BY THE PRESIDENT OF THE PHILIPPINES
EXECUTIVE ORDER NO. 806
CREATING THE TEXTBOOK COUNCIL AND THE INSTRUCTIONAL MATERIALS CORPORATION, DEFINING THEIR POWERS AND FUNCTIONS AND FOR OTHER PURPOSES
WHEREAS, it is the declared policy of the Government to actively pursue a development thrust in its system of education to be responsive to the national development goals by broadening and enhancing its scientific, technological and vocational capability towards an accelerated socio-economic growth;
WHEREAS, in the implementation of this policy of efficiency and growth, the Government has likewise pursued its commitment to equity justice, through countryside development, priority to growth in depressed areas, and programs in aid of the rural and urban poor;
WHEREAS, it is imperative that the Government continue and expand its service to the people through education with quality instructional materials developed, produced and distributed at reasonable costs and price;
WHEREAS, the Government has initiated a textbook program thru World Bank assistance for the production of instructional materials consisting primarily of textbooks for the public schools;
WHEREAS, it is desirable that the textbook program be continued beyond the terminal period of the World Bank assistance, on a self-sustained basis as an imperative towards the improvement of the quality of education;
WHEREAS, to achieve this policy of Government, there is need to restructure the Textbook Board to strengthen its organizational effectiveness to perform its regulatory and policy functions relative to textbooks and supplementary books;
WHEREAS, it is deemed necessary that a chartered central agency be created to carry out an instructional materials development programs to include not only textbooks but other forms of instructional media and technology, primarily to service the needs of public elementary and secondary schools; and
WHEREAS, under Presidential Decree No. 1416, the President is empowered to undertake such organizational and related improvements as may be appropriate in the light of changing circumstances and new developments.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution and the authority vested in me by Presidential Decree No. 1416, do hereby order and ordain:
PART I – CREATION OF THE TEXTBOOK COUNCIL
SECTION 1. Creation of the Textbook Council. — There is hereby created a Textbook Council, hereafter referred to as the “Council”, which shall be placed under the administrative supervision of the Ministry of Education and Culture. The Council shall be primarily responsible for the formulation of policy on and the adoption and selection of textbooks, supplementary and reference books for use in the public elementary and secondary schools as well as the approval of textbooks for private elementary and secondary schools.
SEC. 2. Composition of the Council. — The Council shall be composed of five members as follows: the Minister of Education and Culture as Chairman, the Director of Elementary Education, the Director of Secondary Education and two others to be appointed by the President of the Philippines, upon recommendation of the Minister of Education and Culture, as members.
The appointive members shall serve for a term of four years, except the two first appointed: one shall serve for a term of four and the other for a term of two years. In case of any vacancy in the Council, the same shall be filled by the President for the unexpired term of the member replaced.
No person shall be appointed to the Council unless he is a citizen of the Philippines, not less than thirty-five years of age, with at least a master’s degree or its equivalent in terms of professional experience, status and achievements.
SEC. 3. Functions of the Council. — The functions of the Council shall be:
a. Select and prescribe appropriate textbooks, supplementary and reference books for the various curricula in public elementary and secondary schools;
b. Approve textbooks for use in private elementary and secondary schools;
c. Formulate and adopt policies, guidelines and priorities for the development and production of textbooks, supplementary and reference books for use in public elementary and secondary schools consistent with the curricula, courses of study and relevant policies established by the Ministry of Education and Culture;
d. Adopt criteria and standards for the fair and objective evaluation of textbook manuscripts submitted for review and consideration of the Council; and
e. Adopt its own rules and regulations for operational procedure of the Council.
SEC. 4. Implementation of Policies. — The Instructional Materials Corporation created under Part II of this Executive Order shall serve as the implementing arm of the Council, with respect to its non-regulatory activities concerning the public education sector.
SEC. 5. Prescriptive Life of Textbooks. — Except in such special cases as may be determined by the Council, a textbook selected and approved for public school use shall be used for the period of at least six years from the school year the textbook was first approved.
PART II – CREATION OF THE INSTRUCTIONAL
SEC. 6. Short Title. — This Order shall be known as the “Charter of the Instructional Materials Corporation”.
SEC. 7. Declaration of Policy. — It is the declared policy of the State to pursue a continuing program to promote and maintain the standard levels of quality in our education system. In line with this policy, the establishment of a corporate entity is necessary to implement a financially viable program for the development, production and distribution of textbooks and other instructional materials, both print and non-print, to meet the needs of public elementary and secondary schools.
SEC. 8. Creation, Corporate Name, Domicile and Term. — There is hereby created a body corporate to be known as the “Instructional Materials Corporation”, hereafter referred to as the “Corporation”, which shall be attached to the Ministry of Education and Culture.
