SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
S.B. No.420 
'13 
JUL -3 P 6 :37 
R 
Introduced by SENATOR FERDINAND R. MARCOS, JR. 
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 / 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 Herculean 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 / 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 mandates, 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 Corporations and Public Enterprises of the 
Senate of the Philippines shall undertake such review. 
In view of thereof, the passage of this bill is earn stly requested. 
FERDINA D R? MARCOS, JR 


..irrmh' 
SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
d}H,:t tlf t~p .~,!,\lt'htf¥ 
"13 
JUL -3 P 6 :37 
SENATE 420 
S.B.NO._ 
Introduced by SENATOR FERDINAND R. MARCOS, JR. 
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 20 13". 
State: 
SECTION 2. Declaration of Policy. It is hereby declared the policy of the 
(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 sholl have the following sources: 
(a) Contributions from PAGCOR 
equivalent to FIVE HUNDRED MILLION 
PESOS (PhP500,000,000) annually; 
(b) Contributions from PCSO equivalent to ONE HUNDRED MILLION PESOS 
(PhP 1 00,000,000) 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: 
(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 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; 
(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 
govemment, 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. 
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 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 of 
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 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. 
SECTION 8. Rule-Making Power. - The Board of Trustees is hereby 
authorized to issue rules and regulations, which shall be published in 
accordance with law for 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. 
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 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. 


· . 
. ' . 
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 
complete publication in the Official Gazette or in at least two (2) nevyspapers of 
general circulation. 
Approved.