HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

FIFTEENTH CONGRESS
First Regular Session

House Bill__ 3292

Introduced by Honorable Imelda Romualdez Marcos

EXPLANATORY NOTE

This bill seeks to ensure the successful fulfillment of the Philippine Government's
commitment to attain the Millennium Development Goals by setting up the structure
and program that will identify gaps and shortcomings in existing programs and
providing the institutions and resources that will be needed in response thereto.

The Philippine Government is one of the Unite nations member countries that
committed to attain the eight-point Millennium Development Goals adopted at the
2000 UN Millennium Summit in Paris.

Pursuant to its commitment and guided by the nature and culture of the country
and our people, the Philippine Government has pursued programs, projects, initiatives
and activities that will enable it to meet the development goals it has committed to.
Indications are these efforts would succeed better, more sustainably and permanently
even after the 2015 deadline if necessary steps are taken to address shortfalls and
shortcomings of existing efforts, particularly the adoption of called-for legislation, and
setting up of necessary programs and institutions to fill the gaps and address the
identified shortcomings to bring about happiness and fulfillment of our country’s
aspirations and dreams of our people.

This bill seeks to attain these needs by setting up the institution for this purpose
and giving it the appropriate policy guidelines, powers, authorities, responsibilities and
accountability to fulfill its assigned tasks and thereby help ensure that the Millennium
Development Goals for the country to which the Government has committed itself to
attain are indeed attained and institutionalized for sustainability and permanence
beyond the 2015 MDG deadline.

To address the usual problems of inadequate resources, this bill seeks to mobilize
some 10 billion dollars in a mutual fund subscription campaign till 2015 from Overseas
Filipino Workers (OCW), in the Bayan Mo, Bayan Ko, Mahalin Natin fund
campaign.

Given the urgency of the situation with 2015 looming within the next half-decade,
immediate approval of this bill is earnesily recommended.

— rs

IMELDA ROMUALDEZ MARCOS
28? District , [locos Norte


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

FIFTEENTH CONGRESS
First Regular Session

House Bill 3252

Introduced by Honorable Imelda Romualdez Marcos

AN ACT CREATING THE PHILIPPINE MILLENNIUM DEVELOPMENT
FUND, APPROPRIATING FUNDS THEREFOR AND
FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Short Title. This Act shall be known as the “Philippine Millennium
Development Fund Law of 2010”.

SECTION 2. Declaration of Policy. It is hereby declared the policy of the State:

(a) To promote and attain the welfare of its people as specified in the Philippine
Constitution in all areas of national life;

(b) To fulfill its national obligations as a responsible member of the family of
nations by its membership in the United Nations; and

:) To attain the commitments it has made to the Millennium Development Goals
To which it committed when it attended and ratified the 2000 UN Millennium Summit
in Paris.

SECTION 3. Creation of the Philippine Millennium Development Fund. ‘To
carry out the above-declared State policy, there is hereby created the Philippine
Millennium Development Fund, also referred to herein as the Fund.

‘The Fund shall be a body corporate, with principal office in Metro Manila, but
Its Board may hereafter establish branches/offices elsewhere in the Philippines or in
any foreign country as it shall deem necessary.

SECTION 4. Sources of Funds. — The Fund shall have the following sources of
public and private funds:


(a) Contributions from PAGCOR equivalent to FIVE HUNDRED MILLION
PESOS (PhP500,000,000) annually;

(b) Contributions from PCSO equivalent to ONE HUNDRED MILLION PESOS
(PhP100,000,000) annually;

(c) Proceeds from bonds and other investment fund subscription alternatives,
such as but not limited to, a mutual fund subscription campaign exclusively
targeting the OFWs, the Bayan Mo, Bayan Ko, Mahalin fund campaign.

(d) Local and foreign donations, gifts, charities and similar joint undertakings;

ant
(©) Global partnerships through bilateral and multilateral agreements with
foreign states and international organizations.

