The shadow of the Philippine Amanah Bank

The shadow of

Philippine Amanah Bank

By Abdel Aziz Dimapunong (Abdel Azish Dimapunung)

Founding Chairman, Amanah Islamic Bank

This article and its sequel are written in response to comments on my previous articles and new inquiries about the relationship of the Philippine Amanah Bank and the Amanah Islamic Bank, more particularly on their respective shares of stocks.

It is totally wrong to say that the Amanah Islamic Bank is the former Philippine Amanah Bank. It is wrong to write Amanah Islamic Bank (formerly Philippine Amanah Bank)

This article in two series will attempt to explain that the Amanah Islamic Bank is not the former Philippine Amanah Bank. I will support the explanation with legal provisions of law, legal jurisprudence, accounting and auditing data.

The shadow of the abolished Philippine Amanah Bank still lingers because there is still the confusion and wrong presumption that the Amanah Islamic Bank is the former Philippine Amanah Bank. This error is perpetuated by new government officers of the so-called Privatization and Management Office, successor of the Asset Privatization Trust, who are still trying to sell the dead shares of the Philippine Amanah Bank in the name of the new Amanah Islamic Bank. For this reason, there is a need to get back to the charter of the old Philippine Amanah Bank.

It was during the oil phenomenon in 1973 that the Martial Law government of Ferdinand Marcos established by decree the Philippine Amanah Bank with all its pretension as a Muslim bank if not strictly an Islamic bank. However, this was only for a show to the Muslim world. The truth was this bank was never a truly Islamic bank.

On the background of the establishment of the Philippine Amanah Bank, I have previously written and posted on this site: Tamano and Islamic Banking. Please visit my blog on this title.

http://dimapunong.sulekha.com/blog/post/2007/03/senator-tamano-and-islamic-banking.htm

In August of 1974, Marcos amended PD 264 by issuing PD 542.

To the Muslims in the Philippines, it was very pleasing to read the following preamble to the amendment, thus

“WHEREAS, in order to render more effective the foregoing intentions and objectives of this Decree, it is necessary that the religious beliefs and practices of the Muslim citizens of the Philippines, be followed and respected, unless otherwise it is contrary to law, good morals and public policy.

Section 1 of the amendment was also very pleasing to read, thus:

The Philippine Amanah Bank shall be based on the Islamic Concept of Banking, following the no-interest and partnership principles.”

Despite of the amendment, however, from day one of its operation in 1973 until it was abolished in February 1990; it was paying and charging interest in violation of Islamic banking principle. It was also never owned by Muslims except for nominal few private stockholders.

Capitalized at a meager amount of only P50 million (about USD 1.3 million) in 1973, the PAB was finally insolvent at end of year 1993.

There is not a sensible and meaningful financial analysis about the performance of the abolished Philippine Amanah Bank. There was also nothing in it that the Muslims of the Philippines can be proud of. It was a total failure. It was a total disappointment.

To some Muslim scholars in the Philippines, the operation of the defunct PAB from 1974 up to 1992 under the supervision of the government financial institutions (the Philippine National Bank and later the Development Bank of the Philippines) was meant to degrade and embarrass the Muslim professionals.

Below are a copy of PD 264 that created the Philippine Amanah Bank and a copy of its amendment, PD 542. Presidential Decree 264 as amended is already non-existing as it was repealed entirely by Republic Act No. 6848. I have made some important notations in relations to the Al Amanah Islamic Investment Bank of the Philippines (Islamic Bank)

PRESIDENTIAL DECREE NO 264

(Repealed entirely by R.A. 6848)

AN ACT CREATING A PHILIPPINE AMANAH BANK

WHEREAS, it is a declared policy of the Government to promote and accelerate the socio-economic growth and development of Mindanao, particularly, the economically depressed provinces of Cotabato, Lanao del Sur, Lanao del Norte, Zamboanga del Sur, Zamboanga del Norte, and Sulu;

WHEREAS, surveys and studies indicate a pressing need to expand the banking and credit system in the region to make it more responsive to the investment and credit requirements of this development program;

WHEREAS, it is further recognize that, ultimately, sustained economic development will rely heavily on the capabilities of the people in the region to generate investments through institutional savings;

NOW, THEREFORE, I , FERDINAND MARCOS, President of the Philippines, by virtue of the powers in me vested by the Constitution as Commander-in-Chief of all the Armed Forces of the Philippines, pursuant to Proclamation No. 1081, dated 21 September 1972, as amended, by Proclamation No. 1104, dated 17 January 1973 and General Order No. 1, dated 22 September 1972, as amended, and in order to effect the desired changes and reforms in the social, economic and political structure of the society, do hereby and decree the creation of a Philippine Amanah Bank;

ESTABLISHMENT AND FUNCTIONS

SECTION 1. Purposes, Name and Domicile. – To provide credit, commercial, development and savings banking facilities at reasonable terms to the people of the preliminary Muslim provinces of Mindanao, principally, the provinces of Cotabato, South Cotabato, Lanao del Sur, Lanao del Norte, Sulu, Basilan, Zamboanga del Sur, Zamboanga del Norte and Palawan for the establishment, acquisition, development and expansion of agricultural, commercial and industrial enterprises, there is hereby created a body corporate to be known as the Philippine Amanah Bank, which shall have its principal place of business at Marawi City and shall exist for fifty years.

SEC. 2. Corporate Power.- The Philippine Amanah Bank shall have the power:

(a) to prescribe its by-laws;

(b) to adopt, alter, and use a corporate seal;

(c) to make contracts, to sue and be sued;

(d) to accept savings and time deposits, and open current or checking accounts;

(e) to borrow money; to own real or personal property and to sell, mortgage or otherwise dispose of the same;

(f) to employ such officers and personnel, preferably from the Muslim population in Mindanao and Palawan as may be necessary to carry on its business;

(g) to establish such branches and agencies in the dominantly Muslim provinces in Mindanao and Palawan and such correspondent Offices in other areas as may be necessary for the proper conduct of its business;

(h) to grant loans for the establishment, acquisition, development and expansion of any agricultural, commercial and/or industrial enterprise, including public utilities, mining, livestock and poultry and fishing, whether offshore or inland;

(I) to invest in equities of allied undertakings as pertinent laws and the Central Bank shall authorize;

(j) to carry on trust business in accordance with the provisions of law governing trust corporations;

(k) to issue bonds, debentures, securities, collaterals and/or refinancing of the same, with the approval of the Central Bank, to be used by the Bank in its lending operations for industrial and agricultural projects that will promote the economic development of the region;

(l) to exercise powers granted under this charter and such incidental powers as may be necessary to carry on its business, and to exercise further the general powers mentioned in the Corporation Law and the General Banking Act, as amended in so far as they are not inconsistent or incompatible with the provisions of this charter.

