Distribution of Proceeds from Transactions Other Than Sale
- Proceeds from leases, joint ventures, and all transactions other than sale involving Metro Manila military camps are to be distributed equally between BCDA and the Armed Forces of the Philippines (AFP).
- Applies to future and previously executed transactions.
Scope and Coverage of the Executive Order
- Covers the proceeds of all transactions mentioned, regardless of when executed.
- Ensures uniform application to past and future contracts involving Metro Manila military camps managed by BCDA.
Basis of Sharing and Definition of Direct Expenses
- Distribution is based on proceeds net of expenses directly incurred for the transaction.
- "Direct expenses" are costs directly attributable to the transaction and would not have been incurred otherwise.
- Direct expenses are jointly determined by representatives of BCDA and the Department of National Defense (DND).
Utilization of Proceeds
- BCDA’s share of proceeds is treated as corporate income with utilization decided by BCDA’s Board of Directors.
- AFP’s share is allocated to the AFP Modernization Program pursuant to Republic Act No. 7898.
- Proceeds received after the termination of the AFP Modernization Program may still be used to satisfy multi-year obligations related to the program.
- Post-Modernization Program, AFP’s share may be used for other modernization projects approved by the AFP and the Secretary of National Defense.
Remittance Procedures
- BCDA is required to remit AFP’s share directly to the Armed Forces of the Philippines Modernization Act Trust Fund (Fund 172) in the Bureau of the Treasury.
- Remittance must be done within two weeks after actual receipt of payment from the transacting party.
Effectivity
- The Executive Order takes effect immediately upon issue.
- Ensures instant applicability to govern transactions and distribution of proceeds related to the Metro Manila military camps.