SECTION 5. Corporate Functions and Powers. - The Fund shall have the
powers and functions specified in this Act and the usual corporate powers:

(a) To pursue the attainment of the Millennium Development Goals by 2015 and
sustain and even improve the levels of achievement beyond said target year;
(b)To catalyze public-private investment cooperation in Millennium
development goal programs through joint venture projects and similar mode

of cooperation;

(c) To provide micro-finance livelihood initiatives through the rural banks,
private development banks, credit cooperatives and other community-based
financial conduiting;

(@) To support local government projects on Millennium Development goals with
special emphasis on barangay level self-sustaining education, health and
livelihood projects;

(e) To prepare a national strategy for barangay-based Millennium Development
implementation plans utilizing CBMS and Geographic Information System
(GIS);

() To make policies and guidelines, as well as adopt, amend and rescind such
rules and regulations as may be necessary to carry out the provisions and
purposes of this Act;

(g) To acquire, utilize, or dispose of, in any manner recognized by law, real or
personal properties to carry out the purposes of this Act;

(h)To set up its own accounting and computer systems; to conduct continuing
statistical studies and valuations to determine the financial viability of the
Fund and its projects; to require reports, compilations and analysis of
statistical and economic data, as well as make such other studies and surveys
as may be needed for the proper administration and development of the
Fund;

(i) To have the power of succession; to sue and be sued; to adopt and use a
separate seal;

(j) To enter into and carry out contracts of every kind and description with any
person, firm or association or corporations, domestic or foreign;

() To borrow funds from any source, private or government, foreign or
domestic;

() To invest, own or otherwise participate in equity in any establishment, firm or
entity; to form, organize, invest in or establish and maintain a subsidiary or
subsidiaries in relation to any of its purposes;


(m) To accept and/or grant, donations in any form, from/to any entity, private
or government, domestic or foreign;

(n) To acquire equipment, supplies, medical commodities (drugs, machines, etc),
and raw materials by outright purchase or lease or rent from, as well as
contract services or the undertaking or development projects to any person or
entity, domestic or foreign, private or government, with or without bidding as
the Board may deem reasonable and proper;

(0) To issue bonds, promissory notes, debentures, certificates of indebtedness
and other debt instruments in local and foreign currency; provided that the
bonds, promissory notes, debentures, certificates of indebtedness and other
debt instruments issued in local or foreign currency shall be at such interest
rates, maturities and other terms and conditions as the Fund may determine;
provided further that the debt instruments shall be fully exempt, both as
the principal and interest, from any and all taxes imposed by the government
or any of its subdivision; and provided finally that the debt instruments
shall be fully negotiable and shall be unconditionally guaranteed both as to
principal and interest by the Government of the Republic of the Philippines,
which guaranty shall be indicated on the face thereof.

(p) To exercise such powers and perform such acts as may be necessary, useful,
incidental or auxiliary to carry out the provisions of this Act.

SEC. 11. Board of Trustees. - The powers and functions of the Fund shall be exercised
by a Board of Trustees composed of a Chairman to be appointed by the President of the
Philippines from the private sector for a fixed term of six years, the incumbent President
of the Rural Bankers Association of the Philippines, the incumbent President of the
Governors League of the Philippines, the incumbent President Liga ng mga Barangay,
and the Director-General, NEDA, the Secretary of Finance, the Secretary of DOLE, and
the Executive Director of the Fund, as ex officio members.

The private sector members of the Board shall receive a per diem and reasonable
transportation and representation allowance at par with other private financial
institutions, while the government (ex officio) members shall receive per diem and
reasonable transportation and representation allowance at par with other government
financial institutions as may be provided for by the Board of Trustees.

SEC. 12. Powers of the Board. - The Board shall have the following powers:

(a) To formulate policies, plans, projects, rules and regulations to carry out
effectively the functions of the Fund under this Act;

(b) To prescribe and amend the By-Laws of the Fund;
(c) To direct operations, management and administration of the Fund;
(d)To authorize expenditures of the Fund in the interest of effective

administration and operations; to adopt from time to time the budgets
for said purposes;


() To approve appointments of personnel; fix and authorize payment of
salaries, allowances, per diems, honoraria and other remunerations or
emoluments of the members of the Board, Chairman, Executive
Director, other officers and personnel; and

(f) To exercise such other powers as may be necessary to carry into effect
the powers and accomplish the purposes for which the Fund is
established.

