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REPUBLIC ACT NO. 7181
AN ACT EXTENDING THE LIFE OF THE
COMMITTEE ON PRIVATIZATION AND
THE ASSET PRIVATIZATION TRUST.
SECTION 1. The term of the
Committee on Privatization and the
Asset Privatization Trust created
by Proclamation No. 50 "Proclaiming
and Launching a Program for the
Expeditious Disposition and
Privatization of Certain Government
Corporations and/or the Assets
thereof, and Creating the Committee
on Privatization and the Asset
Privatization Trust" is hereby
extended from December 8, 1991 to
August 31, 1992 and thereafter may
be again extended by the President
of the Philippines for not more than
sixteen (16) months.chan robles
virtual law library
During the said extension period,
the Committee on Privatization and
the Asset Privatization Trust shall
continue to exercise the powers,
duties and responsibilities provided
under Proclamation No. 50:
Provided, That all disposition of any
and all assets shall be exclusively
and solely for cash, including sales
by installments, subject to the
provisions of the Comprehensive
[REPUBLIC ACT NO. 7661]
AN ACT AMENDING REPUBLIC ACT
NUMBERED SEVEN THOUSAND ONE
HUNDRED AND EIGHTY-ONE, ENTITLED
AN ACT EXTENDING THE LIFE OF THE
COMMITTEE ON PRIVATIZATION AND
ASSET PRIVATIZATION TRUST
Be it enacted by the Senate and House of
Representatives of the Philippines in
Congress assembled:
SECTION 1. Section 1 of Republic Act No.
7181 is hereby amended to read as follows:
SECTION. 1. The term of the Committee on
Privatization and the Asset Privatization Trust
created by Proclamation No. 50 Proclaiming
and Launching a Program for the Expeditious
Disposition and Privatization of Certain
Government Corporations and/or the Assets
thereof, and Creating the Committee on
Privatization and the Asset Privatization Trust
is hereby extended from December 31, 1993
to June 30, 1995, Provided, That prior to the
beginning of its extended term on January 1,
1994, the President may appoint new
members of the Asset Privatization Trust.
During the said extension period, the
Committee on Privatization and the Asset
Privatization Trust shall continue to exercise
the powers, duties and responsibilities
provided under Proclamation No. 50, as
amended, Provided, That all disposition of
any and all assets shall be primarily for
cash: Provided, however, that the use of
government financial instruments and sales
by installment may be allowed: Provided,
further, That the Committee on Privatization
shall serve as the central agency of the
privatization program and, accordingly, is
REPUBLIC ACT NO. 7886
AN ACT EXTENDING THE TERM OF
THE COMMITTEE ON PRIVATIZATION
AND THE ASSET PRIVATIZATION
TRUST AMENDING FOR THE
PURPOSE REPUBLIC ACT NUMBERED
SEVEN THOUSAND SIX HUNDRED
SIXTY-ONE.
Section 1. Sec. 1 of Republic Act
No. 7661 is hereby amended to read
as follows:
"Sec. 1. The term of the Committee on
Privatization and the Asset Privatization
Trust created by Proclamation No. 50
'Proclaiming and Launching a Program
for the Expeditious Disposition and
Privatization of Certain Government
Corporation and/or the Assets thereof
and Creating the Committee on
Privatization and the Asset Privatization
Trust' is hereby extended from July 1,
1995 to December 31, 1999. Provided,
That prior to the beginning of its
extended term on July 1, 1995, the
President may appoint new members of
the That prior to the beginning of its
extended term on July 1, 1995, the
President may appoint new members of
the Asset Privatization Trust. Provided,
however, That with the exception of the
chief executive trustee two (2) of the
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Agrarian Reform Law.cralaw
All assets held by the Assets
Privatization Trust, all moneys and
other properties belonging to it, and
all its liabilities outstanding upon the
expiration of its terms shall revert to
and be assumed by the National
Government. The President of the
Philippines shall designate by an
executive order the government
office or entity to which the assets
and liabilities of the Assets
Privatization Trust shall be
transferred.cralaw
All cash advances and all unsettled
obligations owed to the Government
by the officers and employees of the
Committee on Privatization or the
Asset Privatization Trust, as finally
determined by the proper agency or
court of law, must be liquidated on
or before August 31, 1992.
further empowered:
(a) To designate the disposition entity for all
assets intended for privatization, including all
assets and properties recovered by the
Presidential Commission on Good
Government (PCGG) and government idle
properties; and
(b) When necessary, to appoint a
representative to the governing board of a
government corporation or corporation with
government transferred assets which has
been identified for privatization who shall, for
the purpose of facilitating privatization, have
the powers and privileges of a member of
such board, except the right to vote: Provided,
That such appointee shall not receive any
additional salary or emolument by reason of
such appointment; Provided, further, that the
appointee shall not be eligible for employment
in any capacity whatsoever in the said
corporation within two (2) years after
privatization.