SEC. 3 Authorized Capital Stock-Par Value. – The authorized capital stock of the Amanah Bank shall be one hundred million pesos divided into one million par value shares of one hundred pesos each. The shares shall be divided into four classes, denominated as Series “A”, Series “B”, Series “C”, and Series “D”.

(a) series “A” shall comprise thirty million pesos equivalent to three hundred thousand common shares [emphasis supplied] to be subscribed by the Government of the Republic of the Philippines;

(b) series “B” shall comprise twenty million pesos equivalent to two hundred thousand preferred shares [emphasis supplied] which shall be subscribed by the Government of the Republic of the Philippines, its agencies or instrumentalities, such shares to be entitled to cumulative dividends of three percent per annum and with preference as against common stockholders in The distribution of assets in the event of liquidation;

(c) series “C” shall comprise thirty million pesos equivalent to three hundred thousand common shares [emphasis supplied] to be subscribed solely by the citizens of the Philippines and domestic corporations and entities, seventy per centum of the equity of which is owned by citizens of the Philippines. Preference in the subscription of this class of shares shall be given to residents of the provinces and cities served or to be served by the Bank;

(d) series “D” shall comprise twenty million pesos equivalent to two hundred thousand common shares which shall be available for subscription of foreign nationals, their corporations and/or associations.

………………….

Comments.

Note 1. The government shares were as follows:

Common Shares

National Government Series A P30,000,000

Preferred Shares

Financial Institutions Series B`

Dev. Bank of Philippines P5,000,000

Social Security System P5,000,000

Gov’t. Service Insurance System P5,000,000

Philippine National Bank P5, 000,000

Total Preferred Shares P20, 000,000

Note 2. Only common shares were carried in 1990 by Republic Act 6848 (1990) to the new Islamic Bank. Preferred shares were transferred in 1986 to Asset Privatization Trust (APT), now the Privatization Management Office (PMO)

———

SEC. 4 Loans and investments authorized. – Said Amanah Bank is hereby authorized:

(a) to purchase or discount promissory notes, drafts and bills of exchange issued or drawn for agricultural, commercial or industrial purposes, with securities required by the Bank, or the proceeds of which have been used or are to be used for such purpose;

(b) to grant loans on or to discount notes secured buy harvested and stored crops: That no loans on the security of such harvest and stored crops shall exceed eighty percent (80%) of the market value thereof on the date of the loan; Provided, further; that the crops so mortgaged shall be insured by the mortgagor for the benefit of the Amanah Bank for their entire market value: and Provided, finally, That if, owing to circumstance whatever, the value of the crops given as security shall diminish, the mortgagor shall obligate himself to furnish further security or refund such part of the loan as the Bank may deem necessary. Such loans shall be granted for a period of not to exceed one year, subject to extension in discretion of the Bank;

(c) to grant loans to agriculturists, on installments, for standing crops considered natural products of the Philippines such as rise, copra, sugar, tobacco, corn, etc. not exceeding seventy percent (70%) of the estimated value of such crops; Provided, however, That before granting such loans, the Amanah Bank may impose as a condition that cultivation be under supervision and/or require additional security in the nature of mortgages on real estate duly registered in the name of the debtor, or chattel mortgage, including those upon livestock, machinery and agricultural implements, or personal bonds with sufficient surety or sureties, satisfactory to the Bank;

(d) to grant loans to the several provincial, city and municipality governments and to any other branch or subdivision of the Republic of the Philippines on promissory notes guaranteed by the National Governments, as shown by the endorsement thereon of the Secretary of Finance, approved by the President of the Philippines or to purchase bonds lawfully issued by such provincial, city and municipality governments and any other branches or subdivision of the Government of the Philippines;

(e) to grant loans to cooperative associations against the security of acceptable assets of the cooperative association and /or the individual members thereof;

(f) to grant loans to small farmers, merchants and traders against the security of lands without Torrents title, where the owner of private property can show five years or more of peaceful, continuous and uninterrupted possession in the concept of the owner; or of portions of friar land estates or other lands administered by the Bureau of Lands that are covered by sales contracts and the purchasers have paid at least five years installment thereon, without the necessity of prior approval and consent of Land Authority or corresponding governmental agency; or of homesteads or free patent lands pending the issuance of titles but already approved, the provisions of any law or regulations to the contrary notwithstanding; Provided, That when the corresponding titles are issued the same shall be delivered to the register of deeds of the province where such lands are situated for the annotation of the encumbrance; Provided, further, That in the case of lands pending homestead or free patent titles, copies of notices for the presentation of the final proof shall also be furnished the Bank and, if the borrowers applicants fail to present the final proof within thirty days from date of notice, the Bank may do so for, them at their expense; Provided, finally, That the applicant for homestead or free patent has already made improvements on the land and the loan applied for is to be used for further development of the same or for other productive economic activities;

(g) to grant loans to the employees of the government service or in private industry to acquire stocks in corporations or industries in an amount not exceeding one month’s salary for every year of service against the security of the undertaking of the employee with notice upon the employer for the repayment thereof by monthly payroll deductions within a period of five years;

(1) the said government financial institutions are convinced that the resources of the Amanah Bank are inadequate to meet the legitimate credit requirements of the locality wherein the Bank is established;

(2) there is dearth of private capital in the said locality;

(3) it is not possible for the private stockholders to increase the paid-up capital thereof.

(I) the Bank with the approval of the Monetary Board may rediscount paper with the Central Bank, the Philippine National Bank or other Banks and their branches or agencies and their nature of papers deemed acceptable for rediscounting the rate to be charged by any such institutions.

(j) generally, to make advances or discount paper for agricultural, manufacturing, industrial, or commercial purposes: Provided, That seventy-five percent of the loanable funds of the Bank shall be invested in medium and long-term loans for economic development purposes and in no case shall the Bank invest more than twenty five percent of its loanable funds in short term loans for miscellaneous purposes provided however, that twenty five percent (25%) of the loanable funds for short term loans for miscellaneous purposes provided however, that twenty five percent (25%) of the loanable funds for short term loans maybe loaned on securities other than real estate mortgage.