SEC, 13. Rule-Making Power. - The Board of Trustees is hereby authorized to make and
change needful rules and regulations, which shall be published in accordance with law
or at least once in a newspaper of general circulation in the Philippines, to provide for,
but not limited to, the following matters:

(a) The effective administration, custody, development, utilization and
disposition of the proceeds from the investment/bond flotation
component of the Fund or parts thereof, including payment of amounts
credited to subscribers/investors or to their beneficiaries or estates;

(b) Extension of coverage of the investment/bond flotation component of
the Fund to other working groups;

(c) Fund earnings and their distribution, investment and/or plowing back
for the exclusive benefit of the subscribers/investors; and

(d) Other matters that, by express or implied provisions of this Act, shall
require implementation by appropriate policies, rules and regulations.

SEC. 14. Powers and Duties of Chief Executive Officer. - The Executive Director of the
Fund shall execute and administer the policies and resolutions approved by the Board of
‘Trustees, prepare its agenda and direct and supervise the operations and management
of the Fund. Subject to the approval of the Board, said officer shall appoint and assign
the personnel of the Fund, remove, suspend or otherwise discipline them for cause and
prescribe their duties and qualifications. ‘The Executive Director shall likewise represent
the Fund in all dealings with offices, agencies and instrumentialities of the government
and other entities, public or private, domestic or foreign.

SEC. 15. Money Investments. - All moneys of the Fund as are not needed to meet
current administrative and operational requirements, shall be invested with due and
prudent regard for its safety, growth and liquidity needs.

SEC. 16. Tax Benefits. - Notwithstanding any provisions of existing law, decree,
executive or administrative order, rule or regulation to the contrary, the Fund and all its
assets, collections, receivables and increments as well as all distributions therefrom,
whether of contributions, ratable income of the Fund, or dividends paid or received by
the subscribers/investors thereof, or their heirs/beneficiaries, shall be exempt from the
payment of any and all forms of taxes, assessments and other charges, including but not
limited to all charges imposed under the Tariff and Customs Code of the Philippines, all


income taxes, all import duties, compensating taxes and advance sales tax, and wharfage
fees on foreign goods imported for its operations. All such subscription/dividend
payments shall not be liable to attachment, garnishment, levy or seizure by or under any

legal or equitable process whatsoever, either before or after receipt by the persons
entitled thereto.

SEC. 17. Administration Costs. - The Fund shall bear the costs of its administration and
development, in such amounts and/or limits as the Board of Trustees may deem
appropriates provided that only the funds sourced from contributions of the PAGCOR
and PCSO shall be utilized for this purpose.

SEC. 18. Audit. - The Chairman of the Commission on Audit shall act as the ex-officio
auditor of the Fund and, accordingly, is empowered to appoint a representative and
other subordinate personnel to perform and report on such audit duties, subject to the
approval of the Board of Trustees and without prejudice to the power of the Board of
Trustees to contract for another mode of independent audit service, in addition to that
provided by the Commission on Audit.

SEC. 19. Legal Counsel. The Board of Trustees shall create the position of General
Counsel who shall be the Legal Counsel of the Fund. The General Counsel shall furnish
such legal opinions, advice, counsel and representation as shall from time to time, be
required by the Board of Trustees. In the performance of these duties, the General
Counsel shall coordinate with the Office of the Government Corporate Counsel and is
hereby authorized to use the staff of the Fund, and with the approval of the Executive
Director, to retain outside counsel in accordance with policies established by the Board
of Trustees.

SEC. 20. Reports. The Fund shall submit annual report to the President of the
Philippines, the Senate President and the Speaker of the House of Representatives
within the first quarter of the year.

SEC. 21. Sunset Review. Every year after the effectivity of this Act, Congress shall
conduct a sunset review to determine whether or not its performance, impact or
accomplishment with respect to its mandates merits its continued existence. Such
review shall be undertaken by the Special Committee on Millennium Development
Goals and the Committee on Government Enterprises and Privatization of the House of
Representatives and the Committee on Government Corporation and Public Enterprise
of the Senate of the Philippines.

SEC. 22. Separability Provisions. If for any reason, any provision of this Act, or the
application thereof to any person or circumstances, is held invalid, the remaining
provisions not affected thereby shall continue to be in full force or effect.

SEC. 23. Effectivity. This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in at least two (2) newspapers of general circulation.