AN ACT CREATING THE NATIONAL IRRIGATION ADMINISTRATION

Case Overview and Summary

Summary of Republic Act No. 3601

Establishment and Objectives
- Establishes the National Irrigation Administration (NIA) as a body corporate with its principal office in Manila and representatives in all provinces. (Section 1)
- NIA's powers and objectives include:
• Investigating, studying, improving, constructing, and administering all national irrigation systems in the Philippines. (Section 2a)
• Investigating available water resources and planning, designing, and constructing irrigation projects to make the next 10-20 years the "Irrigation Age" of the Philippines. (Section 2b)
• Collecting fees from users of each irrigation system to finance its continuous operation and reimburse the construction cost within at least 25 years. (Section 2c)
• Performing other necessary activities to achieve its objectives. (Section 2d)

Capitalization
- NIA's working capital is 300 million pesos, fully subscribed and paid by the Philippine government through bonds floated by the Central Bank, delivered annually at 30 million pesos until fully paid. (Section 3)
- The President is authorized to issue bonds, preferably in the Philippines or abroad if necessary, to cover the annual subscription. (Section 3)
- The Secretary of Finance, in consultation with the Monetary Board, shall prescribe the terms and conditions of the bonds. (Section 3)
- The bonds are exempt from taxation and attachment, execution, or seizure. (Section 3)
- NIA shall return the amounts received from the Central Bank in 50 equal yearly installments starting from the sixth year. (Section 3)
- NIA is authorized to obtain loans from the proceeds of imported surplus agricultural commodities under U.S. Public Law 480. (Section 3)
- A sinking fund shall be established to redeem the bonds at maturity, under the custody of the Central Bank. (Section 3)
- An annual appropriation shall be made to cover the sinking fund and interest on the bonds. (Section 3)

Governing Body
- NIA's powers and functions shall be exercised by a 7-member Board of Directors, including the Secretaries of Public Works and Communications (Chairman), Agriculture and Natural Resources, the Chairman of the National Power Corporation, the Directors of Plant Industry and Agricultural Extension, and two members appointed by the President (one recommended by a national rice and corn organization, and one by the minority party). (Section 4)
- Board members shall receive a per diem of 25 pesos for attending meetings, up to 100 pesos per month. (Section 4)
- The Board's powers and duties include:
• Prescribing, amending, and repealing rules and regulations governing NIA's business, with the President's approval. (Section 5a)
• Appointing and fixing the compensation of the Irrigation Administrator, Assistant Irrigation Administrator, Secretary, and Treasurer, with the President's approval. (Section 5b)
• Approving NIA's annual and supplemental budgets, subject to the President's final action. (Section 5c)
- Board members shall not serve NIA in any other capacity unless authorized by the President. (Section 6)

Management
- The management of NIA shall be vested in the Irrigation Administrator. (Section 7)
- The Irrigation Administrator's powers and duties include:
• Directing and managing NIA's affairs and business, subject to the Board's control and supervision. (Section 8a)
• Sitting in Board meetings and participating in deliberations, but without voting rights. (Section 8b)
• Submitting an annual report to the President through the Board within 60 days after the fiscal year's end. (Section 8c)
• Appointing and fixing the number of subordinate personnel, and removing, suspending, or disciplining them for cause, with the Board's approval. (Section 8d)
• Performing other duties assigned by the Board. (Section 8e)

Appointments and Promotions
- All NIA officers and employees shall be subject to the Civil Service Law and Rules, except those whose positions are declared by the President as policy-determining, primarily confidential, or technical in nature upon the Board's recommendation. (Section 9)

Audit
- The Auditor General shall appoint an Auditor of NIA and necessary personnel, whose number and salaries shall be determined by the Auditor General, subject to appropriation by the Board. (Section 10)
- The Auditor shall submit an audit report for each fiscal year within 60 days after its end, through the Auditor General, to the Board, the President, and the Congress. (Section 11)
- The report shall include financial statements, comments, recommendations, and any impairment of capital or unauthorized transactions observed. (Section 11)

Miscellaneous Provisions
- The Irrigation Division of the Bureau of Public Works is abolished, and its personnel, appropriations, functions, duties, equipment, records, assets, and liabilities are transferred to NIA. (Section 12)
- The provisions of the Corporation Law not inconsistent with this Act shall be applicable to NIA. (Section 13)
- The President shall issue rules and regulations to implement this Act. (Section 14)
- All laws, executive orders, administrative orders, rules, and regulations inconsistent with this Act are repealed or modified accordingly. (Section 15)
- This Act shall take effect upon its approval. (Section 16)