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The Lawphil Project - Arellano Law Foundation

PRESIDENTIAL DECREE No. 1!" #anuar$ 1%& 1'1

MALACA ANG�

( a n i l a

PRESIDENTIAL DECREE No. 1832

CREATING THE NATIONAL KIDNEY FOUNDATION OF THE PHILIPPINES

)*EREAS& the Con+titution ,andate+ that the State+ +hall e+tali+h& ,aintain anden+ure adeuate +ocial +er/ice+ in the 0ield o0 health& a,on other+& to uarantee the

well-ein o0 the Filipino people2

)*EREAS& 3idne$ and allied di+ea+e+ ha/e eco,e pre/alent& a00lictin an

increa+inl$ reater nu,er o0 people throuhout the countr$2

)*EREAS& the 4o/ern,ent reconi5e+ the need to pro/ide +peciali5ed ,edical

+er/ice+ 0or people +u00erin 0ro, 3idne$ and allied di+ea+e+2

)*EREAS& 4o/ern,ent initiati/e in ,edical and +cienti0ic re+earch and +tud$ on

3idne$ and allied di+ea+e+& +hall po+iti/el$ contriute to the pre/ention and treat,ent o0 3idne$ and allied di+ea+e+& there$ upli0tin the ph$+ical and ,ental 0itne++ o0 the

 people2

)*EREAS& there e6i+t+ a conco,itant need to educate and train ,edical +peciali+t+

and other ,edical and technical per+onnel in the 0ield o0 3idne$ and allied di+ea+e+2

)*EREAS& the pro,otion o0 the eneral health o0 the Filipino people +hall ulti,atel$enhance +ocio-econo,ic condition+ in the countr$2

)*EREAS& the nole underta3in o0 the 4o/ern,ent in the +tud$& pre/ention and

treat,ent o0 3idne$ and allied di+ea+e+& can e+t e achie/ed $ creatin& +upportin&,aintainin and operatin an interated ,edical in+titution which +hall +peciali5e in

3idne$ and allied di+ea+e+2

 N7)& T*EREF7RE& I FERDINAND E. (ARC7S& Pre+ident o0 the Philippine+& $

/irtue o0 the power+ /e+ted in ,e $ the Con+titution& do here$ decree8

Section 1. Creation of the National Kidney Foundation of the Philippines. There i+here$ created a od$ corporate and politic to e 3nown a+ the National 9idne$

Foundation o0 the Philippine+& hereina0ter re0erred to a+ the Foundation& which +hall

i,ple,ent the intent and +pirit o0 thi+ Decree. The Foundation +hall ha/e it+ principalo00ice in (etro (anila& and ,a$ ha/e +uch ranch o00ice+& ho+pital+& clinic+ or

+u+idiarie+ in other area+ in the Philippine+ a+ it ,a$ dee, proper and nece++ar$. The

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F7:NDATI7N +hall e under the 700ice o0 the Pre+ident o0 the Philippine+.

Section 2.  Purpose and Objectives. The F7:NDATI7N +hall ha/e the 0ollowin

 purpo+e+ and ojecti/e+8

;a< To con+truct& e+tali+h& euip& ,aintain& ad,ini+ter and operate +uchinterated ,edical in+titution or in+titution+ a+ +hall +peciali5e in the pre/ention&

diano+i+& treat,ent& care& rehailitation and=or relie0 o0 3idne$ and allied

di+ea+e+& in line with the concern o0 the 4o/ern,ent to pro/ide ,aterial and0inancial +upport in the e+tali+h,ent& ,aintenance and operation o0 a 3idne$

center pri,aril$ 0or the ene0it o0 the Filipino people& and in pur+uance o0 the

 polic$ o0 the State to +ecure the well-ein o0 the people $ pro/idin the, with

+peciali5ed health and ,edical +er/ice+ and $ ,ini,i5in the incidence o03idne$ and allied di+ea+e+ in the countr$2

