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 Section 26, Article XVIII of the 1987 Constitution and those voluntarily surrendered to the PCGG.
NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, by virtue of the powers vested in me by the sovereign will of the Filipino people and the Constitution do hereby order:
Sec. 1. Creation of Authority. There is hereby created a Sequestered Assets Disposition Authority, hereinafter referred to as the Authority, composed of one (1) Chairman and four (4) members, who are of good moral character and unquestionable integrity, to be appointed by the President.
The Authority shall be under the administrative supervision of the Office of the President.
In view of the limited life of the Authority, the emoluments and other benefits of the Chairman, members and its support staff, as well as its staffing pattern, shall be fixed by, and submitted to the President for approval by the Chairman and members and shall be exempt from the OCPC and other eligibility requirements of the Civil Service Commission.
Sec. 2. Coverage. The Authority shall formulate and implement a program for the disposition of assets, business enterprises or corporations transferred to the Authority by the PCGG or pursuant to a decision of a court of law with competent jurisdiction involving sequestered assets prescribed by Section 26, Article XVIII of the 1987 Constitution.
Sec. 3. Powers and Functions. The Authority shall have the following powers and functions:
a) To dispose of or authorize, subject to the approval of the President, the disposition of such assets transferred to the Authority to any party and on such terms as are in the best interest of the National Government; for such purpose to execute and deliver on behalf and in the name of the National Government such deeds of sale, contracts, and other instruments as may be necessary or appropriate to convey title to such assets;
b) To take title to, and possession of, and to take such steps as may be necessary to conserve assets transferred to the Authority by the PCGG or by a Court of law, including, without limitation, to oversee the management and operation of corporations or business constituting such assets, and to file suits and institute proceedings on behalf and in the name of the National Government for the recovery and protection of such assets;
c) Subject to the prior approval of the President, to undertake the rehabilitation of such assets in instances where such rehabilitation is necessary, to conserve the value of such assets or permit their sale;
d) To engage such external expertise as may be necessary to fulfill its task;
e) To lease or own real and personal property to the extent required or entitled by its functions; to borrow money and incur such liabilities as may be reasonably necessary to permit it to carry out the responsibilities imposed upon it under this Order; to receive and collect interest, rent and other income from the corporations and assets held by it and to exercise in behalf of the National Government and to the extent authorized by the President, in respect of such corporations and assets, all rights, powers and privileges of ownership including the ability to compromise and release claims or settle liabilities, and otherwise to do and perform any and all acts that may be necessary or proper to carry out purposes of this Order: Provided, however, That any borrowing of the Authority shall be subject to the prior approval of the President; and
f) To issue such policies, guidelines, rules and regulations to implement the objectives of this Executive Order, subject to the approval of the President.
Sec. 4. Staff Support. The Authority shall have a technical staff support, the organization and structure of which shall be subject to the approval of the Office of the President (OP), Civil Service Commission (CSC) and the Department of Budget and Management (DBM).
Sec. 5. Exemptions from Taxes, Fees and Other Charges. The provisions of any law to the contrary notwithstanding, the Authority 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 the Authority and/or from the National Government to a private acquisition or buyer imposed by the National Government or any subdivision thereof: Provided, That in cases where government institutions acquired the said assets by foreclosure, the non-payment of similar taxes, fees, charges, imposts, and assessments shall not be a bar to the consolidation of title in the foreclosing institutions and the subsequent passing of title to the Authority.
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. 6. Audit. Generally accepted accounting and auditing rules and regulations shall be observed in the recording of the transactions of the Authority.
Sec. 7. No Injunction. The provisions of any law to the contrary notwithstanding, no restraining order, temporary or permanent injunction shall be issued by any court, agency or body for the purpose of preventing the Authority, its agents or employees:
a) from taking possession of, consolidating title to, or disposing of, assets transferred to the Authority under terms of this Order; or
b) from foreclosing upon security or exercising any other right or remedy available to the Authority under law or contract, to enforce the payment of obligations acquired by the Authority hereunder.
No restraining order, temporary or permanent injunction shall be issued by any court, agency or body to prevent any purchaser of assets sold by the Authority pursuant to this Order from taking possession of, taking or consolidating title to or disposing of such assets except where the restraining order, temporary or permanent injunction sought by the Authority itself. which are inconsistent with any of the provisions of this Executive Order are hereby repealed or modified accordingly.
Sec. 14. Effectivity. This Executive Order shall take effect immediately. lawphi1.net
DONE in the City of Manila, Philippines, this 25th day of July in the year of Our Lord, nineteen hundred and eighty-seven.
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