Title
Creation of LASEDECO and dissolution of agencies
Law
Executive Order No. 355
Decision Date
Oct 23, 1950
Elpidio Quirino establishes the Land Settlement and Development Corporation (LASEDECO) to facilitate agricultural land acquisition and settlement, dissolve several existing agricultural administrations, and promote mechanized farming and rural development for various groups, including veterans and small farmers.
A

Powers, Duties, and Functions of LASEDECO

  • Facilitate acquisition, settlement, and cultivation of agricultural lands.
  • Provide ownership opportunities to tenants, small farmers, graduates of agricultural schools, military trainees, veterans, guerrilla members, and other board-approved persons.
  • Encourage migration to less populated areas and integration within Philippine regions.
  • Acquire public agricultural lands from the government, conduct surveys, subdivide land for various public uses, and sell these lands to qualified buyers under constitutional and Public Land Act constraints.
  • Restricts alienation or encumbrance of granted lands for 10 years, except by inheritance; allows mortgages on improvements or crops.
  • Establish credit agencies, utilities (electricity, water), irrigation, cooperatives, and other settler services.
  • Promote mechanized farming, operate agricultural machinery pools, and maintain training centers.
  • Support establishment of agricultural and vocational schools in its jurisdiction with provisions for student land ownership upon course completion.
  • Authorized to perform all necessary incidental activities and exercise corporate powers consistent with this Order.

Capital and Liability

  • Capital comprised of net worth from dissolved entities: National Land Settlement Administration, Rice and Corn Production Administration, and Machinery and Equipment Department of the National Development Company.
  • Includes appraised value of lands transferred.
  • Government is not liable for debts or obligations incurred by LASEDECO.

Management Structure

  • Managed by a Board of Directors: a chairman and six members appointed by the President with Commission on Appointments approval.
  • Directors serve staggered terms initially; successors serve three-year terms.
  • Directors receive per diem for meeting attendance.

Board of Directors’ Powers and Duties

  • Authority to create and amend by-laws, rules, and regulations, including committees to expedite land disposition and title issuance.
  • Appoint and set compensation for General Manager and other officers with necessary approvals.
  • Have power to suspend or remove the General Manager for cause.

General Manager’s Responsibilities

  • Direct and manage Corporation's affairs under Board supervision.
  • Attend and participate in Board meetings without voting rights.
  • Submit annual report within 60 days after fiscal year-end.
  • Appoint and manage subordinate personnel including disciplinary actions.

Restrictions on Corporation Employees

  • Officers and employees prohibited from acquiring land within the Corporation’s territorial jurisdiction, directly or indirectly.

Auditing and Financial Oversight

  • Auditor General appoints LASEDECO’s auditor and staff.
  • Audits conducted per applicable laws and commercial principles.
  • Annual audit report must be submitted to key government officials within 60 days after fiscal year-end.
  • Report to include financial statements, audit scope, and highlight unauthorized transactions.

Appointment and Promotion Policies

  • Based strictly on merit and efficiency without political tests.
  • Violators subject to removal by Secretary of Economic Coordination.
  • Generally subject to Civil Service Law except certain high-level or technical positions designated by the President.

Dissolution and Transfer of Functions

  • Dissolves National Land Settlement Administration, Rice and Corn Production Administration, and Machinery and Equipment Department.
  • Assumes all personnel, records, assets, obligations, and contracts from these entities.
  • Requires inventory, valuation, and proper transfer procedures overseen by the Auditor General.
  • Personnel not reappointed within 60 days considered separated.
  • Agricultural operations of the Rice and Corn Production Administration to continue only within existing cultivated areas up to five years post-effectivity.

Land Titles and Transfers

  • Public agricultural lands previously assigned or reserved for dissolved entities, and future transfers, ceded to LASEDECO.
  • President authorized to issue patents or deeds transferring land titles per Public Land Act.

Repealing and Miscellaneous Provisions

  • Repeals or modifies inconsistent laws, orders, or proclamations.
  • Provides severability clause ensuring other provisions remain effective if one is invalidated.
  • Order effective October 23, 1950.

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