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NINETEENTH CONGRES S
First Regular Session
HOUSE BILL NO.
INTRODUCEI) BY REP.
5236
SANCH0 FERNANDO "ANDO" F. OAMINAL
EXPLANATORY NOTE
This bill seeks to establish a special economic zone in  the  Second District of Misamis
Occidental covering its two (2) cities namely: Ozamiz and Tangub and five (5) municipalities,
namely:  Bonifacio,  Clarin,  Don Victoriano  Chiongbian,  Sinacaban and Tudela with Ozamiz
City  as  the  principal  site  and  office  to  promote  and  hasten  industrial,  economic,  and  social
development in the area.
TheSecondDistrictofMisamisOccidentalislocatedinthesouthempartoftheProvince
of Misamis Occidental  and is boundcd  in the north by the first district; on the east, by Iligan Bay,
separating the district from the two(2) geographically proximate cities that are lligan and Cagayan
de Oro; on the south, by  Panguil Bay; and on the west, the provinces of zanboanga del Sur and
Zamboanga del  Norte.  The  district  occupies  a  strategic  geographical  location  which  makes  it  an
attractive and profitable hub for investment and tourism in the area.
The  District  is  also  blessed  with  rich  agricultural  and  forest  lands,  mineral  and  marine
resources and  scenic  tourist  spots.  It has  a steady  supply  of safe and potable  water from  its  mountain
springs.  It has a typhoon-free climate,  favorable peace and  order condition  and good  infrastructure and
utilities.  Ozamiz City has good harbor location, its port is the principal outlet of mineral, agricultural,
forest  and marine products  of Misamis Occidental   and of the provinces  of Zamboanga dcl  Sur and
Zamboanga del  Norte.  The City  also has a modem and well-quipped airport in Barangay I.abo.  The
district has also other necessary infrastructures such as roads, ports, and communication facilities.
Possessed   with  these  inherent  factors  of  development,   the  estal)1ishment  of  the  special
economic  zone  in the  Second  District  ofMisamis  Occidental will enable the exploration, development,
and utilization of natural resources  of the area,  create more employment opportunities, especially in
and around the zone and encourage legitimate and productive foreign investments in  one of themost
promising areas  of the country.  The  establishment of the special  economic zone will  bring  tremendous


gr"®¥eeu;jg;#:;fafr:p;#t:;tiitrp8
NINETEENTH CONGRES S
First Regular Session
HousE'=i`ii`.ilo.5236
INTRODUCHD BY REP. SANCH0 FERNANDO "ANDO" F. OAMINAL
ANACT
ESTABLISHING THE MISAMIS OCCIDENTAL SPECIAL ECONOMIC ZONE IN
THE SECOND DISTRICT 0F THE PROVINCH 0F MISAMIS OCCIDENTAL AND
APPROPRIATING FUNDS THHREFOR
Be  it  e.n.ac.ted  by  the  Senate  and  House  of R!epresentatives  Of the  Philippines  in Congress
assembled:
SECTION  1.    Sfeorr  ri.£/c.  ~ This Act  shall  be  known  as  the  "Misamis  Occidental
Special Economic Zone Act ."
SEC.  2.    Doc/¢rafl.o„  a/PoJI.cj7.  -It  is  hereby  declared the  policy  of the  State  to
encourage  and promote  the  attainment  of a  sound  and  balanced  industrial,  economic  and
social  development in the country through the promotion of private enterprises.     Towards
this end, the State shall endeavor to establish special economic zones in suitable and selected
areas  in the  country  where  enterprises  will  be  given  incentives  to  create  an  envirorment
conducive to business.  This shall be the means to attract local and foreign investors, generate
employment opportunities, and encourage the regional dispersal of industries.
SEC.  3.    jl4IJOCC fpecJ.a/ Ecomo#tl.c Zo"c.  -  In  accordance  with  the  foregoing
policy, there is hereby established a special economic zone in the Second District of Misamis
Occidental   covering   its   two   (2)   cities,   namely:   Ozamiz   and   Tangub,   and   five   (5)
municipalities,  namely:     Bonifacio,  Clarin,  Don  Victoriano  Chiongbian,   Sinacaban  and
Tudela with Ozamiz City as the principal site and office of the ECOZONE to be known as


