QuestionsQuestions (Republic Act No. 1135)
The agency created is called the Philippine Tobacco Administration (PTA), with its main office in the City of Manila and such branches and agencies within and outside the Philippines as may be necessary.
The PTA aims to promote the effective merchandising of leaf tobacco, conduct research on tobacco and tobacco products, improve manufacturing methods, establish balanced production and consumption relations, stabilize prices, create marketing facilities, supervise tobacco classification and grading, and improve labor conditions in the tobacco industry.
The PTA operates under the supervision of the Administrator of Economic Coordination.
The PTA may establish research stations, maintain a chemical tobacco research laboratory, buy and sell tobacco leaves and products, grant loans to tobacco planters, enter contracts, facilitate cooperative associations, and generally exercise corporate powers not inconsistent with its enabling law.
The PTA is governed by a Board of Directors consisting of five members appointed by the President of the Philippines with the consent of the Commission on Appointments. The President also appoints the Chairman of the Board who acts as the General Manager.
Initial directors are designated to serve staggered terms of one to five years. Thereafter, members serve for five years. Vacancies are filled for the unexpired term.
The General Manager directs and manages the PTA's affairs, submits annual reports, appoints subordinate employees with Board approval, disciplines employees for cause, and performs other duties assigned by the Board.
Appointments and promotions must be based on merit, seniority, and efficiency, with no political tests or qualifications allowed.
The PTA must maintain complete and accurate books of accounts segregated into five main accounts covering price stabilization, production improvement, social and economic conditions, production ready for manufacture, and trade development.
Purchases and contracts, except for personal services, must be made after advertising to ensure competition, but exceptions exist for emergencies, repair parts, small purchases, and purchases from government entities under certain conditions.
The Auditor General appoints a representative as the PTA's auditor. An annual audit report covering financial statements, audit scope, and observations must be submitted within 60 days after the fiscal year ends to the Board, President, Economic Coordinator, and Congress presiding officers.
A special fund called the Tobacco Industry Promotion Fund is created, financed from tobacco industry taxes, with an appropriation of two million pesos initially, followed by an annual appropriation of the same amount for four years.
Upon dissolution, the PTA continues as a body corporate for three years to settle affairs. A Board of Liquidators appointed by the President manages liquidation under supervision of the Administrator of Economic Coordination. All funds revert to the National Government's general fund.
Yes, provisions of the Corporation Law apply to the PTA except those inconsistent with this Act.
Officers or employees appointed in violation of the merit system shall be removed by the Administrator of Economic Coordination, and the officials responsible shall be suspended or removed by the President.