;< To pro,ote ,edical and +cienti0ic re+earch relati/e to the pre/ention andtreat,ent o0 3idne$ and allied di+ea+e+& and to encourae plannin& in/ention

and de/elop,ent o0 arti0icial ,ean+ o0 3idne$ +upport and tran+plantation2

;c< To conduct 0act-0indin in/e+tiation+ on 3idne$ di+ea+e+& and related 0ield

throuhout the countr$ or el+ewhere& and to report& puli+h and di++e,inate

in0or,ation on 3idne$ and allied di+ea+e+2

;d< To 0inance& +pon+or& hold or participate in conre++e+& con/ention+&con0erence+& +e,inar+& wor3-+hop+ and trainin prora,+ on 3idne$ di+ea+e+

and=or related 0ield in the Philippine+ or aroad2

;e< To encourae and a++i+t in the education and trainin o0 ph$+ician+& nur+e+&

health o00icer+& +ocial wor3er+ and ,edical and technical per+onnel in the practical and +cienti0ic i,ple,entation o0 +er/ice+ to 3idne$ patient+2

;0< To a++i+t uni/er+itie+& ho+pital+ and re+earch in+titution+ in their +tudie+ on

3idne$ and allied di+ea+e+ and other related 0ield+& to encourae and rant

+cholar+hip+ 0or ad/anced trainin and +peciali5ation in renal and related 0ield+&and to +upport educational prora,+ o0 /alue to eneral pulic health2 and

;< To +ti,ulate the 0or,ation o0 other orani5ation+ on the national& pro/incial&

cit$ and=or local le/el+& and to coordinate the /ariou+ e00ort+ and acti/itie+ o0+uch orani5ation 0or the purpo+e o0 achie/in a ,ore e00ecti/e approach to the

co,,on prole, relati/e to the purpo+e+ and ojecti/e+ enu,erated herein.

Section 3.  Powers and Functions. For the attain,ent and=or 0urtherance o0 the ao/e-

enu,erated purpo+e+ and ojecti/e+& the F7:NDATI7N a+ a od$ corporate actinthrouh it+ >oard o0 Tru+tee+& +hall ha/e the 0ollowin power+ and 0unction+ in addition

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to tho+e pro/ided 0or in the other +ection+ o0 thi+ Decree8

;a< To adopt and u+e a corporate +eal2

;< To +ue and e +ued in it+ corporate na,e2

;c< To adopt it+ $-law+& rule+ and reulation+ a+ it ,a$ dee, proper and

nece++ar$ 0or i,ple,entation o0 the purpo+e+ and ojecti/e+ o0 thi+ Decree2

;d< To +ucceed $ it+ corporate na,e& and to acuire and po++e++ propertie+&

riht+ and intere+t+ o0 whate/er 3ind and nature& and ,ortae& plede& alienate&

encu,er or otherwi+e di+po+e o0 the +a,e2

;e< To award& enter into& ,a3e& e6ecute& per0or, and carr$ out do,e+tic or0orein contract+ o0 whate/er 3ind and nature& and 0or thi+ purpo+e the

F7:NDATI7N i+ here$ e6e,pted 0ro, the reuire,ent+ o0 pulic iddin&an$ pro/i+ion o0 law rule& or reulation to the contrar$ notwith+tandin2

