Republic Act No. 4186

 

 

AN ACT

TO FURTHER AMEND REPUBLIC ACT NUMBERED TWENTY HUNDRED AND FORTY-SIX, ENTITLED “AN ACT CREATING A PUBLIC CORPORATION TO BE KNOWN AS THE COMMUNICATIONS AND ELECTRICITY DEVELOPMENT AUTHORITY, CAVITE

 

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

 

SECTION 1.  Section two of Republic Act Numbered Twenty hundred and forty-six, is amended by amending subparagraph (j) thereof and adding thereto subparagraphs (n), (o), (p) and (q) which shall read as follows:

 

“(j) When essential to the proper administration of its corporate affairs or when necessary for the proper transaction of its business or for carrying out the purposes for which it was organized, to contract indebtedness, locally or from foreign governments or financing institutions, and issue bonds, subject to the approval of the Provincial Governor of Cavite and the Secretary of Finance.  The government of the Republic of the Philippines hereby guarantees the payment of both the principal and interest of the indebtedness incurred by the Communications and Electricity Development Authority (CEDA), Cavite, with foreign governments or financing institutions.  The bonded indebtedness of the Authority, of all classes, shall not at any time exceed fifty million pesos, and the issue thereof shall be subject to the conditions set forth in Section five of this Act;

 

“(n) When requested in a resolution of a municipality of an adjoining province, to extend its facilities and services beyond the zone of jurisdiction mentioned in Section one of this Act;

 

“(o) To acquire and own equipment and materials needed in the implementation of its electrification and communications projects without cost under Republic Act Numbered Seventeen hundred and eighty-nine;

 

“(p) To issue and sell shares of stock to its consumers and local governments within its zone of jurisdiction:  Provided, That when such shares of stocks already constitute fifty per centum of the value of the Authority, the stockholders shall be entitled to elect the members of the board representing the consumers:  Provided, further, That no consumer shall own a share of more than one-tenth of one per centum of the Authority.

 

“(q) To enter into agreements with other power agencies, whether privately or government owned, for the latter to supply the authority with electric power that it may need and for the authority to channel to the other power agencies such excess electric power as it may generate from its plants.”

 

SEC. 2.  Paragraphs (a), (b), (c), (d), and (e) of Section three of the same Act are amended to read as follows:

 

“(a) Chairman-General Manager.  – The Chairman shall be appointed by the Provincial Governor of Cavite, with the consent of the Public Service Commission, and may be removed for cause by the Public Service Commission.  He shall, as ex officio General Manager of the Authority, represent the Authority in all its business matters; shall submit to the Board an annual report and such partial reports as may be required by it or he may see fit to render from time to time, regarding the condition of the business, or of any part of the business of the Communications and Electricity Development Authority, Cavite, and shall perform such other executive duties as may be prescribed by law or may be required of him by resolution of the Board.

 

“(a-1) Assistant General Managers.  – There shall be two Assistant General Managers.  One of them, who shall at least be an electrical engineer, shall be in-charge of operation and shall be appointed by the Provincial Governor of Cavite with the consent of the National Power Board and may be removed for cause by the said National Power Board.  The other, who shall at least be a lawyer-accountant; shall be in-charge of business management and administration and shall be appointed by the Provincial Governor of Cavite with the consent of the Public Service Commission and may be removed for cause by the Public Service Commission.  They shall both be entitled to sit and take part in the meetings of the Board; but may not vote:  Provided, however, That the Board shall designate which of the two Assistant General Managers shall act as Chairman-General Manager in case of the temporary disability or absence of the regular incumbent, and in such case, the Assistant General Manager so chosen shall have the right to vote in the absence or disability of the Chairman-General Manager.

 

“(b) Board Member-Engineer.  – One member of the Board shall at least be an electrical engineer, who shall be appointed by the Provincial Governor of Cavite with the consent of the National Power Board, and may be removed for cause by the said National Power Board.  He shall perform such other duties as may be required of him by the Board.

 

“(c) Board Member-Treasurer.  – One member of the Board shall possess knowledge of business management and finance, who shall be appointed by the Provincial Governor of Cavite, with the consent of the Board of Directors of the Development Bank of the Philippines, and may be removed for cause by the said Board of Directors.  He shall, as ex-officio treasurer of the Authority, perform such duties as may be required of him by the Board or by the General Manager.

