R.A. 1345

REPUBLIC ACT No. 1345

AN ACT CREATING THE NATIONAL MARKETING CORPORATION AND DISSOLVING THE PRICE STABILIZATION CORPORATION, APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES.

Section 1. Declaration of Policy. It is hereby declared to be the policy of Congress to assist Filipino retailers and businessmen by supplying them with merchantable goods at prices that will enable them to compete successfully in the open market so that they may have greater participation in the distribution system of our economy. In order to do this, it is necessary that a government corporation be created for the purpose of engaging in the activities of procurement, buying and distributing merchantable goods to Filipino retailers and businessmen not for the purpose of making profit but to render an essential public service in order to promote the social and economic welfare of the Nation.

Section 2. Name and Duration. There is hereby created a private corporation under the name of the "National Marketing Corporation" which, in short, shall be known as the "NAMARCO." The Corporation shall exist for a period of twenty-five years from the effective date of this Act.

Section 3. Principal Office. The Corporation shall have its main office and principal place of business in the City of Manila or Quezon City, but may establish such branches and agencies in other places, within and outside the Philippines, as may be necessary for the proper conduct of its business.

Section 4. General Powers. The NAMARCO is hereby authorized to exercise the following general powers:

Section 5. Special Powers. The NAMARCO is authorized and directed;

Section 6. Capitalization and Revolving Fund. (a) The NAMARCO shall have an authorized capital of thirty million pesos to be subscribed entirely by the Republic of the Philippines and to be paid out of any general fund in the National Treasury, as follows:

Section 7. Board of Directors Composition, Appointment and Compensation. The corporate powers of the Corporation shall be vested in and exercised by a Board of Directors of seven members, consisting of the Secretary of Commerce and Industry, as ex officio Chairman, and six members who shall be appointed by the President of the Philippines, with the consent of the Commission on Appointments. The said members shall serve as designated by the President of the Philippines in their appointments for terms of one to three years, respectively, from the date they qualify and assume office; but their successors shall be appointed for terms of three years, except that any person chosen to fill a vacancy shall serve only for the unexpired term of the member he succeeds.

The Board shall hold regular weekly meetings and such number of special meetings as may be called by the Chairman or any three members from time to time. For attendance at meetings, each director shall receive a per diem of twenty-five pesos: Provided, That no member of the Board shall receive more than two hundred pesos as per diems a month.

Section 8. Powers and duties of the Board of Directors. The Board of Directors shall have the following powers and duties:

Section 9. Suspension and removal of Directors. Any member of the Board of Directors may be suspended or removed by the President of the Philippines, upon the recommendation of the Chairman of the Board of Directors.

Section 10. Prohibition for Board members. No Chairman or member of the Board of Directors of the Corporation shall at the same time serve in the Corporation in any capacity whatsoever other than Chairman or Member thereof.

Section 11. The General Manager and members of the Board of Directors of the Corporation shall not intervene, directly, or indirectly, in the management or control of any private enterprise which in any way may be affected by the functions of their office; nor shall they, directly or indirectly, be financially interested in any contract with the Corporation or in any business activity that may be benefited by the operations of the Corporation.

Section 12. Managing Head. The management of the Corporation shall be vested in the General Manager.

Section 13. Powers and Duties of the General Manager. The General Manager shall have the following powers and duties:

Section 14. Appointment and Promotion, basis. In the appointment and promotion of officers and employees, merit and efficiency shall serve as bases and no political test or qualification shall be prescribed and considered for such appointments or promotions. Any person appointed by the General Manager in violation of the above provision shall be removed from the service by the Board of Directors.

Section 15. Organizational Operation. The Corporation shall be organized along the following setup:

In addition, the General Manager shall have the following specified staff offices to assist him in his work:

Section 16. General Provisions. (a) Obligations issued by the NAMARCO in accordance with the authority of paragraphs (c) and (e) of section five of this Act shall be secured by the assets of the NAMARCO, including all securities held by it under the provisions of this Act. These obligations shall be redeemable at the option of the NAMARCO at or before maturity and in such manner as may be stipulated therein and shall bear such rate of interest as may be fixed by the NAMARCO. The NAMARCO shall provide for appropriate reserves for the redemption or retirement of such obligations. Obligations issued and offered for sale by the NAMARCO may be offered at such price or prices as the NAMARCO may determine. The said obligations shall and are hereby fully and unconditionally guaranteed both as to principal and interest by the Government of the Republic of the Philippines, and such guaranty shall be expressed on the face thereof.

Section 17. Penal Provisions. (a) No officer or employee of the NAMARCO nor any government official who may exercise executive or supervisory authority over the said NAMARCO, either directly or indirectly, for himself or as the representative or agent of others, shall become a guarantor, indorser, or surety for credits from the NAMARCO to others. Any such officer or employee who violates the provisions of this section shall be immediately removed by competent authority and said officer or employee shall be punished by imprisonment for not less than one year nor exceeding five years and a fine of not less than one thousand nor more than five thousand pesos.

Section 18. Transitory Provisions. (a) The NAMARCO shall retain the existing regional provincial sales organization of the Price Stabilization Corporation (PRISCO): Provided, however, That as sales and distribution methods are changed or improved, any such outlets could be eliminated: Provided, further, That there shall be in each province at least one provincial sales organization or agency.

Section 19. Miscellaneous Provisions. (a) All Acts or Executive Orders, Administrative Orders and Proclamations or part thereof inconsistent with any of the provisions of this Act are hereby repealed or modified accordingly;

Section 20. Effectivity. This Act shall take effect upon its approval.

Approved: June 17, 1955.