Amendment on Remittance Proof for OFWs

Legal basis, predecessor, and repeal

The President acts under powers vested by the Constitution.
The order is issued pursuant to authority under Presidential Decree No. 1416, as amended by Presidential Decree No. 1772, which includes continuing authority to reorganize the National Government and create government entities, agencies, and instrumentalities.
The Executive Order revises Executive Order No. 778 which created the Manila International Airport Authority.
Section 26 provides a general repealing rule for all laws, executive orders, letters of instructions, rules and regulations, or provisions thereof that are inconsistent with the Executive Order.

Purpose and guiding policy objectives

The Authority must help encourage and promote international and domestic air traffic in the Philippines to make the Philippines a center of international trade and tourism and to accelerate development of transportation and communications.
The Authority must formulate and adopt internationally acceptable standards of airport accommodation and service for application in the Airport.
The Authority must upgrade and provide safe, efficient, and reliable airport facilities for international and domestic air travel.

Key definitions and scope of coverage

“Authority” means the Manila International Airport Authority (Section 2[a]).
“Board” means the Board of Directors of the Authority appointed by the President under Section 7 (Section 2[b]).
“Airport” means the new Manila International Airport, including the Manila Domestic Airport, and all its installations, facilities and equipment, and such other airports in Metro Manila that may in the future be constructed and administered by the Authority (Section 2[c]).
The Authority is established as a body corporate attached to the Ministry of Transportation and Communications (Section 3).
The Authority’s principal office is located at the New Manila International Airport (Section 3).
The Authority may establish offices, branches, agencies, or subsidiaries as it deems proper and necessary, and any subsidiary requires prior approval of the President (Section 3).
The land where the Airport is presently located and the surrounding land area of approximately six hundred hectares are transferred to the Authority’s ownership and administration, subject to existing rights, if any (Section 3).

Airport ownership, land survey, and transfer limits

Bureau of Lands and other appropriate government agencies must undertake an actual survey of the transferred area within one year from promulgation of the Executive Order (Section 3).
A corresponding title must be issued in the name of the Authority (Section 3).
Any portion of the transferred land cannot be disposed through sale or any other mode unless specifically approved by the President of the Philippines (Section 3).

Authority powers, governance, and operations

The Authority must formulate, in coordination with the Bureau of Air Transportation and other appropriate government agencies, a comprehensive integrated policy and program for the Airport, and must implement, review, and update it periodically (Section 5[a]).
The Authority must control, supervise, construct, maintain, operate, and provide facilities and services necessary for efficient Airport functioning (Section 5[b]).
The Authority must promulgate rules and regulations governing planning, development, maintenance, operation, and improvement of the Airport, and must control and/or supervise necessary construction of structures or rendering of services within the Airport (Section 5[c]).
The Authority is empowered to sue and be sued in its corporate name (Section 5[d]).
The Authority must adopt and use a corporate seal (Section 5[e]).
The Authority may succeed by its corporate name (Section 5[f]).
The Authority may adopt by-laws and amend or repeal them from time to time (Section 5[g]).
The Authority may enter into contracts of any kind and acquire and dispose of land, buildings, airport facilities, or other properties of any kind (movable or immovable) or any interest therein (Sections 5[h], 5[i]).
The Authority may exercise eminent domain in pursuit of its purposes and objectives (Section 5[j]).
The Authority may levy and collect dues, charges, fees, or assessments for use of Airport premises, works, appliances, facilities, concessions, or services provided, subject to:
- approval of the Minister of Transportation and Communications in consultation with the Minister of Finance, and
- Batas Pambansa Blg. 325 where applicable (Section 5[k]).
The Authority may invest idle funds in government securities and other evidences of indebtedness of the government (Section 5[l]).
The Authority must provide services within the Airport or approaches thereto, including:
- aircraft movement and allocation of parking areas of aircraft,
- loading and unloading of aircraft,
- passenger handling and services for care, convenience, and security of passengers, visitors, and other airport users, and
- sorting, weighing, measuring, warehousing, or handling of baggage and goods (Section 5[m]).
The Authority may adopt measures to remedy congestion in the airport as part of its incidental powers (Section 5[n]).
The Authority may exercise all corporate powers under the Corporation Law to the extent not inconsistent with the Executive Order (Section 5[o]).
The Authority’s corporate powers are vested in a Board of seven (7) members (Section 7).