the  Misamis  Occidental    Special  Economic  Zone,  hereinafter referred  to  as  the  MISOCC
ECOZONE.    The  specific  metes  and  bounds  of the  NISOCC  ECOZONE  shall  be  more
particularly defined in a presidential proclamation that shall be issued for this purpose.
SEC.  4.   Govc"!.J®g PrJ.„cJP/es. - The NISOCC ECOZONE  shall be managed and
operated under the following principles:
a)          Within the framework and limitations of the constitution and the applicable
provisions of the Local Government Code, the MISOCC ECOZONE shall be developed into
a   decentralized,   self-reliant   and   self-sustalning   agro-industrial,   commercial,   financial,
investment and tourist center with  suitable retirement and residential areas.   The MISOCC
ECOZONE  shall  be  provided with transportation, telecommunications,  and other facilities
needed to attract legitimate and productive local and foreign investments,  generate  linkage
industries and employment opportunities for the people of Msamis Occidental, partjcular]y
the second district of the Province, and its neighboring towns, cities and provinces;
b)        The   MSOCC   ECOZONE   may   establish   mutually   beneficial   economic
relations with other entities within the country, or subject to the administrative guidance of
the Department of Foreign Affairs and the Department of Trade and Industry  with foreign
entities or enterprises;
c)          Foreign   citizens   and   companies   owned   by   non-Filipinos   in   whatever
proportion may  set up enterprises in the  MISOCC  ECOZONE,  either by themselves or in
joint  venture  with  Filipinos  in  any  sector  of industry,  I.ntemational  trade  and  commerce
within the NISOCC ECOZONE;
d)         The  MISOCC  ECOZONE  shall  be  managed  and  operated  as  a  separate
customs territory to ensure and facilitate the free flow,  entry,  and movement of machinery
and other goods.   However,  exportation or removal  of goods, articles and capital from the
zone to  other parts  of the Philippine territory  shall  be  subject to  customs  duties and  taxes
under the Customs and Tariff Code and other relevant tax laws of the Philippines.  It shall be
2


vested  with  the  authority  to  issue  certificates  of  origin  for  products  manufactured  or
processed in the MISOCC ECOZONE in accordance with prevailing rules of origin, and the
pertinent  regulations  of the  duly  recognized  national  bodies  tasked  to  oversee  all  other
ecozones in the country;
e)          Duty free shops shall be located only within the MISOCC ECOZONE;
I)          Business establishments operating within the   MISOCC ECOZONE shall be
entitled to the existing fiscal incentives as provided for under Presidential Decree No. 66, the
law  creating the  Export  Processing  Zone  Authority,  or those  provided  under Book  VI  of
Executive Order No.  226,  otherwise known as the Omnibus Investment Code of 1987, and
such incentives, benefits or privileges presently enjoyed by business establishments operating
within the Subic Special Economic Zone pursuant to Republic Act No. 7227;
g)          Any   provision   of   existing   laws,   rules   or   regulations   to   the   contrary
notwithstanding, no taxes, local and national  including final withholding taxes on dividends
to the parent company and remittances of profits generated by a branch to the head office of a
business  establishment  shall  be  imposed  on  business  establishments  operating  within  the
MISOCC ECOZONE.   In lieu of all  local  and national taxes,  said business  establishments
shall pay to the National Government a final tax of eight per centum (8%) of their net taxable
income  as  determined in accordance  with the  provisions  of the National  Internal Revenue
Code, as amended, to be divided as follows:
Three per centum (3%) shall accrue to the National Government;
Two per centum (2%) to the Second District of Misamjs Occidental;
One per centum (1%) to be shared by the cities and municipalities affected by
the  declaration  of the  NISOCC  ECOZONE  in  proportion  to  their  income  from  business
activities within the MISOCC ECOZONE; and
4.           Two  per  centum  (2%)  to  the  MISOCC  Special  Economic  Zone  Authority
which shall be created under this Act:   ProvJ'cJec7, That the final tax of eight per centurn (8%)
3


