QuestionsQuestions (Republic Act No. 663)
To develop and improve the rice and corn industries in all phases, stabilize rice and corn prices, and promote the social and economic conditions of people engaged in producing these staple foods.
All assets and liabilities of the defunct NARIC turned over to PRISCO by virtue of Executive Order No. 350 are transferred to the newly created National Rice and Corn Corporation.
It must be organized within one month from the approval of the Act, and it exists for a term of thirty (30) years from that date.
In the City of Manila.
Not through regimentation, but through education, inducements, practical demonstrations; promotion of initiative and cooperation among the people; facilities and guidance; and assistance from existing government agencies and private institutions.
Maintain stable prices consistent with average cost of production, purchasing power of the people, and national economic policy; prevent speculation/exploitation of consumers; finance producers and other industry activities needing assistance; and study/pursue measures to improve quality, yields, and reduce production/storage/handling/transport costs, among others.
The corporation may buy, sell, import, export, deal in, barter, exchange, and handle in any other manner rice and corn and their by-products.
It may own, lease, operate, and hold—subject to existing laws—transportation means, elevators, mills, factories, irrigation systems, power plants, machinery, warehouses, and structures needed for protection, storage, handling, processing, utilization, sale, and general development work.
The corporation may exercise the right of eminent domain in the name of the Republic of the Philippines; title to condemned real estate must be taken in the name of the Republic and then entrusted to the corporation as agent of the Republic, and eminent domain may be used only after the corporation completely fails to purchase at a price deemed reasonable by the Board of Directors.
Except for personal services, purchases/contracts must be made after advertising with sufficient advance notice for bidding competition, unless exceptions apply: (1) emergency; (2) repair parts/accessories/supplemental equipment/services for previously furnished/contracted supplies; or (3) aggregate amount does not exceed P1,000 (open market per common business practice).
When it is established to the satisfaction of the Board that the government price is the lowest possible considering quality and period of delivery, the Board may allow purchases from the government without public bidding.
Books of accounts must be complete and accurate and segregated into three main accounts: (1) stabilization of prices; (2) developing and improving production; and (3) promoting the economic and social conditions of rice and corn producers.
Five members appointed by the President of the Philippines with the consent of the Commission on Appointments; the President appoints the Chairman from among them.
Three members of the Board of Directors constitute a quorum.
No political test or qualifications shall be permitted or given consideration; appointments and promotions must be based on merit and efficiency.
Capital stock is P20,000,000 divided into 200,000 shares with par value of P100 each; all shares are subscribed by the Government except such number as may be sold to members of the Board of Directors.
Voting power of all government-owned stocks is vested in the President of the Philippines or persons he designates.
The present National Rice and Corn Corporation as merged with PRISCO is dissolved; its properties, assets, rights, obligations, liabilities, and contracts transfer to and are assumed by the new corporation; business and affairs are liquidated as of the Act’s effective date and automatically assumed/continued.
Exempt from import duty on rice and corn and certain demonstration supplies/machinery (fertilizers and lime); exempt from sales and milling taxes imposed by national/provincial/municipal governments; President may exempt from other taxes for public interest. The corporation may inspect and take records of palay/rice/corn stocks stored by any person or entity and enter premises for inspection and record-taking.
One month after its approval.