Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 345)
The main purpose of Presidential Decree No. 345 is to authorize the reversion of the accumulated thirty percent (30%) sinking fund to the General Fund of the City of Manila for undertaking its public works projects and other related purposes.
The sinking fund was created from thirty percent of the annual gross receipts from market fees to amortize or finance the construction of new markets, remodel or replace old market buildings, purchase privately-owned buildings used as public markets, acquire new market sites, and construct market buildings and facilities.
As long as self-liquidating old markets have not been replaced, reconstructed, or remodeled as per specifications recommended by the Market Committee, the gross revenue from market fee collections shall be apportioned as 70% to the special fund of the City and 30% to the sinking fund.
On December 28, 1972, the City of Manila entered into a Management and Operating Contract with the Asiatic Integrated Corporation for managing 35 public markets and talipapas, requiring the latter to appropriate a yearly amount of not less than thirty percent of the gross receipts from market fees for maintenance, repair, reconstruction, development, and rehabilitation.
The accumulated sinking fund prior to the contract was Three Million Six Hundred Ninety-Six Thousand Nine Hundred Twenty-One Pesos and 99/100 (P3,696,921.99).
It was decided to revert the sinking fund because Asiatic Integrated Corporation was now responsible for improvements stated in RA No. 6039, and there were urgent public works projects needing funds for construction and repair of streets, dredging, and cleaning esteros.
President Ferdinand E. Marcos authorized the reversion of the accumulated thirty percent sinking fund to the General Fund of the City of Manila by virtue of his powers under the Constitution and Proclamation No. 1081.
The specific public works projects include the construction and repair of streets and the dredging and clearing of esteros.
The decree took effect immediately upon its issuance on November 26, 1973.