of net income may be increased by the President of the Philippines after ten years from the
effectivity of this Act upon the recommendation of the Secretaries of Finance and Trade and
Industry,   the   Chairman   of  the   National   Economic   Development   Authority   and   the
administrator of the MISOCC Special Economic Zone Authority:   Prov7.dec7, /2tr/foer, That in
nocaseshallthefinaltaxtobeimposedexceedfifteenpercentum(15%)ofnetincome.
In case of conflict between local and national tax laws on the one hand, and the tax
incentives  herein granted on the  other, the  same  shall  be resolved in favor of the  grant of
incentives.
h)         Except as  otherwise  provided  herein,  the  local  government  units  embraced
within the MISOCC ECOZONE shall retain and maintain their basic autonomy and identity.
The MISOCC ECOZONE  shall operate and function in accordance with Republic Act No.
7160,otherwiseknownastheLocalGovemmentCodeof1991;
i)           Any   foreign   investor   who   establishes   a   business   enterprise   within   the
MISOCC ECOZONE and who maintains capital investment of not less than One Hundred
Fifty  Thousand United  States Dollars (US$150,000)  shall be granted, along with his or her
spouse,  dependents  and  unmarried  children  below  twenty-one  years  of age,  a  permanent
resident status within the MISOCC ECOZONE;
Such  foreign  investor  and  his  or  her  spouse,  dependents  and  urmarried  children
below the age of twenty-one (21 ) years, shall have freedom of ingress and egress to and from
the  MISOCC  ECOZONE  without  need  of any  special  authorization  from  the  Bureau  of
Immigration.
Likewise, the M[SOCC  Special Economic Zone Authority shall issue  working visas
renewable  every  two  (2)  years  to  foreign  executives  and  foreign  technicians  with  highly
specialized skills which no Filipino possesses,  as certified by the Department of Labor and
Employment.
4


The names of the foreigners granted pemanent resident status and working visas by
the  MSOCC   Special   Economic  Zone  Authority   shall   be   reported  to  the  Bureau  of
Immigration within thirty (30) days from such grant.
The foregoing is without prejudice to a foreigner acquiring permanent resident status
in the Philippines in accordance with applicable immigration, retirement, and other related
laws.
j)           The  provisions  of any  law  to  the  contrary  notwithstanding,  any  foreigner,
partnership, corporation, or any other business association not created  and existing under the
laws  of the  Republic  of the  Philippines,  engaged  in  the  business  of retailing  goods  and
merchandise,   shall  be  permitted  to  engage  in  such  retail  trade  within  the     MISOCC
ECOZONE  after  securing  license  for that  puipose  from  the  MISOCC    Special Economic
Zone Authority:   Prov7.decJ, That only foreign nationals engaged in medium and large-scale
retail trade may be permitted to engage in such business within the   NISOCC ECOZONE.
The  determination  of  the  medium  and  large   scale  retail  trade  operation  shall  be  the
responsibility of the MISOCC Special Economic Zone Authority; and
k)          Existing  banking  laws  and  Bangko  Sentral    ng  Pilipinas  (BSP)  rules  and
regulations  shall  apply  on foreign exchange and other current account trade and non-trade
transactions, local and foreign borrowings, foreign investments, establishment and operation
of local and foreign banks, foreign currency deposit units, offshore banking units and other
financial   institutions  under  the  supervision  of  the  BSP:     Provj.Jec7,   foowever,  That  the
MISOCC   Special Economic Zone Authority may, in coordination with the Bangko Sentral
ng Pilipinas  and the Department of Trade  and Industry,  adopt more  liberal  rules to  attract
offshore  banking,  financial  services,  trust  or  trading  institutions  to  operate  in  the  zone:
Provf.c7ec7, /#r/Acr,  That such  rules  if adopted will  be  deemed  to  repeal,  modify  or  amend
existing   legislation   on   offshore   banking,   flnance,   financial   services,   trust   or   trading
institutions insofar as the  r\AISOCC ECOZONE is concerned.
5