;0< To in/e+t in& and purcha+e or otherwi+e acuire& own& hold& u+e& lea+e& rant&,ortae& plede& +ell& a++in& con/e$& tran+0er& e6chane or otherwi+e deal

with& real and=or per+onal propertie+ o0 e/er$ 3ind and nature& includin +hare+

o0 +toc3& ond+& deenture+& note+& +ecuritie+ and other e/idence+ o0indetedne++ or oliation+ o0 other corporation+& whether do,e+tic or 0orein&

and whether o/ern,ent or pri/ate2

;< To act a+ eneral or operatin ,anaer+& repre+entati/e+& or aent+ o0

co,,ercial and=or indu+trial concern+ o0 whate/er 3ind and nature and toenae in the pro,otion& a++i+tance& encourae,ent& de/elop,ent and

e6pan+ion o0 an$ law0ul u+ine++ in the Philippine+ or aroad2

;h< To otain loan+& orrow 0und+ and=or arrane 0inancin or credit a++i+tance

o0 whate/er 3ind and nature 0ro, all +ource+& whether do,e+tic or 0orein andwhether o/ern,ent or pri/ate& and to ,ortae& plede or otherwi+e encu,er

an$ o0 it+ propertie+ and a++et+ 0or the purpo+e o0 +ecurin or uaranteein the

 per0or,ance or 0ul0ill,ent o0 an$ oliation it ,a$ underta3e 0or it+el0 or 0orother entitie+ in which it ,a$ e intere+ted2

;i< To le/$& a++e++ and collect +uch 0ee+& chare+ and a++e++,ent+ a+ ,a$ enece++ar$ or proper to +upport& 0inance and ,aintain it+ operation+2 and

;j< To e6erci+e +uch other power+ and 0unction+ a+ ,a$ e incidental or

nece++ar$ to carr$ out the purpo+e+ and ojecti/e+ o0 thi+ Decree.

Section . The Board of Trustees; Coposition; Ter and Copensation. T*E

F7:NDATI7N +hall e o/erned& and it+ acti/itie+ and propertie+ +hall e directed&

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controlled and ,anaed& $ a >oard o0 Tru+tee+& hereina0ter re0erred to a+ the >oard&

which +hall e co,po+ed o0 a Chair,an and ten ;1?< ,e,er+& all o0 who, +hall e

appointed $ the Pre+ident o0 the Philippine+. The Pre+ident o0 the F7:NDATI7N&who +hall e appointed 0ro, a,on the ,e,er+ o0 the >oard in accordance with

Section @ hereo0& +hall e the e6-o00icio ice-Chair,an o0 the >oard.

E6cept the Pre+ident o0 the F7:NDATI7N& the ,e,er+ o0 the >oard +hall +er/e 0or a

ter, o0 three ;!< $ear+& with a riht to hold-o/er until their re+pecti/e +ucce++or+ +hallha/e een dul$ appointed and uali0ied. The Pre+ident o0 the Philippine+ ,a$& howe/er&

re,o/e an$ ,e,er o0 the >oard 0or cau+e. )hene/er a /acanc$ +hall occur in the

>oard& the per+on appointed to 0ill the /acanc$ +hall hold o00ice 0or the une6pired ter,o0 the ,e,er replaced.

E6cept the Pre+ident o0 the F7:NDATI7N& each ,e,er o0 the >oard +hall recei/e a

 per die, o0 at lea+t FIE *:NDRED PES7S ;PB??.??< per ,eetin actuall$ attended8

Pro/ided& That no ,e,er +hall recei/e a per die, o0 ,ore than T)7 T*7:SANDFIE *:NDRED PES7S ;P"&B??.??< per ,onth.

Section !.  Power and Functions of the Board. The >oard +hall ha/e the 0ollowin

 power+ and 0unction+8

;a< To 0or,ulate policie+& uideline+ and prora,+ to e00ecti/el$ i,ple,ent andcarr$ out the purpo+e+ and ojecti/e+ o0 thi+ Decree2

