Republic of the Philippines HOUSE OF REPRESENTATIVES Quezon City FIFTEENTH CONGRESS First Regular Session House Resolution No.

762 _____________________________________________________________________ Introduced by Rep. TEDDY A. CASIO _____________________________________________________________________ RESOLUTION DIRECTING THE COMMITTEE ON GOVERNMENT ENTERPRISES AND PRIVATIZATION TO CONDUCT AN INVESTIGATION, IN AID OF LEGISLATION, INTO THE STATUS OF THE ASIAN PRODUCTIVITY ORGANIZATION (APO) AS A GOVERNMENT PRINTING AGENCY ATTACHED TO THE PRESIDENTIAL COMMUNICATIONS COORDINATION OFFICE WHEREAS, on June 24, 1971, a Memorandum of Agreement (MOA) between the National Economic Development Authority (NEDA) and Asian Productivity Organization (APO) of Japan was signed creating the APO Production Unit as a selfsustaining corporation tasked to provide printing services for the government. The MOA further stipulated that APO Production Unit is exempted from import taxes on its supplies, materials and equipment for its operations; WHEREAS, APO Production Unit was registered as a non-stock, non-profit corporation in Security and Exchange Commission (SEC) in 1972 thus giving it the status of a private corporation. Nonetheless, the officials and board members are appointed by virtue of recommendation letters from the government and it still has import exemption privileges as a government printer; WHEREAS, then Justice Secretary Sedfrey Ordonez issued Opinion No. 101 on October 1, 1987, stating that APO production unit is a government-owned corporation attached to NEDA. APO Production Unit is presently under the Presidential Communications Coordination Office (PCCO) along with the National Printing Office (NPO); WHEREAS, based on a May 2010 report of the Philippine Center of Investigative Journalism (PCIJ), APO Production Unit officials were cited saying that the company is private. This issue was put to the fore in light of APO Production Units printing of

campaign materials for one of its board members, the son and the brother of two other company officers. The report also quotes APO Production Unit Board of Trustees member Roberto Brillante as saying: Its a private corporation registered under the SEC, originally under the NEDA.; WHEREAS, beginning 2010, the APO Production Unit has been included in the Appropriations Law as one of three recognized government printers along with the BSP and the NPO (Section 29 on Printing and Publication Expenditures for 2010, and Sec. 24 for 2011 respectively). Both the 2010 and 2011 national budgets read: Departments, bureaus, offices or agencies are hereby given the option to engage the services of private printers in their printing and publication activities, subject to public bidding in accordance with RA No. 9184, and to pertinent accounting and auditing rules and regulations; PROVIDED, That the printing of accountable forms and sensitive high quality/volume printing requirements shall only be undertaken by recognized government printers, namely: Bangko Sentral ng Pilipinas, National Printing Office and APO Production Unit, Inc. . WHEREAS, the inclusion of APO Production Unit in the national appropriations for 2010 and 2011 belies the statement of Brillante and makes the printing of complementary election paraphernalia for the officer a serious irregularity; WHEREAS, Commission on Audit reports reveal that APO Production Unit has incurred debts running to millions of pesos and blamed this on mismanagement. Given the debt of APO Production Unit, it noteworthy that its high-ranking officers get fat salaries and honorariums. Board members receive a monthly salary of P50,000 to P100,000 and honorarium of P30,000 every time the board meets; WHEREAS, the exorbitant compensation and bonuses APO Production Unit officials and board members give to themselves is an abuse of their position as these bonuses come from the national coffers; WHEREAS, the APO Production Unit appears to perform the same function as the National Printing Office (NPO), which is the governments printing arm tasked with the printing of government-accountable forms, official election ballots, the Official Gazette and other public documents, ensuring that these comply with the quality and security standards required by the government. The NPO also undertakes the printing information materials of the Philippine Information Agency, Office of the Press Secretary and the Office of the President; WHEREAS, the ambiguous nature of the APO Production Unit has put the rank and file employees of the company in a quandary that while their company receives government funds and perform functions for the government, they are not classified as government employees entitled to the compensations and benefits as such;

NOW THEREFORE, BE IT RESOLVED, that the Committee on Government Enterprises and Privatization conduct an investigation, in aid of legislation, into the status of the Asian Productivity Organization (APO) Production Unit as a government printing agency attached to the Presidential Communications Coordination Office. Adopted,

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