EEC. 5.  MISOCC  Special Economic Zone Authority. -Shoject to the co"c;uITence
of  the  local  government  units  that  will  be  affected  by  the  creation  of  the  MISOCC
ECOZONE, there is hereby created a body corporate to be known as the NISOCC  Special
Economic Zone Authority, hereinafter referred to as the Authority, which shall manage and
operate the MISOCC ECOZONE, in accordance with this Act.  It shall be organized within
one hundred eighty (180) days after the effectivity of this Act.
SEC.  6.   Prj.#ci.p¢/ a/orce. ~ The Authority  shall malntain its principal office in the
City of Ozamiz, but it may establish branches and agencies within the Philippines and abroad
as may be necessary for the proper conduct of its business.
SEC.  7.    Pt7tvers ¢„d F#"ctz.our a/ £fec 4#!feo".fy.  ~ The Authority  shall  have  the
following functions:
a)          Operate,  administer,  and manage the NISOCC ECOZONE according to the
principles and provisions set forth in this Act;
b)         Recommend to the president the issuance ofa proclamation to fix and delimit
the site of the MISOCC ECOZONE;
c)          Register, regulate and supervise the enterprises in the MSOCC ECOZONE in
an efficient and decentralized manner;
d)         Regulate  and  undertake  the  establishment,  operation  and  maintenance  of
utilities, other services and infrastructure in the  MSOCC ECOZONE such as heat, light and
power,  water  supply,  telecommunications,  transport,  toll  roads  and  bridges,  port  services,
etc., and fix just, reasonable and competitive rates, fares, charges and prices therefor;
e)          Directly negotiate with and grant foreign or intemational airlines and carriers
entry permits and landing rights into the zone;
I)          Have sole, absolute and exclusive authority to construct, acquire, own, lease,
assign,  establish,  operate and maintain on its own  or through others by virtue of contracts,
franchises, licenses, or permits under any of the schemes allowed in Republic Act No. 6957,
6


otherwise  known  as  the Build-Operate  Transfer  Law,  or  in joint  venture  with the  private
sector without the necessity  of conducting public bidding thereon, any  or all of the public
utihties and infrastructure required or needed in the   NISOCC ECOZONE, such as but not
limited to transportation, construction of road networks, water and sewerage systems, electric
power, wireline and wireless telecommunications systems, networks, facilities and services,
in coordination with appropriate  national and local government authorities and in conformity
with applicable laws thereon;
g)         To undertake all public infrastructure and utility projects within the MSOCC
ECOZONE  and  as  provided  for  I.n  this  Act  and  to  contract  foreign  loans  and  grants  in
accordance with existing laws;
h)          Operate on its own, either directly or through a subsidiary entity, or license to
other  tourism  related  activities,  including  games,  amusements  and  recreational  and  sports
facilities to provide, in cooperation with the Department of Tourism, incentives to tourism-
re]ated businesses operating within the MISOCC ECOZONE  such as but not limited to duty-
free buying privileges for non-resident visitors;
i)           Within  the  limitation  provided  by  law,  to  raise  or  borrow  adequate  and
necessary funds from local or foreign sources to finance its projects and programs under this
Act, and for that purpose to issue bonds, promissory notes, and other forms of securities, and
to secure the same by a guarantee, pledge, mortgage, deed of trust, or an assignment of all or
part of its property or assets;
j)          Provide   security   for  the   MSOCC   ECOZONE   in   coordination   with  the
national and local governments.   For this purpose, the Authority may establish and maintain
its own security force and firefighting capability or hire others to provide the same;
k)          Protect,  preserve,  maintain  and  develop,  among  others,  the  virgin  forests,
beaches,  coral and coral reefs and minerals and mineral deposits, including precious metals
within  the  MSOCC  ECOZONE.     For  this  purpose,  the  rules  and  regulations  of  the
7