SEC. 5 Lending Limits. – Said Amanah Bank shall observe the following limits in its lending operations:

(a) the total liabilities of any person, company, corporation or firm, excluding loans or credits prescribed by law or by the Monetary Board as non-risk assets, shall at no time exceed fifteen per cent (15%) of the unimpaired capital and surplus of the Bank.

The total liabilities of any borrower may amount to a further fifteen percent (15%) of the unimpaired capital and surplus of the Bank provided that the additional liabilities are adequately secured by shipping documents, warehouse receipts or other similar documents transferring or securing title covering readily marketable, non-perishable staples must be fully covered by insurance, and must have a market value equal to at least one hundred and twenty five percent
(125%) of such additional liabilities.

The term liabilities as used herein shall mean the direct liability of the maker or the acceptor of paper discounted with or sold to the Bank and liability of the endorser, drawer or guarantor who obtains a loan from or discounts paper with or sells paper under the guaranty to the Bank and shall include in the case of the liabilities of a co-partnership or association the liabilities of several members thereof and shall include in the case of the liabilities of a corporation all liabilities of all subsidiaries thereof in which such corporation owns or controls a majority interest. But the discount of bills of exchange drawn in good faith against actually existing values, and the discount of commercial or business paper actually owned by the person negotiating the same, shall not be considered as money borrowed, for the purpose of this section.

Loan accommodations granted by Amanah Bank to any other bank licensed to do business in the Philippines shall be subject to the loan limit to any other borrower as herein prescribed.

(b) no director or officer of the bank shall, either directly or indirectly, for himself or as the representative or agent of others, borrow any deposits or funds of the Bank, nor shall he be a guarantor, endorser, or surety for loans from the bank to others, or in any manner to be an obligor for money borrowed from the Bank or loaned by it, except with a written approval of the majority of the directors of the Bank, excluding the director concerned. The credit accommodation to such director or officer of this Bank which the Board of Directors may authorize shall in no case exceed his outstanding deposits or the book value of his paid-in capital in the Bank. Any such approval entered upon the records of the Bank and a copy of such entry shall transmitted forthwith to the appropriate supervising department of the Central Bank of the Philippines. The office of any of the director or officer of the Bank who violates the provisions of this section shall immediately become vacant and the director or officer shall be subject to criminal prosecution and suffer the penalties provided by law.

(c) the outstanding credit accommodation which the Bank may extend to stockholders, other than the government of the Republic of the Philippines, its agencies and instrumentalities, owing more than two per cent (2%) or more of the subscribed capital stock of the Bank, shall be limited to an amount equivalent to their outstanding deposits and book value of their paid-in capital contribution in the Bank.

SEC. 6 Board of Directors. – The affairs and business of the Amanah Bank shall be directed and its property managed and preserved unless otherwise provided in this act, by a Board of Directors consisting of nine (9) members duly elected as herein provided, who shall in each session of the Board attended by them, be paid a per diem in such amount as the Board of Directors may fix.

SEC. 7 Elections of Board of Directors.- Annually on the first Monday of March, the stockholders shall meet to elect the members of the Board of Directors for the current year, each stockholder or proxy to be entitled to as many votes as he may have shares of stock, registered in his name on the fifteenth of February last preceding and held by him at the time of the election. Immediately after the election, the directorate shall organize as such and elect from amongst themselves a chairman, a vice-chairman who shall assist the chairman and act in his stead in case of absence or incapacity of the chairman. In case of incapacity of both, the chairman and/or vice-chairman of the Board of Directors shall designate a temporary chairman from among its members: Provided, That no director, shareholder or employee of any other bank shall eligible as member of the Board of Director: Provided, further, That no full-time appointive or elective public official shall at the same time serve as officer, director, legal counsel or consultant of the Bank except in cases where such service is in the exercise of the stockholders rights of the government or is incident to financial assistance provided by the government, its agencies or instrumentalities to the Bank.

SEC. 8. The Board of Directors shall, among other duties, powers, and authority:

(a) formulate policies necessary to carry out effectively the provisions of this Charter and adopt such by-laws, rules and regulations for the effective operation of the Bank, in conformity with this Act and existing laws; and

(b) establish, upon previous authority of the Central Bank, branches, agencies or offices in other countries and at such points within the Philippines, as it may deem advisable, which shall perform functions as may be delegated to them by the Board of Directors.

The Amanah Bank shall have the following officers: a president, or one or more vice-presidents, a secretary, a treasurer, an auditor and a legal counsel who shall be chosen by the Board of Directors, their tenure of office and compensation shall be determined by the Board of Directors. In making these appointments, preference shall be given to members of the cultural minorities.

SEC. 10. Duties and powers of the President. – The President of the Bank shall, among others, execute and administer the policies, measures, orders and resolutions approved by the Board of Directors and direct and supervise the operation and administration of the Bank.

(a) to male loans on commercial paper for periods of time not to exceed four months in sums not exceeding fifty thousand pesos to any one person, company, corporation or firm, but he is required to submit a report on each such loan to the Board of Directors at its next succeeding session.

(b) to make, with the advise and consent of the Board of Directors, all contracts on behalf of the Bank and to enter into all necessary obligations by this charter required or permitted.

(c) to report weekly to the Board of Directors and main facts concerning the operations of the bank during the preceding week and to suggest changes in the rates of discount, exchange, or of policy which may to him seem best.

SEC. 11. Other Officers and Employees. – All other officers and employees of the Bank shall be appointed and removed by the Board of Directors, on recommendation of the President. In making appointments, members of the cultural minorities shall be given preference. Said officers and employees shall not subject to the Civil Service Law, and their duties and compensation shall be fixed by the President with the Approval of the Board of Directors.

SEC. 12. Fidelity Bond for Officers and Employees.- The Board of Directors may require the officers and employees of the Bank and its branches, before entering upon the performance of their duties, to furnish a fidelity bond for the benefit of the Bank, in the form and amount prescribed by the said Board of Directors.

SEC. 13. Project Development Office. – The Amanah Bank shall have a Project Development Office which shall be responsible for the following:

(a) conduct periodic economic surveys and studies of the investment climate and opportunities in the Bank’s sphere of operations and identify the viable projects which may be sponsored by the people in the region;

(b) offer technical consultancy services and studies in the preparation of project studies and in meeting other technical credit requirements of the Bank, including the provision of management consultants rates to be determined by the Board of Directors to projects financially assisted by the Bank.

c) evaluate each project proposal for possible financing by the Bank.