Police authority within Airport premises

The Authority has power to exercise police authority necessary within its premises to carry out functions and attain purposes, without prejudice to functions by the Ministry of National Defense through AVSECOM, as provided in LOI 961 (Section 6).
The Authority may request assistance of law enforcement agencies, including deputization as required (Section 6).
The Authority’s police authority includes security and order functions such as:
- maintaining security for passengers, cargoes, aircraft, airport equipment, structures, facilities, personnel, funds, and documents (Section 6[a]),
- regulating entry, exit, and movement within the Airport (Section 6[b]),
- maintaining peace and order within Authority premises in coordination with local police and authorized peace-keeping entities within the Airport (Section 6[c]),
- regulating and supervising private security agencies operating in the Airport (Section 6[d]), and
- enforcing Authority rules and regulations (Section 6[e]).

Board structure, meetings, and quorum rules

The Board has:
- Chairman (ex-officio) being the Minister of Transportation and Communications,
- Vice-Chairman (ex-officio) being the General Manager of the Authority,
- ex-officio members: Minister of Finance, Minister of Tourism, Presidential Executive Assistant, Chief of Staff of the Armed Forces of the Philippines, and Commissioner of Immigration and Deportation (Section 7).
In the absence of the Chairman, the Vice-Chairman acts as Chairman (Section 7).
The Chairman, Vice-Chairman, and Board members may designate representatives to attend Board meetings and meetings of assigned committees in their absence; representatives attend meetings and receive corresponding per diems (Section 7).
The Board meets regularly once a month and as often as exigencies demand (Section 7).
A quorum is constituted by the presence of at least four (4) members of their representatives (Section 7).
Adoption of any Board rule, regulation, resolution, decision, or act requires the vote of a majority of members or representatives present where there is a quorum (Section 7).
Per diems for Board meetings actually attended are approved by the Board but cannot exceed One Thousand Pesos (P1,000.00) during any one (1) month for each member or representative (Section 7).

Board powers and General Manager authority

The Board defines and approves programs, plans, policies, procedures, and guidelines for development and operation of the Airport and controls the management, operation, and administration of the Authority (Section 8[a]).
The Board recommends to the President, for appointment, a General Manager as the Authority’s Chief Executive Officer (Section 8[b]).
The Board approves the Authority’s organizational and administrative structure, staffing pattern, operating and capital expenditures, and financial budgets upon recommendation of the General Manager (Section 8[c]).
The Board approves salary ranges, benefits, and other terms and conditions of service for all officers and employees upon recommendation of the General Manager, aiming to be competitive with the private sector subject to existing laws, rules, and regulations (Section 8[d]).
The Board fixes the rate of dues, charges, fees, or assessments upon recommendation of the General Manager (Section 8[e]).
The Board generally exercises all functions and powers necessary or incidental to attain the Executive Order’s purposes and objectives (Section 8[f]).
The General Manager is directly responsible to the Board (Section 9).
The General Manager directs and supervises management, operation, and administration of the Authority and its units, to provide international standards and ensure financial stability in accordance with Board-approved programs, policies, procedures, and guidelines (Section 9[a]).
The General Manager provides general supervision and overall coordination of government agencies operating in the Airport regarding allocation and use of building space and Airport premises (Section 9[b]).
The General Manager conducts research and studies on present operations and future development requirements and submits comprehensive reports and recommendations to the Board (Section 9[c]).
The General Manager appoints, transfers, suspends, removes, or disciplines subordinate officers or employees subject to Board approval, and may engage qualified professionals/experts/technical advisers/consulting firms on contractual basis and determine their compensation or fees as authorized by the Board (Section 9[d]).
The General Manager enters into memoranda of agreement/understanding, contracts, or other arrangements with government agencies or private entities operating or providing services in the Authority to ensure coordination and integration, subject to Board approval or applicable laws and rules (Section 9[e]).
The General Manager establishes and maintains a system for regular and prompt dissemination of financial, statistical, and other relevant data within the Authority and to the Board (Section 9[f]).
Within delegated limits, the General Manager executes contracts, incurs obligations, acquires and disposes assets, and delivers documents on behalf of the Authority (Section 9[g]).
The General Manager implements and enforces Board decisions, orders, rules, and regulations (Section 9[h]).
The General Manager performs duties delegated or assigned by the Board and performs other acts necessary and proper to implement the Executive Order (Section 9[i]).