Upon the effectivity of this Act, all receipts
from the sale of assets of the Asset
Privatization Trust shall be remitted to the
National Treasury in the following proportion:
sixty percent (60%) to the special account of
the Agrarian Reform Fund and forty percent
(40%) to the general fund: Provided, however,
That within the ten year period of
implementation of the Comprehensive
Agrarian Reform Program the total initial
amount of Fifty billion pesos
(P50,000,000,000) shall be satisfied and
completed from all sources pursuant to the
pertinent provisions of Republic Act No. 6657
and Executive Order No. 229, dated July
1987: Provided, further, That except for
incumbent associate executive trustees
shall have a term ending on June 30,
1996 and the remaining two (2) shall
have a term ending on December 31,
1999
"There shall be no disposition of
properties during the last three (3)
months of the term which shall be
devoted exclusively to the liquidation of
the Asset Privatization Trust and the
Committee on Privatization and
preparation for turnover of its assets,
records and properties to the Office of the
President who shall create a special
committee to handle the same.
xxx xxx xxx
"All cash advances and all unsettled
obligations incurred after the effectivity of
this law by the officers and employees of
the Committee on Privatization or the
Asset Privatization Trust, as finally
determined by the proper agency or court
of law, must liquidated or before
December 31, 1999
"c) The decision of the Asset Privatization
Trust and the Committee on Privatization
on the sale and disposition of assets shall
be final without need of concurrence by
the owner and/or the custodial agency or
corporation of the asset."
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Sec. 2. The following conditions
shall be adhered to in
privatization: chan robles virtual law
library
(a) In the disposition of assets in
corporate form, there shall be no
undue dislocation of labor unless all
benefits as provided by existing laws
or Collective Bargaining Agreement
Insurance System and the Social Security
System, all government-owned or -controlled
corporations shall remit to the National
Government at least fifty percent (50%) of the
net proceeds derived from the sale of shares
or assets effective October 1, 1992: Provided,
finally, That net proceeds shall mean gross
proceeds less related liabilities and selling
expenses.
All assets held by the Asset Privatization
Trust, all moneys and other properties
belonging to it, and all its liabilities
outstanding upon the expiration of its term
shall revert to and be assumed by the
National Government. The President of the
Philippines shall designate by an executive
order the government office or entity to which
the assets and liabilities of the Asset
Privatization Trust shall be transferred.
All cash advances and all unsettled
obligations incurred after the effectivity of this
law by the officers and employees of the
Committee on Privatization or the Asset
Privatization Trust as finally determined by the
proper agency or court of law, must be
liquidated on or before June 30, 1995.
SEC. 2. Section 2 of the same Act is hereby Sec. 2. Sec. 2 of the same Act is
amended to read as follows: hereby amended to read as follows:
SEC. 2. The following conditions shall be
adhered to in privatization:
(a) In the disposition of assets in corporate
form, there shall be no undue dislocation of
labor unless all benefits as provided by
existing laws or Collective Bargaining
Agreements (CBA) shall be complied
with: and Provided, That the old qualified
personnel shall be given preference in the
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(CBA) shall be complied with.
chan robles virtual law library
(b) Assets for disposal shall not
revert to previous owners who after
final judgment by the proper agency
or a court of law have been found to
have mismanaged or diverted the
resources of the assets which
resulted in loss and bankruptcy:
Provided, That if assets are to be
reverted back to the previous
owners, the price shall not be less
than the original transfer price.
(c) Privatization of Government
assets classified as a strategic
industry by the National Economic
and Development Authority shall
first be approved by the President of
the Philippines.
(d) A minimum of ten (10) percent of
the sale of assets in corporate form
shall first be offered to small local
investors including Filipino Overseas
Workers and where practicable also
in the sale of any physical asset.
(e) Sale of all assets shall be
published in at least three (3)
national newspapers of general
circulation for three (3) consecutive
days:Provided, That the first
publication shall occur at least ten
(10) days prior to the scheduled
bidding date or date of negotiation.
(f) A loss recovery provision must be
hiring of new personnel by the new owners.
(b) Assets for disposal shall not revert to
previous owners who after final judgment by
the proper agency or a court of law, have
been found to have mismanaged or diverted
the resources of the assets which resulted in
loss and bankruptcy: Provided, That if assets
are to be reverted back to the previous
owners, the price shall not be less than the
original transfer price.
(c) Privatization of government assets
classified as a strategic industry by the
National Economic and Development
Authority (NEDA) shall first be approved by
the President of the Philippines.
(d) The disposition of assets shall be
governed by an abiding concern to expand
the ownership base of property.
(e) In the disposition of assets, due regard for
improving competition in business and
preventing the creation or perpetuation of
monopolies and cartels shall be made.
(f) A minimum of ten percent (10%) of the
sale of assets in corporate form shall first be
offered to small local investors, including
Filipino overseas workers and, where
practicable, also in the sale of any physical
assets.