SEC. 14 Auditing Office. – The Auditing Office of the Bank shall be headed by a representative of the Auditor General. All the other employees of the Office shall be appointed by the Directors of the Bank. The operating expenses, salaries and travel expenses of the employees of the Office shall be Payable by the Bank, and the Board of Directors shall make the necessary appropriations therefor. The representative of the Auditor General shall make a quarterly report on the condition of the Bank to the President of the Philippines through the Secretary of Finance, to the Auditor General and to the Board of Directors of the Bank. The report shall contain among others a statement of the resources and liabilities, including earnings and expenses, the amount of capital stock, dividends paid, surplus reserve, and undivided profits, as well as the losses, bad debts and suspended and overdue paper carried in the Bank’s assets as of the day in which the statements are complied.

MISCELLANEOUS PROVISIONS

SEC. 15. Government Shares,- The voting power of all stock of the Amanah Bank owned and controlled by the Republic of the Philippines shall be vested in the President of the Philippines, or in such person or persons as he may from time to time duly designate.

The stockholdings of the government in common or preferred shares with the Amanah Bank, or any part thereof, may be sold at par value at any time to citizens of the Philippines who are registered stockholders of the Amanah Bank in proportion to their respective holdings. They shall have a period of one year from the date of the offer to sell by the government within which to exercise this right. In the absence of such buyers, preference shall be given to Philippine citizens who are residents of the provinces by the Bank before the shares of stock may be publicly offered by listing in the stocks at any stock exchange.

All profits assigned as dividends to the share of the Government shall first be applied in payment to the unpaid subscriptions of the Government. Upon full payment of such subscriptions, the dividends shall thereafter be paid into the Treasury of the Philippines for the general funds thereof.

SEC. 16. Government Assistance on Documentation and Registration. – Any city or municipality judge in his capacity as notary public ex-officio, shall administer oath to or act upon the instruments of the Amanah Bank, its borrowers or mortgagors free from al charges, fees. and documentary stamp tax, collectible under existing laws, relative to any loan or transaction not exceeding five thousand pesos.

Any Register of Deeds shall accept from the Amanah Bank and its borrowers or mortgagors for registration free from all charges, fees, and documentary stamp collectible under existing laws, any instrument, whether voluntary or involuntary, relating to loans or transactions extended by the Bank in an amount not exceeding five-thousand pesos: Provided, however, that charges if any, shall only be collectible on the amount in excess of five thousand pesos; and that in instruments related to assignments of several mortgages consolidated in a single deed, charges or fees, if any, shall be levied only on the amount in excess of five thousand pesos of the consideration in the assignment of each mortgage.

SEC. 17. Prohibition. – No member of the Board of Directors, officers, attorney, agent or employee of the Bank shall in any manner, directly or indirectly participate in the deliberations upon the determination of any question affecting his personal interest, or the interests of any corporation, partnership, or association in which he is directly or indirectly interested. Any persons violating the provisions of this section shall be summarily removed from office.

No fee, commission, gift or charge of any kind shall be exacted, demanded or paid to any director, employee or agent of the Bank for obtaining loans from the Bank, and any director, officer, employee or agent of the Bank exacting, demanding or receiving any fee for services in obtaining a loan shall be summarily removed from office.

SEC 18. Supervision/Inspection by the Central Bank. – The Amanah Bank shall be subject to the examination and supervision of the Central Bank pursuant to applicable laws, and shall contribute to the Central Bank an annual fee to help defray the cost of maintaining the appropriate supervising department within the Central Bank in an amount to be determined by the Monetary Board but in no case to exceed one twentieth of one per cent (1/20 of 1%) of its total assets during the preceding year, as shown on its end-of-the month balance sheets, after deducting its cash on hand and amounts due banks, including the Central Bank.

SEC. 19. Confidential Information.- The Governor, Central Bank, officers of the Central Bank and other officials as may be designated by law or regulations of the Monetary Board to examine for the books for the Amanah Bank shall not reveal the results of any examination conducted by them to any person, government official, bureau or office other than the Monetary Board and the Board of Directors of the Amanah Bank. The reports and other papers relative to such information shall not be opened to the public except only for insofar as such publicity is necessary for the business of the Amanah Bank or is incidental to proceedings upon insolvency or persistent violation of law and regulations.

SEC. 20. Secrecy of Deposits.- All deposits of whatever nature with the Amanah Bank, including investments in bonds issued by the government of the Philippines, its political subdivisions and its instrumentalities, are hereby considered as of an absolutely confidential nature and may not be examined, inquired or looked into by any person, government official, bureau or office except upon written permission the depositor, or in any cases of impeachment, or upon order of a competent court in cases where the money deposited or invested is the subject matter of the litigation.

It shall be unlawful for any official or employee of the Amanah Bank to disclose to any person other than those mentioned above any information concerning said deposits.

SEC. 21. Repealing Clause.- Any law or part of law inconsistent with the provisions of this Charter is hereby repealed.

SEC. 22. This decree shall take effect immediately.

Done in City of Manila, this 2nd day of August, in the year of our Lord, nineteen hundred and seventy-three.

(Sgd.) FERDINAND E. MARCOS

President of the Philippines

By the President:

(Sgd.) ROBERTO V. REYES

Acting Executive Secretary

PRESIDENTIAL DECREE NO. 542

(Abolished by R.A. 6848)

AMENDING PRESIDENTIAL DECREE NO. 264,

CREATING THE PHILIPPINE AMANAH BANK

WHEREAS, Presidential Decree No. 264, dated August 2, 1073 was designed and intended principally to rehabilitate, develop, expand and promote the socio-economic conditions of the economically depressed provinces of Mindanao, particularly in the Muslim Provinces of North Cotabato, Maguindanao, Sultan Kudarat, Lanao del Norte, Lanao del Sur, Sulu, Tawi-Tawi, Zamboanga del Norte, and Zamboanga del Sur, and to provide more opportunities and incentives to the Muslim citizens of the Philippines, in actively and sincerely participating and getting involved in community development and nation-building;

WHEREAS, in order to render more effective the foregoing intentions and objectives of this Decree, it is necessary that the religious beliefs and practices of the Muslim citizens of the Philippines, be followed and respected, unless otherwise it is contrary to law, good morals and public policy.

