Guide to the Magna Carta for Micro Small and Medium Enterprises

“d) it must not be a branch, subsidiary or division of a largescale enterprise.“However, this requirement shall not preclude MSMEs fromaccepting subcontracts and entering into franchise partnership withlarge enterprises or from joining in cooperative activities with otherMSMEs.“Programs of the Small Business Corporation (SBCorporation) as provided in subsequent provisions of this Act shall beexclusively delivered and directed to bonafide MSMEs.“Any MSME, its directors, officers or agents, found to havecommitted fraud or misrepresentation for the purpose of availing thebenefits under this Act shall be immediately disqualified as abeneficiary, without prejudice to any administrative, criminal or civilliability under existing laws.“Eligible MSMEs shall be entitled to a share of at least tenpercent (10%) of total procurement value of goods and services suppliedto the Government, its bureaus, offices and agencies annually.“The Department of Budget and Management shall monitorthe compliance of government agencies on the required procurementfor MSMEs and submit its report to the MSMED Council on asemestral basis and to the Congress of the Philippines, through itsappropriate committees on a yearly basis.”SEC. 5. Section 5 of the same Act, as amended, is hereby furtheramended to read as follows:“SEC. 5. Guiding Principles. — To set the pace for MSMEdevelopment, the State shall be guided by the following principles:“x x x.”“c) Coordination of government efforts. Government effortsshall be coordinated to achieve coherence in objectives. Allappropriate offices, particularly those under the Departmentsof Trade and Industry, Finance, Budget andManagement, Agriculture, Agrarian Reform, Environmentand Natural Resources, Labor and Employment, Transportationand Communications, Public Works and Highways,Science and Technology, Interior and Local Government andTourism as well as the National Economic and DevelopmentAuthority, Philippine Information Agency and the Bangko76