Authorizing The Creation Of Philippine Centers Abroad

Case Overview and Summary

Summary of Presidential Decree No. 487

Authorizing the Creation of Philippine Centers Abroad
- To consolidate and coordinate activities of Philippine Government offices and agencies abroad. (Section 1)
- To nurture, promote and propagate Philippine culture, encourage foreign tourists, expand foreign market for Philippine products, provide efficient public service, and enhance the image of the Philippines. (Preamble)

Establishment of Philippine Centers
- Philippine Centers to be established in strategically located places approved by the President upon recommendation of the Secretary of Trade. (Section 1)
- Centers to house all offices and agencies of the Philippine Government. (Section 1)

Philippine Center Management Board
- Composition: Chief of Mission (Chairman), Head of Philippine National Bank Branch Office or Commercial Attache or Trade Promotion Representative (Vice-Chairman), Commercial Attache or Trade Promotion Representative, Representative of Department of Tourism, Philippine Center Business Manager (Secretary), and representatives from other Philippine Government offices and agencies. (Section 2A)
- Functions: Overall operation, maintenance and management of the Center; submit annual report to the President by December 31; decide and implement policies on construction, renovation, maintenance and operations; approve and sign lease contracts; adopt security arrangements; and other functions consistent with the objectives. (Section 2B)

Funding and Financial Arrangements
- Funds for purchase and renovation to be obtained through borrowings by Philippine National Bank on behalf of the Board, with the option to advance from its own resources. (Section 3)
- Annual appropriation of 20 million pesos from National Treasury to repay borrowings, advances, interests, premiums, commissions, and other charges. (Section 3)
- Maintenance and operation funds to be taken from the Center Fund, which consists of sales proceeds of Philippine Government properties in the area and income from lease payments and other sources. (Section 3)
- Board authorized to borrow money from Philippine National Bank or other creditors, and to mortgage or encumber its properties as security. (Section 3)
- Philippine Government properties in the area to be sold by the Board, and proceeds to become part of the Center Fund. (Section 4)

Rental Payments and Exemptions
- All Philippine Government offices, agencies, and private firms using the Center shall pay rent to the Board, based on prevailing rates within a two-block radius. (Section 5)
- Philippine Embassy, Consulate, and service representatives exempt from rent payment during the first two fiscal years of operation. (Section 5)

Philippine Center Business Manager
- To be appointed by the Board and responsible for implementing its policies and decisions. (Section 6)
- Salary: Annual salary of US$12,000, with increase proportionate to rental rate increases. (Section 6A.1)
- Benefits: Health and hospitalization insurance equivalent to Embassy or Consulate employees, and social security under local laws. (Section 6A.2)
- Functions: Secretary of the Board, prepare agenda and minutes; responsible for safety, cleanliness and maintenance of the building; and other functions assigned by the Board. (Section 6B)

Philippine House and Other Facilities
- Center to have a trade, tourism and investment center called Philippine House, under supervision of Department of Trade, for Philippine products and cultural, tourism and investment materials. (Section 7)
- Other facilities: auditorium/teacher/community room, library room, restaurant, penthouse for socials and rentals, storage room, and other areas decided by the Board. (Section 7)

Support Activities and Appropriations
- Department of Trade to be the coordinating and clearing house of support activities for the Center, with assistance from other government offices and agencies. (Section 8)
- Appropriation of 5 million pesos as a revolving fund for the Department of Trade for operating expenses of Philippine Houses abroad. (Section 8)

Architectural Consultant
- Secretary of Trade may appoint a Filipino architectural consultant to advise the Board and local architects/contractors on exterior and interior renovation work to project an image representative of the best in Philippine life and culture. (Section 9)

Amendments
- This Decree amends Presidential Decree No. 188 (dated May 10, 1973) and Presidential Decree No. 258 (dated July 31, 1973). (Section 10)