NOW, THEREFORE, I , FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the constitution, do hereby amend Presidential Decree No. 264, as follows:

SEC. 1 Section 1 of Presidential Decree No. 264, creating the Amanah Bank, is hereby amended as follows:

“SEC. 1. Purpose, Name, Domicile and Basis.- To provide

credit, commercial, development and savings banking facilities at reasonable terms to the people of the primarily Muslim provinces in Mindanao, principally, the provinces of North Cotabato, Maguindanao, Sultan Kudarat, Lanao del Sur, Lanao del Norte, Sulu, Basilan, Zamboanga del Norte, Zamboanga del Sur and Palawan for the establishment, acquisition, development and expansion of agricultural, commercial and industrial enterprises, there is hereby created a body corporate to be known as the Philippine Amanah Bank, which shall have its principal place of business at Zamboanga City and shall exist for fifty years.

The Philippine Amanah Bank shall be based on the Islamic Concept of Banking, following the no-interest and partnership principles.”

SEC. 2. The third paragraph of section 15 of the same decrees is hereby amended to read as follows:

“All profits assigned as dividends to the shares of the government, and all remaining net profits of the bank after the payment of dividends to stockholders other than the government of the Philippines, its agencies or instrumentalities, if there is any, shall be transmitted to the Muslim Development Fund of the Philippine Amanah Bank.”

SEC. 3. All laws, decrees, orders, rules regulations or thereof inconsistent with this Decree are hereby repealed or modified accordingly.

SEC. 4. This Decree shall take effect immediately.

Done in the City of Manila, this 20th day of August, in the year of our Lord, nineteen hundred and seventy four.

(Sgd.) FERDINAND E. MARCOS

President of the Philippines

By the President:

(Sgd.) ALEJANDRO MELCHOR

Executive Secretary

 

 

 

 

 

 

 

 

 

 

 

 

 

 

There is a saying in law:

Ignorantia juris non excusat or Ignorantia legis neminem excusat. This is Latin for ignorance of the law does not excuse any person who is not aware of a law. It is a public policy holding that a person who is unaware of a law may not escape liability for violating a law. It also means that persons are presumed to have knowledge of the law.

Philippine’s biofuels law

Philippine’s Biofuels law

By Abdel Aziz Dimapunong (Abdel Azish Dimapunung)

Chancellor, Islamic Banking Research Institute

 

The Philippine’s Biofuels Act of 2006 has been signed into law during the recently concluded Asean Summit that was held in the city of Cebu, Philippines. The law is now in effect after its required publication. With its effectivity, the Philippines is now committed by law to reduce dependence on imported fuels with due regard to the protection of public health, the environment, and natural ecosystems. Under Section 5 of the said law, it is now mandatory that all liquid fuels for motors and engines sold in the Philippines shall contain locally-sourced biofuels components. All diesel fuels in the local market shall contain at least one percent biodiesel. This will gradually increase as per the schedule under the law. When the requirement for biodiesel rises to 2 percent – all gasoline products will also have 5 percent bioethanol and the mixture will rise to 10 percent bioethanol by 2010. By this time, the local market for biofuels could reach about US$420 million. This is a captive market considering that it is mandatory under the law.

The Philippines imported 91.471 million barrels of crude oil last 2003 and 37.04 million of oil products. The country’s oil import bill last 2005 amounts to US$ 4.1 billion. According to Index Mundi the oil imports of the Philippines in year 2003 were recorded at 312,000 bbl/day. By definition, this entry is the total oil imported in barrels per day (bbl/day), including both crude oil and oil products.

The country’s largest suppliers of crude oil had been Saudi Arabia, the United Arab Emirates and Iran. There is no denying that Iran today is on the spotlight. The question looms, what if the USA and Britain and their alliances invade Iran?

 

Presently, the country eyes Venezuela and Kuwait for oil imports. According to Energy Secretary Raphael Lotilla, the government is eyeing to get part of its oil requirements from other sources to help ensure a stable supply (that could be the answer to the uncertainties in Iran).

The country wants to diversify sources of crude supply but it has to do this in cooperation with the refiners in the country. Government is not into refining so that imports of crude oil have to be in tandem with the schedule of refiners. The country has two refineries: one is being run by Petron Corp. in Bataan with a capacity of 180,000 barrels per day and the other one is in Batangas which is run by Pilipinas Shell Petroleum Corp. with a capacity of 110,000 bpd. Lotilla also said that the government will continue to pursue the idea of stockpiling oil, an issue that was taken up in the East Asia Summit. There is a plan to pursue the development of a 30 million barrel strategic stockpile program. Possible stockpiling sites include the Coastal Subic Bay Oil Terminal with about 500,000 to 600,000 barrels of idle storage capacity which can be converted as oil stockpile. The other site is the Nonoc Terminal in Surigao.

On the renewable energy, it is expected that biofuels will be used not only in the Philippines but in all of Asia. The big markets, China and Japan are also pushing for the promotion of biofuels. These are the two big markets for renewable energy. During the recently concluded East Asia Summit early last month the Cebu Declaration of East Asian Energy Security was signed. It calls for the adoption of measures to improve energy efficiency and reduce dependence on fossil fuels. The Declaration was signed by the leaders of the 10 member Asean, Australia, China, India, Japan, New Zealand and South Korea. The Declaration urges member countries to expand the development of biofuels and other sources of alternative energy. Japan need not be urged. It is on top of biofuels interest. In the last Summit, Japan unveiled its US$ 2 billion package to assist Asian nations develops energy saving technology and reduces the regions’ dependence on traditional fossil fuel. China likewise need not be exhorted. It is already ahead in financing five ethanol projects in the Philippines, including one that has a capacity of 150,000 liters of ethanol per day. It has already announced its involvement in the development of 40,000 hectares of land for ethanol, the produce of which will be exported to China.

According to a Press Release by one Grande M Dianaton, incumbent chairman of Amanah Islamic Bank, a Joint Venture Agreement has already been signed up by the bank with ERA Petroleum Company Limited of Hong Kong. The agreement covers investments to the Islamic Bank and forward sales of biofuels to China thru the ERA Petroleum Company. ERA Petroleum Company is represented by its president, Mr. Abdul Gaffoor Ashroff who happens to be former president of the Amanah Islamic Bank.

The joint venture agreement is now finalized under the name of Biodix Biodiesel J.V. Work is underway to register Biodix with appropriate government agencies in the Philippines.

 

The Islamic Bank has also an agreement with Pacific Development Company of Hong Kong for promotion of its biofuels in Japan. Furthermore the bank is also negotiating with a group of investors from the oil-rich Dubai. This negotiation is course through the Amanah Islamic Bank representative office in California, U.S.A. under the direction of one of the banks directors, Mr. Manuel Peyton Maliwanag.