The principal office of the Corporation shall be in Metro Manila. The Board of Directors of the Corporation may establish such offices or branches in the Philippines as its business operations may require.
The Corporation shall have a term of fifty years from the enactment of this Order which shall be deemed renewed for an equal period unless sooner dissolved by law.
SEC. 9. Corporate Purposes and Objectives. — The Corporation shall have the following purposes and objectives:
a. To promote the integration and rationalization of the development and production, utilization and distribution of instructional materials, such as textbooks, supplementary and reference books, teaching devices, laboratory and science instruments, and audio-visual equipment, to adequately meet the needs of public elementary and secondary schools;
b. To enhance the maximum utilization of other instructional materials using audio-visual and instructional technology, or programmed self-instructional units;
c. To encourage the development of appropriate textbooks and other instructional materials for the various curricula in public elementary and secondary schools;
d. To provide the Ministry of Education and Culture, at reasonable costs, the Ministry’s requirements for textbooks and other instructional materials.
SEC. 10. Powers and Authorities of the Corporation. —
(a) General Corporate Powers. — The Corporation shall have the following general powers:
(1) Adopt, alter and use a corporate seal which shall be judicially noticed;
(2) Transact the business for which it has been lawfully organized, and exercise such powers and perform such acts as are directly or indirectly necessary to the attainment of its purpose and objectives;
(3) Own, lease, mortgage, encumber or otherwise dispose of real and personal property as the attainment of its purposes and objectives may reasonably permit and the transaction of its lawful business may necessarily require;
(4) Enter into any obligation of contract essential to the proper administration of its corporate affairs, the transaction of its business or the accomplishment of its purposes and objectives;
(5) Sue and be sued in its corporate name before any court or tribunal;
(6) Formulate policies and program necessary for the attainment of its purposes and objectives which are not contrary to law, morals or public interest, and amend or repeal the same where necessary; and
(7) Generally, exercise all the powers of a corporation under the Corporation Code of the Philippines insofar as they are not inconsistent with the provisions of this Charter.
(b) Specific Corporate Powers and Functions. — The Corporation shall have the following specific powers and functions:
(1) Initiate, formulate and adopt a general plan, based on established policies and priorities for the development, production, utilization and distribution of instructional material such as textbooks, supplementary and reference books, teaching devices, laboratory and science instruments and audio-visual equipment, to adequately meet the needs of public elementary and secondary schools;
(2) Formulate policy recommendations and standards governing textbooks and instructional materials for adoption of the Textbook Council;
(3) Prepare long and short range instructional materials production and procurement program indicating the availability, its quality and quantity, the capacity of local production units, the production costs and price, and the allocation requirements of the Ministry of Education and Culture for instructional materials;
(4) Undertake by itself or commission private individuals or organizations the writing of textbooks and other reading materials for the various curricula of public elementary and secondary education;
(5) Publish and print by itself or by contract the prescribed textbooks and other instructional materials;
(6) Sell or otherwise dispose of the textbooks and other instructional materials produced to the Ministry of Education and Culture and other interested government and private entities at reasonable costs;
(7) Engage in warehousing, marketing and distribution operations;
(8) Charge royalties, in accordance with applicable law, on the reprinting of textbooks and other instructional materials produced by the Corporation by other government entities and the private sector;
(9) Invest any funds of the Corporation available for investments; and
(10) Provide the Textbook Council with the necessary technical assistance and support.
SEC. 11. Governing Board of the Corporation. —
(a) Composition of the Board. — The Corporation shall be governed by a Board of Directors, hereafter referred to as the “Board”, which shall be composed of the Minister of Education and Culture as Chairman with the following as members: a representative of the Office of the President as designated by the President, the General Manager of the Corporation, and two others to be appointed by the President.
The appointive members shall serve for a term of four years; Provided, however, That the tenure of the members first appointed by the President shall be as follows: one for four years and the other for two years as fixed in their respective appointments. The members of the Board shall serve and continue to hold office until their successors shall have been appointed and qualified. In case of a vacancy before completion of his term in the Board concerning any of the appointive members, a successor shall be appointed by the President for the unexpired term.
No term shall be appointed members of the Board unless he is a citizen of the Philippines, at least thirty years of age, of established competence and integrity and with a masteral degree or its equivalent in terms of professional experience.
