Presidential
Decree No. 572
FURTHER AMENDING THE
CHARTER OF THE PHILIPPINE NATIONAL OIL COMPANY (PNOC), AS PROVIDED FOR IN
PRESIDENTIAL DECREE NO. 334, AS AMENDED, AND FOR OTHER
PURPOSES
WHEREAS,
under
Presidential Decree No. 334, as amended, the
Philippine National Oil Company is expressly
charged (a) to provide and maintain an adequate and stable supply of oil and
petroleum products for the domestic requirements; (b) to promote the
exploration, exploitation and development of local oil and petroleum sources;
and (c) to foster oil or petroleum operation conditions conducive to a balance
and sustainable growth of the economy;
WHEREAS,
it is imperative that the
Philippine National
Oil Company and its affiliated companies be granted adequate powers and
incentives to enable it to attain expeditiously and efficiently its declared
objectives.
NOW,
THEREFORE, I, FERDINAND E. MARCOS, President of the
SECTION
1. Section 13 of
Presidential
Decree No. 334 is hereby amended to read as follows:
“SEC. 13. Loans. – The
Company as well as an affiliate corporation
in which it holds, owns and/or controls by itself or jointly with one or more
Government owned or controlled corporations of at least seventy-five (75%) of
the issued and outstanding shares of stock entitled to vote, when specifically
authorized by the President of the Philippines, is hereby authorized to
contract loans, credits, in any convertible foreign currency or capital goods,
and indebtedness from time to time from foreign governments, or any
international financial institutions or fund sources, or any other entities, on
such terms and conditions it shall deem appropriate for the accomplishment of
its purposes and to enter into and execute agreements and other documents
specifying such terms and conditions.
“The Republic of the Philippines,
through the President of the Philippines or his duly authorized representative,
may guarantee, absolutely and unconditionally, as primary obligor and not as
surety merely, the payment of the loans, credits and indebtedness secured by
the
Company or any of its affiliate
corporations, as provided above, which may be over and above the amount which
the President of the Philippines is authorized to guarantee under Republic Act
Numbered Sixty One Hundred Forty-Two, as amended, as well as the performance of
all or any of the obligations undertaken by the
Company or its affiliate corporations in the
territory of the Republic of the Philippines pursuant to loan agreements
entered into with foreign governments or any international financial
institutions or fund sources.
“The loans, credits and indebtedness
contracted under this subsection and the payment of the principal, interest and
other charges thereon, as well as the importation of machinery, equipment,
materials, supplies and services, by the
Company
and or any of its affiliate corporations as defined herein, paid from the
proceeds of any loan, credit or indebtedness incurred under this Act, shall
also be exempt from all direct and indirect taxes, duties, fees, imposts, and
all other charges and restrictions, including import restrictions previously
and presently imposed, and to be imposed by the Republic of the Philippines, or
any of its agencies and political subdivisions.”
SEC.
2. Section 15 of
Presidential
Decree No. 334, as amended, is hereby further amended to read as follows;
“SEC. 15. Privileges
and Incentives. – The
Company shall be entitled to all the
incentives and privileges granted by law to private enterprises engaged in
petroleum or oil operations.
“In addition the company shall be
exempt from all taxes, duties, fees, imposts, and all other charged imposed
directly or indirectly by the Republic of the Philippines, its provinces,
cities, municipalities and other government agencies and instrumentalities: Provided,
That the
Company’s affiliate corporations
as provided in SEC.tion 13 hereof, as amended, shall be exempt only from all
taxes, duties, fees, imposts, and all other charges imposed directly or
indirectly by the Republic of the Philippines, its provinces, cities,
municipalities and other government agencies and instrumentalities, on
importations of aircrafts, vessels, tankers, barges and other floating
structures, including any machinery, engines, motors, equipment, spare parts
and materials thereof.
“Other government offices and other
government-owned or controlled corporations shall extend whatever assistance
may be needed by the
Company or any of
its affiliates and subsidiaries, including the details of its officials and
employees to the
Company or any of its
subsidiaries on full time or part time basis under arrangements satisfactory to
the
Company or any of its subsidiaries
and the other government office or corporation concerned. Said officials and employees, as well as the
directors of the
Company and its
affiliates and subsidiaries, may receive allowances and other emoluments,
notwithstanding the provision of any law to the contrary.
“The employees of the
Company shall be entitled to all the
retirement and insurance benefits and leave privileges of government employees. However, subsidiaries of the
Company organized to undertake purely
business ventures shall not as a matter of right, be subject to the provisions
of the
Government Service and Insurance System,
as provided for under R.A. 186, as amended, as well as to many law, executive
orders and decrees relating to leave of absences, retirement privileges,
regular working hours, and other government employee benefits.”
SEC.
3. This Decree shall be effective as of
the date of the effectivity of Presidential Decree No. 334.
Done
in the City of
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