EXECUTIVE ORDER NO. 286 July 25, 1987
CREATING THE SEQUESTERED ASSETS DISPOSITION AUTHORITY (SADA) AND FOR OTHER PURPOSES
WHEREAS, it is the policy of the State to recover ill-gotten wealth amassed by the leaders and close associates of the previous regime and to protect the interest of the people through orders of sequestration;
WHEREAS, by virtue of Executive Order No. 1, the Presidential Commission on Good Government (PCGG) was created, to assist the Philippine government in the recovery of the said ill-gotten wealth;
WHEREAS, Executive Order No. 1 further provides that the PCGG shall provisionally take over the business or corporations, enterprises and properties amassed by the leaders and close associates of the previous regime until the transaction leading to such acquisition by the latter, are declared to be illegal by a court of law with competent jurisdiction;
WHEREAS, there is an urgent need for an entity to oversee the disposition of assets and properties recovered by the Government, by virtue of a decision of a court of law, pursuant to...
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Executive Orders
Creating the Sequestered Assets Disposition Authority (Sada) and For Other Purposes
Executive Order No. 286
Summary of Executive Order No. 286
Creation of Sequestered Assets Disposition Authority (SADA):
- Established to oversee the disposition of assets and properties recovered by the government from the previous regime's leaders and associates. (Sec. 1)
- Composed of a Chairman and four members appointed by the President, with good moral character and integrity. (Sec. 1)
- Under the administrative supervision of the Office of the President. (Sec. 1)
- Emoluments, benefits, and staffing pattern to be fixed by the Chairman and members, subject to the President's approval, and exempt from OCPC and Civil Service Commission requirements. (Sec. 1)
Coverage:
- SADA shall formulate and implement a program for the disposition of assets, business enterprises, or corporations transferred to it by the PCGG or pursuant to a court decision involving sequestered assets prescribed by Section 26, Article XVIII of the 1987 Constitution. (Sec. 2)
Powers and Functions:
- Dispose of or authorize the disposition of assets transferred to SADA, subject to the President's approval, on terms in the best interest of the National Government. (Sec. 3a)
- Take title to, possession of, and conserve assets transferred to SADA, including overseeing the management and operation of corporations or businesses constituting such assets, and filing suits for the recovery and protection of such assets. (Sec. 3b)
- Undertake the rehabilitation of assets, subject to the President's approval, where necessary to conserve their value or permit their sale. (Sec. 3c)
- Engage external expertise as necessary to fulfill its tasks. (Sec. 3d)
- Lease or own real and personal property as required by its functions, borrow money and incur liabilities as reasonably necessary, subject to the President's approval, and receive and collect interest, rent, and other income from the corporations and assets held by it. (Sec. 3e)
- Exercise, on behalf of the National Government and to the extent authorized by the President, all rights, powers, and privileges of ownership, including the ability to compromise and release claims or settle liabilities. (Sec. 3e)
- Issue policies, guidelines, rules, and regulations to implement the objectives of this Executive Order, subject to the President's approval. (Sec. 3f)
Staff Support:
- SADA shall have a technical staff support, with an organization and structure subject to the approval of the Office of the President, Civil Service Commission, and the Department of Budget and Management. (Sec. 4)
Exemptions from Taxes, Fees, and Other Charges:
- SADA, as well as the sequestered corporations and assets transferred to it, shall be exempt from all taxes, fees, charges, imposts, and assessments arising from or occasioned by the passing of title over such corporations or assets from the said corporations to SADA and/or from the National Government to a private acquirer or buyer imposed by the National Government or any subdivision thereof. (Sec. 5)
- The sale or transfer of such corporations or assets shall not be enjoined or hindered by the existence of any liens by way of taxes, fees, charges, or other assessments in favor of the government at the time of sale or transfer, provided that the proceeds from such sale or transfer shall be subject to the tax lien and shall first be applied to satisfy such obligations secured by such liens. (Sec. 5)
Audit:
- Generally accepted accounting and auditing rules and regulations shall be observed in the recording of SADA's transactions. (Sec. 6)
No Injunction:
- No restraining order, temporary or permanent injunction shall be issued by any court, agency, or body to prevent SADA, its agents, or employees from taking possession of, consolidating title to, or disposing of assets transferred to SADA, or from foreclosing upon security or exercising any other right or remedy available to SADA under law or contract to enforce the payment of obligations acquired by SADA. (Sec. 7a, 7b)
