EXECUTIVE ORDER NO. 114 December 24, 1986
AUTHORIZING THE RELEASE OF P487 MILLION TO THE SUGAR REGULATORY ADMINISTRATION TO LIQUIDATE UNPAID NATIONAL SUGAR TRADING CORPORATION OBLIGATIONS TO SUGAR PRODUCERS FOR THE CROP YEAR 1981-1985 AND FOR OTHER PURPOSES.
WHEREAS, it is the policy of the State to rationalize the sugar industry and protect its growth and development which is a major component of the socio-economic and political structure of the country;
WHEREAS, under Executive Order No. 18, the Sugar Regulatory Administration was created to carry out such policy of the State, and absorb the functions and jurisdiction of the Philippine Sugar Commission which has been abolished;
WHEREAS, the then Philippine Sugar Commission issued Circular Letter No. EC-1-185 classifying all sugar produced from March 4, 1985 to the end of the 1984-1985 crop million season as domestic sugar, and requiring that all such produced sugar turned over to the National Sugar Trading Corporation, a wholly-owned subsidiary of the Philippine Sugar Commission under Presidential Decree No. 1192, at a liquidation price of P300.00...
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Executive Orders
Authorizing The Release Of P487 Million To The Sugar Regulatory Administration To Liquidate Unpaid National Sugar Trading Corporation Obligations To Sugar Producers For The Crop Year 1981-1985 And For Other Purposes.
Executive Order No. 114
Summary of Executive Order No. 114
Purpose: To authorize the release of P487 million to the Sugar Regulatory Administration to liquidate unpaid National Sugar Trading Corporation obligations to sugar producers for the crop year 1981-1985.
• Background (Whereas clauses):
- The State aims to rationalize and protect the growth of the sugar industry, a major socio-economic component. (Whereas clause 1)
- The Sugar Regulatory Administration was created to carry out this policy and absorb the functions of the abolished Philippine Sugar Commission. (Whereas clause 2)
- The Philippine Sugar Commission classified all sugar produced from March 4, 1985 to the end of the 1984-1985 crop season as domestic sugar, requiring it to be turned over to the National Sugar Trading Corporation at P300.00 per picul. (Whereas clause 3)
- After the Sugar Regulatory Administration assumed its functions and sold the sugar stocks, an unpaid principal obligation of approximately P487 million remained due to producers-claimants. (Whereas clause 4)
- Non-payment of these obligations has put the accounts of producers-claimants with financing banks in arrears, preventing them from obtaining additional loans for future sugar production. (Whereas clause 5)
- It is in the national interest to settle the 1984-1985 crop and operational loan accounts to maintain the viability of credit institutions, restore the credit standing of affected sugar producers, and alleviate the living conditions of people dependent on the sugar industry. (Whereas clause 6)
• Provisions:
- The Commission on Audit shall conduct a detailed audit on the National Sugar Trading Corporation accounts and issue a certificate on the net unpaid principal obligations to sugar producers for the 1984-1985 crop year. (Section 1)
- Upon receipt of the Commission on Audit certification, the Ministry of Budget and Management shall immediately release P487 million as a subsidy to the Sugar Regulatory Administration to liquidate the unpaid obligations of the National Sugar Trading Corporation to sugar producers and settle their accounts with financing institutions. (Section 2)
- The Sugar Regulatory Administration, in coordination with the Commission on Audit, shall issue rules and regulations to implement this Executive Order, ensuring that payments made to producers-claimants are remitted to creditor banks/financial institutions to liquidate their obligations. (Section 3)
- The Sugar Regulatory Administration shall submit an accounting of the disbursements from the P487 million to the Office of the President, through the Ministry of Finance, as certified by the Commission on Audit. Any excess amount shall be turned over to the Bureau of the Treasury for credit to the general fund. (Section 4)
- The release of P487 million to sugar producers-claimants is conditioned upon the implementation of the recommendations of the "Task Force to Study the 60-30-10 Plan involving sugar lands in Negros Occidental," created by Memorandum Order No. 56 dated December 11, 1986. (Section 5)
- All inconsistent laws, orders, issuances, rules and regulations are repealed or modified accordingly. (Section 6)
- This Executive Order shall take effect immediately. (Section 7)
Purpose: To authorize the release of P487 million to the Sugar Regulatory Administration to liquidate unpaid National Sugar Trading Corporation obligations to sugar producers for the crop year 1981-1985.
• Background (Whereas clauses):
- The State aims to rationalize and protect the growth of the sugar industry, a major socio-economic component. (Whereas clause 1)
- The Sugar Regulatory Administration was created to carry out this policy and absorb the functions of the abolished Philippine Sugar Commission. (Whereas clause 2)
- The Philippine Sugar Commission classified all sugar produced from March 4, 1985 to the end of the 1984-1985 crop season as domestic sugar, requiring it to be turned over to the National Sugar Trading Corporation at P300.00 per picul. (Whereas clause 3)
- After the Sugar Regulatory Administration assumed its functions and sold the sugar stocks, an unpaid principal obligation of approximately P487 million remained due to producers-claimants. (Whereas clause 4)
- Non-payment of these obligations has put the accounts of producers-claimants with financing banks in arrears, preventing them from obtaining additional loans for future sugar production. (Whereas clause 5)
- It is in the national interest to settle the 1984-1985 crop and operational loan accounts to maintain the viability of credit institutions, restore the credit standing of affected sugar producers, and alleviate the living conditions of people dependent on the sugar industry. (Whereas clause 6)
• Provisions:
- The Commission on Audit shall conduct a detailed audit on the National Sugar Trading Corporation accounts and issue a certificate on the net unpaid principal obligations to sugar producers for the 1984-1985 crop year. (Section 1)
- Upon receipt of the Commission on Audit certification, the Ministry of Budget and Management shall immediately release P487 million as a subsidy to the Sugar Regulatory Administration to liquidate the unpaid obligations of the National Sugar Trading Corporation to sugar producers and settle their accounts with financing institutions. (Section 2)
- The Sugar Regulatory Administration, in coordination with the Commission on Audit, shall issue rules and regulations to implement this Executive Order, ensuring that payments made to producers-claimants are remitted to creditor banks/financial institutions to liquidate their obligations. (Section 3)
- The Sugar Regulatory Administration shall submit an accounting of the disbursements from the P487 million to the Office of the President, through the Ministry of Finance, as certified by the Commission on Audit. Any excess amount shall be turned over to the Bureau of the Treasury for credit to the general fund. (Section 4)
- The release of P487 million to sugar producers-claimants is conditioned upon the implementation of the recommendations of the "Task Force to Study the 60-30-10 Plan involving sugar lands in Negros Occidental," created by Memorandum Order No. 56 dated December 11, 1986. (Section 5)
- All inconsistent laws, orders, issuances, rules and regulations are repealed or modified accordingly. (Section 6)
- This Executive Order shall take effect immediately. (Section 7)