recommendation of the Secretary of Finance after consultation with the Monetary Board. Total bonds cannot exceed Php 50 million; no single issue exceeds Php 10 million; and no further issue if at least 70% of the immediately preceding issue is not yet sold.
The Authority is exempt from all taxes incidental to its operations. Notes, bonds, and debentures and other obligations issued by the Authority are exempt from all taxes as to principal and interest. Subsidiary corporations are subject to a phased-in tax schedule starting after five years.
Powers and duties previously vested in various government offices are transferred to the Authority. Priority use of relevant lands and facilities owned by the National Government and agencies is transferred to the Authority as needed for management/development. Appropriations and accruals to the Portworks Special Fund derived through the use of the Cagayan de Oro Port are transferred to the Authority for administration under the Act, while existing obligations are assumed by the Authority. Existing debts/contracts/suits may continue with or against the Authority.