FIFTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES) 
First Regular Session 
) 
SENATE 
r)!"33 
S.B.NO.~ . 
I i1 
Sf" 22 
{\1'i :16 
Introduced by SENATOR FERDINAND R. MAR"a"5§I,VJR'. ElY' - -_ 
••••• 
EXPLANATORY NOTE 
The Millennium Development Goals (MDG) are set of specific targets aimed at 
mitigating, if not totally eradicating poverty, by year 2015. 
The eight Millennium Development Goals in the National Progress Level are: 1.) 
to eradicate extreme poverty and hunger 2.) Achieve universal primary education 3.) 
Promote gender equality and empowerment of women 4.) Reduce child mortality 
5.) 
Improve maternal health 6.) 
Combat HIV I AIDS, malaria and other diseases 7.) 
Ensure environmental sustainability 8.) Global partnership for development. 
The Philippines is one of the .189 United Nations member-countries that adopted 
the Millennium Development Goals at the 2000 UN Millennium Summit in Paris. 
The country faces a Hercule'pn task in successfully implementing the MDG, and 
in fulfilling its national obligations as:responsible member of the UN. 
In order to comply with the commitments to the MDG, this bill seeks to create the 
Philippine Millennium Development' Fund. It shall be a body corporate, with principal 
office in Metro Manila, but its Board of Trustees may establish branches I offices 
elsewhere in the Philippines, or in any foreign country as it shall deem necessary. 
This bill provides, among others, the sources of Funds, which shall include 
contributions from Philippine Gaming Corporation (PAGCOR) and the Philippine Charity 
Sweepstakes Office (PCSO), proceeds for bonds and other investment fund 
subscription alternatives exclusively targeting the Overseas Filipino Workers, and 
bilateral and multilateral agreements with foreign states and international organizations. 
Under this legislative measure, every year after the effectivity of this proposed 
Act, Congress shall conduct a 'sunset review to determine whether or not its 
performance, with respect to its ma[1dates, merits its continued existence. 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 Enterprises of the Senate of the Philippines shall 
undertake such review. 
In view of thereof, the passage of this bill is earnestly requested. 
FERDINA D RfARCOS, JR 


FIFTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES) . 
First Regular Session 
) . 
. 
SENA1!s33 
. S.B. NO. __ , 
Introduced by SENATOR FERDINAND R. MARC~~!l'ff.n BV' - -
••.• ~ 
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 
(c) 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 PC SO equivalent to ONE HUNDRED MILLION PESOS 
(PhP100,000,000) annually; 
(c) Proceeds from bonds and other investment fund subscription alternatives 
exclusively targeting the OFWs; 
(d) Local and foreign donations, gifts, charities and similar joint undertakings; and 
(e) 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; 
(d) 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); 
(f) 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 suc;cession; to sue and be sued; to adopt and use a 
separate seal; 
0) To enter into and carry out contracts of every kind and description with any 
person, firm or association or corporations, domestic or foreign; 
(k) To borrow funds from' any source, private or government, foreign or 
domestic; 
(I) 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 pro.ided 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. 


SECTION 6. 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 tre 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. 
SECTION 7. 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; 
(e) To approve appOintments of personnel; fix and authorize payment of 
salaries, allowances, per diems, honoraria and other remunerations or 
emoluments of th'e 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. 
. 
SECTION 8. Rule-Making Pbwer. - 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 investmenUbond 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 implementatiol) by appropriate pOlicies, rules and regulations. 
SECTION 9. Powers and Duties of Executive Director. - 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 instrumentalities of the 
government and other entities, public or private, domestic or foreign. 


SECTION 10. Money Investments. - All monies 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. 
SECTION 11. 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 subscriberslinvestors 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. 
SECTION 12. 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 appropriate; provided that only the funds sourced from contributions of the 
PAGCOR and PCSO shall be utilized for this purpose. 
SECTION 13. 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. 
SECTION 14. 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 from time to time, 
as shall 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. 
SECTION 15. 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. 
SECTION 16. 
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. 
SECTION 17. Repealing Clause.-AII laws, presidential decrees, executive 
orders, presidential proclamations, rules and regulations or parts thereof contrary to or 
inconsistent with this Act are hereby repealed or modified accordingly. 
SECTION 18. 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. 


SECTION 19. 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. 
Approved.