Date, Effectivity, and Publication Rule
- Republic Act No. 7637 was approved on September 24, 1992.
- The Act takes effect upon publication in at least two (2) national newspapers of general circulation. (Section 20)
Policy, Objectives, and Target “Victims”
- The Act is intended to provide additional funds for immediate relief, establish resettlement centers, homesites, and townsites, and provide livelihood and employment opportunities. (Section 3)
- The Act requires or supports repair, reconstruct, or replacement of government infrastructure damaged or destroyed by the disaster when economically, socially and technically advisable. (Section 3)
- The Act also supports construction of new infrastructure facilities needed by the community. (Section 3)
- The term “victims” covers:
- Individuals who died or disappeared as a result of the eruption; (Section 3)
- Individuals who were displaced and/or sustained injury, or whose family member died, as a result of the eruption and who need and deserve assistance; (Section 3)
- Individuals whose homes have been or are threatened to be destroyed or rendered uninhabitable, and those who have lost permanently their livelihood as a direct result of the eruption and similarly need and deserve assistance. (Section 3)
Allocation Guidelines and Use Limits
- Government funds must be spent judiciously and effectively and in consonance with the principle of providing the greatest good for the greatest number. (Section 4)
- Infrastructure priorities must go to resettlement centers, homesites and townsites, and to other projects such as river system and drainage works, roads, bridges, communication and power lines, hospitals, school buildings, irrigation and water systems, and similar infrastructure. (Section 4)
- Aid, relief, resettlement, rehabilitation, and livelihood services must be extended equitably to all victims, irrespective of political or party affiliation, sex, creed, religious belief, or ethnic origin, with emphasis on livelihood and employment opportunities. (Section 4)
- In the first year, funds must be allocated for acquisition of special equipment (e.g., amphibians and other equipment designed for use in affected areas) in an amount not to exceed Fifty million pesos (P50,000,000). (Section 4)
- No money may be released without any identified program and project, and funds may not be used to pay obligations incurred before approval of the Act. (Section 4)
Appropriations and Year-by-Year Programming
- The Act appropriates Ten billion pesos (P10,000,000,000) out of any available funds in the National Treasury not otherwise appropriated. (Section 5)
- Disbursement must be programmed as follows: (Section 5)
- From approval until December 31, 1993: Six billion five hundred million pesos (P6,500,000,000), with at least Five billion pesos (P5,000,000,000) for resettlement and livelihood projects, and one billion five hundred million pesos (P1,500,000,000) for vital infrastructure; (Section 5)
- For 1994: Two billion pesos (P2,000,000,000); (Section 5)
- For 1995: One billion five hundred million pesos (P1,500,000,000). (Section 5)
- Undisbursed amounts at the end of any year must be carried over to the succeeding year. (Section 5)
Commission Creation, Composition, and Powers
- The Act creates the Mt. Pinatubo Assistance, Resettlement and Development Commission, referred to as the Commission. (Section 6)
- The Commission must be organized within thirty (30) days after approval of the Act. (Section 6)
- The Commission has a term of six (6) years from its organization. (Section 6)
- The President may extend the Commission’s period of existence once for not more than three (3) years, provided the proclamation is issued within six (6) months prior to expiration of the term. (Section 6)
- Initial organization and/or operational expenses must be set aside from the appropriated amount. (Section 6)
- For administrative purposes, the Commission is attached to the Office of the President. (Section 6)
- The Commission has eleven (11) members appointed by the President:
- four (4) from the Cabinet;
- three (3) from the private sector;
- the Executive Director; and
- the Chairmen of the Bases Conversion and Development Authority, Subic Metropolitan Bay Authority, and Clark Development Authority as ex officio members. (Section 8)
- Members serve for six (6) years, unless removed for cause. (Section 8)
- The President designates the Chairman from among Commission members. (Section 8)
Executive Director and Operational Management
- The President appoints a professional manager as Executive Director, with compensation determined by the Commission, who serves as the chief executive officer. (Section 9)
- The Executive Director serves until the Commission is dissolved or unless removed earlier by the President. (Section 9)
- The Executive Director must:
- directly coordinate government agencies’ activities in planning and implementing projects on site; (Section 9)
- monitor programs and projects, evaluate execution effects, and submit periodic reports to the Commission on area development; (Section 9)
- perform other inherently necessary functions for operational management consistent with Commission policies and guidelines. (Section 9)
Implementation, Beneficiaries, and Reporting
- Survey, construction, repair, reconstruction, or alternate government infrastructure and facilities must be undertaken by concerned implementing government agencies through public bidding, administration, or negotiated contracts, subject to standard accounting and auditing rules and regulations. (Section 10)
- For negotiated contracts, only duly prequalified and duly licensed contractors as of approval may be awarded contracts. (Section 10)
- Labor-based technology must be used whenever suitable. (Section 10)
