Question & AnswerQ&A (Republic Act No. 1345)
The primary policy is to assist Filipino retailers and businessmen by supplying them with merchantable goods at prices that enable them to successfully compete in the open market, promoting their greater participation in the distribution system of the economy.
NAMARCO shall exist for a period of twenty-five (25) years from the effective date of the Act.
General powers include adopting a corporate seal, making contracts, purchasing and dealing in property, suing and being sued, transacting all necessary business, and exercising all corporate powers under the Corporation Law not inconsistent with the Act.
NAMARCO is authorized to procure and buy commodities for distribution at reasonable prices, stabilize prices of scarce commodities, formulate credit policies, establish distribution offices, accept eligible evidence of indebtedness, rediscount with financial institutions, and borrow money for its purposes.
The authorized capital is thirty million pesos, subscribed entirely by the Republic of the Philippines, paid in tranches of ten million pesos upon approval and ten million pesos per fiscal year for two years thereafter; this constitutes a revolving fund for NAMARCO's business transactions.
The Board consists of seven members; the Secretary of Commerce and Industry as ex-officio Chairman and six members appointed by the President with Commission on Appointments' consent. Terms for new appointees are three years, with staggered initial terms of one to three years.
No Board member shall serve in any other capacity in the corporation, and neither the General Manager nor Board members shall intervene or have financial interest in private enterprises affected by NAMARCO's functions.
Such officers or employees shall be removed from service and punished with imprisonment of not less than one year and not more than five years, and a fine ranging from one thousand to five thousand pesos; additional penalties apply for other corrupt practices, including fines and imprisonment.
They shall be punished by imprisonment from three months to three years, and fined not less than the amount of credit obtained or applied for, and not more than three times that amount.
PRISCO is dissolved. Its personnel, assets, and obligations are transferred to NAMARCO, with PRISCO personnel reappointed according to the Reorganization Act of 1954. Those not reappointed within 120 days are separated with entitlements to vacation, sick leaves, and gratuity benefits.