 

“(d) The two other members of the Board, who shall represent the consumers, shall be appointed by the Provincial Governor of Cavite, upon election by the city and municipal mayors of Cavite in meeting assembled, and shall hold office for five years unless otherwise removed for cause by the Provincial Governor of Cavite Provided, That at any time fifty percent of the capital of the Authority is owned by stockholders and local governments as provided in Section two, paragraph (p) of this Act, the Board may change the procedure for selecting the board members mentioned in this paragraph.

 

“(e) Auditor.  – The Provincial Auditor of Cavite, who is hereby designated as ex-officio Auditor of the Communications and Electricity Development Authority, Cavite, shall be the representative of the Auditor GeneralProvided, That upon request of the Board of Directors of the Authority, the Auditor General may appoint a regular auditor.  He shall be the chief of its auditing and accounting department.  He shall audit, examine and settle all accounts of the Communications and Electricity Development Authority, Cavite, according to existing law and regulations, and shall perform such other duties as the Auditor General or the Board may require of him from time to time.”

 

SEC. 3.  Section four of the same Act is amended to read as follows:

 

“SEC. 4.  First meeting of the Board; quorum; votes necessary, in general, for adoption of resolutions; secretary of the Board and his salary, annual reports, – The Chairman of the Board shall, immediately after the formation thereof, fix a time and place for the first meeting, at which the Board shall adopt rules of procedure and fix a time and place for holding regular meetings.

 

A majority of the members of the Board shall constitute a quorum for the transaction of business, and three affirmative votes shall be necessary for the adoption of any resolution or motion, except as herein otherwise provided.

 

“The Board shall appoint its secretary and fix his salary.

 

“The Board shall render annual reports to the Provincial Governor of Cavite, the Public Service Commission, the National Power Corporation and the Development Bank of the Philippines.”

 

SEC. 4.  Section six of the same Act is amended to read as follows:

 

“SEC. 6.  Acquisition by the Communications and Electricity Development Authority, Cavite, of franchises and serviceable equipment of electric operators.  – Upon resolution of the Board of Directors and approval by the Provincial Governor of Cavite, the Communications and Electricity Development Authority, Cavite, may acquire by purchase all serviceable equipment and franchises of electric operators within the zone of jurisdiction of the Authority.  The chief of the Mechanical-Electrical Division of the Bureau of Public Works, the chief of the Investigation and Planning Division of the National Power Corporation, or their authorized representatives, and an electrical engineer to be designated by the Board of Directors of the Development Bank of the Philippines, shall constitute the appraisal committee.  The acquisition cost to be fixed by the appraisal committee shall be subject to the approval of the Public Service Commission sitting en banc.”

 

SEC. 5.  Section seven of the same Act is amended to read as follows:

 

“SEC. 7.  Fixing, charging and collection of rates.  – The Communications and Electricity Development Authority, Cavite, is hereby authorized to fix, charge and collect rates for all services rendered in each sector, city, municipality, or group of consumers, whether to any person, corporation, firm, government body, municipal entity or religious or charitable institutions, subject to review by the Public Service Commission.  Services to any consumer who fails to pay his bill for two months shall immediately be disconnected, and shall so remain disconnected until payment of the amount due is made.  Any officer or employee of the Authority who knowingly neglects or refuses to take the herein required step against a delinquent consumer shall be punished by a fine of an amount equivalent to five times the amount of the uncollected bill without prejudice to other disciplinary actions that might be warranted by the offense.

 

“The Authority shall exist as an independent agency of the Government under the Public Service Commission for administrative purposes only.”

 

SEC. 6.  The same Act is hereby further amended by-inserting between Sections ten and eleven the following new section and changing the numbers of the subsequent sections accordingly:

 

“SEC. 11.  Damage and penalties.  – The penalty of arresto mayor in its medium and maximum periods shall be imposed upon any person who shall maliciously damage any integral part of the electric or communications system of the Communications and Electricity Development Authority (CEDA), Cavite.

 

“If the damage shall result in the failure to communicate with the police, fire department, hospital or similar agencies in times of emergencies, or in the disruption of other essential public services, the penalty next higher in degree shall be imposed.”

 

SEC. 7.  If any part or section of this Act or of the Charter of the Communications and Electricity Development Authority shall be declared unconstitutional, such declaration shall not invalidate the other provisions thereof.

 

SEC. 8.  This Act shall take effect upon its approval.

 

Approved, May 4, 1965

 

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