Is the Philippines ready to supply 10 percent bioethanol in relation to all gasoline products by year 2010? To some businessmen, this is just a pipe dream. But to the Amanah Islamic Bank, this could be a reality. This is the issue that is being addressed by the Islamic Bank. According to Grande Dianaton, incumbent chairman, the Bank has been making the preparations for the last five years. The production of biofuels, both bioethanol and Biodiesel are basically within the sphere of agro-industrial technology. As an agriculturist, “that is my line” Dianaton said. He added: “In terms of availability of suitable agricultural land, the Islamic Bank and the Filipino Muslim Chamber of Agriculture had already signed a Memo Agreement for one million hectares. The chamber of Agriculture is an association of agricultural landowners in the Autonomous Region of Muslim Mindanao. Dianaton goes on to say: “About six hundred thousand hectares had already been surveyed by our project counterpart from California, USA. Our international marketing for a forward sales contract for biofuels had already been finalized with our counterpart in Hong Kong.”

Below is a copy of the Philippines Biofuels Act of 2006.

Biofuels Act of 2006

CONGRESS OF THE REPUBLIC OF THE PHILIPPINES
THIRTEENTH CONGRESS
Third Regular Session

AN ACT TO DIRECT THE USE OF BIOFUELS, ESTABLISHING FOR THIS PURPOSE THE BIOFUEL PROGRAM, APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES

 

Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:

 

SECTION 1. Short Title. – This Act shall be known as the “Biofuels Act of 2006.”

 

SEC. 2. Declaration of Policy. – It is hereby declared the policy of the State to reduce dependence on imported fuels with due regard to the protection of public health, the environment, and natural ecosystems consistent with the country’s sustainable economic growth that would expand opportunities for livelihood by mandating the use of biofuels as a measure to: a) develop and utilize indigenous renewable and sustainably-sourced clean energy sources to reduce dependence on imported oil; b) mitigate toxic and greenhouse gas (GHG) emissions; c) increase rural employment and income; and d) ensure the availability of alternative and renewable clean energy without any detriment to the natural ecosystem, biodiversity and food reserves of the country.

 

SEC. 3. Definition of Terms. As used in this Act, the following terms shall be taken to mean as follows: a) AFTA – shall refer to the ASEAN Free Trade Agreement initiated by the Association of Southeast Asian Nations; b) Alternative Fuel Vehicles – shall refer to vehicles that use alternative fuels such as biodiesel, bioethanol, natural gas, electricity, hydrogen and automotive LPG, instead of gasoline and diesel; c) Bioethanol – shall refer to ethanol (C2H5OH) produced from feedstock, and other biomass; d) Biodiesel – shall refer to Fatty Acid Methyl Ester (FAME) or mono-alkyl esters derived from vegetable oils or animal fats and other biomass-derived oils that shall be technically proven and approved by the DOE for use in diesel engines, with quality specifications in accordance with the Philippine National Standards (PNS); e) Bioethanol Fuel – shall refer to hydrous or anhydrous bioethanol suitably denatured for use as motor fuel, with quality specifications in accordance with the PNS; f) Biofuel – shall refer to bioethanol and biodiesel and other fuels made from biomass and primarily used for motive, thermal and power generation, with quality specifications in accordance with the PNS; g) Biomass – shall refer to any organic matter, particularly cellulosic or ligno-cellulosic matter, which is available on a renewable or recurring basis, including trees, crops and associated residues, plant fiber, poultry litter and other animal wastes, industrial wastes, and the biodegradable component of solid waste; h) DA – shall refer to the Department of Agriculture created under Executive Order No. 116, as amended; i) DOE– shall refer to the Department of Energy created under Republic Act No. 7638, as amended; j) DOLE – shall refer to the Department of Labor and Employment created under Executive Order No. 126, as amended; k) DENR – shall refer to the Department of Environment and Natural Resources created under Executive Order No. 192, as amended; l) Diesel – shall refer to refined petroleum distillate, which may contain small amount of hydrocarbon or non-hydrocarbon additives to improve ignition quality or other characteristics, suitable for compression ignition engine and other suitable types of engine with quality specifications in accordance with the PNS; m) DOF – shall refer to the Department of Finance created under Administrative Order Nos. 127 and 127-A; n) DOST – shall refer to the Department of Science and Technology created under Republic Act No. 2067; o) DOTC – shall refer to the Department of Transportation and Communication created under Executive Order No. 125-A, as amended; p) DTI – shall refer to the Department of Trade and Industry created under Executive Order No. 133; q) Feedstock – shall refer to organic sources such as molasses, sugarcane, cassava, coconut, jatropha, sweet sorghum or other biomass used in the production of biofuels; r) Gasoline – shall refer to volatile mixture of liquid hydrocarbon, generally containing small amount of additives, suitable for use as a fuel in spark-ignition internal combustion engine with quality specifications in accordance with the PNS; s) Motor fuel – shall refer to all volatile and inflammable liquids and gas produced, blended or compounded for the purpose of, or which are suitable or practicable for, operating motor vehicles; t) MTBE – shall refer to Methyl Tertiary Butyl Ether; u) NBB or Board – shall refer to the National Biofuel Board created under Section 8 of this Act; v) Oil Company – shall refer to any entity that distributes and sells petroleum fuel products; w) Oxygenate – shall refer to substances, which, when added to gasoline, increase the amount of oxygen in that gasoline blend; x) PNS – shall refer to the Philippine National Standards; consistent with Section 26 of R.A. No. 8749, otherwise known as the “Philippine Clean Air Act of 1999”; y) Renewable Energy Sources – shall refer to energy sources that do not have an upper limit on the total quantity to be used. Such resources are renewable on a regular basis. z) WTO – shall refer to the World Trade Organization.

SEC. 4. Phasing Out of the Use of Harmful Gasoline Additives and/or Oxygenates. – Within six months from the effectivity of this Act, the DOE, according to duly accepted international standards, shall gradually phase out the use of harmful gasoline additives such as, but not limited to, methyl tertiary butyl ether (MTBE).

SEC. 5. Mandatory Use of Biofuels. – Pursuant to the above policy, it is hereby enacted that all liquid fuels for motors and engines sold in the Philippines shall contain locally-sourced biofuels components as follows:

5.1 Within two (2) years from the effectivity of this Act, at least five percent (5%) bioethanol shall comprise the annual total volume of gasoline fuel actually sold and distributed by each and every oil company in the country, subject to the requirement that all bioethanol blended gasoline shall contain a minimum of five percent (5%) bioethanol fuel by volume: Provided, That the ethanol blend conforms to PNS.