Capital contribution and ongoing government support

The National Government contributes the Authority’s capital in the amount of Two and One Half Billion Pesos (P2,500,000,000.00) (Section 10).
Initial capital consists of:
- the value of fixed assets and other contributed or transferred properties whose valuation is determined jointly with the Office of Budget and Management and the Commission on Audit after allowance for depreciation and other deductions, and considering loans and liabilities at the time of takeover (Section 10[a]),
- the value of real estate owned and administered by the Manila International Airport (Section 10[b]), and
- the value of net current assets (stocks and receivables less prepaid payables and accrued expenses) and an initial cash amount approved by the President, equivalent to more or less six (6) months working capital requirements, appropriated from National Treasury funds (Section 10[c]).
Thereafter, government contribution to capital must be provided for in the General Appropriations Act (Section 10).

Revenue diversion for other airports

Sixty-Five per centum (65%) of the Authority’s annual gross operating income must revert to the general fund in the National Treasury for use in maintenance and operation of other international and domestic airports in the country (Section 11).

Auditor and legal counsel arrangements

The Chairman of the Commission on Audit serves as the ex-officio Auditor of the Authority (Section 12).
The Chairman may appoint a representative as auditor of the Authority and necessary personnel to assist (Section 12).
The number and salaries of the auditor and personnel are determined by the COA Chairman subject to COA rules and regulations (Section 12).
The Authority pays salaries and all expenses of maintaining the auditor’s office (Section 12).
The Auditor must send an annual report to the Board as soon as practicable, but not later than three (3) months after the accounts have been submitted to audit; the Auditor may also submit periodic or special reports when deemed necessary (Section 12).
The Government Corporate Counsel serves as Legal Counsel of the Authority (Section 13).
The Authority may establish its own legal department for day-to-day legal matters affecting its affairs (Section 13).
The Board appropriates, and the General Manager remits, an amount determined by the Government Corporate Counsel for services of the Legal Staff of the Office of the Government Corporate Counsel (Section 13).

Annual reporting, civil service applicability

The Board must submit to the President of the Philippines through the Ministry of Transportation and Communications, together with the audit report on relevant accounts, an annual report on Authority activities and operations (Section 14).
The Authority and its officials and employees are subject to Civil Service law and its rules and regulations (Section 15).

Borrowing limits, collateral, and guarantees

The Authority may raise funds through loans, credits, securities, and other borrowing instruments from local or international sources.
Borrowing requires consultation with the Minister of Finance and approval of the President of the Philippines, as recommended by the Minister of Transportation and Communications (Section 16).
The Authority may create pledges, mortgages, and other voluntary liens or encumbrances on any of its assets or properties (Section 16).
Loans contracted by the Authority, including interests and sums payable, constitute a charge on all revenues and assets of the Authority and rank equally with one another, but have priority over any other claim or charge on revenues and assets (Section 16).
This priority rule does not restrict the Authority’s power to create pledges, mortgages, and voluntary liens or encumbrances on assets or property (Section 16).
Except as expressly authorized by the President, the total outstanding indebtedness in principal amount in local and foreign currency must not at any time exceed the Authority’s net worth at that time (Section 16).
The President or duly authorized representative, after consultation with the Minister of Finance, may guarantee in the name and on behalf of the Republic the payment of loans or other indebtedness of the Authority up to the amount authorized under the Executive Order (Section 16).

