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[PRESIDENTIAL DECREE NO. 623, (1974-12-26)](
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[ PRESIDENTIAL DECREE NO. 623, December 26, 1974 ]


WHEREAS, the recent international events which unleashed economic dislocations on all sectors of the national economy including that of the coconut industry indicate an imperative need for the Government to pursue through a single agency definite development plans in the coconut industry aimed at improving the economic status of the coconut and other palm oil farmers and assuring domestic consumers with a continuous supply of coconut-based products at reasonable prices; and

WHEREAS, to insure that the aforesaid objectives and purposes are pursued there is need to re-organize the Governing Board of the Philippine Coconut Authority by including in its composition the required management and financial expertise and directing the implementation of definite plans calculated to promote the growth and development to the coconut industry:

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers in me vested by the Constitution, do hereby decree the further amendment of Presidential Decree No. 232, as follows:

SECTION 1. Section 4 of Presidential Decree No. 232, as amended by Presidential Decree No. 271, is hereby amended and changed to read as follows:

"SEC. 4. Governing Board. — The corporate powers and duties of the Authority shall be vested in, and exercised by a Board, to be composed of seven members, to wit: The Chairman, who shall act as the Chairman of the Board, and the President, both of the Philippine National Bank, who shall be ex-officio members, and the remaining five members, to be appointed by the President, from the recommendations of the following:

  1. Three members recommended by the Philippine Coconut Producers Federation;
  2. One member recommended by the United Coconut Associations of the Philippines; and
  3. One member recommended by the owner and operator of the hybrid coconut seednut farm authorized to be established under Section 3-B hereof.

"A representative of foreign organizations, associations or entities, or a foreign expert, of recognized competence and experience in the development and production of hybrid coconut palm tree shall act as an adviser and participate in the deliberations of the Board: Provided, That said adviser shall not be entitled to vote on any matter taken by the Board.

"The Board shall elect from among their members a Vice-Chairman who shall assume the functions of the Chairman, whenever the latter is absent or incapacitated.

"The Board shall meet at least once a month and the members shall each receive, for each meeting actually attended, a per diem of two hundred pesos: Provided, That such per diems shall not exceed one thousand pesos during any month for each member.

"The Board shall have the following additional powers and duties:

  1. To direct and manage the affairs of the Authority;
  2. To prepare and adopt an annual budget which, notwithstanding any law or regulation to the contrary, shall not be subject to approval by the Budget Commission; and
  3. To establish the internal organization of the Authority and fix the salaries and other compensation of its officers and employees;"

SEC. 2. Section 5 of the same decree is hereby amended and changed to read as follows:

"SEC. 5. Personnel. — The chief executive officer of the Authority shall be the Administrator assisted by such Deputy Administrators as the Board may prescribe, all of whom shall be appointed, or removed, by the Board and delegated with such powers and duties as it may prescribe.

"The Board may establish such departments as it may be convenient for the discharge of its duties: Provided, That only one agronomical research department shall be created with the following responsibilities:

  1. To operate and maintain one central research station and such sub-stations as the Board may prescribe and, for that purpose, all research stations and centers, facilities and equipment operated by any governmental agency or instrumentality in the researches on genetical, agronomical and disease control relating to coconut culture are all hereby transferred to the Authority;
  2. In coordination and cooperation with the hybrid coconut seed farm herein authorized to be established, to coconut genetical and agricultural researches and investigations for the improvement of the coconut palm productivity but in no case shall it engage in the production of seednuts;
  3. To train people in the proper methods of planting and caring of the hybrid coconut palm tree;
  4. To conduct scientific researches and investigations in the control and elimination of "kadang-kadang" and other diseases of coconut; and
  5. To compile scientific information and disseminate results of agronomical researches and investigations on coconut productivity.

"All officers and employees of the Authority shall be selected and appointed by the Board on the basis solely of merit and fitness and are not subject to the provisions of the Civil Service Law and Rules as well as the regulations of the Wage and Position Classification Office."

SEC. 3. Upon effectivity of this Decree, the Board of the Authority as presently constituted shall cease to exist.

SEC. 4. This Decree shall take effect immediately.

Done in the City of Manila, this 26th day of December in the year of Our Lord, nineteen hundred and seventy-four.

President of the Philippines


By the President:  


  Executive Secretary