Utilization and Disbursement of Funds
- As of June 30, 1974, P38,556,272.90 was paid to settle 62,721 claims adjudicated by the Philippine Veterans Affairs Office (PVAO).
- An estimated P23,928,400 is still required to fully settle remaining claims of approximately 45,083 officers and enlisted men, including refunds of erroneous deductions.
Role of Philippine Veterans Assistance Bodies
- The Philippine Veterans Assistance Commission (PVAC) was created under PD No. 244 to aid veterans.
- The Philippine Veterans Investment Development Corporation (PHIVIDEC) was established under PD No. 243 as an investment arm to generate funds to support PVAC's projects.
Central Bank Memorandum on Banking Capital
- Per Central Bank Memorandum dated April 23, 1973, all banks must increase paid-up capital to at least P100 million.
- This requires the Philippine Veterans Bank (PVB) to increase its capital to effectively participate in the banking system and economic development.
Investment Strategy for Veterans Claims Fund
- To maximize earnings and socio-economic impact, a significant portion of the Veterans Claims Settlement Fund shall be invested in labor-intensive and high-return projects.
- This investment must not prejudice the settlement of unpaid veterans’ claims.
Segregation and Allocation of Funds
- P49 million is allocated as payment for 490,000 preferred shares in PVB, increasing its paid-up capital to P100 million, benefiting veterans and their legal heirs.
- Each veteran is entitled to one common share and one preferred share as per RA 3518.
- P24 million is retained in trust with PVB to settle unadjudicated claims under existing Trust Agreement terms.
- P8 million is allocated as partial payment for PHIVIDEC's unpaid subscription representing 60% of its authorized capital.
- Approximately P2 million is allocated to PVAC for veterans' medicare, homes for the aged, and small loans (up to P2,000 per veteran).
Investment of PVAC Funds
- PVAC must enter into a Trust Agreement with PHIVIDEC for investing the P2 million, ensuring maximum yield with safety and liquidity, pursuant to PD No. 353.
Repeal and Modification of Conflicting Provisions
- All inconsistent laws, decrees, orders, and regulations are either repealed or modified accordingly to conform with this decree.
Coordination and Implementation
- Presidents of PVB, PHIVIDEC, and administrators of PVAC and PVAO shall coordinate for immediate implementation.
Effectivity
- The decree is effective immediately upon promulgation on January 21, 1975, under the authority vested in the President as Commander-in-Chief and pursuant to Proclamation No. 1081 and General Order No. 1.