(g) Sale of all assets shall be published in at
least three (3) national newspapers of general "Sec. 2. (f) In the best interest of
circulation for three (3) consecutive the government and the small local
days: Provided, That the first publication shall investors and for the development
occur at least ten (10) days prior to the of the domestic capital market, no
scheduled bidding date or date of offer of sale to large investors shall
negotiation.
be undertaken until after a minimum
of ten percent (10%) of the sale of
assets in corporate form shall have
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included in the terms and conditions
of the sale of any asset sold below
the transfer price.
been offered to small local investors,
including Filipino overseas workers.
"Where this is not practicable or in
the best interest of the public, at
least ten percent (10%) in any event
shall be reserved for small local
investors to be offered to them at
the same price within one hundred
twenty (120) days from the approval
of the sale. This rule shall likewise
apply when there are no takers, in
whole or in part, when the first offer
was made. The Committee on
Privatization shall formulate
guidelines that provide specific
preference for such small local
investors.
"In the case of physical or indivisible
assets, the Committee on
Privatization, whenever practicable,
shall require the buyer of the assets
to offer for sale to their employees
or to small local investors, overseas
contract workers, or the general
public directly or through the stock
exchange, shares of stocks in the
corporation equivalent to at least or
a minimum of ten percent (10%) of
the value of the assets
acquired: Provided, That the Social
Security System and the
Government Service Insurance
system shall grant loans to qualified
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Sec. 3. In line with paragraph 1 of
Article IX (d) of the Constitution, the
Commission on Audit shall impose or
adopt temporary pre-audit and such
measures that are necessary and
appropriate to correct such
deficiencies in the control system of
the Asset Privatization Trust as may
be found by the Commission on
Audit.
Sec. 4. Lawsuits pending at the
termination of the existence of the
Asset Privatization Trust shall be
pursued by the Office of the
Government Corporate Counsel until
their proper termination in the name
employees of the firms under
privatization who would like to avail
the ten percent (10%) stock offering
as provided in this Section."
SEC. 3. The same Act is hereby amended by Sec. 3. Upon the expiration of the
inserting between Sections 2 and 3 thereof a term of the Committee on
new section to read as follows: Privatization and the Asset
SEC. 2-A. No court or administrative agency Privatization trust, all their powers,
in the Philippines shall issue any restraining
functions, duties and
order or writ of preliminary injunction against
the Asset Privatization Trust or the Committee responsibilities, all properties, real or
on Privatization and any of its duly designated personal, assets, equipment and
disposition entities in connection with the records, as well as all their
acquisition, sale or disposition of assets obligations and liabilities, shall
pursuant to Proclamation No. 50, nor shall devolve upon the Office of the
order or writ be issued against the purchaser President.
of assets sold or disposed by the Trust, the
Committee, or the disposition entities to
prevent such purchaser from taking
possession of such assets.
In the event that any court or administrative
agency issues a permanent restraining order
or writ of injunction against the Trust, the
Committee, and the disposition entities or the
purchaser, as the case may be, secure the
immediate lifting of such order or writ by filing
with the judge or clerk of court a bond in an
amount equal to that of the bond posted by
the applicant of the order or writ.
Sec. 4. All laws, orders, decrees,
proclamations, rules and regulations
or parts thereof which are
inconsistent with any of the
provisions of this Act are hereby
repealed or modified accordingly.
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of or on behalf of the Government.

Sec. 5. Any officer or employee who Sec. 5. This Act shall take effect
fails to comply with the provisions of after its publication in two (2)
this Act, after having been found newspapers of general circulation.
guilty by the proper agency or court
of law shall be barred from holding
any position in the Government
including government-owned or
controlled corporations, without
prejudice to other sanctions as may
be provided by existing laws.

Sec. 6. The provisions of Section 3

and 10 of Proclamation No. 50, in SEC. 4. Section 6 of the same Act is hereby
particular, all other provisions of the amended to read as follows:
Proclamation as well as other laws,
orders, promulgations, rules and SEC. 6. The provisions of Sections 3, 10, 31,
regulations or parts thereof, which and 34 of Proclamation No. 50, as amended
in particular, all other provisions of the
are inconsistent herewith are hereby
proclamation as well as other laws, orders,
amended, repealed or modified promulgations, rules and regulations or parts
accordingly thereof, which are inconsistent herewith, are
hereby amended repealed or modified
accordingly. All other provisions of the
proclamation which are not otherwise in
conflict with any provision hereof shall remain
valid and in full force and effect.
Sec. 7. Implementing guidelines
and regulations shall be issued by
the Committee on Privatization to
fully implement this Act within forty-
five (45) days from date of approval
of this Act.
Sec. 8. This Act shall take effect
immediately upon its publication in
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at least one (1) national newspaper

of general circulation. The effectivity
of this Act shall retroact and relate
back to December 8, 1991.