Creating And Establishing The Development Academy Of The Philippines, Defining Its Powers, Functions, And Responsibilities, And For Other Purposes

Case Overview and Summary

Summary of Presidential Decree No. 205

Establishment and Purposes of the Development Academy of the Philippines (DAP):
- Creates the DAP as a body corporate to foster and support developmental forces in the economy through human resource development programs, research, data-collection, and information services. (Section 1)
- Promotes research, education, training, consultancy, and publication in economics, public administration, political and social sciences related to development problems. (Section 1)
- Initiates and catalyzes exchange of ideas and expertise on development activities in Asia and the Far East. (Section 1)

Corporate Powers of the DAP:
- Adopt and use a corporate seal. (Section 2)
- Acquire, hold, and dispose of property through various means. (Section 2)
- Collect and maintain funds through subscriptions or other means. (Section 2)
- Enter into contracts and agreements necessary for management. (Section 2)
- Exercise powers conferred upon private or government-owned corporations. (Section 2)

Domicile and Branches:
- Principal office established in Tagaytay City. (Section 3)
- May have branches or offices within or outside the Philippines as required. (Section 3)

Board of Trustees:
- Governance and policy direction vested in a 15-member Board of Trustees. (Section 4)
- Composition includes government officials and one Muslim Filipino of national prominence. (Section 4)
- Trustees serve without compensation but may be reimbursed for expenses. (Section 4)

Responsibilities of the Board of Trustees:
- Prepare and adopt necessary rules and regulations. (Section 5)
- Authorize fields of human resource development, investigation, and major studies. (Section 5)
- Constitute the Executive Committee. (Section 5)
- Appoint the President and Vice-Presidents. (Section 5)
- Review the administration and programs of the DAP periodically. (Section 5)

Executive Committee:
- Consists of the President and 3-5 members elected by the Board of Trustees. (Section 6)
- Members serve 2-year terms and are eligible for re-election. (Section 6)
- Administers the affairs of the DAP as delegated by the Board of Trustees. (Section 7)

President of the DAP:
- Chief executive officer appointed by the Board of Trustees. (Section 8)
- Submits policies and measures to the Board and Executive Committee. (Section 8)
- Recommends, coordinates, and administers programs and projects. (Section 8)
- Directs and supervises operations and internal administration. (Section 8)
- Submits an annual report to the Board of Trustees. (Section 8)
- Exercises other powers vested by the Board and Executive Committee. (Section 8)

Financial Support and Endowment Fund:
- Initially financed through contributions from founding institutions. (Section 9)
- A P3,000,000 contribution from each founding institution in June 1973. (Section 9)
- A P4,500,000 contribution from each founding institution in June 1975. (Section 9)
- Endowment Fund created for self-support capability and terminating annual contributions. (Section 9)
- Endowment Fund principal cannot be impaired, and only earnings can be spent. (Section 9)

Expenditures and Disbursements:
- Not subject to procurement requirements and restrictions imposed on government agencies. (Section 10)

Staff Appointments:
- Appointments can be on a part-time basis. (Section 11)
- Exempt from Civil Service Law, position-classification, salary standardization, and Section 259 of the Revised Administrative Code. (Section 11)
- Government retirees employed by the DAP are not required to refund gratuities or have pensions reduced. (Section 11)

Exemption from Taxes:
- Donations, contributions, bequests, subsidies, or financial aid to the DAP are exempt from taxes and deductible for income tax purposes. (Section 12)
- The DAP, its assets, acquisitions, income, operations, and transactions are exempt from taxes, fees, charges, imposts, licenses, and assessments, except import taxes, duties, and fees. (Section 12)

Disposition of Assets upon Dissolution:
- Remaining assets after returning the endowment fund principal to founding institutions and paying liabilities shall be disposed of to foundations, institutions with similar pursuits, or the Republic of the Philippines or its agencies. (Section 13)

Transfer of Functions, Properties, and Appropriations:
- Functions, assets, funds, properties, and budgetary appropriations of the Productivity and Development Center of the National Economic Development Authority are transferred to the DAP. (Section 14)