Rate setting and adjustment; seizure for non-payment

The Authority may increase or decrease dues, charges, fees, or assessments to protect Government interest and provide a satisfactory return on Authority assets (Section 17).
The Authority may adjust the schedule of rates to reflect the cost of facilities or services provided (Section 17).
The Authority must periodically review dues, charges, fees, or assessments and adjust schedules to adequately reflect increases in price levels and, in the case of concession rentals, traffic volume increases, subject to Batas Pambansa Blg. 325 whenever practicable (Section 17).
If an owner or agent of any aircraft refuses or neglects to pay on demand any rate or charges made under Section 17, the Authority may, in addition to other remedies, detain on its own authority the aircraft equipment or furniture belonging to the owner or agent until amounts due are paid (Section 18).

Administrative fines for Airport violations

The Authority has power to exact reasonable administrative fines in specific amounts for specific violations arising from use of the Airport as prescribed in the Authority’s rules and regulations (Section 19).
Administrative fines must be not less than Fifty Pesos (P50.00) and not more than Ten Thousand Pesos (P10,000.00) (Section 19).

Permits and concessions: bidding rule

The General Manager must, as far as practicable, grant permits or concessions to the highest bidder through competitive public bidding for trade or business within areas controlled by the Authority (Section 20).
Bidding requirements may be waived for:
- banks,
- branches of post office,
- Bureau of Telecommunications,
- other government agencies with airport-related activities,
- those engaged in airline operations, or
- where the fees, rates, or assessments to be charged have been fixed by the Board (Section 20).
Permit or concessionaires must provide goods or services acceptable under international standards at prices similar to goods or services in Metropolitan Manila or airports in other countries (Section 20).
Final awards of permits or concessions to successful bidders are subject to Board approval (Section 20).

Tax exemption and subsidiaries restriction

The Authority is exempt from realty taxes imposed by the National Government or any political subdivisions, agencies, and instrumentalities (Section 21).
No tax exemption extends to any subsidiary the Authority may organize (Section 21).

Transfer of existing airport assets

All existing public airport facilities, runways, lands, buildings, and other property (movable or immovable) belonging to the Airport are transferred to the Authority (Section 22).
All assets, powers, rights, interests, and privileges belonging to the Bureau of Air Transportation relating to airport works or air operations are transferred to the Authority (Section 22).
Transfer includes equipment necessary for operation of crash fire and rescue facilities (Section 22).

Projects in progress and disputes escalation

Ongoing projects relating to construction of airport facilities continue to completion by the agencies involved (Section 23).
After completion, projects transfer to the Authority in accordance with agreements among agencies concerned (Section 23).
Any disagreement relating to transfer of such projects must be submitted to the President of the Philippines for final decision (Section 23).

Transfer of liabilities for completed facilities

Upon transfer to and acceptance by the Authority of existing physical facilities, intangible assets, and completed projects, all debts, liabilities, and obligations of the Bureau of Air Transportation and other agencies/entities concerned regarding physical facilities, tangible assets, and completed projects within the Airport are assumed by the Authority (Section 24).

Abolition of prior division and transitory continuity

The Manila International Airport including the Manila Domestic Airport as a division under the Bureau of Air Transportation is abolished (Section 25).
The Airport General Manager of the abolished entity continues in office to perform all powers and functions of the Authority until a General Manager is appointed to ensure smooth transfer of responsibility to the Authority and to determine personnel to be retained (Section 25).
Any officials and employees whose services are terminated are entitled to benefits and gratuities provided under existing laws (Section 25).

Separability and final effectivity rule

Section 27 provides separability: invalid or unconstitutional portions do not affect the validity of other provisions, which remain in full force and effect.
Section 28 provides immediate effectivity (July 21, 1983, the date of issuance).