(b) Powers and Functions of the Board. — The Board shall have the following powers and functions:
(1) Formulate policies necessary for the attainment of the purposes and objectives for which the Corporation has been organized;
(2) Adopt by-laws not inconsistent with existing laws; promulgate rules and regulations governing the manner in which the general business of the Corporation is to be exercising and amend, repeal or alter such by-laws, rules and regulations;
(3) Recommend for appointment by the President the General Manager, and appoint the Assistant General Manager of the Corporation;
(4) Determine the organizational structure of the Corporation and create such positions as may be necessary for the economical, effective and efficient discharge of its functions and responsibilities;
(5) Pass upon and approve the annual and supplemental budgets, submitted to it by the General Manager;
(6) Pass upon and approved management contracts and proposals for the utilization and disposition of profits;
(7) Adopt rules and procedures and fix the time and place for holding meetings, provided that one regular meeting shall be held monthly; and
(8) Exercise such other powers and perform such other duties as may be required by law.
SEC. 12. Management of the Corporation. —
(a) Structure. — The Corporation shall have a General Manager who shall be assisted an Assistant General Manager. The General Manager shall be the chief executive officer of the Corporation.
(b) Qualifications and Tenure. — No person shall be appointed General Manager or Assistant General Manager of the Corporation unless he is a citizen of the Philippines, at least thirty years of age, and of established competence and integrity. The General Manager and Assistant General Manager shall hold office unless reassigned or terminated in accordance with applicable law.
(c) Powers and Functions of the General Manager. — The General Manager shall have following powers and functions;
(1) Execute, administer and implement the policies and measures approved by the Board;
(2) Direct and manage the affairs and business of the Corporation;
(3) Submit within thirty days after the close of the calendar year an annual report to the Board and such other reports as may be required;
(4) Submit an annual budget and such supplemental budgets as may be necessary to the board for its consideration and approval;
(5) Represent the Corporation in all dealings with other offices, agencies and instrumentalities of government and with all persons and other entities, public or private, domestic or foreign;
(6) Appoint, subject to the confirmation of the Board, and discipline for cause in accordance with civil service laws, rules and regulations, the Corporation’s officers and personnel below the level of the Assistant General Manager;
(7) Delegate authority, as may be necessary, to subordinate officers and personnel of the Corporation provided such delegation is in writing and duly approved by the Board; and
(8) Perform such other duties as may be assigned to him by the Board.
(d) Powers and Functions of the Assistant General Manager. — The Assistant General Manager shall have the following powers and functions:
(1) Assist the General Manager in the discharge of his powers and performance of his functions;
(2) Act as General Manager during the General Manager’s absence, sickness or other temporary disability to act as such;
(3) Discharge such other powers and perform such functions as may be required by the General Manager or the Board.
SEC. 13. Capitalization and Funding Sources. — The Corporation shall have an authorized capital of Two Hundred Million Pesos which shall be fully subscribed by the Republic of the Philippines and shall be paid out as follows:
(a) The sum of Twenty Million Pesos which is hereby appropriated out of any fund in the National Treasury not otherwise appropriated shall be released immediately upon the approval of this Executive Order.
(b) The sum of Twenty Million Pesos for each calendar year thereafter for a period of nine years from the same source mentioned in paragraph (a) thereof which is hereby appropriated for such subsequent years beginning with calendar year nineteen hundred and eighty-two.
For the initial operating expenses of the Corporation, the sum of One Million Pesos is hereby appropriated out of any fund in the National Treasury not otherwise appropriated. For the succeeding nine calendar years, the Board of Directors may appropriate out of the paid-in capital of the Corporation a sum not exceeding One Million Pesos each calendar year for operating expenses. A standing annual appropriation is hereby made out of any fund in the National Treasury not otherwise appropriated of such sums as may be necessary to reimburse the Corporation of the total amount actually expended out of the said One Million Pesos for overhead expenses at the end of the calendar year, which reimbursement shall accrue to the paid-in capital of the Corporation. The unexpended balance of the appropriation for overhead expenses at the end of each calendar year shall automatically revert to the said paid-in capital.
SEC. 14. Loans. — The Corporation is hereby authorized to contract loans in the following manager:
(a) Domestic Loans. — Whenever the Board deems it necessary for the Corporation to incur indebtedness by contracting loans with domestic financial institutions or to issue bonds to carry out purposes for which the Corporation has been organized, it shall, by resolution, so declare and state the purpose for which the proposed debt is to be incurred and such terms and conditions as it shall deem appropriate for the accomplishment of the said purpose; Provided, That in the case of bond issues, the total amount outstanding shall not exceed Three Hundred Million Pesos at any one time, and the same shall be subject to the approval of the President of the Philippines, upon recommendation of the Minister of Finance.
A sinking fund for domestic bond issues shall be established by the Corporation in such manner that the total annual contribution thereof, accrued at such rate of interest as may be determined by the Minister of Finance, shall be sufficient to redeem at maturity the bonds issued under this Section.
