Establishment and Organization of the Catanduanes Development Authority (CDA)
- CDA created as a corporate body to implement development plans of Catanduanes.
- To be organized within 60 days of the Act's effectivity.
- The first Board of Directors serve as incorporators.
- CDA's principal office is in the province, with branch offices as necessary.
Purposes of the Authority
- Conduct comprehensive surveys of physical, natural, social, and economic conditions.
- Draft detailed development plans aligned with National Economic Council guidelines, submitted to the President for approval.
- Provide planning, management, and technical assistance to investors.
- Recommend financing, technical support, and priority levels for industrial and agricultural projects.
- Coordinate with government and private entities to accelerate development.
- Authority to engage in pioneering industrial or agricultural enterprises, alone or with private entities.
- Assist in population resettlement affected by government socio-economic measures.
- Submit annual reports to the President, National Economic Council, and Congress assessing progress and providing recommendations.
Corporate Powers of the Authority
- Legal personality: can sue and be sued, use corporate seal.
- Make contracts, amend by-laws, acquire, lease, or dispose of properties.
- Hold agricultural lands exceeding constitutional limits applicable to private entities.
- Exercise eminent domain in the name of the Republic, with real estate titles held by the Republic and entrusted to the Authority.
- Regulate activities necessary for executing its functions.
- Borrow funds up to one million pesos independently of bond issues.
- Purchase and manage shares or securities of other corporations.
- Perform all acts a natural person or corporation may do under law.
Capitalization and Financial Provisions
- Authorized capital of twenty million pesos, fully subscribed by the Republic of the Philippines.
- Initial appropriation of five million pesos from the National Treasury, plus three million pesos annually for five years.
- Capital serves as a revolving fund for Authority’s transactions.
- Operating expenses funded initially by five hundred thousand pesos, with annual appropriations and reimbursements structured to maintain financial sustainability.
- Authority may issue bonds with Presidential and Secretary of Finance approval, subject to specified limits (max ten million pesos total, two million per issue).
- Bonds payable in Philippine or convertible foreign currency, tax-exempt except for inheritance and gift taxes.
- Establishment of a sinking fund managed by the Development Bank of the Philippines for bond redemption.
- Government guarantee covers principal and interest of issued bonds; Government pays if Authority defaults and is subrogated to holders’ rights.
Governance and Administration
- Powers vested in a Board of Directors: five members appointed by the President with Commission on Appointments consent.
- Chairman-General Manager designated by the President; acts as chief executive.
- Terms staggered over six years; vacancies served only for unexpired terms.
- Board functions with quorum of three; members must be natural-born Filipinos with integrity and technical socio-economic development knowledge.
- Members prohibited from partisan politics and conflict of interest; violations grounds for dismissal.
- Board meets at least monthly; members (except chairman-general manager) receive per diems capped monthly.
- General Manager oversees operations, implements policies, and supervises staff with prescribed qualifications and compensation.
- Residence near principal office required for General Manager.
- Key officials include assistant general managers (planning/research and program implementation) and general counsel.
Personnel and Labor Provisions
- Appointment of personnel based on merit system aligned with Civil Service rules.
- Division chiefs and higher appointed by Board; other employees appointed by General Manager.
- Employment contracts to provide wages at least equal to law minimum or prevailing local rates.
- Disputes on wage rates referred to Secretary of Labor.
- Labor benefits comply with existing laws.
Operational Guidelines and Oversight
- Formulation of development plans required within one year; President approval needed before implementation.
- Authority operates independently under Presidential supervision.
- Supply purchases and service contracts require competitive bidding, with exceptions for emergencies and minor procurements.
- Auditor General serves as ex-officio auditor; audit reports submitted semiannually and annually to government authorities.
Legal and Miscellaneous Provisions
- The Act’s provisions are separable; invalidity of one does not affect others.
- Conflicting laws repealed.
- Act’s effectivity set on January 2, 1966.