Amending Certain Sections Of Republic Act Numbered Seventeen Hundred And Eighty-Nine, As Amended, Otherwise Known As The Reparations Law
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Amending Certain Sections Of Republic Act Numbered Seventeen Hundred And Eighty-Nine, As Amended, Otherwise Known As The Reparations Law
Presidential Decree No. 332
November 9, 1973
Case Overview and Summary
Summary of Presidential Decree No. 332Policy and Implementation of Reparations from Japan
- Utilize reparations payments from Japan to assure maximum economic benefit to Filipinos (Section 1)
- Reparations goods/services to be procured, disposed, and utilized according to criteria and priorities set by National Economic and Development Authority (NEDA) (Section 2a)
Capital Goods and Services
- Available only to approved government projects and Filipino citizens/entities for economic development (Section 2a)
- Private recipients limited to one application, max $1.5M value, except for vital projects approved by President after NEDA consultation (Section 2a)
- Priority given to electrification, education, cottage industries, telecommunications, mining, manufacturing, logging, shipping (Section 2a)
Non-Capital Goods
- Limited to goods not obtainable from normal imports and essential consumer/construction goods (Section 2b)
- Procured and sold through selected agency to Filipino retailers for resale to consumers (Section 2b)
Cash Payment
- $20M cash payment accrues to trust fund for WWII veterans, widows, orphans (Section 2d)
- Consumer goods procurement for trust fund done by Commission with NEDA consultation (Section 2d)
- Cash payments of $4M annually for 5 years from Special Economic Development Fund (Section 2d)
Reparations Commission
- Prepare tentative schedule of goods/services for procurement, approved by President and NEDA (Section 6a)
- Issue procurement orders specifying end-user, project, amount after schedule agreed with Japan (Section 6a-1)
- Verify end-user capacity, feasibility studies, cash down payment for private parties (Section 6a-1)
- Publish procurement orders, schedules in newspapers for transparency (Section 6a-1)
Sales Terms
- Government projects receive goods/services without cost, pay 2% service fee and incidental charges (Section 12)
- Private parties pay F.O.B. value, 2% service fee, incidental charges; cash or credit basis (Section 12)
- Credit terms: 10% down payment, 12% interest, 1.5% monthly penalty for delinquency (Section 12)
- Restructuring of delinquent accounts allowed with conditions (Section 8a-2)
- Repossession and sale of goods from delinquent private parties (Section 8a-2)
Special Economic Development Fund
- Constituted from reparations proceeds and interest (Section 4)
- Appropriated for loans by DBP, PNB for economic/industrial projects, public school buildings (Section 4)
- Allocations: 50% industrial, 30% agricultural, 20% public school buildings (Section 4)
- ₨20M for rural bank establishment, ₨50M for land purchase (Section 4)
Operating Funds
- Commission's budget from annual General Appropriation Acts (Section 10)
- Service fees, charges collected by Commission form part of operating funds (Section 10)
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Law
Amending Certain Sections Of Republic Act Numbered Seventeen Hundred And Eighty-Nine, As Amended, Otherwise Known As The Reparations Law
Presidential Decree No. 332
•November 9, 1973
MALACAÑANGM a n i l a
PRESIDENTIAL DECREE No. 332 November 9, 1973
AMENDING CERTAIN SECTIONS OF REPUBLIC ACT NUMBERED SEVENTEEN HUNDRED AND EIGHTY-NINE, AS AMENDED, OTHERWISE KNOWN AS THE REPARATIONS LAW
WHEREAS, it is the policy of the government to utilize all reparations payments from Japan in such manner as shall assure the maximum possible economic benefit to the Filipino people;
WHEREAS, it has been shown that majority of reparations end-users in the private sector have failed to properly utilize he reparations goods and/or services received by them, and to pay the amortizations thereon as they fall due, thus resulting in huge arrearages to the detriment of the Philippine economy;
WHEREAS, such failure of the end-users in the private sector to comply with their obligations is mainly due to the very low rates of interest being charged under the existing law;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of powers vested in me by the Constitution as Commander-in-Chief of all the Armed Forces of the Philippines, and pursuant to...
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