Title
Amend NAMARCO Act on procurement, funds, penalties
Law
Republic Act No. 1791
Decision Date
Jun 21, 1957
An amendment to Republic Act No. 1345, Republic Act No. 1601 focuses on the National Marketing Corporation (NAMARCO), authorizing distribution offices and agencies throughout the Philippines for the purchase and distribution of essential commodities, with funds appropriated from the authorized capital and gross profits, subject to the approval of the President of the Philippines.
A

Capitalization, Revolving Fund, and Dollar Quota Allocation

  • The section title now includes capital, revolving fund, and dollar quota allocation, reflecting expanded financial mechanisms.

Appropriations and Operating Expenses

  • The Board of Directors can appropriate from NAMARCO’s gross earnings each fiscal year an amount not exceeding two million pesos for operational expenses, subject to the President’s approval.
  • Appropriation from authorized capital for operating expenses is prohibited.
  • Priority in hiring is given to former NAMARCO or PRISCO employees who are civil service eligibles if the staff is increased.
  • Unexpended balances for overhead revert to the revolving fund at fiscal year-end.
  • Net earnings of NAMARCO also accrue to the revolving fund.

Foreign Exchange Allocation and Importation Limits

  • Central Bank is authorized to allocate at least $20 million annually in foreign exchange to NAMARCO.
  • At least $5 million of this must be used to purchase essential or highly essential consumer goods as classified by Central Bank.
  • NAMARCO shall not import a commodity if there is sufficient local supply at reasonable prices.

Penalties for Violations and Enforcement

  • Penalties include imprisonment (2 months to 6 years), fines (₱200 to ₱6,000), or both for various offenses related to NAMARCO goods.
  • Offenses include selling above maximum price, removing the "NAMARCO" mark, hoarding for black marketing, refusal to sell displayed or stocked merchandise, false sales, price manipulation, and violation of related rules/regulations.
  • NAMARCO distributors or retailers found guilty are perpetually disqualified from reappointment.
  • Alien offenders subject to deportation upon conviction.
  • Corporate liability is extended to top officers (president, managing director, or manager).
  • Rules and regulations take effect 30 days after publication in the Official Gazette.

Effectivity

  • The amendments take effect immediately upon approval.

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