Department of Environment and Natural Resources and other government agencies involved
in  the  above  functions  shall  be  implemented  by  the  MISOCC  ECOZONE,  including  the
issuance   of   environmental   clearance   certificates,   patents   and   leasehold   rights   over
government lands and mining, drilling and timber licenses;
I)          Acquire private real properties or rights thereon for infrastructure  and other
development  projects,  secure  rights-of-way  which  are  needed  for  said  projects  and  the
settlement  of claims  for  payment,  without  further  need  of conducting  feasibility  studies,
infomation  campaign,  engineering  surveys,  project  cost estimates  as  required by  existing
laws and regulations pertinent thereto;
in)        Charge reasonable fees for the provisions of services and the maintenance of
infrastructure and utilities;
n)          Impose fines and penalties for violat].ons of the provisions of this Act and the
rules and regulations to be issued by the Authority;
o)         Phase  the  operationalization  of  the  NISOCC  ECOZONE  by  delineating
secured areas within the MISOCC ECOZONE:   Provj.c7ecJ, That privileges including tax and
duty-free  retailing provided herein  shall  be  accorded  only to the  secured areas:    Provrc7cc7,
/ztr/feer,  That the Authority-registered enterprises  located outside  of the  secured areas may
still enjoy the income tax incentives and duty-free importation privileges here].n granted but
may not engage in tax and duty-free retailing:   Provz.cJec7, ¢7ec!//y, That in such secured area,
the component local government units may still exercise their taxing and revenue generating
authority but only insofar as persons or enterprises not registered with the Authority as zone
enterprises;
p)          Create,  operate  or contract to  operate  such agencies  and functional  units  or
offices of the Authority, as it may deem necessary;
8


q)          Adopt, alter and use a corporate seal; make contracts,leases, own or otherwise
dispose of personal or real property; sue and be sued; and otherwise cany out its functions
and duties as provided for in this Act; and
r)           Issue rules and regulations consistent with the provisions of this Act as may
be necessary to  implement and accomplish the purposes,  objectives, and policies provided
therein.
SEC.  8.  IVoil-pm#f C/!flracfer a/ffee 4#ffeortry. -The Authority shall be non-profit
and shall devote the use of its returns from capital  investments, as well as excess revenues
from its operations,  for the development, improvement,  and maintenance and other related
expenditures of the Authority to pay its indebtedness and obligations and in furtherance and
effective  implementation  of the  policy  provided  in  this  Act.    In  consonance  thereto,  the
Authority  is  hereby  declared exempt  from  the  payment of all  taxes,  duties,  fees,  imposts,
charges,  costs  and  service  fees  as  well  as  any  other  costs  and  charges  in  any  court  or
administrative proceedings in which it may be a party.
The foregoing exemptions may however be entirely or partially lifted by the President
of the Philippines upon the recommendation of the Secretary of Finance, not earlier than five
(5) years from the effectivity of this Act, if the President shall find the Authority to be self-
sustaining and financially capable by then to pay such taxes, customs duties, fees and other
charges after providing for debt service requirements of the Authority  and of its projected
capital and operating expenditures.
SEC.  9.   Bo¢rd a/ D;+ecft}rs. - The powers of the Authority  shall be vested in and
exercised  by  a  board  of directors,  hereinafter  referred  to  as  the  Board,  which  shall  be
composed of fifteen ( 15) members, to wit:
a)          The   Secretary   of  Trade  and  Industry  who   shall   serve  as  an  ex  oj#}c;o
chairperson  of the  board  of directors  and  three  (3)  other  representatives  of the  National
Government as ex officio members,
9