5.2 Within four (4) years from the effectivity of this Act, the NBB created under this Act is empowered to determine the feasibility and thereafter recommend to DOE to mandate a minimum of ten (10%) percent blend of bioethanol by volume into all gasoline fuel distributed and sold by each and every oil company in the country. In the event of supply shortage of locally-produced bioethanol during the four-year period, oil companies shall be allowed to import bioethanol but only to the extent of the shortage as may be determined by the NBB.

5.3 In lieu of the effectivity of this Act, immediately within three (3) months upon the signing which shall be promulgated upon the approval of this Act of the IRR, a minimum of one percent (1%) Biodiesel by volume shall be blended into all diesel engine fuels sold in the country: Provided that the Biodiesel blend conforms to PNS for biodiesel. Within two (2) years from effectivity of this Act, the NBB created under this Act is empowered to determine the feasibility and thereafter recommend to DOE to mandate a total of two percent (2%) blend of biodiesel by volume subject to domestic supply and availability of locally-sourced biodiesel component.

 

SEC. 6. Incentive Scheme. – To encourage investments in the production, distribution and use of locally-produced biofuels at and above the minimum mandated blends, and without prejudice to enjoying applicable incentives and benefits under existing laws, rules and regulations, the following additional incentives are hereby provided under this Act.

a) Specific tax. The specific tax on local or imported biofuels component, per liter of volume shall be zero (0). The gasoline and diesel fuel component shall remain subject to the prevailing specific tax rates.

b) Value Added Tax The sale of raw material used in the production of biofuels such as, but not limited to, coconut, jatropha, sugarcane, cassava, corn, and sweet sorghum shall be exempt from the value added tax.

c) Water Effluents All water effluents, such as but not limited to distillery slops from the production of biofuels used as liquid fertilizer and for other agricultural purposes are considered “reuse”, and are therefore, exempt from wastewater charges under the system provided under Section 13 of R.A. No. 9275, also known as the Philippine Clean Water Act: Provided, however, That such application shall be in accordance with the guidelines issued pursuant to R.A. No. 9275, subject to the monitoring and evaluation by DENR and approved by DA.

d) Financial Assistance Government financial institutions, such as the Development Bank of the Philippines, Land Bank of the Philippines, Quedancor and other government institutions providing financial services, shall in accordance with and to the extent allowed by the enabling provisions of their respective charters or applicable laws, accord high priority to extend financing to Filipino citizens or entities, at least sixty percent (60%) of the capital stock of which belongs to citizens of the Philippines that shall engage in activities involving production, storage, handling and transport of biofuel and biofuel feedstock, including the blending of biofuels with petroleum, as certified by the DOE.

 

SEC. 7. Powers and Functions of the Department of Energy. -In addition to its existing powers and functions, the DOE is hereby mandated to take appropriate and necessary actions to implement the provisions of this Act. In pursuance thereof, it shall within three (3) months from the effectivity of this Act:

a) Formulate the Implementing Rules and Regulations under Section 15 of this Act;

b) Prepare the Philippine Biofuel Program consistent with the Philippine Energy Plan and taking into consideration the DOE’s existing biofuels program;

 

c) Establish technical fuel quality standards for biofuels and biofuel-blended gasoline and diesel which comply with the PNS;

 

d) Establish guidelines for the transport, storage and handling of biofuels;

 

e) Impose fines and penalties against persons or entities found to have committed any of the prohibited acts under Section 12 (b) to (e) of this Act;

 

f) Stop the sale of biofuels and biofuel-blended gasoline and diesel that are not in conformity with the specifications provided for under Section 5 of this Act, the PNS and corresponding issuances of the Department; and

 

g) Conduct an information campaign to promote the use of biofuels.

SEC. 8. Creation of the National Biofuel Board (NBB). -The National Biofuel Board is hereby created. It shall be composed of the Secretary of the Department of Energy or his designated Undersecretary as Chairman and the Secretaries or the designated undersecretaries of the
Department of Trade and Industry (DTI), Department of Science and Technology (DOST), Department of Agriculture (DA), Department of Finance (DOF) and Department of Labor and Employment (DOLE), Philippine Coconut Authority (PCA), Sugar Regulatory Authority. The DOE Secretary or his designated Undersecretary, in his capacity as Chairperson, shall, within one (1) month from the effectivity of this Act, convene the NBB.

 

The Board shall be assisted by a Technical Secretariat attached to the Office of the Secretary or the Office of the Undersecretary of the DOE as the case maybe. It shall be headed by a Director to be appointed by the Board. The number of staff of the Technical Secretariat and the corresponding positions shall be determined by the Board, subject to approval by the Department of Budget and Management (DBM) and existing civil service rules and regulations.

 

SEC. 9. Powers and Functions of the NBB. – The NBB shall have the following powers and functions:

a) Monitor the implementation of, and evaluate for further expansion,
the National Biofuel Program prepared by the DOE pursuant to Section 7 (b) of this Act;

b) Monitor the supply and utilization of biofuels and biofuel-blends and
recommend appropriate measures in cases of shortage of feedstock
supply for approval of the Secretary of DOE. For this purpose:

1. The NBB is empowered to require all entities engaged in the production, blending and distribution of biofuels to submit reports of their actual and projected sales and inventory of biofuels, in a format to be prescribed for this purpose; and

2. The NBB shall determine availability of locally-sourced biofuels and recommend to DOE the appropriate level or percentage of locally-sourced biofuels to the total annual volume of gasoline and diesel sold and distributed in the country.

c) Review and recommend to DOE the adjustment in the minimum mandated biofuel blends subject to the availability of locally-sourced biofuels: Provided That the minimum blend may be decreased only within the first four (4) years from the effectivity of this Act. Thereafter, the minimum blends of five percent (5%) and one percent (1%) for bioethanol and biodiesel, respectively, shall not be decreased;

d) Recommend to DOE a program that will ensure the availability of alternative fuel technology for vehicles, engines and parts in consonance with the mandated minimum biofuel-blends, and to maximize the utilization of biofuels, including other biofuels.

e) Recommend to DOE the use of biofuel-blends in air transport taking into account safety and technical viability; and

f) Recommend specific actions to be executed by the DOE and other appropriate government agencies concerning the implementation of the National Biofuel Program, including its economic, technical, environment and social impact.

