AN ACT CREATING THE NATIONAL MARKETING CORPORATION AND DISSOLVING THE PRICE STABILIZATION CORPORATION

Case Overview and Summary

Summary of Republic Act No. 1345:

Declaration of Policy (Section 1):
- Assist Filipino retailers and businessmen by supplying them with goods at competitive prices to promote their participation in the distribution system and economic welfare.
- Create a government corporation to engage in procurement, buying, and distributing goods to Filipino retailers and businessmen, not for profit but as an essential public service.

Creation and Powers of NAMARCO (Sections 2-5):
- Creates the "National Marketing Corporation" (NAMARCO) as a private corporation with a 25-year duration.
- NAMARCO has general corporate powers, including adopting a seal, making contracts, holding property, suing and being sued, and exercising powers under the Corporation Law.
- NAMARCO has special powers, including:
    - Procuring and buying commodities for distribution to Filipino retailers and businessmen at reasonable prices (Section 5a).
    - Stabilizing prices of commodities in short supply by supplying to the public through Filipino businessmen (Section 5b).
    - Formulating policies and procedures for selling commodities on credit to Filipino retailers and businessmen (Section 5c).
    - Establishing distribution offices and agencies, or contracting with wholesalers for purchase and distribution (Section 5d).
    - Accepting and rediscounting eligible evidence of indebtedness with financial institutions (Section 5e).
    - Borrowing money from credit institutions (Section 5f).

Capitalization and Revolving Fund (Section 6):
- NAMARCO has an authorized capital of 30 million pesos, subscribed by the Philippine government and paid in installments over 3 fiscal years.
- The capital constitutes a revolving fund for financing business transactions.
- NAMARCO can appropriate up to 1 million pesos annually from the capital for operating expenses, reimbursed by the government.

Board of Directors and Management (Sections 7-15):
- NAMARCO is governed by a 7-member Board of Directors, including the Secretary of Commerce and Industry as ex-officio Chairman and 6 members appointed by the President.
- The Board has powers to prescribe by-laws, appoint and fix compensation of the General Manager and other officials, and approve budgets.
- The General Manager manages the affairs and business of NAMARCO under the Board's supervision.
- NAMARCO has an organizational structure with departments for purchasing, marketing, traffic-storage, and staff offices for personnel, finance, market analysis, general services, legal counsel, and auditing.
- Appointments and promotions are based on merit and efficiency, without political considerations.

Financial Provisions and Obligations (Section 16):
- NAMARCO's obligations are secured by its assets and guaranteed by the Philippine government.
- The government will pay NAMARCO's obligations if it is unable to pay, succeeding to the rights of the holders.
- NAMARCO and its obligations are exempt from taxes, except inheritance and gift taxes.

Penal Provisions (Section 17):
- Prohibits NAMARCO officers, employees, and government officials from becoming guarantors or sureties for NAMARCO credits, with penalties of imprisonment (1-5 years) and fines (1,000-5,000 pesos).
- Prohibits exacting fees or commissions for obtaining NAMARCO credits, with penalties of fines (1,000-3,000 pesos) and imprisonment (1-3 years).
- Penalizes providing false information to obtain credits, with imprisonment (3 months - 3 years) and fines (amount of credit obtained or applied for).
- Prohibits speculation in NAMARCO's commodity support program, with penalties of fines (up to 20,000 pesos) and imprisonment (up to 10 years).

Transitory Provisions (Section 18):
- NAMARCO retains PRISCO's regional and provincial sales organizations, with at least one agency per province.
- PRISCO is dissolved, with its personnel, records, assets, and liabilities related to real estate, fixed assets, and stock in trade transferred to NAMARCO.
- Other assets, liabilities, and obligations of PRISCO are transferred to a Board of Liquidators.
- Separated PRISCO personnel are entitled to commutation of leave credits, retirement benefits, or gratuity (1 month's salary per year of service, up to 12 months).

Miscellaneous Provisions (Sections 19-20):
- Repeals or modifies inconsistent laws, executive orders, administrative orders, and proclamations.
- Provides for severability of provisions if any part is held invalid.
- Sets the effective date upon approval of the Act.