b)         The Administrator of the Authority, as vice-Chairperson;
c)          Two (2) representatives of the labor force from the workers in the ECOZONE;
d)          Four  (4)  representatives  from  the  business  and  investment  sectors  in  the
ECOZONE; and
e)          Four (4) representatives of the private sector coming from the residents of the
municipalities of the Second District of Misamis Occidental;
The chalrperson and the members of the Board, except the ex qorf.c;o members, shall
be appointed by the President of the Philippines to serve for a term of three (3) years, unless
sooner  removed  for  cause  or dies  or  resigns  voluntarily.    In  case  of death,  resignation  or
removal for cause, the replacement shall serve only the unexpired portion of the term.
Except for the representatives of the business and investment sectors, no person shall
be  appointed  by  the  President  of the  Philippines  as  member  of the  Board  unless  he  I.s  a
Filipino  citizen,  of good  moral  character  and  of recognized  competence  in  some  relevant
fields   of  business,  banking,   shipping,  business  or  labor  management,   port  operations,
engineering, or law.
Members of the Board shall receive a per diem of not more than Ten Thousand Pesos
(Plo,000.00)  for every  Board  meeting actually  attended:    Provj.c7ec7,  foowever,  That no  per
diem shall be pald for more than four (4) board meetings per month:  Provjc7ec7, /#rffeer, That
the President of the Philippines may fix a higher per diem for the members of the Board.
EEC.  10.    Administrator  and  Cl.iof  Executive  Oueflcer.  -  The  Presiderit  Of  the
Philippines  shall  appoint  a  full-time  professional  and  competent  administrator  and  chief
executive  officer  of the Authority  who  shall  serve  for  a term  of six (6) years  and  whose
compensation shall be determined by the Board of Directors.
S;EC. ++.   Powers and Duties Of the Adndndstrator and Chiof Executive Oif:ficer. -
The Administrator and Chief Executive Officer shall have the following powers and duties:
10


a)          Direct and manage the affairs of the Authority in accordance with the policies
of the Board;
b)          Establish the internal organization of the Authority under such conditions that
the Board may prescribe;
c)          Submit an annual budget and necessary supplemental budget to the Board for
its approval;
d)          Submit  within thirty  (30)  days  after the  close  of each  fiscal  year an  armua]
report to the Board  and such other reports as may be required; and
e)          Perform such otherduties as may be assigned to him by the Board.
SEC.12.  Jmd#sfrJ.¢/ Peace. ~ One representative each from the Department of Labor
and  Employment  (DOLE),  labor  sector,  business  and  industry  sectors  shall  formulate  a
mechanism under a social pact for the enhancement and preservation of industrial peace in
the MISOCC ECOZONE within thirty (30) days after the effectivity of this Act.
SEC.  13.    Capl.f¢JI.z¢r!.ore.  -The  MSOCC  Special  Economic  Zone  Authority  shall
have  an  authorized  capital   stock  of  two  billion  (2,000,000,000)  no  par  shares  with  a
minimum issue value of Ten Pesos (Plo.00) each.   The National Government shall initially
subscribe and fully pay three hundred million (300,000,000) shares of such capital stock.  All
unoccupied govemment~owned lands as of the creation of the MISOCC ECOZONE, falling
within its jurisdiction shall also be included as part of the equity of the Authority  and may
only be disposed of by the Authority:   P7.ovj-c7ec7, That in case of absolute sale or conveyance,
the Authority shall seek the approval of the Office of the President.
The  initial  amount necessary to  subscribe  and pay  for the  shares  of stock  shall be
included in the General Appropriations Act of the year following the enactment of this Act
and thereafter.   The Board of Directors of the Authority may, from time to time, and with the
written  concurrence  of the  Secretary  of Finance  increase  the  issue  value  of the  shares
representing the capital stock of the Authority.  The Board of Directors of the Authority, with
11


