9/22/2018
Philippines: NCIP Administrative Order No. 03, Series of 2012, The Revised Guidelines on Free and Prior Informed Consent (FPIC) …
Section 62. Use of Royalty. The royalties must be used for
programs and projects that will redound to the well-being
and benefit of the ICCs/IPs entitled to it. It should have
allocations for: Emergency concerns; Investments which
may be short, medium or long term; Livelihood and social
development projects which must be allocated not less
than 30% of each and every release; Education and
training of members, basic or professional; Capitalization
for cooperative development; Credit facility; Salaries or
wages of persons engaged to perform professional
services; Mutual assistance, and the like. It must never be
used as payment for damages caused by the
proponent/company’s activities to the person and
properties of an individual member, as this is a distinct
obligation of the company and not part of royalties
Section 63. Transparency Mechanism. The IPO shall
prepare periodic financial reports, and annual financial
statements duly audited, and furnish copies of the same to
the NCIP. The same must also be reported to the general
membership during the annual assembly that must be
convened to tackle financial and other community or IPO
concerns.
Section 64. Monitoring and Visitorial Powers. In the
exercise of its mandate to protect the well-being and
promote the rights of ICCs/IPs, the NCIP may direct
financial and management audits of IPOs managing
royalties and other benefits or exercise its visitorial powers
as provided for by law.
22
PART IX
PROHIBITED ACTS AND REMEDIES
http://www.wipo.int/wipolex/en/text.jsp?file_id=414691
30/37