;< To pre+crie& re/iew and re/i+e the a,ount o0 the 0ee+& chare+& and

a++e++,ent+ le/ied and collected 0or the +upport and ,aintenance o0 the

operation+ o0 the F7:NDATI7N2

;c< To control the ,anae,ent& operation and ad,ini+tration o0 theF7:NDATI7N2

;d< To pro,ulate +uch rule+ and reulation+ a+ ,a$ e nece++ar$ or proper 0or

the e00ecti/e e6erci+e o0 power and 0unction+ a+ well a+ the di+chare o0 the

dutie+& re+pon+iilitie+ o0 the F7:NDATI7N& it+ o00icer+ and e,plo$ee+2

;e< To authori5e +uch e6penditure+ o0 the F7:NDATI7N a+ ,a$ e nece++ar$

or proper 0or the e00ecti/e ,anae,ent& operation and ad,ini+tration o0 the

F7:NDATI7N2

;0< :pon the reco,,endation o0 the Pre+ident o0 the F7:NDATI7N& todeter,ine and orani5e the F7:NDATI7N+ orani5ational and ad,ini+trati/e

+tructure or pattern& and to e+tali+h and 0i6& re/iew& re/i+e and adju+t the

appropriate co,pen+ation +che,e o0 the o00icer+ and e,plo$ee+ o0 theF7:NDATI7N& with rea+onale allowance+& onu+e+ and other incenti/e+ a+

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,a$ e reco,,ended $ the Pre+ident o0 the F7:NDATI7N2

;< To adopt the annual and +upple,ental udet o0 receipt+ and e6penditure+ o0 

the F7:NDATI7N2

;h< To appoint& re,o/e& +u+pend or otherwi+e di+cipline the E6ecuti/e ice-Pre+ident and other o00icer+ o0 the F7:NDATI7N occup$in e6ecuti/e and

+enior ,anae,ent po+ition+2

;i< To e6erci+e all the eneral power+ nece++ar$ or incidental to the attain,ent o0 

the purpo+e+ and ojecti/e+ o0 thi+ Decree2 and

;j< To do an$ and all act+ a+ ,a$ e nece++ar$ or proper 0or the attain,ent o0 the

 power+ and 0unction+ o0 the F7:NDATI7N.

Section ". Officers of the FO!N"#T$ON. The >oard +hall deter,ine the o00icer+ o0 theF7:NDATI7N who& e6cept a+ pro/ided in thi+ Decree& +hall e appointed $ thePre+ident o0 the F7:NDATI7N +uject to con0ir,ation $ the >oard. The

F7:NDATI7N ,a$ ha/e an E6ecuti/e ice-Pre+ident and +uch ice-Pre+ident+ and

A++i+tant ice-Pre+ident+ a+ ,a$ e reuired 0or the e00ecti/e operation o0 the

F7:NDATI7N.

Section #. The President% &is Ter and 'euneration. The Pre+ident o0 the

F7:NDATI7N +hall e appointed $& and +hall +er/e at the plea+ure o0& the Pre+ident

o0 the Philippine+. The +alar$ o0 the Pre+ident o0 the F7:NDATI7N +hall e 0i6ed $the >oard& +uject to the appro/al o0 the Pre+ident o0 the Philippine+.

Section 8.  Powers and "uties of the President. The Pre+ident o0 the F7:NDATI7N

+hall e the Chie0 E6ecuti/e 700icer o0 the F7:NDATI7N. *e +hall e6erci+e the

0ollowin power+ and dutie+8

;a< To e6ecute the policie+& uideline+ and prora,+ appro/ed $ the >oard& andto e re+pon+ile 0or the e00icient di+chare o0 ,anae,ent and operational

0unction+2

;< To +u,it 0or the con+ideration and appro/al o0 the >oard propo+ed

,ea+ure+& policie+& uideline+ and prora,+ a+ he ,a$ dee, nece++ar$ or

 proper 0or the e00ecti/e i,ple,entation o0 the purpo+e+ and ojecti/e+ o0 thi+Decree2

;c< To direct and +uper/i+e the ,anae,ent& operation and ad,ini+tration o0 the

F7:NDATI7N& and& 0or thi+ purpo+e& he ,a$ deleate an$ or +o,e o0 hi+ad,ini+trati/e re+pon+iilitie+ and dutie+ to the other o00icer+ o0 the