the written concurrence of the Secretary of Finance, may sell shares representing not more
than forty per centum (40%) of the capital stock of the Authority to the general public with
such annual dividend policy as the Board and the Secretary of Finance, may determine.   The
National  Government  shall  in  no  case  own  less  than  sixty  per centum  (60%)  of the  total
issued and outstanding capital stock of the Authority.
SEC.  14.  Swpem.sz.o„ ai€d Devo/#fl.oH a/F#„cfi.our. -The Authority shall be under
the  direct  control  and  supervision  of the  Office  of the  President  of the  Philippines  for
purposes of pohcy direction and coordination.
Except  as  provided  in this  Act,  all  powers  and  functions  heretofore  performed by
other national government agencies are hereby deemed reposed in the Authority, insofar as
the zone and activities therein are concerned.
SEC.15.   Relationship with the Local Governnent Units. -In c,ace of ay cor[flict
between the Authority and the  Second District of Misamis Occidental  on matters affecting
the  NISOCC  ECOZONE  other  than  defense,  security,  and  foreign  affairs  matters,  the
decision of the Authority shall prevail.
S;EC.    16.       Nomapplicability   Of   Salary    Standardiza[tion   Low    and   Revised
Conapensation and Position Classiifecation System. - The provisions o£ Requbho Act No.
6758,  otherwise known as the  Salary  Standardization Law, and the Revised Compensation
and  Position  Classification  System,  as  amended,  shall  not  apply  to  the  Authority.     The
salaries,  benefits  and  other  emoluments  of the  officers,  directors  and  employees  of the
Authority shall be commensurate to private industry standards to be determined by the board
of directors of the Authority.
SEC.17.  Rcfe"tr.o" a/E¢m!."gr. -The Authority shall retain all earnings from all its
activities,  regulatory  or proprietary,  and need not  remit the  same to the  national  treasury.
Such earnings shall be considered as corporate income which the Authority may invest in its
12


various   infrastructure   or  special   projects,   corporate  undertakings,  payment  of  salaries,
honoraria, per diems and other related matters.
SEC.  18.   4wdJ.for.  -The Commission  on Audit shall  appoint a representative  who
shall be a full time auditor of the Authority and its subsidiaries in which it controls a majority
of the shares of stock and assigns  such number of personnel as may be necessary to assist
said  representative  in  the  performance  of its  duties.  The  salaries  and  emoluments  of the
assigned auditor and persormel of the Commission shall be in accordance with pertinent laws,
rules  and  regulations.     The  Commission  on  Audit  shall  render  an  annual  report  to  the
President of the Philippines and to the Congress on the business activities, transactions and
operations of the Authority.
To  ensure  the  expeditious  implementation  of  the  economic  policy  and  purpose
embodied  in this  Act,  the  Commission  on  Audit  in  cooperation  with  the  Authority,  sha]]
formulate special rules on audit, disbursement of funds, bidding, procurement of goods and
services,  accounting,  use  of government  equipment  and  resources  and  the  like,  towards
realizing the aforesaid needs:   Prow;c7ecz, That such rules and any amendment thereto shall be
approved by the President of the Philippines.
S;EC` 19.   Injunctions, Restralndng Orders and Other lriterlocutory Orders. -The
development  of the  MISOCC  ECOZONE  is  a  National  Government  priority.     In  view
thereof, no injunctions, restraining orders and other interlocutory orders which seek to stop or
interrupt any contract entered into or project undertaken by the Authority may be issued by
any court of law or quasi-judicial body except by the Supreme Cout of the Philippines.
SEC.   20.   Sepfl!mbJ./I.a;   C!¢#se.   -   If  any   provision   of  this   Act   shall   be   held
unconstitutional or invalid, the other provisions  not otherwise  affected shall  remain in  full
force and effect.
SEC.21. Repc¢//.#g C7¢wSc.  ~ This Act amends Section  5  of Republic Act No.  7916
otherwise known as "The Special Economic Zone Act of 1995, as amended, by adding the
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Second District of the Province  of Misamis  Occidental  as  identified ECOZONE  area.  All
laws,  decrees, orders, rules and regulations, and other issuances, or parts thereof which are
inconsistent with this Act are hereby repealed or modified accordingly.
SEC. 22.  EJ7ecJJ.tJrty. ~ This Act shall take effect fifteen (15) days after its publication
in the OJJjj?cj.cz/ Gc}ze//e or in a national newspaper of general circulation.
Approved
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