SEC. 10. Security of domestic sugar supply – Any provision of this Act to the contrary notwithstanding, the SRA, pursuant to its mandate shall, at all times, ensure that the supply of sugar is sufficient to meet the domestic demand and that the price of sugar is stable. To this end, the SRA shall recommend and the proper agencies shall undertake the importation of sugar whenever necessary and shall make appropriate adjustments to the minimum access volume parameters for sugar in the Tariff and Customs Code.

SEC. 11. Role of Government Agencies. – To ensure the effective implementation of the National Biofuel Program, concerned agencies shall perform the following functions:

a) The DOF shall monitor the production and importation of biofuels through the BIR and the BOC;

b) The DOST and the DA shall coordinate in identifying and developing viable feedstock for the production of biofuels;

c) The DOST through the Philippine Council for Industry and Energy Research and Development (PCIERD) shall develop and implement a research and development program supporting a sustainable improvement in biofuel production and utilization technology. It shall also publish and promote related technologies developed locally and abroad.

d) The DA through its relevant agencies shall:

(1) Within three (3) months from the effectivity of this Act, develop a
national program for the production of crops for use as feedstock
supply. For this purpose, the Administrators of the Sugar Regulatory
Administration (SRA) and the Philippine Coconut Authority, and other
DA-attached agencies shall, within their authority, develop and
implement policies supporting the Philippine Biofuel Program and
submit the same to the Secretary of the Department of Agriculture for
consideration;

(2) Ensure increased productivity and sustainable supply of biofuel
feedstocks. It shall institute a program that would guarantee that a
sufficient and reliable supply of feedstocks is allocated for biofuel
production;

(3) Publish information on available and suitable areas for cultivation
and production of such crops;

e) The Department of Labor and Employment shall:

a. Promote gainful livelihood opportunities and facilitate productive
employment through effective employment services and regulation;
b. Ensure the access of workers to productive resources and social
protection coverage; and

c. Recommend plans, policies and programs that will enhance the social
impact of the Philippines’ Biofuel Program.

f) The Tariff Commission, in coordination with the appropriate
government agencies, shall create and classify a tariff line for biofuels
and biofuel- blends in consideration of WTO and AFTA agreements.

g) The Local Government Units (LGUs) shall assist the DOE in
monitoring the distribution, sale and use of biofuels and biofuel-blends.

 

SEC. 12. Prohibited Acts. – The following acts shall be prohibited: a) Diversion of biofuels, whether locally produced or imported, to purposes other than those envisioned in this Act; b) Sale of biofuel-blended gasoline or diesel that fails to comply with the minimum biofuel-blend by volume in violation of the requirement under Section 5 of the Act; c) Distribution, sale and use of automotive fuel containing harmful additives and/or oxygenates at such concentration exceeding the limits to be determined by the NBB; d) Non-compliance with the PNS related to biofuels and established guidelines of the DOE adopted for the implementation of this Act; and e) False labeling of gasoline, diesel, biofuels and biofuel-blended gasoline and diesel.

 

SEC. 13. Penal Provisions. – Any person, who willfully aids or abets in the commission of a crime prohibited herein or who causes the commission of any such act by another shall be liable in the same manner as the principal. In the case of association, partnership or corporations, the penalty shall be imposed on the partner, president, chief operating officer, chief executive officer, directors or officers, responsible for the violation. The commission of an act enumerated in Section 12, upon conviction thereof, shall suffer the penalty of one (1) year to five (5) years imprisonment and a fine ranging from a minimum of One million pesos (P1,000,000.00) to Five million pesos (P5,000,000.00). In addition, the DOE shall confiscate any amount of such products that fail to comply with the requirements of Sections 4 and 5 of this Act, and implementing issuances of the DOE. The DOE shall determine the appropriate process and the manner of disposal and utilization of the confiscated products. The DOE is also empowered to stop the operation of businesses for refusal to comply with any order or instruction of the DOE Secretary in the exercise of his functions under this Act. Further, the DOE is empowered to impose administrative fines and penalties for any violation of the provisions of this Act, implementing rules and regulations and other issuances relative to this Act.

 

SEC. 14. Appropriations. – Such sums as may be necessary for the initial implementation of this Act shall be taken from the current appropriations of the DOE. Thereafter, the fund necessary to carry out the provisions of this Act shall be included in the annual General Appropriations Act.

 

SEC. 15. Implementing Rules and Regulations. – The DOE, in consultation with the NBB, the stakeholders and other agencies concerned, shall within three (3) months from the effectivity of this Act, promulgate the implementing rules and regulations of this Act: Provided, That prior to its effectivity, the draft of the implementing rules and regulations shall be posted at the DOE website for at least one (1) month, and shall be published in at least two (2) newspapers of general circulation.

 

SEC. 16. Congressional Oversight Committee. – Upon the effectivity of this Act, a congressional committee, hereinafter referred to as the Biofuels Oversight Committee is hereby constituted. The Biofuels Oversight Committee shall be composed of fourteen members, with the chairmen of the Committees on Energy of both Houses of Congress as co-chairmen of the oversight committee. The chairmen of the committees on Agriculture and Trade and Industry shall be ex-officio members. An additional four (4) members from each House, to be designated by the senate President and the Speaker of the House of Representatives, respectively. The minority shall be entitled to pro-rata representation but shall have at least one (1) representative in the Biofuels Oversight Committee.

 

SEC. 17. Benefits of Biofuel Workers. – This Act shall not in anyway result in the forfeiture or diminution of the existing benefits enjoyed by the sugar workers as prescribed under R.A. No. 6982, or the Sugar Amelioration Act of 1991, in case sugarcane shall be used as feedstock. The NBB shall establish a mechanism similar to that provided under the Sugar Amelioration Act of 1991 for the benefit of other biofuel workers.

 

SEC. 18. Special Clause. – This Act shall not be interpreted as prejudicial to clean development mechanism (CDM) projects that cause carbon dioxide (CO2) and greenhouse gases (GHG) emission reductions by means of biofuels use.

 

SEC. 19. Repealing Clause. – The provisions of Section 148 (d) of R.A. No. 8424, otherwise known as Tax Reform Act of 1997; and all other laws, presidential decrees or issuances, executive orders, presidential proclamations, rules and regulations or parts thereof inconsistent with the provisions of this Act, are hereby repealed, modified or amended accordingly.

 

SEC. 20. Separability Clause. – If any provision of this Act is declared unconstitutional, the same shall not affect the validity and effectivity of the other provisions hereof.

 

SEC. 21. Effectivity. – This Act shall take effect fifteen (15) days after its publication in at least two (2) newspapers of general circulation.