Creating The Public Estates Authority, Defining Its Powers And Functions, Providing Funds Therefore And For Other Purposes

Case Overview and Summary

Summary of Presidential Decree No. 1084 - Charter of the Public Estates Authority

Declaration of Policy (Section 2):
- Provide coordinated, economical, and efficient reclamation of lands and administration of government lands to maximize utilization and hasten development.

Creation and Purpose (Sections 3-4):
- Creates the Public Estates Authority as a body corporate with perpetual succession.
- Purposes:
    - Reclaim land, including foreshore and submerged areas. (Section 4a)
    - Develop, improve, acquire, administer, subdivide, dispose, lease and sell government lands and real property. (Section 4b)
    - Provide services for efficient utilization of such properties. (Section 4c)

Powers and Functions (Section 5):
- Prescribe by-laws. (Section 5a)
- Sue and be sued, adopt and use a seal. (Sections 5b-c)
- Deal in buildings and construct necessary facilities. (Sections 5d-h)
- Hold public domain lands in excess of statutory limits for private corporations. (Section 5i)
- Construct works across streams, streets, railways, etc. with right-of-way. (Section 5j)
- Issue regulations and collect fees/tolls for use of its properties. (Section 5k)
- Organize subsidiary companies. (Section 5l)
- Enter into contracts, including loan agreements and mortgages. (Section 5m)
- Exercise eminent domain with title taken in the name of the Republic. (Section 5n)
- Promulgate rules and regulations with penalties. (Section 5p)

Governing Body and Management (Sections 6-8):
- Governed by a Board of 5 members (Chairman and 4 members) appointed by the President for 3-year terms. (Section 6)
- General Manager appointed by the President as Chief Executive. (Section 6)
- General Manager's duties include acting as Chief Executive, executing policies, supervising operations, and representing the Authority. (Section 8)

Capital Stock and Funding (Sections 7, 9, 15):
- Authorized capital stock of 3,000,000 no par value shares.
- 2,000,000 shares subscribed by the Republic through transfer of rights and P5,000,000 cash. (Section 7a)
- Remaining 1,000,000 shares may be subscribed by the Republic or government financial institutions. (Section 7b)
- Authorized to issue bonds or securities, which may be government-guaranteed, to finance operations. (Section 9)
- P5,000,000 appropriated from National Treasury as partial payment for Republic's subscription. (Section 15)

Auditing, Personnel, and Reporting (Sections 10-11, 14):
- Commission on Audit to appoint an Auditor and personnel. (Section 10)
- Board to appoint officers and employees, fix compensation, and maintain a merit system. (Section 11)
- Submit annual report to the President within 3 months after fiscal year end and other periodic reports. (Section 14)

Loans and Guarantees (Sections 12-13):
- Authorized to contract loans, credits, and indebtedness from foreign governments, institutions, or entities with Presidential approval. (Section 12)
- Government financial institutions empowered to guarantee the Authority's transactions and obligations. (Section 13)