QuestionsQuestions (Republic Act No. 4850)
The policy is for the Authority to lead, promote, and accelerate the development and balanced growth of the Laguna Lake area and surrounding provinces, cities and towns within the context of national plans and policies for social and economic development.
RA 4850 creates the LLDA as a body corporate (a corporate entity). It must be organized within 120 days after the Act’s approval.
The Authority must maintain its principal office at a convenient place within the region; it may establish branch offices elsewhere as necessary.
Examples include: (1) conducting comprehensive surveys and hydrological/power/scenic tourist studies and drafting a detailed development plan; (2) providing planning, management, and technical assistance to investors; (3) recommending priority and financing/support levels for agricultural, industrial, and commercial projects; (4) passing upon/approving plans, programs, and projects related to regional development (decision final); (5) engaging in agriculture/industry/commerce and organizing subsidiary corporations for socio-economic development; (6) planning readjustment/relocation/resettlement of population; (7) annual reporting; (8) lending/facilitating financial assistance and acting as surety/guarantor; (9) reclaiming or undertaking reclamation projects/acquiring lands from the lake.
When the plans, programs, and/or project developments by local governmental agencies, public corporations, and private enterprises are related to the development of the region as envisioned in the Act. The LLDA determines whether approval is needed, and its decision is final.
The LLDA may acquire and hold/lease property and may lease, mortgage, sell, alienate, or otherwise encumber/dispose property it holds. It also has the power of eminent domain when necessary to attain LLDA objectives.
Authorized capital is P100,000,000 divided into one million shares with par value of P100 per share. Shares are 700,000 common (voting) and 300,000 preferred (non-voting).
Of the subscribed common shares of 200,000: at least 60% must be subscribed by the provinces of Laguna and Rizal equally, with 25% of that subscription fully paid. The remaining common shares are open for subscription to cities, municipalities, provinces, and private investors.
Preferred shares are available for subscription to cities, municipalities, provinces, government corporations, and private investors. However, private investors subscribing to common shares must also subscribe and/or purchase one (1) preferred share for every common share they hold.
The LLDA is exempt from all taxes, licenses, fees, and duties incidental to its operations; it includes subsidiaries. Subsidiary corporations become subject to those taxes on a five-year graduated basis: 20% in year 6, 40% in year 7, 60% in year 8, 80% in year 9, and 100% in year 10.
The Republic guarantees payment of principal and interest of LLDA bonds and other obligations issued under the Act. If the LLDA fails, the Secretary of Finance pays the amount from appropriated National Treasury funds; then, to the extent paid, the government succeeds to the rights of holders unless the amounts are refunded by the LLDA within a reasonable time.
The Board is composed of seven (7) members. The Board elects annually a Chairman, Vice-Chairman, and a Secretary who may not be a member of the Board.
Vacancies do not impair Board powers as long as there are four members in office. The affirmative vote of four (4) members is necessary at all times to pass or approve any act or resolution.
No Board member may be financially interested (directly or indirectly) in any contract entered into by the Authority or in special privileges granted by it during the member’s term. Contracts violating the rule are automatically null and void. If a member violates it and is found by a two-thirds (2/3) vote of the Board, the member is automatically disqualified for the unexpired term and perpetually disqualified from serving on the Board.
Purchases of supplies or contracts for services (except personnel services) must be made only after proper bidding. Bidding is not required if the amount involved is P5,000 or less, or if an emergency certified by the General Manager requires immediate delivery/performance; even then, comparison of bids-awards (when applicable) must consider cost, relative quality/adaptability, bidders’ financial responsibility and capabilities, delivery/performance time, and compliance with specifications.