- For aid, relief, resettlement, rehabilitation, and livelihood services to individual beneficiaries, the Commission may seek assistance and use the services of the Philippine National Red Cross and other relief agencies and volunteer organizations with proven record in providing relief work. (Section 10)
- Government departments and agencies involved continue as implementing agencies and must submit to the Commission every quarter the data and information required under Section 12. (Section 10)
- Residents in the affected areas—especially the victims—must be given preference in hiring or employment for construction/repair/reconstruction of damaged or destroyed government infrastructure and in other labor requirements. (Section 11)
- The Commission must submit to the President and Congress a detailed quarterly report on funds allocated, indicating amounts released, obligated, and disbursed for:
- aid, relief, resettlement, rehabilitation, and livelihood services, including the list of names of approved individual beneficiaries and contractors and evaluation of effectiveness of delivery systems; (Section 12)
- construction or repair or reconstruction of infrastructure projects, including the list of contractors and projects being financed and accomplishments for expended appropriations, including the percentage of completion. (Section 12)
- The Commission must cause dissemination in the community of the lists of beneficiaries and contractors. (Section 12)
- The Commission must include in the quarterly report a list of local and foreign donors and the nature of their donations. (Section 12)
Congressional Oversight and Public Office Prohibition
- A Joint Congressional Oversight Committee is created to monitor implementation of the Act. (Section 13)
- The Oversight Committee has five (5) senators and five (5) representatives, appointed by the Senate President and the Speaker of the House of Representatives, respectively. (Section 13)
- The Oversight Committee is co-chaired by a senator and a representative designated by the Senate President and Speaker, respectively. (Section 13)
- The Oversight Committee’s mandate is without prejudice to existing Senate and House oversight committees’ duties and functions. (Section 13)
- An officer or employee of the Commission is not qualified to be a candidate for public office for the election next following resignation or separation. (Section 14)
- The prohibition in Section 14 does not apply to the Chairman and members of the Commission. (Section 14)
Prohibited Acts and Criminal Penalties
- Any person who takes advantage of the calamity by:
- buying and selling relief goods knowing or should have known they are intended for donation; or
- misrepresenting the source of relief goods; or
- submitting or approving a false or inflated claim
must be prosecuted and, upon conviction, must suffer: - a fine of not less than Fifty thousand pesos (P50,000) nor more than One million pesos (P1,000,000); and/or
- imprisonment of not less than six (6) years nor more than fifteen (15) years—or both at the court’s discretion. (Section 15)
- Conviction carries perpetual disqualification from public office if the offender is a public officer. (Section 15)
- Conviction also includes confiscation or forfeiture in favor of the Government of any prohibited interest. (Section 15)
- If the offender is a corporation, partnership, association, or other juridical entity, the penalty is imposed upon the officer or officers responsible for the violation. (Section 15)
- If the responsible officer is an alien, the officer is deported without further proceedings after service of sentence, in addition to the penalties prescribed. (Section 15)
Rules, Transfers, and Institutional Links
- The President must issue necessary rules and regulations for effective implementation within ten (10) days after organization of the Commission. (Section 16)
- All operating funds, records, properties, other assets, and liabilities of the Task Force on the Rehabilitation of Areas Affected by the Eruption of Mt. Pinatubo created under Presidential Memorandum Order No. 369, Series of 1991, as amended are transferred to the Commission. (Section 17)
- The Commission is empowered to:
- formulate policies and plans for relief, rehabilitation, resettlement, livelihood, and infrastructure support in harmony with National Government plans and policies, including those of Bases Conversion and Development Authority; (Section 7)
- determine areas where lahar flow may be diverted to spare communities and/or minimize damage to lives, habitation, infrastructure, agricultural and other resources; (Section 7)
- prioritize and coordinate implementation of Commission programs and projects; (Section 7)
- sue and be sued in its name and adopt, alter and use a seal; (Section 7)
- enter into necessary contracts, and upon consultation with the President, with foreign government entities, subject to usual accounting and auditing requirements; (Section 7)
- apply for, receive, and accept grants and donations of funds, equipment, materials, and services needed for development within and outside the Philippines; (Section 7)
- monitor progress of relief, rehabilitation, resettlement, livelihood, and infrastructure support programs and projects; (Section 7)
- coordinate and consult with national and local officials (elective and appointive) and accredited NGOs for prioritization and prosecution of programs and projects; (Section 7)
- call upon any government department, office, instrumentality, agency, or political subdivision for necessary assistance; (Section 7)
- perform other powers necessary and proper to carry out the Act’s purposes. (Section 7)
Separability, Repeal, and Legal Continuity
- If any provision is held unconstitutional or invalid, the remaining provisions not affected continue in full force and effect. (Section 18)
- Any law, decree, or rules and regulations inconsistent with or contrary to the Act are amended or repealed. (Section 19)