SOP Exhibits
Title
:
Exhibit 1 - Memorandum of Agreement
SOP Number :
GM-PR32
MEMORANDUM OF AGREEMENT
KNOW ALL MEN BY THESE PRESENTS:
This Memorandum of Agreement is made and entered into by and between:
The NATIONAL FOOD AUTHORITY, an Agency of the government created pursuant to Presidential Decree No. 4, as amended, with principal office at Philsugin Building, North Avenue, Diliman, Quezon City, represented herein by its Provincial Manager of NFA _____________________, with office address at __________________________ ____________________________________________________, herein referred to as NFA;
and
The Honorable ____________________________________________ duly elected ____
Senator / Congressman
___ of _________________________ with principal office at _____________________________________________________________________, Philippines, herein referred to as BUYER.
OR
The Local Government of ___________________________________ duly constituted under existing laws of the Philippines and with principal office at ____________________________________________________________________, Philippines, herein referred to as BUYER.
WITNESSETH
:
WHEREAS, marketing is a major problem of our palay farmers forcing them to sell to middlemen who usually take advantage of them by offering a very low price, thus, decreasing their income;
WHEREAS, the Philippine government, through the NFA, recognizes the need to assist these farmers in marketing their produce by linking them with prospective buyers who can offer them a higher price;
WHEREAS, the NFA, cognizant of the above, is adopting the Premium Incentive and Rice Assistance (PRICE) Programwherein the participatingLegislators / Local Government Units (LGUs) shall provide a premium price of at least Php1.00/kg of palay or an amount determined by the Legislator /LGU using as reference the prevailing market price, to be added to the existing NFA support price for the purchase of palay from beneficiary Farmers Organizations / Farmers Cooperative (FOs/FCs) in their area of jurisdiction. In exchange, the FOs/FCs and the Legislators /LGUs shall be entitled to buyfrom NFA the following year up to 23% and 2%, respectively, of the rice form equivalent of the total volume of palay stocks sold by the FOs/FCs under the PRICE Program, based on equivalent net weight and at 63% milling recovery if WMR or 65% if RMR,depending on the availability of NFA stocks.
WHEREAS, the PRICE Program will increase farmers’ income because of the additional premium per kg that will be added to their palay, assure the Legislator’s / LGU’sconstituents and FO’s/FC’s farmer-members of the direct availability of NFA rice at affordable prices for their requirement / consumptionand at the same time support NFA’s efforts at buffer stock building.
WHEREAS, the NFA and the BUYER, in accordance with their respective roles in nation building, have agreed to enter into an agreement that will ultimately redound to the interest of the country;
NOW THEREFORE, for and in consideration of the foregoing premises and of the mutual covenants and stipulations hereinafter setforth, the parties hereto have agreed as they hereby agree as follows:
OBLIGATIONS OF THE BUYER:
1. Upon signing this Memorandum of Agreement, submit to the concerned NFA Provincial Manager a Letter of Intent (LOI) indicating therein the amount of premium that BUYER intends to add to the NFA support price per kg of palay for the purchase of palayfrom Farmers Organizations / Farmers Cooperatives and the total amount of funds that BUYER intends to deposit in trust with NFA;
2. Within five (5) working days after signing the MOA and submission of the LOI, remit the funds intended to pay the premium to the Cashier of the concerned NFA Provincial Office. The budget for this purpose shall be supported by Sangguniang Bayan / SangguniangPanlalawigan/ SangguniangPanlungsodon funds utilization upon entering into a MOA;
3. If the BUYER wants to change the amount of premium intended to be added to the NFA support price per kg of palay or wants to add funds intended for the payment of the premium, submit another LOI to the concerned NFA Provincial Manager. The LOI shall likewise be supported by the Sangguniang Bayan / SangguniangPanlalawigan / SangguniangPanlungsod on funds utilization;
4. Authorize a representative for all PRICE Program transactions with the NFA and submit specimen signatures and two (2) copies of ID pictures of the authorized representative;
5. Submit to NFA on or before April 30 of the following year a letter signifying the BUYER’s intention to purchase their rice allocation based on the PRICE Allocation Notice that will be issued to them by NFA on or before the first week of February. The letter shall indicate the quantity / quantities to be purchasedand schedule of withdrawals by month;
6. Inform the NFA provincial office in writing of intention to pay the rice allocation at least five (5) days prior to every scheduled date of withdrawal.