- No restraining order, temporary or permanent injunction shall be issued by any court, agency, or body to prevent any purchaser of assets sold by SADA from taking possession of, taking or consolidating title to, or disposing of such assets, except where the restraining order or injunction is sought by SADA itself. (Sec. 7)
Repealing Clause:
- All laws, orders, issuances, rules, and regulations inconsistent with any provisions of this Executive Order are hereby repealed or modified accordingly. (Sec. 13)
Effectivity:
- This Executive Order shall take effect immediately. (Sec. 14)
Creation of Sequestered Assets Disposition Authority (SADA):
- Established to oversee the disposition of assets and properties recovered by the government from the previous regime's leaders and associates. (Sec. 1)
- Composed of a Chairman and four members appointed by the President, with good moral character and integrity. (Sec. 1)
- Under the administrative supervision of the Office of the President. (Sec. 1)
- Emoluments, benefits, and staffing pattern to be fixed by the Chairman and members, subject to the President's approval, and exempt from OCPC and Civil Service Commission requirements. (Sec. 1)
Coverage:
- SADA shall formulate and implement a program for the disposition of assets, business enterprises, or corporations transferred to it by the PCGG or pursuant to a court decision involving sequestered assets prescribed by Section 26, Article XVIII of the 1987 Constitution. (Sec. 2)
Powers and Functions:
- Dispose of or authorize the disposition of assets transferred to SADA, subject to the President's approval, on terms in the best interest of the National Government. (Sec. 3a)
- Take title to, possession of, and conserve assets transferred to SADA, including overseeing the management and operation of corporations or businesses constituting such assets, and filing suits for the recovery and protection of such assets. (Sec. 3b)
- Undertake the rehabilitation of assets, subject to the President's approval, where necessary to conserve their value or permit their sale. (Sec. 3c)
- Engage external expertise as necessary to fulfill its tasks. (Sec. 3d)
- Lease or own real and personal property as required by its functions, borrow money and incur liabilities as reasonably necessary, subject to the President's approval, and receive and collect interest, rent, and other income from the corporations and assets held by it. (Sec. 3e)
- Exercise, on behalf of the National Government and to the extent authorized by the President, all rights, powers, and privileges of ownership, including the ability to compromise and release claims or settle liabilities. (Sec. 3e)
- Issue policies, guidelines, rules, and regulations to implement the objectives of this Executive Order, subject to the President's approval. (Sec. 3f)
Staff Support:
- SADA shall have a technical staff support, with an organization and structure subject to the approval of the Office of the President, Civil Service Commission, and the Department of Budget and Management. (Sec. 4)
Exemptions from Taxes, Fees, and Other Charges:
- SADA, as well as the sequestered corporations and assets transferred to it, shall be exempt from all taxes, fees, charges, imposts, and assessments arising from or occasioned by the passing of title over such corporations or assets from the said corporations to SADA and/or from the National Government to a private acquirer or buyer imposed by the National Government or any subdivision thereof. (Sec. 5)
- The sale or transfer of such corporations or assets shall not be enjoined or hindered by the existence of any liens by way of taxes, fees, charges, or other assessments in favor of the government at the time of sale or transfer, provided that the proceeds from such sale or transfer shall be subject to the tax lien and shall first be applied to satisfy such obligations secured by such liens. (Sec. 5)
Audit:
- Generally accepted accounting and auditing rules and regulations shall be observed in the recording of SADA's transactions. (Sec. 6)
No Injunction:
- No restraining order, temporary or permanent injunction shall be issued by any court, agency, or body to prevent SADA, its agents, or employees from taking possession of, consolidating title to, or disposing of assets transferred to SADA, or from foreclosing upon security or exercising any other right or remedy available to SADA under law or contract to enforce the payment of obligations acquired by SADA. (Sec. 7a, 7b)
- No restraining order, temporary or permanent injunction shall be issued by any court, agency, or body to prevent any purchaser of assets sold by SADA from taking possession of, taking or consolidating title to, or disposing of such assets, except where the restraining order or injunction is sought by SADA itself. (Sec. 7)
Repealing Clause:
- All laws, orders, issuances, rules, and regulations inconsistent with any provisions of this Executive Order are hereby repealed or modified accordingly. (Sec. 13)
Effectivity:
- This Executive Order shall take effect immediately. (Sec. 14)