(b) Foreign Loans. — The Corporation is hereby authorized to contract loans, credits or indebtedness in any convertible foreign currency or capital goods, from foreign governments or any international financial institutions or fund source or to issue bonds, the total outstanding amount of which, exclusive of interests, shall not exceed Two Hundred Million Dollars or the equivalent thereof in other currencies, on such terms and conditions as it shall deem appropriate for the accomplishment of its purposes and to enter into and execute agreements and other documents specifying such terms and conditions.
The President of the Philippines, by himself, or through his duly authorized representative, is hereby authorized to negotiate and contract with foreign governments or any international financial institutions or fund sources, in the name and on behalf of the Corporation, for the accomplishment of its purposes.
Any foreign loan, credit, indebtedness contracted by the Corporation from bilateral or multinational financial institutions and the payment of the principal, interest and other charges thereon, as well as the importation of machinery, equipment, materials, supplies, and services paid from the proceeds of any such loans, credit or indebtedness shall be exempted from all direct and indirect taxes, customs duties, fees, imports, other charges and restrictions, including import restrictions, previously and presently imposed by the Republic of the Philippines, or any of its agencies and political sub-divisions.
(c) Government Guarantee. — The President of the Philippines, by himself or through his duly authorized representative, is authorized to guarantee, absolutely and unconditionally as primary obligor and not as surety merely, in the name and on behalf of the Republic of the Philippines, the payment of both the principal and the interest on loans, credits, bonds, and other evidences of indebtedness, whether domestic or foreign, as may be contracted by the Corporation, up to such amounts herein authorized: Provided, that such guarantee shall be upon the recommendation of the Minister of Finance who may determine the terms and conditions of such indebtedness; Provided, further, that any sums so paid shall be refunded by the Corporation; and Provided, finally, that the Corporation, in order to assure such refunds, shall establish reserves or sinking funds and comply with such other restrictions or conditions as the Minister of Finance may prescribe and establish for that purpose. In the case of guaranteed foreign loans, any such amount so guaranteed may be over and above the amount which the President of the Philippines is authorized to guarantee under Republic Act No. 4860, as amended.
SEC. 15. Auditor. — The Commission on Audit shall appoint in accordance with Civil Service Law, a representative who shall be the Auditor of the Corporation and such personnel as may be necessary to assist said representative in the performance of his duty.
SEC. 16. Appointment, Control and Discipline of Personnel. — The Board shall confirm the appointments by the General Manager of the officers and employees of the Corporation; and, upon the recommendation of the General Manager, fix their compensation, allowances and benefits, their working hours and such other conditions of employment as it may deem proper; grant them leaves of absence under such regulations as it may promulgate; discipline and/or remove them for cause; and establish and maintain a recruitment and merit system for the Corporation, subject to applicable civil service and compensation laws, rules and regulations.
PART III – TRANSITORY AND OTHER PROVISION
SEC. 17. Abolished Agencies. — The Textbook Board is hereby abolished and its functions relative to the selection and adoption of textbooks for public schools at the elementary and secondary levels and approval of textbooks for private schools in the elementary and secondary levels are transferred to the Textbooks Council together with applicable appropriations, records and equipment. Its functions relative to the development, production and distribution of textbooks are transferred to the Corporation together with applicable appropriations, records, equipment and such personnel as may be necessary.
The Textbook Production Division of the Information and Publication Service of the Ministry of Education and Culture is likewise abolished. Its functions together with applicable appropriations, records and equipment and such personnel as may be necessary are transferred to the Corporation.
The functions of the Educational Development Project Implementing Task Force (EDPITAF) on textbooks and other instructional materials are transferred to the Corporation together with applicable appropriations, records, equipment and such personnel as may be necessary.
The Standing Committee on the Procurement of School Books created under Letter of Instructions No. 347 is hereby abolished and its records and equipment transferred to the Corporation.
SEC. 18. Separability Clause. — Should any provisions of this Charter be held unconstitutional, no other provision hereof shall be affected thereby.
SEC. 19. Repealing Clause. — All laws, decrees, executive orders, and rules and regulations inconsistent herewith are hereby repealed, amended or modified accordingly.
SEC. 20. Effectivity. — This Order shall take effect immediately.
DONE in the City of Manila, this 27th day of May in the year of Our Lord, Nineteen Hundred and Eighty-two.
(Sgd.) FERDINAND E. MARCOS
President of the Philippines
By the President:
(Sgd.) JUAN C. TUVERA
Presidential Executive Assistant
Source: Malacañang Records Office
Office of the President of the Philippines. (1982). [Executive Order Nos. : 781-857]. Manila : Malacañang Records Office.