7. Pay the amount corresponding to the rice allocation to be withdrawn (computed based on cash price for Government agencies per Selling Price Bulletin ex-warehouse at the time of withdrawal), in cash or Manager’s Check, to the Cashier of the NFA Provincial Office where the stocks shall be withdrawn.
8. Withdraw the paid rice allocation within the allowable withdrawal period allotted by NFA per SOP on the Premium Incentive and Rice Assistance (PRICE) Program. In case of failure to withdraw the paid rice allocation / unwithdrawn balancethereof within the allowable withdrawal period, the unwithdrawn balance of the paid rice allocation shall be forfeited and the equivalent amount corresponding to the unwithdrawnbalance shall be refunded.
9. Use the rice allocation for the requirement of the BUYER’S employees and for social services for the benefit of constituents particularly during calamities and lean months when rice prices are high.
OBLIGATIONS OF THE NFA:
1. Hold in trust the funds paid by the BUYER intended for the payment of premium to be added to the NFA support price per kg of palay purchased from beneficiary FOs / FCs under their area of jurisdiction;
2. Procure palay from Farmers Organization / Farmers Cooperative (FO/FC) beneficiaries at the existing NFA support price per kg plus the premium provided by the BUYER;
3. Maintain a schedule/list of palay deliveries of the FO / FC for the year under the PRICE Program and at the end of the year, compute the FO’s / FC’s / Legislator’s / LGU’s Rice Allocation for the following year.
4. Issue aPRICE Allocation Notice to the BUYER on or before the first week of February stating therein the total volume of palay delivered by their beneficiary FOs/ FCs and their corresponding NFA rice allocation (2% of the rice form equivalent of the total volume of palay sold / delivered to NFA during the previous calendar year based on equivalent net weight and at 63% milling recovery if WMR or 65% if RMR).
5. Assist the BUYER in the fulfillment of the requirements of the program (e.g. signing of MOA; submission of LOI; submission of letter signifying intention to purchase the rice allocation; submission of letter 5 days before payment of rice allocation; etc.)
6. Compute the amount to be paid by the BUYER corresponding to its rice purchases based on cash price for Government agencies per Selling Price Bulletin (SPB) ex-warehouse at the time of withdrawal.
7. Ensure the proper implementation of the program.
8. Prepare and conduct the appropriate information campaign for the success of the program.
9. Come up with a project monitoring system to evaluate the socio-economic effects / impact of the program on FOs / FCs vis-à-vis its improvement.
OTHER PROVISIONS:
1. Rice allocations shall be paid and withdrawn only in the province / region where the FO / FC / Legislator / LGU is located.
2. Deferment of rice withdrawal will be allowed when stocks are badly needed for Food Security purpose and during times of calamities.
3. Staggered withdrawal shall be allowed based on NFA stock inventory and position at the time of withdrawal in the province / region.
4. NFA reserves the right to issue the same quality and variety code of rice as those given to retailers.
5. The SOP on the Premium Incentive and Rice Assistance Program including its exhibits shall be made an integral part of this Agreement for compliance of the parties concerned;
6. This Agreement shall take effect upon the execution by the parties and shall remain effective until rescinded in writing upon thirty (30) calendar days prior written notice by either party, subject to obligations of parties that may have been incurred pursuant to this Agreement.
IN WITNESS WHEREOF, the parties have hereunto set their hands this ___________ day of __________________, 20__, at ____________________________, Philippines.
NATIONAL FOOD AUTHORITY OFFICE OF ____________________, BUYER
By: By:
____________________________ ___________________________________
NFA Provincial Manager Name of Senator/Congressman/
Governor/Mayor
SIGNED IN THE PRESENCE OF :
______________________________ ___________________________________
A C K N O W L E D G M E N T
Republic of the Philippines )
_____________________ )
BEFORE ME, Notary Public for and in _______________________________, this _________ day of _______________________, 20___, personally appeared:
Name Identification No. Date & Place Issued
_________________________ ________________ ________________________
_________________________ ________________ ________________________
Known to me to be the same persons who executed the foregoing instrument which is a Memorandum of Agreement and they acknowledged to me that the same is their own free and voluntary act and deed as well as that of the institutions they represent.
The foregoing instrument consists of _______ pages including this page on which this acknowledgment is written and each and every page of which has been signed by the aforesaid parties, their witnesses and sealed with my notarial seal.
IN WITNESS THEREOF, I have hereto set my hand on the date and place above written.
NOTARY PUBLIC
Doc. No. _______
Page No. _______
Book No. _______
Series of ________