F7:NDATI7N2

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;d< To e6ecute& on ehal0 o0 the F7:NDATI7N& all contract+ and aree,ent+

which the F7:NDATI7N ,a$ enter into& and to e6ecute& acco,pli+h and

deli/er an$ and all docu,ent+ relati/e to +uch contract+ and aree,ent+2

;e< To repre+ent the F7:NDATI7N in all dealin with other o00ice+& aencie+and in+tru,entalitie+ o0 the 4o/ern,ent& and all other per+on+ or entitie+&

whether do,e+tic or 0orein and whether o/ern,ent or pri/ate2

;0< To appoint& pro,ote& tran+0er& re,o/e& +u+pend or otherwi+e di+cipline theo00icer+ and e,plo$ee+ o0 the F7:NDATI7N& e6cept tho+e appointed $ the

>oard2

;< To /ote all +toc3+ owned or controlled $ the F7:NDATI7N2 and

;h< To e6erci+e +uch other power+ and per0or, +uch dutie+ a+ ,a$ e /e+ted or

repo+ed upon hi, $ the >oard.

Section $.  #uthority of the President in (er)encies. In ca+e o0 e,erencie+ which

reuire i,,ediate action $ the >oard& and there i+ no +u00icient ti,e to call a ,eetin

thereo0& the Pre+ident o0 the F7:NDATI7N& with the concurrence o0 an$ three ;!<

other ,e,er+ o0 the >oard& ,a$ decide on an$ ,atter or ta3e an$ action within theauthorit$ o0 the >oard it+el0.

Section 1%.  #ssistance fro the *overnent. The F7:NDATI7N ,a$ call upon an$

(ini+tr$& >ureau& 700ice& Aenc$ or in+tru,entalit$ o0 the 4o/ern,ent& includino/ern,ent-owned or controlled corporation+& 0or +uch a++i+tance a+ it ,a$ need in the

 pur+uit o0 the purpo+e+ and ojecti/e+ o0 thi+ Decree.

Section 11. *overnent Contribution. The a,ount o0 Ten (illion Pe+o+

;P1?&???&???.??< i+ here$ appropriated 0ro, the Ca+ino Tru+t Fund which I here$ordered relea+ed to de0ra$ the initial operational e6pen+e+ o0 the F7:NDATI7N.

Therea0ter& the nece++ar$ a,ount to +upport the continued operation and ,aintenance o0 

the F7:NDATI7N +hall e included in the 4eneral Appropriation+ Act.

Section 12.  "onations to the Foundation. The F7:NDATI7N i+ here$ authori5ed to+olicit and recei/e donation+& rant+& contriution+& i0t+ or endow,ent+ 0ro, all

+ource+ whether 0orein or do,e+tic& and whether o/ern,ent or pri/ate& without the

need o0 +ecurin a per,it& appro/al or rei+tration 0ro, an$ o/ern,ent aenc$. Notwith+tandin an$ pro/i+ion o0 law to the contrar$& all donation+& rant+

contriution+& i0t+ or endow,ent+ recei/ed $ the F7:NDATI7N pur+uant+ hereto&

+hall e e6e,pt 0ro, inco,e& i0t and all other 3ind+ o0 ta6e+& and +hall 0urther e

deductile in 0ull 0or purpo+e+ o0 co,putin the ,a6i,u, a,ount deductile 0or ta6 purpo+e+ under the National Internal Re/enue Code& a+ a,ended.

Section 13.  (+eption fro Fees% "uties and Ta+es. The F7:NDATI7N i+ here$

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declared e6e,pt 0ro, all inco,e and all other internal re/enue ta6e+& tari00 and cu+to,+

dutie+ and all other 3ind+ o0 ta6e+& 0ee+& chare+ and a++e++,ent+ le/ied $ the

4o/ern,ent and it+ political +udi/i+ion+& aencie+ and in+tru,entalitie+.

