AN ACT EXTENDING THE TERM OF THE COMMITTEE ON PRIVATIZATION AND THE ASSET PRIVATIZATION TRUST AMENDING FOR THE PURPOSE REPUBLIC ACT NUMBERED SEVEN THOUSAND ONE HUNDRED EIGHTY-ONE

Case Overview and Summary

Summary of Republic Act No. 8758

Extension of the Committee on Privatization and Asset Privatization Trust
- The term of the Committee on Privatization and the Asset Privatization Trust is extended from January 1, 2000 to December 31, 2000. (Section 1)
- During the extension period, the Committee shall continue to exercise its powers, duties, and responsibilities under Proclamation No. 50, as amended.

Disposition of Assets
- All disposition of assets shall be primarily for cash, but government financial instruments and sales by installment may be allowed. (Section 1)
- The Committee on Privatization shall serve as the central agency for the privatization program and is empowered to:
    - Designate the disposition entity for all assets intended for privatization, including assets recovered by the PCGG and government idle properties. (Section 1)
    - Appoint a representative to the governing board of a government corporation or corporation with government transferred assets identified for privatization, with certain conditions. (Section 1)

Remittance of Receipts
- Upon the effectivity of this Act, all receipts from the sale of assets of the Asset Privatization Trust shall be remitted to the National Treasury in the following proportion:
    - 60% to the special account of the Agrarian Reform Fund. (Section 1)
    - 40% to the general fund. (Section 1)
- The total initial amount of P50,000,000,000.00 shall be satisfied and completed from all sources for the Comprehensive Agrarian Reform Program within a 10-year period. (Section 1)
- Except for subsidiaries of GSIS and SSS, all government-owned and -controlled corporations shall remit at least 50% of the net proceeds derived from the sale of shares or assets to the National Government, effective October 1, 1992. (Section 1)
- Net proceeds are defined as gross proceeds less related liabilities and selling expenses. (Section 1)

Audit and Transfer of Assets
- The Commission on Audit shall undertake an examination of all the assets and liabilities remaining with the Asset Privatization Trust within 180 days upon approval of this Act. (Section 1)
- Upon expiration of the Asset Privatization Trust's term, the financial assets shall be transferred for disposition by the President to a trust department of the appropriate government financial institution. (Section 1)
- The physical assets remaining shall be immediately transferred to the appropriate government agency for disposition. (Section 1)
- No disposition of properties shall be made during the last 30 days of the term, which shall be devoted exclusively to the liquidation of the Asset Privatization Trust and the Committee on Privatization, and the preparation for turnover of assets, records, and properties. (Section 1)
- All assets, moneys, properties, and liabilities of the Asset Privatization Trust upon expiration of its term shall revert to and be assumed by the National Government. (Section 1)
- All cash advances and unsettled obligations incurred after the effectivity of this law by the officers and employees of the Committee on Privatization and the Asset Privatization Trust must be liquidated on or before December 31, 2000. (Section 1)
- The decision of the Asset Privatization Trust and the Committee on Privatization on the sale and disposition of assets shall be final without need for concurrence by the owner and/or the custodian agency or corporation of the asset. (Section 1)

Devolution of Powers and Assets
- Upon the expiration of the terms of the Committee on Privatization and the Asset Privatization Trust, all their powers, functions, duties, responsibilities, properties, assets, equipment, records, obligations, and liabilities shall devolve upon the National Government. (Section 2)

Repealing Clause and Effectivity
- All laws, orders, decrees, proclamations, rules, and regulations inconsistent with this Act are repealed or modified accordingly. (Section 3)
- This Act shall take effect after its publication in two newspapers of general circulation. (Section 4)