The Pre+ident o0 the Philippine+& upon the reco,,endation o0 the (ini+ter o0 Finance&,a$ partiall$ or entirel$ li0t the e6e,ption+ herein ranted& i0 he +hall 0ind that the

F7:NDATI7N i+ alread$ +el0-+u+tainin and 0inanciall$ capale o0 pa$in +uch ta6e+&

cu+to,+ dutie+& 0ee+& chare+ and other a++e++,ent+& a0ter pro/idin 0or the det +er/icereuire,ent+ and the projected capital and operatin e6penditure+ o0 the

F7:NDATI7N.

Section 1.  #ppointent% Prootion; Ters and Conditions of (ployent. The

F7:NDATI7N and it+ o00icer+ and e,plo$ee+ +hall not e co/ered $ the Ci/ilSer/ice Law& rule+ and reulation+& and $ the 700ice o0 the Co,pen+ation and Po+ition

Cla++i0ication. The o00icer+ and e,plo$ee+ o0 the F7:NDATI7N +hall e appointed or

 pro,oted pur+uant to +uch ,anae,ent policie+ and=or appropriate ,erit and 0itne+++$+te, a+ ,a$ e adopted $ the >oard.

Section 1!. Corporate #uditor. The F7:NDATI7N +hall not e under the audit

 juri+diction o0 the Co,,i++ion on Audit. The F7:NDATI7N +hall ha/e it+ own

Auditor who +hall not e +uject to the +uper/i+ion and control o0 the Co,,i++ion onAudit& and who +hall e appointed $ the >oard.

Section 1".  ,e)al Counsel. The 700ice o0 the 4o/ern,ent Corporate Coun+el +hall e

the Leal Coun+el o0 the F7:NDATI7N. For the +er/ice+ o0 the +ta00 o0 the 700ice o0

the 4o/ern,ent Corporate Coun+el& the F7:NDATI7N +hall appropriate and pa$ +uch

a,ount a+ ,a$ e a++e++ed $ the 4o/ern,ent Corporate Coun+el to de0ra$ thetran+portation and repre+entation e6pen+e+ o0 the Law$er+ in the 700ice o0 the

4o/ern,ent Corporate Coun+el who ,a$ e a++ined to handle the leal ,atter+ o0 theF7:NDATI7N.

Section 1#.  #nnual report. The F7:NDATI7N +hall render to the Pre+ident o0 the

Philippine+ an annual report on it+ operation+ and acco,pli+h,ent+.

Section 18.  #pplicability of the Corporation ,aw. The pro/i+ion+ o0 the eneralcorporation law& in+o0ar a+ the$ are not incon+i+tent with the pro/i+ion+ o0 thi+ Decree

o0 with the purpo+e+ and ojecti/e+ 0or which the F7:NDATI7N i+ 0or,ed& +hall

appl$ to the F7:NDATI7N.

Section 1$.  (ffect of "issolution. I0 0or an$ rea+on& the F7:NDATI7N i+ di++ol/ed& it+ propertie+ and a++et+ +hall re/ert to the National 4o/ern,ent 0or di+po+ition in

accordance with law.

Section 2%. -eparability Clause. The pro/i+ion+ o0 thi+ Decree are here$ declared to

 e +eparale& and i0 an$ pro/i+ion or +ection o0 thi+ Decree or application thereo0 to an$

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 per+on or circu,+tance +hould 0or an$ rea+on e held in/alid or uncon+titutional& +uch

in/alidit$ or uncon+titutionalit$ +hall not a00ect the other pro/i+ion+ or +ection+ o0 thi+

Decree.

Section 21.  (ffectivity. Thi+ Decree +hall ta3e e00ect i,,ediatel$.

Done in the Cit$ o0 (anila& thi+ 1%th da$ o0 #anuar$& in the $ear o0 7ur Lord nineteen

hundred and eiht$-one.

The Lawphil Project - Arellano Law Foundation